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1998-07-29
ORANGE COUNTY SANITATION DISTRICT July 22, 1998 ,he.: 17141982-2411 NOTICE OF MEETING .111,q Md.: _ PO 8.8127 Po ntaa Valley.C BOARD OF DIRECTORS 9272E-8127 ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fguo 927008-7018 WEDNESDAY, JULY 29, 1998 - 6:30 P.M. DISTRICT'S ADMINISTRATIVE OFFICES 10844 Ellis Avenue Member Fountain Valley, California 92708 Agenc ies ernes The Regular Meeting of the Board of Directors of the Orange County Sanitation District will be held at the above location; time and date. Anahaim area Buena Park a LYP Eguntmn valley Fullermn Bmtlan Grove - HxnVngmn Beach B d Secret Irvine La Habra La Palma L,,aaamiwa Tentative) ScheduledU Upcoming Meetings rams Beach Y - p 9 Orange Placentia Santa Ana Seal Beach Stemmn BOARD WORKSHOP YIIaTPark STRATEGIC PLAN UPDATE - Saturday,August 22, 1998 at 9:00 a.m. %nba bade ceaney 0 oranee STEERING COMMITTEE - Wednesday,August 26, 1998 at 6:00 p.m. same.' Wa<rmca Caata Mesa ma"ay City Water els[eleea Irvine Ranch 'To Pmtect Me Publm HealN and Me Enwm eat Mraugh Excellence In Wastewater Systems' JOINT BOARD MEETING DATES Month Joint Board Meeting July July 29, 1998 August August 26, 1998 September September 23, 1998 October October 28, 1998 November November 18, 1998 December December 16, 1998 January January 27, 1999 February February 24, 1999 March March 24, 1999 April April 28, 1999 May May 26, 1999 June June 23, 1999 July July 28, 1999 August August 25, 1999 COUNTY SANITATION DISTRICTS NOS. 1, 2, 3, 5, 6, 7, 11, 13 AND 14 OF ORANGE COUNTY, CALIFORNIA MINUTES JOINT BOARD MEETING JUNE 24, 1998 FtICTS ORO9g2 5e `r9 �o r; z z � CD J a vWv D ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes for Joint Board Meeting 06/24/98 Page 2 of 9 ROLL CALL A regular meeting of the Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, was held on June 24, 1998, at 7:30 p.m., in the Districts'Administrative Offices. Following the Pledge of Allegiance and invocation the roll was called and the Secretary reported a quorum present for Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS DISTRICT X Pat McGuigan, Chair Thomas E. Lutz NO, 1 James M. Ferryman, Chair pro tern X Arthur Perry X Mark A. Murphy Joanne Coontz X Thomas R. Saltarelli Jim Potts X Todd Spitzer William G. Steiner DISTRICT X Norman Z Eckenrode Chair I Constance Underhill NO. 2 X Mark A. Murphy, Chair pro tern I Joanne Coontz X Steve Anderson I John Holmberg Don Bankhead X Jan Flory Bruce A. Broadwater X Mark Le es X John Collins Laurann Cook X Barry Denes Richard A. Freschi X Burnie Dunlap Glenn Parker X John M. Gullixson Gene Wisner X Pat McGuigan Thomas E. Lutz X Todd Spitzer William G. Steiner X I Bob Zama] Tom Dal DISTRICT X Margie L. Rice Chair James V. Evans NO. 3 X Eva Miner-Bradford, Chair pro tem Paul F.Walker X Steve Anderson John Holmberg Don Bankhead X Jan Flory X George Brown Marilyn Bruce Hastings X John Collins Laurann Cook Brian Donahue X Harry M. Dotson X Bumie Dunlap Glenn Parker X Anna L. PlercV Tim Keenan X Mark Le es I Bruce A. Broadwater X Patsy Marshall Jack Mauller X Pat McGuigan Thomas E. Lutz X Todd Spitzer William G. Steiner X Dave Sullivan Tom Harman X Charles E. Sylvia Ron Bates X Bob Zemel Tom Dal DISTRICT Jan ebay, Chair X John E. Noyes N0. 5 X John E. No es Chair ro tern an Deba X William G. Steiner Todd Spitzer Minutes for Joint Board Meeting O6124/98 Q Page 3 of 9 ACTIVE DIRECTORS ALTERNATE DIRECTORS DISTRICT I James M. Fe man, Chair X Arthur Perry NO. 6 X William G. Steiner Chair pro tem Todd Spitzer Jan Deba X I John E. Noyes DISTRICT X Thomas R.Saltarelli Chair Jim Potts NO. 7 X Christina Shea, Chair pro tem Barry Hammond Jan Debay X John E. Noyes James M. Ferryman X Arthur Perry X Pat McGuigan Thomas E. Lutz X Mark A. Murphy Joanne Coontz X William G. Steiner Todd Spitzer DISTRICT X ShirleyDettloff Chair Tom Harman NO. 11 1 X Dave Sullivan Chair pro tern Tom Harman X I Todd Spitzer I William G. Steiner DISTRICT X Burnie Dunlap, Chair Glenn Parker NO. 13 X John M. Gullixson Chair Pro Tem Gene Wisner X Mark A. Murphy Joanne Coontz X William G. Steiner Todd Spitzer X Bob Zemel Tom Dal DISTRICT X Christina Shea Chair Barry Hammond NO. 14 X Thomas R. Saltarelli Chair pro tem Jim Potts X Mark A. Murphy Joanne Coontz X William G. Steiner Todd Spitzer Peer A. Swan X Darryl Miller STAFF MEMBERS PRESENT: Don McIntyre, General Manager, Penny Kyle, Board Secretary; Ed Hodges; Patrick Miles; David Ludwin; Bob Oolen; Mike Petennan; Gary Streed; Michelle Tuchman; Mike Moore; Paula Zeller, Chuck Winsor OTHERS PRESENT: Tom Woodruff DISTRICT 3 MOVED, SECONDED AND DULY CARRIED: Consideration of motion to receive and file minute excerpts from the following re election of mayors and appointment of alternate Directors, as follows: (*Mayor) City/Acencv Active Director Alternate Director Cypress Anna L. Piercy Tim Keenan Seal Beach George Brown' Shawn Boyd P Minutes for Joint Board Meeting y 06/24/98 Page 4 of 9 DISTRICTS 5, 6 8 7 MOVED, SECONDED AND DULY CARRIED: Consideration of motion to receive and file minute excerpts from the City of Newport Beach to be effective July 1, 1998, re the appointment of active and alternate Directors, as follows: Active Director Alternate Director Jan Debay John E. Noyes REPORT OF THE JOINT CHAIR The Joint Chairman reported that the Certificate of Completion for Consolidation of the Districts was fled, and the Districts are now officially consolidated as of July 1, 1998. The first meeting of the Orange County Sanitation District is to be held on July 1e. The Ad Hoc Committee re Strategic Plan, as a result of a presentation by the consultant on four possible scenarios on future treatment processes and the implications of each, has recommended a special workshop be held so that Directors could become more familiar with the issues. This background information will help the Directors make informed policy decisions on the future direction of the District. The Directors were polled and it was announced that the workshop would be held on Saturday, August 22n°, at 9:00 a.m. APPROVAL OF MINUTES (All Districts) There being no corrections or amendments to the minutes of the regular meeting held May 27,1998, the Chair ordered that said minutes be deemed approved, as mailed. RATIFICATION OF PAYMENT OF JOINT AND INDIVIDUAL DISTRICT CLAIMS (All Districts) MOVED, SECONDED AND DULY CARRIED: Ratify payment of Joint and Individual District claims set forth on exhibits 'A'and"B", attached hereto and made a part of these minutes, and summarized below: ALL DISTRICTS 04/01/98 04/15/98 Joint Operating Fund $781,364.67 $3.003,428.54 Capital Outlay Revolving Fund 296,519.17 0.00 Self-Funded Insurance Funds 2,083.33 122,456.84 District No. 1 0.00 0.00 District No.2 0.00 94,245.59 District No. 3 333,327.73 325,054.35 District No. 5 8,042.09 0.00 District No. 6 0.00 0.00 District No. 7 1.113.10 23,219.64 District No. 11 - 0.00 0.00 District No. 13 0.00 0.00 District No. 14 0.00 0.00 TOTALS LIA22ASUM 0,510 404% Directors Mark Leyes, Arthur Perry and Todd Spitzer abstained. Minutes for Joint Board Meeting , 06/24/98 Q Page 5 of 9 CONSENT CALENDAR 9. MOVED, SECONDED AND DULY CARRIED: 1) Approve the plans and specifications for Asphalt and Drainage Improvements at Plant No. 1, Job No. P1-40-3, on file at the offices of the Board Secretary, 2) Receive and file bid tabulation and recommendation; and 3) authorize award of a contract for Asphalt and Drainage Improvements at Plant No. 1, Job No. P1.40-3, to Pave West providing for storm drain piping, curb and gutter work, grading, and paving to improve the drainage in areas around Plant No. 1, for a total amount of$171,717. DISTRICT 2 10. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. 98-19-2, approving Mitigated Negative Declaration for the Replacement of Santa Ana River Interceptor (SARI) Control Gate, Contract No. 240. 11. a. DRAFT SELECTION COMMITTEE MINUTES: The Chair ordered the Selection Committee Minutes for the meeting held on May 28, 1998 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Selection Committee certification; approve Professional Services Agreement with Robert Bein,William Frost and Associates, for preparation of a project pre-design report, construction documents and to provide construction related services for the Carbon Canyon Dam Sewer and Pump Station Abandonment, Contract No. 2-24-1, for an amount not to exceed $74,000.00; and approve an additional budget increase of$419,000.00 for a total project budget of$2,194,000.00. DISTRICTS 5 &6 12. MOVED, SECONDED AND DULY CARRIED. 1) Approve Amendment No. 1 in the amount of$466,650.00 and Amendment No. 2 in the amount of$803,303.00 to the Cooperation and Reimbursement Agreement with the City of Newport Beach for Relocation and Modification to Sewers for the Widening of Newport Boulevard and Pacific Coast Highway, Contract No. 5-41, for design costs, construction management and construction costs; and 2) Approve a budget increase of$1,653,340.00 for design costs, construction management and construction costs which includes$383,387.00 for Districts' staff design, construction management and contingency costs, for a total revised project budget of$2,125,880.00. DISTRICT 5 13. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 1 to the Cooperation and Reimbursement Agreement with the City of Newport Beach, Contract No. 5-41-1, providing for reimbursement by the City of Newport Beach in an amount of $112,200.00 for city sewer work; authorizing an increase in the purchase price of the easement for pump station construction in the amount of$22,586.00, for a total amount of$78,886.00; and authorize additional engineering design services in the amount of $106,300.00,for a total amount of$278,400.00. Minutes for Joint Board Meeting y 06/24/98 Page 6 of 9 DISTRICT 6 14. MOVED, SECONDED AND DULY CARRIED: 1)Approve plans and specifications for the Fairview Relief Sewer, Contract No. 6-12, on file at the offices of the Board Secretary; 2) Receive and file Addendum No. 1 to the plans and specifications incorporating City of Costa Mesa comments; 3) Receive and file bid tabulation and recommendation; and 4)Authorize award of a contract to Mike Pdich & Sons, for the Fairview Relief Sewer, Contract No. 6-12,for an amount not to exceed $2,277,796. DISTRICT 7 15. MOVED, SECONDED AND DULY CARRIED: 1)Authorize execution of a Construction License Agreement with David and Kerry Freiman in connection with Contract No. 7-17; 2)Approve plans and specifications for the Orange Park Acres Trunk Replacement, Contract No. 7-17, on file at the offices of the Board Secretary; 3) Receive and file bid tabulation and recommendation; 4)Authorize award of a contract to Fleming Engineering, Inc.,for the Orange Park Acres Trunk Replacement, Contract No. 7-17, for an amount not to exceed $1,317,530 and; 5)Approve an additional budget of$971,730 for a total project budget of$1,791,730. DISTRICT 11 16. a. DRAFT SELECTION COMMITTEE MINUTES: The Chair ordered the Selection Committee Minutes for the meeting held on May 28, 1998 to be filed. b. MOVED, SECONDED AND DULY CARRIED:_ 1) Receive and file Selection Committee certification; 2)Approve Professional Services Agreement with AKM Consulting Engineers, to prepare a preliminary design report and construction documents for the Goldenwest Street Trunk Sewer Replacement, Contract No. 11-17-3 and Heil Avenue Interceptor, Contract Na- 11-20, for an amount not to exceed $173,632; 3)Approve budget transfer from Contract No. 11-17-2 in the amount of$2,238,300 to Contract No. 11-17-3;4) Approve an additional amount of$1,190,400 for a total project budget of$3,920,400 for Contract No. 11-17-3; and 5)Approve an additional budget of$922,900 for a total project budget of $4,072,900 for Contract No. 11-20. NON-CONSENT CALENDAR 18. DRAFT JOINT STEERING/AD HOC COMMITTEE MINUTES: A verbal report was presented by John Collins, Chair of Steering Committee re the June 24, 1998 combined meeting of Steering Committee and Ad Hoc Committee re Strategic Plan. The Chair then ordered the draft Joint Steering/Ad Hoc Committee minutes for the meeting held on May 27, 1998 to be filed. 19. b. DRAFT AD HOC COMMITTEE RE STRATEGIC PLAN MINUTES: The Chair ordered the draft Ad Hoc Committee re Strategic Plan Minutes for the meeting held on June 17, 1998 to be filed. Minutes for Joint Board Meeting 06/24/98 2 Page 7 of 9 20. b. DRAFT OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE MINUTES: The Chair ordered the draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on June 3, 1998 to be filed. 21. b. DRAFT PLANNING, DESIGN AND CONSTRUCTION COMMITTEE : A verbal report was presented by Director Burnie Dunlap, Chair of Planning, Design and Construction Committee, re the June 4, 1998 meeting, summarizing the actions taken and referring to the draft minutes of the meeting. The Chair then ordered the draft Planning, Design and Construction Committee Minutes for the meeting held June 4, 1998 to be filed. C. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 6 to Rehabilitation of Primary Clarifiers 3, 4& 5 at Plant No. 1, Job No. P141; Seismic Retrofit of Non-Structural Systems at Plant No. 1, Job No. P143; Seismic Retrofit at Plant No. 1, Job No. P1-44; Rehabilitation of Primary Clarifiers D through Q at Plant No. 2, Job No. P248; Seismic Retrofit of Non-Structural Systems at Plant No. 2, Job No. P2-50; Seismic Retrofit at Plant No. 2, Job No. P2-53-2; Tunnel Cover Replacement at Billings Tunnel at Plant No.2, SP19950021; and Sludge Piping Modification at Primary Sedimentation Basins 6-15, SP19950059, with Margate Construction, Inc. authorizing an addition of $92,620.00 and 44 calendar days, Increasing the total contract amount to $8,882,705.00. d. MOVED, SECONDED AND DULY CARRIED: Accept Reclaimed Water Extension to Headworks"C"at Plant No.2, Job No. P246-2, as complete, authorizing execution of the Notice of Completion and approving final closeout agreement with Atlas-Allied, Inc. e. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreements with Converse Consultants, Law/Crandall, and Ninyo & Moore, providing for geotechnical engineering, environmental site assessment and materials testing services for collection system and treatment plant projects, Specification No. P-182;for an amount not to exceed$100,000 per year for each consultant with provisions for two, one-year extensions ($300,000 per year total) to be approved by the Planning, Design and Construction Committee. f. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreements with DGA Consultants, Inc., Bush &Associates, Inc., and Forked Engineering &Surveying, Inc., providing for surveying services for collection system and treatment plant projects, Specification No. P-183, for an amount not to exceed $100,000 per year for each consultant with provisions for two, one- year extensions ($300,000 per year total), to be approved by the Planning, Design and Construction Committee. g. MOVED, SECONDED AND DULY CARRIED: 1)Approve plans and specifications for the Warehouse at Plant No. 2, Job No. P2-65, on file at the offices of the Board Secretary, and 2) approve a budget increase of$385,000, bringing the total project budget to$1,564,000. Minutes for Joint Board Meeting u 06/24/98 Page 8 of 9 22. b. DRAFT FINANCE,ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MINUTES: A verbal report was presented by Director George Brown, Chair of the Finance,Administration and Human Resources Committee Minutes, re the June 10, 1998 meeting, summarizing the actions taken and refening to the draft minutes of the meeting. The Chair then ordered the draft Finance, Administration and Human Resources Committee Minutes for the meeting held on June 10, 1998 to be filed. C. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of May 1998. d. MOVED, SECONDED AND DULY CARRIED: Renew the District's All- Risk Property and Earthquake Insurance Program for the period June 25, 1998 to June 25, 1999, in an amount not to exceed$1,020,000. e. MOVED, SECONDED AND DULY CARRIED: Approve the proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for 1998-99, and recommend adoption thereof to the consolidated Board of Directors on July 1, 1998, as follows: Joint Works OperatingANorking Capital $45,200,000 Worker's Compensation Self Insurance $ 565,000 Public Liability Self-Insurance $ 335,000 Joint Works Capital Outlay Revolving $49.284,000 Collection System Zone Operating $10,180,000 Collection System Zone Capital Improvements $22,904,000 Debt/COP Service $36,459,000 f. MOVED, SECONDED AND DULY CARRIED: Receive and file 1998/99 Strategic Goals Workplans. ALL DISTRICTS 23. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution Nos. 98-16 and 98-17, approving Administrative Services Agreements with the Variable Annuity Life Insurance Company (VALIC) and The Intemational City Management Association Retirement Corporation (ICMA), as deferred compensation carriers for Districts'employees; and adopt Resolution No. 98-20, approving Third Amendment to the Deferred Compensation Plan for the Officers and Employees of the Districts. 24. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. 98-18. Acknowledging the Final Approval of Districts' Reorganization DC97-30 by the Local Agency Formation Commission Resolution DC97-30, and Approving the Transfer of All Powers, Rights, and Duties of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, to the Newly-Created Orange County Sanitation District, Including that Certain General Assignment of Contracts, Agreements, Permits, and Other Obligations. Director Mark Leyes opposed. Minutes for Joint Board Meeting 06/24/98 a Page 9 of 9 25. MOVED, SECONDED AND DULY CARRIED: That the Joint Boards of Directors recommend to the Board of Directors of the consolidated Orange County Sanitation District adoption of a Resolution selecting the annual change in California per capita personal income as the cost-of-living adjustment factor, and establishing $47,151,000 as the annual GANN Appropriations Umit for fiscal year 1998-99 for the Orange County Sanitation District in accordance with the provisions of Division 9 of Title 1 of the California Government Code. The Resolution will need to be approved July 1, 1998 by the consolidated Board of Directors. 26. MOVED, SECONDED AND DULY CARRIED: Approve Assignment of Lease from First Federal Bank of California to Seaside Financial Corporation (Specification No. L-009-1), in a forth approved by General Counsel. ADJOURNMENTS (All Districts): The Chair declared the meeting adjourned at 8:18 p.m. A:I�Ylep* 4 S cretary o oards Directors of County San 'on Dis Nos. 1, 2, 3, 5, 6, 7, 11, 13 8 14 M1wpAa�gendskl 9W Jo1M Board WnulWOW498.dw County Sanitation Districts Of Orange County Claims Pak 04/01/98 Check No. Vendor Amount Description 10406 Curdle Engineers $43,297.27 Engineering Services 10407 Dell Marketing LP. $49.688.59 Computers INNS Della Daniel $38,210.14 Daniel Insurance Plan 10409 Edison Co. $60,581115 Power 10410 J.D.Edwards WoM Solutions $70,233.59 Software License Fees MO 7-24-96 10411 James Martin 5 Co. $28,124.67 Data Integration Project 1D412 Nemimn Padlic,Inc. $59,993.34 Ferric Chloride MO 9-27-95 10413 Lee&Ro Inc $34,606.35 Engineering Services J-57 104M Mladen Buni ck Construction Co $333.301.00 Construction 3.38-3,2-R-97 10415 Pima Om Systems Inc $93,048.21 Residuals Removal MO 3.29-95 10416 Serpenlb Coryoretion $55,300.84 Conveyor Parts 10417 TO,Ranch/Magen Fa0m SM,794.96 Residuals Removal 10418 The Ventage Group $41,912.00 Consulting Services 10419 Amedcen Telephone 8 Telegraph-Cellular CR 5 R $30.22 Long Distance Telephone Services 10420 American Telephone&Telegraph-Cellular CR BR $9.63 Long Distance Telephone Services 10421 Amerken Telephone B Telegraph-Megeoom $804.63 Long Distance Telephone Services 10422 A.M.Beat Company,Inc. $86.95 Publication 10423 Aceu$leMem $841.56 Lab Supplies 10424 American Banker Newsletters $1.023.63 Subscription 10425 American Chemical Society $995.00 Seminar Registration 10426 Analysis,Inc $434.95 Mechanical Pert 10427 Andmwe Glees Co. $5.088.65 Lab Supplies 10420 Anthony Peel Control,Inc. $180.00 Service Agreement 10429 Applame Employment Service $1,269.60 Temporary Employment Services r10430 Arizona Instrument $326,82 Instrument Supplies 10431 Amror-Vac $606.00 Vacuum Truck Services 10432 Ad's Disposal Service,Inca $620.80 Toxic Waste Removal 10433 Awards 8 Trophies By Bea $75.96 Plaques 10434 ACCU-Sludge $1,286.43 lab Supplies 10435 Advanced Engine Tooth Corp. $2,487.50 Engine Testing J-19 10436 Alexander Homithn Institute $45.60 Publication 10437 AMS(Acoustical Materiel Services) $596.08 Misc.Hardware 10438 Aquatic Blosyslems,Inc. $812.75 Lab Supplies 10439 ARMA International $160.00 Membership 10"0 Quickest Organization $376.05 Concrete 10441 AWS) $71.91 D.O.T.Training Program 10442 Bank ofAmerim $302.17 Banking Services 1D443 Battery SpacaBlas $699.14 Batteries 10444 Boyle Engineering Corporation $7,690.28 Engineering Services 7.18 10445 Breezer Constructlsn $65.60 Mechanical Parts 10448 Brown AM Caldwell $4.807.11 Engineering Services Res 93-101 10447 Budget Janitorial,Inc. $3.605.00 Janitorial Services MO 1-12-94 10448 Burke Engramig Go. $234.50 Eleclric5upplles 10449 BNI Bulking News $390.00 Training Registration 10450 C.P.I. $2,068.83 Lab Supplies 10451 Cal-Glom,Inc. $37.72 Lab Supplies 10452 Celg.Amax.of Sanitation Agendas $350.00 Conference Registration 10453 Callfnmla Automatic Gate $1,063.40 Service Agreement 10454 Celo"k,Safety $494.30 Be"Supplies 10455 Camali Corp. $7,187.60 Service Agreement County Sanitation Districts Of orange County Claims Paid OVD11198 Check No. Vendor Amount Description 10458 Camp Dresser&MctCea Inc. $5,751.00 Engineering Services 1D457 Cenbepoate Commercial lntedons $4,877.21 Office Furniture 1045E Contest $20.00 Computer Services 10459 CedOled Labs $1,018.35 Chemicals 10480 Charles P.Crawley Co. $34.41 Inshument Parts 10461 City of Caste Mega $120.00 Permit Fee 10462 Clayton Group Services,Inc. $17,677.08 Professional Services 10463 Colo-Pamler Instrument Company $1.045.08 Lab Supplfs 10484 Compensate Components Of COM $80.81 Pump Pars 1D405 Compusene Incorporated $195.25 Computer Services 10465 Computers Ametice,Inc. $1.283.54 Computer Supplies 1D487 CompVlew $3.565.61 SoflWare 10468 Conam MMP Inspection Inc $936.40 Testing Centraci 10489 Consolidated Electrical Distributors $9,678.93 Electric Parts 104" Consolidated Plastics Company $128.76 Plumbing Supplies 10471 Comets Consultants S925.70 Consulting Services MO 8.11.93 10472 Copeict Capital,Ina $1.432.00 Copier loose 10473 Counterpart Enterprises,Inc. $408.21 Mechanical Supplies 10474 CountyofOrarge $1,252.15 Communications Charges 10475 County of Orange S376.15 Communications Charges /0476 County of Orange $795.47 Communlcatlons Charges 10477 CCI Technologies $4,005.00 Work Station Installation 1D478 CS Company $1,127.12 Plumbing Supplies 1 D419 CSMFO $116.00 Seminar Registration yi 10480 CWEA1998Cenfeennce 5955.011 Conference Registration w 1D481 De Guelle&Sons Glass Co. $94.90 Safety Glass 10482 Del Mar Analytical $1,502.00 BIosOIWs Analysis 10463 De2urlcik $233.59 VaNas 10084 Dunn-Edwards Corporation $276.92 Paint Supplies 10485 Dumb Generator Service,Ina $6,300.00 Generale,Paris low DAE Instruments $348.00 Inabumeat Pads 10487 DME,Inc. S55693 Compressor Pads 104BB Edinger Medical Group,Inc. $70.00 Pra Employment Physicals 10489 Electra Bond,Inc. $484.88 Mechanical Supplies 10490 Electrical South $3,782.88 Equipment Repair 10491 Enchanter,Ina $4.900.00 Ocean Monitored MO 5-24-95 1D492 Enterprise Technologies S111,455.50 Consulting Services 10493 Equipment Life Technology S304.36 Oil 10494 ESP industries $1,001.99 Mechanical Supplies 10495 Fibelbon $196.42 Fiber Optic Cable 10496 Flo-System.Inc. $11,822.19 Pump Paris 10491 Forma Scientific,Ina $232.88 Equipment Maintenance 10498 Richards Capital Corporation $209.11 Lab Supplies 10499 Fortle Somalia Inurance Company $17,918.92 Disability Insurance Premium 105M Fountain Valley Rancho Auto Wash $54.00 Truck Wash Tickets 1D501 Franklin Covey 526.75 OMcs Supplies 10502 Frye Electronics $2,555.23 Electronic&Computer Supplies 10503 Full Spectrum Analytice,Inc $705.B7 Equipment Repair 10504 G.E.Supply Company $3.502.63 Electric Paris 10505 Gerald Lumber Company $170.23 Lumber/Hardeom e County Seniridon Dlstrkb Of Omngs County c Clelms Paid 000198 Chad No. Vendor Amount Description 10508 GaneK-Carahan Company $3,900.55 Chemicals 10507 The Gas Company 355.65 Natural Gas 10508 General Physics Corp $9,000.00 Professional Servhes 105D9 GTE California $394.31 Telephone Sendws 10510 Gentum Publishing Corp $307.D0 Publication 10511 George Yardley Co. $298.30 Lab Supplies 10512 Government Finance Officers Assoc. 83,960.00 SOftW2te 10513 WW Grainger Inc. $1,087.65 Compressor Parts 10514 Gmseby STI 36,838.66 Engine Parts 10515 Thomas Gray It Assoc. $432.00 Professional Servloes 10516 Gmybar Electric Company $5,068.56 Electric Paris l05t7 Great American Printing Cc $410.43 Printing 10518 Great Pectic Equipment Go. $3,02g.83 Mechanical Parts 10519 GOlver's,Inc. $186.12 Credit Note Reimbursement 10520 GST,Inc.I Micro City $2,471.99 Office Supplies 10521 Meeker EqulpmeM Company 3380.14 Truck Parts 10522 Hain d Kirk Inc. $2.892.14 Truck Parts 10523 Haulaway Storage Containers $1,11M.00 Container Rentals 10524 Hello Direct,Inc. $205.00 Telephone Equipment 10525 Herb's SlaGioresl Bakery 8 Dell 377.15 Dimcan'Meeting Expense 10526 HewleB-0ackard $112.06 Service Agreement 10527 Hoerbger Service Inc $439.91 Compressor Pads rt 10528 Home Depot $157.79 Small Hmdware 10529 Imaging Plus,Ina. S2,045.45 Office Supplies Y 10530 Impulse $327.81 Cable w 10531 Industrial Air Compressor 358.87 Compressor Pads 10532 Industrial Threaded Products $772.27 Connectors 1D533 Inorganic Ventures,Inc. $952.37 Lab Supplies 10534 Irvine Ranch Water Dlshch, $49.46 Water Use 10535 lent,Inc $164.75 Instrument 10536 IBM Corporation 3648.00 Service Contract 10537 IPCO Safely-Ca $106.97 Safety Supplies 10538 J.G.Tucker and San,Inc. $609.45 Instrument Parts 10539 Jamison Engineering,Inc, $8.836.91 Construction Services 10540 Johnstone Supply $51.72 Electric Parts 10641 K H.Wage Company $599.62 Electdc Paris 10542 Knox Industrial Supplies $3,031.16 Tools 10643 KNF Neuberger,Inc. $843.23 Lab Supplies 105" LA Cellular Telephone Company $2.093.78 Cellular Telephone Service 10545 Lab Support 33,716.DD Temporary Employment Services 10546 Lebware Inc. 81.500.D0 Consulting SeMces 10547 LsserAn Corp. $3,076.91 Printer Repairs low Listening In Leadership $299.00 Seminar Registration 10549 Lexts44exis $700.00 Subsaiptlan 105M Lord Fleming Architects,Inc $17.892.41 Architectural Services 10551 LRP Publications $366.50 Publication 10552 M.E.Sllbemrann Co. $2,313.16 Sewer Repairs 10553 M.E.Silbennenn Co. $5,461.90 Sewer Repairs 10554 The Marketing Group.Inc. $1,402.91 Soff"te 10555 McXenna Engineering 8 Equipment $10,318.46 Pump Parts County Sanitation District,of orange County Claims Pad 04101r98 Check No. Vendor Ariourd Description 10558 mcmaster-C.r supply Co. $260.99 Tools 10557 Mec Analytical System 52,470.00 Soils Testing slow Medlin Controls Co. 51,382.49 Instrument Supplies 10559 Metler,Inc $7,500.00 Consulting Services 10560 Mldvray Mfg B Machining Co 57,086.11 Mechanical Repair 1D561 Mitchell instrument Co. $228.00 Instrument 10582 Motion Industries $258.20 Pump Parts low Mine Safety Appliances Company 510.42 Instrument Supplies 10554 National Seminars Group $69.00 Seminar Registration 10565 Nautical Soffware $457.00 Soffware 10568 Neal Supply Co $1,393.43 Plumbing Supplies 1D567 New Horixons Computer Lemming $3.190.00 SoBware Training Classes 10560 Novell Electronics $22.05 Electric Pens 10569 NAPM-Orange County,Inc. $50.00 Seminar Reglstrsttan 10570 NAP.M. $92.20 Publication 10571 Office Depot Business Services 5870.37 Office SuPpties 10572 Office Pavlitlon $1,653.43 Office Furniture Repairs 10573 Olsten Staffing Service.Inc. $1,680.25 Temporary Employment Services 10574 Oympus Araerks Inc. 6128.23 Soitwsm 10576 Orange County Wh ie"k,Eledrkal $492.30 Instrument Supplies 10576 Orion Pdntlrg S Design $2,625.87 Printing Services 105" Orrice,Harrington 8 Sutdi9e $3,181.76 Professional Senices r' 10570 Oxygen Service Company $1,355.25 Specalty,Gases 10579 Pedfic Bell $1.286.03 Tetephone Services 10550 Pacific Mechanical Supply $1.502.60 Plumbing Supplies 10581 Pacific Pads and Controls.Inc. 919,965.74 Instrument Pens 10582 Pacific Sales $438.54 Microwave Oven 10583 Padre Janitorial Supplies $894.02 Janitorial Supplies 10554 Parehouse Tire Inc 51.463.62 Tlms 10585 Pearls"Wiping Materiels Co. SS66.31 Janitorial Supplies 10588 Permaseal 5501.85 Lube 011 10587 Permaseal $4.91 Lune Oil 10588 Pool Supply of Orange County $06.44 Operating Supplies 10589 Pope Scientific.Inc $764.49 Lab Supplies 10590 Power Design $4,568.40 Electrical Repobs 10591 Presdlum Inc $2.083.33 Workers Comp Claims Admin. 10592 Pulsafeeder,Inc. 5752.81 Pump Pans 10593 Pulmlelster,Inc Si,890.74 Pump Parts 10594 R 8 R Instmmentaeon,Inc. $174.82 Electric Parts 10595 RaWn Instrument Co.,Inc 5553.33 Lab Supplies 10596 Remedy $8,490.00 Temporary Employment Senkes 10597 RPMEImtrlc Mo" $9.684.58 Electric Motor Pads 10598 RS Hughes Co.,Inc $1,208.24 Paint Supplies 10599 Sera Fe Industrial Products 3309.25 Plumbing Supplies t0600 SctwAng America,Inc $7,434.81 Pump Pane 10001 Scott Specialty Oases Inc 5261.90 Specialty Gases 10602 Second�Sun $240.78 Light Fixtures iDW3 Shamrock Supply Co.,Inc $162.65 Tool, 10604 Shureluctc Select B Engineering $2,798.44 Toole I Hardware 10005 Session,Larseff 8 Marsh $4,000.00 Legal Servlces ., County Sanitation DisMcts Of Orange County o Claims Paid 04/01/98 Check No. Vendor Amount Description Ionia Sigma-Aldrich,Inc $1,760.43 Lab Supplies 10607 SmWEmery Company $6,916.75 Soil Testing MO 7-13-94 10608 South Coast Water $180.0o Lab Supplies login Southern Collfomia Air Cond. $133.73 EleMcal Para 10810 SCESA $160.00 Membership 10811 Southern California Marine Institute $2,895.00 Rental Equipment 10812 Steven Enterprises.Inc. $218.01 Office Supplies 10813 Strata international.Inc. $926.98 Chemicals 10614 Summit Steel $1,630.00 Metal 10615 Super Chem Corporation $608.10 Chemicals loots Taylor-Dunn $967.16 Electric Carl Pads 10817 Technomlc Publishing Company $138.42 Publication 10818 Tekbonbr,Inc $274.83 Instrument Paris 10819 Thermo Jones Ash Corp. $453.52 Lab Supplies 10620 Thomas M.Dawes,P.E. $7.310.00 Professional Servos 10821 Time Motion Tools $261.49 Tools 10522 Time Warner Communications $45A7 Cab%Services 10823 Tony's Lock 6 Safe Service $185.02 Locke 8 Keys 10624 Truck 8 Auto Supply,Inc $300.36 Truck Pads 10825 Truck Pads Supply 6 etc. $90.08 Truck Parts 10826 U.S.Fiber I Zlmpro,Inc. $1.205.18 Lab Supplies 10627 Uft Scientific $1,164.00 Lab Supplies 10828 United Parcel Service $456.07 Parcel Services 10829 Unocal 76 $28.73 Unleaded Gasoline 10830 Valley Clues Supply Co. $1,594.27 Plumbing Supplies 10631 Valley Cities Supply Company $1,809.93 Plumbing Supplies 10632 Vadan Assodales,Inc. $900.00 Lab Supplies 10033 Vertex Business Systems 8850.00 Office Furniture 10834 VWR Scientific Products $15,453.12 Lab Supplies 10035 Water Environment Federation $512.50 Seminar Registration 10636 Wazie Sanitary Supply $680.66 Janitorial Supplies 10837 Wells Supply Company $1,852.02 Pump Pads 10838 Wesac D6smbitlon Inc. $48.20 Insburrent Supplies 10639 Western Pacific Alliance Co. $2,010.67 Service Agreement 10640 Wildfire Pmsfie,Inc. $163.54 Tools 10041 Wing Scientific $660.40 Lab Supplies 10542 Blake Anderson $67.77 Phone Expense Reimb. 10643 Nicholas J.Arhontes S75D00 Conference Registration 10844 James P.Bemis $492.36 Expense Relmb. 10645 Thomas M.Blends $282.71 Training Expense Relmb. 10646 Bruce A.Chapman $20111.34 Training Expense Reimb. 10647 David C.Him S80.90 Seminar Expense Relmb. 10848 Gerald R.Jones $318.91 Seminar Expanse Reimb. 10649 Donald F.McIntyre $230.00 Meeting Expense Reknb. 10650 Michael D.Moore $59.00 Seminar Expanse Relmb. 10851 County Sanitation District of OC $529.14 Patty Cash Reimb. 10652 State Dept of Transportation $7.420.00 Permit Fees 10853 Nancy J.Wheatley $1,248.28 Conference Registration County Santlatlon Districts Of Orange County Claims Paid OV01/98 Ctrock No. Vendor Amount Description 10554 County of Orange $1.170.00 AdminlstraWe Fees Total Claims Paid 04/01/98 $1,422.450.09 Summary Amount District No.3 $333,327.73 District No.5 $8,042.09 Dblrkl No.7 $1.113.10 CORE $296,519.17 SeS Insurance Funds 52,083.33 Joint Operalbm $781.364.67 $1.422.450.09 r rt q m County Senaalbn Districts Of Orange County a Claims Paid 04y15/9e Check No. Vendor Amount Description 10670 City of Garden Grove $325,054.35 Magnolia Trunk Sewer Relmb.Agreement 3-35R ID077 CASA-Blosollds EIR $49,999.00 Emimnmental impact Report Ca.Central Valley 10678 Camp Dnessar 8 McKee Inc. $35,416.00 Engineering Services J40.1,J40.2 10679 Duke Emargy Trading 8 Marketing $73,292.80 Nature]Gas 10680 Kemlron Pacific,Inc. $89,843.84 Ferric Chloride MO 9-27-95 10681 MacDonald-Stephens Engineers $93,963.45 Engineering Services 237 10682 Orange County Water DLstrict $39,916.80 GAP Water Use M0 10.23-96 10883 Pacific Investment Management $109.490.00 Invesbn rnl Management Services 10684 Pima Gro Systems Inc $103,048.11 Residuals Removal M03-29-95 10685 Polydyne,Inc. $197,784.69 Cation]c Polymer M03-11-92 10686 Science Applications Ing..Co $262,401.48 Ocean Monitoring Mo 641-94 10687 Sea-Bird Electronics,Ina 128,882.00 Lab Repairs 10888 Space Leasing Company $38,797.80 Office Trailers P2.70 10689 Tule Ranch/Magan Fame $70,262.49 Residuals Removal 10690 Untied HeahhCam/Make Health $128,635.62 Medical Insurance Premium 10691 Vulcan Chemical Technolegles 546216.84 Hydrogen Peroxide Specification No,C-040 10892 Advance Constructors Inc $145,475.00 Construction J-34-1,P2.35-5 10693 Alrpol Construction,Inc. $116,681.50 Consbuction P1-51R 10694 Margate Construction Inc. $735,926.85 Construction P140.2,P2-47 01 7005 Mace Pdkh B Sons $760,275.47 Construction 3.35R.1 70696 American Telephone B Telegraph-Cellular CR BR $0.53 Long Distance Telephone Services 1D697 American Telephone B Telegraph-MCOecom $2,678.51 Long Distance Telephone Services w 10698 American Telephone 6 Telegraph-Cellular CR BR $3.90 Long Distance Telephone Services n 10699 Jesse Mendez $75.00 Permit Fee Refund 107DO Abrasive Engineering Tool $388.05 Tools 10701 Advanced Cooling Technologies $544.99 Electric Parts 10702 Aldce Systems,Inc. $5,027.51 Tuba Cable 10703 Allied Pecking B Rubber Inc. 3998.33 Gaskets 10704 A8a-Robbins.Ina $817.18 Instrument Supplies 10705 American Institute for Pro.Trim.8 Devel. $1.050.00 Trading Registration 10708 A.Biederman,Inc. $1,114.27 Equipment Repair 10707 Blake Anderson $267.20 Telephone Expense Relmb. 10708 Anthony Peet Control,Inc. $215.00 Service Agreement 10709 Applfed Industrial Technology 578.99 Pump Paris 10710 Aquatic Bloassay,And Consulting $705.00 Lab Supplies 10711 AIR 8 WASTE MANAGEMENT ASSOC. $410.00 Seminar Registration 10712 Air Products 8 Chemicals $22,513.02 O&M Agreement Oxy Gan.SysL MO 83-89 10713 Alexander HamfBon Instlluts $63.00 Publication 10714 AMAOPadgeB-Thompson $14g.00 Training Registration 10715 American Society For Tesdrg $21.00 Publication 10716 AVR:Audio Video Reporting Service $91.59 Publication 10717 Banana Blueprint.Inc. $1,959.93 Printing MO/1-7-94 10718 Blo Gro Division $11.225.84 Residuals Removal M04-26.95 10719 Boyle Engineering Corporation 59,874.80 Engineering Services 7.18 10720 Braezer Construcllon $79.26 Mechanical Pens 10721 Bmhines Ekalric $231.04 Electric Peels 10722 Bureau Of Business Practice $ICL50 Publication 10723 Burlington Safely Laboratory $122.00 Safety Testing 10724 Bush B Associates Inc. $7,408.00 Surveying Services NO 641-94 10725 Business a Legal Reports,Ina $39.95 Pubaralion County Sanitation Districts;Of Orange County Claims Paw 04/15M Check No. Vendor Amount Description 10728 C.S.t1.F.Foundation $8.75111 Demographic Data a Support 10727 Califomla Journal $37.95 Publication 10728 Cagan Associates,Inc. 37,100.00 Investment Advisor 10720 Carono Engineers 5292.25 Engineering Services 10730 Carole Engineers $5,589.21 Engineering Services 10731 Richard A.Castillen $741.74 Meeting Expense Relmb. 10732 Chapman Counsenng $11,000.00 Employee Training 10733 Charles P.Crowley Ca. $1,616.58 Instrument Pads 10734 City of Fountain Valley $10,098.60 Water that 10735 City of Fullerton $37.79 Water Use 10736 City of Huntington Beach $11.103.68 Water Use 10737 City of Seal Beach $148.14 Water Use ID738 Coast Fire Equipment $530.67 Service Agreement 10739 Cob-Pamrer Instrument Company $262.95 Lab Supplies 1074D Communications Performance Group $14.285.00 Professional Services 10741 Conran GM Paris 333.87 Truck Paris 10742 Consolidated Ebctriral Distributors 38.BNA5 Ebctrtc Parts 10743 Consumes Pipe&Supply Co $151.93 Plumbing Supplies 10744 C4mmema4Mclaughlin $10.23 Tools 10745 Comrese,Consultants $2,120.30 Consulting Services MO 8.11.93 10746 CcmeY Development $499.50 Software License 10747 Cook Brothers $408.57 Valve 10748 Core Laboratories,Inc $400.00 Sons Testing m W749 Corporate Express $3,901.02 Office SuPPlles 1 10760 Costa Mass Auto Supply $56.95 Truck Pads ry 10751 County of Orange $4.518.00 Administrative Fees 10752 County Sanitation Districts of OC $12,478.51 Workers Comp Reimb. 10753 County whokeate Electric Co. $798.46 Electric Parts 10754 Cane Pro Services $3,854.91 Crane Pads 10755 Culligan Water Conditioning $28.00 Soft Water Service 10758 Custom Cre8 Flooring Contract $2,311.00 Carpet Repair 10757 CCI Technobokro $1,320.00 Work Station Installation 10758 CEM Corporation $118.54 Lab Supplies 10759 CHMIA $350.00 Conference Registration 10780 CS Company $1,66D.46 Plumbing Supplies 10761 Dally Pilot $231.25 Notices 8 Ads 10782 Dell Marks" LP. $21,952.10 Computes form Dover Elevator Company $5,059.60 Elevator Maintenance 10764 Dunn-Edwards Corporation $697.48 Paint Supplies 10765 DGA Consultants.Inc. $13.300.00 Surveying Services M06.8-94 10768 Edson Co. $8.199.75 Pourer 10787 Electra Bond.Inc. $1,616.25 Mechanical Supplies 10788 Enchanter,Inc, $3,500.00 Ocean Monitoring M05-2a95 10769 Enterprise Technologies $1.440.00 Consulting Services 10770 Environmental Resources Associates $219,10 lab Services 10771 Environmental Science Associates $13,497.45 Professional Services 10772 ESP Industries,Inc. $399.96 Mechanical Supplies 10Tr3 Federal Express Corp.. $304.70 AIr Freight 10774 FBsrtron $562.49 Fiber Optic Cable 10775 Filter Supply Couno ny $191.37 Filters County Sanitation Districts Of Orange County Clalms Paid 04/15/98 Check No. Vendor Amount Description 10778 Fisher Scerdl8c S11,927.51 Lab Supplies 10777 Fleet Services $199.71 Truck Repair 10778 FloSysteme,Ina $227.36 Pump Paris long Fountain Valley Camera $61.73 Photo Supplies 10780 Franklin D.Dryden,P.E. $3.825.00 Professional Services 10781 Fmnklin-MBbr Incorporated $22.738.35 Mechanical Paris 10782 Frye Electmnlm $1,692.22 Electronic&Computer Supplies 10783 G.E.Supply Company $250.30 Electric Parts 10784 Gerald Lumber Company $4,332.72 Lumber/Hardware 10785 Genoa-Callahan Company $5,054.72 Chemicals 10788 German Group Inc. $1,427.42 Talking Tech.Series 10787 The Gas Company $8,886.59 Natural Gas 10788 General Binding Corporation $1,301.48 O18ce Machine Repairs 10789 GTE CelBomle $2,885.87 Telephone Services 10790 George Yardley Co. $421.74 Lab Supplies 10791 WW Grainger Inc. $140.40 Compressor Parts 10792 Graphic Distributors $34.43 Photographic Supplies 10793 Gmaeby ST1 $1.248.72 Engine Part. �1 10794 GBC(Oenerel Binding Corp) $212.44 ON.Machine Repairs x 10795 GST,Inc/Micro City $4,195.65 Oraco Supplied 107M Doctor Diesel $2,772.28 Professional Services r, 10797 Herb's Blacklo nest Bakery&Dell $78.40 Directors Meating Expanse ri 10798 Hewlett-Packard $1,098.63 Service Agreement 10789 MINI Inc $6.20 Tools 108M HoeNI9er Servlco Inc $4.006.12 Compressor Paris 10801 The Holman Group $765.38 EAP Premium Apr 98 10802 Home Depot $346.87 Small Hardware 10803 Hub Auto Supply $25.66 Truck Parts 10804 Huntington Beach Dodge $22,229.20 Truck 10805 Hydraulic Institute $81.50 Eng.Date Book 10808 Imaging Plus,Inc $438.10 Office Supplies 10807 Information Resources $100.00 Personnel Services 10808 Intelligence Press,Inc. E728.00 Subscription 10809 IBM Corporation-Way $130.21 Service Contract 10810 Interstate Battery Systems $1,878.19 Batteries 10811 mdue Ranch Water Glamour, $23.204.61 Water Use 10812 Isco,Inc $377.13 Instrument 10813 IPCO Safety-Ca $9,666.23 Safety Supplies 10814 J.G.Tucker and Son,Inc $3.979.09 Instrument Parts 10815 J.D.Edwards So.Calif.Users $150.00 Membership 10818 J.O.Edwards Worts Solutions C $4,040.00 Training Registration 10817 Jamison Engineering,Inc. $4,447.05 Construction Services 10810 Jay's Catering $1.025.18 Directors'Meeting Expense 10819 Arn's Suspension Service $50.00 Truck Repairs 10a2D Johnstone Supply $170.22 Electric Parts 10a21 JH Recognition Company $187.64 Srmlm Awards 10822 K.P.Linderman $8,760.00 Emir.Consulting Services MO 12-9-90 10823 Kelly Paper $75.77 Paper 10824 Knox Industrial Supplies $1.497.76 Tools 10825 LA.Cellular Telephone Company $229.25 Cellular Telephone Service County Sanitation Districts Of Orange County Claims Paid 0U15198 Check No. Venda, Amount Description 10826 Lab So"Supply,lnc. $92.78 Safety Supplies 10827 Laklaw Env.Svcs.of Ca18. $17.611.49 Hazardous Material Disposal 10828 LassrAll Corp. $460.65 Printer Repair 10829 Lawrence Ragan Communications $119.00 Motivational Manager Subscr. 10830 Lar song In Leadership $349.00 Seminar Registration 10831 Lffecem6efety,Inc $4.221.97 Batteries 10832 Una%Protective Coatings $511.63 Truck Porte 10833 Maintenance Technology Corp. $828.07 Welding Supp0ea 10834 Mantic Motors $125.00 Towing Services 10835 Mar Vac Electronics $550.96 Instrument Supplies 10838 Me Junkln Corp $1,806.40 Plumbing Supplies 10837 McMaster-Cart Supply Co. $74.03 Toole 10838 Medlin Controls Co. $1.671.42 Instrument Supplies 10839 Micro Flex $608.00 Safely Supplies low MlcroAge Computer $1,185.25 Software 10841 Midway Mfg B Machining Co $16,149.57 Mechanical Repalm 10842 Mason Uniform Service $6,248.42 Uniform Remms 10843 Mobile Modular Management Corp $344.80 Office Trailer Lease low Momiand$Associates $1,900.00 Auditing Services MO 3A45 10845 Mellon industries, $82.99 Pump Peels IOUs MoloPhoto $95.48 Photographic Services 10847 MPS Photographic Services,Inc $115.56 Photographic Services „: IOUs National Microcomp m Services $1,685.00 Service Agreeent 84 m f09 Neal Supply Co $3,167.66 Plumbing Supplies 1 10850 Network Colatyst $2,690.82 Software 10851 Now Horizons Computer Leaming 92,899.00 Safhwm Training Classes 10352 Nevrark Electronics $325.09 Instrument Parts 10853 Rickey Petroleum Co Inc $1,807.72 Lubricant/Diesel Fuel 10854 no Norco Companies $119.30 Mall Delivery Service 10855 Ronan Products $2,926.59 Electrical Paris 10858 NAPM-Orange County,Inc. $16.00 Seminar Registration 10867 NTRCO,Inc $2.331.25 SoBwana 10858 Office Depot Business Services $2,016.38 Once Supplies 10859 Orange Coast Petroleum Equipment $242.44 Valve Nozzle 10860 Orange Coast Pipe Supply $146.92 Plumbing Supplies 10861 Orange County Wholesale Electric $226.17 Instrument Supplies 10862 Orange Volvo&FftOng Company $3.015.75 F'minga 10863 Osterbeuer Compressor $827.75 Compressor Peels 108" Oxygen Service Company $2.850.98 Specialty Oases 10965 Ol Analyllcel $216.04 lab Supplies INN Pacific Bell $38.72 252-1890 10857 Padre Janitorial Supplies $369.69 Janitorial Supplies 10868 Parkhouse Tim Inc $776.97 Time 10869 Parts Unlimited $1,173.23 Truck Parts 10870 Pathfinder Technologies $9,533.00 Instrument Supplies 10871 pmley Bowes $351.48 Postage Machine Service Agleemem 10872 Pizza Hut $621.00 El Nino Storm Thanks Lunch 10873 Power Design $3,576.95 Electrical Repahs 10874 Programme's Parades.Ina $2,838.50 Software 10875 Pryor Resources,Inc. $89.00 Training Registration County Sanitation Districts Of orange County Claims Paid OM15/98 Check No. Vendor Amount Description 10876 PAL Publications Group $20.70 Publication 10871 PCS Express 5331.10 Courier Services 10878 Pago Systems $8.423.68 Mechanical Parts 10879 PSI $387.13 Hardware 10880 Rainbow Disposal Co.,Inc. $2,160.05 Trash Removal 10881 Red Valve Company,Inc. $1,389.03 Mechanical Pads 10882 Rellastar $23.204.11 Insurance Premium 10883 Rellaster Bankers Security Life $4.784.09 Insurance Premium 10884 Robedds Auto Trim Shop $255.00 Truck Repair 10885 RPM Electric Motors $3,035.98 Electric Motor Pads 10888 RS Hughes Co.,Ina $156.58 Point Supplies 10887 SaBAmerlcs $13.941.52 Electrical Pads IN88 Scati Specialty Deena Inc. $1,210.82 Specialty Oases 10889 Showcase Corporation $1,077.50 Service Agreement 10890 Shuraludk Sales B Englneedng $1.427.43 Tools/Hardware 10891 Sl9maAldrich,Inc. 6665.95 Lab Supplies 10892 South Coast Water $170.00 Lab Supplies 10893 Southern California Edison $14.134.00 Power 10894 Sparklelts $1.973.56 Drinking Water/cooler Rentals 10895 StateNet 5330.00 Maintenance Contract 10898 Strategic Frameworks,Inc. $1.650.00 Pro/esslonel Servlcas 10897 New Haven Manufacturing Corp. $89.00 Equipment Repair 10698 Summit Steel $491.97 Metal 10899 Super Chem Corporation $1.386.26 Chemicals I 10900 Superintendent of Documents $113.00 Publication 10901 Swains Electric Motor Service $984.49 Equipment Repair 1OW2 Symcae,Inc. $1.100.00 Consulting Servhres 10903 SKC-West,Inc. $909.89 Safety Supplies Willis Taylor-Dunn $94.63 Electric Cad Pads 10905 Thompson Industrial Supply,Inc. $334.91 Mechanical Paris 10908 Time Motion Toole $232.54 Tool. 10907 Aerofund Flnand2Vrop Hat Productions $1,138.92 Directors Meeting Expense 10908 Trod Personnel Services,Inc. $16,200.00 Temporary Employment Services 10909 Trinity Consultants Inc. $740.00 Training Registration 10910 Truck&Aute Supply,Inc. $250.77 Truck Pads 10911 Truck Parts Supply 8 eta. $121.82 Truck Pads 10912 The Unlaource Corporation 5851.88 Office Supplies 10913 United Parcel Service 11M.61 Parcel Services 10914 United Stales Postal Service $5.000.00 Postage 10915 United States Safe Deposit $101.50 O6stle Back-Up Tape Storage 10916 UIER/ARMA $101.00 Training Registration 10917 US FlBer/PolymeMca,Inc. $1.262.75 Lab Supplies 10918 Vertex Inc. $713.31 Subscription 10919 Vision Service Plan-(CA) $15,332.10 Vision Service Premium 10920 VWR Sdentiec Products $4,434.42 Lab Supplies 10921 Warrington Labs,Inc. $220.00 Service Agreement 10922 Waste Markets $17,036.50 Residuals Removal MO 3.27-96 10923 Water Education Foundation $100.00 Subscription 10924 Water Ernlmnment Federation $500.00 Conference Registration 10925 Waterman Industries $974.30 Mechanical Parts County Sanitation Districts Of Orange County Clahns Paid 04115t98 Check No. Vendor Amount Description 10928 Wayne Electric $1,594.70 Batteries 10927 Welgh-Trunk,Inc. $1.911.60 Electrical Parts 10928 Waeg Scientific $696.92 tab Supplies long Xemx Corporation $17.103.86 Copier Leases 10930 Wrk%pedex Paper B Graphics $95.97 Paper 10931 3D Instruments,Inc. $272.71 Gauge Cases 10932 Nicholas J.Arhontes $440.43 Meeting Expense Relmb. 10933 Corns M.Chaudhry $139.00 Tmining Expense Relmb. 10934 Kimberly C.Christensen $1,633.18 Training Expense Relmb. 10935 Dell Computer Corp.and Mike Barrett $2.261.00 Employee Computer Loan Program 10936 Anon P.Dundee $412.50 Training Expense Relmb. 10937 Penny M.Kyle $223.80 Ca.Notary Publlc Exam 10938 Donald F.McIntyre $243.75 Urban Water Inst.Conference 10939 AOs"Had,Inc $24,692.00 Construction P248-2 10940 City of Fountain Valley $1,885.00 Permit Fee 10941 Wine Ranch Waer Districts $3.54 Water Use 10942 Osterbauer Compressor $693.00 Compressor Total Claims Pak 04/15198 $3,588,404.98 N m Summery Amount District No.2 $94.246.69 District No.3 $325,054.35 District No.7 $23,210.64 Sall Insurance Funds $122,456.84 Joint Opemtlons $3,003,428.54 $3,568,404.96 AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING JULY 29, 1998—6:30 P.M. In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. In the event any matter not listed on this agenda is proposed to be submitted to the Board for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item, or that there is a need to take immediate action which need came to the attention of the District subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted not less than 72 hours prior to the meeting date. 1. Invocation and Pledge of Allegiance 2. Roll Call 3. Consideration of motion to receive and file minute excerpts of member agencies relating to appointment of Directors, K any. (See listing in Board Meeting folders) 4. Appointment of Chair pro tem, 'rf necessary 5. Consideration of the following actions relative to proposed Ordinance No. OCSD-05, Continuing and Establishing Sanitary Sewer Service Charges: a. PUBLIC HEARING 1. Open hearing 2. Verbal report of General Counsel 3. Verbal report of staff 4. Receive, file and approve Determination of Financial Rates and Charges draft report dated February 1998 5. Receive and file written comments, if any 6. Oral public comments, if any 07/29i98 Page 2 of 7 (Continued from page 1) 5. a. 7. Directors' discussion, if any 8. Staff response to comments 9. Close hearing b. RECOMMENDED ACTIONS 1. Motion to read Ordinance No. OCSD-05, Continuing and Establishing Sanitary Sewer Service Charges, by title only, and waive reading of entire ordinance (The waiver of the reading of the entire ordinance must be adopted by unanimous vote of Directors present); and, 2. Motion to adopt Ordinance No. OCSD-05. 8. Public Comments: All persons wishing to address the Board on specific agenda items or matters of general interest should do so at this time, As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Board of Directors except as authorized by Section 54954.2(b). 7. The Chair, General Manager and General Counsel present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. a. Report of Chair, consideration of Resolutions or commendations, presentations and awards b. Report of General Manager C. Report of General Counsel 8. If no corrections or amendments are made, the minutes for the meetings held on June 24, 1998 and July 1, 1998 will be deemed approved as mailed and be so ordered by the Chair. 07/29/98 Page 3 of 7 9. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 04/29/98 05/13/98 Joint Operating Fund $1.924,637.25 $1,821,859,14 Capital Outlay Revolving fund 291,589.31 856,053.86 Self-Funded Insurance Funds 0.00 2,083.33 District No. 1 0.00 0.00 District No. 2 14,381.16 75,148.95 District No. 3 87.86 3,000.00 District No. 5 0.00 0.00 District No. 6 0.00 0.00 District No. 7 926.98 0.00 District No. 11 0.00 0.00 District No. 13 0.00 0.00 District No. 14 0.00 0.00 TOTALS $2 231 622 55 $2 756 145 28 CONSENT CALENDAR (ITEM NOS. 10- 13) All matters placed on the Consent Calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair, state their name, address and designate by number the item to be removed from the Consent Calendar. - The Chair will determine If any items are to be deleted from the Consent Calendar. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 10. Authorize the transfer of connection.fees in the amount of$752,807.04 to the Irvine Ranch Water District. 11. Approve Addendum No. 1 to the Professional Services Agreement with K.P. Lindstrom, Inc., extending the period of service from June 30, 1998 through December 31, 1999. 12. Approve Administrative Order on Consent agreement with the United States Environmental Protection Agency to settle potential liability for wastes deposited at the Operating Industries, Inc., Superfund Site, for an amount not to exceed $95,799.00. 07/29/98 Page 4 of 7 13. Approve out-of-country travel by John Falkenstein, District's employee, to witness factory testing of new compressor package in connection with Compressed Natural Gas Refueling Station, Job No. PI-51(Rebid), in Canada; and approve payment of travel expenses for an estimated amount of$1,300.00. END OF CONSENT CALENDAR 14. Consideration of items deleted from Consent Calendar, if any. 07/29/98 Page 5 of 7 NON-CONSENT CALENDAR 15. a. Verbal report by Chair of Steering Committee re July 29, 1998 meeting. b. DRAFT JOINT STEERING/AD HOC COMMITTEE MINUTES—NO ACTION REQUIRED (Information only): The Chair will order the draft Joint Steering/Ad Hoc Committee Minutes for the meeting held on June 24, 1998 to be filed. 16. a. Verbal report by Chair of Operations, Maintenance and Technical Services Committee re July 8, 1998 meeting. b. DRAFT OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE MINUTES—NO ACTION REQUIRED(Information only): The Chair will order the draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on July 8, 1998 to be filed. C. Authorize the General Manager to proceed with the Cooperative Projects Program with the agencies within the District's service area. 17. a. Verbal report by Chair of Planning, Design and Construction Committee re July 9, 1998 meeting. b. DRAFT PLANNING, DESIGN AND CONSTRUCTION COMMITTEE MINUTES—NO ACTION REQUIRED(Information only): The Chair will order the draft Planning, Design and Construction Committee Minutes for the meeting held on July 9, 1998 to be filed. C. Accept Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17-1, as complete with Colich Bros., Inc. dba Colich & Sons, authorizing execution of the Notice of Completion. d. 1) Ratify Change Order No. 1 to Job No. P2-70 with Space Leasing Company, Inc. for an addition of$1,220.00, increasing the total contract amount to $185,209.00; and 2)Accept Replacement of Construction Management Trailers at Plant No. 2, Job No. P2-70, as complete, authorizing execution of the Notice of Completion and approving final closeout agreement with Space Leasing Company, Inc. e. Ratify Change Order No. 7 to Job No. J-34-1 with Advanco Constructors, Inc. for an addition of$299,900.00, increasing the total contract amount to $7,629,807.00, and reduce the contract retention from five percent of the contract amount to$15,000.00. f. Approve Professional Services Agreement with Carollo Engineers for Electrical Power System Studies, Job No.J-25-4, for an amount not to exceed $1,975,951.00, 07/29/98 Page 6 of 7 (Continued from page 5) 17. g. 1)Approve plans and specifications for Replacement of Santa Ana River Interceptor Control Gate, Contract No. 2-40, on file at the offices of the Board Secretary; 2)Approve Addendum No. 1 to the plans and specifications; 3) Receive and file bid tabulation and recommendation; and 4) Award a contract to NCCI Enterprises, Inc. for Replacement of Santa Ana River Interceptor Control Gate, Contract No. 2-40, for an amount not to exceed $430,470.00. 18. a. Verbal report by Chair of Finance, Administration and Human Resources Committee re July 15, 1998 meeting. b. DRAFT FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MINUTES—NO ACTION REQUIRED (Information only): The Chair will order the draft Finance,Administration and Human Resources Committee Minutes for the meeting held on July 15, 1998 to be filed. C. Receive and file Treasurer's Report for the month of June 1998. d. Adopt Resolution No. OCSD 9840,Authorizing the District's Treasurer to Invest and/or Reinvest District's Funds, and Adopting District's Investment Policy Statement and Performance Benchmarks; and, receive and file the Investment Policy Statement for Fiscal Year 1998-99. e. Approve Resolution No. OCSD 98-41,Authorizing the General Manager to enter into separation agreements with District employees in speed circumstances. f. Approve the establishment of a Defined Contribution (401a) Pension Plan for the General Manager only, and direct the General Counsel to prepare such a plan and an amendment to the contract of employment with the General Manager. 19. 1) Receive and file letter dated June 23, 1998,from Walter J. Drake requesting a refund for taxes paid prior to 1978 and to reduce his connection fee to $250.00; and 2) Deny Mr. Drake's request. 07/29/98 Page 7 of 7 20. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9. 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disdosures of information. a. Convene in closed session, 9 necessary 1. Confer with General Counsel regarding significant exposure of litigation against the District (Government Code Section 54956.9(a)(2)) 2. Evaluation of General Manager's performance (Government Code Section 54957) b. Reconvene in regular session C. Consideration of action, if any, on matters considered in dosed session 21. Matters which a Director would like staff to report on at a subsequent meeting 22. Matters which a Director may wish to place on a future agenda for action and staff report 23. Other business and communications or supplemental agenda items, if any 24. Adjournments NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of Directors shall submit items to the Board Secretary no later than the close of business 14 days preceding the Board meeting. The Board Secretary shall include on the agenda all items submitted by Directors, the General Manager and General Counsel and all formal communications. Board Secretary: Penny Kyle (714) 593-7130 or (714) 962-2411, ext. 7130 WadenWalal bq.dtaWpaMa11M Jolrt ewrd Age„daaenass.dw SUPPLEMENTAL AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 108"ELLIS AVENUE FOUNTAIN VALLEY,CA 92708 REGULAR MEETING July 29, 1998—6:30 P.M. RE: AGENDA ITEM NO. 3 Minute excerpts have been received as set forth below. Pursuant to Regular Agenda Item No. 3, it is appropriate to receive and file said excerpts: 3. a. Consideration of motion to receive and file minute excerpts from the following re appointment of active and alternate Directors, as follows: City/Acencv Active Director Alternate Director Garden Grove Mark Leyes Bruce A. Broadwater Board of Supervisors William G. Steiner Todd Spitzer b. Consideration of motion to receive and file any minute excerpts received subsequent to preparation of supplemental agenda, if any H'.hry dtalagendatl%18 Joint Board AgendasV)72W8auppagenda doc EXCERPTS FROM THE MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT A regular meeting of the Board of Directors of Orange County Sanitation District was held at the hour of 6:30 p.m., July 29, 1998, at 10844 Ellis Avenue, Fountain Valley, California. The Chair of the Orange County Sanitation District called the meeting to order at 6:30 p.m. The roll was called and the Secretary reported a quorum present. MOVED, SECONDED AND DULY CARRIED: Approve the establishment of a Defined Contribution [IRS Section 401(a)] Pension Plan for the General Manager only, and direct the General Counsel to prepare such a plan and an amendment to the contract of employment with the General Manager. STATE OF CALIFORNIA) )SS. COUNTY OF ORANGE ) I, PENNY M. KYLE, Secretary of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing to be a full, true and correct copy of minute entries on the meeting of said Board of Directors on the 29th day of July, 1998. IN WITNESS WHEREOF, I have hereunto set my hand this 11th day of August, 1998. Secretary, Oard of Di ctors Orange County Sanitation Di ict H:\wp.dtakadmln\BSTORMS\1998\Mlnutm Excerpt-070198.1.dw ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE: July 29. 1998 TIME: 6:30 p.m. (HOLMBERG)........ANDERSON .................. At Y Y ✓ (FLORY)...............BANKHEAD .................. / Y Y Y (SOYDI................BROWN .......................�L Y Y Y (COOK) ...............COLLINS ...................... ✓ Al Y Y ✓ (NOYES)..............DEBAY.........................Y Y Y Y ✓ (FRESCHI)............DENES.........................i✓ Y Y Y ✓ (DOTSON) ...........DONAHUE.................... Y Y Y r (PARKER).............DUNLAP.......................Y Y Y Y ✓ (UNDERHILL)........ECKENRODE................. ✓ Y Y Y i (PERRY)...............FERRYMAN .................. ✓ Al _ Y V ✓ (WISNER).............GULLIXSON.................. 6ZI CL r� Y A� (BROADWATER) ...LEYES.......................... V Y x Y ✓ (MAULLER) ..........MARSHALL ..................y/ w Y Y ✓ (LUTZ).................MC GUIGAN .................y Y Y Y ✓ (WALKER)............MINER-BRADFORD ........ v/ Y Y Y ✓ (COONTZ)............MURPHY...................... ✓ Ae ,/ V ✓ (KEENAN) ............PIERCY ........................ . Y Y Y ✓ . (EVANS)..............RICE............................ ✓ y v ✓ (POTTS) ..............SALTARELLI .................y/ Y Y m ✓ (HAMMOND)........SHEA...........................y/ �L. t.1 v ✓ (SPITZER) ............STEINER ...................... ✓ Y Y Y ✓ (HARMAN)...........SULLIVAN.................... ✓ Y Y Y ✓ (MILLER).............~N .. .....................I/ Y Y Y i (BATES) ..............SYLVIA........................ LL Y a. a (DALY) ................ZEMEL......................... ✓ Y v N ✓ STAFF: ( Ync/1�f�n2( Anderson Kyle ✓ Ludwin ✓ McIntyre ✓ � //J Miles ✓ � �G,n,"�' -- ten Pe ✓ �G� Peterman Streed ✓ Tuchman ✓ Moore ✓ OTHERS: Woodruff ✓ Andrus H:hvp.AhNOMn'8STlRECT0R0V6d0m Rdl CalLdw l /YAP, BEST ^ TDADDRESS THE BOARD OF D/RECTORS GENERALINERESTSHOUOADDRESSWBOARDONSPECIFICAGENDAITEMspR,yty�ER oF`, GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO rHeTEMS ORecReTi,S v TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, sPE-.��c�s N1 BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: 4L•�./. �e • . . ' ' AGENDA ITEM NO. ` NAME: (please print) 4k✓ HOME ADDRESS: /-//�2- (number/street) — �� L -0. �fJ1 �JI - f:-✓�C% C city/zip code) �. TELEPHONE: REPRESENTING: (self/name of organization) M (IFSITQADD RESS TyEBOgRD �Od C OF D/RECTORS /IOD�LSs rHESOARD ON SPECIF/CAGENDA ITEMS pR GENERAL INTEREST SHOULD COMPLETE AND SUBMlT TH(S FORM To THE BOARD sECRerARv PRioR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIR OR MsPEarc Ro,,.,q„ BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE:qJ l O AGENDA ITEM NO. LR� . NAME: (please print) c\Q� I.LG� HOME ADDRESS: K2SJ I -2�:.�lioi (number/street) (city/zip code) Q TELEPHONE: " Zl�(^ REPRESENTING: (self/name of organization) ,/ REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. c� DATE: 1� AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: I ZS� I R L Y�l lJ�� St �.X � I LA (number/street) TS ( I , (city/zip code) TELEPHONE: REPRESENTING: (selflname of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: /�d /� AGENDA ITEM NO. . . . . . . . //.gyp. . ./. . . : . . . . . . . . . . . . . . NAME: (please print) ( /I �� (� �/� (- �7 U MW HOME ADDRESS: /V- (number/street) (city/zip code) TELEPHONE: REPRESENTING: Sr%L (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. p DATE: -3 ¢��9 / y� AGENDA ITEM NO. NAME: (please print) 9Lt HOME ADDRESS: 4 (number/street (city/yip code) TELEPHONE: REPRESENTING V. l !' � (� d (self/name of orga i atio REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. yy// DATE: 7 - ��� /Ci AGENDA ITEM NO. . . . . . �. . . . s. .(. . . . . . . . . . . . . . . . . NAME: (please print) fr(14VI HOME ADDRESS: / / 73S &J AZ,G It-k. (number/street) des% IIU-5P- EaG,F 9� G7 (city/zip code) TELEPHONE: REPRESENTING: (self/name of organ tion) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. 7 s DATE: zo AGENDA ITEM NO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NAME: (please print) HOW ADDRESS: ZOO /V°� �clr�"loj� 1!�'�j/J' (number/street) (city/zip code) Q �/ TELEPHONE: REPRESENTING: L,/T (mW/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. t— DATE: /-7- AGENDA ITEM NO. J . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NAME: (please print) Sfet,��, eL- -L S HOME ADDRESS: ll oG cc', /x r /,,A (number/street) O L A �z��s (city/zip cod ) TELEPHONE: REPRESENTING: Sr Ig'-' ?SbA'dr (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: i `-"`� -, AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: _- (number/street) (city/zip code) TELEPHONE: '! ' REPRESENTING: (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: / 7 AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: �`��` Al..�w A..,5- (numberlstreet) (city/zip code) TELEPHONE: REPRESENTING: CA4u WI nrsN,lnP (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: L°t I a AGENDA ITEM NO. S . . . . . . . . . . . . . . . . . . . . . . . . . NAME: (please print) HOME ADDRESS: �3a-�� r`tCR�v�-Q-C-o ✓'� (number/street) (city/zip code) G TELEPHONE: REPRESENTING: (self/name of organization) U '� REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: C tC (number/street) (city/zip code) TELEPHONE: i REPRESENTING: C (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES.DATE: 7 —Z /q— 9 VQ AGENDA ITEM NO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NAME: (please print) A \/ 73- - Co 9 � HOME ADDRESS: (number/street) (city/zip code TELEPHONE: �IC� REPRESENTING: /-t-y�• �' '^�--- - ASSoc. o� (J��-�,k Coy-.n (sel name of organization) 'J / REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: 7 ' 2y AGENDA ITEM NO. # S NAME: (please print) �/ r e u HOME ADDRESS: I r33I 6" " G. I( eV (numbedstreet) IIJS f 11n I CK � 2-7 F0 (city/zi/p/co`de) p TELEPHONE: (-J�7 J 0 3 2 REPRESENTING: (self/n nie o organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: �/ �• AGENDA ITEM NO. NAME: (please print) �7 HOME ADDRESS: i�Ai.,?Y: (number/street) 7�4 �� (city/zip de) TELEPHONE: REPRESENTING: (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAYBE LIMITED TO FIVE MINUTES. DATE: AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: (number/street) i ^ j (city/zip code) TELEPHONE: ` E. REPRESENTING (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. ��(J DATE: ° AGENDA ITEM NO. . . . . ./p.�{7. . . . . . / . .'7.�.�. . . . ). . . . . . . . NAME: (please print) V iA HOME ADDRESS: 1AID ` / I✓�C���K (number/street) (city/zip code) TELEPHONE: l / — t7 /� —(-0 g, REPRESENTING: (self/name of organization) Wadon\datai Wp.dta`adminSSTORMS\Request to Speak.dx REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. DATE: ! - Z /� - �/d AGENDA ITEM NO. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NAME: (please print) .Bo ,4 Z- o c "t-</Z .e r HOME ADDRESS: / 3 S 6-1 /sir Z -4 (number/street) (ti EJ'T�TRi.f T�,f C4 91 E��' (city/zip code) TELEPHONE: 7il - 9j 5 - REPRESENTING: FiVGC (-' iy.'�.O.+iCEM Eti1 (self/name of organization) REQUEST TO ADDRESS THE BOARD OF DIRECTORS ALL PERSONS WISHING TO ADDRESS THE BOARD ON SPECIFIC AGENDA ITEMS OR MATTERS OF GENERAL INTEREST SHOULD COMPLETE AND SUBMIT THIS FORM TO THE BOARD SECRETARY PRIOR TO COMMENCEMENT OF THE BOARD MEETING. AS DETERMINED BY THE CHAIRMAN, SPEAKERS MAY BE DEFERRED UNTIL THE SPECIFIC ITEM IS TAKEN FOR DISCUSSION. REMARKS MAY BE LIMITED TO FIVE MINUTES. t�� DATE: 2 y AGENDA ITEM NO. f Y-✓�-5 NAME: (please print) , �"� rl ' �o y_- FJdQ ADDRESS: O JOCJ Mac A — (number/street) (City/zip code) TELEPHONE: �I REPRESENTING: �'�IAJ9Mf�s /�+cP" (self/name of organization) Nadon\datal Wp.dta'admintBS\FORMS%Requeat to Speak.doo F SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT JULY 29. 1998 BOARD MEETING NAME ORGANIZATION/FIRM leaseprint) leaseprint) �R Q41 Nfcl� 1� ,o 4 iwJ"' Ie 1411\�-R-li �(� fl l S fizym. �f to c� 1Z no�.�o�cl vw SS S q C. I ca, ATI�g6 Bo Icy �pl>spcEc �V f c - Z/ © wi✓P /3ev CG U `'�tia GX LA ¢,v� CWPI6 Q 04,V�- Ji oIDCSC r h/6�3" v V ��R n/c Ems' O c�4✓t/G Tf1n /T/j Gt/lcS �. ✓. S' s✓Pam( SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT JULY 29. 1998 BOARD MEETING NAME ORGANIZATIONIFIRM leaseprint) leaseprint) AQadlif c A1C wK IS CAQ (��NrEQ U UneS a. Ar &,t 4viAL-u_ Trjur ,zAeK OCIxl Carl' Jr sty LY LrLbf IZi DVI ,sieve_ G�GQw� S� 1 tf EcPw4� �o c - cl " /1 OZUsze�i �✓�arff�--c A s r' E cc RAPfaz i !v E u6 uct�i u et[f C eTG �✓gc J` SLe� � � GwA/IzK SUN-29-9e MDR 10 :23 AM URBHN. WATER. INC. 949.760 6073 P.01 2/6 G�yy FAX COVER BREET URBAN WATER INSTITUTE, INC. NEWPORT BEACH, CA 92660 (949) 760-6071 FZ (949) 760-6073 DATE: June 25, 1998 TO: Penny Kyle Clerk of the Board. County Sanitation Dist. Orange Co. 714-962-0356 FROM: Urban Water Institute Workshop & Membership Services Department SUB: Annual Conference Invitation Announcements to Board of Directors & Staff. NSC: Clerk of the board: Please add this information to your monthly board meeting agenda for your Directors to consider attending the Urban Water Instituters Fifth Annual Southern California Urban Water Conference, August 27- 28, 1999. Accompanying this cover sheet is a current conference brochure detailing subject matter, date, location, registration fee. The conference will provide continental breakfast and lunch, which is included in the total price. If you have any further questions. Please call Matt Clark at (949) 760-6071. Thank you, for your consideration. JUN-29-98 MON 10 :23 AM URBBN. WRTGR. INC. 909-760 6073 . 02 AnnualThe Fifth Southern California Urban Water • • URBAN WATER INSTITUTE ABOUT THE PROGRAM BOARD OF DIRECTORS sc• � The-two-day Southern California Urban Water Conference again focuses on Sacramento-San Joaquin River Delta issues and on �fM.•°ut�G=v• California's plan for Colorado River appropriations as the major _c•_ sources of Southern California's water supply. w.m a..• r m BAY/DELTA PROGRESS Day One of this year's Conference will be the first of a two- �r...:`•o�,,, part effort by the Urban Water Institute to bring together all of the contesting interests in the CAI/FED Bay-Delta process: agriculture, urban and environmental. We will hear for the first time at the v.e.,.oa•�.u..°..°,�_ August 1999 meeting from the agWrban negotiators. They will dis- cuss issues effecting areas of origin,Sacramentc-San Joaquin Valley so.•,s.c..^'s agriculture and water quality and reliability for urban California. o�•a And,we will review the all important need for assurances that water rs^°°,,,";;('a•e„v.•,,,a:,. resource and environmental needs will progress together. The Insti- ,.,.•,�, Lute proposes to present part two of the inside Bay-Delta issues from the environmental community perspective at our Spring Conference w in March 1999. Look for the announcement early in 1999. ��s` r•� THE COLORADO RIVER I�•w°S°w.,..wu,., a.•..ere - Day Two will review the contentious issues behind W.-°•>` Californias effort to develop a so-called 4.4(million acre feet)plan to live within the stat&a water allocation under the Colorado.River air�..�•Y.'... compact. We will hear about the progress, to bring to fruition the proposed Imperial Irrigation District transfer of conserved ag water to the San Diego County Water Authority and the negotiations be- tween the Metropolitan Water District and San Diego to use the Met's Colorado River Aqueduct for its transport. Other issues on the program for discussion include progress in resolving indian rights �R••,,,,,, and the status of environmental issues, including the proposal to drain Lake Powell. .t�y�.�.e. �.o•�. ABOUT THE LOCATION The Annual Southern California Urban Water Conference will iwrw be held this year in Downtown San Diego's Four Diamond Wyndham «„•, «;• Emerald Plaza Hotel. The hotel offers a fitness club and outdoor •�".�•••- heated swimming pool. It is located within walking distance to San +••"•"^^-^' Diego Be Horton Plaza shopping, P D ase°Pe'::c e°m^w•.., a Y�. user, the as am Quarter, Seaport Village, art and maritime museums, numerous fast class reamu- °"..L,:a�,w,w.r.w•. rants, the trolley to Tijuana and the Santa Pe DepoUAmtreck Sta- tion. Within 10 minutes drive are the San Diego Zoo, San Diego Airport,Sea World,Mission Bay and Coronado& Balboa Golf Courses. AUGUST 27.28, 1998 • SAN DIEGO, CALIFORNIA WYNDHAM EMERALD PLAZA HOTEL 400 WEST BROADWAY, SAN DIEGO, CALIFORNIA 92101 '•- =a^d-�o•••ev-«• PHONE 6191239-4500 • FAX: 619239-4527 SUN-29-90 MON 10,24 AM URDAN.MATER. INC. 949F760 6073 P.03 1 Fifth Annual Southern California Urban Water :Conference AUGUST.V4-9, 1998 WYNDHAM EMERALD PLAZA HOTEL SAN DIEGOI-tALIFORNIA P R E L I M I N A 'it' Y P R O G R A M DAY ONE a THURSDAY,AUGUST 27 7ADPN. 110A.M. 7:30AM. SATISFYING THE URBAN WATER NEEDS IID/SAN DIEGO COUNTY WATER AUTHORITY TRANSFER WHAT ARE THE NEXT STEPS? REGISTRATION AND CONTINENTAL BREAKFAST Pod-Wate,q-HtF_eada Delta'&;pwoo -- them0omhne;.valarVaadwe;Oesereaearymaw- Pavd-Q.-a-tiae;Jeoiw NEW Rddhde Open some egdavlwoawea0dt0wa. CalaeaduRiver SmIdofc"mie; state Watwffeememe Coatml Bead &00 A.M. 3:00 PN. 12RONOON DELTA-VIDEO-EXHImITAREA WIPAPPINGR LINNUMTSTHEROLEOFTNE LOCAL WATERAGENCIES TOWARD GAINING A LUNCHBRFAK 9O0 AN OELTA'FIX'Y - 1:00 P.M. KEVNOTE SPEAKERNAINTHE 390 P.M. CAl1FORNVv IN THE 21A CENTURY THE LAWLUNCHEON SPEAKER. ADIOURNTOREfEpRONp,NE11HINTf THE IT O OF UFUHF RIVER: CdJomfa BuaioeM•Politiad lAader � HAS RONIIVED ITS TURRET Roaptio,weawrodby 9:30 AAL mass&&Company,swaiWe 200p.M. RAY-0ELTA-THE REAL ISSUES BEHIND CAUFED THE SALTON SEA/U.S.FISH AND WILDLIFE ROLE Pres '0.1i nandbota ILA DAY TWO-HNDAY.AUGUST 28 230 PM Bay-DdtaeadUavvntentious u . 7'30AM. INTERSTATE BANXING AND TRANSFERS Ammler-Ovuviewofeh¢CAI/PBD REMMTION'NBt CONTINEMALBREAKFAST EUVIUS a mm State dAdmma I&MANI. 8eldbim Open .' Ewlhem Nevada WaWAth nt7 AM&NI. im PA. BREAK•EXMBIfS 11d10AM COLOMDO 110S RAFIOLG VIDEO• NVIIRROON OENNTAL ISSUES ON THE COLVER IS THERE AN AGRICULTURE- 8dubit Aaee Let's DeemI W P.4:The Oat%respected MRANWATERCONSENSUSF &pp A.M. SmetarBanyCoNwatraRmd Pearl - The &FJmbm aeaatie4ea pmasr; KEYNOTE SPEAKER- A.00 P.M. tmMaDe and beae6te from each d the Oren CAU WATERBANKINGINVRKETINGONTHE pRDdtwnativeplam;TbeNwOvn4dUomiavivw; COLORADO RIVER ADIOURNTORECEPTION Idaaaleia Cmmtlo deo Wve mttwm. 12W NOON ROAM. DOORPRIZE DRAWING IIRLCH THE UIIBOM8111APIAN DAY THREE-SATURDAY,AUGUST 29 lam P.M. IMAM RM AM. BRWNGTON LEADERSHIP AWARD BREAK-EXHIMS BOARD OF DIRECTORS MEETING-BREAK FAST 1D0 P.M. 1030 AM. THE METISAN DIEGOCOUNTY WATER AR Member Wdmme aiW ILSW CAN WEON SPEEDER- AUTNORITYAGREEMEM 11I.W&K CAN ER FOP INEDELTA NEXTGO ACTIVE LEADERSHIP NIOMTNF NEILTGOVERNDRF ADJOURN . A second brochure will be mailed with Final Program and Speakers ` JUN-29-90 MON 10:25 AM URHRN. WATER. INC. 949176. 6073 P. 04 +wn IY WWI �, t 'N2 '� : tr.ri Y>•4iteM� reI r x Program and badges nor on and tithe °vo e¢d fko Institute reswea the mamalsR�k e'Ia'OAv^wd]be avail- .rigLtto cancel any Program,maabsbhte 4 {. able at 7:a0 in N O ADgusA 27' °,,,..d epeakera and uwarnes no re- Reglstration sad Fr dayA yrto reg strx- epom0dhty for personal expenses. haute one3 �t�6,1e�e)saodmust CATION AND LODGING Information be ettomPg3' n pa kam feYiT' The site of the Conference is the order. v WyndhemEmer2YdPlara11ot¢1.40DWeet EARLY REGISTRATION REGIS7RAl101J }Tfr1 +A.T10N Broadway, So-Diego CA 92101. (AAA AD registrations should be made in Pro- k9 $e'enmirmedin Four Diamond rating) A block arm = * ¢ TribecnrraervedfmtheCouference(plas advancebyeompletingtheformbdowmd writing,7fc of re®`ved by three days befs. and after the Ceofer- mmTmg it with your check (payable to August 21, pl i 604071 to sacs datea)ettheConfinencemmof$12S Urban Water Institute)to the Urban We, v 4re_'...,tr f'e�i L•-: aialle and$146 double orcupancy.,plus ter port Bea 2 Dow 2600. Registration ation •'. ....fifetTifS ll. - py[end perking charge.A charge of 20 ita Newport two-day CA 926re ois$36t fa EEE INFORMdTI,Q 000 . wattle edd¢dChadrirdpend under werobthetwadoythera.Begie$ations r' 3tTrTfldE)egifl0atia0 double ipeut withearets ut Aermay fee lat 6egUtfit)Qg(g� merobery$40u[orothera.lteglatraUons packets, hoodoo ;es,'continedtel char¢ a roam with parents at A. addi- recelvedbydujyalwRlrereiveedis bsaekPoet,luA .11reaks fotceeh ti0°°I charge. To raeelvw these rotes oountof$60forthe[tiDConferemaeor day,plus the vu• a ions hot-1 Sr t- + mxr ire - $g6 for one trations w@ be � iec - aerved directly firth the hotel by My day. Reg)s eomAbyp•Com�F tgeiuritiee, - - mm accepted only when accompanied by a of New B` - ��9�`� attend 81.199K f:eit en identify yo ipO for here check,money order,government"to P°t'i edck7 �� Urban-°.9tldldn ut fitud, Con fi re,the g m- luncheons forges aebarll day. Urban We p .wctatp fanfare . pony purchase order. No ragsetraHnn rely t"' ARerJuly3l,ruomscnubereservedona will be held without payment of Put- CANCELL(1710N r space and rats available basis.Remem re - cla seotder.Cdkeardeaotaosepted ,Ceeeeua 'yypytf6°;t'eceided in tier, this is the height of the nature, (epplieadea pending). writing 1V�+ 3t(F;ek4¢�ermpted•et vamtian.eeason. ON-SfTE REGISTRATION 949R60-6g73fs.g aYfees will be re• fumed,lees$' yy apva cbacge. . CONFERENCE'INFORMA710N Oa Wedaevday,Augwtz6,19se.from Na mmtide pS; 68er Aagt' t URBAN WATER MTTTUTF„INC. 5 p.m m 7Ism.pro-enrolled participants 81.SubaRtitte$,�;elcr le,ur 'er- may check mat the registration desk to sacs materiel (d-e to gdedintievuf 3Civielsae,Sfe 100,Newpod8eerh,CA92660 pick up registreti°n packets.with come . 'ra(nndeftarthUCaD('�q ;ttlp:s'howswill Telepbaae 96917606071 Fae 94Ar7 M73 x17 ------------------------------------------ REGISTRATION FORM ❑ YES. Register the following person for the 5th Annual Southern California Urban Water Conference. August 27-28, 1998, San Diego, California ❑ Conference Registration: $350.00 for members; : $400.00 for others ❑ Registration for one day only: $175.00 for members; 5200.00 for others Check date for one-day only registration ❑ August 271h,1998 ❑ August 28th, 1998 ❑ Early registration (July 31) discounts: Two days, $50.00; One day, $25.00 0 Spouse luncheon $35 ❑ August 27th, 1998 O August 28th, 1998 Spouse name(for name badge) Check enclosed $ or P.O.# Amount Name: - Title Agency/Firm: Telephone( ) Address: . . Fax Number( ) Cite State: Zip Code: Cl I plan to stay at the Wyndham Hotel the following days: Use a separate photocopy for each additional registration. �fAPit.�ouwill6eSEunnin � P ----- F., Top Qualify t ULF Toilefs m To qualify you must live in a city that is pan of the Orange August 1 & 2, 1998 County Sanitation District's(OCSD)service area.See the list of member cities below. 9 a.m. - 2 p.m. ® Come to the Orange County Sanitation District in Fountain Valley on August 1 and 2 from 9 a.m.-2 p.m. O Bring your current water bill or current ID for address verification.Pay$20 for your new ULF toilet and was ring, aoe plus a refundable$15 deposit for your old toilet($35 total). ar' 0 Return your old toilet for recycling from 9 a.m,to 2 p.m. on August 15 or 16 and get your$15 deposit back. usr wm swmm arna mcsDl tow m ten..,rwmx vrv.a arm OCSD Service Area Cities Check Your Anaheim,Brea,Buena Park,Costa Mesa,Cypress, Rough-in Distance Fountain Valley,Fullerton,Garden Grove, Iftbediovae rmnr inn cros,om,00„wredW Huntington Beach,Irvine,la Habra,La Palma, d wwi:mnubnIu tam I.I Los Alamitos,MidwayCity,Newport - Ibr l„uel alBu nunr it ry, ewW n.d" .,ondand 12 Orange,Placentia,Santa Ana,Seal Beach, nadaslandxN lr Stanton,Tustin,Villa Park,and Yorba Linda rougbtn tuna. if ^^^•��'^ w•r 11's ten lben II VX" MIN„ For More Information Call wuwninroliaur - (800) 424 -ULFT Is 5 5 of a mugs 1$2 'h%ongulalnnJ lO'mrcL�kfml{20 mnrc. 1998-99 COMMITTEE/BOARDOALENDAR JULY '98 AUGUST '98 SEPTEMBER '98 S M T W T F S S M T W T F S S M T W i T F S 2 3 4 1 1 M 3 4 5 5 6 7 9 10 11 2 3 4 5 7 8 6 7 8 = 10 11 12 12 13 14 16 17 18 9 10 11 12 13 14 15 13 14 15 16 17 18 19 19 20 21 22 23 24 25 16 17 18 19 20 21 22 20 21 22 24 25 26 28 27 28 29 30 31 23 24 25 - 98_ 27 2B 29 27 28 29 30 30 31 OCTOBER '98 NOVEMBER '98 DECEMBER '98 S M T W T F S S M T W T Fig S M T W T F S 1 2 3 112 3 5 617 1 2 3 4 5 4 5 6 8 9 111 8 9 10 11 12 13 14 6 7 8 10 11 12 11 12 13 15 /6 17 15 18 17 19 20 21 13 14 15 17 16 19 18 19 20 21 22 23 24 22 23 24 25 26 27 28 20 21 22 23 24 25 28 25 26 27 29 29 30 31 29 30 27 28 29 30 31 JANUARY '99 FEBRUARY '99 MARCH '99 S M T W1 F S S M T W T F S S M T W T F S 1 2 1 2 4 5 6 1 2 4 5 6 3 4 5 7 8 9 7 8 9 11 12 13 7 8 9 11 12 13 10 11 12 13 14 15 16 14 15 16 17 18 19 20 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 21 22 23 24 25 28 27 24 25 28 28 29 30 28 28 29 30 31 31 APRIL '99 I MAY '99 JUNE '99 S M T W T F 5 I S M T I W I T F S S M T W T F S 1 2 3 1 1 3 4 5 4 5 6 8 9 10 2 3 !225 J2728 8 8 718 10 11 12 11 12 13 15 16 17 9 10 15 13 14 15 16 17 18 19 18 19 20 21 22 23 24 16 17 19 22 20 21 22 24 25 26 25 26 27 29 30 23 24 28 29 27 28 29 30 30 31 Boom Meetings(AqualBlue) OMTS Meetings(Red) PDC Meetings(Yellow) FAHR Meetings(Purple) ORANGE COUNTY SANITATION DISTRICT July 23, 1998 phone: 17141952-2411 To the Chair and Members of the Board of Directors :n.mnp.aan..: P.O. B.wi y 27 cA Subject, Board Letter Poun 92 Valley,CA 82]28-812] itrieC i Avenue The following are items that you may find interesting. If you need additional tOWmatle Avenue 9 Y Y 9 Fountain valley,cn information on any of the items, please call me. 92708-7018 County Environmental Officers Alm to Curb Use of"Sludge" M.mar On June 24, a Wall Street Journal article reported that 52 of California's 58 county Agencies environmental officers are urging Governor Wilson to stop the spreading of binsolids • until scientists can be certain the practice poses no risk to public health. The county titres officers have asked the governor to designate a lead agency to deal with the concerns over biosolids land application since they are not satisfied that current Anaheim standards set b EPA are sufficient to protect the health of both the public and the area Y P auene Perk agricultural economy. Fortunately, state officials believe that biosolids application is Clore.. being adequately regulated through regional water boards and local inspections. An Poll"tat" erton additional degree of balance was resented in the article through the following quote Fullerton 9 P 9 9 Garden Grovs provided by Michael Moore, the District's acting director of technical services. "We Huntington Beach are very much of the belief that the material can be managed property and it's a good Irvine Le Habra use of the organics to put them on agricultural land." La Pelme Loe Alamitos Newport Beach orange Kern County Biosolids Ordinance Placentia Santa Ana For the past several months, the Kam Count biosolids ordinance process has been Seel Beach P Y Stanton progressing in an acceptable fashion, with its adoption by the Board of Supervisors rush" scheduled for this fall. Unexpectedly, on July 7 the Board of Supervisors requested mroe°de Kam County staff to draft an ordinance to ban Class B biosolids in response to "road damage on county farm roads" Blake Anderson, along with management staff from County or orange the City of Los Angeles and the County Sanitation Districts of Los Angeles met with the Director of the Kern Resources Management Agency to discuss issues related to s.nittry Districts a Class B ban. They were pleased to team that Kam County staff is supportive of coat;Mesa Class B biosolids land application and will attempt to inform the supervisors of the Midway City downside of a Class B ban, and of the progress being made in the biosolids wear Distrr.t. ordinance development process. Kam County itself has a history of applying biosolids for many decades and currently has over a dozen public wastewater treatment plants Irvine Ranch located in the County that also apply biosolids in Kam County that would be adversely affected by a ban. As directed, Kam County staff will make its report to the Board of Supervisors on July 28. Biosolids management contractors, fanners using Class B biosolids, and US EPA's Dr. Alan Rubin, author of the federal biosolids regulations, will testify at the meeting. District's staff will monitor and report on the meeting. `To Protect the Public Health and the Environment through Excellence in Wastewater Systems" Members of the Board Page 2 July 23, 1998 Innovation 2000 Conference in Cambridge, England I attended WEF's Innovation 2000 Conference the first week of July, and Billy Turner, president of WEF, was the keynote speaker. I have attached an excerpt from his speech that you may find interesting. FY 1998-99 Committee/Board Calendar For planning purposes, attached is a calendar that shows the normal meeting dates for the working committees and the Board meeting. In the event a meeting date is changed or cancelled, you will be notified. Plant 2 Office Hours On Thursdays each week, I will be spending two to three hours at Plant 2 in an office in the Operations Center. This will give me a chance to interact more easily with staff at that location. WERF Thermophilic Digester Pilot Study Demonstration Proieet We have entered into an agreement with East Bay Municipal Utility District (EBMUD) to conduct a demonstration project of thermophilic digestion to achieve Class A standard for biosolids. Thernophilic digestion is the process of operating digesters at a higher temperature range (120 to 135° F) compared to the traditional heating range of 85 to 1000 F (mesophilic digestion). At the higher temperatures, different bacteria are present to stabilize the sludge. The purpose of the project is to evaluate the stability and the performance of the thermophilic digesters as well as evaluating the quality of the Class A biosolids that are produced. By conducting the full-scale demonstration at OCSD, we will be able to test market the produce for end-user acceptance. The scope calls for EMBUD to conduct pilot-scale testing. SCAP Newsletter The District is a member of the Southern California Association of POTWs (SCAP). A copy of its June 1998 newsletter, SCAP WRAP, is attached for your information. OCCOGISCAOMD Leadership Cities and DOE Clean Cities Workshop On July 1, a workshop was held at Tustin City Hall to discuss Alternative Fuel and Electric Technologies for Cities. Ed Hodges was a panelist in a session on Creativity in Program Development wherein he discussed public/private partnerships. Members of the Board Page 3 July 23, 1998 OCSD News Release Michelle Tuchman, Director of Communications, sent out the attached press release on the election of Burnie Dunlap as Chairman of the District. As of this writing, we have not seen or heard whether it was published or aired. Research Grant Approved for Microfiltration. Reverse Osmosis and Ultraviolet Disinfection Studies Attached is a July 1, 1998 memorandum from Tom Dawes, Project Manager for the GWR System project, announcing the receipt of a $717,000 grant to continue research that may lead to lower capital requirements for the GWR system. IRWD Files Lawsuit Against OCWD Attached is a press release dated June 19, 1998 from IRWD describing the filing of a lawsuit against OCWD by imposing a moratorium on annexations to OCWD. Electric Vehicle Infrastructure Project The District has become a member of the Orange County Electric Vehicle Infrastructure Project. As part of this agreement, the District has agreed to provide two parking spaces, located in the Administrative Building parking lot, dedicated to charging electric vehicles. The total cost of this project is $19,082.49. Of this, the Mobile Source Review Committee of the South Coast Air Quality District will pay $11,982.00 and the District will pay the remaining $7,100.49. The EV charging station will be installed within the next few weeks and should be available for us by the end of August 1998. Spill on PCH. Newport Bev Approximately 100,000 gallons of sewage flowed into the street on Tuesday, July 21 at the southwest comer of Pacific Coast Highway and Newport Blvd. when construction crews working to relocate gas pipes hit one of our 24-inch force mains. Because approximately 50,000 gallons flowed through the storm drains into Newport Bay, the Orange County Health Care Agency dosed three areas -the Main Lido Channel, the West End Channel, and the West Lido Channel -to swimmers. The ocean waters were not impacted and the beaches remained open. e Members of the Board Page 4 July 23, 1998 According to the Gas Company, whose crews were drilling in the area, one of their contractors had identified our 24-inch line as 'abandoned.' Unfortunately, this was incorrect information. By 9:50 a.m., approximately one hour after the incident occurred, our crews were able to divert the wastewater traveling through the effected line. Other pressurized piping in that area allowed the wastewater to be diverted to another force main. We are capturing all of our costs for this event and will be prepared to bill the Gas Company, according to Ed Hodges, Director of General Services Administration. Our crews did a good job, working quickly and efficiently in conjunction with the City of Newport Beach, the Newport Beach Fire Department, and the Costa Mesa Sanitary District. The incident was reported in the Times, the Register, KTIA and OCN. Results of Plannine Advisory Committee 'Member Satisfaction' Survey Members of the Planning Advisory Committee (PAC) were complimentary and gave high ratings to staff, consultants and the overall method we used to include public participation in our strategic planning efforts. Their comments were received during the final PAC meeting, which was held July 16. The detailed results of the PAC Members Satisfaction Survey are included in the attachments. Preparation for July 29 Public Hearino We have received approximately 400 responses to the June mailing of the proposed rate structure "Notification of Public Hearing." A few calls are still being received; all inquiries requiring a response have been answered. While it is impossible to know at this time how many business owners and multifamily residential property owners will attend the July 29 public hearing, we are making the following arrangements: — We will have a uniformed guard at the guard booth to direct guests to the Administration Building. Employees will be available to help direct traffic. Parking will be in the Administration front lot, along the service road and, if necessary, in the Administration back parking lot. — The Board Room will be set up as it is currently to accommodate the Directors at tables. We will add chairs at the back and sides of the room to accommodate as many guests as possible. The occupancy limit in the Board Room is 99. ` hs. Members of the Board Page 5 July 23, 1998 — An additional 50 chairs will beset up in the lobby, which is equipped with speakers from the Board Room sound system. The speakers will enable anyone sitting in the lobby to hear everything that is discussed in the Board Room. In addition we will prop open the doors into the Board Room. OCSD at the Fair This year visitors to our booth at the Orange County Fair are more aware of our agency, have more positive comments about our agency, and are more aware and supportive of water reclamation. Many visitors say that either they or someone they know have toured the Fountain Valley plant and were impressed with our operations. By the way, our booth won third place in the Best of Show category. If you would like tickets to Fair, which closes Sunday, July 26, please call Michelle Tuchman, Director of Communications. Great Toilet Exchange The District will be the site of a Great Toilet Exchange on Saturday and Sunday, Aug. 1 and 2. We are working with the Municipal Water District and CTSI, the toilet manufacturers, on this event. The net cost of an ultra low-flush unit will be $20 to residents in our service area. Participation in this program is part of our water conservation effort. Attached is a postcard advertising the Great Toilet Exchange. We will also be running an ad in the Register. If you would like additional postcards for your city offices, please contact Michelle Tuchman at 714/593-7120. Visit by the Grand Jury The Grand Jury will visit the District on Tuesday, July 28. Former director, Sheldon Singer, is a member of this panel. Articles of Interest Attached are several interesting articles that you may not have seen. If you would like additional nformation on any of the above items, please call me. Donald F. McIntyre General Manager Excerpt from Billy Turner's Welcoming Remarks at INNOVATION 2000 Conference in Cambridge, England, July 7, 1998 FIRSTLY, I NOTED HOW SIMILAR TECHNICAL INTERESTS ARE ON BOTH SIDES OF THE ATLANTIC—WE ARE ALL INTERESTED IN BETTER WAYS TO MANAGEMENT BIOSOLIDS, CONTROL ODORS AND DISINFECT EFFLUENT. MANY OF US FACE, OR WILL FACE, MORE STRINGENT NUTRIENT STANDARDS AND WANT TO HEAR HOW BIOLOGICAL, MEMBRANE, OR FILTRATION SYSTEMS CAN ENHANCE OR REPLACE TRADITIONAL CHEMICAL SYSTEMS IN HELPING US ACHIEVE THESE. OTHERS ARE LOOKING TO EXPAND OR UPGRADE TREATMENT IN RURAL AREAS AND ARE CONSIDERING NATURAL TREATMENT SYSTEMS. INTEREST IN WASTEWATER RECLAMATION AND REUSE IS EXPANDING WORLDWIDE AND, I UNDERSTAND FROM PETER, HAS EVEN REACHED THE U.K., A COUNTRY WORLD-RENOWNED FOR ITS RAINFALL, TO THE ENVY OF MY COLLEAGUES FROM NORTH AMERICAN STATES, SUCH AS CALIFORNIA AND ARIZONA. I WAS ALSO STRUCK BY THE EXAMPLES OF TECHNOLOGY EXCHANGE THAT ARE INCLUDED ON THE PROGRAM. I NOTED PAPERS PRESENTING U.S. CASE STUDIES OF TECHNOLOGIES DEVELOPED IN EUROPE. FOR EXAMPLE, A PAPER ON TWO- PHASE ANAEROBIC DIGESTION IN EGG-SHAPED DIGESTERS PRESENTS WHAT IS TERMED THE BALTIMORE APPROACH' TO USING A TECHNOLOGY DEVELOPED IN GERMANY. EVEN CLOSER TO MY OWN HEART IS A PRESENTATION ON THE APPLICATION OF ENHANCED VORTEX SEPARATORS, A TECHNOLOGY ORIGINALLY DEVELOPED IN THE U.K., WITH OTHER TREATMENT COMPONENTS TO CONTROL CONTAMINATION FROM COMBINED SEWER OVERFLOWS. THE PAPER DESCRIBES -1- THE UPTOWN PARK ADVANCED DEMONSTRATION FACILITY IN COLUMBUS, GEORGIA, A CITY WHERE, WHEN I AM NOT PROVIDING VOLUNTEER SERVICE TO THE WATER ENVIRONMENT FEDERATION, I LIVE AND SERVE AS PRESIDENT OF THE WATER AND WASTEWATER UTILITY AT THE COLUMBUS WATER WORKS. A FINAL GENERAL OBSERVATION IS HOW IT SEEMS THAT THESE TECHNICAL ISSUES HAVE SIMILAR 'CATALYSTS' ON BOTH SIDES OF THE ATLANTIC. THESE INCLUDE PUBLIC AND POLITICAL DEMANDS FOR A SAFE AND CLEAN ENVIRONMENT AND PRESSURE FROM CUSTOMERS OR RATE PAYERS FOR LOWER COSTS AND MORE EFFICIENCY. FOR EXAMPLE, IN LOOKING AT THE BENEFICIAL REUSE OF BIOSOLIDS AND WASTEWATER, WE MUST CONSIDER NOT ONLY SOUND SCIENCE IN DETERMINING SAFE PRACTICES BUT ALSO PUBLIC PERCEPTION. WE MUST BE ABLE TO DEVELOP ENVIRONMENTALLY SOUND PRACTICES AND ALSO TO COMMUNICATE THEIR SAFETY TO POLITICIANS AND THE PUBLIC. AS WASTEWATER TREATMENT EXPANDS TO EMERGING COUNTRIES, THESE ISSUES ARE BECOMING WORLDWIDE CONCERNS. SIMILARLY, THE NEED FOR EFFICIENCY IS BECOMING A GLOBAL CONCERN WITHIN OUR INDUSTRY. WE ALL NEED TO BE ON THE LOOK OUT FOR INNOVATIONS, LARGE AND SMALL, THAT CAN REDUCE ENERGY, CHEMICALS, MANPOWER, OR OPERATION AND MAINTENANCE COSTS. WITH THAT AS GENERAL BACKGROUND, I WOULD LIKE TO SPEND A FEW MINUTES DISCUSSING THE SITUATION IN THE U.S. IN 1997, A MILESTONE IN U.S. WATER QUALITY PROTECTION WAS REACHED-THE 25TH ANNIVERSARY OF THE CLEAN WATER ACT, A PIECE OF LEGISLATION INTENDED TO ENSURE THAT THE SURFACE WATERS OF THE U.S. ARE RENDERED "FISHABLE AND SWIMMABLE." WITH THE -2- 25TH ANNIVERSARY OF THE CLEAN WATER ACT, THERE WAS IN FACT MUCH PROGRESS TO CELEBRATE. IN 1972, A RIVER IN OHIO, THE CUYAHOGA, WAS SO BADLY POLLUTED THAT IT BURST INTO FLAMES. THE POTOMAC RIVER, WHICH FLOWS THROUGH THE U.S. CAPITAL, WAS SO HEAVILY POLLUTED WITH SEWAGE, IT WAS UNSAFE FOR FISHING OR SWIMMING. SINCE THEN, THE NUMBER OF AMERICANS SERVED BY WASTEWATER TREATMENT FACILITIES HAS MORE THAN DOUBLED TO 173 MILLION PEOPLE, AND MANY PREVIOUSLY POLLUTED WATER BODIES HAVE BEEN RENDERED SAFE FOR RECREATIONAL USE. IN THE FIELD OF TECHNOLOGY INNOVATION, HOWEVER, TWO ASPECTS ARE WORTH NOTING. FIRSTLY, OBSERVERS WIDELY AGREED THAT BY THE LATE 19805,THE U.S. HAD FALLEN BEHIND MANY OTHER DEVELOPED COUNTRIES IN R&D INVESTMENT FOR WASTEWATER TREATMENT TECHNOLOGIES. AS A RESULT, THE U.S. WAS ADAPTING TECHNOLOGIES DEVELOPED IN OTHER COUNTRIES RATHER THAN DEVELOPING OUR OWN. A SUBSTANTIAL DECLINE IN THE FUNDING OF RESEARCH INTO WASTEWATER TECHNOLOGIES BY THE U.S. GOVERNMENT IS ONE REASON WEF FOUNDED THE WATER ENVIRONMENT RESEARCH FOUNDATION, OR WERF, IN 1989, TO ENHANCE "THE SCIENTIFIC AND TECHNICAL BODY OF KNOWLEDGE AND THE ADAPTATION OF RESEARCH AND DEVELOPMENT TO WATER QUALITY IMPROVEMENT." WERF HAS BEEN EXTRAORDINARILY SUCCESSFUL AND HAS LED $42.5 MILLION WORTH OF RESEARCH TO DATE. THIS FIGURE IS EVIDENCE OF HOW GREAT WAS THE NEED IN THE U.S. IN THIS AREA -3- ANOTHER FACTOR AFFECTING THE DEVELOPMENT AND USE OF INNOVATIVE TECHNOLOGIES IN THE U.S. IS CONCERN ABOUT USING UNDEMONSTRATED TECHNOLOGIES. BUYERS HAVE BEEN RELUCTANT TO PURCHASE, CONSULTING ENGINEERS TO RECOMMEND, AND REGULATORS TO ISSUE PERMITS FOR TECHNOLOGIES THAT ARE PROMISING BUT UNPROVEN. THIS CLIMATE HAS DISCOURAGED PRIVATE SECTOR FUNDING OF TECHNOLOGY DEVELOPMENT TO HELP ADDRESS THESE CONCERNS. THE U.S. ENVIRONMENTAL PROTECTION AGENCY HAS DEVELOPED A THIRD-PARTY ENVIRONMENTAL TECHNOLOGY VERIFICATION PROGRAM. THE PROGRAM IS STILL MODEST AND IS OPERATING IN A PILOT-PHASE ONLY. PILOT TESTING IS BEING CONDUCTED IN EIGHT TECHNOLOGY AREAS AND THE PROGRAM IS FUNDED AT A LEVEL OF JUST$10 MILLION PER YEAR. THIS IS, HOWEVER, AN IMPORTANT STEP IN THE RIGHT DIRECTION AND THREE PILOT PROGRAMS ARE VERIFYING TECHNOLOGIES OF INTEREST TO OUR INDUSTRY. FIRSTLY,ADVANCED ENVIRONMENTAL MONITORING SYSTEMS THAT WILL INCLUDE TESTING OF"REAL-TIME FIELD INSTRUMENTS FOR PATHOGENS AND ORGANICS IN SURFACE WATERS'; SECONDLY, URBAN WET WEATHER FLOW CONTROL SYSTEMS THAT WILL COVER TESTING OF"ADVANCED HIGH-RATE TREATMENT TECHNOLOGIES INCLUDING TESTING OF TECHNOLOGIES BASED ON SEDIMENTATION, MICRO-AND FINE-MESH SCREENING, BIOLOGICAL PROCESSES, AND DISINFECTION." AND FINALLY, SOURCE WATER PROTECTION TECHNOLOGIES INCLUDING DECENTRALIZED WASTEWATER TREATMENT SYSTEMS, ALTERNATIVE WASTEWATER COLLECTION SYSTEMS, AND AGRICULTURAL RUN-OFF MITIGATION. -4- THUS, SOME STEPS HAVE BEEN TAKEN IN THE U.S. TO FOSTER TECHNOLOGY DEVELOPMENT AND THE APPLICATION OF INNOVATIVE TECHNOLOGIES. FURTHERMORE, AS I HAVE ALREADY NOTED, CONSIDERABLE PROGRESS HAS BEEN MADE IN DECREASING POLLUTION FROM POINT SOURCES BY HARNESSING TREATMENT TECHNOLOGIES. MUCH OF THIS HAS BEEN ACHIEVED BY DECREASING POLLUTION FROM INDUSTRIAL DISCHARGES AND BY AN ENORMOUS INVESTMENT (ALMOST$100 BILLION SINCE 1972) IN ALMOST 14,000 MUNICIPAL WASTEWATER TREATMENT PLANTS. AS WE IN THE U.S. LOOK TOWARD THE YEAR 200 AND CONSIDER THE STATE OF OUR NATION'S ENVIRONMENT, HOWEVER, WE REALIZE THAT THIS IS NO TIME TO REST ON OUR LAURELS. IN FACT, ON THE ANNIVERSARY OF THE CLEAN WATER ACT,VICE PRESIDENT GORE INSTRUCTED THE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY AND THE SECRETARY OF THE DEPARTMENT OF AGRICULTURE TO DEVELOP AN ACTION PLAN TO MEET THE ORIGINAL GOALS OF THE CLEAN WATER ACT. IN FEBRUARY OF THIS YEAR, PRESIDENT CLINTON PRESENTED THE RESULTING CLEAN WATER ACTION PLAN. THIS PLAN NOTED THAT WHILE MUCH PROGRESS HAS BEEN MADE, THERE IS MUCH STILL TO BE DONE. OVER HALF OF THE 2000 WATERSHEDS IN THE U.S. STILL HAVE SERIOUS OR MODERATE WATER QUALITY PROBLEMS. I DONT THINK THAT ANYONE WILL BE SURPRISED TO HEAR WHAT WAS NAMED AS A MAJOR FACTOR IN THIS CONTINUED IMPAIRMENT-POLLUTED RUN-OFF,WITH AGRICULTURE IDENTIFIED AS THE MAJOR CONTRIBUTOR ACCORDING TO THE CLEAN WATER ACTION PLAN, -5- AGRICULTURE IS THE MOST EXTENSIVE SOURCE OF WATER POLLUTION IN THE U.S. IT IS ESTIMATED TO AFFECT 70% OF IMPAIRED RIVERS AND STREAMS AND ALMOST 50% (ON AN AREA BASIS) OF IMPAIRED LAKES. THE ACTION PLAN ENDORSES A WATERSHED APPROACH THAT WILL EMPHASIZE COOPERATION BETWEEN STATE, FEDERAL, AND LOCAL GOVERNMENTS AND WILL INVOLVE THE PRIVATE SECTOR AND THE GENERAL PUBLIC. THE PLAN INCLUDES 100 SPECIFIC ACTION ITEMS, INCLUDING ONE TO BETTER CHARACTERIZE THE CONDITION OF WATER RESOURCES. THE NEED FOR BETTER SURVEY METHODS, COMPUTER MODELS, AND SAMPLING AND REMOTE SENSING TECHNOLOGIES ARE NOTED. DETERMINING THE LOCATION AND RELATIVE CONTRIBUTION OF SOURCES OF NITROGEN AND PHOSPHORUS IS HIGHLIGHTED AS A GOAL WHAT IS NOTICEABLE ABOUT THE ACTION PLAN, HOWEVER, IS ITS EMPHASIS ON GETTING BETTER INFORMATION, EDUCATING THE PUBLIC AND OTHERS INVOLVED IN WATER QUALITY PROTECTION AND PREVENTING, RATHER THAN TREATING CONTAMINATION. THE USE OF ENVIRONMENTAL MANAGEMENT STANDARDS FOR AGRICULTURAL PRODUCTS AND OF GUIDANCE ON BEST MANAGEMENT PRACTICES FOR ANIMAL FEED OPERATIONS, ARE ELEMENTS OF THE ACTION PLAN TO REDUCE CONTAMINATION. THE U.S. SENATE HAS APPROPRIATED 80 PERCENT OF EPXS REQUEST FOR THE CLEAN WATER ACTION PLAN FUNDING, AND WEF SUPPORTS SIMILAR ACTION BY THE HOUSE AND SENATE FOR ALL ASPECTS OF THE PLAN. AS WE LOOK TOWARDS 2000 AND BEYOND,WASTEWATER MANAGERS, ADMINISTRATORS, AND ENGINEERS AROUND THE WORLD NEED TO SHARE NOT -6- JUST TECHNOLOGIES, BUT KNOWLEDGE, IN A WIDE VARIETY OF AREAS. FOR EXAMPLE, WE NEED TO EXCHANGE INFORMATION ON: • HOW CAN THE PUBLIC AND OTHER CONSTITUENCIES, SUCH AS FARMERS, BEST BE EDUCATED ABOUT THEIR ROLE IN WATER QUALITY PROTECTION? • WHAT CAN WE, AS MANAGERS, DO TO MOTIVATE AND INCREASE THE PRODUCTIVITY OF OUR WORK FORCE? • WHAT CONSTITUTES BEST MANAGEMENT AND PRACTICES FOR LAND APPLICATION OF BIOSOLIDS AND WHAT IS THE ROLE OF VOLUNTARY STANDARDS OF PRACTICE? -7- Trucks hauling tons of sewage sludge chew up Kern thoroughfares Pagel of 3 Trucks hauling tons of sewage sludge chew up Kern thoroughfares Filed:July 18, 1998 By STEVEN MAYER Californian staff writer e-mail:smayer@bakersfield.wm WASCO—More than 1 million tons of sewage sludge were trucked from Southern California cities to Kern County farms last year. At 20 tons per load, that's as many as 50,000 trucks a year travelling a network of two-lane county roads maintained by local tax dollars. That's a lot of sludge. That's a lot of trucks grinding up asphalt like jackboots on rice paper. The problem has become so bad that officials at the county Roads Department have said they can no longer maintain some stretches of rural byways. Barricades and "road closed" signs have blocked all but essential traffic on at least two rural roads, and officials warned this week that more are soon to follow. "Too much cock traffic has destroyed these roads," said county roads official Andy Richter. "We've identified about 20 roads that are being impacted." Gun Club Road west of Wasco, one of the affected rural arteries, has been reduced to deep potholes, small craters and wholesale swaths of chewed up asphalt. In classic bureaucratic understatement, orange-colored "rough road" signs still stand alongside the ruined country lane. Lost hills Road, north of the small farming community with the same name, is in similar shape,Richter said. And no plans are in the works to rebuild either one. "Just to reconstruct six miles of Gun Club Road would cost about $2 million," he said. "We only have $8.5 million in our maintenance budget for the whole year." Richter said many of the 3,300 miles of roads the county maintains are reaching a point in thew life cycle where http://www.bakersfield.com/bakri-1311320734.asp 7/23/98 Trucks hauling tons of sewage sludge chew up Kem thoroughfares Page 2 of 3 patching holes and performing routine maintenance is no longer cost-effective. These roads will require complete reconstruction, he said. But, as the transport and land application of municipal sewage sludge has intensified in Kern, so has the degradation of roads beneath the trucks carrying the mixture of processed human and industrial waste. As these and other roads are closed to through traffic, farmers, residents and school districts can be affected. "Ten children from five families are directly affected by these closures," said Edward M. Rucks, superintendent and principal of Semitropic School District. "We do not operate school buses on closed roads." Rucks contacted the county Roads Department in January and asked for immediate repair work to address the deterioration on Gun Club Road. Work was started, he said, but it was soon discontinued. "Obviously, parents and the district will have to make other arrangements," Rucks said. "I'd just hate to see it negatively impact farmers in the area." According to John Guerard, an agronomist with carrot producer William Bolthouse Farms, more road closures could hit fanners where it hurts most—in the pocketbook. "The ability of our harvest trucks and equipment to reach their destinations is very important," he said. "This could have a huge impact on us." If more roads are closed, reduced fuel efficiency and added labor costs have the potential to cut into the bottom line for farmers and processors, he said. Glenn Barnhill, special projects division chief at the county Planning Department, said one answer may be to charge a per-ton fee to sludge haulers to mitigate damage to county roads. Such a fee may eventually be included in the final draft of a county ordinance that proposes to govern the transportation and spreading of sludge in Kern County. Another set of public hearings to discuss the proposed ordinance is set for August, with the final draft to be sent to the Board of Supervisors for consideration this fall. http://www.bakersfield.comfbakri-1311320734.asp 7/23/98 Contact: Michelle Tuchman Director of Communications 714l962-2411, ext. 7120 FOR IMMEDIATE RELEASE Brea Councilman Elected Chairman of Orange County Sanitation District FOUNTAIN VALLEY, CA (July 2, 1998) - Brea Councilman Burnie Dunlap was elected chairman of the 25 member Board of Directors of the Orange County Sanitation District (OCSD) during a special meeting of the governing body last night. Chairman Dunlap is a seven-year member of the OCSD Board. He has served on numerous Board committees and is immediate past chair of the District's Planning, Design and Construction Committee. In a separate action, Vice Chairman Peer Swan was reelected to his position. Mr. Swan is a twelve-year member of the Board representing the Irvine Ranch Water District. Chairman Dunlap assumes office as the Sanitation District enters the final phase of its Strategic Plan, a 3-year effort that, when adopted next spring, will serve as the agency's guideline of operations through the year 2020. In addition, the Sanitation District is now a consolidated agency, by converting its 9 district, 29 member Joint Boards of Directors into a single 25 member Board thus, bringing a streamlined governance structure to wastewater management for the 44-yearold organization. - more - Councilman Dunlap Elected Sanitation District Chairman 2-2-2-2 "When the agency began operations in the early 1950s, it was organized into separate districts that followed established drainage patterns," explains Chairman Dunlap. 'This localized approach' to wastewater management provided services that corresponded with land uses and development patterns. However, these former rural areas have become urbanized and today wastewater management is more regional in nature and the Sanitation District's focus is more on joint-works facilities and regulatory issues." "With 600,000 more people expected to live in our service area by the year 2020, it is imperative that the District continues its tradition of planning for the future and now, perhaps for the first time in its history, consider issues that extend beyond our immediate service area." The Sanitation District serves 2.2 million people living in a 470-square- mile area of north and west Orange County. The Board of Directors comprises elected officials from the 21 cities and 3 special districts. "It is my distinct honor to have been elected Chairman of the Board of the Orange County Sanitation District," says Chairman Dunlap. "I look forward to working with my distinguished colleagues and to leading the agency in its efforts to complete a new Strategic Plan that will help us prepare for the new millenium." IVaaon%datallwp.tlmladminWgD1tuchmen%BDARDXDunlap e%cU dphair.doc SINf BY:OCWD ; 7- 1-86 ; 8:51AM ; O.C. WATER DISTRICT, 7149620956:# 1/ 1 & Groundwater Replenishment System Memorandum DATE: July 1, 1998 TO: Joint Groundwater Replenishment System Coopemlive Committee OCSD OCWD Director Creorge Brown Director Philip Anthony Director Norm Eeltenrode Director Tangdon Owen Director Peer Swan Director Iry Picklcr Don McIntyre,General Manager hill Mills,General Manager FROM: Thomas M. Dawes PAD Good news: On June 24'",the California Energy Commission gave final approval to our research grant for"Electrotechnology Applications for Potable Water Production and Protection of the Environment." This grant to OCWD/OCSD and partners MWD, Edison and Electric Power Research institute(EPRI)was the largest grant awarded at$2-9 million(with$717,000 to our project). Our funds will be for continued research on microfiltration,reverse osnusis and ultraviolet disinfection. This research my lead to lower capital requirements for the GWR System. The House version of the budget now includes$1,000,000 in EPA's budget fur our project while the Senate version includes$500,000. This is certainly good news for our Project. Apm,ffWxfar 0arg CmnWN 0u wd Ne G�Sm O6aim Next (7141378-3200 • fax M41 378-3373 - 10500 rai,Av ue • ramvinValley • CalifemM 97708 n-Le-Ytl tea:au Pn PAT MCGUIGAM 714 775 2000 P• 02 Inlne Rerrl,Walm Obatn. 1Seao Sand Citayon Avenue,Irvine,Gta'CTb22719 oA c� J FOR U4ML•OIATE RELEASE COYIACf:Marllye SmidJ Tara Finnigan(949)453.5500 Lute 19, 1998 IRWD Filet Lawsemt Against Groundwater Management Agency Irvine Ranch Water District(IRWD)filed a lawndt June 19 against the Oremgs•County Water District(OCWD)swig me groundmarerbasln lremagewent egerv-y:LL1rd oursde its legal authority by imposing a morait rlttm co annexatioro into OC9JD. Since 1984 OCWD has had a policy allowing amica ttion of any lung-term groundwnttt produunis within Orange County,provided that the territory is within the bomalaties of the Metropolitan W2e1 DiAtriet of Southern California. On May 20,that OCWD Dowd of Directors voted to impose a moratimium on brut i mnexamnns until their agency crawer a new water master plan that takes into accowu water supply and demand through etc year 2020.The OCWD Board dtto not have the legal power to impose a m0ra10riurn.The load also failed to give arty reasoning ft¢its dodsion,and It did not give notice or hold a public hearing to am public conunrnt. According to IRWD Board president Darryl Miller,IRWD believes toaster phaming .s a water management issue that should not be linked to emn"alion issues. Miller mplai red. 'We too believe in forccastiug studying, modeling and plarrling ard realise that efforts an essootiall to the water supply business.But OCWD drrady his a master plan in place and anther nutsim planning effort will not genetate information we don't already know. Won wodmd with OCWD for ycArs and their planning mahods ate used as models by odrer agarJse thlouglrout the country." •more- JUN-22-90 03:39 PM PAT McGUIGAN 714 775 2040 y P:03 JRWD mgasted an annexation in 1996. About balf of IRWD's 72=acte suvice tar is greatly within OCwlya sarvtcs atea 1RWD includes developing am such nN FOath.Il Rench.Patrols Hills and Newport Coast that are now ready to be annexed into OCW17. The territory served by IRWD was aeuve in farming OCWD in 1933 to Correa exisurg water supply problems. bOar said."Nothing has damaged.It's OCWD's job to bring in additional water to add to the beset W that Were a emugb water far everyone.R's always been understood that additimW am=are annexed na,they are drveloped and them it a need to supply water." 'Tm dsappointcd that OCWD's Board has failed to make any progress with mspeot t3 aennraatans for mom than two years.IRWD haseodwed numerous committee meetings, smdtes and other delays because we wamed:o work this out amiably:M1illm said. "Nast recently,we patiently waited through a I50.dey,temporary maraucium throMb wbkboo Progress was made.This new one is supposed to and in November,but could gat 1m hulefmurly. ICE not right. It's not legul." IRMYS suit argues that the 1933 ant that created OLWD order the California Water code does not Include Iand use planning provisions and does not give OCWD the mahority to impose a memoriam. 'Water districts were formed to supply water and we have ban extremely aartfud throughout the stare not to cross the line into lend use planting issues.Yet,thr't era my wbat OCWD's moratorium does:explained Mrger. "Ibey are,in cffxt,imp,ring drought Mt,WADI!by urd allowing us to pump additional water uut of tlae batiks Their ruission is to provide and manage water,not to cut off supplies of low cost water to public ugaaeies. Doing so At soy time olhu theta a severe emergency is unlawful. This is an M Nmo year. TLem's plenty of water in the basis' On June 8.OCWD pruQmed IRWD with adoeumem listing mesons to reaffirm Its May 20 scum.Thu dOmmund soggmu the mmmtodum was imposed based on an alleped warn Shortage in the Orange County groundwater busbl OCWD's moratorium responds to a contingent of westem Orange County epty leaded who have voiced c mum that additional annexations would create a water ahnrtage is tho'amda 2 JUN-22-96 03 :39 PM PAT M"UIGAN 714 775 2840 P.94 and increase coals. Yet gtowdt pzojmtions indices that annexations am a&mall percentage Of the anticipated lncrvased water demand Mon of the growth will come from pupulnon iuxara5es in azras already within OCWD. Since tha etely 1950s, an=ation has ban at ongotag program at C C WD nod the district Inn expanded its territory between 40 and 50 percent.Other put ltc agenciep affected ty 0C'0.D's momrorium include M Tom Water Dismat,L05 Alison water District and dte city of Anaheim all of which have annexation applications paadmg. LtW U'S Board believes its in the best inrrrc nt'its customers to expand 01c diatria i reliance oa local ground wmer supplies.local grmmdweter is leas expnisive then imported water,the gtmdity is satpuior and its dose by in times of etmScatey. "An alarming nwnbet of waW suppliers ban put their own watc enterprise rcvcuue interests befure the eontimution of basin management for the couanon gomi,"Miller mide7. "Our cutmners ban the same right to water in the basin us their customers do.We have the right to eomplezo the annexation of axe d strim" •30- 3 a a PLANNING ADVISORY COMMITTEE SURVEY RESULTS July 16, 1996 INFORMATION 1. Please rate the written material you received before and during each workshop. (Was the material clear, concise and helpful?) 7 Excellent 2 Good Fair Poor 2. Please rate the presentations and presentation materials(Were the slides, poster boards, and handouts clear,concise and helpful?) 9 Excellent Good Fair Poor Comments. Took difficult subjects and put them into easily understandable graphics. 3. Did you request Information beyond that which was provided? 3 Yes 6 No 1 Omit Comments: Received a lot of detailed information hom Engineering that was very informative. 3a. If so, did the additional Information meet your needs? _2_Yes _1_No _6_Omit/Not Applicable 4. Do you have any suggestions for improving the written and/or presentation materials? Receiving a hard copy of information to be presented at the next meeting in advance would be helpful. Recaps of prior meetings before starting. Prepare a summary(or similar)with packet before next meeting. WORKSHOPS S. Were the workshops held at a convenient time and location? _9_Yes _No 6. How would you rate the facilitators? (Were they fair and thorough, and were they good communicators?) 7 Excellent 2 Good Fair Poor Comments: It was a difficult task but they were able to accomplish their goal. Good communicators were provided. They were very good at converting the information into terms we could understand. 7. What could the facilitators have done to Improve the workshops? 'Only two people answered this question. Comments: The communicators worked well together. THE PLANNING PROCESS 6. Why did you decide to participate on the Planning Advisory Committee? - Linkages to city infrastructure concerns. - I was asked to participate and I think it is important. - I was requested to participate. - My boss asked me to participate. - Interested in understanding the effects of growth and infrastructure demands. - Personal/community interest - Representative of my agency - To help encourage reclamation - Request from Surfrider Chapter 9. Do you believe that your opinions were accurately documented In the Opinion Summary? _9_Yes _No Comments: Flexibility Required 10. Please rate the effectiveness of the consultants in compiling and conveying analysts results. 7 Excellent 2 Good Fair Poor PUBLIC REPRESENTATION 11. Do you feel that the Planning Advisory Committee was an adequate crosssection of the general public? _6_Yes _3_No Yes. The committee was compiled of private citizens, agency officials, private business, etc. There was variety in the representatives. No. It only represents a microcosom of the OCSD ratepayers and stakeholders. It could have been a better cross-section of that group. 12. Please rate the effectiveness of this type of public participation process. _5_Excellent _4_Good _Fair _Poor Comments: Its difficult to get everyone to participate but its important to give them the opportunity to do so. 13. Is this type of public participation process an equitable way to obtain public opinion? _6_Yes _1_No Comments: Yes, but if may be necessary to have more citizens participate and this is sometimes difficult to accomplish. However, it is very necessary to have this process to obtain public opinion. No. I don't believe the PAC represents the public in general but rather°experts.° My guess is the public, in general, would not understand such a technical issue but still could have been surveyed as part of the evaluation criteria. GENERAL 14. Did you have fun participating on the PAC? All agreed they enjoyed participating on the PAC. 15. OCSD periodically reviews its Strategic Plan. Would you be interested in being a member of another committee? Eight members would agree to participate on another committee. One member turned down the offer. 15a. Is there another individual or group who you think should participate in future committees? -Five members did not answer. -One member answered no. -Four offered the following suggestions: Sierra Club Dennis Berg of CSUF Every city should have a representative SrA WRAP ,1111111111111111FAV--mp NEWSLETTER OF THE SOUTHERN CALIFORNIA ALLIANCE OF PUBLICLY OWNED TREATMENT WORKS EPA "Rules" 1998 water Swallows return IN Ift- Issues:, issueim" s with CTR to Capistrano.... 1"aw, committee SCAP follows suit f there has been one dominant The SIP is the SWRCB's plan to The 4e,Annual SCAP Holiday water issue over the past year, implement the Inland Surface Waters Plan Luncheon will again be it has to be the EPA's California and the Enclosed Bays and Estuary Plan that held at the historic EI Toxic Rule (CTR)and the were originally adopted in 1991,but rescinded Adobe de Capistrano µme^ associated State Implementa. in 1994 because of a perceived inadequacy in restaurant in San Juan lion Plan (SIP)being promul- the toxic control portion of the plans. The Capistrano at noon on gated by the SWRCB. These two regula- SIP will incorporate the CTR and is being Tuesday, December 8, 1998. The lions will continue to dominate the water produced in two phases. The first phase will restaurant, a favorite of President committee's agenda for the coming year. result in the adoption of a policy and Richard Nixon during the days of the The implications are far-reaching for environmental documentation soon after the Western White House;is located California POTWs,some positive, some adoption of the CTR. Phase two will within walking distance of the train station and the Mission San Juan negative and some expensive. In include details on numeric objectives, Capistrano—where the swallows certain instances, the CTR A SCG� implementation plans and schedules, make their annual visit. The highlight ratchet down further on numeric P and is expected to be concluded of the annual luncheon is a perfor- discharge limits for certain keeps 12 to 18 months after the mane by the San Clemente High toxic. In others,it will create completion of phase one. School Madrigal Singers. This new numeric limits where t Close eye This issue is being award-winning "master chorale" will none currently exist For this _ monitored and addressed, not perform a variety of Christmas reason, much of the Orl state potential only by SCAP,but also by selections, from popular carols to impact of the CM cannot be regulations- statewide organn lions such as medieval ballads. determined until such data ts _ _ CASA and Td-TAC. SCAP Water collected..Currently,some of the Committee Chair Sharon Green, has All members are invited to attend the positive aspects of the EPA's proposed been involved in several meetings and 9.30 a.m. Board of Directors meeting CTR, particularly the total vs. dissolved discussions with the EPA and the SWRCB that precedes the luncheon. The metals issue,are being challenged by the staff. She also was instrumental in organiang Board meeting will be held at the AWMAU.S.Fish&Wildlife Service and the efforts to have a third-party review of the 30290 Rancho offices located at 30290 Rancho Viejo Road, San Juan National Marine Fisheries Service in an State's economic impact analysis of the two Capistrano, Caltiomia. infra-governmental bmuhaha! Resolution regulations. The review revealed a significant does not look like it will be forthcoming underestimation of the costs for implementa- Notices with sign-up information soon,so expect the adoption of the CTR to tion,and the State has agreed to further will be sent to SCAP members in be delayed until late summer or beyond. discussion. -^^^ November. --- From the Executive Director Water Issues Committee - continued Membership Has Don't let CTR "rule out" Its Advantages other important issues... Bringing together wastewater.gmaies.water 10M ay Protection and Toxic TMDLs may significantly affect every districts.cities and other concerned groups to work Cleanup Program SCAP member—especially those cooperotn.ly towards achieving appropriate ragdnions ` This program,which discharging to the Effluent Domi- far our southern part of the state is not the sole purpose affects ocean discharging natedlDependent Waters. of SCAP. There is another side to the cam...and that is ........ POTWs, is a hot topic in the mutual assistance among these groups wheat"Came, Sacramento. In addition Southern California Salinity to complying with sometimes cumbersome and often to two bills being considered by the Management Study confusing regulations Witnn the Joint Accidental Legislature to add to and modify the This summer, the Metropolitan Release Prevention(JARP)program initiated by program. the SWRCB is expected to Water District of Southern California SCAFs Air Ouolity Committee covering both the state adopt a policy for the development of expects to release a draft of the regional cleanup plans. Aker adopting Phase 11 Study Report,which will and federal risk management regulations of accidentally the policy, the SWRCB is expected to contain a proposed policy and action released hazardous materials(see the related article) immediately follow up and adopt the plan for reducing the amount of salt Its aim a to ease the regulatory burden of straining actual plans by December 1998. How in both imported and ground waters. compliance while at the some time minimizing the cost of this program is implemented will In addition to actions that MM can compliance for each agency enrolled in the program depend heavily upon the outcome of undertake itself,many of the Adding to this ffan was the SLAPIM WDjointly the gubernatorial election in Novem- elements to be contained in the sponsored workshop this May that brought 200 southern bar. action plan will require support and California water and wastewater industry admim action by others, including POTWs. istrators together to meet with reguletors.seeking 303(d) ListTotal Maximum MWD is tentatively planning to hold mutual understanding of compliance requirements. Daily Loads (IMDIs)/Watershed a "summit meeting" of major players Working together to resolve the issues we face Management this fall, and will solicit the parocipa- regarding air quality.water quality and wastewater The SWRCB recently adopted a bon of the heads of most SCAP residuals Ms a not-so-aen,name It is called statewide 303(d)fist of polluted waters member agencies. -Partnving.'and is an integral part of President that includes 469 water bodies and Clinton's new Clean Water Action Flan.wherein all about 1,375 listed pollutants. The EPA Essential Fish Habitats interest groups work in concert to seek solutions to is under a court order to develop This fall, the Pacific Fishenes TMDLs for the North Coast and Management Council is planning to sav;ronmental problems It is important to remember. Newport Bay,and is doing so in adopt amendments to fisheries however,that this vortme egb best initiated by cooperation with the Regional Boards. management plans for several fish organizations such as SLAP.exclusive of state or federal It is expected that the National species by designating essential fish regulatory dictates—lest we return to the Resources Defense Council and Heal habitats. These habitats will require -command-and-control measures that in the past gore the Bay/Baykeeper will file suit against ocean discharging POTWs to consult birth to so many regulatory inequities the EPA on behalf of the Los Angeles with other regulatory agencies This is'Watershed Monag.mont-;n anion.and or Region and possibly the entire State of (besides the EPA and the Regional SCAP...wher.we ore aaw q9 members strong...we look California. Water Issues Chair Sharon Boards)when planning activities forward to oe,city.water sad wastewater member Green reports that there is a major such as renewal of NPDES permits or agencies working even more closely in pursuit of the opportunity for SCAP to play a role in work on oudialls. It is currently common watershed goals we oil embrace — shaping this important program by unclear what impacts this program intervening in the lawsuit, if and when will have on state-delegated activities Sincerely. it is filed. This action warrants serious undertaken on state waters (i.e., SRF consideration since the 303(d)list and loans). —""' Air Quality Committee looks to future see back cover for addlPonal informat/on from the Air Quality Committee hat other issues will be EPA Region IX Rule Backlog Title VI, Environmental Justice spelled out in the The EPA has not been responsive in Called by some observers,the "worst thing coming year? Air reducing a 500 nde backlog that has been the EPA has put out in 20 years,"the Title VI Quality Committee hampering indushy and POTWs. The Guidance Document,which is supposed to clarify ViceChair Greg Adams California Coalition,which SCAP was civil rights regulations applicable to facility siting, reports on the following: signatory to when the Coalition was formed, instead provides 'non-guidance on everything." has been assembled to address this issue with Nicknamed "Environmental Jwfice," the intent of Internal Combustion Coordination Region K as well as other issues that the guidance was to reduce the potential for Rulemaking affect POTWs. minority populated areas to bear the majority of By the year 2000,toxic control undesirable or hazardous facilities. The rule standards for all intemal combustion SCAQMD Permit Fees appears to override all historical community, equipment in POTWs will be required. The Board of Directors of the Southern planning and zoning processes as well as CEQA The good news is that it appears that the California Air Quality Management District has procedures, and may provide an avenue for a Maximum Achievable Control Technol. authorized an increase in fees,primarily due few disgruntled people to stop or delay a project ogy(MACTI"floor,"for existing equip- to the$5 million shordall that the agency has even though a majority of the citizens affected ment,may be no controls. New facilities, accumulated in the laborious Title V permit might desire it. Title VI, Environmental Justice, however,will have stricter standards to program they developed. SCAQMD staff has applies to any renewal of a federal permit,so it meet. The bad news is that the EPA agreed to look at permit streamlining and has will reopen basic permits to revision or change, does not agree with the standard method formed a task force. However,57 percent of possibly indefinitely. No permit will be a reliable for the analysis of formaldehyde and their budget is derived from operating permit basis for constructing or operating a facility prefers a method that estimates that a application fees and annual operating fees, so because the permit conditions can be changed at much higher quantity is being discharged. chances for reductions appear slim. any time.— Your SCAP dollars at wQrk SCAP FY 1998/99 Expenses SCAP FY 1998/99 Revenues OMisc Office Expenses -" OMembership Renewals IllAdministration ,. ■New Members OTechnical Services - - _ Olnterest OTrave, Meeangs Total Expenses = $214,129 Total Revenue = $215,010 Proposed budget will help SCAP SCAP Members pursue regulatory goals outhem California POTWs and Water Agencies join forces to keep up With the ever-mareasing and The table below shows the itemized listing of last year's budget,as well as often-overlapping environmental the proposed budget for 1998-99. Be sure to look for the pie charts in regulations. Here's the list of SCAP this issue that graphically show where SCAP's money comes from and members: ,w.r. where it goes. Nso water Manalimem Agency Camamlo Sanitary oipol 1997/90 ropose 7.01 Cafasbano Beach Water District DESCRIPTION Budget Budget 98199 I"Dec cry of Baaan' EXPENSES City Of Bu@ank Office Supplies(Stationery,etc.) S 3.225 $ 3.900 20.9% City of Escondido Telephone ExOanse $ 3855 5 5.300 45.0% City of Lompx Postage $ 2.690 $ 3,000 11,5% City Of Las MBae Membership Dues(CA Chamber,etc.) E 500 S 700 40.0% Cdyof C.mard CM of Palm Springs Off..Machines-Lease(Copier.postage meter) S 5.500 S 7,000 ]7% Off of Redlands SCAPWRAP Publications $ 5.100 $ 5.100 0.0% City of San Diego Publlcatwns(CA Journal,CA Chamber.etc) $ 750 S 1.300 73.3% Cry,Of Santa Sold Ice achmes alntenanca S 4.300 $ 3.000 -30.2% City of Santa Mana Administration(Rey Miller for rent,salaries,fumlegutpment, City of Simi Valle) benefits,consultants) $ 127,680 $ 140.139 9.8% City Of lholaarld Oaks Technical Support-Admin/Accig(Rebeck) $ 15,600 S 15,990 2.5% City of Ventura Technical Support-Air(Consultant-Dryden) S 12.000 $ 12,000 031% County Sannaoon Dori of Las An" Technical Suppon-Other(includes computer programing) S 3,000 S 1.000 -641 County Sanitation Disgids of Orange County AuditTaxea/Accountin9 $ 2,500 $ 2,500 0.0% Cne7lile Sensation District Legal Services S 500 $ 500 0.0% Easem MWCipal Water DSact SeminarslMeetings S 2,000 S 3.000 50.0% 0Tom Water DSMpt Travel Expense(Except mileage) $ 3.000 $ 3,000 0.0% Special Assessment Facing W Ranh r mmuhodronty $ S - Goleta Ranch Community SeMce Dstirct Benefits(Health insurance,retirement plan) $ 1,600 S 2,600 62.5% Auto Mileage $ 2.000 $ 2.500 25.0% Gcela Rancharepary Du9kt inct Miscellaneous(incl workers camp,gen liability Ins) $ 1,500 $ 1,600 6.7% US RBMh Water pal Water Total Expenses S 198.100 $ 214,129 8.1% Lee Lakenas Municipal Willer DsaCl Lee WMa Water Ds1nc1 REVENUE Los Alison Water Distra Invoiced Membership Renewals S 199,800 S 207,010 36Ye Mammoth COmmuMy Water Damd Anticipated New Member Dues E $ 2.000 Mampdden Water of=of So.Calif. Interest Income S 6,000 S 6A00 0.0% MglteCRo Samil Coact otal avenue $ 205.800 $ 215,010 4.59 Mot"Niguel Water Diana Ojai Valley SaniMry Distinct Current Fiscal Year CarryoverlReserve $ 7,700 $ a81 Padre Dam Municipal water ULad -Pampa Mu ideal Water Diauc WeURaserve(from prevrous fiscal year) California Water Dad Carry year) S 34.028 S 52,555 Rancho Santa Fe CemmundY Senecas OdVict New Total Carryover/Reserve S 41,728 S 53,436 San Bernardino Cry Water&SanSpec Dist Office Capital Funds $30.000 San SO Joint Pales klndni Spacial Projects $ 23,436 Sate Mar"Water D60dt Custodial Funds SatM Coed Water Dsdict Kern County Ordinance Fund 0 South East Regional Reclamation Authority JARP Program Fund 0 Valley Centel Mlucipal Wadi DBVKI CTR-Econpmica Fund' 0 Valley SarYrdly District Ventura Cglmy Pudic Worim *The CTR-Eton Fund is now closed and inactive Ventura Regional SanhEign D61W Wear Basin Muniepal War&Dsact - W1lispenngPalms Community Segel Dodct ' Biosolids looking for some SOY.YD ground his past year,assaults against The Fanning Community General Waste Discharge Requirements the use of biosolids shook the The fanning community's perception Several SCAP member agencies are industry but the SCAP apparently is not much better. In Ventura participating in a statewide effort to pay for the Biosolids Committee and County, the Farts Bureau has petitioned the environmental studies required that would allow member agencies stood then Agriculture Commissioner and the County to the State Board to issue a General Waste ground. Some sure-tooting ban the land application of biosolids. A Discharge Requirement for biosolids disposal. was found,partici lady in SCAP Task Force, including Ray Keamey This issue originated in the Central Valley,which Kem County,where a biosolids ordinance from the City of Los Angeles and Mike Moore has thousands of acres under cultivation using is nearing consideration for adoption by the of the Orange County Sanitation District,has biosolids. As required by a court order,the Kern County Board of Supervisors. When offered to help by providing the County environmental documentation must be com- complete, it wig be the first comprehensive scientific literature on the safety of biosolids pleted by September of 2000. In the meantime, biosolids ordinance in California; one that .use,white emphasizing the efforts Kern biosolids may continue to be applied to the areas was written with significant input from County has gone to in drafting their biosolids that were using them prior to September 1997. POTWs and partially funded by SCAP ordinance. - members. The Future of Biosolids Education and Advocacy What is the future for biosolids? SCAP Manual of Good Practice In order to address the issue of education Biosolids Co-Chair Ray Kearney opines that Another firm foundation for biosolids and advocacy, a National Biosolds Partner- there are more rocky roads ahead for biosolids was the publication of the California Water ship was formed including representatives reuse. According to the environmental commu- Environment Association's Manual of Good from EPA, the US Deparonent of Agriculture, nity,reusing biosolids amounts to recycling Practice. The implementation practices the Association of Metropolitan Sewerage dioxin,a chemical that has been linked to cancer detailed in the manual are practical, easy- Agencies, the Water Environment Founda- and birth defects in humans. Kearney expects to-fogow and thorough. SCAP members lion, as well as academia,environmental something to happen on this issue by the end of are encouraged to require using them in groups, agriculture groups, fertilizer vendors, the year. their bioolids contracts, and incorporating biosolids vendors, consultants and POTWs. The radioactivity issue is also moving them into their own plant operations. This group wig work to encourage Congress forward. This summer,surreys will be sent to California is the first state in the nation to to fund scientific studies,educate the public in 600 POTWs nationwide quizzing them about have such a manual. general, as well as school children,and radioactivity levels in biosolids. Afterwards,300 support the development of nationwide POTWs will be selected for sampling,with the Public Perception professional standard practices pertaining to results of the survey and sampling due by the Clearly, the general publics perception biosolids,much as we have just developed in summer of 2000. AMSA and WEF have asked is not so encouraging. The sentiment California. SCAP Biosolids Committee that two PON representatives work with appears to be that the use of biosolids as a members are involved in this effort Nuclear Regulatory Commission officials to soil amendment and/or fertilizer poses an review the results. unacceptable risk when used on food crops. BRSC Expands Kearney also feels that the fate of biosolids This fact was somewhat painfully evident as Closer to home,the expansion of the use in California depends on how we get through the Food and Drug Administration recently Biosolids Recyclers of Southern California the statewide EIR process. If it becomes a proposed to regulate organic food produc- (BRSC) into a fug-fledged professional political football,there will be little chance that lion for the first time. Tens of thousands of association is proceeding. Members are biosolds reuse can grow, much less be sustained. comments,most solicited by organic food working to fund a staff and research efforts in If it is based on science,the possibilities are markets and magazines,rejected the idea conjunction with the University of California, endless. County ordinances also will be that "human waste, contaminated with Riverside. The BRSC would not be a problematic until the ER is completed. Other toxic industrial chemicals" should be used lobbying or advocacy organization,but would counties are threatening to ban biosolids,so a to grow food,much less organic food. strictly be focused on developing a respected statewide position on the safety of biosolids, voice for the science of biosolids reuse. achieved through the ER, is essential. -^^^ A Air The AICrs of air quality Qualq Commiftee: molllllllil MPP! RMP! C&MY! JARP! develop a plan to notify nearby areas that presented a proposal to the SCAP Board of Work in the Air Quaky 1)these chemicals are stored nearby,and Directors, amended the bylaws,solicited Committee has been focused 2)what to do in an emergency. But interested agencies, and now SCAP has seated on an alphabet soup of conflicting threshold quantities, the Joint Accidental acronyms. Fortunately, all differing chemical listings, and SOAP Program (JARP). ,.,r.,. this lettering has resulted in notification requirements SOAP creates A ronsultant has also been SCAP's(list joint effort to between state and federal retained to develop a risk develop a reasonably priced program of programs have mused reasonably-priced management plan for each compliance with significant new air quality confusion and the potential for Program participating agency. regulations. noncompliance. far Agencies A benefit in two For several years, risk management Enter the SCAP Air compliance with ways: 1)the plans wig be plans have been a problematic issue for Quality Committee with the reviewed by the admints. POTWs. These plans identify on-site alphabet in tow. Members of new air quality tram,¢agencies that are chemicals that have the potential to muse the committee held a workshop regulations responsible for approving problems for surrounding areas if released last year to advise all southern them, thus ensuring accidentally or purposely. Basically, California POTWs )SOAP compliance and 2)they will depending upon the amount of a chemical a members or not)of the proposed regulations share in economies of scale that are achieved by facility had on site,they would be required to and what they would mean for their facilities. non-dupkmtion of effort and sharing boilerplate Then they went even farther.The committee response material. —^^^ The Southern Califorroa Allmnoe of Publicly Owned adducomf air quality issues inside Teuboent WIXYS(SCAP)s a norriVott pppOrdtion orppnuea w help ensure that mgdaSo s affemngPOlm are reasonable am in me pubtct Gat ime Neste Toone Toone or wme SCAP w th any 7uationVmmmems: SCAP Mission Statement San Ju AarJrmcaViejo Road,A9Suite 113 The Alliance shall seek environmentally sound state and coal regulations that prome a balance between San Juan)489 7 no,U 92676 Tel: 1949)Vffi-7676 the protetpon of the emimnmmt and the economic Nadlity of the mmmuni0es they Sens.The Alliance Fac(949)4BM150 shall approach me regulatory community prepared with necessary and accurate data that support the Board of Dias-officers: positions ittakes on regulatory mues.in addition,the Alliance shall advise member agencies and cities Chanel Carry,Presdam am(cam Chairman M Coutars re regarding all regulatory matters mat affect sWman California water tieatinent,wastewater tiealmem and Maud Awry.Yice President la�prura Sawa BdmaR CM � g Jerry Smar,Snartarol easuer(Santa Bantam CIA collection systems agencies.Finally,the Alliance shall participate in mejudicial process as necessary in Maid Caretio,AWL Sepelary/Asst.Treasurer - (aac ere,Oome!c(u lyt - support of the c*b es at the memberstip. - Board of Erector;-Members Bldg Anderson(Orange court) - James Camtul'Jt a4eSan ele C vity) Dae Kich u(San Beaar6m CaraA ! DAD. Alan tangyomy Ilan Oegi3 Cavity) JoM Midi aaMAJe(San Degr county) us.POSTAGE Mai Norrs(vermra CaumA �`i�_i�i P am Nordmm. mlemare(Raersle Count) PERMIT OOK CA Wii John PMtom(Rer vi cti 30290 Rancho Viejo Road,Suite 113 PAMRND.421 ado Rued A amonove(Santa Barmm coudy) San Juan Capistrano.CA 92675 Tom Sim anamte(San Berardino County; lujoh vilm a2me2(fits Atom Com Ratsmtl C.Meer,EwAae DmiducAsm.Secretly Opal H.Reted(Assotiate tiro MUM,Aswdate Ws WtEpmn4 AdmirAaUe Asmmnt ENtael aid Production M Ills ONUnd.SCAP, and Manson&Atsoama,Inc(760)7234449 Recycled Taper SeaSick" face I ot4 News iY7 ex — o - t SQIENCE HELP) want the b hursday, June , 1999 Sea Sick? ■ Scientists say excess El Nir7o runoff that should have washed away hasn't,depressing salinity levels and increasing the amount of disease- causing pollutants in the surface. By DAV/D REYES Times Staff Writer ome scientists believe the levels of disease-causing pollutants in the ocean might be higher than normal this year after the wintei s heavy storm runoff created a layer of polluted freshwater so large and deep that it depressed salinity levels in the ocean surface. "There is a large mass of freshwater floating on the surface from one month to the next and it won't go away," said Charles McGee, a microbiologist with the Orange County Sanitation Districts. "The sea is really dynamic out there and it should have gone away,but there's just been so much rain." Each winter, rains wash pollutants off streets and fields and down streams into the ocean.The lighter freshwater floats atop the heavier saltwater until time and tides mix the two and allow the marine salt to kill many of the microbes that have been washed into the ocean. Ultraviolet light from the sun kills more. But this winter's epic El NuSo storms have washed off so many pollutants that scientists such as McGee fear that the waters remain more polluted than usual at the beginning of beach season. Bolstering such fears are the signs posted by the county warning swimmers away from the water at some spots, long after such signs are usually gone. Usually,the county closes a beach area for 72 hours after it finds bacteria levels above the allowable standard,said Monica Mane,an environmental health specialist for Orange County. Because of the rains that sputtered through the spring, "we pretty much had the standard advisory going from Dec. 6 to into May," she said. There were 37 beach closures in Orange County because of pollution levels that exceeded safety standards,the most ever in recent years,Mazur said. El Nitfo-generated storms also contributed to unauthorized discharges of raw or untreated sewage--25 million gallons—that were responsible for many of the closures, she said. Portions of Doheny State Beach have been closed since a December spill there. "The 25 million gallons of sewage represents the biggest htip://Iatimes.com/HOME/NEWS/SCIENCE/ENVIRON/t000058952.html 6/25/98 Sea Sick? Page 2 of 4 year we've had for sewage discharges that I can recall,"she said. In Los Angeles County,beaches were closed 13 times for a total of 50 days during a winter when more than 120 million gallons of urban runoff entered the ocean from Los Angeles and Ventura counties alone. In May,the environmental group Heal the Bay in Santa Monica in its annual report warned that contaminated ground water from the Santa Monica Mountains is expected to pollute Santa Monica Bay well into the summer,affecting some of the most popular beaches in Los Angeles County,including Will Rogers, Sunset and Surfrider. Ocean's Health Woes McGee said that even as summer opens,he still has concerns about water safety,especially at storm drains and river mouths,where he said bacteria levels have remained high and salinity levels low. He supervises the sanitation district's microbiology laboratory in Fountain Valley,which takes ocean samples at 19 locations in northern Orange County;other sanitation districts and the county health department cover the rest of the county. "I wouldn't go in the water now, and I wouldn't let my kids go in the water,"McGee said. A USC researcher also has been monitoring the lower salt levels caused by the larger-than-usual layer of polluted freshwater in the ocean. After normal rainstorms of 1 to 2 inches in Southern California,the plume of brownish freshwater extends 2 to 3 miles from shore and is about 16 feet deep, said Burton Jones, a USC biology professor. In a special El Nino study he conducted in Santa Monica Bay in February,Jones found the plume extended more than 6 miles out and was more than 130 feet deep. "It was the largest volume we've seen in three years of testing,"Jones said. What does the large offshore plume mean to the health of the ocean and for ocean users?No one really knows. But generally speaking,more runoff from rains means more polluted water entering the ocean. With the rains spattering into June,many creeks continue to flow long past the point where they typically dry up,said Larry Honeyboume,a spokesman for the Orange County Health Care Agency. Risk Is Uncertain In addition,the large amount of freshwater means that there is less salt in the topmost layer of the ocean to kill off dangerous microbes.Water samples gathered by the Orange County Sanitation Districts in April nearly made McGee fall off his chair.Normal is 33.8 parts salt per thousand, he said; some samples showed 30.8. Beyond that concern,Jones said,potentially harmful microbes in the lower reaches of the plume can live longer because ultraviolet rays from sunlight cannot penetrate that much water to kill them,Jones said. Health officials are noncommittal about whether there is a heightened risk for swimmers in areas that are not near rivers http://Iatimes.com/HONMJNEWS/SCIENCE&NVIRON/t000058952.html 6/25/98 Sea Sick? Page 3 of 4 and storm drains. The data on those areas shows water meeting state standards,Honeyboume said. Mazur said the issue is more complicated than simple measurements can show. "Safety defends on how much the flow is from a river mouth or creek,"she said,as well as the speed and direction of ocean currents. Most county health departments test the ocean regularly where people swan for fecal coliform,which is an indicator of sewage and waste from warm-blooded animals. But McGee said his concems go beyond that bacterium,which has been linked to higher levels of respiratory ailments and other illnesses among beach users. 'typically,storm drains,creeks and rivers carry runoff that includes such pollutants as decomposing vegetation,motor oil,fertilizer and pesticides. There is no coordinated effort among agencies to test for such pollutants. Honeyboume agreed: "We aren't measuring for disease- causing organisms. We are using indicators [such as fecal coliforml as a sentinel or surrogate for those diseases because it's difficult measuring the viruses,bacteria and protozoa." And no one knows how much of the freshwater plume is left County health agencies limit themselves to monitoring the surf area "We don't track the plume," Honeyboume said. "You can use the depressed salinity as an indication of the ocean water's condition.But in terms of regulatory standpoint, it's beyond our responsibility." Scientists expect to have more information on the damage El Ni6o might have done to the ocean environment,as well as on coastal pollution in general,after a large-scale coastal study in August,said Stephen B. Weisberg, executive director for the Southern California Coastal Water Research Project. More than two dozen agencies from Santa Barbara to the Mexican border will conduct five weeks of testing after they meet Aug. 3. For the most part,"Weisberg said, "these agencies don't talk to one another.But we will be sharing information on testing,and monitoring the beaches during a five-week survey beginning in August." A More Polluted Ocean A thick layer of polluted freshwater from El Nifio-related storm runoff has created a higher concentration of microbes in the ocean,according to scientists at the University of Southern California. After a normal storm: Plume extends 2-3 miles from shore, is about 16 feet deep,32 feet at most. Freshwater layer is thin,easily penetrated by ultraviolet light,that kills bacteria,viruses. After El Nifio Storms: Plume extends at least 6 miles and is 100 to 130 feet deep. http:/Aatimes.com/HOME/NEWS/SCIENCE/ENVIRONh000058952.html 6/25/98 Sea Sick? Page 4 of 4 * Because freshwater layer is deep, UV rays can't reach and kill bacteria and viruses in the layer's lower levels. Beach Closures In Orange County there were 37 beach closures during the 1997-98 rain season,when concentrations of polluted runoff exceeded safety standards.More than 25 million gallons of sewage from unauthorized discharges forced many closures. In Los Angeles County,authorities closed beaches 13 times for a total of 50 days. Rainstorms dumped more than double the average precipitation in Los Angeles and Ventura counties, flushing urban runoff into the ocean and 120 million gallons of raw sewage along with it. Biggest Orange County events included: * A 2 1-million-gallon sewage spill from the Fast Valley Water District in San Bernardino County. The spill traveled into Prado Dam in Riverside County and then down the Santa Ana River and into the ocean off Newport Beach. * A 3-million-gallon sewage spill by the Moulton Niguel Water District in Orange County when a large pipeline under Tmbuco Creek washed away. * Closure of a portion of Doheny State Beach north of San Juan Creek in the area known as North Beach. The beach has been closed since Dec. 6 because of coliform counts from sewage and bird waste that persistently exceed safety standards. Sources: Orange County Health Care Agency;Los Angeles Department of Health Services; Santa Monica-based Heal the Bay; Burton Jones,University of Southern California Graphics reporting by DAVID REYES/Los Angeles TTimm o search the archives of the Los Angeles Times for similar stories.You will not be charged to look for stories,only to retrieve one. Copyright Los Angeles Times lN ews ac ie n ex 60 http://Iatimes.com/HOW-INEWS/SCIENCE/ENVIRON/t000058952.htini 6/25/98 ' fRon+ CO aPN1TPi]ON AuPcl,t62 6s95 B660 oughti-IT-9e 11 :23P P.BI to scrutinize .sewer costs ,�yP//i e / wastewater system told them of ;t,1y Ne.Ssalfwntu I / stalling inefficiencies and wasteful v spangling pramices,Wachs said. Charging that Less Angeles mi. "Now we want to go beyond just dents are overpaying fin sewer set- an audit,"Wachsadded."We want vices by up to S70miBion a year, the audit to include City Councilman Joel Wachs and beach•marfing." Hal Berson called Tuesday for a IO 1995,W IL-d Bemsontried bench-marking audit Of the waste- unsuccessfully to Bet the council to water system to identify potential put The sewer system out for private cost savings, bid,altersome fttmssald[heymald �Steppiog up pressure for reform, gguuarantee the city a saving of t�arhsand Heimann plan to ask the S30 million annually end possibly (sty CouneB toapprpvetheaudit at could save up to$70 million. aJuly Zl mee[ingm Northridge, Wachs said 400 other cities have they hope Sao Famando privatized sewagntteatmeat ryreudentswi0tmn out io large systems. opmbers to support the Study. 'Again that metwithstonewalling �These's no question that the 'resiaanrc from both menegcmmt ciWs sewer service system is just and city employee unions,"Wachs t ally out of mntml,"Wachs said said. s City Hallumsconferenm Bernsonsaidaracenteos[analysis Atsgeles'sewersmice feesare done by the city Sanitation Bureau among the highest mthenatioo and identified areas wherecuts might be the burden is being home by the made,includingdirectlaboreoslsof ♦ rgeoayess of the city." $219 million. V g Wachs and Benison submitted a Healso said thereisS31.5 million motion to the council on Tuesday being paid om of the sewer fees to 1\ matralisforinouuidcaudimrmbe other city departments providing hired to conduct a "best•prsetim services to the sewer system. beach-marking" study that would 1t means that the sewer service compere Los Angeles'S631 million cbargesthat aresuppoxd to dievotly annual wastewater system with payfortherepairingofthe Hyperion e o thine Operated by other chin and (Treatment Plan[) and secondary J. yfA se(um6. departments eR ping ro other -A similar beacears ago for t e ugly d:w budgets in the city S augment w done Huss years op for the Iqs Iheu budgets,"Benison Baia. Angeles Department of Water and Judy Wiltms,who heads the city ps Posver led to rots of$250 million Sanitation Bureau, has said the :y2Ji amsmllytothatagmcJ'sbudgetand payments to other departments a reduction otth DWP work fora were for legitimme support Serviar by more than 2,000 employees. fin the aewcrsysteQ including legal ,: "Dbvivtaly the management services, vehicle maintenance and ' audit is desperately needed," warehousing Benton said. The council meetingo ,July 21 is TheDaDyNevvsramJymported act to begin at 10 am in the St. g that despite a 1993 City Council Nicholas Grande BaWoom, 17037 you to conduct a management Plummer St_Northridge. audiI otter sewn system,the Study Bemsonaaid he would try to Qneverbeendonc.ltwasblockcd repeal a fmnchisc fee that takes =City Attumey James Hahn,who $20 mi0ioaenOuatly fmmthesewer Jgsed it mf$ht harm the city's fees to subsidize the city's gmerd pennon in littgarmn by other cities fund—the"Most Outrageous insult ebaBmgmg the Sewer fees they were of all."he said. rhugcd by Ins Angeles. Wachs and Bernsoa plan to put "Wachs and Berson sought the the Government FJTdrncy Com. management audit five years ago matee to apptwe the bench after whialle-blowers in the marking study. Wednesday,July 15, 1998 LAMES METRD Section ru,s �— towRn OwnHa pe !t�M. - ANeie�Twn Towers Are - Tapped Out by Updated Technology Water-Treatment Plants,Left in Dust Will Be Demolished -- - By SHELBY GRAD - TiMFS STAFF WRITER Two mammoth water- treatment plants that have towered over the Santa Ana River for — nearly three decades will he demolished this fall,made relics by advancing technology and the areas rapidly disappearing _ - larms. — —The six-story structures— — - - '— the tallest buildings in Fountain Valley—contain a maze-like _ network of pipes and fans that — - daily removed ammonia from 10 million gallons of water - - bound for the county's ground water Fusin. But the plants have rammed idle for a decade. The complicated process of removing ammonia by letting the water cnecade 60 feet like a Orange County Water District official Steven Conklin is silhouetted against fiberglass walls of six- story-high towers. Below, the Tole towers in background of current facility's recatbonation basin. TOWERS Continued from BI located inside two nondescript in- --------WEEK ` dustrial buildings off Ellis Avenue It reminds me of a near the San Diego Freeway.They were built in the early 1970s to deCOmmissioned ship. treat waste water from local sew- It's kind of eerie being ers.After treatment,the water was injected into the ground. Inside there.' The injections are designed to N WII create barriers blocking seawater RO WILDERMUTH Orange Water District ";c-- i.t from entering the coastal aquHms and contaminating the fresh-water spokesman ' storage areas. They also help re- plenish the ground water basin, waterfall is now considered ob. which Is the primary source of solete. drinking water for homes and "It reminds me of a decare- businesses in the north, west and missioned ship It's kind of eerie central county. being inside there:' said Ron But before the waste water can, Wildermuth,spokesman im the be injected, it must be treated to Orange County Water District. _- remove hcutann such asammoe "It's like being in an emPtY ... -�. ` _ nia,which contains nitrates.a[moc as once substance created by human and hotel.You know there w "' tremendous activity in there. -a•%. 3"T' . "— ^'.. animal waste. In large enough But now,there's nothing." doses, nitrates can cause a poten- tially fatal oxygen deprivation in The water district now was a _ i4-% .a f- infants known as"blue baby"syn- reverse osmosis filter system . drome. that accomplishes the job much , "'>- K In its raw form,the waste water more efficiently and takes up a °t m,y, - '"�+" ..,, "7: contains nitrate levels that a- tiny fraction of the space. seeded federal drinkingwater ant At the same time, min �'^ ^d'~ f levels in the waste water have x '�' standards. But treatment by both declined since the closure In the ",ig> ,,^b;. ��F::-,v' - the water district and the orange late 1970s of a nearby fertWser - A t .v%" County Sanitation District brings plant that served the county's ;:'� the water to top drinking quality, officials said. agricultural industry. "We ready don't have a rea- _�'„ Under the old ammoniaom the son to k these buildings ..y"" ping process,waste water from the keep -`y.. sanitation district was shot60- standing," said Steven Conklin, !Yr ' ",-. toot pipes and gradually, released asedsed director of engineering for the .'g down a series of steps. The water water district. "The process a would cascade down insheets.At very interesting-we were v ypv�.,{rjtlF +" the same time,powerful fans would really doing the same thing that ' r '�ae.,rjy blow air at the water. nature does with a waterfall. ;� .! •yu+ti<R '(!t� T.�t _ The process leached-ar Butit's no longer the latest , `.' ^ "Stripped"-all the ammonia out of technology." ,t the water.Conklin said the process The artificial"waterfalls"are ,t. r JS. - worked fine, but that the modem Plesu see TOWERS,Bi d reverse osmosis system is superior because it removes ammonia as well as a variety of other minerals and pollutants. "It really takes everything out of there:" he said of the new process, which runs the water through a series of membranes. The filters contain holes small enough for only water molecules to pass through. C_3 Out With the Old Ammonia Wm°'� urm^nln _Ae The Orange County Water District this fall Fans .,I A aafomaeep will tear down two \�♦ — 1 mean of cuss massive"ammonia- ++, :�: _ ti-_ crossing 1•pipe stripping"plants that r .+ "•'^'� treated waste water. The six-story towers in e considered T 7� Air I The district noww uses a a smaller,more efficient reverse osmosis system. nC Water..1a ♦ Giant propellers pull air up through vents The old "ammonia- A stripping' system: r a Fan © Water enters at the WASTE top of the tower. ♦AAA A tA1r101AtAa - AA t plpA © The water cascades WATER t down a series of Ansn^^m steps. 4�. Flpe mmh . • J• © The water Is hit by _ air coming from the ♦ .♦ + + bottom of the tower,the +7 + air is generated by a fan .... , at the top. — _- ;!i ` O. me air, ,t water hits , ♦ • ___l. me air,the ammonia gas(waste product)Is naturally 7i.•..y© . j • �_ ._11. .C) - separated and floats up ..-i . s i--1-.—�--♦-�. ' 1-�?:'. and out of the tower. v / 0 ! 1 i'A :1'1 :8 a IfD..� © The water,now free 46e10 ae4010 41A Al el A 4e/ 4- \ of ammonia.exits / A A A A A O A A A.A A.A A A A A A A A A A AAA \ at me bottom of tower and goes to the next e e + e A A A e i i e e . e J e e A ASit step In the treatment Process. v The new reverse 'WASTE:w: osmosis system: AL WASTE ,. ,. OWaste water sent through a membrane -� © A •♦ , filter. © Molecules of ammonia and other pollutants and minerals are too large to fit through Me filter and are held back t& (the holes in the membrane are small enough that only water molecules can pass). - © © The pollutant-free water flows past R the fitter. sous:asp wgwRer O^aRr Wratr♦ne attar AMM0NIA4rREE WATER PAOLCARBa/Im AnRely Tmn The Orange County Register CITIES Thursday, July 16, 1998 Water treatment towers coming down CITIES: The 30-year, ode that could provide water for this space,"said Steven Conklin, tower onto the water. When the water through tiny membranes old structures la Foun- 200,O00 additional county tam- director of engineering for the ammonia gas hits the air, it es- that filter out minerals, such as Oleo by 2003,Orange County Wa- water district, which provides capes into It. salt,that are larger than water. thin Val,l,e�y Will be re- ter District officials say. water to 2 million north county It's like gasoline," said Ran " m This Pess takes up about 1 placed an advanced The 20afoot-by60-foot towers, residents every day. WOdermuth, &ater district one-thirdless space and removes hidden from residents in the The 30-yearuld towers, con- spokesman. "The ammonia more minerals," said WOder- filtration system. beck of the water t facilitystructed of redwood and fiber. would rather evaporate Into the muth. near the Santa Ana River on Ellis glass, have been idle for a de- air than stay in the water." He said space Is especially im- Ly JENNIFER PEREZ Avenue, were built in the 1970s. code.Officials say those mated- The ammonia is dangerous portant with the population in- The Orange.County Reghter - They contain a maze of pipes and pis and their age make the and even deadly U consumed in crease that Is expected in the fans used to remove ammonia towers a fire hazard. large quantities.it contains toxic - county. FOUNTAIN VALLEY — Twh. from 10 million gallons of sewer The towers remove ammonia nitrates, created by human and "We will have a population in- six-story water treatment towers water each da from the water by shooting it up animal wastes, that can lead to crease of one million people in — the tallest structures In the y' 60-foot pipes and then releasing it oxygen deprivation. our district alone by 2000," said city—will be demolished in Sep- "We cant do a lot mare water down a series of steps to create a Ammonia Is now removed Wildermuth. "We have to pro- tember to make way for more treatment than we have done in sort of waterfall. Powerful fans through reverse osmosis, a pro- vide water for those people advancedwater treatmeatmeth- the past by making better use of blow air from the bottom of the cess that involves rushing the somehow." Wednesday, July 15, 1998 IIATIMES METRO Section O.C. District May Buy Water From San Bernardino ■ Resources: The county seeks to diversify its suppliers WATER: Deal Would Diversify Sources with a SI.S-trillion deal to replenish its round water. ContinuedRiver dltout=50 per wre oot for KWUgompared the growth an new duedevelopment. to population an P B Colorado River and the Same- Mth 0e Orange tfall Water growth and he hoes this Menlo Vella.Officials[ear a cut in water. The Orange County Water Mills said he hopes this year's By SHELBYGRAD production could affect the quan- Dlstrlere board of directors tonight agreement will be the beginning of TIMES STAFF WRITER sly and cast of water Orange will consider a one-year deal to a long-teen partnership between Colmty recelvea. take as much as 10,000 acre-feet of the two counties. In fact, Orange Officials are poised today to take the "It makes sense to have a mixIn San Bernardino water,at a coat of County officiate have proposed a first step toward diversifying Orange the sources of our water;' said about$1.5 Mellon. far larger deal that would provide County's water supply by purchasing William Mills, general manager of By comparison,the district tem- the local ground water basin with millions of gaRons of water from Sun the Orange County Water District ally purchases 50,000 to 70.000 $15 million worth of water ova Bernardino County at a discount price "This to a deal where both Aides acre-feet of water from MWD. five years. that could eventually trickle down to benefit." Most homes and businesses in The agreement being considered erne erem in the form of lower blue. Sam Bernardino water agencies coastal arms m well as northern wouldn't necessarily lower the wa- The deal would mark the that time in often have an overabundance of and central Orange County get ter Mlle paid by residents and nearly two decades that the county water In their aquifers. Under the 50% to 70% of their water from businesses. But officials said rates would be Imparting Water from a propMy, they would dump some of local weld, importing the reel. might dlp—orat least stay stable— source other than the Metropolitan the exess Into the Santa Ana River. South County, however, has far R more discount-priced water can Water District the mighty agency that The water eventually would travel less ground water and Is much be Imported into the county. supplies much of Southern California. through the Prado Ram and into more reliant on the more costly The cost of MWD water has Finding addltlonal sources of water to Orange Comdy'e ground water be- Imported water. gradually risen over the last do:- importmIL Orange County Water Dis- ahl,replenishing drinking water that The San Bernardino deal comes ade,but the agency expects prices trice presste said because MWci Is is being pumped from local well& as officials predict a 37% Increase m stay gat for at least the neat few under pressue from federal reduce theials The San Bernardino water costs In demand for Imported water over years. and environmentalists M reduce the amount of water It takes from the -- In a Stink Page 1 of 2 [News ® ice Index _ . Technalogg, news and -Im information for you. Wednesday,July 22, 1998 In a Stink s Sewage Spill Fouls Up Traffic on Coast Highway, Closes Newport Bay By VALERIEBURGHER, 7lmes Staff Writer are than 100,000 gallons of waste water and raw sewage IMM'spilled into Newport Bay and over a stretch of Coast RELATED Highway on Tuesday after a construction crew accidentally O.C. SECTIONS ruptured a pipe. Areas of the bay will be closed to swimmers for at least three MAIN PAGE days while the Orange County Health Department tests the water. "It's a significant amount," said Lt. John Blauer, spokesman for NEWS BY the Newport Beach Fire and Marine Department. "And were not yet 100%sure of the content." SPORTS The pipe broke between 8:15 and 8:30 a.m. under the 3300 block of Coast Highway near Newport Boulevard. A construction PREP SPORTS crew subcontracted by the Southern California Gas Co. was trying to drain water from the area when workers mistakenly drilled into a BUSINESS 24-inch pipe carrying sewage to a treatment plant in Huntington I.II+E R S TYLE Beach. Before the sewage was diverted to another line at 9:45 a.m., CA END 50,000 gallons of waste water had seeped into the bay and 50,000 more had flowed onto the highway. Throughout the morning, CALENDAR cleanup crews used shovels, skip loaders and vacuum trucks to WEEKEND remove sewage from the road and skimmers to clean the harbor. HOME DESIGN All but one lane of eastbound Coast Highway was closed in five-minute intervals for the first two hours of the cleanup, said COMMENTARY Police Sgt. Mike McDermott. The eastbound road was completely cleared about 4 p.m. The bay remains open for boating, but no T.V.TIMES people will be allowed from the Lido Turning Basin by Coast Highway to the end of Lido Island. Because the accident occurred in the morning, much of the sewage was from residential areas and not from industrial plants, said Michelle Tuchman, spokeswoman for the Orange County Sanitation District. "People have been showering, brushing their teeth;that's the majority of it. There's little or no manufacturing waste that got through." http://www.latimes.com/HONENEWS/ORANGE/t000067050.htH 7/22/98 In a Stink Page 2 of The Orange County Health Care Agency immediately began testing thewater for microbes, said spokesman Larry Honeybourne. "Any time you have raw sewage that's emptied out, the risks can be high," he said. The results of the tests will be compared to California's swimming standards,Honeybourne said. He predicted the bay will be reopened within a week. But the spill was an unwelcome intrusion for local restaurateurs. "It stinks around here," said Daniel C. Marcheano, president and owner of the Arches restaurant, across from the spill site. "You never want to see anything like that near you. It's a horror story for anyone who fives here." Tuesday's lunch crowd, predicted the general manager of nearby Bistro 210, would "probably be meager." Coovright 1998 I.os Angeles Times. All Rights Reserved Search the archives of the I.os Angeles Times for similar stories about: PACIFIC COAST IEGHWAY.SEWAGE SPR.I.S.OCEAN POLLUTION— ORANGE COUNTY.MVIPORT HAY. You will not be charged to look for stories,only to retrieve one. I.News _ ©p lta lndeX_ 60 http://www.latimes.com/HOME./NEWS/ORANGE/t000067050.htm] 7/22/98 ziewage spill fouls bay,highway Page 1 of SECTIONS MARKETPLACE" - ComL"BtI1 nity ome age � uo ccess ;r ME(1WHIe ODIIMYRICJSIEa ETJ�T.TR PCreglslter om iiirrYYlL:ffKK --- PA Outside Orange Cnuny. „ RODRIGUEZrrhe 6exlws r Orange County Register Fb obituaries Newport Beach worker John Bryant operates a Vector—a large vacuum cleaner—to clean up sewage wr Tuesday near Newport Boulevard. 1 Sewage spill fouls bay, highway ACCIDENT: Workers in Newport Beach puncture a line and set loose 100,000 gallons. July 22, 1998 By BRADY RHOADES The Orange County Register NE WPORT BEACH—More than 100,000 gallons of raw sewage gushed into Newport Bay and onto West Coast Highway on Tuesday when a construction team punctured a sewer line near Newport Boulevard. About 50,000 gallons spilled into the bay, mucking up channels east of Dover Drive, and another 50,000 carpeted the south side of the highway. "Ugh! It smelled," said Dan Marcheano, owner of The Arches restaurant, across the street from the spill. "We cooked up a lot of garlic today." A 4-mile stretch of Newport Bay will be closed to swimmers, windsurfers and other water enthusiasts for at least three days. The right lane of the highway, from Newport Boulevard to Riverside, was closed to southbound commuters most of the day, slowing traffic to a crawl. http://www.ocregister.conVcommunity/spil]022w.shtml 7/22/98 Sewage spill tools bay,highway Page 2 of 2 It was the sixth biggest spill in Orange County this year, said Monica Mazur, environmental health specialist for Orange County Health Care Agency. Mazur tested the bay for bacteria levels but will not have the results until Thursday. Construction workers accidentally severed the 24- inch, Orange County Sanitation District pipe about 8:45 am. Newport Beach police, fire, lifeguard and public works crews, Orange County Health Care Agency and Orange County Sanitation District responded. Dams were set up on the highway and in a nearby parking lot to prevent more sewage from seeping into storm drains. Pumper trucks and pool skimmers vacuumed the waste from the street and water. County Harbor Patrol boats posted signs closing the bay. Beaches remained open. Thirty-three spills have occurred in Orange County this year, Mazur said. The biggest spill washed down the Santa Ana River during an El Nino storm March 5, depositing 21 million gallons of sewage into Newport Beach and Huntington Beach. C1 newspaper nomnBe uZo ntyZ.elao 'i�eyisfiei�" eopyrl9ht 1999 The Ore'ge Coemy Ne9kbr Please sew comments to oveagter®Iink.fieeEom.wm http://www.ocregister.com/co=unity/spil1022w.shtml 7122/98 4 V Orange County Sanitation District MINUTES BOARD MEETING JULY 11 1998 �JN ANITgr� 2 L' C � o -a ti FCl'yQ H ENVY � ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 OCSOe P.O.Boa 8127 a Fountain Valley,CA 927224127•(7141 8824411 Minutes for Board Meeting 07/01/98 Page 2 of 10 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District, was held on July 1, 1998, at 6:30 p.m., in the District's Administrative Offices. Following the Pledge of Allegiance and invocation the roll was called and the Secretary reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Burris Dunlap, Chair Glenn Parker Peer Swan, Vice Chair X Darryl Miller A Steve Anderson John Holmberg A Don Bankhead Jan Flory X George Brown Shawn Boyd X John Collins Laurann Cook X Jan Debay John E. Noyes X Barry Denes Richard A. Freschi Brian Donahue X Harty Dotson A Norman Z Eckenrode Constance Underhill X James M. Ferryman Arthur Perry A John M. Gullixson Gene Wisner X Mark Leyes Bruce Broadwater X Patsy Marshall Jack Mauller X Pat McGuigan Thomas E. Lutz X Eva Miner-Bradford Paul E. Walker X Mark A. Murphy Joanne Coontz A Anna L Piercy Tim Keenan X Margie Rice James V. Evans X Thomas R. Saltarelli Jim Potts X Christina Shea Barry Hammond X William G. Steiner Todd Spitzer X Dave Sullivan Tom Harman X Charles E. Sylvia Ron Bates A Bob Zemel Tom Daly STAFF MEMBERS PRESENT: Don McIntyre, General Manager, Blake Anderson, Assistant General Manager, Penny Kyle, Board Secretary; Ed Hodges; David Ludwin; Bob Ooten; Mike Peternan; Gary Stread; Mike Moore; Greg Mathews; Jean Tappan; Use Lorey; Ingrid Hellebrand; Mark Esquer, Doug Cook; Ryal Wheeler Minutes for Board Meeting 07/01/98 Page 3 of 10 OTHERS PRESENT: Tom Woodruff, General Counsel; Bill Knopf; Bill Tappan OATHS OF OFFICE The Board Secretary swore the Directors into office. ELECTION OF CHAIR It was announced that the election of the Chair of the Orange County Sanitation District was in order. Nominations were then called for the post, whereupon Director Burnie Dunlap was nominated. There being no other nominations, the vote was polled and the Secretary cast the unanimous ballot for Director Burnie Dunlap as the Chair of the Orange County Sanitation District. ELECTION OF VICE CHAIR It was announced that the election of the Vice Chair of the Orange County Sanitation District was in order. Nominations were then called for the post, whereupon Directors Jan Debay, Thomas R. Saltarelli and Peer A. Swan were nominated. Director Thomas R. Saltarelli declined the nomination. The vole was then polled by a show of hands. The Chair then announced that Director Peer A. Swan had been elected to the post of Vice Chair of the Orange County Sanitation District. RESOLUTION OF COMMENDATION MOVED, SECONDED AND DULY CARRIED: That the Board of Directors adopt a Resolution of Commendation commending Director John Collins for his contributions to the Districts during his tenure as Joint Chairman of the County Sanitation Districts of Orange County. REPORT OF THE CHAIR The Chair reminded the Directors of the upcoming meetings listed on the meeting notice. He then recognized Director Jan Debay who addressed the Directors regarding the importance of attending the conferences held by CASA and the invaluable information received by attending. Chair Dunlap advised Directors that members of the Steering Committee were authorized to attend these conferences. In addition, the Chair could designate additional Directors to attend the conferences. Directors were then asked to contact the General Manager or his secretary if they were interested. 11. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-1, Acknowledging the Final Approval of Districts' Reorganization DC97-30 by the Orange County Local Agency Formation Commission;Accepting the Terms of Orange County Loral Agency Formation Commission Resolution DC97-30; and Approving All Powers, Rights, and Duties of County Sanitation Districts Nos. 1,2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California, Including that Certain General Assignment of Contracts, Agreements, Permits, and Other Obligations. Minutes for Board Meeting 07101/98 Page 4 of 10 12. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-2, Fixing and Establishing Rules of Procedure for the Conduct of District's Business. 13. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-3, Establishing the Compensation and Expense Reimbursement Policies for its Directors. 14. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 984, Approving Provisions for Satisfaction of Payment of FICA Taxes for Director-Employees Mandated by Federal Omnibus Budget Reconciliation Act of 1990. 15. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-5, Adopting the 1998 Conflict of Interest Code. 16. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-6, Reaffirming Resolutions Nos. 89-101 and 89-102 of its Predecessor Districts, County Sanitation Districts Nos. 1, 2,3,'5, 6, 7, 11, 13 and 14 of Orange County, California, and Establishing the Orange County Sanitation District Master Plan. 17. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-7. Approving California Environmental Quality Act Guidelines Manual. 18. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-8, Establishing Policies and Procedures for. (1) Selection and Procurement of Professional Engineering, Architectural, Environmental, Land Surveying and Construction Management Services; (2) Approval of Plans and Specifications; and (3) Approval of Construction Change Orders. 19. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-9, Declaring a Policy Pertaining to Wastewater Management for Preserving Orange County's Coastal Ocean Waters. 20. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-10, Approving Water Reclamation Policy. 21. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-11, Approving Policy Pertaining to Future Areas to be Served by the Orange County Sanitation District 22. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-12, Authorizing the District's General Manager to Establish Rules and Guidelines to Implement Board Policies and to Delegate His Authority to Staff. 23. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-13, Adopting Rules of Procedure for Administrative Proceedings before the Board of Directors. 24. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSO 98-14, Adopting Administrative Rules of Procedure re Proceedings for Permit Suspension, Permit Revocation and Appeal to the General Manager. Minutes for Board Meeting 07/01/98 Page 5 of 10 25. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-15, Authorizing Acceptance of All Deeds or Grants Conveying Any Interest in or Easement Upon Real Estate for Public Purposes;Appointing and Authorizing the General Manager and Secretary of the Board of said District to Consent to such Deeds or Grants and to the Recordation Thereof on Behalf of the District and Authorizing the General Manager to Purchase Rights-of-Way and Easements. 26. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-16, Pertaining to the Procedure for Destruction of Obsolete Records. 27. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-17, Adopting Annual Fees for Mailing Agenda Packages and Supporting Documentation. 28. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-18, Approving Fountain Valley Specific Plan for Site Use and Development 29. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-19, Designating a District's Treasurer and Authorizing the District's Treasurer and the County of Orange Treasurer/Tax Collector to Invest and/or Reinvest District Funds. 30. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-20, Adopting District's Investment Policy Statement and Performance Benchmarks. 31. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-21. Adopting a Purchasing System and Policies and Procedures Governing Purchases of Supplies, Services, and Equipment 32. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-22, Authorizing the Participation in the County of Orange Cooperative Purchasing Program. 33. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-23. Adopting District's Procedures for Settlement of Claims Made Against the District; Settlement of Claims Made by the District; Collection of Delinquent Accounts Owing to the District; Settlement of Civil or Administrative Enforcement Actions; and Settlement of Worker's Compensation Claims. 34. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-24, Authorizing the Establishment of Miscellaneous Banking Accounts; Establishing Policies Governing Transactions Related Thereto; and Designating Employees to Act on District's Behalf for said Account. 35. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-25, Authorizing a Petty Cash Fund: 36. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-26, Dedicating Revenues for Payment of Obligations. 37. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-27. Appointing Representatives to Act as District's Agents in Small Claims Court. Minutes for Board Meeting 07/01/98 Page 6 of 10 38. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-28, Authorizing the General Manager to Approve Supplemental Agreements to Construction Contracts for Substitution of Securities. 39. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-29, Adopting a Course of Construction Master Insurance Program for Future Construction Projects. 40. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. 98-30, Establishing the Annual Appropriations Limit for Fiscal Year 1998-99 for the District in Accordance with the Provisions of Division 9 of Tifle 1 of the California Government Code. 41. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. 98-31, Approving the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for 1998-99, as follows: Joint Works Operating/Working Capital $45,200,000 Workers Compensation Self Insurance $565,000 Public Liability Self-Insurance $335,000 Joint Works Capital Outlay Revolving $49,284,000 Collection System Zone Operating $10,180,000 Collection System Zone Capital Improvements $22,904,000 Debt/COP Service $36,459,000 42. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-32, Authorizing Future Capital Expenditures to be Reimbursed from Future Long-Term Financings. 43. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-33, Adopting a Human Resources Policies and Procedures Manual Providing for Classification, Compensation, and Other Terms, Conditions, Policies, and Procedures Government Employment of District Employees. 44. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-34, adopting Resolution No. 75-127 by reference, a Joint Resolution of the Boards of Directors of County Sanitation Districts Nos. 1,2, 3, 5, 6,7, 13&14, of Orange County, California, Establishing Guidelines for Employee Relations. 45. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-35, Approving Memoranda of Understanding Between the District and the Designated Employee Units. 46. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-36, Adopting the District's Deferred Compensation Plan for its Officers and Employees. 47. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-37, Reaffirming and Approving Previous Agreements Between and Among Irvine Ranch Water District (IRWD), County Sanitation District No. 14 of Orange County, California, and County Sanitation Districts of Orange County, Califomia, Relating to Ownership Interests, Capacity Rights and Related Administrative Subjects. Minutes for Board Meeting 07/01/98 Page 7 of 10 48. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-38, Designating the District's Director of Engineering as having the Delegated Authority to Accept Plans for the Excavation of Any Trench or Trenches Five Feet or More In Depth for Public Works Contracts of$25,000.00 or more. NON-CONSENT CALENDAR 50. Ordinance No. OCSD-01, Adopting Wastewater Discharge Regulations as a Re-Enactment of the Regulations Adopted and in Effect by Predecessor Sanitation Districts: A motion was made, seconded and unanimously carried to read Ordinance No. OGSD-01 by title only and waive reading of said entire ordinance, It was further moved to introduce and adopt Ordinance No. OCSD-01 as an urgency measure: AYES: Burnie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harry Dotson; James M. Ferryman; Mark Leyes; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford; Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea;William G. Steiner, Dave Sullivan; Charles E. Sylvia NOES: None ABSENT: Steve Anderson; Don Bankhead; Norman Z. Eckenrode; John M, Gullixson; Anna L. Piercy; Bob Zemel 51. Ordinance No, OCSD-02, Establishing Specked Revenue Areas within the District: A motion was made, seconded and unanimously monied to read Ordinance No. OCSD-02 by tide only and waive reading of said entire ordinance. It was further moved to introduce and adopt Ordinance No. OCSD-02 as an urgency measure: AYES: Burnie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harty Dotson; James M. Ferryman; Mark Leyes; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford; Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea; William G. Steiner, Dave Sullivan; Charles E. Sylvia NOES: None ABSENT: Steve Anderson; Don Sankhead; Norman Z. Eckenrode; John M. Gullixson; Anna L. Piercy; Bob Zemel Minutes for Board Meeting y 07/01/98 Page 8 of 10 52. Ordinance No. OCSD-03, Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District A motion was made, seconded and duly carried to read Ordinance No. OCSD-03 by title only and waive reading of said entire ordinance. It was further moved to introduce and adopt Ordinance No. OCSD-03 as an urgency measure: AYES: Burnie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harty Dotson; James M. Ferryman; Mark Leyes; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford;Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea;William G. Steiner, Dave Sullivan; Charles E. Sylvia NOES: None ABSENT: Steve Anderson; Don Bankhead; Norman Z. Eckenrode; John M. Gullixson; Anna L. Piercy; Bob Zemel 53. Ordinance No. OCSD-04,Adopting Capital Facilities Connection Charges: A motion was made, seconded and duly carried to read Ordinance No. OCSD-04 by title only and waive reading of said entire ordinance. It was further moved to introduce and adopt Ordinance No. OGSD-04 as an urgency measure: AYES: Burnie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harry Dotson;James M. Ferryman; Mark Leyes; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford; Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea; William G. Steiner, Dave Sullivan; Charles E. Sylvia NOES: None ABSENT: Steve Anderson; Don Bankhead; Norman Z. Eckenrode; John M. Gullixson; Anna L. Piercy; Bob Zemel 54. Ordinance No. OCSD-05,Adopting Sanitary Sewer Service Charges: A motion was made, seconded and duly carried to read Ordinance No. OCSD-05 by title only and waive reading of said entire ordinance. It was further moved to introduce Ordinance No. OCSD-05, and pass to second reading and hearing on July 29, 1998. Director Mark Leyes opposed. Minutes for Board Meeting 07101/98 Page 9 of 10 55. Ordinance No. OCSD-05U,Adopting Sanitary Sewer Service Charges: A motion was made to read Ordinance No. OCSD-05U by title only and waive reading of said entire ordinance. It was further moved to introduce and adopt Ordinance No. OCSD-05U as an urgency measure: AYES: Burnie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harry Dotson;James M. Ferryman; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford; Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea;William G. Steiner, Dave Sullivan; Charles E. Sylvia NOES: Mark Leyes ABSENT: Steve Anderson; Don Bankhead; Norman Z. Eckenrode; John M. Gullixson; Anna L. Piercy; Bob Zemel 56. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 98-39. Directing the County Tax Collector to Include Sewer Service Charges on the 1998-99 Properly Tax Bills. 57. Ordinance No. OCSD-06,Adopting Miscellaneous Charges and Fees Relating to Industrial,Wastehauler and Transportable Treatment Unit Dischargers: A motion was made to read Ordinance No. OCSD-06 by title only and waive reading of said entire ordinance. It was further moved to introduce and adopt Ordinance No. OCSD-06 as an urgency measure: AYES: Bumie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harry Dotson;James M. Ferryman; Mark Leyes; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford; Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea; William G. Steiner, Dave Sullivan; Chades E. Sylvia NOES: None ABSENT: Steve Anderson; Don Bankhead; Norman Z. Eckenrode; John M. Gullixson; Anna L. Piercy; Bob Zemel Minutes for Board Meeting 07/01/98 Page 10 of 10 58. Ordinance No. OCSD-07, Regarding Fulfillment of Obligations under Predecessor Districts' Early Retirement Incentive Programs Granting Additional Service Credits to Eligible Predecessor Districts' Employees as Authorized by the County Employees Retirement Law of 1937, Government Code Section 31641.04: A motion was made to read Ordinance No. OCSD-07 by title only and waive reading of said entire ordinance. It was further moved to introduce and adopt Ordinance No. OCSD-07 as an urgency measure: AYES: Burnie Dunlap, Chair, George Brown; John Collins; Jan Debay; Barry Denes; Harry Dotson;James M. Ferryman; Mark Leyes; Patsy Marshall; Pat McGuigan; Darryl Miller, Eva Miner-Bradford; Mark A. Murphy; Margie Rice; Thomas R. Saltarelli; Christina Shea; William G. Steiner, Dave Sullivan; Charles E. Sylvia NOES: None ABSENT: Steve Anderson; Don Bankhead; Norman Z. Eckenrode; John M. Gullixson; Anna L. Piercy; Bob Zemel ADJOURNMENT: The Chair declared the meeting adjourned at 7:29 p.m. Secretary of Board of D' !ctors of Orange Coun anitation ' trict HMvp.dra\aeandaM 99e Jubd aoard MInut"Worea.mo BOARD OF DIRECTORS r eeeng Dx Toed.at 0Dlr. 29/9 AGENDA REPORT Item Number I en yymGe Orange County Sanitation Distract �l FROM: Gary Streed, Director of Finance SUBJECT: SEWER SERVICE USER FEE RATE STRUCTURE GENERAL MANAGER'S RECOMMENDATION 1. Consideration of the following actions relative to proposed Ordinance No. OCSD-05, Continuing and Establishing Sanitary Sewer Service Charges: a. PUBLIC HEARING 1. Open hearing 2. Verbal report of General Counsel 3. Verbal report of staff 4. Receive, file and approve Determination of Financial Rates and Charges draft report dated February 1998. 5. Receive and file written comments, if any 6. Oral public comments, if any 7. Directors' discussion, if any 8. Staff response to comments 9. Closed Hearing b. RECOMMENDED ACTIONS 1. Motion to read Ordinance No. OCSD-05, Continuing and Establishing Sanitary Sewer Service Charges, by title only, and waive reading of entire ordinance (The waiver of the reading of the entire ordinance must be adopted by unanimous vote of Directors present); and, 2. Motion to adopt Ordinance No. OCSD-05. R .CbWxMttT9 Jtim9 NWwA�RK!'OTS%BWwIwG�.Ox a..:..a: ease Page 1 SUMMARY Each property connected to a sewer within the District's service area is charged an annual sewer service user fee. These fees are collected as a separate line item on the County property tax bill. For over a year, staff, consultants and a group of citizens representing various types of users, met to review rate structures and theories. The decision of this study group, which was confirmed by the Directors, was that various users should pay for sewer service in proportion to their demands upon the system. This decision has resulted in the action being considered tonight. Consultants and staff have conducted sewer use studies and developed a rate structure that includes rates for single-family residential, multi-family residential, and 121 non- residential user groups. Overall, there are 25 different rates. These rates take into consideration the average amounts and strength of wastewater received from these property uses. The Directors have reviewed these rates, assumptions, and financial implications several times over the past year. The Directors confirmed the desire of the citizens group that the rates should be changed to reflect use, but that the rate change was not to be a rate increase in disguise. In other words, the proposal was to approximate revenue neutrality. Approximately one-half of one percent of additional revenue will be generated. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION In early June, notices were mailed via first class postal service, to the owner of every parcel that would experience a rate increase. (While it is possible that the increased fees would be paid by tenants, the law requires the notice go to property owners. Staff could not presume that rents would be adjusted, nor the extent of those adjustments.) Of the over 485,000 parcels served by the District, only 50,000 parcels will experience an increase because of the rate structure change. Over 350,000 parcels will experience reductions from the 1998-99 rates adopted in May 1997. H�.v m.�W„e ,icw.wm eo.m Mma nwuubnaemu.,rrM.ez Aa,..a. eiwsa Page 2 Staff took several actions to prepare for reactions to the notice. A special phone number was created, and nine staff members were trained to provide answers to questions caused by the notice. A special voice mail box, and a special e-mail address were also created in order to accept comments and questions 24-hours each day. Approximately 350-400 phone calls and 10 a-mails were received. In addition, there were 44 letters to the Board received which are included in this report. Many of the letters are from people who first called. Single-family residential users provide most of the wastewater and most of the user fees. Therefore, the single-family residential rate is the basis or reference point for the sewer service user fee structure. All other users have been evaluated and categorized as a ratio or percentage of the single-family residential user. The proposed structure includes ratios that range from 10% for nurseries through 796% for car washes. This demand-based structure replaces one in which all non-residential users were charged at the same 71.5% ratio. A mechanism remains in place to adjust the charge for property owners who are not connected to the system, or whose use is significantly less than would normally be expected. The ratio proposed at the first reading on July 1, 1998 for three categories are proposed to be reduced because of additional research. The ratio for category 48, convenience market, should be reduced from 151% to 41%; the ratio for category 85, combined service station and restaurant, should be reduced from 100%to 41%; and the ratio for category 88, convenience shopping center, should be reduced from 151% to 53%. ALTERNATIVES None. CEQA FINDINGS N/A ATTACHMENTS 1. Ordinance No. OCSD-05 2. Memo from General Counsel dated July 17, 1998 3. Letters to the Board 4. Draft Determination of Financial Rates and Charges HM¢Gm11yuN110.9.brilamN�WW nepombl]BBBWeileeq,,loc na..a Page 3 ORDINANCE NO. OCSD-05 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT CONTINUING AND ESTABLISHING SANITARY SEWER SERVICE CHARGES The Board of Directors of the Orange County Sanitation District (the "District) does hereby FIND: A. That the former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11. 13 and 14 of Orange County, California (the "Predecessor Districts) were nine individual county sanitation districts organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 at sec.). By action of the Boards of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single sanitation district for all purposes. The application was approved, with an effective date of July 1, 1998. As of July 1, 1998, the Predecessor Districts cease to exist, and one single consolidated county sanitation district, known as the "Orange County Sanitation District (the "District), comes into existence in place of the Predecessor Districts. The District is formed to corny on the functions of the Predecessor Districts; and, B. That a Comprehensive 30-Year Master Plan of Capital Facilities entitled "Collection, Treatment and Disposal Facilities Master Plan - 1989", hereinafter referred to as the "Master Plan", which includes detailed financial and engineering reports, was prepared, approved and adopted by the Board of Directors of the Predecessor Districts, setting forth and identifying the required future development of District Facilities, including the financial projections for providing sewer service to all properties within the individual service areas of each of the nine Predecessor Districts; and, C. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of Government Code Section 66016, and other provisions of law; and, D. That the Predecessor Districts during the years 1997 and 1998 commenced comprehensive planning, engineering and financial studies to develop an updated Comprehensive Master Plan of Capital Facilities, which studies are referred to as the District's "Strategic Plan"; and, E. That the Predecessor Districts undertook and completed specific financial studies relating to the capital needs, as well as the operation and maintenance needs of the District facilities and system for the 10 years of 1997-98 to 2006-07; and, F. That the financial requirements of the District, as successor to the Predecessor Districts, as shown in the current reports prepared by Staff and Consultants relating to the Strategic Plan, are based on current, reliable information and data relating to population projections, wastewater flow and capital facilities needs and are expected to be realized in each year of the report; and, G. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance and operation of the sewage collection, wastewater treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves; and, H. That the owners or occupants of properties upon which the fees established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process; and, I. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage; and, J. That the charges established and levied by this Ordinance are to allow the District to recover the reasonable costs to provide a service to individual parcels of real property which have been improved for any of numerous types of uses. The basis for the respective charge is the request of the owner of a parcel, for the benefit of himtherself or the occupants of the property, to receive a service based upon actual use, consumption and disposal of water to the District's system in lieu of disposal by other means; and, K That the fees established by this Ordinance, in continuation of the sewer service program established by the Predecessor Districts, are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the estimated reasonable cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID; and, L. That the change in rate schedules (which may impose rates that are lower than, equal to, or higher than the rates of the Predecessor Districts) will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The adoption of these rates will not result in any specific project nor result in a direct physical change in the environment; and, M. That the Predecessor Districts previously adopted a Final Program Environmental Impact Report in accordance with legally-required notices and public hearing, related to the Master Plan, including the financial program; and, -2- N. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a); and, 0. That the proposed changes in the sewer service charges (which may be lower than, equal to, or higher than the sewer service charges of the Predecessor Districts) are established upon a rational basis between the fees charged each customer and the service and facilities provided to each new customer to the District, a portion of which are necessary to replace the loss of ad valorem property taxes which have been diverted from the Predecessor Districts, now the District, to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years; and, P. That each individual Predecessor District previously established sewer service charges applicable to the properties within its respective jurisdictional boundaries by the adoption of sewer service charges ordinances; and, Q. That the District has, by Ordinance No. OCSD-02, established separate revenue areas based upon numerous factors, including but not limited to, geographical features, Predecessor Districts' boundaries, drainage areas, and costs of service, with the intention that fees and charges would continue at the same rate within a revenue area as existed in the Predecessor Districts, except to the extent of any individual adjustments based upon approved studies and reports; and, R. That in order to preserve the public health and safety, and in order to continue to provide sanitary sewer services within the revenue areas whose boundaries are coextensive with the former jurisdictional boundaries of the Predecessor Districts, it is necessary to re-establish sewer service charges with respect to those revenue areas, by Ordinance, effective immediately. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section 1: Purpose. The purpose of this Ordinance is to re-establish and amend the Predecessor Districts' system of sanitary sewer service charges required to be paid by property owners for the services and facilities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for the acquisition, construction, reconstruction, maintenance and operation of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. -3- Section 2: Annual Sanitary Sewer Service Charge. Commencing July 1, 1998, the owner of each parcel of real property located within the District which is improved with structures designed for residential, commercial or industrial use and which, at the request of the owner or the owner's predecessor-in-interest, is connected to the District's system, shall pay an annual sanitary sewer service charge based on the respective class of users, in the sum or sums, as set forth in Tables A and B of this Ordinance, attached hereto and incorporated herein by reference. The annual sanitary sewer service charges for residential users are set forth in Table A. The annual sanitary sewer service charges for commercial or industrial users are dependent upon the respective classifications of property use, determined by reference to Table B; the applicable percentage figure shown on Table B with respect to the particular use classification is multiplied by the applicable single family residential rate shown in Table A, to arrive at the annual sanitary sewer service charge for the commercial or industrial user. Table A establishes separate rates with respect to each of the nine revenue areas, with the exception of Revenue Area No. 14, as to which costs are paid by the Irvine Ranch Water District. Section 3: Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of: District Ordinance No. OCSD-01, which establishes Wastewater Discharge Regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto; District Ordinance No. OCSD-03, which establishes fees concerning annexations of territory to the District; District Ordinance No. OCSD-04, which establishes capital facilities connection charges; District Ordinance No. OCSD-05, which establishes miscellaneous charges and fees relating to industrial, Waste hauler and transportable treatment unit dischargers; all of which Ordinances are being adopted concurrently herewith; and any other District Ordinances and Resolutions not in conflict herewith. Section 4: Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided in Section 5 hereof. Section 5: A. Exemptions. It is the intent of the District that the legal owner(s) of parcels of real property, otherwise subject to the levy and payment of the sewer use charges as prescribed herein, be relieved, in whole or in part, from the payment of said charges, in certain circumstances and under conditions proscribed herein, and be entitled to either a rebate or a refund with respect to charges paid, as more specifically set forth in Subparagraphs B and C below, provided an inequity is established or a billing error is proven, as specified in Subparagraph B or C. B. Application for Rebate. Any property owner may apply to the District for a rebate of sewer use charges paid to the District by establishing that an unfair valuation of the property has been made by the District. An applicant for a rebate must establish, by proof satisfactory to the General Manager of the District, or -4- his designee, that an inequity exists between the amount of the charge paid and the amount of wastewater discharged to the District's system, resulting in an unfair valuation. Satisfactory proof shall establish that either: (1) The principal water use is agricultural or horticultural; or (2) The property is devoted to any other use wherein the amount of wastewater discharged to the District's system is significantly less on a regular basis than the amount that would normally be expected to be discharged by the class of property in question. Satisfactory proof shall include, but not be limited to, documentation showing actual water usage for each billing cycle during the entire period for which the rebate is sought. The amount of any rebate shall not reduce the charge payable by any property owner, whose property is connected to District's system, to less than the single family residential charge shown on the applicable Table attached hereto. C. Application for Refund. Any property owner may apply to the District for a refund of sewer use charges paid to the District by establishing that the amount paid was pursuant to an error in the amount billed or the amount paid. The applicant for a refund must submit proof satisfactory to the General Manager of the District, or his designee, that a billing error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper land use category; or (3) A clerical error has been made. D. Limitations Period. Applications for rebates and refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097, allowing for refunds for a period of four(4) years from the date of payment of the second installment of the bill claimed to be either inequitable or incorrect. E. Determination. All applications for rebates or refunds of the sewer use charge will be determined by the General Manager of the District, or his designee, who, based on the submitted proof, may grant a full or partial rebate or refund. -5- F. Administrative Fee. At the time of filing the application for rebate or refund, the property owner shall pay District an administrative fee for the processing of such application. The amount of the fee shall be equal to the total of all fees and charges imposed on the District by any other public entity, such as the Orange County Tax Collector, the Orange County Auditor, or the Orange County Recorder, in connection with the rebate or refund. Section 6: Annual Charge Based On Fiscal Year. The sanitary sewer service charges established by this Ordinance shall be effective as of July 1 of each year as set forth in Tables A and B, for the District's fiscal year, and shall remain in effect until such time as the rates adopted herein are changed by District Ordinance. There shall be no proration of such charges in any fiscal year. Section 7: Method of Collection. A. Pursuant to the authority granted by California Health & Safety Code Section 5473, and except as otherwise provided in Subparagraph B below, all charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and the District. B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner has underpaid annual sanitary sewer service charges payable to District, District, within four (4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll; (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 8: Credit For Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of District Ordinance No. OCSD-01, in an amount equal to the annual sanitary sewer service charge established by Section 2 of this Ordinance in the same manner as credit is allowed for ad valorem taxes pursuant to Sections 302.6(B), and 303.6(B) of District Ordinance No. OCSD-01. -6- Section 9: Severability. If any provision of this Ordinance or the application to any person or circumstance is held invalid by order of court, the remainder of the Ordinance or the application of such provision to other persons or other circumstances shall not be affected. Section 10: Effective Date. This Ordinance shall take effect on August 28, 1998. Section 11: Publication. The Secretary of the Board shall certify to the adoption of this Ordinance and shall cause a summary of the same to be published in a newspaper of general circulation in the District, as required by law. PASSED AND ADOPTED by the affirmative vote of greater than two-thirds of the Board of Directors of the Orange County Sanitation District at a regular meeting held July 29, 1998. Chair, Board of Directors Orange County Sanitation District ATTEST: Secretary of the Board of Directors Orange County Sanitation District Thomas L. Woodruff, General Counsel -7- TABLE A ANNUAL SEWER SERVICE CHARGES FOR RESIDENTIAL USERS Single Family Residential Rates 199849 1999-2000 2000-01 2001-02 Adopted SF R Adopted SFR Adopted SF R Adapted SFR Revenue Area No. 1 $96.41 $110.04 $120.77 $132.55 Revenue Area No.2 $74.00 $ 77.00 $ 80.00 $82.00 Revenue Area No. 3 $75.50 $ 77.00 $ 78.00 $80.00 Revenue Area No. 5 $84.50 $ 96.75 $ 96.75 $96.75 Revenue Area No.6 $79.00 $ 82.00 $ 84.00 $86.00 Revenue Area No.7 $60.00 $ 66.00 $ 73.00 $80.00 Revenue Area No. 11 $80.00 $ 90.00 $10125 $113.91 Revenue Area No. 13 $100.00 $100.00 $100.00 $100.00 Revenue Area No. 14 All Revenue Area No.14 Cods Are Paid Directly by the Irvine Raneh Water Dlsfdd Multi-Family Residential Rates Per Unit 1998-99 1999-2000 2000-01 2001-02 Adopted MFR Adopted MFR Adopted MFR Adopted MFR Revenue Area No. 1 $67.49 $77.03 $84.54 $92.79 Revenue Area No.2 $51.80 $53.90 $56.00 $57.40 Revenue Area No.3 $52.85 $53.90 $54.60 $56.00 Revenue Area No.5 $59.15 $67.73 $67.73 $67.73 Revenue Area No.6 $55.30 $57.40 $58.80 $6020 Revenue Area No.7 $42.00 $46.20 $ 51.10 $56.00 Revenue Area No. 11 $56.00 $63.00 $70.88 $79.74 Revenue Area No. 13 $70.00 $70.00 $70.00 $70.00 Revenue Area No. 14 All Revenue Area No.14 Cods Are Paid Directly by the Irvine Ranch Water Dlstdd TABLE B ANNUAL SEWER SERVICE USE FEE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1.000 SF or Unit 1 Vacant Land Parcel 0% 5 Common Area Parcel 0% 6 -Hold"Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0% 124 Oil/Mineral Rights 0% 125 Mineral Rights Equipment 0% 126 Vacant Common Area-IMP Alloc. 0% 201 Homeowners Exemption Add'm. 00% 866 Unassigned Vacant 0% 58 Nurseries(Plants) 10% 100 Drive-In Theater 10% 44 Lumber/Constr.Mal .Yard 17% 71 Parking Garage 17% 72 Paved Parking Lot 17% 110 Warehouse-Single Tenant 17% 111 Warehouse-Multi Tenant 17% 112 Steel Building 17% 113 Mini-Warehouse 17% 115 Recreational Vehicle Storage 17% 116 Truck Terminal 17% 33 Church Buildings 20% 74 Recreation Vehicle Park 27% 40 Health Club 29% 21 Automobile Dealership 41% 22 Auto Repair Shop 41% 23 Automotive Service 41% 24 Used Car Lot 41% 36 Financial Buildings 41% 39 Golf Course 41% 57 Motorcycle/Small Vehicle Bldg. 41% 83 Automotive Service Station 41% 84 Marine Service Station 41% 86 Combin.Service Station/Convenience 41% 85 Combin.Service Station/Restaurant 41% 48 Convenience Market 41% 94 Department Store 41% 95 Discount Store 41% 96 Unattached Single Store 41% 97 Strip Store 41% 7 Mobile Home 50% 55 Mobile Home Park 50% 37 Fraternal Buildings 51% 101 Unattached Theater 51% Percentage of SFR Assessor Use Code Description Per 1.000 SF or Unk 26 Airport and Related Buildings 53% 45 Marinas . 53% 89 Neighborhood Shopping Center 53% 90 Community Shopping Center 53% 88 Convenience Shopping Center 53% 3 Two or More Residences 70% 10 Duplex Only 70% 11 Triplex Only 70% 12 04-Units Only 70% 13 5 to 16 Units 70% 14 17 to 25 Units 70% 15 26-40 Units Only 70% 16 41-99 Units Only 70% 17 100 or More Units 70% 65 Single Office Slugs.To 3 Stories 82% 66 Small Office Center 82% 67 Office Complex 82% 68 High Rise Office 82% 69 Converted Residence to Office 82% 81 Pre-Schools,Nursery or Care 82% 82 Private Schools 82% 98 Store with Offices or Living Quarter 82% 99 Store with Office Upstairs 82% 118 Governmental Use Vacant/Develo. 82% 34 Dormitory, 97% 42 Hospital 97% 43 Hotel 97% 56 Motels and Motor Hotels 97% 63 Low Rise Retirement Building 97% 64 High Rise Retirement Building 97% 0 Conversion-CA,Rural PC 100% 2 One Residence 100% 4 Miscellaneous Improvement 100% 18 Developed with a Mix of Farms 100% 103 Chemical Tank and Bulk Storage 100% 104 Food Processing Plant 100% 105 Cold Storage Plant 100% 106 Factory 100% 107 Light Industrial-Single Tenant 100% 108 Light Industrial-Multi Tenant 100% 109 Research and Development 100% 114 Industrial Park 100% 119 Public Utility 100% 120 Water Mutual or Company 100% 888 Conversion-Composite Prop. 100% 32 Cemetery 8 Related Bulldings 101% 38 Funeral Home 101% 60 Nursing Home 102% 61 Convalescent Hospitals 102% 62 Converted Res. Used as Nursing 102% 28 Bowling Alleys 112% 92 Skating Rinks 112% Percentage of SFR Assessor Use Code Description Per 1.000 SF or Unit 50 Single Medical Bldgs.To 3 Stories 124% 51 Small Medical Center 124% 52 Medical Center Complex 124% 53 High Rise Medical 124% 54 Converted Residence to Medical 124% 91 Regional Shopping Center 138% 20 Amusement Parks 144% 35 Entertainment Center 144% 73 Recreation 144% 30 Coin Operated Car Wash 151% 47 Supermarket 151% 19 SFR with 1 or 2 Rental Units 170°% 76 Restaurant-Take Out 300% 77 Restaurant-Coffee Shop 600% 78 Restaurant-Dinner House 600% 79 Restaurant-Conversion from SF 600% 29 Conventional Car Wash 796% NOTE: Multiply the applicable percentage figure by the Table A Single Family Residential Rate for the applicable Revenue Area,in order to determine the annual sewer service charge for the commercial or industrial user. �-� �--� .,LO,vv � � i S- 3y '� u �' P.O.Box 2288 Fallbrook, ca. 92088 Gentlemen: I am the owner of the property located at the S. E. corner of Glassell and Katella Ave. in the city of Orange (APN 375-141-04, 114 E. Katella Ave. ) and I would like to go on record as being opposed to your method of restructuring sewer service charges. Since you have divided the wastewater into various "Categories" of users, the new se-vice charge will not be based on any factual evidence of wastewater flow. I'm sure the flow varies enormousely among users in the same "Category". As a result, some users are going to have-to pay an exhorbitant fee for this service while others willnot be paying their fair share. This method of charging users is not equitable and should not be used. Sincerely, �.Gh 07u BZ/ml Mary Judith Lowman 2314 North Bristol Street Santa Ana, Ca. 92706-1 0 1 2 Orange County Sanitation District P. 0. Box 0127 Fountain Valley, California 9272E Gentlemen: I am writing to express my strong opposition to your proposed "rate structure" change. It would mean an approximately seventy-six percent (76%) rate increase for me. (An increase from $54.82 to $96.41.) This is outrageous! The prime beneficiary of this "rate structure change" seems to be the non residential customer, I assume this is a polite term for business! i own another piece of residential property in Contra Costa County. There sewer service rate is comparable to the one I am currently paying. I believe rates should be biased on use, not type of property. I am a widow living alone. I am employed full time. Except on week ends there is no sewer usage at this address from approximately 7:30 AM until 6:00 PM. I am frequently out of town, often on the week ends, on business. Your notice states that if I think the "rate structure change" . is too high send you copies of my last twelve (12) months of water bills. I don't keep such things, but I do think the "rate structure change-, is much to high. My water bill would not be a fair indicator either. I have a large garden , a rose garden and an unusually large front lawn. Much of the water I use is for their maintenance. This water does not end up in the sewer system. i would attend the public hearing to voice my concerns, however, I am out of town on an eleven day (11) business trip. Please make my concerns part of the public record. Sincerely, /�I ��L MaryJu ith 0� wmen G &Avn�& 2204 V/Ww taatan r'"" Orange.CA 92867-1718 (714)974-0072 019 June 13, 1998 �GNa Sanitation District (714) 593-7281 � �.�i /r P. O.Box 8127 RA Fountain Valley,CA 92728-8127 Reference: 2126 East La Palma Ave., Anaheim, CA Dear Sir/Madam, As owner of the above referenced property I am responding to the"Notice of Public Hearing July 29, 1998 received today. I find your suggestion that rates for sewerage be increased over 68.9%(from$43.80 per 1,000 square feet to$74.00) an insult to any reasonable person. Your suggestion that I send you the past years water bills to determine the sewerage usage expectations for this"category"of single-family home is ludicrous. By far,most of the water usage at this address goes to watering the from&back lawn,planters&common areas of the apartments at 2128 E. LaPalma Ave.,Anaheim, CA which are also our property and next door. This water does not go down the sewer in any form I vehemently object to your proposal and recommend you arrive at a more equitable way of determining the fee for service provided to each parcet Every segment of American business has had to cut costs and become more productive to meet competition. You could mitigate the need for upward rate changes if you had a successful cost avoidance&productivity improvement program in your organization. I find your current approach severely lacking in determining a fain and equitable allocation of tees. Please see that those who use your services are charged accordingly to use and not based on some"category"of user that does not represent individual impact. Cut increases in fees, if any,to something that makes sense or decrease them as you reduce your costs and/or improve your productivity. Given the facts,you can't believe an increase of over 68.9%is realistic or justsed. Charge for usage,perhaps based on occupancy numbers not property improvement square footage. Thank you Sincerely, June 14 , 1998 Orange County Sanitation District PO Box 8127 Fountain Valley, CA 92728 Dear Sirs: This letter is in reference to the proposed sewer service charges: My home water usage averages 12.5 hcf per month. That's for two senior citizens in the city of Anaheim. I pay user fee #2 of $73.00 on my tax bill. I operate a machine shop/light manufacturing in a 4620 square foot industrial building. There are five employees. We have only two bathrooms and no processes requiring additional discharges. The industrial building averages 3.00 hcf per month in water usage and pays $241.05 per year for sewer service charge. The shop uses 1/4th the amount of water that the residence uses and pays three times the sewer service charge! Any way you look at it. . . . . . .that is totally an inequitable assessment. Now you inform me that the district is proposing an increase to $72.00 per 1,000 sq ft! That would be $341.88. That means the shop would pay 4.68 times more than a residence and still using only 1/4th the amount of water. In other words, the industrial user will be paying over 18 times the residential user for the same amount of discharge! I'm assuming you calculate the amount of sewer discharge equal to the amount of water usage as I have done here. Your method of calculating based on square footage is truly unfair. Good grief; what does an owner of a huge warehouse with two restrooms pay? Thank you for bringing this inequity to my attention. -Zincerely, d2 tw( l Q11R9-1. rman T. Ja i 714-774-9104 7 AMERICAN RESOURCE MANAGEMENT, INC. Sam 2582 Santiago Blvd. • Orange, California 92867 • (714)974-5130 Warren H. Kelsey PRESIDENT June 15, 1998 Orange County Sanitation nistrist P.O. Box 8127 Fountain Valley, CA 92728 Re: Rate Restructure Since you have"detailed financial and engineering studies and reports", in which to base a rate increase, I am going to put you to the task of proving your data. We occupy a small office building with two (2) restrooms. There is no way that you can rationalize maintaining the"adopted fees" for single-family residences where they have been, and yet increase the cost to us. Please send me a copy of your schedule of adopted fees for residences along with the reports you will base your cost allocation uponrwhich will create a fair bases for billing "proportionate charges". I would like to have this information prior to the July 29th meeting. Since y, June 15, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 RE: PROPOSED INCREASE IN SEWER SERVICE CHARGE GRAND COMMERCE CENTER—600—660 S. GRAND AVENUE APN 011-31343 To Whom It May Concern: The purpose of this letter is to state that we do not agree with the proposed increase in sewer service fees for the above referenced property. Our company is a tenant at Grand Commerce Center, a 101,000 square foot industrial park, and our rental rates are subject to increase if the sewer fees are increased from $65.32 per 1,000 square feet to $96.41 per year, a staggering 48% increase. We do not feel the increase is fair to the tenants and request that the Sanitation District Board of Directors reconsider increasing the sewer service rate structure. Sincerely, Tenant ES OLISINEERINO,I 830SQaIdAw./f10 8111111111ft CA om uemwE Vac ATA UIS Vm. TroHwS wLl TW 0'SN ETu EGseR WE we INN LAVMY'S 1RESTAU INC APN: 052-181-31 June 15, 1998 Orange County Sanitation District PO Box 8127 ' Fountain Valley,CA 92728 Dear Sirs: Although I will pay more than in the past I understand and support the basic idea of charging for actual services used,but I have a several questions about the new sever charge procedures. 1)What category of users am I included in? If it is"restaurants" is there any differentiation among types of restaurants? 2)What are the factors considered in"strength of the discharge",and how was the information arrived at for my category? 3)Why is my charge stated as a rate per thousand feet of developed property? What is the relationship between the volume of water used,and the sever charge fee? Is there any adjustment for the fact that much of the water usage at our location is for landscape watering? 4)Is there a surcharge in newly developing areas to cover the cost of new sewer construction? Sincerely, Scott Armstrong Vice President Finance and Administration 234 E.CoWaoo Sw"ro.Suite500•Pasaeare,Ca0/orrda91101-2206•(818)440-5234"Fax:(816)440.5232 NEW ELL L LIUENOUIST FIRM, ilmiwlwl�lwll SHOPPING CENTER June 16, I998 Orange County Sanitation District P.O. Box 8127 Fountain Valley,CA 92728 Re: Service Charge Increase I Protest Dear Sirs: This letter is one of protest to the Sanitation District's proposed service charge increase which you have just notified us about. An increase of over 800%as reflected on your notice to us is unconscionable if not unconstitutional. The CPI increase was just .6%over last year which would indicate to us that inflation is still well under control and not enough to justify the type of increase you are seeking. An increase of this amount will seriously injure business and may put some out of business who are still struggling. I don't think this is the intent of the Sanitation District but it will become the reality if this increase goes into effect. We urge you to seriously reconsider this matter. Sincerely, TU TELLA OPPING CENTER Kevi Anderson Pro erty Manager PO.BOX$5N.ORANGE.CALIFORNIA 9E613-5N4 ■ TUSTIN STREET AND"TEL"AVENUE ■ 1714109-1010 ALBERT T.&IAMEE B.HENDRICKER 8452 GRACE CRACE HU TINGTON BEACH,CA 92646-3125 June 16, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728 SUBJECT: PROPOSED SEWER SERVICE CHARGES RE: MULTI-FAMILY RESIDENTIAL PROPERTY(APN: 110-021-04)-FORMAL COMMENTS OPPOSING APPROVAL Dear Sir or Madam: This letter provides written comments relating the pending changes to sewer service charges to be discussed at a public hearing on July 29, 1998. I am opposed to the charges proposed for multi-family dwellings as being excessive and inappropriate. The notice indicates that the current annual service charge has been based upon flow monitoring reports and census data, resulting in a per unit charge equal to 70 percent of the charge for a single family dwelling. This percentage is grossly inflated as related to the subject multi-family,property located at 17051 Sims Street,Huntington Beach, CA 92646. I have enclosed a table summarizing a comparison of water use between the subject multi-family property and the single family property,both of which I own. The summary reveals that the average water use,and thus,the average sewer flow,for a multifamily property unit is only 23 percent of the flow for the single family property. However,the current charge for service is 70 percent. This results in an overcharge of 300 percent. I realize that strength of wastewater is also considered when determining an equitable rate structure for service charges,but the strength of wastewater from the multi-family property and our single family property are essentially the same. Since the stated purpose of the pending rate change is"to more equitably allocate costs to users", the information presented here indicates that the pending changes would continue and exacerbate the current inequity. Not only should the Sanitation Board of Directors disapprove the pending service rate change,but they should approve a reduction of service charges for this multi-family property and possibly others in the area. Yours truly A. T. Hendricker enclosure A RA klft DAVID K SCHULTZ INCORPORATED REAL ESTATE INVESTMENTS• PROPERTY MANAGEMENT AN ACCREDITED MANAGEMENT ORGANIZATION® June 17, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Re: Proposed Sewer Service Charges - Public Hearing July 29, 1998 R-* Am- N- Ofo Dear Representative: As the owner of a 70 unit apartment building located at 1331 W. Central Ave. in Santa Ana, I feel that I must formally notify you of my opposition to the dramatic increase to already high utility rates proposed in the enclosed Notice of Public Hearing. I find it very difficult to believe that sewer cost and usage in a large apartment building could reasonably be allocated at 70% of the single family dwelling rate -- certainly greater economies of scale should be realized for larger building such as this. By increasing our utility cost by nearly $1,000 per year,you are creating a major and unfair negative cash impact on owners of larger multi-family housing properties, and I am requesting that you perform a more detailed analysis that more accurately represents real costs for buildings such as this. If you would like to discuss this further, please feel free to contact me. Sin a y, David N. Schultz, CPM° President DNS:sjk Enclosure 715 North C="Avmor,Saia 300•Glendale,California 91203-1225 Tdcphooe(818)240.1070•Rd Ewa Saks Fu(818)242-5882•Propmy Management Fn(818)545.3688 CEDARGROVE BUSINESS PARK ` 448 Isabella Terrace Corona Del Mar, California 92625 Telephone: (714)644-6600 Fax :(714) 644-8721 June 17, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Re: Rate Increase—APN231-123-01 Gentlemen: This letter is to inform you that we object to the very substantial increase in the rate structure that you are proposing. It is difficult for us to understand how you can justify a 41.8% increase in the rates when the cost of living is only rising at a 3% level. Further, we believe that we have a substantially lower than average water use and are eligible for a reduced charge. In that regard, enclosed are our water bills for the past 12 months. We look forward to your response. _ N Sincerely, cY�Gf Cedargrove Business Park, By: RPT Properties, Its General Partner By: Ronald P. Tomsic, General Partner RAMADA INN - SOUTH DISNEYLAND ANAHEIM / ORANGE June 18, 1998 Sanitation District PO Box 8127 Fountain Valley, CA. 92728-8127 Dear Sir or Madam: In regards to the Notice of Public Hearing that we received today, I would like to have a few more questions answered: How much are we going to have to pay more? Noi our area in general, we want to know how our property is going to be affected. Why are the rates going up if our business is going down? We do not agree with this measure and want our questions answered right away. We have been patient with all of the inconvenience that has been brought to us by the City and State legislators only to have another means of costing us money pop up. We do not stard behind this ridiculous set up any further and expect to hear from someone soon. Thank you, in advance, for your speedy response, Respectfully Yours, ✓r G1 Morlena Hamm Guest Services Manager 101 N. STATE COLLEGE BLVD. • ORANGE, CA. • 92868 PHONE: 714-634-9500 EXT. 290 • FAX: 714-634-4751 June 18, 1998 Sanitation District P.O. Box 8127 Fountain Valley, Ca. 92728-8127 Re: APN'S: 1 10-401-20 & 21 Dear Sirs, This letter is in response to the "NOTICE OF PUBLIC HEARING" regarding the proposed increase in sewer service charges. I am the owner of 2 four-plexes whose addresses are 6182 and 6202 Warner Avenue, Huntington Beach. I am opposed to the proposed increase from $42.00 to $56.00 per unit charge for one year of sewerage service for my multi-family residential property. I can't believe that my MFR parcel would use nearly 3 times the amount of sewer services than a SFR parcel (based on your data of 'the proper charge per unit should be 70% of the single-family residential building"). Each of my four-plexes consist of a 3-bedroom, two 2-bedroom and I-bedroom unit. Their are no swimming pools, no spas and very little landscaping, indeed the only lawn area at all is a small area in front of the 3-bedroom units. Such amenities are very common on SFR parcels. Also, I have one washer and one dryer for all 8 units, the units face each other. These are just a few of my reasons for opposing your proposed increase. Sincerely; 0.4[ D` awl- Murry F. Darch 10259 Bunting Ave. Fountain Valley, Ca. 92708 (714) 962-4565 GTI MANAGEMENT COMPANY LP 10802 NccARTNVR BOULC VrLRO SUIT[ a00 IRVIN[. C/rIIVORNII, Oa01a-lass TELEPHONE 19401003-A37 rwx 19401 833-0322 .rw.0 exer».R DOxuo N.N L,Evn Nnxxr Iunnnq,CRn rq Om neMee June 18, 1998 ORANGE COUNTY SANITATION DISTRICT P. O. Box 8127 Fountain Valley,CA 92728-8127 Re: Proposed Sewer Charges Gentleman: We are in receipt of a certain notice specifying your intent to raise our sewer char by approximately 40%. The property involved is a 115,000 square foot wareho an manufacturing facility located at 5595 Fresca Drive in La Palma Though we understand the necessity of adjusting fees periodically to compensate for inflation and other expenses,40%would seem quite excessive. Your notice states that our property's share of the annual cost of operating the sewerage system amounts to $6,178 now. Does the 40%increase mean that the new fee will be$8,650?If so,that will work a hardship on the business at this address.Therefore,we ask that you reconsider. Since we will be unable to attend the public hearing on July 29th,we ask that you take into account our request-particularly if the subject costs are being redistributed by reducing the fees on residences while loading the shortfall back onto the backs of local businesses. Surely there is a more equitable solution. Sincerely, GTI Management Co.,LP, p. as Agent for GT 88�� Xeterclette Property Management and Maintenance P.O. Box 9826 • Anaheim, California 92812 • (714) 778-0480 FAX (714) 491-0864 June 19, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92727 Re: APN: 418-181-01 2831 Bristol Street Costa Mesa,CA 92626 Dear Sir, This letter is in response to,your letter regarding the Proposed Sewer Service. We are unable to attend the Notice of Public hearing on July 29, 1998,but we would like to register opposition to anv type of increase. If you would like to speak to us regarding this matter, please call. Thank you for your cooperation. Sincerely, ME Property Management Agent for Owncr �u7�Ctc�rr._ . _ -- - -1&AIM. US POSTAGE ORANGE COUNTY SANITATION DISTRICT PAID P.O. BOX 8127 PERMIT AN 1973 CA FOUNTAIN VALLEY, CA 92728NO. 2: CB- RETURN SERVICE REQUESTED gg C: CB( 4: CB: REWS, THOMAS E TA —' iX 9541 CAITHNESS DR HUNTINGTON BEACH CA, 92646-6001 9It 4 Is ito OT Illlnultll"nllult�'ut'Iullnf�Inunll l�ulul�'nt"� QUESTIONS & ANSWERS Nut Is a sanitation district? A samution district is an mapeMx district Verged with the responsibility a sdalY callectin}tramina and aaposiop wasNwatm bamwel and iMwMel waste. It is a public soOrm. amended from the County at Orange or idly elty WY.-pram, established motor me stile Worth anal sdery cons ao provides mwma,a mvi.. le a specific pmll,mixo me sanitation District Is aevmmd by a deice of Directors comprised Or the presiding officer• of the local amwerinp .,., Or title.within bur,470-muara-mile amyico area. Nut Is a service charge? How Is it calculated? The cost of operating, maintaining, den upp.edin, the sewmape system is promniwuoy distributed an" an made of the system based on their wastewater discharge. "a resulting charge, mhW taking all other sources of oevesua Into cc nsidarstiun, is celled the service sharps. Although the m ce damage Is a fad for assets. r..d l.d mM not a ta, it is collected annually on the property tax bill. The mmmovetm disWrpa far a phwn Wool is estimated meerdirg to the type and site of the miuctures located an the ,veal. For residential armortim, was,Is based on the number el dwelling more (e.a. stogie-IemllY home. meremems, mc.). For den esidantiel Wools, w is primarily based an developed Opera footage, although other memnam may ba used in limited same. Information on the type and die of your propeol r Is obtained from the county Assessor's office, and the service ohm" Is calculated posed w estimated term for Mat tyre of property. What if this Marge Is too high? Use n a ti have substantially lower than damage water wa we eligible far a reduced charge. It you think Yen WIiW, mail fee District copes of your water bill for the last 12 months. Staff will review your situation aM will r...and n mitt g I already pay a sever charge on another bf II. Is this a duplicate sager charge? The ether cast,. may reflect a chmga for tee counsel. eM meh... Of year Ideal ..war .,stem, whiah Is Owned by vow City, water district or sanitary district. That system Collects the Sheldon from your pawn, earvays It through he se twer. at,..,..year Intel at,ae , eM ultimately pointers It to the Inge flunk a.. and beat. plmla that make up dersenitdehen Disbict'e System. The smitetidn District does not resolve airy of NIs moray. Do I need to pay a serif ce charge if my property Is net oermected to a sealer systes? The sanitation District's service charge ordinance only apples toWool$ that a mated to the sewer system Parcels the, m e snare .ystam me exempt from SmicaUmn DINin's aewm ..-In. Mttw,m. "If. — have abempmd to Identify ell Moeis tin mil as a ample ayoom, It Is possible test a may have missed some. If Olt is yew sitaticn, plane write to us and Imlude the ewtim Of thi. mtico ...east, Year A.......a gravelft. wife the mtnien, -apt adnl,ecled to sane st r syem.' Upon nnificde mnn lm, wa will prly make an ".site visit to crick your prMrty to deeify that It Is not connected to the sower system, and wmav yew pareal from the 4mpe roll. Am I required to respond to this fall You ar pet ratio ran to respond to this notice. This entice is balls spot to notify yid of the public evening that has bath ..Moiled. should You deal,., You may abed your women Input an the new rate nrunva to Me address .1. Year mxrmmnts will be read and owes ed during Ne public Melied. Date: 7/7/98 Time: 12 :53 :04 PM S • S . SIKAo-41 1S2o1 Exv+�nelL P'�\ ISS•v« VETO C& g26nz r OMN 1rnN ��LLE�I � C}� q1--'� 'ZQ'- 01Z1 C-k+Ae-cEr REP: QRafaa3� : 1 0gl2 PAL«I,- V% Srr , CrARoEN "VE V+ �rk+.T1N4- TO PMTe.ST 4,C.L �^js? Twr� QR>Pe 5 6 D \«f R2p3 f F� IRS P6�fI<I`* M FP e^ q 3 T a � S 1 to . Q£R- .�4 N� T-• SEa,r&1L SER.n�.E �Ffy' �He. N6T ISE tA-%." Sot E�� oyi wo, cr- _ �^ ✓ITS `ice. •r\NN.tr TAB \N/ prg-r- n./T -T*rC ti v\ -E o¢ (fie-Dk KWU 14 E --4 'nNiT _ o - CF.-✓cam \^s4t.R IS TV of- N�� oF- \tj)i SIT'A�wrs , N ,V\RR.O- aF ff r,& P-EA) 41 IN fe./o (mod Tti ae (bEDA—coA IANITl FAQ- 4LEF:(!S -net y- ONNiv\6ex )ri Owe- NQp- a ul-ITS ' S\Nc�L Pr-i off- "m V.N1TS P4S ONE wp..,rM MNITS 1T It NOT F#-P- I-WPT \ 9We,->_A eye-TNT SA-Mt M-I-e- 'I\'S Two P.N9 -rHr-G.-9z Ne.{a V.r,\*TT General Offices • 901 E. Imperial Hwy. La Habra, CA • 90631 • (714) 871.2700 . Service Center • 4177 Rowland Ave.lej El Monte, CA • 91731 • (800) 882.77= Appliances • 7V$ •Audio • Video • Sales and Service June 19, 1998 Sanitation Board of Directors Sanitation District PO Box 8127 Fountain Valley, CA 92728-8127 RE: Proposed increased sewer service charges We are in receipt of your proposed increases) at our two properties: 951 E. Imperial Hwy,La Habra, APN 019-111-68, and 901 E. Imperial Hwy,La Habra,APN 019-1 I1-72 located next door. It appears 370/6 of the increase/decrease will be rate increased,unfortunately Howard's is 100%. #APN 019-111-72 represents a 15%increase from an already high"service charge'. #APN 019-111-68 represents a 4000/6 increase for an existing business that hasn't changed in around seventeen years. I understand from your notification that your Service Control Division could issue a permit to us with no fee increase. This would be appreciated. No business wants tax increases nor imposed service charge increases. I could understand if drastic changes had taken place at either address. Neither business has changed nor increased sewer service. I request the Sanitation Board of Directors to review both of these increases and reduce both in a fair appropriation to all. Howard's cannot attend your hearing on 7/29/98 and wishes your Board to reduce these increases at both address locations. Sincerely, Ron McLean 6 SUPERSTORES TO SERVE YOU 0 E.Valley Boulevard•San Gabriel,CA•91776-(626)288-4010 3300 E.Willow Street•Long Beach,CA•908M•(562)427.0964 1 E. Imperial Highway•La Habra,CA•90631 • (714)871-5830 25272 Cabot Rd.,Laguna Hills,CA 92653•(714)470-299C 58 W.7th Street•Upland,CA•91786-(909)949-8584 7532 Edinger Ave.-Huntinglon Beach,CA•92647•(714)841-544i AYYAD GHOBRIAL 8412 Northport Dr., Huntington Beach, CA 92646 _ 17141530.4050 FAX (7141536.4050 June 22, 1998 Mr. Gary Street Director of Finance Orange County Sanitation District P.O. Box 8128 Fountain Valley, CA 92728-8127 Re: Proposed sewer service increase. Dear Mr. Street, I am a property owner in Santa Ana and received the notice for the proposed sewer service charge increase. I called the Sanitation District Staff and discussed with them some of my questions. During my discussion, I understood that there is a report regarding these changes. I am interested in apartment units. I noticed that in the same City " Santa Ana " the rate change from $54 .82 to $67 .48 an increase of 23%- in District 1 and in District 2 the change was $43 . 80 to $51.8 an increase of 18$. Both buildings in Santa Ana. In order to raise my concern to these increases, I would like to get a copy of this report or the portion of the report that deals with the apartment units. I would appreciate receiving this information before the public hearing. If you have any questions please call me at (714) 536-4050 . Sincerely yours, Ayyad Ghobrial AG/VP/hle June 24, 1998 L111 Orange County Sanitation District P.O. Box 8127 PATROL Fountain Valley, CA 92728-8127 ONE RE: PROPOSED INCREAS IN SEWER SERVICE CHARGE GRAND COMMERCE CENTER - 600 - 650 S. GRAND AVENUE APN 011-313-03 To Whom It May Concern: The purpose of this letter is to state that we do not agree with the proposed increase in sewer service fees for the above referenced property. Our company is a tenant at Grand Commerce Center, a 101, 000 square foot industrial park, and out rental rates are subject to increase if the sewer fees are increased from $65.32 per 1, 000 square feel to $96.41 per year, a staggering 48t increase. We do not feel the increase is fair to the tenants and request that the Sanitation District Board of Directors reconsider increasing the sewer service rate structure. Sincerely, 6 Bi ancroft President PATROL ONE P.O. Box 5487 / Orange, California 92667 / (714) 538-1004 / Fax (714) 538-1435 AUBURN MANOR HOLDING CORPORATION 4020 SIERRA COLLEGE BLVD., 8200 _ ROCKLIN, CA 95677 (916)624-6200 June 24, 1998 Orange County Sanitation District Post Office Box 8127 Fountain Valley, California 92728-8127 RE: APN: 028-651-12 (330 W. BASTANCHURY ROAD, FULLERTON) APN: 500-131-08 (1051 BRYAN AVENUE, TUSTIN) To Whom It May Concern: We wish to register our objection to the revised Fete structure proposed by the Orange County Sanitation District. If this rate structure is enacted, our rates will increase by 36.54%and 55.6°/y respectively, for the properties referenced above. We contend that this is an exorbitant increase. Since we are unable to attend the Public Hearing on July 29, 1998,we ask that you include this letter as evidence of our protest. Thank you for your kind assistance. Sincerely, TIN A. N_AB.vION President MAH:jmb . ''— t3502 Hamburger Lane The Beet Enterprise Baldwin Par26California)B 13-82001106Sflfl5 IN-N-OUT ISAFree Enterprise NC BURGER June 25, 1998 . Sanitation District PO Box 8127 Fountain Valley,CA 92728-8127 To Whom It May Concern: We are deeply concerned by the proposed sewer service charges of the Orange County Sanitation District. Seven of our restaurants stand to be negatively impacted by this proposal. If passed,this measure would impose a significant annual rate increase. In certain locations,this can represent a 100%increase in sewer service charges. The change in rate structure would unfairly affect all business owners and certainly put additional cost concerns upon restaurant operators. We urge the Orange County Sanitation District to explore alternate methods of generating revenue. Respectfully, Dan Milojevich" Director of Support Services In-N-Out Burger for Store 17 315 North Bristol Street,Santa Ana,CA 92703 Store 19 9038 Trask Avenue,Garden Grove,CA 92644 Store 24 600 South Brookhurst Street,Anaheim,CA 92804 Store 32 104 Placentia Avenue,Placentia,CA 92670 Store37 6292 Westminster Boulevard,Westminster,CA 92683 Some 38 594 West 19'Street,Costa Mesa,CA 92626 Store 42 7926 Valley View,Buena Park,CA 90620 The Customer Is Everything To Us r7 S&D ASSOCIATES June 26, 1998 Orange County Sanitation District P.O.Box 8127 Fountain Valley, CA 92728-8127 We are in receipt of the Notice of Public Hearing regarding the proposed sewer service charges. We represent approximately 20 parcels in the Orange County area and do not want our sewer service rates increased. As a sample, the proposed increase in the rates for two of our parcels are as follows: Parcel # Old Rate New rate Percentage change 070-191-23 $53.63 $114.00 112.60%increase 108-253-11 $52.20 $74.00 41.800/vincrease Over the last two years, we submitted our water use documentation and secured refunds of O.C. Sanitation overcharges on 90% of our Orange County parcels. We have been overcharged for many years. Given this, how can we now be required to pay higher rates. The notice provides for increases of over 100%of our current cost per thousand. The sanitation district's costs did not increase by 100% in one year. This increase is a bureaucratic stumble by the Sanitation District. Increases should be equally distributed amongst the sanitation district's users according to their proportionate share of usage if this is verifiable and documented, otherwise it is selective dia^.rimination. We are happy to pay for the sanitation services we use and believe we have been doing this and more. Before you increase the rates with which you have been overcharging us for at least the last 5 years, we want documentation of your studies indicating the necessary increases and the flows for each of our parcels. Please have a representative phone us to provide us with this information. Yours trul , S & D cia Da an Porreca Property Manager SMOC SeNSncM.W8 1020 N.Batavia,Suite B•Orange,CA•92867-55W (714)997.79N•Fax(714)997.4930 EAR 0 INC. June 30, 1998 Orange County Sanitation District Post Office Box 8127 Fountain Valley, CA 92728 Re: APN 014-331-24 OWNER David Jones -25 OWNER Peterson/Chase -26 OWNER Vertox, Inc. -27 OWNER Vertox, Inc. -28 OWNER Vertox, Inc. -29 OWNER Vertox, Inc. -30 OWNER Vertox, Inc. -31 OWNER Vertox, Inc. Gentlemen: As the Operator of Landmark Business Center, a non-profit or- ganization, formed to manage the common area and utility install- ations of the above referenced parcels; we are hereby protesting the proposed 47% rate increase for sewer services to our Center. We are basing our protest on the ambiguous criteria contained in the Notice of Public Hearing which we received on June 18. In Paragraph 3 you state that the charges will be based on a CATEGORY of users. Then, in Paragraph 4 you state that the charges will be based on the strength and flow of service provided to the parcel. We believe that we are being unfairly categorized and are being grossly overburdened by this supposedly more equitable allocation. We also believe that the previous method of determining rates which was based on experts' studies and reports is a far more equitable method than the recommendations of a committee of self- serving individuals. Our Center has one City water meter through which water is distrib- uted to each of eight private meters which we read bi-monthly for the allocation of charges to each owner or tenant. Each of the buildings has different uses and although they are identical in size and all contain two single toilet restrooms, water usage varies to the extreme. The water usage is directly proportional to the number of employees. We believe our contribution to the sewer system, in both quantity and quality, is not excessive and we are requesting relief from the proposed rate increase based on this premise. (continued) 1305-A E. Salnt Gertrude PI.-Santa Ana, CA 92705- 7141979-7861 FAX 7141979-7863 We find it difficult to comprehend why we are being required to effectively subsidize the rate reduction of some other category of user. Furthermore, you state that there is no pro- posed increase for single family residences. We find this to be ridiculous in light of the fact that a generous proportion of the SFRs in Central Orange County are occupied by two and sometimes more families! We have enclosed copies of our water bills for the last twelve month period together with a re-cap of the various occupancies and water consumption per building. With the exception of 1311-C which has a clarifier, none of the tenants discharge anything other than occasional human waste and water into the system. Buildings 1311-B and 1311-D use water for cooling their mach- ines which is the reason for their somewhat higher consumption. We request that our views be aired at the up-coming meeting and we thank you for your consideration of our request for for relief. 4Sc sly, ,� Robert A. Ricks Operator Landmark Business Center Bncl: (13) Page 2 July 1, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728 Re: Public Hearing APN: 427-061-04 July 29 th. 1998. Address 200 East Paularino Ave. Costa Mesa. Dear Sirs: We are in receipt of your notice regarding the proposed increase in sewer service charges to property owners. Currently we are paying $784.63 for a 20,000 square foot building and the proposed increase will make the yearly bill come close to $1200.00. This type of increase might be equitable if there were more employees in this building. That is not the case for this property, as it is used mainly to transmit information. As MediaOne has just signed another lease with us and extended their commitment to use the property for at least another 15 years we do not foresee any changes in the use of the property. We ask that you do not increase the rate for sewer service to this building. Please make our letter a part of the record as we object to any increase from the Sanitation District. Yours truly, ox�'�' a _ Malcolm P. Bogh Sian (949)6754265 141 Via Waziers Newport Beach, CA 92663 Thursday.July 02,1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley,California 92728-8127 Re: Rate Increase APN-390-662-05/390-662-15/390-662-14/390-662-04/ APN-390-481-06/390-481-07 I am writing to voice my disapproval to the rate increase. I own residential,as well as commericial,parcels,and I do not believe the type of Increase described in the Notice of Public Hearing July 29,1998 at 6:30 P.M. Is necessary at this point. An Increase from $52.20 to$74.00,and also from $52.20 to$60.68, is actually quite significant. It seems to me that there should be additional public forums to discuss the Issue. The entire budget ofthe district,expenses and income should be put forth for review. Please let me know ifyou would like further information. Sincerely, F 1336 ap n en Orange,Callforn 66 014) 532-6878 cc: fg enclosures 2 July 1998 Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Dear Sirs: This is with respect to your recent notice of public hearing regarding the proposed sewer service charges. I apologize but I do not understand the proposed charges. I am currently paying $116.10 per year. Please explain the statement in paragraph 5 which states the following "the per unit charge for your multi-family residential building will increase from $58.05 to $84.50 per unit for one year of sewerage service." means to me - is it that I will still pay $116.10 plus $84.50? The reason for this increase is extremely weak - "the reason for the charge is that the total costs of operations and maintenance of the system including necessary reserves, cannot be met solely from the portion of the property taxes received and from other sources of income. " First of all, what connates "other sources of income"? And second, "cannot be met solely from the portion of the property taxes" is not sufficient to warrant an increase as we have such a surge in home building all over the county which, correct me if I am wrong, provides for an immense amount of property taxes and sewerage funding? In summation it seems to be extremely poor planning on the Orange County Sanitation District's part as well as that of the Board of Supervisors - but what else is new for Orange County but extremely poor managers who cannot manage - but isn't that why you all are in government? I would appreciate a response. 4ncSiely, ea on Bay Newport Beach, CA 92660 LWS:p Ann Lindsay 9411 Woods Lake Road Monroe WA 98272 (360) 793-0938 July 3, 1998 Orange County Sanitation District PO Box 8127 Fountain Valley, CA 92728 Re: APN: 096-063-01 Address: 7232 2151 Street, Westminster Thank you for your recent Notice of Public Hearing regarding proposed sewer service charges to the owner of record of the parcel listed above. Since my brother, John Edwards, who was the previous Trustee for the L.P. died this last January, I have taken over handling the business for the partnership. Consequently, could you please be so kind as to change the mailing address on any future communications to Mary Edwards Family L.P. from the PO Box 22617,Pagosa Springs, CO to the address listed above in care of Ann Lindsay, Trustee, C Thank you. /Sincerely, Ann Lindsay - Trustee Mary Edwards Family L.P. /al cc:file RM12822 Garden Grove Boulevard, Suite D,Garden Grove,California 92843 (714)638-5550 Fax(714)638-6047 July 9, 1998 Orange County Sanitation District Public Utilities Commission 108"Ellis Avenue Fountain Valley,CA 92708 Dear Commission Members: We are writing on behalf of our 3,000 members in Orange County regarding the Southern Calioomia Water Company's notice of proposed rate increase, dated May 20, 1998. This proposal calls for a 17.48% increase over present rates in 1999; a 5.016% increase in 2000; and a 5.13% increase in 2001. The annual rate increase amounts to $3,286,200 in 1999; $1,120,200 in 2000; and$1,193,400 in 2001. The document explains that, "the increase in rates is partly due to an increase in operating costs for items such as labor, payroll taxes, postage, liability insurance, depreciation, materials, purchased services, increased rate base, cost of capital and the general office revenue requirement allocation." The association has significant questions and concerns regarding some of the reasons given for the rate increases and we hope to find answers that are both logically and fiscally sound. It is questionable that labor in today's market has increased 17.48%. Payroll taxes, according to association records,have not experienced a significant change during the last five years;they are based on the amount of payroll. In actuality, the percentages have remained constant, until one reaches the $60,000+ bracket, at which point FICA taxes have been increased in minor amounts over the last few years. As far as postage goes, there hasn't been an increase in standard first-class postage rates since 1995. A current proposal by the U.S. Postal Service calls for a one-cent increase, which might be implemented in 1999. Liability insurance rates have remained relatively constant in our industry as well. It is uncertain as to its current status in the water distribution area, however, based upon the amount of risk and claims in the apartment industry versus the water industry, it is doubtful that their liability insurance has increased at all With respect to depreciation, the association finds it difficult to understand how this has increased operating costs. Depreciation occurs over a fixed term and at a fixed amount. It should not fluctuate once it has been booked A nonprofit organization Jar the advancemear of the rearal housing indwtry The association does agree that material costs have increased slightly in recent years, but nowhere near the rate of 17.48%. Even if amortized over the course of two or three years, that would be a significant increase. Material expenses probably accounts for only a small portion of the total expenditure of the Southern California Water Company. With respect to purchased services,the majority of the contracts that we negotiate in our industry have not increased over the last three years— some have even decreased. With greater economic prosperity, however, we do anticipate some increases in the future. However, that increase should come nowhere near the rate of 17.48%. The association is still trying to comprehend the "increased rate base" definition. Does this refer to additional customers coming on line? If that is the case, then the actual cost per unit should decrease as the base itself increases. This is an area in which additional explanation is needed. Cost of capital is another area that raises questions with regard to the justification for a rate increase. Apparently the Southern California Water Company has not been following the lending market or the current costs of capital and consequently it has not seen what has happened to rates over the last three years. We are now at a 30-year low in cost of capital. Using the cost of capital as a justification for increasing rates on the rate payers is highly questionable, both from a practical and economic standpoint. The Southern California Water Company should be using good management practices to refinance its debt(if any)to reduce its costs. These added savings should then be passed on to the rate payers. Finally, the "general office revenue requirement allocation" appears to be an attempt by Southern California Watcr's corporate office to obtain additional revenue. The the rate payers as the "untapped" source of this revenue could be interpreted as the down" o'lmocent apartment owners. While I'm sure this is neither the case nor the intention—of—the—Water Company, we feel there is reason for concern on our part. We would appreciate your looking into our questions, re-calculating the figures, and keeping us advised on the situation. Thank you. Sincerely, 2iTl�n AAOC Legislative Council Collins, Frances B. Zovi, Frances B. 752 Center Street Costa Mesa, Ca. 92627 July 10, 1998 Orange County Sanitation District P.O. Box 8127 Fountain Valley, Ca 92728 Re: NOTICE OF PUBLIC HEARING July 29, 1998 APN : 424 -20(-08 To whom it may concern: Based on your information provided, an increase from $46.80 per 1,000 square feet to$79.00 per 1,000 square feet represents a 70% increase to your"Not a tax" but a service charge. That, to me, is no less than obscene. If the increase would happen over several years, it would make sense. But 70% in one shot? The District, apparently, has been operating at $46.80 with no problem. Now they need more? Who is getting salary increases at our expense? You are being greedy and this increase is not warranted. Very truly yours, F 6-� Frances B. Collins, AKA Frances B. Zovi Trammell CrowlCompany VIA FACSIMILE AND UNITED STATES CERTIFIED MAIL July 10, 1998 Mr. Gary Streed Director of Finance Orange County Sanitation District P.O. Box 8127 Fountain Valley, California 92728-8127 Re: Proposed Sewer Charges— Notice of Public Hearing for July 29, 1998 Dear Mr. Streed: We are requesting copies of all information and staff reports to be presented to the District Board of Directors for consideration of the proposed sewer service rate structure. Kindly expedite your preparation of these items, so that we may have time to review it prior to presenting public testimony at the July 29, 1998 Public Hearing. We will be glad to personally pick up this information from your office. Please telephone me at (949) 553-1220 when it is ready. Thank you for your help in this matter. Please call us when the information is available. Sincerely, �CR'O^W'OORANGE COUNTY MANAGEMENT COMPANY, INC. .7^v( �� _ Susan B. Whittaker Director of Entitlement and Property Operations TRAMMELL CROW COMPANY SBW:jc cc: Mark Kemple, Esq.—Jones Day/Irvine 3311 Michelson Drive Irvine,California 92612 949-553-1220 Fax 949-553-1154 Streed, Gary From: Bamattres[cbam@pacbe[l.net] Sent: Wednesday, June 10, 1998 8:27 PM To: rates@ocsd.com Subject: rate increase I Met to your rate increase for 1537 S. Hampstead,Anaheim (APN:129-343-07). Proposition 13 means nothing to you. Reduce my school taxes to cover this increase. Taxation without representation. t Streed, Gary From: Cpcsys@aol.com Sent: Sunday,June 14, 1998 9:32 AM To: rates@ocsd.com Subject: Rate Increase Sanitation District Board of Directors: Please do some belt-tlyhlening Instead of raising rates. We taxpayers are against any more taxation in the form of increased feesl Carmela Chavez 1 Streed, Gary From: Jack Townsend actownsend@earthlink.net] Sent: Sunday, June 14, 1998 9:53 AM To: mtes®ocsd.com Subject: Proposed Rate Increase TO; Orange County Sanitation District: Please know that the incress in charges will be a pass through to those who pay rent. You should make an effort to get their imput.You know that the incress you propose is 13%while our cpi is around 2.5%. Must be nice to tax and spend) Jack Townsend APN: 028-330-13 1 Streed, Gary From: Pete Fort[petefort@pacbell.net] Sent: Sunday, June 14, 1998 10:14 PM To: rates@ocsd.com Subject: public hearing July 29-rate restructuring Gentlemen-I note that if a person has substantially lower water use, he can submit his water bills and apply for a reduced charge. What does the water bill have to do with how much stuff goes in your sewer? Is your whole analysis based on water usage? gf so it is horribly Flawed unless you have some magic way to determine how much water is used for landscape maintenance. I really doubt that a one or two bedroom, one bath apartment contributes any where near 70%of what an R-1 residence does. How did you find this 70%figure? You surely didn't use water consumption, because I just compared the water usage of an 18 unit building(14 two bdrm, one bath and 4 one bdrm, one bath)with a 4 bdrm, 2 bath R-1 residence. The percentage based on water consumption is 19.8%. Flow monitoring and census data do not distinguish between hardscape apartments and garden apartments unless you individual ry flow monitor a reasonable sample of INDIVIDUAL properfies,which I doubt you didl Very truly yours, Pete Fort petefort@pacbell.net 1 Streed, Gary From: G011843@webtv.net Sent: Monday, June 15, 1998 12:10 PM To: rates@ocsd.com Subject: APN:401-622-14-520 S. El Camino Real, Tustin, CA We received notice of a rate increase on this propene from$39.33 to $90.60 per 1000 sq. feet. This is an increase of 230 A. This seems very excessive. I don,t see how an incease of this size can be justified. The mix of tenants in our shopping center has not changed in the last 5 years. We have the same 2 restaurants and 1 beauty salon that we had 5 years ago. These are the primary users of water. The other tenants are small shops which use little if any water. This increase is from about$800 per year to about$1800 per year. We don't understand how 2 small restaurants and a beauty salon can use enough water to justify an$1800 per sewage charge. I can't help thinking that there is some mistake with the calculations that went Into this,with regard to this parcel. Please let me know if there is a mistake, and if not, how a 230% increase is justified. Regards, Gilbreath Trust Trustee Spencer Gilbreath 1 Streed, Gary From: Binnie Huang ]binhuang@earthlinknet] Sent: Monday, June 15, 1998 1:49 PM To: rates@ocsd.com Subject: Proposed Sewer Service Charges Dear Sir: I have recently received a notice regarding the proposed sewer services charges. On the notice, it indicates that the rate structure will increase my rate per 1000 sq. ft.from$53.63 to$453.00. That's an increase of 844%I IIII When you say$453.00, is that $453.00/1000sq.ft.? Is this new system definite or Is it still just a proposal? An increase of 844%is more than just a little ridiculous! I'd appreciate a speedy reply. Sincerely, Binnie Huang 1 Streed, Gary From: Haiker, Don[dhaiker@comintertech.com] Sent: Tuesday, June 16, 1998 9:05 AM To: 'ORANGE COUNTY SANITATION DIST.' Subject: SEWER RATES I JUST RECEIVED YOUR NOTICE OF A RATE INCREASE. IN THE NOTICE, IT SAYS THAT THE RATE WILL BE BASED ON STRENGTH AND QUANTITY. PLEASE FORWARD TO ME THE TEST RESULTS SHOWING THE LOAD OF OUR WASTE WATER WHICH WOULD JUSTIFY THIS INCREASE. WE ARE MINIMAL USERS OF WATER AND MUCH OF THAT WHICH IS USED IS LOST TO EVAPORATION IN OUR PARTS WASHERS. THANKYOU , DON HAIKER Q.A. MANAGER 1 Streed, Gary From: HiDella@aol.com Sent: Tuesday, June 16, 1998 4:59 PM To: rates@ocsd.com Subject: July 29th meeting and rate increase Re: property APN: 039-174-02 154 N. Glassell,Orange This building has been unoccupied for two years. It is still undergoing seismic retrofit for unre-enforced masonry building. I request that this building not be a part of this rate increase until the building is completed and occupied. Please feel free to e-mail response to hidella@aol.com Sincerely Della Clark P.O.Box 695 Sunset Beach, CA. 90742 3 Streed, Gary From: Vam Ford[ford_33@yahoo.com] Sent: Monday, June 22, 1998 3:28 PM To: retes@(>csd.com Subject: Proposed Sewer"service"charges I recently became aware of a proposed increase in fees that will be paid by property owners for sewerage services provided by the Orange County Sanitation District. I have some questions. Please e-mail the answers and comments to FORD_33@yahoo.com. Questions: 1.) Is the sewage rate based upon water usage? 2.) If the rate is based on water useage,do you allow for the fact that most of the water used could be going to water lawns,trees, etc. and does not ever see a swer line? 3.) Have you notified rentersftennants of residential housing so they will know why their rent has to be increased an additional amount to cover this"service fee"? 4.) Or, should we as landlords notify our tennants so that they might be knowledgeable of the reasons why their rents are going to be increased and which incumbent they should vole for next time. 4.) Please explain how you are able to"get around"the proposition 13 limit of 2% maximum allowable tax increase per year? I thought prop. 13 disallowed fees. 5.) Do you remember what happened in the 1970's,just after prop. 13 was passed? (You had a public hearing and it was heavily attended by People who protested the then proposed"fee" increase. The fee increase was not enacted due to the protest) DO-YOU YAHOO!? Get your free Qyahoo.com address at http:llmaii.yahoo.mm 1 Streed, Gary From: Richard Edes Iredes@gultonstatham.com] Sent: Friday, June 26, 1998 9:19 AM To: rates@ocsd.com Subject: APN:424-391-09 and 424-391-12 These two addresses are physically connected with two manufacturing buildings both performing the same operations. Why are the rates different by 25.5%7 1 was on the RAC and knew the rates for industry would increase but not by that much. A 41.7% increase is substantial. Please explain the reasoning for the major difference in charges between buildings. 1 Streed, Gary From: Vern Ford [ford_33@yahoo.com] Sent: Wednesday, July 01, 1998 8:47 AM To: rates@ocsd.com Subject: Proposed New Rates I have a few questions regarding the proposed new rates. 1. My current sewage fee is$135.00. 1 have three small ((less than 1000 sq. feet) rental homes on one large lot.. How is the$135.00 fee calculated? 2. Are these rates basd upon actual use? If a residence is vacant for a layge portion of the year(5 to 9 months)and no sewage is coming from the home is the property owner still charged? (I have had tennants trash a house so that it has taken neatly a year to refurbish the house.) 2. My residence is two blocks(a four minute walk)from my rental properties. Is the rate also going to change for my residence home? 3. If the rate is going to go up or change why have I not been notified regarding my residential property? Thank you DO YOU YAHOO!? Get your free @yahoo.com address at http://maii.yahoo.com 1 BOARD OF DIRECTORS peg Date I TOnBd. zs�se AGENDA REPORT Iem Numae Rem Nymbe, Orange County Sanitation District Y FROM: Gary Streed, Director of Finance Originator: Bill Aldridge, Principal Accountant SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vole. (Each Director shall be called only once and that vote will be regarded as the same for each revenue zone represented unless a Director expresses a desire to vote differently for any revenue zone). Staff recommends ratification of payment of claims in accordance with the attached check listing. SUMMARY See attached check listing. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ® This item has been budgeted. (Line item: N/A) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES rvwmvnnn.eexmaoyame.waraesw.,.weaoc Page 7 N/A r CEQA FINDINGS N/A ATTACHMENTS 1. Copies of Claims Paid reports from 4/29/98 and 5/13/98. BA �haenw.m ".em�n�enaoea FIL w•'—Iddrc Page 2 PwveA'. &.f6➢B County Sanitation Districts Of Orange County Claims Paid 429/98 Check No. Vendor Amount Description 10971 Barclays Bank PLC 90,760.75 COP Letter of Credit 10972 Bauer Compressors 26,209.69 Compressor Pens 10973 Dell Marketing L.P. 70,935.99 Computers 10974 Delta Dental 37,822.22 Dental Insurance Plan 10975 Harbour Engineering Group 31,032.00 Mechanical Parts 10976 James Martin&Co. 30.677.50 Data Integration Project 10977 Kemlron Pacific,Inc 77.085.16 Femc Chloride MO 9.27-95 10978 Lee&Ro Inc 34.831.86 Engineering Services 10979 Mladen Suntich Construction Cc 248,376.00 Construction 3384,2-R-97 10980 Oracle Corporation 35,514.40 Software 10981 Orange County Water District 109,940.46 GAP Water Use MO 6-9-93 10982 Pacificare of Ca 37,806.29 Health Insurance Premium 10983 Pascal&Ludwig,Inc. 53,100.00 Construction J-33-2 10984 Pima Gro Systems Inc 54,856.99 Residuals Removal MO 3.29.95 10985 Potytlyne,Inc. 36.819.77 Cationic Polymer M03.11-92 10986 Roberiy F Driver Assoc 74.412.00 Personnel Insurance Consultant 10987 Southern California Edison 31,035.54 Power 10988 Space Leasing Company 38,797.80 Construction Trailers, P2-70 10989 Sverdrup Civil,Inc. 149,708.86 Construction P2-353,P1.38.6,P246,P2.55 10990 Tule Ranch/Magan Farms 52,827.89 Residuals Removal 10991 United HealmCare/Matra Health 127,986.15 Medical Health Insurance 10992 The Ventage Group 30,708.00 Consulting Services 10993 Vulcan Chemical Technologies 33,489.11 Hydrogen Peroxide 10994 Woodruff,Spradlm&Smart 88.573.93 Legal Services MO 7-2695 10995 Affordable Truck&Auto Pans 2,693.75 Truck Pads 10996 Allied Pecking&Rubber Inc. 71.76 Mechanical Supplies 10997 Allied Supply Co. 4,378.01 Plumbing Supplies 10998 American Airlines 5,601.00 Travel Services 10999 American Training Resources 1.616.25 Training Materials 11000 Angelus Engine Center 166.90 Truck Pans 11001 Anthony Pest Control,Inc. 610.00 Service Agreement 11002 Appleone Employment Service 3,689.78 Temporary Employment Services 11003 Ashme 57.00 Membership 11004 ADS Environmental Services,Inc. 2,078.16 Professional Services 11005 Advanced Engine Tech Corp. 806.99 Engine Testing J-19 1IODS Assoc of Melro.Sewerage Agency 1,576.00 Conference Registration 11007 AWSI 365.00 D.O.T.Training Program 11000 Ba9ey Fischer&Porter Compan 1.579.50 Office Supplies 11009 Bar Tech Telecom,Inc. 2.250.00 Telephone Installation 11010 BIG Gro Division 17,591.36 Residuals Removal MO 4-26.95 11011 Builders Book,Inc 238.21 Books 11012 Burke Engineering Co. 910.14 Electric Supplies 11013 Bush&Associates Inc. 588.00 Surveying Services MO 6.25-97 11014 BNI Building News 96.92 Publication 11015 C.A.P.I.O. 1991 Awards 100.00 Conference Registration 11016 Carrell Corp. 2,387.50 Service Agreement 11017 Capital Appraisal Service 105.00 Claim Settlement 11018 Cad Warren&Co. 300.00 Insurance Clelms Administrator 11019 Cerollo Engineers 4.861.50 Engineering Services County Sanitation Districts Of Orange County Claims Paid 4/29198 Check No. Vendor Amount Description 11020 UNL Center for Leadership Deve 816.00 Training Registration 11021 Centrapolnte,Commercial titan 6,690.43 Office Furniture 11022 Carfnel 2D.00 Computer Services 11023 Clayton Group Services,Inc. 3.565.25 Professional Services 11024 Color Copy Center 3,950.84 Reproduction 11025 Compressor Components Of Calif 965.00 Pump Pans 11026 Consolidated Electrical Dishi 5.408.64 Electric Parts 11027 Copelco Capital,Inc. 1.432.00 Copier Lease 11028 P.A.Peon&Son,Inc. 75.00 Reconciliation User Refund 11029 County of Orange 363.00 Administrative Fees 11030 CWEA 680.00 Training Registration 11031 Data Clean Corporation 390.01) Service Contract 11032 Davis Instruments 513.98 Mechanical Supplies 11033 Del Mar Analytical 840.00 Blosolids Analysis 11034 Delta Packaging Products,Inc. 77.41 Lab Supplies 11035 DeZurick 4,666.87 Valves 11036 Dover Elevator Company 1.547.00 Elevator Maintenance 11037 DGA Consultants,Inc 21,111.77 Surveying Services MO 648 94 11038 Electra Bond,Inc. 818.90 Mechanical Supplies 11039 Emergency Lifeline 1,442.22 Safety Supplies 11040 Enchanter,Inc. 4.900.00 Ocean Monitoring NO 5.24-95 11041 Enterprise Technologies 19,575.60 Consulting Services 11042 Environmental Resources Associate 1,234.10 Lab Services 11043 Experian 117.92 Orange County Property Information 110" ENS Resources,Inc 6,388.41 Professional Services 11045 ESP Indlustries,Inc 603.40 Mechanical Supplies 11046 Fairbanks Scales,Inc. 258.51 Service Agreement 11047 Federal Express Corp., 71.85 Air Freight 11048 First American Ti6e Insurance 75.00 Professional Services 11049 Fleet Services 192.40 Truck Repair 11050 Friths Benefits Insurance Comp 17.647.20 Long Term Disability Premium 11051 Fountain Valley Camera 41.74 Photo Supplies 11052 Fountain Valley Rancho Auto We 139.50 Truck Wash Tickets 11053 Fry's Electronics 1.290.92 Electronic&Computer Supplies 11054 Full Spectrum AnaMlcs,Inc. 621.76 Gas Chromatography Service 11055 G.E.Supply Company 494.24 Electric Pads 11055 The Gas Company 10,846.64 Natural Gas 11057 GTE California 6.107.37 Telephone Services 11058 George T.Hall Co. 97.14 Electric Parts 11059 George Yardley Co. 756.83 Lab Supplies 11060 Gledich-Mitchell,Inc. 3.111.81 Pump Pads 11061 Government Finance Officers Assoc. 17.00 Membership 11062 Graphic Distributors 89.43 Photographic Supplies 11063 Graybar Electric Company 3,904.60 Electric Pads 11064 GET,Inc./Micro City 6.041.19 Office Supplies 11065 Halcyon Press 36.40 Publication 11066 Harrington Industrial Plastics 62027 Plumbing Supplies 11067 Haulaway Storage Containers 1.250.00 Container Rentals 11068 Hoerbiger Service Inc 5,507.19 Compressor Pads County Sanitation Districts Of Orange County Claims Paid 4/29/98 Check No. Vendor Amount Description 11059 The Holman Group 761.12 EE Assistance Program 11070 Holmes&Never Inc 8.126.69 Engineering Services 11071 Home Depot 104.32 Small Hardware 11072 Hub Auto Supply 190.36 Truck Parts 11073 City of Huntington Beach 11.188.63 Water Use 11074 Intense Publishing 27.64 Publication 11075 Irvine Ranch Water District 62.66 Water Use 11076 Ism,Inc 1,725.99 Instmments 11077 IPCO Safety-Ca 13,168.69 Safely Supplies 11078 ISI lnfortext 13,498.63 Computer Supplies 11079 J.O'Brien Company,Inc. 955.24 Computer Supplies 11080 J.D.Edwards World Solutions C 6,400.00 Software License Fees MO 7-24-96 11081 J.L.Wingert Co. 308.67 Electrical Supplies 11082 J.P.Morgan Securities,Inc. 22,290.41 COP Remadcet ng 11083 Jamison Engineering,Inc. 2,000.00 Equipment Rental 11084 Jay's Catering 271.79 Director's Meeting Expense 11085 Johnstone Supply 30824 Electric Parts 11086 Kaiser Foundation Health Plan 22.448.03 Medical insurance Premium 11087 Kelly Paper 26.34 Paper 11088 Kennedy Hydraulics 1.009.32 Motor Repairs 11089 Knox Industrial Supplies 2,607.65 Tools 11090 KCET/Dimac Communications 38.42 Printing 11091 LA.Cellular Telephone Company 2,356.88 Cellular Telephone Service 11092 Lab Support 4,350.00 Temporary Employment Services 11093 Laidlaw Env.Svcs.of Calif., 6.445.84 Hazardous Material Disposal 11094 Lewis,D'Ametc,Brisbois&Blsgaard LLP 22.50 Legal Services 11095 Luis Law Publishing 26.82 Publication 11096 Line-%Protective Coatings 663.26 Truck Pans 11097 Lord Fleming Architects,Inc 2,964.62 Professional Services 11098 Mantic Motels 68.00 Towing Services 11099 MC Junkln Corp 101.22 Plumbing Supplies 11100 Me Welce Rack-N-Bo r Company 939.20 Truck Parts 11101 McKenna Engineering&Equipment 781.73 Pump Parts 11102 McMaster-Carr Supply Co. 530.83 Tools 11103 Medical Air Care,Inc. 4,550.00 Service Agreement 11104 Mesa Muffler 127.80 Tmck Parts 11105 MicroAge Computer 7,020.84 Computer Supplies 11108 Midway Mfg&Machining Cc 6,339A0 Mechanical Repairs 11107 Mission Uniform Service 3.019.53 Uniform Rentals 11108 Mobile Modular Management Corp 603.40 Office Trailer Lease 11109 Monitor Labs Inc 4,676.40 Instruments 11110 Moreland&Associates 1,337.50 Auditing Services MO 3.8-95 1111/ Mellon Industries 2,949.69 Pump Pans 11112 MotoPhoto 38.57 Photographic Services 11113 MOD Technologies, Inc. 4,930.00 Maintenance Agreement 11114 Mine Safety Appliances Company 117.42 Electric Supplies 11115 Nat West Markets 750.00 COP Interest Draw Fees 11116 National Career Workshop 99.00 Registration Fee 11117 National Micrucomp Services 2,765.00 Service Agreement County Sanitation Districts Of Orange County Claims Paid 4129/98 Check No. Vendor Amount Description 11118 National Plant Services,Inc. 1.282.50 Vacuum Truck Services 11119 Navcon Engineering Network 5,310.00 Professional Services 11120 Neal Supply Co 721.93 Plumbing Supplies 11121 New Horizons Computer Learning 4,091.27 Software Training Classes 11122 City of Newport Beach 55.35 Water Use 11123 Occupational Vision Services 925.02 Safety Glasses 11124 Office Depot Business Services 1."0.17 Office Supplies 11125 Olsten Staffing Service,Inc. 4.058.25 Temporary Employment Services 11128 Olympus America Inc. 95.90 Computer Supplies 11127 Orange County Forum 30.00 Conference Registration 1112E Orange County Pump Co. 357.03 Pump Pads 11129 Orange County Red Cross 172.00 Safety Training 11130 Orange County Register 133.35 Subscription 11131 Orange County Wholesale Electric 7.009.75 Instrument Supplies 11132 Orange Valve 8 Fitting Company 2,931.51 Fittings 11133 Orrick,Herrington 8 Sutcliffe 2.009.75 Professional Services 11134 Oxygen Service Company 2.030.02 Specialty Gases 11135 P.L.Hawn Company,Inc. 152.62 Electric Supplies 11135 Pacific Bell 1,272.65 Telephone Services 11137 Pacific Bell Internet Services 3.454.60 Internist Services 11138 Pacific Mechanical Supply 335.02 Plumbing Supplies 11139 Pagenel 1.712.47 Rental Equipment 11140 Patriot Video Productions 326.33 Video Taping Services 11141 Palm Animal Supplies 360.28 Lab Supplies 11142 Pinkerton Systems Integration 22.404.08 Computer Supplies 11143 Power Maintenance International, Inc. 4.259.14 Maintenance Agreement 111144 PdceCostoo Membership 35.00 Membership 11145 Primrose Ice 48.00 Ice For Samples 11146 Pumping Solutions Inc. 112.10 Mechanical Supplies 11147 PSSI 3.690.30 Maintenance Agreement 11148 R 5 R Instrumentation,Inc. 245.23 Electric Parts 11149 Ray Hesser-OCEC Treasurer- 50.00 Achievement Award 11150 Reish Marine Studies,Inc. 560.00 Ocean Monitoring 11151 Reliastar 24.074.32 Life Insurance Premium 11152 Reliaslar Bankers Security Life Insurance 4.757.84 Life Insurance Premium 11153 Richardson Engineering Service 3.681.50 Seminar Registration 11154 Road Works,Inc. 65.00 Seminar Registration 11155 Rosen's Electrical Equipment Co. 532.92 Electrical Supplies 11158 RJE International,Inc. 673.44 Lab Repairs 11157 RPM Electric Motors 8.725.60 Electric Motor Paris 11158 RSA Sutter Soil Products 1,187.94 Soil Materials 11159 Safelite Glass Corp. 252.12 Auto Parts 11100 Scoft,Reilly 8 Whitehead 8.09 Legal Services-Personnel Issues 11161 Sea-Bird Electronics,Inc. 22,094.00 Lab Repairs 11162 Seagate Software 6.000.00 Training Fee 11163 Shamrock Supply Co.,Inc. 953.37 Tools 11164 Shureluck Sales 8 Engineering 6.309.83 Tool"aroware 11105 Siemon,Leven&Marsh 3,000.00 Professional Services 11186 Sievers 456.12 Lab Supplies j' E County Sanitation Districts Of Orange County Claims Paid 4129198 Check No. Vendor Amount Description 11157 Skillinath On-Site 4,000.00 On-Site Training 11168 Sonic Systems,Inc 10,759.61 Computer Parts 11169 South Coast Water 45.00 lab Supplies 11170 Southern California Acadamy of Sciences 60.00 Registration Fee 11171 Southern CalBomia Trane Service 19.82 Electrical Supplies 11172 Southern CalBorma Water 62.01 Water Use 11173 Southwest Air Balance Corp 7.150.00 Professional Services 11180 StateNet 165.00 Seminar Registration 11181 Strata International,Inc 926.98 Chemicals 11182 Summit Steel 762.87 Metal 11183 Sunrise Environmental Scientific 97.89 Auto Pads 11184 Sell Ford 14.52 Truck Park 11185 Sunset Industrial Pads 112.84 Mechanical Supplies 11186 Surveyors Service Company 421.77 Took 11187 SAFT America,Ina 11,729.67 Batteries 11188 Taylor-Dunn 148.65 Electric Cad Pads 11189 Ten Howe Bros.,Inc. 54.95 Safety Supplies 1119D Thompson Industrial Supply,Inc. 2,723.08 Mechanical Pads 11191 Time Warner Communications 40.19 Cable Services 11192 Tongs Lock&Safe Service&Sales 7,309.66 looks&Keys 11193 Triad Personnel Services,Inc. 9,375.00 Temporary Employment Services 11194 Tropical Plaza Nursery,Inn 4,258.84 Contract Groundskeeping MO 511-94 11195 Tmesdail Laboratories,Inc. 3,157.00 Lab Services 11196 Ultra Sdentific 65.00 Lab Supplies 11197 United Parcel Service 611.94 Parcel Services 11190 United States Safe Deposit 117.50 Offsde Back-Up Tape Storage 11199 Unocal Corporation 12.86 Gasoline 11200 Valley Citles Supply Company 1.027.99 Plumbing Supplies 11201 VWR Scientific Products 1,732.51 Lab Supplies 11202 Water Education Foundation 35.00 Publication 11203 Water Environment Federation 220.00 Professional Development Courses 11204 Water Quality International 1998 650.00 Registration Fee 11205 Wells Supply Company 6,179.47 Plumbing Supplies 11206 Wesce DistribNon Inc, 617.01 Instrument Supplies 11207 West Coast Safety Supply Co. 2,537.01 Safety Supplies 112M West-Lde Supply Company., Inc 53.88 Electrical Supplies 11209 Western Stales Chemical Inc. 21,399.82 Caustic Soda MO 8-23-95 11210 Wester,International 127.37 Track Supplies 11211 Nancy J.Wheatley 1,560.30 Meeting Expense Reimb. 11212 Wheaten Science Products 37.98 Lab Supplies 11213 Xerox Corporation 2.180.40 Copier Leases 11214 Frank Chavez 1,711.21 Employee Computer Loan Progmn 11215 Barbara A.Collins 432.56 Meeting Expanse Reimb. 11218 Linda D.Contreras 139.00 Training Regislra8on 11217 James E.Gowan,Jr 141.00 Meeting Expense Reimb. 11218 Mark A Esquer 644.59 Meeting Expense Reimb. 11219 Dawn M.McKinley 110.16 Meeting Expense Reimb. 11220 County of Orange 2,220.00 Administrative Fees 11221 County Sanitation District of Orange County 60421 Petty Cash Reimb. County Sanitation Districts Of Orange County Claims Paid 4/29198 Check No. Vendor Amount Description 11222 Envision of Irvine and Denise 2.191.39 Employee Computer Loan Progran 2.231.522.56 4 County Sanitation Districts Of Orange County Claims Paid 5113/98 Check No. Vendor Amount Description 11263 Advance Constmclors Inc 65,084.00 Construction J-34d,P2-3 5 11254 Canus Corporation 31,371.72 Fiber Optic Cable 11255 Dell Marketing L.P. 59,913.73 Computers 11256 Southern California Edison 49,456.18 Power 11257 FMC Cerpomti4n 74,363.98 Hydrogen Peroxide MO 9-14-94 11258 Greet Pacific Equipment Co. 191,799.90 Truck-Mounted Crane 11259 Kemlron Pacific,Inc. 48,974.45 Femc Chloride MO 9-27-95 11260 MacDonald-Stephens Engineers, 75,148.96 Engineering Services 2.37 11281 Margate Construction Inc. 368,805.59 Construction P7-36-2 11262 Padfic Investment Management 121,309.00 Investment Management Service Res.95-97 11263 Pima Gro System Inc 71,794.58 Residuals Removal MO 3.29.95 11264 Power Systems Testing Company 145.897.40 Electric Supplies 11265 Space Leasing Company 73.595.60 Construction Trailers,P2-70 11266 Tule RanchlMagan Fans 63,278.43 Residuals Removal 11267 United HeallhCaro/Metre Heal 116.217.99 Medical Health Insurance 11268 Margate Contraction Inc. 225.808.00 Construction PI-36-2 11269 Mike Prlich&Sons 298,093.85 Construction 3-35R-1 11270 Minden Bunllch Construction Cc 42,147A0 Construction 3.38.3,2-R-97 11271 American Telephone&Telegraph 5.70 Long Distance Telephone Services 11272 AT&T 3.381.77 Long Distance Telephone Services 11273 American Telephone&Telegraph 18.23 Long Distance Telephone Services 11274 AT&T 804.83 Long Distance Telephone Services 11275 Abrasive Engineering Tool&Eq 28.16 Hardware 11276 AccuSlandard 208.38 Lab Supplies 11277 Adamson Industries 378,09 Lab Supplies 11270 Air Cold Supply 56.72 Air Conditioner Repairs 11279 Allied Packing&Rubber Inc. 6TM Mechanical Supplies 11280 Amazon.Com 136.95 Publications 11281 American Airlines 8,069.10 Travel Services 11282 American Management Association 1.08166 Seminar Registrations/Subscription 11263 Apce Valve And Primer 888,94 Plumbing Supplies 11284 Applied Industrial Technology 1,749.56 Pump Pads 11285 Arizona Instrument 1,275.40 Instrument Supplies 11286 Arts Disposal Service,Inc. 310.40 Toxic Waste Removal 11287 Asbury Environmental Services 55.00 Waste Oil Removal 11288 Association of Energy Engineer 6800 Publications 11289 Atlantic Pool Care 235.00 Service Agreement 11290 Auto Shop Equipment Co.,Inc. 8,277.16 Filters 11291 Awards&Trophies By Bea 48.49 Plaques 11292 Air permit Report 435.00 Publipllans 11293 Air Products&Chemicals 22,500.00 Lab Supplies 11294 AMAUPadgeti-Thompson 149.00 Seminar Registration 11295 American Seals West 575.56 Gaskets 11296 ARMA International 597.00 Membership 11297 ASTD American Society For Trai 229.00 Membership 11298 AWWA Annual Conference 280.00 Meeting Registration 11299 Banana Blueprint,Ina. 3,525.09 Printing MO 11-744 11300 Bar Tech Telecom,Inc 2,230.55 Telephone Installation 11301 Boot Sam 59.15 Reimbusable Safety Shoes County Sanitation Districts Of orange County Claims Paid 5/13/98 Check No. Vendor Amount Description 11302 Bryant 8 Associates 5,000.00 Consulting Services 11303 Budget Janitorial,Inc. 3.605.00 Jendonal Services MO 1-12-94 11304 Bush 8 Associates Inc 1,748.00 Surveying Services MO 6-25-97 11305 Ben Franklin Crafts(Bobeft Crafts) 699.20 Furniture 11306 Cal-Glass,Inc. 157.32 Lab Supplies 11307 Calif Centrifugal Pump 3.575.00 Electrical Service 11308 California Environmental Contr 6.609.18 Pump Parts 11300 California Automatic Gate 85.00 Service Agreement 11310 Caftrol,Inc. 1.491.69 Hardware 11311 Cad Warren B Co. 806.42 Insurance Claims Administrator 11312 Carcllo Engineers 13,36023 Engineering Services 11313 Gassman 384.48 Safety Supplies 11314 Cenbepointo Commercial Interiors 2,165.13 Office Fumi ae 11315 Chain Drives Inc 70.04 Mechanical Supplies 11316 Frank P.Chavez 1.000.00 Claim Settlement 11317 Coast Fire Equipment 600.00 Service Agreement 11318 Communications Performance Go, 23,135.00 Professional Services 11319 Compressor Components Of Cold 3,474.94 Pump pads 11320 Compucom 12,809.12 Computer Supplies 11321 Compuserve Incorporated 126.56 Computer Services 11322 Computer Power Inc 200.00 Computer Supplies 11323 Computers America, Inc 2,362.56 Computer Supplies 11324 Conam MMP Inspection Inc 720.00 Inspection Services 11325 Connell GM Pads 105.65 Truck Parts 11325 Consolidated Electrical Died 12.791.06 Electric Pans 11327 Consolidated Plastics Company 468.74 Tools 11328 Converse Consultants 2,143.90 Consulting Services MO 8-11.93 11329 Coopers 8 Lybrand Consultants 15.400.00 Professional Services 11330 Corporate Express 6.406.74 Office Supplies 11331 County of Orange 1,920.00 Administrative Fees 11332 County Sanitation Dist/Worker Comp 21,089.58 Waricefs Comp.Reimb. 11333 County Wholesale Electric Co. 13,346.21 Electric Pads 11334 Culligan Water Conditioning 30.00 Soft Water Service 1133E CC[Technologies SN00 Coble Installation 11335 CS Company 6,404.28 Plumbing Supplies 11337 CSMFO 80.00 Meeting Expense 11330 Daily Pilot 250.00 Notices 8 Ads 11339 Del Mar Analytical 380.00 Blosolids Analysis 11340 DeZurck 3,274.49 Valves 11341 Dicksons Inc. 923.42 Air Conditioner 11342 Dover Elevator Company 1,203.80 Elevator Maintenance 11343 DGA Consultants,Inc 5,355.00 Surveying Services MO 6494 11344 Eagle Distribution 35.96 Truck Pads 11345 Edinger Medical Group,Inc. 35.00 Medical Screening 11346 Electra Bond,Inc. 886.94 Mechanical Supplies 11347 Enchanter,Inc. 4,200.00 Ocean Monitoring MO 5-24-95 11348 Enterprise Technologies 10569.20 Consulting Services 11349 Environmental Resources Associates 1,529.10 Lab Services 11360 Equlsery 253.76 Testing Equip. E •i County Sanitation Districts Of Orange County Claims Paid 5/13I98 Check No. Vendor Amount Desalplien 11351 Experian 117.92 Orange County Property Information 11352 Fairbanks Morse Pump 135.00 Pump Parts 11353 Fairbanks Scales,Inc. 258.51 Service Agreement 11354 Federal Express Corp., 275.85 Air Freight 11355 Filter Supply Company 457.77 Fillers 11356 FST Fine Science Tools.Inc 164.05 Tools 11357 Fisher Scientific 885.14 Lab Supplies 11358 Forked Engineering 2.685.00 Engineering Services P-150 11359 Fountain Valley Camera 35.42 Photo Supplies 11360 FNs Electronics 614.05 Electronic B Computer Supplies 11361 G.E.Supply Company 200.42 Electric Parts 11362 Garish[Lumber Company 241.75 LumberfHardware 11363 GerraBCellahan Company 3,453.39 Chemicals 11364 Gartner Group Inc. 1,185.00 Conference Registration 11365 General Petroleum 7,728.04 Unleaded Gasoline 113M GTE California 3,239-58 Telephone Services 11367 George Yardley Co. 1,130AS Lab Supplies 11368 Gefinge Castle 936.00 Pump Pads 11369 Gierlich-Mitchell,Inc. 1,507.60 Pump Pads 11370 Gigs Information Group,Inc. 14,000.00 Professional Services 11371 Global Computing 555.75 Computer Supplies 11372 Global Engineering 8 Management 11,500.00 Consulting Services 11373 Government Finance Officers Association 55.95 Membership 11374 WW Grainger Inc. 57.32 Compressor Pads 11375 Edwards Systems Technology 1,632.50 Service Agreement 11376 Hauser 3,000.00 Piping Samples 11377 Hartselle Protective Coatings 314.72 Painting Supplies 11378 Hilt!Inc 72.02 Tools 11379 Home Depot 272.70 Small Hardware 113BD Hub Auto Supply 169.49 Truck Pads 11381 City of Huntington Beach 172.19 Water Use 11382 HB Digital Ada 8 HB Blueprint 32.33 Pub icetton 11383 HR Solutions,Inc. 269.50 Publication 11354 Imaging Plus,Inc. 743.85 Office Supplies 11385 Industrial Shoe Co. 1,463.60 Shoes 11386 Industrial Threaded Products. 10,177.51 Connectors 11387 Inorganic Ventures,Inc. 261.87 Lab Supplies 11388 Interstate Battery Systems 266.34 Batteries 11389 Irvine Ranch Water Districts 2.90 Water Use 11390 law.Inc 3.728.15 Instruments 11391 IAPMO 99.70 Publication 11392 IPCO Safety 808.91 Safety Supplies 11393 J.D.Edwards 2.0(i 0 Software License Fees MO 7-24-96 11394 Jamison Engineering,Inc. 2,054.00 Equipment Rental 11396 Jay's Catering 459.09 Directors Meeting Expense 11396 Johnstone Supply 1,380.64 Electric Paris 11397 K.P.Lindstrom 3,762.00 Ervin.Consulting Services MO 12-9-90 11398 Keen Kul Abrasive Co. 404.06 Ni Supplies 11399 Keith D Stolzenbach,PH.D.,P.E. 1,925.00 Ocean Monitoring County Sanitation Districts Of Orange County Claims Paid 5/13/98 Check No. Vendor Amount Description 11400 Knox Industrial Supplies 554.28 Tools 11401 LA.Cellular Telephone Dumped 129.28 Cellular Telephone Service IM2 Lab Safety Supply,inc. 2,183.94 Safety Supplies 11403 Lab Support 2.280.00 Temporary Employment Services 11404 Lee&Ro Inc 2.399.51 Engineering Services 11405 Line-X Protective Coatings 436.63 Truck Maint. 11406 Maintenance Technology Corp. 752.69 Welding Supplies 11407 Mad Chlor Inc. 1,137.51 Ferric Chloride Supplies 11408 McMaster-Carr Supply Co. 267.43 Tools 11409 Medlin Controls Co. 1,889.94 Instrument Supplies 11410 MlcroAge Computer 8,404.50 Computer Supplies 11411 Midway Mfg&Machining Co 16.081.70 Mechanical Repairs 11412 Mobile Modular Management Corp 603.40 Office Trailer Lease 11413 Motion Industries 321.46 Pump Parts 11414 National Academy Press 41.65 Subscription 11415 National Technical Information 75.50 Subscription 11416 New Horizons Computer Learning 795.00 Software Training Classes 11417 Newark Electronics 80.90 Instrument Parts 11418 NACE International 75D.00 Training Registration 11419 Occupational Vision Services 446.03 Safety Glasses 11420 Olsten Staffing Service,Inc. 840.00 Temporary Employment Services 11421 Olympus America Inc. 2,208.88 Computer Supplies 11422 Robed Dolan 917.16 Meeting Expense Rebnb. 11423 Orange County Farm Supply 653.18 Chemicals 11424 Orange Valve&Fitting Company 352.23 Fittings 11425 Oslerbauer Compressor 99.00 Mechanical Parts 11426 Oxygen Service Company 1.472.71 Specialty Gases 11427 Pacific Bel 17.99 Telephone Services 11428 Pacific Bell Internet Services 1.151.50 Internet Services 11429 Pacific Mechanical Supply 1,510.49 Plumbing Supplies 11430 Pacific Parts and Controls.In 802.11 Instrument Pads 11431 Parts Unlimited 30.36 Truck Parts 11432 The Perrin Elmer Corp. 1,49&30 Filters 11433 Pinkerton Systems Integration 18,307.90 Computer Supplies 11434 Power Maintenance International 2.233.48 Maintenance Agreament 11435 Premier Fastener Company 340.34 Tools 11436 Prentice Hall Wor Simon&Schuster 44.98 Publication 11437 Presentation Products,Inc. 535.36 Color Laser Film 11436 Presidium Inc 2,093.33 Workers Comp Claims Admin. 11439 Primrose Ice 144.110 Ice For Samples 11440 PAL Publications Group 20.90 Publication 11441 Duantena,Inc. 2,000.00 Lab Services 11442 Rainbow Disposal Co.,Inc. 2.160.05 Trash Removal 11443 Remedy 18,051.98 Temporary Employment Services 11444 RJN Group,Inc. 7,240.00 CMMS Consulting Services 11445 RM Controls 258.08 Instrument Parts 11446 IRS Hughes Co.,Inc. 232.55 Paint Supplies 11447 Scull specially Gases Inc 139.32 Specialty Gases 11446 Scelt,Reilly B Whitehead 128.33 Legal Services-Personnel Issues E County Sanitation Districts Orange County Claimss Paid 5/1373/98 Check No. Vendor Amount Description 11449 Second-Sun 322.82 Light Failures 11450 Shamrock Supply Co.,Inc. 71.12 Tools 11451 Shureluck Sales 8 Engineering 1,512.81 ToolslHardwam 11452 Skater,Inc. 215.00 Pump Parts 11453 South Coast Water 126.00 Lab Supplies 11454 Southwest Scientific Inc. 2,788.03 Meter 11455 Spading Instruments,Inc. 43828 Meter 11458 Sprint 38.25 Long Distance Telephone Service 11457 State Board of Equalization 250.00 Underground Fuel Storage Fee 11458 Stale Chemical Mfg.Co. 1,217.14 Janitorial Supplies 11459 Summer Steel 407.30 Metal 11460 Swains Electric Motor Service 761.01 Pump 11461 Syscom Inc 11,541.20 On-Site Training 11462 Systems Integrated 6,300.00 Professional Sevices 11463 SAFTAmedca,Inc. 5,958.39 Batteries 11464 Tarby of Delaware Inc. 7,560.00 Pumps 11465 Taylor-Dunn - 373.67 Electric Cart Parts 11456 The Register 828.10 Notices 8 Ads 11467 Thompson Industrial Supply,Inc. 609.92 Mechanical Pads 11468 Titan Powe,Inn 4,035.00 Maintenance Agreement 11469 Edward Tones 312.47 Tools 11470 Traffic Control Service Inc. 1.604.63 Truck Parts 11471 Tropical Plaza Nursery,Inc. 3,973.84 Contract Groundskeeping MO&11.94 11472 Truck 8 Auto Supply,Inc. 91.88 Truck Parts 11473 The Unisource Corporation 999.49 Office Supplies 11474 United Parcel Service 48.02 Parcel Services 11475 United States Postal Service 5,000.00 Postage 11476 US Filter/Polymetrice,Inc. 2,525.50 Lab Supplies 11477 USC Sea Grant Publications 2.00 Publication 11478 Valley Cities Supply Company 2,844.90 Plumbing Supplies 11479 Valley Detroit Diesel Allison 577.18 Electrical Supplies 11480 The Vantage Group 16,033.00 Consulting Services 11481 Varian Chromatography Systems 2.580.09 Lab Supplies 11492 Vossler B Company 376.33 Mechanical Parts 11483 Vulcan Chemical Technologies 15,577.69 Hydrogen Peroxide 11434 VWR Scientific Products 6,285.18 Lab Supplies 11485 The Wackenhut Corporation 5,845.01 Security Guards 11488 The Wall Street Journal 175.00 Subscription 11487 Waste Markets 15,520.48 Residuals Removal MO 3-2746 11488 Water Environment Federation 500.00 Professional Development Courses 11489 Wayne Electric 491.34 Electrical Supplies 11490 Weather and Wind Instrument Co. 950.79 Instrument Pads 11491 Weslamerlca Graphics 3,862.13 ULF7 Mailers 11492 Western States Chemical Inc. 3,942.39 Caustic Soda MO 8-23-95 11493 Whessoa Vanec,Inc. 15,859.15 Valves 11494 Whessoe Varec,Inc. 1,254.57 Valves 11495 Wiley-VCH Veda9 GmbH 140,70 Publication 11496 Willard Milking Devices 96.98 Office Supplies 11497 Xerox Corporation 22,526.48 Copier Leases County Sanitation Dlslride Of Orange County Claims Paid 5113198 Check No. Vandor Amount Description 114M Xetax Incorporated 144.00 Electrical Supplies 11499 Moyesar T.Yahya 781.87 Meeting Expense Reimb. 11500 Paula A.Zeller 974.34 Meeting Expense Reimb. 11501 Nicholas J.Arhomos 425.58 Meeting Expense Reimb. 11502 Stephen J.Bumll 620.27 Meeting Expense Reimb. 11503 George A.Charade 548.39 Meeting Expense Reimb. 11504 James Cong 168.00 Meeting Expense Reimb. 11505 Chloe D.Died 390.68 Meeting Expense Reimb. 11508 Dell Home Systems Go.and Joven Alop $2,600.00 Employee Computer Loan Program 11507 Mail Eddy $395.00 Meeting Expense Reimb. 11508 Mark A.Esquer $416.78 Meeting Expense Reimb. 11509 Carib 0.Nguyen $813.76 Meeting Expense ReMb. 11510 Robed Oaten $231.88 Meeting Expense Rehnb. 11511 Stuart D.Savem $942.03 Meeting Expense Reimb. 11512 Gary L.Wehnan $628.72 Meeting Expense Reimb. 11513 County Sanitation District of Orange County $1,454.01 Petty Cash Reimb. 11514 E.G.Hellafs Son,Inc. $1,626.70 Electrical Supplies 11515 Gretchen Yarbrough $81.70 Claim Settlement 11516 Newport Dunes Partnership $601.81 Meeting Expenses Hall' Mitchell J.Trivanodch $729.35 Meeting Expense Reimb. 11518 Simon L.Watson $689.36 Meeting Expense Reimb. 11519 State Board of Equalization $2,700.00 Underground Fuel Storage Fee $2,755,145.28 AGENDA REPORT TRANSMITTAL FORM Y As soon as the review of the Agenda Report is complete, call the contact person for pickup. Subject of Agenda Report: Payment of Claims of the Joint and Individual Districts Contact: Name: Bill Aldridge Telephone Ext.: 7562 REVISION DATE TO S REVIEWED COMMENTS REQUIRED D ision an art d Greg Mathews Assistant General Manager/General Manager \VMmWM1M¢me\MVI111a1tkpN`M'FLLESYJelmepeN.Ett \� Page 3 BOARD OF DIRECTORS Meeting Date Toee.of Dir. 7/29/9a AGENDA REPORT Rem Number Rem Number Orange County Sanitation District U FROM: Gary Streed, Director of Finance SUBJECT: CONNECTION FEE TRANSFER TO IRVINE RANCH WATER DISTRICT GENERAL MANAGER'S RECOMMENDATION Authorize the transfer of connection fees in the amount of$752,807.04 to the Irvine Ranch Water District. SUMMARY In 1997, two major developments incorrectly paid connection fees to District 7. Although the properties were in District 7, the wastewater flows to the Irvine Ranch Water District. Districts 7 and 14 and the IRWD acted to resolve this error. District 7 transferred the fees to District 14, and IRWD refunded the fees to the property owners in exchange for IRWD connection fees. The approved Agreement specifies that District 14 would use the fees to offset future charges to IRWD. While all of this was happening, the Directors also modified the flow-based plant equity adjustment for IRWD. The IRWD flow was reduced from an assessed rate of 15 mgd, to a calculated flow based upon the flow in the four highest flow months. Actual flow to OCSD was further reduced for equity calculations by the 3.2 mgd that could have been discharged by IRWD to the Back Bay, but was instead sent to OCSD. The result of these two flow reduction agreements was a significant credit on behalf of IRWD. This credit is not expected to be completely applied before the year2000. Because of the amount of this credit, Director Peer Swan and the staff at IRWD have requested that the connection fees be transferred to IRWD, since they actually refunded that amount to the property owners. WeaEWm,M,aiobaMyena.Don Reaoft 0o1 8arrda ,.n@RnLhccnn,ee da Renato. � Page 1 PROJECT/CONTRACT COST SUMMARY $752,807.04, one time transfer BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES None. CEOA FINDINGS N/A ATTACHMENTS 1. Letter dated July 15, 1998 from IRWD GGS:lc \VevLtlablF@KKW�p�Ga Cnfl ReNull'm\&wkaWir+R,rJwnlw E¢ RwvM' vmm Page 2 21AMOncr MYR1Wll CH WA YIV DM CT 15800 Send Canyon Am.,P.O.S=57000,"G,CA 92619-7000 (714)053-53M July 15, 1998 Mr. Gary Streed,Director of Finance County Sanitation Districts of Orange County P.O. Box 8127 10844 Ellis Avenue Fountain Valley,CA 92728-8127 Dear Gary: This letter is in response to our telephone conversation of July 9, 1998 requesting payment to IRWD in the amount of$752,807.04 for connection fees inadvertently collected from our customers, Fletcher Jones Motorcars($80,824.50)and Irvine Apartment Communities ($67I,982.50)by the City of Newport Beach on behalf of District 7. The transfer of these fees to District 14 was accommodated by Agreement dated August 27,1997 with the actual transfer of funds effective on February 28, 1998 per information received from CSDOC on March 5, 1998. Since both of our customers, who also paid IRWD connection fees, should not have been assessed by the City,nor should they have paid these fees to District 7,IRWD promptly refunded the overpaid fees to them. Subsequent to the 1997 accommodation agreement,CSDOC verbally agreed to allow IRWD to make no payments to CSDOC until the IRWD equity credit of several million dollars is exhausted. Projections indicate that IRWD will continue to have equity credit well beyond the year 2000 which will further delay our receipt of these fees. As a result of this chain of events,we are requesting that you take whatever actions necessary to process a check to refund the subject funds to us as soon as possible. Sincerely, /uo-/ /� /JzC4 Richard B. Bell,P.E. Manager,Planning and Resources RBB/clg F:/gnn1.d/eng1fl,"Jone.doc BOARD OF DIRECTORS " ng°"` TO eoa' �imisa AGENDA REPORT HwnMmbef �painMr Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Jim Herberg, Engineering Supervisor SUBJECT: TIME EXTENSION FOR PROFESSIONAL SERVICES AGREEMENT WITH KP. LINDSTROM, INC. GENERAL MANAGER'S RECOMMENDATION Approve Addendum No. 1 to the Professional Services Agreement with KP. Lindstrom, Inc., extending the period of service from June 30, 1998 through December31, 1999. SUMMARY K.P. Lindstrom, Inc. has been providing environmental, planning, and technical assistance for the Strategic Plan, CEQA compliance, and various permitting issues. The existing PSA runs from January 1, 1996 through June 30, 1998. The duration of this PSA needs to be extended to cover the revised Strategic Plan schedule. Staff recommends extending the period of services through December 31, 1999. No change in the total compensation limit is requested. PROJECT/CONTRACT COST SUMMARY The total compensation under the existing PSA is not to exceed $175,000. The total expended to date is $104,800, with $70,200 remaining. BUDGETIMPACT ® This item has been budgeted. (Line item: CORF special Projects 1.e.) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) The proposed action will not change the total compensation allowed under the original PSA. ADDITIONAL INFORMATION The District was recently issued a new ocean discharge permit. The new permit contains revisions to our treatment and discharge requirements. Because of these changes, a number of important baseline assumptions of the Strategic N'wy.W pw,CNt iY Jml BouC�0/b XY��1011 W 6ur�W c OTSOI.Ioc R" 11 Pagel Plan have been reconsidered. In January 1998, recognizing the need to revise the analysis, the Strategic Plan schedule was extended with Board approval. Completion is expected in April 1999. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS N/A MM'V-W'pwq\YOl.IaM ase N�ia.ppy�tlTlATv YpYc WEOI.J¢ Page 2 OMTS COMMITTEE MeeEn929/9eUae ToW.ofD, 71 AGENDA REPORT Iem NumDM fOem NumDe Orange County Sanitation District FROM: Michael Moore, Acting Director of Technical Services Originator: James Colston, Regulatory Specialist SUBJECT: Operating Industries, Inc. Superfund Site, Settlement Agreement GENERAL MANAGER'S RECOMMENDATION Approve Administrative Order on Consent agreement with the United States Environmental Protection Agency to settle potential liability for wastes deposited at the Operating Industries, Inc. Superfund Site, for an amount not to exceed $95,799. SUMMARY The District has received an offer from the United States Environmental Protection Agency (EPA) to settle our potential liability from the Operating Industries, Inc. (011) Superfund site. The EPA has identified the District as a "de minimus" contributor of hazardous materials to the site. After reviewing the settlement offer, District's staff recommends that the District agree to the Tier I Option settlement offer. The cost to settle is $95,799. PROJECT/CONTRACT COST SUMMARY Settlement Cost Summary Tier I Option: $95,799 [Recommended] Tier II Option: $82,393 BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. ❑ Not applicable (information item) This item arose on June 16, 1998, and it was not budgeted in the 1998-1999 fiscal budget. Staff recommends that the General Managers contingency fund monies be used to pay these unexpected costs. ADDITIONAL INFORMATION The District has received an offer from the United States Environmental Protection Agency (EPA) to settle our potential liability from the Operating Industries, Inc. (011) N.Mq.OM1b�I:SUm'dv�/JMppnGa fle�'1 plbM Page 1 Superfund site. The EPA has identified the District as a "de minimus" contributor of hazardous materials to the site. After reviewing the settlement offer and attending and informational meeting, District's staff recommends that the District agree to the settlement offer. The cost to settle is $95,799, subject to factors discussed further below. While this is a substantial expense, settlement is in the interest of the District and its ratepayers. Background From 1975 to 1982 the District hired wastehualers to remove a total of about 29,000 gallons of a mixture of oil, mud, water and sewage from the District's facilities. The material was deposited at the Oil municipal landfill in Monterey Park. The waste manifests indicate that the material was not hazardous, but the District's staff does not have monitoring data on the material. Under Superfund law, pure petroleum products are not considered hazardous, but waste oil/water mixtures are usually viewed as containing hazardous materials. In 1984, the landfill was found to be contaminated with hazardous wastes. The cleanup is estimated to cost over $600 million. EPA has since identified 668 Potentially Responsible Parties (PRPs) as "de minimus" contributors to the landfill. This list includes the District based on the manifests that were submitted with the materials mentioned above. Settlement Offer Under Superfund, the EPA can offer settlement agreements to de minimus and de micromis contributors to contaminated sites. These agreements are important since they offer substantial benefits to those who settle. They resolve any claims for clean-up or remediation costs at the site. Also, they provide protection against further litigation or administrative action by federal and state governments or other PRPs. Superfund litigation can result in enormous legal costs, as demonstrated in the Montrose case involving the Palos Verdes shelf and DDT contamination. EPA's settlement offered was received on June 16, 1998, and the District must choose to settle by August 7, 1998 to meet eligibility requirements. There are two factors which must be considered if we decide to settle. First, EPA offers two tiers for settlement. Tier I ($3.43/gallon = $100,842) protects PRPs from all future litigation and all known and unknown clean-up costs. Tier II ($2.95/gallon = $86,730) is the same except that PRPs may be liable for additional unexpected (unknown) clean-up costs. EPA is offering a 5% administrative discount for PRPs who do not request a volume adjustment or financial hardship exemption. District's staff has reviewed the waste manifests, and there is no reason to suspect that the imputed volume is incorrect. The total cost for settlement at Tier I with the 5% administrative discount is $95,799. District's General Counsel has a conflict of interest on this matter, and he is unable to represent the agency. He recommended settlement if the settlement costs are nominal, otherwise Special Counsel is warranted. ",wpm.nusswnnooi`�Mv. m"a>on ou ew Page 2 Settlement Process ✓ In order to participate in the settlement, the District must submit the signed settlement agreement to EPA by Friday, August 7, 1998. By this date, the District must decide on the Tier I or II option. Payment is due 30 days after the agreement is finalized by the court. EPA will notify de minimus settlors when payment is due. ALTERNATIVES The District may choose to reject the settlement offer from the EPA. As a "recalcitrant party,"the District will likely face lawsuits or enforcement actions from the State or federal governments or lawsuits from other PRPs . The Operating Industries, Inc. Steering Committee has indicated a strong willingness to sue recalcitrant parties. Superfund litigation can result in significant costs. CEQA FINDINGS N/A ATTACHMENTS • Consent and Authorization Farm r+«e.eamusso�.mrvumwe�eo news o,,eo "^^°° Page 3 Consent and Authorization Orange County Sanitation District Orange County Sanitation by the [Respondent] duly authorized representative named, titled and signed below, hereby consents to this Administrative Order on Consent and agrees to be bound by the terms and conditions thereof, and selects one of the following sets of covenants, as provided in this Administrative Order on Consent: YOU MUST SELECT ONE OF THE FOLLOWING: ❑ TIER I DE MINIMIS COVENANTS ($3 .43 per gallon) ❑ TIER II DE MINIMIS COVENANTS ($2 .95 per gallon) BY: TITLE: DATED: Mailing name and address for this Respondent, or for his, her or its agent for service of process : NAME: TITLE: ADDRESS: OPTIONAL ENCLOSURES- Please check the appropriate box if you are filing either of the following optional applications: ❑ Application for financial review to qualify for reduced payment (see note on following page) ❑ Application for volume review (see note on following page) If you submit your signature page on time, and do not file either application, your settlement payment will be reduced by 5%. ADMINISTRATIVE ORDER ON CONSENT OI SUPERFUND SITE SIGNATURE PAGE NOTE REGARDING APPLICATION FOR FINANCIAL REVIEW TO QUALIFY FOR REDUCED PAYMENT: If the Respondent chooses this option, she, he or: it must submit her, his or its signature page together with the. required financial statements, supporting documents, and . signed certification, as described in the 011 Site De Minimis Settlement Offer Letter and its enclosures. If the Respondent provides these materials, the Respondent will have 14 days in which to withdraw her, his or its signature page after the U.S. EPA notifies her, him, or it of the result of the U.S. EPA's financial review. NOTE REGARDING APPLICATION FOR VOLUME REVIEW: If the Respondent chooses this option, she, he or it must submit her, his or its signature page together with the required review form, copies of relevant manifests, other supporting documents, and the Respondent's signed certification, as described in the 011 Site De Minimis Settlement Offer Letter and its enclosures. If the Respondent provides these materials, the Respondent will have 14 days in which to withdraw its, her or his signature page after the U.S. EPA notifies her, him or it of the result of the U.S. EPA's volume review. ADMINISTRATIVE ORDER ON CONSENT Oil SUPERFUND SITE SIGNATURE PAGE JOINT BOARDS OF DIRECTORS Meeting Da a To Boars 7/zg/gB AGENDA REPORT em NumOc Iemmbe Orange County Sanitation Distri FROM: David Ludwi rector of Engineering Originator: John Falkenstein, Construction Management Engineer SUBJECT: OUT-OF-COUNTRY TRAVEL RELATED TO JOB NO. P1-51R. COMPRESSED NATURAL GAS REFUELING STATION. GENERAL MANAGER'S RECOMMENDATION 1) Approve out-of-country business travel for John Falkenstein. 2) Approve payment of estimated travel expenses of$1,300 to witness factory testing of new compressor package. SUMMARY The Director of Engineering requests travel approval to witness factory performance testing of a new natural gas compressor. Mr. Falkenstein is the project manager for Job No. P1-51 R and engineer with the District's construction management division. The witness testing is scheduled to be performed at the IMW Atlas factory in Chilliwack, British Columbia, Canada (suburb of Vancouver) in late August, 1998 with a duration of approximately three days. The Director of Engineering has requested that District's staff witness factory performance testing of the compressor by the District's prior to shipment. The Director of Engineering requests that the District's approve travel-related expenses estimated at $1,300 to perform factory witness testing of the new natural gas compressor. PROJECT/CONTRACT COST SUMMARY The total cost of travel and per diem expenses is estimated to be $1,300. BUDGETIMPACT ® This item has been budgeted. CORF c.(1.)(fl ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) These costs will be charged to Interplant and Joint Facilities, CNG Refueling Station, Job No. P1-51R. ADDITIONAL INFORMATION Job No. P1-51 R, Compressed Natural Gas Refueling Station, was awarded to Airpol Construction in March 1997. The project provides for construction of a compressed natural gas refueling station at Reclamation Plant No. 1 to service biosolids hauling trucks and other vehicles using compressed natural gas. On March 25, 1998 the Board of Directors approved Change Order No. 3 to Job No. P1-51R, Compressed Natural Gas Refueling Station. The contractor, Airpol Construction, was directed to furnish and install a new natural gas compressor package unit. The compressor is being fabricated in the IMW Atlas factory at Chilliwack, B.C. Canada (suburb of Vancouver). The contract documents specify testing the new compressor at the factory. The testing should be witnessed and approved by a District representative. ALTERNATIVES None CECA FINDINGS N/A ATTACHMENTS None JBFJc G NtgbmM elda Dn11 RlwftVIX 1.51R ImeI.AR Ox Page 2 u County Sanitation Districts of Orange County, California P. O. Box 8127. 10844 Ellis Avenue Fountain Valley,CA 92728-8127 Telephone: (714)962-2411 DRAFT MINUTES OF THE COMBINED STEERING AND AD HOC COMMITTEES Wednesday, June 24, 1998 at 5:30 p.m. A combined meeting of the Steering and Ad Hoc Committees of the County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California was held on Wednesday, June 24, 1998, at the Districts'Administrative Office. ROLL CALL The roll was called and a quorum declared present, as follows: OTHERS PRESENT: PRESENT: Thomas L.Woodruff,General Counsel John J.Collins,Joint Chair Ryal Wheeler George Brown,Chair, FAHR Shirley Dettloff,Chair,Dist. 11 Burnie Dunlap,Chair,PDC STAFF PRESENT: Pat McGuigan,Chair,OMTS Donald F. McIntyre, General Manager Bill Steiner,Director/Supervisor Ed Hodges,Director of General Services Administration Mike Moore,Acting Director of Technical ABSENT: Services Peer Swan,Vice Joint Chair Michelle Tuchman, Director of Communications Jan Debay,Chair, District 5 Jim Herberg, Planning Engineer Jean Tappan,Committee Secretary APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS There were no comments by any member of the public. RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The draft minutes of the May 27, 1998 Steering Committee meeting were received, fled and approved as mailed. Minutes of the Combined Steering and Ad Hoc Committees p Page 2 June 24, 1998 REPORT OF THE STEERING COMMITTEE CHAIR The Committee Chair did not make a report. REPORT OF THE GENERAL MANAGER The General Manager Don McIntyre mentioned that there will be presentations to the working committees next month by several members of the DART Committee. The Executive Management Team heard the presentation on Monday. This is the first major step in the bottoms-up effort to re- engineer the operations and maintenance functions of the Districts. Mr. McIntyre also requested that Discussion Item 5, Executive Management Pay, be moved to closed session. There were no objections. There is a construction project underway in Newport Beach to relocate the Lido Pump Station. Because it is about 40 feet below street level, piling driving is required. This is a noisy activity and causes the ground to vibrate. The nearest homeowner is disgruntled. He works out of his home. He called OCN last week, and the station ran a news story. The resident also hired an attorney; John Cavanaugh from General Counsel's office is handling this matter. Staff has offered to provide an apartment for him for three months, but no response has been received to date. Mr. McIntyre briefly discussed the response to the rate structure change notification. Discussion Item 3 was moved to complete the report. 3. Proposed Rate Structure Changes A. Public Response to Notification Michelle Tuchman reported that 40.000 notices were mailed to non-residential and multi-family residential parcels the week of June 8. Eight staff members received training to answer callers' questions on a special telephone hotline, inctuding one who is bi-lingual. About 350 calls have been received, many who are owners of small restaurants and car washes. Letters and a-mails have also been received. Some have indicated that they will attend the public hearing. B. Second Hearing and Adoption of Ordinance on July 29, 1998 Prior to the public hearing at the June 29, 1998 Board meeting, a notice must be published. The members of the Committee directed Michelle to prepare a notice that complies with the requirements of the law. Contingency plans were discussed, in the event there is a large public turnout for the hearing. The Board Room is limited to 90. Additional seating and speakers can be provided in the lobby and outside if necessary. Crowd and traffic control, provisions for parking and additional speakers should be available. There should also be staff members available to provide directions. When the logistics are finalized, faxes should be sent to the Directors advising them of the measures that will be in place. REPORT OF GENERAL COUNSEL General Counsel did not make a report. Minutes of the Combined Steering and Ad Hoc Committees Page 3 June 24, 1998 DISCUSSION ITEMS (Nos. 1-2, 4-6) 1. Appointments to Cooperative Programs Guidance Committee Ed Hodges defined the program which provides funds to cities for projects that reduce influent Flows, such as reducing I and 1, identifying illegal connections, identifying small lines, and developing maintenance standards. The program will be presented to the OMTS in July. A workshop is scheduled for September. Proposals will be solicited in October. In December, members of the Cooperative Programs Guidance Committee would review and rank the proposals and make recommendations through Ed Hodges to the Board. Membership of the Committee was discussed. Staff was directed to revise the number of members to 9, including 3 Directors (the Chairman of the Board and two appointees by the Chairman), the General Manager or Assistant General Manager, 3 ciry, representatives recommended by the City Managers Association, and 2 staff members appointed by the General Manager. Tern limits should also be considered. As the program progresses, representatives from the regulatory agencies may be invited to attend the meeting for informational purposes. The General Manager also indicated that conservation projects may be included in the program. The committee will only make recommendations, not policy. 2. Update on Proposed Agenda for July 1 Special Board Meeting General Counsel Tom Woodruff reviewed the draft agenda for the July 1 Special Board meeting. The Directors suggested changing the sequence of several items. There will be at least 40 items on the Consent Calendar. On the Non Consent Calendar, the existing fee ordinance has been changed to separate ordinances for each Gass of fees in an effort to make revisions easier. Staff was directed to eliminate copies of the resolutions and the ordinances in the agenda packages for this meeting. They will be available for review in the Board Secretary's office. 4. Assign Representatives to Attend California Association of Sanitation Agencies (CASA) Meetings The Executive Committee, comprised of the chairmen of each District, is being eliminated by consolidation. Those members were the assigned delegates to CASA. The Committee recommended that members of the Steering Committee plus up to five other Board members appointed by the Chairman be assigned as representatives. 5. Executive Management Pay This item was moved to Closed Session. 6. Review Agenda Items Scheduled to Be Presented to Committees in July The Committee made no changes to the proposed agenda items. Minutes of the Combined Steering and Ad Hoe Committees , Page 4 June 24, 1998 REPORT OF THE AD HOC COMMITTEE CHAIRMAN Ad Hoe Committee Chairman George Brown indicated that no decision was made at the June 17, 1998 meeting. It was a presentation of the four scenarios and five categories that will have to be considered at a future meeting. APPROVE MINUTES OF THE PREVIOUS AD HOC COMMITTEE MEETING The minutes of the June 17, 1998 Ad Hoc Committee meeting were approved as drafted. COMBINED STEERING COMMITTEE AND AD HOC COMMITTEE DISCUSSION ITEMS (One Item) 1. Review Proposed Meeting Schedule for the Months July. August. and September Jim Herberg presented the Strategic Plan Quarterly Schedule of Events. The next meeting of the Ad Hoc Committee will be combined with the PDC Committee on August 6 to discuss cooperative projects. CLOSED SESSION The Committee convened at 6:45 p.m. in Closed Session, pursuant to Section 54957, to discuss Executive Management compensation. Minutes of the Closed Session are on file with the Board Secretary. The minutes of the Joint Board will report on the actions when they are approved. At 7:06 p.m., the Committee reconvened in regular session. OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for July 29 1998 at 5 p.m. Minutes of the Combined Steering and Ad Hoc Committees Page 5 June 24, 1998 ADJOURNMENT The Chair declared the meeting adjourned at 7:07 p.m. Su 'tied by. Qee J n appan, Steering om i8ee Secretary H:bq.E9bpeMT41EERINO LOMMRIEEYBWMpII�MMnNn Om b a C� p DRAFT MINUTES OF THE OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE WEDNESDAY, JULY 8, 1998 - 5:30 P.M. A meeting of the Operations, Maintenance and Technical Services Committee of the Orange County Sanitation District was held on July 8, 1998, at the Districts Administrative Office. ROLL CALL The roll was called and a quorum declared present, as follows: Directors Present: Staff Present: Pat McGuigan, Chair Blake Anderson, Assistant General Manager Burnie Dunlap, Board Chair Ed Hodges, Director General Services Admin. James Ferryman, Vice Chair Bob Ooten, Director Operations and Maintenance John Collins Patrick Miles, Director Information Technology Steve Anderson Mike Peterman, Director Human Resources Margie L. Rice Mike Moore, Interim Director Technical Services Dave Sullivan Mark Esquer, O&M Process Support Manager Charles E. Sylvia Gerry Jones, O&M Maintenance Manager Kevin Hadden, Interim ECM Manager Directors Absent: Layne Baroldi, Regulatory Specialist Dawn McKinley, Senior Human Resources Analyst Don Bankhead Doug Cook, O&M Chief Operator Peer Swan, Board Vice Chair Tim Avery, Instrumentation Technician Simon Watson, O&M Maintenance Supervisor Tom Flanagan, Project Specialist Frankie Woodside, Committee Secretary Pat Magnante, Alternate Secretary APOINTMENT OF CHAIR PRO TEM No appointment was necessary. OCSD 0 P.O.Box 9127 0 FOUM M Vella/,cA 0272U127 0 (714)962-2411 Minutes of the Operations, Maintenance and Technical Services Committee Page 2 July 8, 1998 PUBLIC COMMENTS There were no comments by any member of the public. APPROVAL OF MINUTES The minutes of the June 3, 1998 Operations, Maintenance and Technical Services Committee meeting were approved as corrected. Dave Sullivan was not present at the June 3, 1998 meeting. Director Dunlap and Director Sullivan abstained. REPORT OF THE COMMITTEE CHAIR Director McGuigan gave no report. She welcomed Burnie Dunlap as the new Board Chair and introduced Patrick Miles, the new Information Technology Director. REPORT OF THE GENERAL MANAGER General Manager was not present. REPORT OF THE ASSISTANT GENERAL MANAGER No report was given. REPORT OF THE DIRECTOR OF GENERAL SERVICES ADMINISTRATION (Hodges) Ed Hodges reported on the following item(s): 1. The District currently leases an 18.75-acre parcel of land to First Federal Bank, which is now Seaside Financial. This lease is up in September. Our current lease is $60,000 annually plus 10% of gross receipts over $600,000 per year. The District is anticipating entering into a one-year extension, which the contract allows, with Seaside. We have just made a proposal to them in the amount of$75,000 annually or 15% of gross receipts, whichever is greater. Last year and the year before we received $60,000 annual payment plus an additional $6,000 payment so they've made about $660,000 per year. If they did that again at 15% that would receive $99,000. We are looking to have the negotiation completed by • Minutes of the Operations, Maintenance and Technical Services Committee Page 3 July 8, 1998 next month and will bring the package to the OMTS in September for approval. An outside consultant completed the appraisal, Boznanski & Co., and Director Collins would like to see a comparison completed regarding the square foot charge for a one-year lease and a two to five year lease. 2. Two weeks ago I received a letter regarding the PVEA funds from Assemblyman Baugh's office that stated our request was the second request he was submitting, out of three, and it would be viewed favorably. We could except confirmation as early as next month. 3. Last month 1 had the opportunity to participate in a conference by COG and altemative fuels. The session I was in, was with a gentlemen named Kurt Gladstein who is with Gladstein and Associates and he brought to the attention of the group the possibility of additional funding sources for alternative fuels vehicles and for infrastructure. We are currently looking into that and the possibility that we would be able to participate in any additional funds. I will update you at the September meeting. 4. As of a week ago the compressor, for the CNG project, was scheduled to arrive on site on September 11"' and we are anticipating a two-week installation time. I've met with the other partners of the CNG project and we are targeting a mid-October 199E dedication date. We are currently assembling a list of invitees. REPORT OF THE DIRECTOR OF INFORMATION TECHNOLOGY (Dahl) No report was given. REPORT OF THE DIRECTOR OF OPERATIONS AND MAINTENANCE (Ooten) Bob Ooten reported on the following tem(s): 1. The new Maintenance Building ribbon-cutting ceremony occurred this last month. Maintenance personnel are almost completely moved in. 2. The ferric chloride contract extension has been negotiated with about a 2% reduction in cost. We currently spend about$2M a year on this chemical. 3. The water efficiency program that this committee and the board approved in conjunction with the Metropolitan Water District of Orange County to install Minutes of the Operations, Maintenance and Technical Services Committee Page 4 July 8, 1998 17,500 low-flush toilets, with most of them in our service area, is progressing rapidly. Currently 82% of the toilets are paid for and almost 60% of them installed. 4. DART with up to 40 staff are working on the reinvention effort developing programs that are substantially important to O&M's future. I would like to introduce the presenters of the DART Reinvention Report and Implementation Plan. They include: Gerry Jones, O&M Maintenance Manager; Dawn McKinley, Senior Human Resources Analyst; Doug Cook, O&M Chief Operator, Tim Avery, Instrumentation Technician; Simon Watson, O&M Maintenance Supervisor and Tom Flanagan, Project Specialist. O&M Monthly Report Operations & Maintenance Monthly Report: A report for the month of May was submitted to the OMTS Committee for review. This report focuses on compliance, safety, financial data and performance measures for O & M and is intended to provide Committee members with information on a timely basis. Administration costs have increased because of a $40,000 study pertaining to DART and other salary and benefits cost increases for the Director of O&M and the Administrative Assistant. REPORT OF THE INTERIM DIRECTOR OF TECHNICAL SERVICES (Moore) LA County Board of Supervisors, after eight years of trying to obtain a composting facility permit in the Lancaster area, approved it yesterday. One of our contractors, Bio- Gro, owns that composting facility. In the paper one of the quotes that was made states "The Board of Supervisors began germ welfare against the Antelope Valley today." That is what we are dealing with and those are the kinds of statements we have to put up with. REPORT OF GENERAL COUNSEL General Counsel was not present. Minutes of the Operations, Maintenance and Technical Services Committee Page 5 July 8, 1998 DISCUSSION ITEM(S) 1. OMTS98-021 COOPERATIVE PROJECTS PROGRAM Motion: Moved, seconded and carried to authorize the General Manger to proceed with the Cooperative Projects Program and to go forward to the Joint Boards with following recommended changes: 1. Change the allocated FY 98-99 Budget line item, Section 8 page 11, from $100,000 to $5M. This item will be brought forward at the next FAHR Committee meeting. 2. Change the Agenda Report Summary item "C."to reflect representation from the Sanitary Districts as well. This will be stipulated as "Agency." 2. OMTS98-022 DART REINVENTION REPORT AND IMPLEMENTATION PLAN Motion: Information only. Gerry Jones to provide Committee, when they next meet, with all phases of funding and an overview of where the project is at and where it's going. This item will go forward to the Steering Committee. 3. OMTS98-023 BIOSOLIDS MANAGEMENT QUARTERLY REPORT Motion: Information only. CLOSED SESSION There was no closed session. Minutes of the Operations, Maintenance and Technical Services Committee Page 6 July 8, 1998 OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Shane McGann, Tule Ranch, thanked the Board, Layne Baroldi and Mike Moore for their continued support. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING None requested. CONSIDERATION OF UPCOMING MEETINGS The next Operations, Maintenance and Technical Services Committee meeting is scheduled for September 2, 1998 at the District's Administrative Offices. ADJOURNMENT The Chair declared the meeting adjourned at 7:40 p.m. Submitted by: an�i�e U 6bbs k Frankie Woodside Operations, Maintenance and Technical Services Committee Secretary \VadonWaMl\wp-dta%gsaW101woodsida\OMTS\19981IulyV-8-98 Minutes dm OMTS MeeCn9 Date Tn m a d. 07/a/9B 0]/$/98 AGENDA REPORT 1einNoi°� "e NivnDu 99-021 //O G County Sanitation Districts of Orange County, California �L/ FROM: Edwin E. Hodges, Director General Services Administration C K7 SUBJECT: COOPERATIVE PROJECTS PROGRAM GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to proceed with the Cooperative Projects Program with the Agencies within our service area. SUMMARY At the June 1998 OMITS Committee, staff presented the concept of a Cooperative Projects Program with the agencies in our service area. The committee directed staff to make some modifications to the Cooperative Projects Program package and to bring those changes back to the July OMTS. Attached for your guidance and information, is a copy of the Cooperative Projects Program package with the modifications that were requested. Those sections of the Cooperative Projects Program that were modified have been highlighted. The highlighted sections are for your information only. The changes that were made included the following: 1. The elimination of the District staff contact names. 2. The elimination of our mailing address and the addition of our street address. This is required to inform prospective participants of where our Technical Workshop is going to be held. 3. Additional wording advising all participants that our total first funding is in an amount"up to $5.0 million". 4. Additional wording notifying the agencies that projects may fund up to 50% of the total project cost, receive a low interest loan (1-3%) or a combination of the grant monies and low interest loan. Additionally, staff discussed the need for and the role of a Guidance Committee. On June 24, 1998, staff discussed the make up of this committee with the Steering Committee. Based on that discussion, the Steering Committee approved the following committee make up and presented this to the full Boards at the June 24, 1998 meeting: A. Three members of the District Board of Directors (Board Chair and two members of the Board, appointed by Chair). B. General Manager or Assistant GM. 1Yw4WIe1 Wy.W pNMIWnps�lCuyseOw P�PWx"�RW OMI50% Page 1 C. Three City Staff/Special Districts Representatives. Two of these representatives will be will be appointed by the City Managers Association. The other representative will be made up of someone from either the Midway Sanitary District or the Costa Mesa Sanitary District. D. Two District Staff Members, appointed by the General Manager. The focus of this group would be to review the proposals submitted for the Cooperative Projects Program and make a recommendation through the Director of GSA to the OMTS. The OMTS would review the recommendations from the Guidance Committee and make a recommendation to the full Board. Ed Hodges, Director of General Services Administration, will present a verbal report on this item. PROJECT/CONTRACT COST SUMMARY Staff has budgeted $100,000.00 in the fiscal year 1998/99 CIP budget for this program. It is expected that $10M per year will be budgeted thereafter. This is pending review of the FAHR Committee at their July meeting. Depending on the outcome of that meeting the first year rate may raise from $100,000.00 to $5,000,000.00. BUDGETIMPACT ® This item has been budgeted. (Line item: Section 8, page 11) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES 1. Not to proceed with the Cooperative Projects Program CEQA FINDINGS N/A ATTACHMENTS Cooperative Projects Program EEH: fw meaonmrerrm auW:ew,m�mp..`.cmwrn.e vropae vroa,unuuiv Po.iwe aaoon om.s am Page 2 PeviW F1NJ0 Orange County Sanitation District Cooperative Projects Program This Information Packet Contains the Following: Section A. Cooperative Projects Program Introduction and Guidance Package Section B. Cooperative Projects Program Application Forms Section C. Cooperative Projects Program Contract Forms Please Note: A Guidance Committee will review all proposals and make a recommendation to the District's Board of Directors in March 1999. Please Review the Enclosed Program Materials Immediately! TABLE OF CONTENTS Section A: Cooperative Projects Program Introduction and Guidance Package A.I. INTRODUCTION.............................................................................. 4 A.II. PROGRAM TIMELINE....................................................................... 5 A.III. PARTICIPATION GUIDELINES, REQUIREMENTS and CONDITIONS........ 6 A.IV. QUALIFYING PROJECT CATEGORIES................................................ 9 A.V. INTRODUCTION TO THE APPLCIATION PROCESS.............................. 11 A.VI. INTRODUCTION TO THE COOPERATIVE PROJECTS PROGRAM CONTRACT..................................................................................... 13 A.VII. IF YOU NEED HELP......................................................................... 15 Section B: Cooperative Projects Program Application Forms B.I. PROJECT APPLICATION OVERVIEW................................................ 16 B.11. APPLICANT INFORMATION............................................................. 17 B.III. PROJECT DESCRIPTION/STATEMENT OF WORK.............................. 18 B.IV. PROJECT COST BREAKDOWN........................................................ 20 B.V. PROJECT MILESTONE SCHEDULE.................................................. 24 B.VI. PROJECT AUTHORIZATION DOCUMENTATION................................ 25 B.VII. CERTIFICATE OF INSURANCE/LETTER OF SELF INSURANCE........... 26 Section C: Cooperative Projects Program Contract Forms C.I. CONTACT OVERVIEW................................................................... 27 C.II. CONTRACT DOCUMENTS............................................................. 28 2 DEFINITIONS For purposes of this document, the following definitions have been provided: 1. AGENCY — any city or local wastewater collection AGENCY who operate within the service area of the Orange County Sanitation District. 2. DISTRICT —the Orange County Sanitation District whose address is 10844 Ellis Avenue, Fountain Valley, California 92708. 3. Inflow - water-entering manhole structures; either through pick-holes, around the annular space between the ring and cover, or because of a leaking manhole structure. 4. Infiltration — water entering into a local sewer due to misaligned joints, root intrusion, broken pipes, etc. S. (1/1) — Inflow and/or Infiltration. 6. OMTS Committee —the Operations, Maintenance and Technical Services committee of the Districts Board of Directors. The committee is tasked with reviewing all operational decisions and making a recommendation to the District's Board of Directors. 7. Guidance Committee—the committee will consist of the following: - Three members of the District Board of Directors (Board Chair and two members of the Board, appointed by Chair); - General Manager or Assistant General Manager, - Three City Staff Representatives. (Two of these representatives will be made up of city representatives will be appointed by the City Managers Association. The remaining representative will represent the local wastewater agencies (Midway City Sanitary, Costa Mesa Sanitary)); and - Two District Staff Members appointed by the General Manager. 8. PROGRAM - the Cooperative Projects Program. 3 Section A: Program Introduction and Guidance Package A.I. INTRODUCTION The Orange County Sanitation District (DISTRICT) is pleased to announce a new Cooperative Projects Program (PROGRAM) opportunity available exclusively to AGENCIES within its service area. This PROGRAM, offers to co-fund projects sponsored by the AGENCY that wants to eliminate or reduce inflow and/or infiltration (1/I) of wastewater from local wastewater collection lines into the DISTRICT facilities, and/or repair or replace poor performing, aging local wastewater collection system infrastructure. The DISTRICT will fund projects by either contributing up to 50% matching funds against AGENCY funds applied to a project, granting a low interest loan (3%) to fund a portion of the project, or a combination of contribution and low interest loan. All AGENCY S within the jurisdictional boundaries of the DISTRICT are eligible to participate in this PROGRAM. The total matching funds available from the DISTRICT for FY 1998/99 are up to $5,000,000.00. These monies will be available at the beginning of their fiscal year, July 1, 1998. Applications will be accepted beginning on October 1, 1998 and will be accepted until December 31, 1998. No time extensions will be granted for the application process. The PROGRAM is not a competition in the traditional sense. Funding will be distributed to as many projects as possible, given the limited amount of funding in the first year, to applicants that satisfy the requirements specified in this guidance package. However, because funding is limited, the availability of matching funds or low interest loans, can not be guaranteed. The DISTRICT has compiled a list of Qualifying Project Categories (Section A.IV.) intended to provide project diversity to the AGENCY, while achieving significant reductions in 1/1. Only projects that are listed as one of the DISTRICT-defined qualifying project categories are eligible to receive funds. You are invited to attend the DISTRICT Information Conference and Technical Workshop on September 8, 1998 at the DISTRICT Administration Building, located at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018. The Information Conference will discuss all funding opportunities under the FY 1998/99 Program. The Conference will begin at 9:00 a.m. in the Board Room. The Technical Workshop will begin at 11:00 a.m. in the BoardRoom and will discuss program requirements and answer applicant questions. Answers to the questions raised at this workshop will be printed and distributed thereafter. The following subsections describe the DISTRICTS PROGRAM participation requirements. Application Forms and Contract Documents are included in this guidance package as Sections B and C. 4 A.II. PROGRAM TIMELINE The PROGRAM will be conducted in accordance with the timeline illustrated in Table A-1. Project applications can be submitted beginning on October 1, 1998 and will be accepted until the close of business on December 31, 1998. Applications postmarked after December 31, 1998 will not be accepted! Table A-1. Key Program Dates PROGRAM EVENT DATE Information Conference/Technical Workshop September 8, 1998 Earliest Date that Applications will be Accepted October 1, 1998 Last Date that Applications Will be Accepted December 31, 1998 Guidance of Applications January 15, 1999 Application Review by Board of Directors February 24, 1999 Anticipated Award of Contract February 25, 1999 Please note that the above dates are firm, and NO extensions will be granted for any reason. FAILURE TO MEET THE DEADLINES DETAILED IN TABLE A-1 WILL RESULT IN FORFEITURE OF DISTRICT FUNDING. If you have questions or need clarification about the above schedule, please contact DISTRICT staff for assistance. Please refer to Subsection A.VII of this Section for a list of contacts. 5 A.M. PARTICIPATION GUIDELINES, REQUIREMENTS 8 CONDITIONS This Program guidance package has been designed to simplify the application process. However, to ensure that the Program conforms to all applicable laws, DISTRICT regulations and policies, the following requirements and conditions have been established, and apply to all applicants: A. ELIGIBILITY REQUIREMENTS Any AGENCY within the DISTRICTS jurisdictional boundaries is eligible to submit an application under the Program. The AGENCY responsible for entering into a contract with the DISTRICT for the proposed project must be the AGENCY that submitted the application. Participation by private businesses is allowed, but would be handled through separate subcontracts or agreements with the funded applicant. The applying AGENCY is solely responsible for the performance of any contract under the Program. • Teaming by more than one AGENCY and the pooling of funds is encouraged. A lead team member must be designated as the applicant. Multiple AGENCY'S may form a Joint Powers Authority (JPA) under the Program. All members of any JPA must meet the eligibility requirements of the preceding paragraph. A letter designating the lead AGENCY and authorizing such AGENCY to act on behalf of the other participants must be submitted along with the project application. B. FUNDING AVAILABILITY A total of up to $5,000,000.00 in DISTRICT funds is available for the first year of this program. It is planned and anticipated but not guaranteed that District staff will request additional monies in subsequent years. However, it should be noted that the availability of funds in subsequent year cannot be guaranteed. C. FUND DISTRIBUTION The DISTRICT is currently considering distributing funds in one of three ways: 1. Provide a matching contribution in an amount up to 50% of the proposed total project cost. 2. Provide a low interest loan (1-3%) to the applicant, up to 50% of the proposed total project cost. 3. A combination of matching funds and low interest loan, up to 50% of the proposed total project cost. 6 D. FUNDS PAID ON A REIMBURSEMENT-BASIS ONLY DISTRICT funds will be distributed on a Mutually Negotiated Basis, based on the successful completion of milestones identified in the proposal. Ten percent (10%) of all payments will be withheld until successful completion of the project. Projects that do not reach completion are not eligible to receive any retained funds. E. ADDITIONAL CONDITIONS ON DISTRICT FUNDS • Additional DISTRICT funds will not be available to fund project cost overruns. Applicants must use additional AGENCY funds or sources other than DISTRICT funds to cover project cost increases. • DISTRICT funds are not intended to fund on-going projects or existing staff salaries. Administrative and project management costs necessary to implement new projects are allowable; however, the DISTRICT reserves the right toapprove the amount or percentage of allowable costs. • DISTRICT funds are not intended to fund the continuation or extension of an existing project. However, projects that expand an existing service/project, and also satisfy the Qualifying Project Category requirements set forth in Subsection A.IV, are allowable. F. QUALIFYING PROJECT CATEGORIES The DISTRICT has selected several 1/1 reduction strategies intended to provide project diversity to AGENCY with the goal of achieving significant 1/1 reductions. Only projects that fall within these selected categories qualify for participation in the PROGRAM. Section A.IV describes the Qualifying Project Categories in detail. G. PROJECT COMPLETION DEADLINES • All projects must be 100% complete on or before the due dates. Extensions may be granted, on a case-by-case situation, depending upon the extraordinary circumstances. • All project deliverables, end products, final reports, etc., must be received by the DISTRICT Contracts Administrator before the project will be considered complete. Proof of project completion must accompany any request for reimbursement of approved funds. 7 H. REPORTING REQUIREMENTS The project reporting requirements established for the PROGRAM are intended to ensure adequate monitoring of the use of public funds, while avoiding the imposition of excessive reporting burdens on the funding recipients. Individual reporting requirements will vary depending on the project. For example, a project involving the purchase of a piece of capital equipment will have very limited reporting requirements; e.g., date the AGENCY took delivery, date the equipment was put into service, etc. Conversely, a project that proposes to perform a complex demonstration project may be asked to periodically report on project progress, issues identified and resolved, and results to date. For planning purposes, applicants should assume the following reporting schedule. This schedule should be included in your application submittal under Project Milestone Schedule (See Section B, Subsection B.V.). • A brief Interim Report will be submitted at the appropriate halfway point in the overall project schedule. The interim report should include the following topics, at a minimum: a) tasks completed; b) issues identified; c) resolutions implemented; and d) results to date. Any implemented or planned modifications, to the project description/statement of work, project costs, or project schedule, should be highlighted in the Interim Report. • A concise Final Report, which discusses the project goals and accomplishments, is required at the completion of the project. The final report should include data collected during project performance, as appropriate, and document significant results and conclusions. The reporting requirements will be tailored to a specific project. In such cases, a member of the DISTRICT staff will contact the applicant at the time of project approval to discuss recommended modifications to the reporting schedule. I. AUDIT REQUIREMENTS All projects funded with DISTRICT funds are subject to audit The provisions of the audit are discussed in the contract, included as Section C of this document. It is highly recommended that applicants employ generally accepted accounting procedures when administering their Project. All costs associated with auditing, will not be an eligible expense under the PROGRAM. 8 A.IV. QUALIFYING PROJECT CATEGORIES All projects funded under the PROGRAM MUST relate to one of the following approved project categories. Applications for projects that do not reasonably fit within the qualifying project categories will not be approved and will not be eligible to receive funds. The DISTRICT retains the sole discretion to determine project eligibility. If you have questions about your project's qualification status, please contact a member of the DISTRICT staff. Additional information on this issue is contained in Subsection A. Vll of this Section. Category 1: Reduction of Inflow The reduction of inflow into the local wastewater collection system and subsequently the DISTRICT trunk systems will reduce the total flow entering the DISTRICT treatment plants and thereby reduce the District's need to build costly capital improvements. One of the goals of this program is to reduce the amount of water entering manhole structures; either through pick-holes, around the annular space between the ring and cover, or because of a leaking manhole structure. A project designed to eliminate or reduce the occurrence of inflow into the local sewers would be eligible for funding under this program. Category 2: Reduction of Infiltration Much like inflow, the infiltration of water into a local sewer due to misaligned joints, root intrusion, broken pipes, etc., is a situation that affects a great number of smaller systems. Types of projects that would be eligible for funding under this program include: the identification and elimination of illegal connections into the wastewater collection system from roof drains, pool drains, or street runoff; smoke testing, the elimination of roots in laterals using a vaporooting process, etc. Category 3: Repair of Aging Infrastructure Recent Closed Circuit Television (CCTV) video done in a small local line demonstrated the need to repair some sections of pipe that are cracked or broken. Some of the local collection system is older than 30 years old and in need of repair. The types of projects that would be eligible for funding under this program include slip lining or the use of trenchless technologies to repair damaged or broken infrastructure. Category 4: Replacement of Aging Infrastructure AGENCIES have reported that some of their local wastewater collection system infrastructure is in need of replacement. The replacement of these lines in-kind would be eligible for funding under this program. However, projects ineligible for funding 9 under this program include increasing the size of an existing line to handle a planned increase in flow, the installation of a new line in a newly developed area, etc. Category 5: Development of Electronic Maps Asset identification and management is a critical part of this PROGRAM. As such, the development of a countywide wastewater collection and conveyance map would be funded under this program. Many of the AGENCIES in the DISTRICT service area currently have or are developing Geographical Information System (GIS). One of the long-term goals of this program is to properly identify and manage all of the installed assets. 10 A.V. INTRODUCTION TO THE APPLICATION PROCESS A Cooperative Projects Program Application Form must be completed and submitted prior to receiving approval to participate in the PROGRAM. The necessary forms are included in SECTION B: Cooperative Projects Program Application Forms. The following discussion provides additional information and instruction to help clarity the application process. A complete Cooperative Projects Program Application consists of four mandatory elements: 1. Completed Application forms from Section B; 2. Documentation from the AGENCY, approving the proposed project and allocating all project funds; 3. Two signed copies of the Contract (included in Section C); and 4. A Certificate of Insurance or Letter of Self-Insurance, prepared in accordance with the Contract terms and conditions (see Section C, page 26). The Application forms in Section B consist of seven Subsections, the first of which is an overview of the Application. The remaining six Subsections are to be completed by the applicant. They include: B.11 Applicant Information; B.III. Project Description/Statement of Work; B.IV. Project Cost Breakdown; B.V. Project Milestone Schedule; B.VI. Project Authorization Documentation; and B.VII. Certificate of Insurance or Letter of Self-Insurance Subsection B.II requests general information from the applicant. This information is to be provided in the designated spaces on the form. Subsection B.11l requests that the applicant provide a project description delineating the following: a) project goals and objectives; b) scope of work; and c) project end products. Following Application approval, the Project Description/Statement of Work will become an integral element of the Contract, and be subsequently referred to as Exhibit A: Project Description/Statement of Work. Subsection B.IV requests a cost breakdown of the proposed project including: a) total project cost; b) AGENCY funds allocated to the project; c) DISTRICT fund requested; and d) additional funding contributions to the project other than AGENCY funds or DISTRICT Funds. Following application approval, the Project Cost Breakdown will become an integral element of the Contract, subsequently referred to as Exhibit B: Project Cost Breakdown. Following application approval, the Project Milestone Schedule will become an integral element of the Contract, and subsequently referred to as Exhibit C: Project Milestone Schedule. Subsection B.VI requests information regarding the anticipated benefits of your project. DISTRICT Staff will construct a Benefit/Cost Analysis for each project based upon the input provided by the applicant. Please provide all data pertinent to your proposed project. Also, please provide information that is accurate and realistic. If insufficient or unsatisfactory data is provided in the Cooperative Projects Program Application, DISTRICT Staff may request additional information. This has the potential to delay or jeopardize approval of your project. Subsection B.VII requests that the applicant attach copies of the following documentation: 1. A copy of the Agenda Item from the AGENCY meeting agenda package; 2. Document on AGENCY letterhead that: a) authorizes the proposed project; b) commits the AGENCY to a firm Project Schedule reflected in the application; c) c) appropriates funds to be applied to the project; 3. Two signed copies of the Contract. This is discussed further in Subsection A.VI. Subsection B.VII requests that the applicant attach a Certificate of Insurance or Letter of Self-Insurance to the contract. The insurance requirements are delineated in Section C, page 26 of this document. Please note that all PROGRAM contracts require a Certificate of Insurance or Letter of Self-Insurance. Every effort has been made to develop an application process that makes participation in the PROGRAM easy for any AGENCY within the service area of the DISTRICT. However, if you have a question about your application, or require additional technical assistance, please contact a DISTRICT staff representative identified in Section A.VII. 12 A.VI. INTRODUCTION TO THE COOPERATIVE PROJECTS PROGRAM CONTRACT To participate in the PROGRAM, the applicant must enter into a legally binding contract with the DISTRICT. The Contract Documents are included in Section C of this information package. About the Contract The Cooperative Projects Program Contract (Contract) is streamlined compared to typical DISTRICT contracts, this has been done to expedite the contracting process. The Contract contains only those terms and conditions deemed mandatory by the DISTRICT. Based upon extensive contract experience, the DISTRICT believes the terms and conditions of the Contract should be acceptable to all recipients of the funds. How to Execute Your Contract... The Contract requires two signatures to fully execute the agreement: 1. Signature of a representative(s) authorized to enter into contractual relations on behalf of the applying AGENCY; and 2. Signature of the DISTRICT Contracts Manager. The procedure to execute the Contract is as follows: 1. The AGENCY applying for funds should sign (i.e., execute) each of the two Contract Signature Pages copies included in Section C of this guidance package. The appropriate signature pages are on pages 34 and 35. 2. Both signed copies of the Contract Signature Page should be submitted with the completed Project Application Forms (Section B) to the address provided below. 3. Upon receipt of the Application forms, authorizing documentation, two signed Contract Signature Pages and a valid Certificate of Insurance/Letter of Self- Insurance, the DISTRICT will review the Project Application materials. 4. Acceptable applications will be forwarded to the DISTRICT Board of Directors for approval. This normally requires approximately two to three months from the time the application is received by DISTRICT Staff. Once the Board of Directors approves the application, the DISTRICT Contracts Manager will sign both copies of the Contract. The Contract is fully executed when the DISTRICT Contracts Manager signs the documents. 13 5. One fully executed copy of the Contract will be mailed to the Applicant; the DISTRICT will retain the other copy. Please note that the project is authorized to proceed ONLY after the Contract is fully executed, i.e., approved by the DISTRICT Board of Directors, and signed by the DISTRICT Contracts Manager. Project applicants who choose to begin their projects prior to the Contract being fully executed do so at their own risk) All completed Application forms should be submitted to: Director of General Services Administration Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Signed Contracts and project authorizing documentation should be submitted to: Contracts Manager Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 If you have any questions about the above instructions, please contact the DISTRICT Staff identified in Section A.VII for assistance. 14 A.VII. IF YOU NEED HELP... DISTRICT Staff are available to assist you throughout your Cooperative Projects Program Application preparation process. To help expedite assistance, please contact the following staff person as applicable: • For General or Administrative Information, Please Contact: Director of General Services Administration Phone: (714) 593-7200 FAX: (714) 962-8379 • For Technical Assistance, Please Contact: Engineering Supervisor Phone: (714) 593-7310 FAX: (714) 962-5018 • For Contractual Questions, Please Contact: Contracts/Purchasing Manager Phone: (714) 593-7580 FAX: (714) 962-0728 If you would like to share your concerns on the PROGRAM, or direct an inquiry to the members of the DISTRICT Board of Directors, please address your correspondence to: General Manager Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 FAX: (714) 962-0356 15 Section B: Cooperative Projects Program Application Forms B.I. PROJECT APPLICATION OVERVIEW Please complete the following Cooperative Projects Program Application Forms and provide all information requested. If you have questions or need assistance, please contact the designated DISTRICT staff representatives listed in Section A, Subsection A.VII. 16 B.11. APPLICANT INFORMATION A. Please provide the following application information in the space provided. Return this page as part of your Cooperative Projects Program Application. AGENCY Name: Address: Point of Contact: Title: Telephone Number: FAX Number. B. Please answer the following question(s): YES NO 1. Are you submitting a Joint Application with another AGENCY? ❑ ❑ 2. If"Yes", are you authorized to act on behalf of all participants? ❑ ❑ 3. If"Yes", please provide the names of all participating AGENCY'S: a) b) c) d) e) YES NO If you answered "Yes"to questions 1 and 2 above, have you ❑ ❑ attached a letter from each entity designating a lead AGENCY and authorizing that AGENCY to act on behalf of the other participants? 17 B.III. PROJECT DESCRIPTION/STATEMENT OF WORK A. Please review the Qualifying Project Categories described in Section A, Subsection A.IV, and check the Category box that corresponds to your proposed project. Please return this page as part of your Cooperative Projects Program Application: 1. Reduction of Inflow ❑ 4. Replacement of Infrastructure ❑ 2. Reduction of Infiltration ❑ 5. Electronic Mapping ❑ 3. Repair of Infrastructure ❑ 6. Other ❑ B. Please answer the following questions by checking the appropriate box and providing explanatory information as requested: YES NO Is the proposed project a continuation of an existing project? ❑ ❑ Is the proposed project an expansion of an existing project? ❑ ❑ Is the proposed project a repair/replacement of an existing Facility (line segment, manhole structure, etc.)? ❑ ❑ C. If you checked the "Yes' box for any of the above questions, please provide a brief explanation of the current project you wish to continue. If the proposed project is an expansion of an existing project or a repair/ replacement of an existing project, please provide a brief explanation of the existing project and the proposed expansion. Please attach extra sheet(s) if necessary. If you checked the "Yes"box, please explain: 18 D. Please attach a detailed description of your proposed project, including the following elements: 1. Project Goals and Objectives; 2. Scope of Work, including all Project Tasks; and 3. Project End Products and Deliverables. E. Please label your Project Description "EXHIBIT A: PROJECT DESCRIPTION STATEMENT OF WORK" and include it in your Cooperative Projects Program Application. 19 B.IV. PROJECT COST BREAKDOWN Please complete all information requested on "Exhibit B: Project Cost Breakdown" and include it in your Cooperative Projects Program Application. It will become an integral element of the Contract. 20 EXHIBIT B: PROJECT COST BREAKDOWN (Please include this page as part of your Cooperative Projects Program Application) A. Please provide the following information regarding project funding: What is your funding contribution $ When will the funding become available? B. Please provide the following Project Cost by Category Information: PROJECT COST BY FUNDING CATEGORY AMOUNT 1. AGENCY funds available in FY 98-99 $ 2. Cooperative funds requested $ 3. Additional Project Co-funding $ 4. Total Project Cost $ YES NO Is the Cooperative Projects Program Funds request less ❑ ❑ than or equal to 50% of the Total Proposed Project Cost? Is the Cooperative Projects Program Funds request less ❑ ❑ than or equal to 25% of the Total Proposed Project Cost? Is the applicant willing to accept a low interest loan less than ❑ ❑ or equal to 50% of the Total Proposed Project Cost? Is the applicant willing to accept a combination of a low ❑ ❑ interest loan and matching funds totaling less than or equal to 50% of the Total Proposed Project Cost? Does the applicant have sufficient funds available to cover ❑ ❑ the total project cost, considering that the Cooperative Projects Program Funds are available on a reimbursement-basis only? Does the applicant have sufficient funds available to cover ❑ ❑ ANY costs increases, considering that increases in the Cooperative Projects Program Fund will not be available? 21 C. Please list all funding sources other than the Cooperative Projects Program: NON-COOPERATIVE PROGRAM FUNDING SOURCE AMOUNT 1. $ 2. $ 3. $ 4. $ TOTAL OTHER PROJECT CO-FUNDING: $ D. As applicable, please list all project costs by cost element. Please provide as much detail as practicable when detailing project costs. For example, please provide labor categories, hourly rates, number of hours, etc. when defining labor costs. Please return this page as part of your Project Application: CAPITAL EQUIPMENT COSTS (PIPE, MAN-HOLE FRAME AND COVER, ETC.) AMOUNT 1. ......................................... ........................................................ $ 2. ..................................................................................................... $ 3. ..................................................................................................... $ 4. .............. ...... ....... - -................................................. $ TOTAL CAPITAL EQUIPMENT COSTS: $ DIRECT LABOR COSTS: AMOUNT 1. labor houra_x_________..$/hour= $ 2. labor hours x..........."nAl= $ 3. labor hours x__...___...$/hour= $ labor hours_x„_________$/hour=. $ 4. ............................................................ TOTAL DIRECT LABOR COSTS: $ 22 OTHER DIRECT COSTS, INCLUDING SUBAGENCYS: AMOUNT 1. ............................................................................................... $ 2. ..................................................................................................... $ 3. ..................................................................................................... $ 4. .................................................................................................... $ TOTAL OTHER DIRECT COSTS: $ ADMINISTRATNE COSTS: $ TOTAL PROJECT COST: $ Please note that the Total Project Cost reflected in subsections B and D, above, should be consistent. 23 B.V. PROJECT MILESTONE SCHEDULE A. Please prepare and attach a Project Milestone Schedule for your project. The Schedule should include anticipated completion dates for each task, activity, event, or milestone identified in the Project Description/Statement of Work. Also, please include anticipated dates for the submission of Interim and Final Reports, and other project end products or deliverables. B. The format requirements for the Project Milestone Schedule are flexible; however, two examples are provided as suggested formats: Example 1: Tabular Milestone Schedule Format MILESTONE 1 COMPLETION DATE Task 1. — Project Completion I December 1, XXXX Task 4.—Acceptance Testin January 1, XXXX Task 7. —Final Report Submitted Aril 1, XXXX Example 2: Waterfall Chart Project Milestone Schedule Format PROJECTTASK JAN FEB MAR APR MAY JUN JUL Task 1 - Project Desi n Task 3 - AGENCY Award Task 4 - E ui ment/Material Delivery Task 6- Acceptance Testing Task 8- Final Report Submittal • C. Please label your Project Milestone Schedule "EXHIBIT C: PROJECT MILESTONE SCHEDULE" and include it in your Project Application Package. 24 B.VI. PROJECT AUTHORIZATION DOCUMENATION Please attach the following items and submit them with your Cooperative Projects Program Application: A. AGENCY documentation that: 1. Authorizes the proposed project; 2. Commits the AGENCY to the firm Project Milestone Schedule reflected in the Application; and 3. Appropriates the Project Funds and any other co-funding to be applied to the project. B. A copy of the Agenda Item from the AGENCY meeting agenda package. C. Two signed copies of the Contract Signature Page. Copies are provided in Section C, Pages 34 and 35. 25 BXII. CERTIFICATE OF INSURANCE/LETTER OF SELF INSURANCE Please include a Certificate of Insurance or Letter of Self-Insurance, as applicable to your AGENCY, as an element of your Cooperative Projects Program Application Package. It has been the experience of the DISTRICT that many of the AGENCY'S within our service area are self-insured. As such, a sample Letter of Self-Insurance is included below. This sample is intended only to be representative of an acceptable letter. Your AGENCY'S format and content may be different. Please refer to the requirements of Section C, page 29 for more information. If you have questions regarding insurance, please contact the DISTRICT Contracts Administrator at (714) 593-7585. Contracts Administrator Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728 Subject: DISTRICT Cooperative Projects Program Letter of Self-Insurance This is to certify that the AGENCY of self-administers and insures, defends, settles and pays third party claims for bodily injury, personal injury, and death and/or property damage. Protection under this program is warranted to meet or exceed $1 million combined Single Limit, per occurrence. Additionally, the AGENCY of is permissively self-insured for Worker's Compensation under the laws of the Sate of California. The AGENCY agrees to provide the Orange County Sanitation District with thirty- (30) day's prior written notice of any changes in this program. If you need any further information regarding this risk-retention program, please contact Risk Management Staff at (000) 000-0000. Risk Manager for the AGENCY of 26 Section C: Cooperative Projects Program Contract Forms C.I. CONTRACT OVERVIEW The DISTRICT Cooperative Projects Program contract documents are included on the following pages. Please remember to sign and date the two signature pages (pages 34 and 35) and include them with your Cooperative Projects Program Application submittal. IN WITNESS WHEREOF, the parties of this Contract have caused this Contract to be duly executed on their behalf by there authorized representatives. RECOMMENDED FOR APPROVAL: ORANGE COUNTY SANITATION DISTRICT BY: Chair, Board of Directors BY: Secretary, Board of Directors APPROVED AS TO FORM: (Agency Name) THOMAS L. WOODRUFF, BY: DISTRICT COUNSEL (Name) BY: Title: 27 C.II. CONTRACT DOCUMENTS Application No.*** Contract No. ORANGE COUNTY SANITATION DISTRICT COOPERATIVE PROJECTS PROGRAM CONTRACT WHEREAS, the parties to this Contract are the Orange County Sanitation District (hereinafter referred to as "DISTRICT") whose address is P.O. Box 8127, Fountain Valley, California 92728, and *** (hereinafter referred to as "AGENCY") and WHEREAS, DISTRICT is the regional AGENCY with primary responsibility for collecting, treating and disposing of wastewater in Orange County, California and DISTRICT is authorized under State law to implement the California Porter— Cologne Water Quality Control Act; and WHEREAS, DISTRICT Board of Directors created a Regional Review Committee to develop a work program to fund projects from the separate account and pursuant to approval of the work program by DISTRICT Board of Directors. DISTRICT Board of Directors authorize a contract with AGENCY for the project described in Exhibit "A" (Project Description) incorporated herein and made a part hereof, and WHEREAS, AGENCY has met the requirements for receipt of Cooperative Projects Program Funds as set forth in AGENCY'S Cooperative Projects Program Application dated NOW THEREFORE, the Parties agree as follows: 1. AUDIT-AGENCY shall, at least once every year or within two years of the termination of the contact if the term is less than two years, be subject to an audit by DISTRICT or its authorized representative to determine if the revenues received by AGENCY were spent for the program outlined in the Cooperative Projects Program Application. DISTRICT shall coordinate such audit through AGENCY'S audit staff. If an amount is found to be inappropriately expended, DISTRICT may withhold revenue from AGENCY in the amount equal to the amount that was inappropriately expended. Such withholding shall not be construed as DISTRICT'S sole remedy and shall not relieve AGENCY of its obligation to perform under the terms of this Contract. 2. TERM -The term of this Contract is from date of contact execution by both parties through completion of the project or , whichever occurs first unless terminated earlier as provided for in Paragraph 4 below entitled 28 Termination. All project deliverables and requests for reimbursement must be received by . Failure to meet this deadline will result in forfeiture of Cooperative Projects Program. Extensions to this deadline will not be granted. No work shall commence prior to the Contract start date, except as AGENCY'S cost and risk and no charges are authorized until this Contract is fully executed. 3. TERMINATION - In the event any party fails to comply with any term or condition of this Contract, or fails to provide the services in the manner agreed upon by the parties, including, but not limited to, the requirements of Exhibits "A" and "C", it shall constitute a material breach of the Contract. The non-breaching party shall have the sole and exclusive option either to notify the breaching party that it must cure this breach within fifteen (15) days or provide written notification of its intention to terminate this Contract with thirty (30) day's written notice. Notification shall be provided in the manner set forth in Paragraph 21 below, entitled —"Notices." Termination shall not be the exclusive remedy of the non- breaching party. The non-breaching party reserves the right to seek any and all remedies provided by law. DISTRICT reserves the right to terminate this Contract for non-breach and will reimburse AGENCY for actual costs incurred in performance of this Contract through the effective date of termination for non- breach. 4. INSURANCE - Prior to the start of this Contact, AGENCY shall furnish evidence of standard form of commercial or comprehensive general liability insurance with a combined single limit (general and automotive) of One Million Dollars ($1,000,000). AGENCY shall require any Contractor performing services funded by this Contract to also provide evidence of standard form commercial or comprehensive general liability insurance for any project requiring work to be performed in a public right-of-way. The policy shall have a combined single limit of$2.0 million per occurrence for bodily injury, including death, personal injury, property damage, and products liability, with $5.0 million general policy aggregate; or, aftematively$2.0 million aggregate separate for this contract. AGENCY shall maintain such coverage during the term of this Contract and any extensions thereof. DISTRICT shall be named as an additional insured on such liability policy and thirty- (30) days written notice of modification of any such insurance shall be given by AGENCY to DISTRICT. Such modification is subject to pre-approval by DISTRICT. If AGENCY fails to maintain the required insurance coverage, DISTRICT reserves the right to terminate the Contract or purchase such additional insurance and bill AGENCY or deduct the cost thereof from any payments owed to AGENCY. 5. INDEMNIFICATION -AGENCY agrees to hold harmless, defend, and indemnify DISTRICT, its officers, employees, agents, representatives and successors-in- interest against any and all loss, damage, cost or expenses which DISTRICT, its officers, employees, agents, representatives and successors-in-interest may incur or be required to pay by reason of any injury or property damage caused or 29 incurred by AGENCY, its employees, sub-agency's contractors, or agents in the performance of this Contract. 6. PAYMENT - A. DISTRICT shall pay AGENCY a Firm Fixed Rate of*** Dollars ($***) upon completion of the project on a reimbursement basis. Any funds not expended upon early contract termination or contract completion shall revert back to the Cooperative Projects Program. Payment of charges shall be made by DISTRICT to AGENCY within sixty (60) days after approval by DISTRICT of an itemized invoice prepared and furnished by AGENCY. B. An invoice submitted to DISTRICT for payment must be prepared in duplicate, on agency letterhead, and list DISTRICT contract number, period covered by invoice, and AGENCY'S Employer Identification Number and submitted to: Orange County Sanitation District, P.O. Box 8127, Fountain Valley, CA 92728. Attn: Accounts Payable Department. C. No funds shall be paid out to AGENCY pursuant to this contract, until the project described in Exhibit"A" is completed and proof of completion is provided to DISTRICT. If the project described in Exhibit "A" is not completed and satisfactory proof of condition is not provided to DISTRICT, no monies shall be due and payable to AGENCY. Proof of completion shall include a Final Report detailing the work that was done. D. Additional Cooperative Projects Program Funds will not be available to fund project cost overruns. Any project cost overruns must be funded from other than the Cooperative Projects Program. E. The firm Fixed Price amount shall not exceed 50% of the total Cooperative Projects Program Funds applied to the project described in Exhibits "A", "B", and "C" of this Contract. F. If, at the completion of the Project described in Exhibit "A", the actual amount of Cooperative Projects Program Funds utilized in performance of the project is less than the amount described in Exhibit "B", the Firm Fixed Price amount reimbursed to AGENCY by DISTRICT shall not exceed 50% of the actual Cooperative Projects Program Fund amount applied to the project. 7. COMPLIANCE WITH APPLICABLE LAWS—AGENCY agrees to comply with all federal, state, and local laws, ordinances, codes and regulations and orders of public authorities in the performance of this Contract and to ensure that the provisions of this clause are included in all subcontracts. 30 8. EMPLOYEES OF AGENCY A. AGENCY shall be responsible for the cost of regular pay to its' employees, as well as cost of vacation, vacation replacement, sick leave, severance pay and pay for legal holidays. B. AGENCY shall also pay all federal and state payroll taxes for its' employees and shall maintain worker's compensation and liability insurance for each of its employees. C. AGENCY, its officers, employees, agents, or representatives shall in no sense be considered employees or agents of DISTRICT nor shall AGENCY, its officers, employees, agents or representatives be entitled to or eligible to participate in any benefits, privileges, or plans, given or extended by DISTRICT to its employees. 9. OWNERSHIP —Title and full ownership rights to any products purchased or developed under this Contract shall at all times remain with AGENCY. 10. NON-DISCRIMINATION — In the performance of this Contract, AGENCY shall not discriminate in recruiting, hiring, promotion, demotion, or termination practices on the basis of race, religious creed, color, natural origin, ancestry, sex, age, or physical handicap and shall comply with the provisions of the California Fair Employment & Housing Act (Government Code Section 12900, et seq.), the Federal Civil Rights Act of 1964 (P.L. 88-352) and all amendments thereto, Executive Order No. 11246 (30 Federal Register 12319), and all administrative rules and regulations issued pursuant to said Acts and Order. AGENCY shall likewise require each sub-AGENCY to comply with this paragraph and shall include in each such subcontract language similar to this paragraph. 11. ASSIGNMENT—The rights granted hereby may not be assigned, sold, licensed, or otherwise transferred by either party without the written consent of the other, and any attempt by either party to do so shall be void upon inception. 12. NON-EFFECT OF WAIVER —AGENCY or DISTRICT failure to insist upon the performance of any or all of the terms covenants or conditions of this Contract, or failure to exercise any rights or remedies hereunder, shall not be construed as a waiver or relinquishment of the future performance of any such terms, covenants or conditions or of the future exercise of such rights or remedies, unless otherwise provided for herein. 13. ATTORNEY'S FEES — In the event any legal proceeding or action (including arbitration) is filed in connection with the enforcement or interpretation of this Contract, the losing party in said action shall pay all attorney's fees and costs. 31 14. FORCE MAJEURE— Neither DISTRICT nor AGENCY shall be liable or deemed to be in default for any delay or failure in performance under this Contract or interruption of services resulting, directly or indirectly, from acts of God, civil or military authority, acts of public enemy, war, strikes, labor disputes, shortages of suitable parts, materials, labor of transportation, or any similar cause beyond the reasonable control of DISTRICT or AGENCY. 15. SEVERABILITY— In the event that any one or more of the provisions contained in this Contract shall for any reason be held to be unenforceable in any respect by a court of competent jurisdiction, such holding shall not affect any other provisions of this Contract, and the Contract shall then be construed as if such unenforceable provisions are not a part hereof. 16. HEADINGS— Headings on the paragraphs of this Contract are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Contract. 17. DUPLICATE EXECUTION —This contract is executed in duplicate. Each signed copy shall have the force and effect of an original. 18. GOVERNING LAW—This Contract shall be construed and interpreted and the legal relations created thereby shall be determined in accordance with the laws of the State of California. Venue or resolution of any dispute shall be Orange County, California. 19. PRE-CONTRACT COSTS—Any costs incurred by AGENCY prior to DISTRICT receipt of a fully executed Contract shall be incurred solely at the risk of the AGENCY. In the event that a formal Contract is not executed, the DISTRICT shall not be liable for any amounts expended in anticipation of a formal Contract. If a formal Contract does result, pre-contract cost expenditures authorized by the Contract may be reimbursed in accordance with the cost schedule and payment provision of the Contract. 20, NOTICES —Any notices from either party to the other shall be given in writing to the attention of the persons listed below, or to other such addresses or addressees as may hereafter de designated in writing for notices by either party to the other. A notice shall be deemed received when delivered or three days after deposit in the U.S. Mail postage prepaid, whichever is earlier. DISTRICT: Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728 Attn: Board Secretary 32 21. AGENCY: 22. ENTIRE CONTRACT—This Contract represents the entire agreement between the parties hereto related to AGENCY providing services to DISTRICT and there are no understandings, representations, or warranties of any kind except as expressly set forth herein. No waiver, alteration or modification of any of the provisions herein shall be binding on any party unless in writing and signed by the party against whom enforcement of such waiver, alternation or modification is sought. 33 IN WITNESS WHEREOF, the parties of this Contract have caused this Contract to be duly executed on their behalf by there authorized representatives. RECOMMENDED FOR APPROVAL: ORANGE COUNTY SANITATION DISTRICT BY: Chair, Board of Directors BY: Secretary, Board of Directors APPROVED AS TO FORM: (AGENCY Name) BY: THOMAS L. WOODRUFF, (Name) DISTRICT COUNSEL By: (Title) 34 IN WITNESS WHEREOF, the parties of this Contract have caused this Contract to be duly executed on their behalf by there authorized representatives. RECOMMENDED FOR APPROVAL: ORANGE COUNTY SANITATION DISTRICT BY: Chair, Board of Directors BY: Secretary, Board of Directors APPROVED AS TO FORM: (AGENCY Name) BY: THOMAS L. WOODRUFF, (Name) DISTRICT COUNSEL By: (Title) 35 DRAFT MINUTES OF PLANNING, DESIGN, AND CONSTRUCTI N COMMITTEE MEETING Orange County Sanitation District Thursday, July 9, 1998, at 5:30 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, July 9, 1998, at 5:30 p.m., in the District's Administrative Office. ROLL CALL The roll was called and a quorum declared present, as follows: PDC COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Blake Anderson, Assistant General Manager Jan Debay, Chair David Ludwin, Director of Engineering John Collins Bob Ooten, Director of O&M Bumie Dunlap, Board Chair John Linder, Construction Manager Patsy Marshall Doug Stewart, Engineering Manager Eva Miner-Bradford Gerald Jones, Maintenance Manager Christina Shea Mark Esquer, Engineering Manager Dave Sullivan Rob Thompson, Plant Automation Manager Chuck Winsor, Engineering Supervisor Directors Absent: Doug Cook, Chief Operator Tom Flanagan, Project Specialist Brian Donahue Jeff Shubik, Project Manager Peer Swan, Board Vice Chair Jim Mullins, Project Manager Bob Zemel Simon Watson, Maintenance Supervisor Tim Avery, Instrumentation Tech Gail Cain, E ewtive Assistant OTHERS PRESENT: Mary Lee, Carollo Engineers Bill Knopf, Carollo Engineers APPOINTMENT OF CHAIR OF PDC COMMITTEE Director Burnie Dunlap, Board Chair, announced the appointment of Jan Debay as Chair of the PDC Committee. OCSD . F.D.ear 8127 . Fowtain Vaky,CA 927288t27 . (7U) 962-2411 Minutes of the PDC Committee Meeting Page 2 July 9, 1998 APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. PUBLIC COMMENTS There were no public comments. RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the June 4, 1998 PDC Committee meeting were approved as drafted, with an abstention from Directors Jan Debay and Dave Sullivan. REPORT OF THE COMMITTEE CHAIR The Committee Chair indicated a need to add one item to the Agenda, designated as PDC98-32, needing immediate action that arose subsequent to the publication of the agenda. She reported that an additional item could be added pursuant to California Government Code Section 54954.2(b)(2) upon a two-thirds' vote of the Committee. The Director of Engineering reported on the contract re Replacement of Santa Ana River Interceptor Control Gale, Contract No. 2-40. He advised the Committee that as a result of the lowest bid, which was received from NCCI Enterprises, Inc., being greater than the District's Engineer's estimate, it was necessary for this item to be submitted to the Committee for discussion prior to action by the Board. Further, construction is required to be completed prior to winter, and therefore immediate action is necessary. It was moved, seconded and unanimously carried: 1) Find that the matter arose subsequent to the posting of the agenda pursuant to authority of California Government Code Section 54954.2(b)(2); 2)Approve plans and specifications for Replacement of Santa Ana River Interceptor Control Gate, Contract No. 2-40; 3) Receive and file bid tabulation and recommendation; and 4)Award contract to NCCI Enterprises, Inc. for Replacement of Santa Ana Interceptor Control Gate, Contract No. 240,for $430,470. REPORT OF THE BOARD CHAIR The Board Chair did not make a report. REPORT OF THE GENERAL MANAGER The General Manager was not present. Minutes of the PDC Committee Meeting Page 3 July 9, 1998 REPORT OF THE ASSISTANT GENERAL MANAGER The Assistant General Manager did not make a report. REPORT OF THE DIRECTOR OF ENGINEERING The Director of Engineering distributed a poster and small postcard relative to the "Great Toilet Exchange"that will be taking place on August 1 and 2. He advised the poster will be posted at OCSD's booth at the Orange County Fair. Those who stop by the booth will be given postcards. OCSD is participating in a toilet exchange for local toilets in conjunction with Municipal Water District of Orange County(MWDOC) and Metropolitan Water District of Southern California (MWD). For toilets brought in for exchange, OCSD will contribute $10 per toilet. Homeowners in Orange County providing proof of residency within the service area, will be able to purchase a toilet for$20 when they bring in their old toilet for exchange. Otherwise, a deposit will be required that will be refunded upon delivery of their old toilet. This is a great opportunity for us to be a part of the conservation program., The Director of Engineering updated the Committee on the Lido Pump Station construction in Newport Beach. That construction started several weeks ago. During the shoring operation, several people in the area were disturbed by the operation due to the vibration and noise associated with it. There has been some damage, but very minor. All claims are being handled as expeditiously as possible. The construction should be complete by June of next year. REPORT OF GENERAL COUNSEL General Counsel was not present. CHANGE ORDER REPORTS Information Only Item. The Director of Engineering reviewed the Monthly and Quarterly Change Order Reports and the Report of Construction Contracts with Potential Change Orders over Five Percent (5%). QUARTERLY REPORT ON PSA ADDENDA Information Only Item. The Director of Engineering reviewed the Quarterly PSA and Addenda Report. Minutes of the PDC Committee Meeting Page 4 July 9, 1998 INFORMATIONAL ITEM (Item No. 1) 1. PDC98-27: Information Only Item. DART Reinvention Report and Implementation Plan. Gerald Jones, Maintenance Manager, Simon Watson, Maintenance Supervisor, and Tim Avery, Instrumentation Tech, reviewed the District's Assessment Reinvention Team (DART) Reinvention Report and Implementation Plan, and answered questions from the Directors. ACTION ITEMS (Item Nos. 25) 2. PDC98-28: Accept Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17-1, as complete and authorize execution of the Notice of Completion with Colich Bros., Inc. dba Colich & Sons. Motion: It was moved, seconded, and duly carried to recommend approval. 3. PDC98-29: 1) Ratify Change Order No. 1 to Job No. P2-70 with Space Leasing Company, Inc. for an addition of$1,220, increasing the total contract amount to $185,209; and 2) Accept Replacement of Construction Management Trailers at Plant No. 2, Job No. P2-70, as complete, authorize execution of the Notice of Completion, and approve the Final Closeout Agreement with Space Leasing Company, Inc. Motion: It was moved, seconded, and duly carried to recommend approval. 4. PDC98-30: Ratify Change Order No. 7 to Job No. J-34-1 with Advanco Constructors, Inc. for an addition of$299,900, increasing the total contract amount to $7,629,807, and reduce the contract retention from five percent of the contract amount to $15,000. Motion: It was moved, seconded, and duly carried to recommend approval. 5, PDC98-31: Award a Professional Services Agreement (PSA) for Electrical Power System Studies, Job No. J-25-4, to Carollo Engineers for a total not to exceed $1,975,951. Motion: It was moved, seconded, and duly carried to recommend approval. CLOSED SESSION There was no closed session. OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. r Minutes of the PDC Committee Meeting Page 5 July 9, 1998 MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. CONSIDERATION OF UPCOMING MEETINGS The next Planning Advisory Committee (PAC) Meeting is on Thursday, July 16, 1998, from 9:30 a.m. to 12:30 p.m. There is a Board Workshop on the Strategic Plan scheduled for Saturday, August 22, 1998, from 9:00 a.m. to 12:00 p.m. There is an Ad Hoc Meeting on the Strategic Plan scheduled for Thursday, August 27, 1998, at 5:30 p.m. The next Planning, Design, and Construction Committee Meeting is scheduled for Thursday, August 6, 1998. ADJOURNMENT The Chair declared the meeting adjourned at 7:40 p.m. Submitted by: Gail Cain / PDC Committee Secretary Nlwp tlfobrgWIX.VCL08VULVAMutai.Ox PDCCOMMITTEE NeeBngD TOR BC . 7/09/98 7/291dl AGENDA REPORT rttm NomW I Item Number Orange County Sanitation District 00 FROM: David Ludwin, Director of Engineering Originator: John Linder, Construction Manager SUBJECT: FILE NOTICE OF COMPLETION FOR SLATER AVENUE PUMP STATION SEWAGE SYSTEM IMPROVEMENTS, CONTRACT NO. 11-17-1 GENERAL MANAGER'S RECOMMENDATION Accept Slater Avenue Pump Station Sewage System Improvements, Contract No. 11-17-1, as complete and authorize execution of the Notice of Completion with Colich Bros., Inc. dba Colich & Sons. SUMMARY The project was completed on August 14, 1997. A notice of project completion was not filed nor was a closeout agreement prepared due to a pending claim from the Contractor. The Contractor has not pursued this claim, therefore Counsel has recommended that the Notice of Completion be filed to bring this contract to a close. There are no bonus or penalty provisions in the contract, however, Liquidated Damages are $500/per day. The District will continue to hold retention of$333,500 to offset Liquidated Damages for the 667 days of delay to the project completion until the potential claim is settled. If a settlement is made with the Contractor, that offer will be brought back to the PDC Committee and the Board for discussion and action. PROJECT/CONTRACT COST SUMMARY Original Contract Price: $5,626,370.00 Change Orders to Date: $ 339,207.03 Percentage Increase 7.09% Amended Contract Price $6,025,577.03 G NrpbCNpeMa pM pryvtNCPtft]t M.)ApBCp R. 1� Page 1 BUDGETIMPACT ❑ This item has been budgeted. (Line item: Districts 3 and 11 CIP) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION Contract No. 11-17-1, Slater Avenue Pump Station Sewage System Improvements, provides for the construction of a new 29 million gallons per day (MGD) pumping station, 42-inch vitrified clay pipe (VCP), 48-inch reinforced concrete pipe (RCP) gravity lines, and a 36-inch ductile iron force main. The design for this $5.7 million project was performed by Carollo Engineers and the construction contract was awarded in November 1993 to Colich Bros., Inc. dba Colich & Sons. The construction of this contract is complete. ALTERNATIVES None CEQA FINDINGS N/A ATTACHMENTS None G N19^�+NV^^4e P'aRepwObOP11t]f M.)T%B OaI R� 1rs Page 2 PDC COMMITTEE Meedn9Dx ads. 719/9ate To a 7/29/9B AGENDA REPORT Rem Number Item Number ?Dr IS Z9 Orange County Sanitation District FROM: David Ludwin, Director of Engineerin Originator: John Falkenstein, Construction Management Engineer SUBJECT: RATIFY CHANGE ORDER NO. 1 AND APPROVE CLOSEOUT AGREEMENT FOR REPLACEMENT OF CONSTRUCTION MANAGEMENT TRAILERS AT PLANT NO. 2, JOB NO. P2-70 GENERAL MANAGER'S RECOMMENDATION 1) Ratify Change Order No. 1 to Job No. P2-70 with Space Leasing Company, Inc. for an addition of$1,220.00, increasing the total contract amount to $185,209.00. 2) Accept Replacement of Construction Management Trailers at Plant No. 2, Job No. P2-70, as complete, authorize execution of the Notice of Completion, and approve the final closeout agreement with Space Leasing Company, Inc. SUMMARY Change Order No. 1 includes one item of added work to Job No. P2-70. There are no error items associated with this change order and no time extensions. There are no bonus or penalty provisions. The contract was completed on time. PROJECTICONTRACT COST SUMMARY Original Contract Price $ 183,989.00 Prev. Authorized Changes $ 0.00 This Change Order (add) $ 1,220.00 Percent Increase $ 0.7% Amended Contract Price $ 185,209.00 BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted; however, costs are being reimbursed by the District's insurance carrier. ❑ Not applicable (information item) c•ewe.iud•w.W..a.d,.n m WV ZIMWIWH Page 1 ADDITIONAL INFORMATION Job No. P2-70, Replacement of Construction Management Trailers at Plant No. 2, consists of furnishing and installing four new office trailers to house the construction management staff. The new trailers total 2,880 square feet and replace units that burned on January 13, 1997. Related site work includes asphalt paving, new electrical, telephone, data conduits, and wiring. The job was designed by District's staff and the Contract was awarded in February 1998 to Space Leasing Company. The contract is now complete. The following summarizes the Change Order. Item Description Amount Days Type No. 1 1 Misc. Elect. Modifications 1 $1,220.00 1 0 1Desi n Chan e Total Change Order No. 1 1 $1,220.00 1 0 ALTERNATIVES None CEQA FINDINGS None ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order No. 1 G d1.ry¢ 2.2 WWR Page 2 BUDGET INFORMATION TABLE REPLACEMENT OF CONSTRUCTION MANAGEMENT TRAILERS AT PLANT NO. 2 Job No. P2-70 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS ESTIMATED ESTIMATED PROJECTlfASK ADOPTED PROJECT BUDGET REVISED AUTHORIZED AUTHORIZATION PROPOSEDTOTALE%PENDITURE COMPLETE TO BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE DATE(%) Construction Contract NIA b 183,989 E 1,220 S 185.209 NIA $1,200' 5 185,209 $ 185,209 100% TOTAL 5 - 5 183,989 S 1,220 1 S 185.209 $1,200- S 185,209 $ 185,209 101% This is cost reimbursable by the Districts Insurance H1w d1.Nn,W T2-IDWuEBaiob1cu1 CHANGE ORDER STATUS REPORT REPLACEMENT OF CONSTRUCTION MANAGEMENT TRAILERS AT PLANT NO. 2 Job No. P2-70 APPROVAL CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED ITEM DATE COST TO DATE INCREASE TIME TIME TO DATE (DAYS) (DAYS) CONTRACT 3/23/98 $183,989.00 $183,989 60 after approval of 60 after approval of building permit building permit CO NO. 1 Proposed $1,220.00 $185.209 0.7% 0 60 after approval of building permit Hiwp,dta`engUOBSardCONTRACTST2.7fthwstst ds Page 1 of 3 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Space Leasing Company Inc. C.O. No.: One (1) Dale: July 29, 1998 Job: Replacement of Construction Management Trailers at Plant No. 2, Job No. P2-70 Amount of this Change Order(Add) (9educt) $ 1.2 00.00 In accordance with contract provisions, the following changes in the contract and/or contract work are hereby authorized and as compensation,the following additions to or deductions from the contract price are hereby approved. ITEM 1 —MISCELLANEOUS ELECRICAL MODIFICATIONS The Contractor was directed to add six dedicated circuits on the north side of the trailer complex for charging electric vehicles used by inspection staff. The original drawings showed only one circuit to serve six duplex outlets which would overload the circuit if more than one electric vehicle is being charged at the same time. The Contractor was also directed to add two additional lighting fixtures in a large storage room located on the west side of the new trailer complex. Districts' staff requested this change due to the fact that this room may be used in the future as a conference room or office, which requires better lighting. The additional work included furnishing and installing two new ceiling Fluorescent light fixtures, wire and 5 new 20-amp circuit breakers. This item was negotiated with the Contractor in accordance with the General Provisions, Section 10-5 (B) (2) (a). Reference Space Leasing letter dated April 9, 1998. COST THIS CHANGE ORDER ITEM $ 1,220.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL COST THIS CHANGE ORDER: $ 1,220.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days wadonWaotwq.dtaWg1J08SaCONTRACTSy'2.71FCO.I. w Page 2 of 3 'V COUNTY SANITATION DISTRICTS OF ORANGE COUNTY 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor: Space Leasing Company Inc. C.O. No.: One (1) Dale: July 29, 1998 Job: Replacement of Construction Management Trailers at Plant No. 2. Job No. P2-70 The additional work contained within this Change Order can be performed incidental to the prime work and within the time allotted for the original Contract and any extensions to the Contract time made by this and all previously issued Change Orders. It is therefore mutually agreed that no extension of time is required for this Change Order, and that no direct or indirect, incidental or consequential costs, expenses, losses or damages have been or will be incurred by Contractor, except as expressly granted and approved by this Change Order. SUMMARY OF CONTRACT TIME Original Contract Dale: March 23, 1998 Original Contract Time: 60 Days after obtaining City Permits Original Completion Date: May 17, 1998 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 0 Calendar Days Revised Contract Time: N/A Revised Final Completion Due Date: N/A Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $ 183,989.00 Prev.Authorized Changes $ 0.00 This Change (Add) (Deduct) 8 1,220.00 Amended Contract Price $ 185,209.00 Wadon'date1lwp.dtaWn9U08S 8 CONTRACTST2.7pWO-t.dw Page 3 of 3 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY 109" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Space Leasing Comoany Inc. C.O. No.: One (1) Date: July 24, 1998 Job: Replacement of Construction Management Trailers at Plant No. 2. Job No. P2-70 Board Authorization Date: July 2f. 1998 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA Sub Bled by: l 6-z9 C struction Manager Date pprov .gam Director o Engineering Date Accepted by: SPACE LEASING COMPANY Contractor l —fie \tra %diftlWp.CMW UOBS8COr1TRACTSUvz•701CO-1.a r PDC COMMITTEE MeWngD� ro-X AGENDA REPORT ?DC9&3D % E Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Umesh Murthy, Project Engineer SUBJECT: CHANGE ORDER NO. 7 TO OCEAN OUTFALL RELIABILITY UPGRADES, JOB NO. J-34-1, AND PHASE 2 SITE AND SECURITY IMPROVEMENTS AT PLANT NO. 2, JOB NO. P2-355 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 7 to Job No. J-34-1 with Advanco Constructors, Inc. for an addition of$299,900.00, increasing the total contract amount to $7,629,807.00, and reduce the contract retention from five percent of the contract amount to $15,000. SUMMARY Change Order No. 7 to Ocean Outfall Reliability Upgrades, Job No. J-34-1, consists of one item of added work and an item to reduce the contract retention. During hydraulic testing of the new Surge Tower, excessive leakage was observed. Structural analysis of the Surge Tower performed by the contract designer, Carollo Engineers, revealed that additional steel reinforcing and concrete are necessary to prevent the leakage. Since the majority of the additional work is required to correct an error in the design, Carollo Engineers has agreed to reimburse the District for the added work associated with the error. The Contractor has completed the original contract work in accordance with the project's plans and specifications. Therefore, staff recommends that the remaining retention be reduced to $15,000. Retention will be held on the additional work associated with this Change Order in accordance with the contract requirements. Liquidated Damages on this contract are $500 per day and there are no bonus provisions. The added work is expected to be complete within the original contract time. PROJECT/CONTRACT COST SUMMARY Original Contract Price: $7,122,693.00 Previously Authorized Changes: $ 207.214.00 This Change (Add): $ 299,900.00 Change Orders to Date: $ 507,114.00 Percentage Increase: 7.12% Amended Contract Price: $7,629,807.00 c NBbWNye^<a rn.n A.wmwocv-3r.,M.w report 1-0e Gx A� d,� Page 1 BUDGETIMPACT ® This item has been budgeted. (Line Rem: c.2.a and 6.e.c) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Job Number J-34-1 consists of construction of a new Surge Tower No. 1 at Plant No. 2 to improve the reliability of the standby Ocean Ouffall. Carollo Engineers prepared the plans and specifications for this job. The construction contract for this job was awarded to Advanco Constructors on January 9, 1997. Advanco Constructors completed the construction of the new Surge Tower No. 1 and proceeded to test the surge tower per the job specifications. The test procedure included filling the tower with water to check for water tightness and structural integrity. During the test, when the water was at the highest level, excessive cracking of the concrete and leakage was observed from the surge tower. Carollo Engineers was contacted and responded immediately by sending Engineers to the job site to evaluate the cause of the leakage. Carollo Engineers reviewed the structural design of the surge tower and.concluded that additional steel reinforcement and concrete were necessary to lower stresses in the reinforcement and prevent leakage from the surge tower. The additional concrete will be applied as shotcrete to the exterior of the tower. Shotcrete is concrete that is conveyed through a hose at high velocity. This change order also includes the removal and reinstallation of several appurtenances surrounding the surge tower, which conflict with the required structural modifications. Carollo Engineers concur with Staffs opinion that this change is necessary to correct an error in the design of the surge tower and has agreed to reimburse the Districts for same. A plan change was prepared and transmitted to Advanco Constructors to obtain a cost proposal to do the work. Carollo Engineers and the District have reviewed the cost proposal and found it to be acceptable. Advanco Constructors has requested a reduction in contract retained funds from five percent, to a set amount of$15,000. The project, exclusive of this change order, is now complete and all additional work is expected to be completed by the current contract completion date of January 8, 1999. Work to date has been completed in accordance with the contract requirements. Staff recommends this reduction of retained funds. As c mieio�,myenm O.n aeporewocv.a..uomea u.an zee as e— &,� Page 2 work proceeds on the structural modifications included in this change order, retention will be held from the progress payments in accordance with the contract provisions. The following summarizes the Change Order: Item No. Description Amount Days Type 1 Modifications to Surge Tower $299,900.00 0 Error No. 1 2 Reduction in Retention $ 0.00 0 Other TOTAL- Change Order No. 7 $299,900.00 0 Item No. 1 is necessary to correct an error in the design of the structure. ALTERNATIVES No cost effective alternatives. CEQA FINDINGS Final EIR approved on July 1989 and notice of determination filed on February 9, 1995. ATTACHMENTS 1. Budget Information Table 2. Change Order Table 3. Change Order No. 7 URCAC:k 1YeMtlablFlB��O�o OnX Pe�h➢OLV.:1l,M)eMa,e�1)88.bc a—.a, a,� Page 3 BUDGET INFORMATION TABLE Ocean Outfall Reliability Upgrades and Phase II Site and Security Improvements JOB NO. J-34-1 and P2-35-5 THIS REQUEST ORIGINAL CURRENT PROPOSED PROPOSED FUNDS PROPOSED ESTIMATED ESTIMATED PROJECTFfASK AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED BUDGET TOTAL EXPENDITURE COMPLETE BUDGET BUDGET INCREASE BUDGET TO DATE INCREASE AUTHORIZATION AUTHORIZATION TO DATE TO DATEJ%) Consultant s 226.740 $ 226.740 $ $ 226.740 $ 226,740 $ $ $ 226,740 $ 168,875 74% Staff $ 675,377 $ 907.036 $ - $ 907.036 s 907.036 $ - $ - $ 907,036 $ 640,089 71% Contractor $ 7,478,883 $ 8,580,962 $ 299,900 $ 8,880,862 $ 7,329.907 $ *299,900 E 299,900 1 $ 7,629,807 $ 7,302.042 85% TOTAL $ 8,381,ODD $ 9,714,738 $ 299,900 $ 10,014,638 1 8.463,683 $ *299,900 $ 299,900 b 8,763,583 $ 8,111.006 83% *Proposed budget increase in the amount of$299,900 will be reimbursed by consultant H\w dlebngyoasardnntrtgN24-1=713adget less i CHANGE ORDER STATUS REPORT Job No. J-34.1, P2-35.5 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED ITEM DATE COST TO DATE INCREASE TIME TIME TO DATE (DAYS) (DAYS) CONTRACT 119/97 $ 7,122,693.00 $ 7,122,693.00 0.00% 730 730 CO NO. 1 6125/97 $ (4,170.00) $ 7,118,523.00 -0.06% 0 730 CO NO.2 8/27/97 $ 50,415.00 $ 7,168,938.00 0.65% 0 730 CO NO. 3 10/21/97 $ 24,570.00 $ 7,193,508.00 0.99% 0 730 CO NO.4 11/5/97 $ 20,168.00 $ 7,213,676.00 1.28% 0 730 CO NO. 5 12/17/97 $ 71,557.00 $ 7,285,233.00 2.28% 0 730 CO NO.6 5119198 $ 44.674.00 $ 7,329,907.00 2.91% 0 730 CO NO.7 Proposed $ 299.900.00 $ 7,629,807.00 7.12% 0 730 HNxp.dtabngyobscomrecbU%3 lI C07cbengemd� yPage 1 of 3 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY 10844 ELLIS AVENUE,P.O.BOX 8127 FOUNTAIN VALLEY,CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Advanco Constructors Inc C.O. No. Seven (7) Date: July 29, 1998 Job: Ocean Oudall Reliability Uoarade Job No.J-34-1. Phase If Site and Security Improvements Job No P2-35-5 Conveyor Belt Access.Job No. SP19950003 Amount of this Change Order(Add)(Deduct) $299,900.00 In accordance with contract provisions,the following changes in the contract and/or contract work is hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. Job No. J-34.1 ITEM 1 —STRUCTURAL MODIFICATIONS TO SURGE TOWER NO. 1 During the hydrostatic testing of Surge Tower No. 1 excessive leakage was observed. Structural analysis of Surge Tower performed by Carollo Engineers (Design Engineer) revealed that additional reinforcement and shotcrete is necessary to prevent the leakage. The work includes placing additional reinforcement and shotcrete to the exterior of the surge tower and coating the interior with elastomeric polyurethane. Other items in this additional work include removal and reinstallation of several appurtenances surrounding the Surge Tower that will conflict with the required modifications. This work was negotiated with the contractor pursuant to Section 10-6(B)2(a) of the General Provisions (Reference Plan Change No. 30A). ADDED COST THIS CHANGE ORDER ITEM: $299,900.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 2— REDUCTION IN RETENTION The project is now complete, excluding Item 1 above and all work is expected to be completed by the current contract completion date of January 8, 1999. Work to dale has been completed in accordance with the contract requirements. The Contractor has requested a reduction in retained funds from five percent to set amount of$15,000. The Districts agrees to this reduction of currently retained funds. Retention for the work included in Item 1 above will be withheld in accordance with the contract provisions. ADDED COST THIS CHANGE ORDER ITEM: $0.00 TIME EXTENSION THIS CHANGE ORDER ITEM 0 Calendar Days TOTAL COST THIS CHANGE ORDER: $299,900.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 2 of 3 {( COUNTY SANITATION DISTRICTS OF ORANGE COUNTY 1 108"ELLIS AVENUE,P.O.BOX 8127 FOUNTAIN VALLEY,CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Advanco Constructors,Inc C.O. No. Seven m Date: July 29, 1998 Job: Ocean Outfall Reliability Uporade Job No J-34-1 Phase II Ste and Security Improvements,Job No P2-35-5 Conveyor Bet Access Job No SP19950003 The additional work contained within this Change Order can be performed incidental to the prime work and within the time allotted for the original Contract and any extensions to the Contract time made by this and all previously issued Change Orders. It is therefore mutually agreed that no extension of time is required for this Change Order, and that no direct or indirect, incidental or consequential costs, expenses, lasses or damages have been or will be incurred by Contractor, except as expressly granted and approve by this Change Order. SUMMARY OF CONTRACT TIME Original Contract Date: January 9, 1997 Original Contract Time: 730 Calendar Days Original Completion Date: January 8, 1999 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 0 Calendar Days Revised Contract Time: Not Applicable Revised Final Completion Due Date: Not Applicable Time Subject to Liquidated Damages: Not Applicable Actual Final Completion Date: Not Applicable Original Contract Price $ 7,122,693.00 Prev. Authorized Changes $ 207,214.00 This Change (Add)(Beduef) $ 299,900.00 Amended Contract Price $ 7,629,807.00 Page 3 of 3 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY 108"ELLIS AVENUE,P.O.BOX 8127 FOUNTAIN VALLEY,CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Advanco Constructors, Inc. C.O. No. Seven Date: July ZOL1998 Job: Ocean Outfall Reliability Upgrade Job No J-34-1.Phase II She and Security Imorovements.Job No P2-35-5.Conveyor Bell Access,Job No. SP19950003 Board Authorization Date: July 2:4, 1998 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CALIFORNIA Sub i ed by: 7 =i ' 7—L Corfstruction Man ger Date pro a y: Director of Engineering Date Accepted by: Adv nco Construc OAS Contr t r Date H:a p.dlal ngUOas S OONTRACTSV-341=7.dw PDC COMMITTEE Meeting D&e TO Bft 07/09/98 07/29/98 AGENDA REPORT Item Numtw Item Nypi 3I T Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Jeff Shubik, Project Manager SUBJECT: AWARD PSA FOR ELECTRICAL POWER SYSTEM STUDIES, JOB NO. J-25-4. GENERAL MANAGER'S RECOMMENDATION Award a Professional Services Agreement (PSA) for Electrical Power System Studies, Job No. J-25-4, to Carollo Engineers for a total not to exceed $1,975,951. SUMMARY In September 1997, Staff informed the PDC of the approach to improving the reliability of the plant electrical distribution systems. This approach involved two projects: a) Job No. J-33-1, a project to fast track design solutions to previously identified problems. J-33-1 will begin in October 1998. b) Job No. J-25-4, a project to identify and resolve other potential problems in the systems. Standby Power and Reliability Improvements, Job No. J-33-1, will provide design and construction of projects to eliminate: • Overloading of electrical equipment • Insufficient electrical equipment capacity to withstand stress during system faults Electrical Power System Studies, Job No. J-25-4, will accomplish the following: • Detailed inspection of electrical distribution equipment • Identifying potential problems in the plant electrical systems • Recommending solutions • Developing a strategy for plant electrical power system expansion through the year 2020 Staff has solicited proposals from four firms qualified for the project. Based on the proposal evaluation and interviews, Staff recommends award of a PSA for the Electrical Power System Studies, Job No. J-25-4, to Carollo Engineers. PROJECT COST SUMMARY The total amount of the agreement will not exceed $1,975,951. The funds for this project, $3,171,000, are contained in the FY 1998-99 Capital Improvement Budget. The project budget provides for an extensive effort by Staff in the collection of data. Costs for design and construction of projects that result from recommendations of these studies have not been budgeted because they are unknown at this time. G:NIpbEafJ•eMa D,nll R� -AR-I I.C¢,pp Page 1 BUDGET IMPACT , ® This item has been budgeted. (Line item: 4.a, Inter-Plant and Joint Facilities) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Reference the Budget Information Table attached. This project is necessary to ensure compliance with safety requirements at Plants No. 1 and 2. ADDITIONAL INFORMATION In September 1997, Staff informed the PDC of the existing electrical power system problems at Plants No. 1 and 2. The importance of this issue, their approach to resolving the problems, and the estimated cost involved were discussed. Each plant has a complex electrical distribution system with dozens of transformers and other major electrical equipment. The equipment is aging and reliability of many of the system components has decreased. In addition, demand on the plant electrical distribution system has increased because: • District has converted all the mechanically powered equipment to electrically powered, which provides alternate power sources for the critical equipment. • The plant process systems have outgrown the electrical power systems that support the process. The increased demand on the electrical system has created overloading of major electrical equipment, inadequacies in the automatic system safeguards, and created "bottle-necks" in the electrical systems. As a result, the risk of electrical system failure has increased and the "bottle-necks" significantly limit system expandability to support the Strategic Plan through the year 2020. It is critical that the electrical distribution system be reliable and have redundant components sized appropriately for peak loads. Staff has made a significant effort to review the system and identify problems. As a result, Staff has developed the following approach: Standby Power and Reliability Improvements, Job No. J-33-1 This project provides for fast track final design and construction services to eliminate the identified problems: • Overloading of electrical equipment • Insufficient electrical equipment capacity to withstand stress during system faults The award of a PSA for Job No. J-33-1 is scheduled for the PDC and Board meetings in September 1998. c N&b.Wmdao ft•epomwocuxuu.xJ.eav em.ea Page 2 Electrical Power System Studies, Job No. J-25-4 This project will provide the following for the plant electrical systems: • Identifying further electrical problems • Recommending economical solutions • Developing a strategy for plant electrical power system expansion through the year 2020. (This work is not in the District's Strategic Plan) A follow-up final design and construction project based on the J-25-4 recommendations will eliminate the identified electrical system problems. The cost of the follow-up effort is contingent on the J-254 project recommendations and, therefore, has not been budgeted at this time. Staff solicited consultant qualifications for the Electrical Power System Studies, Job No. J-25-4, from eighteen firms. Eight firms responded. Staff requested proposals from four teams deemed best qualified for the project: • Carollo Engineers • Fluor Daniel • Holmes & Narver • Parsons Engineering-Science Fluor Daniel declined to submit a proposal. Holmes & Narver team's proposal was excluded from further consideration because it was found to be non-responsive. The proposals by Carollo Engineers and Parsons Engineering-Science teams were evaluated and both teams were interviewed. Based on the proposal evaluation and consultant interviews, Staff selected Carollo Engineers team as the top-rated. The team has included two subconsultants to perform a major part of the work. Bums & McDonnell is one of the U.S. top specialists in the electrical power systems. They have local offices in many areas including Southern California and have done a number of projects on the West Coast, including work for the City of Anaheim. Electrotest is a specialist in high voltage equipment testing and measurement. They have an office in Brea, California, with about 40 employees. The most significant technical advantages of their proposal included: • Best demonstrated understanding and approach to the Scope of Work • Greater familiarity with District's facilities Carollo Engineers team submitted the lowest proposal fee for the requested scope of work. Staff has negotiated a PSA with Carollo Engineers to clarify the scope and add several tasks that were found necessary to complete the work to the District's requirements and expectations. C:lYpbpaNymb pall NeWrISWCN35NE- .M.11 trcMl Page 3 The negotiated agreement cost has accommodated the complex system conditions and includes: 1) Adjusted Base for $1,465,738. V This provides for all currently known project tasks necessary to achieve the project goal with the exception of items 2, 3, and 4 below. The base tasks will determine: • Minimum electrical equipment capacity needed to support the connected pumping loads • Minimum electrical equipment capacity needed to withstand stress during system faults • Correct type and tune-up of automatic relays and circuit breakers protecting electrical equipment • Measures to eliminate problems known as "harmonics" - routinely caused by high power electronics • Measures to eliminate sudden voltage dips and lighting flicker during a large motor start • Effectiveness of the grounding that protects personnel safety • Measures to eliminate "bottle-necks" in the existing electrical power systems • Strategy for plant electrical power system expansion through the year 2020 based on the District's Strategic Plan 2) _Proposed Contingency Tasks for$250,270. The contingency tasks that have been identified may become necessary, should the detailed findings require a scope adjustment due to unforeseen system conditions. For example, lack of special connectors in a piece of electrical equipment will require temporary installation of the connectors necessary to perform current measurements. This condition will be determined for each piece of electrical equipment individually. The agreement states the cost for each unit task. The total price paid to consultant will be based on the actual quantity of completed unit tasks. These tasks are included as part of the agreement, but will be used only if determined necessary by Staff during the project. 3) Enhancement of the Proposed Reliability Study Team for $126,223. The proposed approach focused on electrical solutions to improve plant reliability. The team will now include an experienced wastewater process engineer to add non- electrical solutions to the list of alternatives. The list will be the basis for selecting the most economical improvements. The need for the additional team member became apparent while evaluating the received proposals. 4) Development of Updating Procedures for the Electronic Database and the Respective District Team Training for $133,720. The database is intended for use in all future design and construction projects. It is critical to ensure that the database update procedures accommodate the complex multi-project, multi-user environment at the District. This electronic database task was not initially included in the request for consultants' proposals. At that time, its scope was being affected by on-going computer technology-related projects. Therefore, the task could be defined only at a later date. The earliest opportunity to define and add this task was during the negotiation with the top rated consultant. a Mtg,2,Agm O WWfd`POPI3 WU -ARA I..,ft Page 4 The cost comparison of the evaluated proposals is attached herein. V Staff recommends that a PSA for Electrical Power System Studies, Job No. J-25-4, be awarded to Carollo Engineers for a total not to exceed $1,975,951, ALTERNATIVES No cost-effective alternatives to the comprehensive studies are available. Delays in the award of the PSA will postpone necessary safety-related improvements. CEQA FINDINGS Not applicable. ATTACHMENTS 1. Budget Information Table 2. Professional Services Agreement Status Report 3. Staff Evaluation of Proposals to Provide Engineering Services 4. Cost Comparison of the Evaluated Proposals JS:js G N1pbLaNgeMa Pall fleputWLU1i4LLSd-M.11 hcM Page 5 BUDGET INFORMATION TABLE ELECTRICAL POWER SYSTEM STUDIES JOB NO. J-25-4 THIS REQUEST ORIGINAL CURRENT PROPOSED PROPOSED FUNDS PROPOSED ESTIMATED ESTIMATED PROJECT/TASK AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED BUDGET TOTAL EXPENDITURE COMPLETE BUDGET BUDGET INCREASE BUDGET TO DATE INCREASE AUTHORIZATION AUTHORIZATION TO DATE TO DATE(%) COneUlUnt $ 1,500,000 E 1,975951 $ - $ 1,975.951 S - $ - $ 1,975,951 $ 1.975951 E 0% staff $ 760,000 $ 538.049 $ - 5 536.049 S 536.049 $ - E - s 536.049 E 275.000 51% Consn ency $ - E 659000 E - E 659.000 $ 659,000 $ - It - $ 659,000 E 0% TOTAL E 2.260,000 E 3,171,000 E - $ 3,171.000 $ 1,195,049 $ - $ 1,975,951 E 3,171,0D0 1 6 275,000 9% NOTES: 1. The Staff expenditures reflect the revised overhead allocation method, project management, and an extensive effort by Staff to collect electrical equipment data at Plants 1 and 2 prior to and during the project period. 2. The original budget was a portion of Job No. J-25-2 in the FY 1997-98 CORF budget. In the FY 1998-99 CORF budget, Job No. J-25.4 became a separate project and the budget was increased to accommodate the revised overhead allocation method and standard 20 percent contingency. ,1-25-4-ARdudgel1W41 E Professional Services Agreement Status Report Job No. J-25-4 Electrical System Power Studies Total Project Budget: $3,171.000 Consultant: Carollo Engineers Start Date of Project: August 1, 1998 Date Addendum Description Cost Accumulated Costs Proposed 1 Ori final PSA Electrical System Power Studies, Job No. J-25-4 $1 975 951 $0 GNdgbbaMWda DMR Repuds%PDCV-25-4V-254-AR-PSA Slahm ReW-11 ADC 0626/98 y STAFF EVALUATION OF PROPOSALS TO PROVIDE ENGINEERING SERVICES ELECTRICAL POWER SYSTEM STUDIES JOB NO. J-25-4 The following interested consulting fines received Requests for Proposals: • Carollo Engineers • Fluor Daniel • Holmes & Narver • Parsons Engineering-Science Flour Daniel declined to submit a proposal. Holmes & Narver team's proposal was excluded from further consideration because it was found to be non-responsive. The proposals by Carollo Engineers and Parsons Engineering Science were evaluated and both proposed consultant teams were interviewed by an in-house review panel on March 16, 1998. The interview panel consisted of six members and focused on the four categories described below: 1. Prolect Approach and Understanding of Scope. The firm's demonstrated understanding of the Scope of Work and their approach to the work, methodology, task breakdown, and the exceptions taken to the requested scope. 2. Applicable Prolect Experience. The firm s experience as it relates directly to electrical power system analyses for wastewater facilities. 1 Applicable Team Qualifications. The project team's qualifications and experience as they relate to electrical power system analyses for wastewater facilities. 4. Team Organization and Use of Subconsultants. The use of in-house resources versus the utilization of subconsultants for quality control and other specific tasks. Based on the proposal evaluation and consultant interviews, the in-house review panel ranked Carollo Engineers team proposal as the top. The most significant technical advantages of their proposal included: • Best demonstrated understanding and approach to the Scope of Work • Greater familiarity with District's facilities G.bpbWubmJ ill Mep rbWCGlLYvdU]Sd.M 9a11 walumnll Sc Rw J: 1 i . V After ranking the technical proposals, the review panel opened the sealed fee proposals submitted by the two evaluated candidates. The following summarizes the comparison: Rank Proposed Fee Carollo Engineers team 1 $1,507,990 Parsons Engineering-Science team 2 $2,013,910 Based on the above, Staff negotiated with Carollo Engineers a Professional Services Agreement (PSA) including the requirements described in the"Additional Information" section of this Agenda Report. The "Cost Comparison of the Evaluated Proposals" attached herein shows the total fee that was increased, based on the negotiation. Staff recommends that a PSA for the Electrical Power System Studies be awarded to Carollo Engineers for a total not to exceed $1,975,951. JS:js cam�ew u.e Reeeawocuxseua�.e,x snnewiwmm+�me R.Od4899 2 COST COMPARISON OF THE EVALUATED PROPOSALS ELECTRICAL POWER SYSTEM STUDIES JOB NO. J-25-4 Price Components Carollo Engineers Team Parsons Engineering — Science Team 1. Adjusted Base Price $1,465,7381ai $1,966,67711j 2. Proposed Contingency Tasks $ 250,270 $170,630— 264,630 proposed amount per proposed data, I2) specifics contingent on clarification 3. Reliability Study Team $ 126,223 $0-130,000 Enhancement negotiated amount specifics contingent on negotiation 4. Development of Electronic Database Updating Procedures $ 133,720 $60,000-135,000 and Training (additional task) negotiated amount specifics contingent on negotiation Total, not to exceed $1,975,951 $2,197,307 -$2,496,307 negotiated amount estimated conservatively Notes: 1. Revised to allow"Other Direct Costs" on an cost" basis only. 2. Includes the same task quantities and comparable installation of measurement transformers. Includes also a)a conservative estimate of $30,000- $106,000 for motor dynamic analysis as a contingency task, and b) an estimated $18.000 for electronic format conversion from DOS due to delayed release of Windows-based harmonic analysis software. 3. Revised to include the cost of the metering conversion software omitted in the base price. Revised also to correct"Other Direct Costs" errors and to allow the "Other Direct Costs"on an cost" basis only. G9ntglobapAgenda Draft ReportsWDCU-25-4U-25-4-AR-Prop Comparison-11.dm PDC COMMITTEE Me-t-ND307109Mt. T- rd AGENDA REPORT ten numiw t Honda Orange County Sanitation Distri Ca is FROM: David A. Lu lwin, erector of Engineering Originator. Andrei loan, Engineer SUBJECT: REPLACEMENT OF SANTA ANA RIVER INTERCEPTOR CONTROL GATE, CONTRACT NO. 2-40 GENERAL MANAGER'S RECOMMENDATION 1)Approve plans and specifications for Replacement of Santa Ana River Interceptor Control Gate, Contract No. 2-40; 2) Receive and file bid tabulation and recommendation; and 3)Award a contract to NCCI Enterprises, Inc. for Replacement of Santa Ana River Interceptor Control Gate, Contract No. 2-40, for $430,470. SUMMARY The Santa Ana River Interceptor (SARI) line is, in part, located in the Santa Ana riverbed. Staff has determined that the pipeline and manholes in the river section could fail in an extraordinary flood event. Such failure would allow silt and debris into the pipe and eventually into the Headworks at Plants No. 1 or 2. The replacement of the control gate in the SARI line will protect Plants No. 1 and 2 from becoming inoperable in the event of a failure due to flooding conditions. A design for the gate structure and gate has been completed and advertised for bids. On July 9, 1998, four bids were received ranging from a high bid of$604,218 to a low bid of$430,470. NCCI Enterprises, Inc. submitted the low bid. The Director of Engineering recommends award of the contract to NCCI Enterprises, Inc. The engineer's estimate did not reflect entirely the cost to pump the groundwater out of the excavation. The construction schedule for the SARI Control Gate is extremely limited due to permitting and environmental constraints. Unless OCSD awards the construction contract at the July 29, 1998 Board of Directors meeting, the entire project has to be postponed until 1999. c aiaimnraya,m o.mi a.�uuam m.mvm.r nam.az ve.. 07m Page 1 PROJECT COST SUMMARY The new control gate will protect Plants No. 1 and 2, exclusively. Therefore, the entire cost of designing and constructing the project will be paid for by the Orange County Sanitation District (OCSD). The low bid of$430,470 exceeded the Engineer's estimate of$374,048 by $56,422. The FY 1998-99 project budget for the construction contract is $375,000. An additional amount of$109,000 was budgeted for contingencies. This allows an adjustment of the construction contract budget by $55,470, for a new total amount of$430,470. Additional funds in excess of the budgeted amount are not required. BUDGETIMPACT ® This item has been budgeted. (Line item: zone 2, line g of the 1998-99 budget) ❑ This item has been budgeted, but there are insufficient funds ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION History The Board of Directors awarded the Professional Services Agreement (PSA) for the project design to Holmes & Narver on December 17, 1997. At the same meeting, the Board also approved funds to provide for the design and in-house staff costs. The Board of Directors adopted Resolution 90-19-2 approving the Negative Declaration for the Replacement of Santa Ana River Interceptor(SARI) Control Gate, Contract No. 2-40, on June 24, 1998. No cost was associated with the approval of the Negative Declaration. Background The SARI line generally parallels the Santa Ana River from the Orange/San Bernardino County line to Plant No. 1. The SARI line runs mostly within the Santa Ana River floodplain and crosses the river bottom at several locations. This line also serves Riverside and San Bernardino Counties under the administration of the Santa Ana Watershed Project Authority (SAWPA). SAWPA owns a peak capacity right of 30 mgd in the SARI line downstream, of the San Bernardino/Orange County line. G:NiaiooeMpeme o,N,aeponeuoim BoareP]Mev 7NW aer,,.e 07m Page 2 When the SARI line was constructed in 1975, it was buried 15 to 20 feet below the existing riverbed elevation. At that time, the design team assumed that the depth would be adequate to avoid any damage to the pipeline. Over a period of 20 years, the streambed has eroded and is now posing a threat of structural damage to the pipeline. Access to the manholes has also become difficult due to heavy growth of river vegetation. Extensive analysis was performed in 1996 to determine the damage potential to the SARI line under a major flood event. Holmes & Narver prepared the report under Contract No. 2-14-5R2. The report indicates that the Santa Ana riverbed has eroded six to eight feet due to flooding and entrapment of sediment in the Prado Dam Reservoir, located northeast of the OC/SBD county line. As a result, the following problems have arisen: 1. Significant erosion has been detected near the manholes. 2. The depth of cover over the pipeline has been reduced to five or six feet at several locations. 3. Erosion is expected to increase when flows up to 30,000 cubic feet are released from Prado Dam after the Corps of Engineers raises it 30 feet. The report states the SARI line will be washed out at several locations and some manholes will be completely exposed and very likely destroyed in a high flow condition. The control gate will allow OCSD Staff to protect Plants No. 1 and 2 in the event of a line break. Holmes & Narver has prepared the construction documents and assisted the District in the process of obtaining the necessary permits: • U.S. Army Corps of Engineers (Permit 404) • California Fish and Game (Section 1601 Agreement) • California Regional Water Quality Board (Permit 401) • Orange County Flood Control District. According to the conditions associated with the necessary environmental permits, the allowable construction period is between August 15, 1998 to November 30, 1998. In addition, the underground concrete structure needs to be finished backfilled and protected by October 15, 1998. Installation of electrical and mechanical equipment may be performed between October 15 and November 30, 1998. OCSD staff advertised for construction bids on June 18, 1998 and opened the bids on July 9, 1998. Four bids were received from firms listed in the attached bid tabulation. Ga bWmbomo wen Re Won eoo sV�a,024ee.uec Remea: mm•e Page 3 CONCLUSIONS Staff recommends that a Construction Agreement be awarded to the lowest bidder, NCCI Enterprises, Inc., for the Replacement of the SARI Control Gate, Control No. 2-40, for $430,470. ALTERNATIVES None. CEO,A FINDINGS The Board of Directors adopted Resolution 90-19-2 and approved the Mitigated Negative Declaration on June 24, 1998. ATTACHMENTS Budget Information Table Bid Tabulation Al:jam Weadbata I W91obaMgenda Draft ReponsVoint B0a1 s9 40.a1r72498.dcc G YnOLdeM9m]a D.LI ReW o&eaa6fQ] a 7N%Ox R..eaa 01� Page 4 BUDGET INFORMATION TABLE Replacement of Santa Ana River Interceptor Control Gate Contract No. 2-40 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTITASK AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED AUTHORIZATION TOTAL EXPENDITURE COMPLETE BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE TO DATE(%) Design Consultant (PSA) $ 55,000 $ 55.000 $ - $ 55,000 $ 54,981 $ - $ 54.981 $ 46,854 85% CSDOC Staff,Design $ 2Q000 $ 20.000 $ 1,377 $ 21,377 $ 20,019 $ 20,019 $ 21,396 107% Construction Contract $ 375,000 $ 375,000 $ 55,470 $ 430,470 $ - $ 430,470 $ 430,470 $ 0% CSDOC Staff, Inspection and Construction M mt. $ 181,000 $ 181,000 1 $ - $ 181,000 $ - $ 181,000 $ 181,D00 $ 2,216 1% Programming, Training. $ 17,000 $ 17,DD0 $ - $ 17,000 $ - $ 17.000 $ 17,000 $ 472 3% Contingency $ 109.000 $ 109,000 $ (56,84 $ 52,153 $ - $ 53,530 $ 53,530 $ 0% TOTAL $ 757,000 $ 757,D00 $ - $ 757.000 $ 75, 000 $ 682,000 $ 757,000 $ 70,938 9% H:%wohi%eng%-,@ g 14RRbudgel table 072998 Rw.w 7098 July 9, 1998 11:00 a.m. ADDENDA: BID TABULATION REPLACEMENT OF SANTA ANA RIVER INTERCEPTOR CONTROL GATE STRUCTURE CONTRACT NO. 240 ENGINEER'S ESTIMATE: $374,048 Budget Amount: $375,000 CONTRACTOR TOTAL BID 1. NCCI ENTERPRISES, INC. $ 430,470' 2. MD CONSTRUCTION GROUP $ 443,299 3. 4-CON ENGINEERING, INC. $ 485,470 4. SCHULER ENGINEERING, CORP. $ 604,218 5. $ 6. $ 7. $ 8. $ 9. $ 10. $ 1 have reviewed the proposals submitted for the above project and find that the low bid is a responsible bid. I, therefore, recommend award to NCCI ENTERPRISES, INC. in the bid amount of$430,470'as the lowest best bid. i ' Corrected Total David A. Ludwin, P.E. Director of Engineering HAwp.dtalengUOBS&CONTRACTSQ-40 SARI12-40 Bid Tab.doo Revised 05/19/98 OCSD • P.O. Box 8127 • Fountain Vallev.CA 92728-8127 . (714) 962-2411 e 9 Oo b MINUTES OF FINANCE. ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Wednesday, July 15, 1998, 5:30 P.M. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on Wednesday, July 15, 1998, at 5:30 p.m., at the District's Administrative Offices. ROLL CALL The roll was called and a quorum declared present, as follows: Committee Directors Present: Staff Present: George Brown, Chair Don McIntyre, General Manager John J. Collins, Past Board Chair Mike Petennan, Director of Human Resources Barry Denes Gary Streed, Director of Finance Burnie Dunlap, Board Chair Michelle Tuchman, Director of Communications Norman Z. Eckenrode Doug Cook, Chief Operator John M. Gullixson Mark Esquer, Engineering Supervisor Mark Leyes Tom Flanagan, Training Supervisor Mark A. Murphy Terri Josway, Safety& Emergency Response Manager William G. Steiner Jerry Jones, O&M Maintenance Manager Steve Kozak, Financial Manager Committee Directors Absent: Greg Mathews, Principal Administrative Analyst Rich Spencer, Human Resources Training Assistant Thomas R. Saltarelli Lisa Tomko, Human Resources Manager Peer Swan, Board Vice Chair Simon Watson, Maintenance Supervisor Ryal Wheeler, Foreman Other Directors Present: Mike White, Controller Lenora Crane, Committee Secretary None Others Present: Tom Woodruff, General Counsel Craig Hoshijima, Public Financial Management, Inc. Enrique Melcer, Public Financial Management, Inc. Mark Conway, FHI Insurance APPOINTMENT OF A CHAIR PRO TEM No appointment was necessary. Minutes of Finance, Admin. and Human Resources Committee Page 2 e July 15, 1998 PUBLIC COMMENTS No comments were made. APPROVAL OF MINUTES The minutes of the June 10, 1998, meeting of the Finance, Administration and Human Resources Committee were approved as drafted. REPORT OF THE COMMITTEE CHAIR • Committee Chair George Brown announced that Director Jan Debay has left the FAHR Committee and will be the new Chair of the Planning, Design and Construction Committee (POC). • There will be a Planning Advisory Committee meeting (PAC)tomorrow morning from 9:00 a.m. to 12:30 p.m., with lunch. • The regularly scheduled PDC Committee meeting for August has been cancelled. REPORT OF THE GENERAL MANAGER • General Manager Don McIntyre updated the Committee on the situation in Kenn County regarding biosolids. Their Board of Supervisors are expected to pass an Ordinance restricting application of biosolids to Class A only, which we do not provide. Processing of biosolids from Class B to Class A will require additional treatment. This will necessitate a change of equipment or perhaps stockpiling biosolids so they organically heat themselves. Blake Anderson has met with Judy Wilson of the City of Los Angeles and Jim Stahl of the Los Angeles County Sanitation District. All three agencies are committed to applying biosolids in Kem County. Blake and Jim Stahl are going to Bakersfield tomorrow to talk to their Board of Supervisors about this issue. The District may have to make small economic concessions to them, or we may end up spending a lot more money to haul biosolids. A full report will be made to the Board on July 29th. REPORT OF THE ASSISTANT GENERAL MANAGER The Assistant General Manager had no report. REPORT OF THE DIRECTOR OF FINANCE • Director of Finance Gary Streed reminded the Committee that two weeks from tonight is the Board meeting and the public hearing on the proposed rate structure. • New phone calls and correspondence regarding the rate changes have decreased significantly. We are having continued dialogue with some property owners who have more involved questions, however, most people are satisfied and understand the reasons for the increases and are mostly concerned about the amount of the changes. Staff is reviewing the user fee data and will be proposing a few decreases in a couple of the rates. No increases are proposed. Minutes of Finance, Admin. and Human Resources Committee Page 3 July 15, 1998 REPORT OF THE DIRECTOR OF HUMAN RESOURCES The Director of Human Resources Mike Peterman introduced Mark Conway, our benefits broker. REPORT OF THE DIRECTOR OF COMMUNICATIONS Michelle Tuchman updated the Committee on the Toilet Exchange Program to be held on August 1 and 2 in the District's parking lot. We are working with the Metropolitan Water District and CTSI, the unit manufacturers. CTSI will provide the product and the staff for the exchange program, and the District and MWD will be underwriting the cost of the low-flush units. Each of the products will be for sale for$20, with an additional $15 refundable deposit when they bring back their old product. The Unit exchange will take place on August 15 and 16. Ms. Tuchman updated the Committee regarding the District's exhibit at the Orange County Fair. She reviewed some of the questions people who have stopped by the District's booth have asked. Posters with pictures of the District's display and mascot, "Clean Water Willie,"were circulated to the Directors. Ms. Tuchman invited those Directors interested in attending the Fair to pick up free passes in her office. REPORT OF GENERAL COUNSEL Tom Woodruff reported on a situation that is turning into a fairly significant dispute concerning connection fees. The attorneys for Trammell-Crow, owners of the commercial property known as Park Place One which is adjacent to the 405 Freeway at Jamboree and Michelson Street , are requesting a refund of approximately$600,000-$800,000 in connection fees they paid in 1990 for connection to the District's Michelson Street Pump Station. The Pump Station, which was almost at maximum capacity in 1990, was redesigned and moved to an underground parcel of land deeded to the District through agreements with Trammell-Crow to accommodate the expected increased flow from their proposed new development. The District paid the $1.5+ million reengineering costs for the pump station, and Trammell-Crow deeded the land the pump station was built on to the District and paid for the landscaping. Though the agreements signed by Trammell-Crow in 1990 indicated that they were required to pay connection fees, they are now disputing the fact and threaten to attend the user fee hearing on July 29th and call into question the conduct of the District. CONSENT CALENDAR ITEMS 1. FAHR98-52: RECEIVE AND FILE TREASURER'S REPORT FOR THE MONTH OF JUNE 1998, AND FORWARD TO THE JOINT BOARDS: The Treasurer's Report was handed out at the FAHR Committee meeting in accordance with the Board-approved Investment Policy, and in conformance to the Government Code requirement to have monthly reports reviewed within 30 days of month end. 2. FAHR98-53: Receive and file Certificates Of Participation (COP) Report. 3. FAHR98-54: Receive and file Employment Status Report Minutes of Finance, Admin. and Human Resources Committee Page 4 July 15, 1998 END OF CONSENT CALENDAR MOTION: Moved, seconded and duly carried to approve the recommended actions for items specified as 1 through 3 under Consent Calendar. ACTION ITEMS 4. FAHR98-55: Series "C" Certificates of Participation: A. Authorize staff to proceed with competitively bidding, selection, and execution of a debt service reserve fund Investment Agreement for the Series "C" COP. B. Authorize staff to execute agreements with Public Financial Management, investment advisor, in an amount not to exceed $25,000, and Orrick, Herrington & Sutcliffe, bond counsel, in an amount not to exceed $7,500, for professional services in connection with a debt service reserve fund Investment Agreement for the Series"C" COP. Motion: It was moved, seconded and duly carded to approve staffs recommendation to proceed with competitively bidding, selection and execution of a debt service reserve fund Investment Agreement for the Series "C" COP. It was moved seconded and duly carded, with Director Gullixson abstaining, to authorize staff to execute agreements with Public Financial Management, investment advisor, in an amount not to exceed $25,000, and Orrick, Herrington & Sutcliffe, bond counsel, in an amount not to exceed $7,500, for professional services in connection with a debt service reserve fund Investment Agreement for the Series "C" COP. S. FAHR98-56: Annual Renewal of Investment Policy: A. Review and approve the District's Investment Policy Statement for 1998-99. B. Renew the delegation of investment authority to the District's Director of Financerrreasurer for 1998-99; and C. Recommend that the Board of Directors adopt Resolution No. OCSD- 98-XX for adoption of the District's Investment Policy Statement, and renewal of investment authority for 1998-99. The Committee determined from Mr. Kozak that no changes have been made to the Policy since their review of the Policy in September 1997. The changes requested by the Committee at that time have been incorporated into the Policy. Director Leyes expressed his opposition to including Section 8.13 regarding reverse repurchase agreements in the Policy. Minutes of Finance, Admin. and Human Resources Committee Page 5 July 15, 1998 Motion: It was moved, seconded and duly carried, with one no vote, to approve staffs recommendation. 6. FAHR98-57: Receive and file this information-only report re Retiree Health Insurance. During discussion on this item, Director Gullixson requested staff to investigate the possibility of Board Members paying into and joining the insurance plan. Motion: It was moved, seconded and duty carried to receive and file this information-only report. 7. FAHR98-58: Recommend approval to Broadband Executive Management and Division Manager classifications and pay ranges, and Bat rate Assistant General Manager's Salary. Action: The Directors expressed their opinions about the proposed salary ranges for Executive Management and Managers, and requested that this item be sent back to staff and the Consultant, Barry Newton, for rework and brought back to the Committee at a future meeting. A few of the Directors advised they have never reviewed Mr. Newton's original study on broad banding and would like to be able to do so prior to making a decision. 8. FAHR98-59: Recommend approval of Resolution No. OCSo-98-XX, authorizing the General Manager to enter into separation agreements with District employees in specified circumstances. Motion: It was moved, seconded and duly carried to approve staffs recommendation. 9. FAHR98-60: Recommend approval to establish a Defined Contribution (401 a) Pension Plan for the General Manager only, and direct the General Counsel to prepare such a plan and an amendment to his contract of employment with the General Manager. During discussion, Mr. McIntyre advised the Committee that payments to the Pension Plan, if he decides to use it,would come out of his salary with no additional cost to the District. Mr. Woodruff clarified that the Defined Pension Plan would not be an additional benefit, but an amendment to Mr. MclntyWs employment contract. Mr. McIntyre and the other department heads who have signed "at will" contracts are considered regular, full-time employees. Minutes of Finance, Admin. and Human Resources Committee ' Page 6 July 15, 1998 Their contracts serve as their MOUs to determine what their benefits are and to give them some latitude to change their compensation, but do not make them "contract employees." Motion: It was moved, seconded and duly carried to approve staffs recommendation. INFORMATIONAL PRESENTATIONS 10. FAHR98-61: DART Reinvention Report and Implementation Plan Mark Esquer, Engineering Supervisor, sitting in for O&M Director Bob Cotten, introduced the DART team members who were in attendance to give verbal reports and a slide presentation on the results of Phase III of the District's reinvention process. The DART report has focused on the maintenance management and adaptive work force elements of the Operations and Maintenance reinvention. Simon Watson, Maintenance Supervisor, reviewed the Reinvention and Implementation Plan and Work and Business Practices; Rich Spencer, H. R. Training Assistant and Adaptive Work Force Leader, reviewed Reinvention Tools; and Jerry Jones, O&M Maintenance Manager, reviewed the Cost Benefit Analysis. The total cost of implementation of the DART recommendations are estimated to be $3,219,400. The reinvention c0st1benefit payback shows that reinvention cost will be offset by reinvention savings early in the fourth year of the five-year reinvention implementation plan. The total savings during the five-year implementation period will be $3,290,600. The savings generated during the implementation period will offset the DART to-date reinvention development cost of$550,000 which consisted of labor, overhead and consultant services. 11. CLOSED SESSION The Chair reported to the Committee the need for a Closed Session, as authorized by Government Code Sections 54957.6, to discuss and consider the item that is specified as Item 11(a) on the published Agenda. The Committee convened in closed session at 7:45 p.m. Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Board Secretary in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. No action was taken re Agenda Item 11(a). At 8:00 p.m., the Committee reconvened in regular session. MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING None. Minutes of Finance, Admin. and Human Resources Committee Page 7 July 15, 1998 MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT None. FUTURE MEETING DATES The next Finance, Administration and Human Resources Committee Meeting is scheduled for Wednesday, September 9, 1998, at 5:30 p.m. ADJOURNMENT The meeting was adjourned at 8:01 p.m. Submitted t by: J Ct� Le 910ra Crane Finance, Administration and Human Resources Committee Secretary H:IWP.DTAIFINI21etCRANEtFAHRTAHR98UULYVB N.DOG FAHR COMMITTEE 071*15198 To m�isrse mrzB�Be AGENDA REPORT Item Number Rem Number 1 C. Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Steve Kozak, Financial Manager SUBJECT: TREASURER'S REPORT FOR THE MONTH OF JUNE 1998 (FAHR98-52) GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of June 1998. SUMMARY Pacific Investment Management Co. (PIMCO), serves as the District's professional external money manager, and Mellon Trust serves as the District's third-party custodian bank for the investment program. The District's Investment Policy, adopted by the Board, includes reporting requirements as listed down the left most column of the attached PIMCO Monthly Report for the "Liquid Operating Monies" and for the "Long-Term Operating Monies." The District's external money manager is operating in compliance with the requirements of the District's Investment Policy. The District's portfolio contains no reverse repurchase agreements. Historical cost and the current market ("mark-to-market") values are shown as estimated by both PIMCO and Mellon Trust. The slight differences are caused by differing assumptions regarding marketability at the estimate date. PROJECT/CONTRACT COST SUMMARY None. BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) N"dWWAW1My.ddMdVIWnMW�AHR WIffMRBb] H-. IMM7 Page 1 I ADDITIONAL INFORMATION ~ Schedules are attached summarizing the detail for both the short-term and long- term investment portfolios. In addition, a consolidated report of posted investment portfolio transactions for the month of June 1998 is attached. The attached yield analysis report is presented as a monitoring and reporting enhancement. In this report, yield calculations based on book values and market values are shown for individual holdings, as well as for each portfolio. Mellon Trust, the District's custodian bank, is the source for these reports. Transactions that were pending settlement at month end may not be reflected. The District's investments are in compliance with the District's adopted Investment Policy, and the California Government Code. In addition, sufficient funds are available for the District to meet its operating expenditure requirements for the next six months. A graphical representation of month-end balances is shown by the attached bar chart. Book Balances Estimated Funds/Accounts June 30, 1998 Yield(%) State of Calif.LAIF $ 14,630,132 5.7 Union Bank Checking Amount 499,189 4.9 Union Bank Overnight Repurchase Agreement 3,158,000 5.1 PIMCO-Short-term Portfolio 17,971.823 5.4 PIMCO-Long-tern Portfolio 305,845.231 5.0 District 11 GO Bond Fund 921 6.241 5.5 Debt Service Reserves Q Trustees 32,676,098 6.2 Petty Cash 4.400 - Deferred Compensation 13.836,220 1.0-35.9 TOTAL $388,62e,334 ALTERNATIVES None. CECA FINDINGS None. ATTACHMENTS 1. Monthly Investment Reports 2. Monthly Transaction Reports GGS:SK:Ic NatlOn1EW1MpftMnonacmW MWAHeOTM/-F/J1eB95 �. 1017W Page 2 MonthlyPrepared by Finance, 7/9/98, 3:04 PM • • 1 • Balances 11 111 111 ..... ..... ..... ..... ,.... ,.... 11 111 111 :.... ..... ..... :.... ..... ..... Jan, 98 Feb, 98 98 , . - . ., LAW IS Warned Compensation EI Bank Accls; 0 Petty Cash M Dist 11 GO Bond Fund MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 30 June 1998) Liquid Operating Monies 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: p�M $17,971,319 Mello $17,971,823 Historical Cost: PIMCO $17,973,881 Mellon $17,973,361 15.1.2 MODIFIED DURATION Of Portfolio: 0.23 Of Index: 0.20 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of 1%Change: $41,613 (0.239/6) 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: (see attached schedule) 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 82% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: "AAA" 15.1.7 SECURITIES BELOW "A" RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" Yes 15.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return(%): 1 Month: 0.46 3 Months: 1.40 12 Months: 5.63 Year-to-Date: 2.74 Index Total Rate of Return(%): 1 Month: 0.41 MONTHLY REPORT COUNTY SANITATION DISTRICTS OF ORANGE COUNTY INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ending 30 June 1998) Long Term Operating Monies 15.1.1 PORTFOLIO COST AND MARKET VALUE Current MarketValue Estimate: gg gg22 ll99pp ° Me11on0 $305,845,231 Historical Cost: PIMCO $305,474,850 Mellon $305,795,190 15.1.2 MODIFIED DURATION Of Portfolio: 2.54 Of Index: 2.30 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss) of I%Change: $7,912,966 15.1.4 REVERSE REPOS %of Portfolio in Reverse Repos: (see attached schedule) 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: NA 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: "AAA" 15.1.7 SECURITIES BELOW "A" RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" Yes 15.1.9 PORTFOLIO PERFORMANCE Portfolio Total Rate of Return: (%) 1 Month: 0.61 3 Months: 1.81 12 Months: 8.18 Year-to-Date: 3.45 Index Total Rate of Return: (%) 1 Month: 0.58 OCSF075111 MELLON TRUST LIQUID OPER-PIMCO PORTFOLIO SUMMARY BY SECTOR BASE: USD ' 30-JUN-1998 HB1100 4 OF UNREALIZED ESTIMATED CURB PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS ANNUAL INCOME YIELD __________________ __________________ ________ _________________ ________________ ------- CASH 6 CASH EQUIVALENTS COMMERCIAL PAPER - DISCOUNT 2,367,895.33 2,367,895.33 13.09% 0.00 0.00 0.00 FEDERAL HOME LOAN MORTGAGE -LE 3,308,627.59 3,308,627.59 18.29% 0.00 0.00 0.00 FNMA ISSUES - LESS TEN 1YR 3,155,360.00 3,155,360.00 17.44% 0.00 0.00 0.00 FED HM LOAN BNK - LESS INN IYR 2,680,106.24 2,680,106.24 14.81% 0.00 0.00 0.00 FEDERAL FARM CREDIT BANK - LES 2,959,500.00 2,959,500.00 16.36% 0.00 0.00 0.00 MUTUAL FUNDS 176,606.58 176,606.58 0.98% 0.00 9,340.20 5.29 __________________ __________________ ________ _________________ ________________ _______ TOTAL CASH a CASH EQUIVALENTS 14,648,095.74 14,648,095.74 80.96% 0.00 9,340.20 0.06 FIXED INCOME SECURITIES U.S. GOVERNMENTS 3,325,265.63 3,323,727.00 18.37% -1,538.63 210,375.00 6.33 __________________ __________________ ________ _________________ ________________ _______ TOTAL FIXED INCOME SECURITIES 3,325,265.63 3,323,727.00 18.37% -1,530.63 210,375.00 6.33 OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES 120,187.45 120,187.45 0.66% 0.00 0.00 0.00 __________________ __________________ ________ _________________ ________________ _______ TOTAL OTHER PORTFOLIO ASSETS 120,187.45 120,187.45 0.66% 0.00 0.00 0.00 NET PORTFOLIO ASSETS 18,093,548.82 187 092,010.19 100.001 -1,538.63 219,715.20 1.21 Page 1 OCSF075222 MELLON TRUST LONG TERM OPER-PIMCO PORTFOLIO SUMMARY BY SECTOR BASE: USD 30-JUN-1998 HB1100 4 OF UNREALIZED ESTIMATED CURB PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS ANNUAL INCOME YIELD ------------------------------ ------------------ ------------------ -------- ----------------- ---------------- ------- CASH 6 CASH EQUIVALENTS RECEIVABLES 82,972.50 82,972.50 0.03% 0.00 0.00 0.00 PAYABLES -67,325,924.49 -67,325,924.48 -21.64% 0.00 0.00 0.00 COMMERCIAL PAPER - DISCOUNT 1,690,350.58 1,690,350.58 0.541 0.00 0.00 0.00 MUTUAL FUNDS 231,148.49 231,148.49 0.071 0.00 12,224.76 5.29 ------------------ ------------------ -------- ----------------- ---------------- ------- TOTAL CASH 6 CASH EQUIVALENTS -65,321,452.91 -65,321,452.91 -21.008 0.00 12,224.76 -0.02 FIXED INCOME SECURITIES U.S. GOVERNMENTS 212,720,526.40 212,562,675.26 68.34% -157,851.14 13,804,836.31 6.49 U.S. AGENCIES 40,175,890.37 40,978,620.00 13.17% 802,729.63 2,517,850.00 6.14 GNMA MULTI FAMILY POOLS 10,193,902.82 10,222,878.35 3.29% 28,975.53 700,125.04 6.85 FHLMC POOLS 17,914,219.91 17,875,503.15 5.75% -38,716.76 1,234,703.16 6.91 FHLMC MULTICLASS 8,029,449.64 8,040,230.63 2.58% 10,780.99 505,095.06 6.20 FNMA POOLS 4,618,732.22 4,614,433.06 1.48% -4,299.16 283,163.14 6.14 COLLATERALIZED MORTGAGE OBLIGA 1,288,909.83 1,293,076.07 0.42% 4,266.24 79,955.30 6.18 ASSET BACKED SECURITIES 390,854.98 392,339.61 0.13% 1,484.63 24,233.01 6.18 OTHER GOVERNMENT OBLIGATIONS 5,000,000.00 4,998,440.00 1.61% -2,560.00 288,700.00 5.78 BANKING 4 FINANCE 54,797,396.67 54,771,819.19 17.61% -25,578.48 3,394,611.17 6.20 INDUSTRIAL 9,903,780.00 9,413,370.00 3.03% -490,410.00 832,500.00 8.84 UTILITY - TELEPHONE 5,992,980.00 6,003,300.00 1.93% 10,320.00 360,000.00 6.00 ------------------ ------------------ -------- ----------------- ---------------- ------- TOTAL FIXED INCOME SECURITIES 371,026,642.84 371,166,684.32 119.33% 140,041.48 24,025,772.19 6.47 OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES 5,208,510.82 5,208,510.82 1.67% 0.00 0.00 0.00 ------------------ ------------------ -------- ----------------- ---------------- ------- TOTAL OTHER PORTFOLIO ASSETS 5,208,510.82 5,208,510.82 1.67% 0.00 0.00 0.00 ------------------ ------`-----`----- -------- ----e-e---------- --------"---" - NET PORTFOLIO ASSETS 310,913,700.75 311,053,742.23 100.00% 140,041.48 24,037,996.95 7.73 Page 1 �, YLBAMAL YIELD ANALYSIS PACE x 1 OCSF07511102 1998/06/30 RUN DATE x 07/06/98 ORANGE CTY LIQUID OPERATING RUN TIME : 11.44.47 PAR VALUE YTR AT CURRENT QUALITY MARKET TOTAL COST/ 2 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD RATING PRICE MARKET VALUE 2 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH A CASH EQUIVALENTS 176,606.58 DREYFUS TREASURY CASH MONT .000 5.5D5 AAA 100.000 176,606.58 1.20 996085247 176,606.58 .98 .00 BSDT RESERVE DEPOSIT ACCOUNT- .000 .000 .000 .00 .00 999495906 PUBLIC 1I .00 .00 2,400,000.00 FEDERAL HONE LN OR CONS DISC 5.459 .000 P-1 99.292 2,383,017.33 16.26 313MSVS MAT 07/29/1998 2,583,017.33 13.26 3,000,000.DO FED FARM CR BK CONS DISC NTS 5.474 .000 P-1 98.650 21959.500.00 20.20 313313ZJO MAT 07/15/1998 21959,500.00 16.47 3,200,000.DO FEDERAL MAIL MTC ASSN DISC 5.476 .000 P-1 98.605 3,155,560.00 21.54 313589A94 MAT O8/07/1998 3,155,360.00 17.56 751,000.00 FED NONE LN MTG CORP DISC NTS 5.480 .000 P-1 98.901 742.746.09 5.07 313397YV7 MAT 07/02/1998 742,746.09 4.13 300,000.00 FEDERAL MORE LN SK DISC 5.512 .000 P-1 99.030 297,088.91 2.02 3133UZRO MAT 07/22/1998 297,088.91 1.65 800,000.00 FORD MR CR CO DISC 5.561 .000 P-1 98.719 789,752.00 5.39 34539UGF3 07/15/1998 789,752.00 4.39 $00,000.00 NATIONAL RURAL DISC 5.571 .000 P-1 98.551 788,410.00 5.38 637430JU6 09/28/1998 788,410.00 4.39 800,000.00 GENERAL ELEC CAP DISC 5.572 .DOD P-1 98.717 789,733.33 5.39 36959JJ95 09/09/1998 789,733.33 4.39 2,600,000.00 FED HOME LN MG CORP DISC NTS 6.217 .000 P-1 98.688 2,565,881.50 17.51 313397F71 MAT 09/14/1998 2,565,881.50 14.28 -------- ------- ----------------- --------- TOTAL CASH A CASH EQUIVALENTS 5.377 .126 14,648,095.74 100.00 14,648,095.74 81.50 FIXED INCOME SECURITIES 3,30D,OOD.00 U S TREASURY NOTES 5.585 6.329 AAA 100.719 3,325,265.63 100.00 912827K72 06.375% OS/15/1999 00 05/15/96 3,323.727.00 18.49 YLOAKAL YIELD ANALYSIS PAGE 2 OCSF07511102 1998/06/30 RUN DATE 07/06/98 ORANGE CTY LIQUID OPERATING RUN TIME 11.44.47 PAR VALUE YTM AT CURRENT QUALITY MARKET TOTAL COST/ 2 TYPE SECURITY IO SECURITY DESCRIPTION BOOK YIELD RATING PRICE MARKET VALUE 2 TOTAL _______ _______ _______ ________ ____________ __________ ________ _______ _________________ --------- TOTAL FIXED INCOME SECURITIES 5.585 6.329 3,325,265.63 100.00 3,323,727.00 16.49 ________ _______ _________________ --------- TOTAL 5.384 .360 17,973,361.37 100.00 17,971,822.74 100.00 YWANAL YIELD ANALYSIS PAGE 3 OCSFO7522202 1998/06/30 RUN DATE 07/06/98 ORANGE CTY-LONG TERM OPERATING RUM TIME 11.44.4] PAR VALUE YTN AT CURRENT QUALITY MARKET TOTAL COST/ 7. TYPE SECURITY ED SECURITY DESCRIPTION DOCK YIELD RATING PRICE MARKET VALUE X TOTAL ----------------- ------'---------------------- ------- ------- ------- -------- ------------ ---------- CASH 8 CASH EQUIVALENTS 231,148.49 DREYFUS TREASURY CASH HUNT .000 5.505 AAA 100.000 231,148.49 12.02 996085247 231,148.49 .06 .00 BSDT RESERVE DEPOSIT ACCOUNT- .000 .000 .000 .00 .00 999495906 PUBLIC II .00 .00 400,000.00 ABBOTT LABS DISC 5.533 .000 NR 99.587 398,547.00 20.73 00282BGG3 07/16/1998 398,347.00 .11 900,000.00 PROCTER 8 GAMBLE DISC 5.547 .000 P-1 99.327 893,939.00 46.52 74271SH73 08/07/1998 893,939.00 .24 100,000.00 NATIONAL RURAL DISC 5.571 .000 P-1 98.551 98,551.25 5.12 63743D 6 09/28/1998 98,551.25 .03 300,000.00 FORD MR CR CO DISC 5.850 .000 P-1 99.838 299,513.33 15.58 34539UGA4 07/10/1998 299,515.33 .08 TOTAL CASH 8 CASH EQUIVALENTS 4.310 1.240 1,921,499.07 100.00 1,921,499.07 .52 FIXED INCOME SECURITIES 3,500,000.00 CHRYSLER FIN MTN .000 5.803 A2 100.062 3,498,635.08 .9b 17120QESO FLTG RT 08/08/2002 OD 04/08/98 5,502,170.00 .94 500,732.16 FNMA POOL 4006SS81 .000 6.065 MA 300.625 504,331.17 .13 31362MM7 6.391% 08/01/2028 DO 09/01/88 503,861.74 .14 4,000,000.00 FORD MR CR MTN TRANCHE OTR 96 .000 5.653 Al 100.129 3,970,480.00 2.07 34540WZ1 FLTG/RT 11/09/1998 DD 11/08/93 4,005,160.00 1.07 YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 1998/06/30 RUN DATE : 07/06/94 ORANGE CTY-LONG TERN OPERATING RUN TINE 11.44.47 PAR VALUE YTH AT CURRENT QUALITY MARKET TOTAL COST/ Z TYPE SECURITY ID SECURITY DESCRIPTIGN BOOK YIELD RATING PRICE "WET VALUE / TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ -----____- 7,100,000.00 FORD ROTOR CR NTH TR 0 00177 .000 5.347 Al 99.875 6,999,748.00 1.91 345402HJ3 VAR/RT 03/30/1999 DD 03/30/94 7,091,125.00 1.90 3,000,000.00 HELLER FINL INC SR NT .000 6.171 A3 300.264 21999,310.00 .81 423328AZ6 FLTG RT 04/27/1999 DO 04/27/94 3,007,920.00 .81 4,000,000.00 HELLER FINL NTN .000 5.904 A3 100.062 4,000,000.00 1.07 42333HJN3 FLTG RT 06/01/2000 OD 04/07/98 4,002,480.00 1.07 4,000,000.00 HOUSEHOLD FIN CO M .000 5.912 A2 100.596 4,000,000.00 1.08 44181KZA5 FLTG RT 06/24/2003 DO 06/24/98 4,023,840.00 1.08 5,000,000.00 STUDENT LN KKTG ASSN 98-2 Al .000 .010 AAA 99.969 51000,000.00 1.34 78442GBA3 FLTG RT 04/25/2007 OD 06/18/98 4,998,440.00 1.34 7,102,060.00 US TREASURY INFLATION INDEX NT 3.653 3.665 AAA 98.906 7,093,038.65 1.89 9128273A8 3.fi25% D7/15/2002 DD 07/15/97 7,D24,363.46 1.86 10,255,900.00 US TREASURY INFLATION INDEX HT 3.733 3.485 AAA 96.844 9,976,720.47 2.67 9128272N3 3.375% 02/15/2007 DD O1/15197 9,932,223.80 2.66 21,500,000.00 U S TREASURY NOTES 5.569 6.225 AAA 102.406 22,010,625.00 5.93 912827Z54 06.375% 09/30/2001 OD 09/30/96 22,D17,290.00 5.90 16,000,000.00 U S TREASURY NOTES 5.575 6.776 AAA 110.687 17,781,631.63 4.77 912827$86 07.500% 02/15/2005 OD 02/15/95 17,709,920.00 4.75 5,200,000.00 U S TREASURY BONDS 5.617 9.214 AAA 128.875 6,698,250.00 1.80 912810DG0 11.875Z 11/15/2D03 DD 10/05/83 6,701,500.00 1.80 16,000,000.00 U S TREASURY NOTES 5.668 5.723 AAA 100.469 16,030,100.89 4.33 912827V66 05.750% 10/31/2000 DO 10/31/95 16,075,040.00 4.31 27,400,000.00 U S TREASURY NOTES 5.683 7.081 AAA 105.922 29,146,743.53 7.81 912827D25 07.SOOZ 11/15/2001 OD 11/15/91 29,022,628.00 7.78 28,000,000.00 U S TREASURY NOTES 5.783 6.291 AAA 103.328 28,836,638.31 7.79 9128272WI 06.500% 05/31/2002 DO 06/O2/97 28,931,840.00 7.75 3,500,000.00 U S TREASURY NOTES 5.798 6.390 AAA 103.672 3,613,203.13 .97 9128272SO 06.6257. 04/30/2002 DD 04/30/97 3,628,520.00 .97 5,000,000.00 U S TREASURY NOTES 5.811 6.110 AAA 102.297 5,086,402.25 1.37 9128272LS 06.25UZ 02/28/2002 OD 02/28/97 5,114,850.00 1.37 TONAL YIELD ANALYSIS PAGE 5 OMF07522202 1998/06/30 RUN DATE 07/06/98 ORANGE CTY-LONG TERM OPERATING RUN TIME 11.44.47 PAR VALUE YTM AT CURRENT QUALITY MARKET TOTAL COST/ 2 TYPE SECURITY TO SECURITY DESCRIPTION BOOK YIELD RATING PRICE MARKET VALUE 2 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ --------_- 2,500,000.00 U S TREASURY NOTES 5.814 6.091 AAA 102.609 2,541,015.62 .69 9128273GS 06.WDY. 08/31/2002 DO 09/02/97 2,565,225.00 .69 5,000,000.00 FEDERAL NAIL WE AWN HTH 5.871 5.869 AM 100.187 5,000,781.25 1.34 31364FFH8 5.880% 11/03/1999 DO 11/03/97 5,009,350.00 1.34 6,000,000.00 NATIONSBANK CHARLOTTE N C MTN 5.882 5.851 M2 99.984 5,996,400.00 1.61 63858JDE6 5.850% 04/07/200O DO 04/07/98 5,999,040.00 1.61 52,800,000.00 U S TREASURY NOTES 5.8% 6.773 AM 101.500 53,643,542.86 14.43 9IM27R20 06.8757. 08/31/1999 DO 08/31/94 53,592,000.00 14.36 1,404,835.80 FHLMC HULTICL HTG P/C 1574 E 3.912 5.906 99.906 1,402,860.25 .37 3133T02O5 5.900% 06/15/2017 1,403,515.25 .SO 2,883,303.65 CHASE HANHATTAN GRAN 95-B CL A 5.957 5.895 MA 100.092 2,877,334.32 .77 161614AE2 5.900% 11/15/2001 DD 11/15/95 2,885,956.29 .77 6,000,000.00 BELLSOUTH TELECOMMUNICATIONS 6.033 5.997 AM 100.055 5,992,980.00 1.61 079867AK5 6.000Y. 06/15/2002 DO 06/15/98 6,003,300.00 1.61 858,651.96 FHHA POOL 00313783 6.093 6.104 AM 100.625 864,823.52 .23 313749RC3 6.1422 05/01/2036 DO 1D/81197 B64,018.53 .23 968,468.73 FNMA POOL #0313371 6.142 6.156 AM 100.625 975,429.60 .26 31374=0 6.1942 08/01/2029 DO O1/01/97 974,521.66 .26 936,985.90 FNMA POOL 00315600 6.1" 6.144 AM 100.625 %3,720.48 .25 31374GXH8 6.2212 05/01/2036 DO 06/01/97 %2,842.06 .25 429,917.06 FNMA POOL OOZM575 6.149 6.160 AM 100.625 433,007.30 .11 31370Q6LB 6.1997. 05/01/2033 OD 09/01/93 432,604.04 .12 229,448.73 FNMA POOL 00313769 6.157 6.167 AM 100.625 231,097.89 .06 31374GQWO 6.2067.. 05/01/2036 DD 09/01/97 230,802.78 .06 661,567.45 FNMA POOL /0339016 6.158 6.168 AM 100.625 666,322.46 .17 31375HSO6 6.20T/. 11/01/20M OD 03/01/96 665,702.25 .18 5,000,000.00 U 5 TREASURY BONDS 6.162 8.935 AM 124.516 6,233,593.75 1.67 912810OU 11.1257. 08/15/2003 DO 07/05/83 6,225,800.00 1.67 390,854.99 FIFTH THIRD BK AUTO TR 96A CLA 6.200 6.177 AAA 100.380 390,854.98 .10 31677EM4 6.2002 09/01/2001 OD 05/15/96 392,339.61 .11 VLDANAL YIELD ANALYSIS PAGE 6 OMFO7522202 1998/06/30 07/06/98 ORANGE CTY-LONG TERM OPERATING RUN DATE RUN TIME 11.44.47 11.44.47 PAR VALUE YTM AT CURRENT QUALITY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD RATING PRICE MARKET VALUE 7. TOTAL _________________ _____________________________ _______ _______ _______ ________ ------------ _-______-- 1,500,000.00 BEAR STEARNS CO UNSUB 6.201 6.187 A2 100.214 114991805.00 .40 073902BJ6 6.200% 03/30/2003 DD 03/30/98 1,503,210.00 .40 1,291,684.93 CGNTIMURTGAGE HOME EQ 96-4 A3 6.213 6.183 AAA 100.108 1,288,909.83 .34 21075NDK8 6.190X 10/15/2011 DD 11/23/96 1,293,076.07 .35 4,500,000.00 FEDERAL NATL MG ASSN NTH 6.291 6.129 AAA 101.656 4,488,705.00 1.23 31364CWS 6.230Z 03/01/2002 OD 03/03/97 4,574,520.00 1.23 4,620,647.55 FMLMC MULTICLASS CTF E3 A 6.316 6.296 AAA 100.437 4,625,701.39 1.25 3133TCE95 6.324% 08/15/2032 4,640,839.78 1.24 4,500,000.00 CATERPILLAR FINL MTNS TR00389 6.322 5.780 A2 99.999 4,466,745.00 1.21 14912LSE2 8.78OX 07/15/2998 DD IV15/95 4,499,955.00 1.21 5,000,000.00 LEHMAN BROS HLDGS MTN 400196 6.364 6.575 BAAL 101.140 5,039,450.00 1.36 52517PJD4 6.650X 11/08/2000 00 11/08/96 5,057,000.00 1.36 1,305,000.D0 BEAR STEARNS COS INC SR NTS 6.425 6.637 A2 102.699 1,317,619.35 .35 07390 TANS 6.75OX 05/01/2001 DD 04/26/96 2,327,158.90 .36 2,000,000.00 FHLMC MULTICLASS CTF T11 A6 6.496 6.513 AAA 99.7% 2,000,888.00 .55 3133TDPV2 6.500% 09/25/2018 1,995,875.60 .53 1,000,000.00 CHRYSLER FINL MTN TR B 00335 6.514 6.259 A2 100.027 993,160.00 .26 17120QPYI 6.260X 07/20/2998 DD 07/18/95 1,000,170.00 .27 3,700,000.00 GENERAL MRS ACCEP MTN TR00324 6.532 8.2" A2 101.339 3,911,640.00 1.01 37042RPHS 8.3757. OV03/1999 DD 0/05/95 3,749,543.00 1.01 5,500,080.00 COMMIT TO MR FHLMC 6.551 6.518 AAA 99.718 5,463,906.25 1.47 999ACM760 6.3007. 08/15/2026 5,484,490.00 1.47 8,000,000.00 FEDERAL NATL HTG AMR HTN 6.577 6.460 AAA 102.562 8,012,576.00 2.21 31364CBD9 6.6257. 04/18/2001 OD 04/18/96 8,204,960.00 2.20 9,000,000.00 PHILIP MORRIS COS MT 6.593 8.644 A2 104.593 9,903,780.00 2.53 718154BB2 9.250X OV1512000 9,413,370.00 2.52 17,638,616.53 FHLMC GROUP ISS-0476 6.628 6.907 AAA 101.343 17,914,219.91 4.81 31280DQ55 7.000% OV0112003 DD 02/01/98 17,875,503.15 4.79 10,000,000.00 FEDERAL NATL MTG ASSN MTN 6.636 5.680 AAA 99.297 9,593,750.00 2.67 31364BNF3 5.640X OV2012001 DD OV20/96 9,929,700.00 2.66 YLDANAL YIELD ANALYSIS PAGE 7 OCSF07522202 1998/06/30 RUM DATE : 07/06/98 ORANGE CTY-LONG TERM OPERATING RUM TIME : 11.".47 PAR VALUE YTH AT CURRENT QUALITY MARKET TOTAL COST/ 7. TYPE SECURITY IO SECURITY DESCRIPTION BOON YIELD RATING PRICE MARKET VALUE 7. TOTAL 3,000,000.00 G M A C MED TERM MTS 6.660 8.301 A2 103.903 3,227,070.00 .83 37042RK84 8.625% 1/10/2000 OD 1/10/95 3,117,090.00 .84 5,000,000.00 FEDERAL HOME LM URG CORP BEGS 6.713 6.009 AAA 99.687 4,851,562.50 1.34 31MAOWS 5.990% 03/06/2001 00 03/06/96 4,984,350.00 1.34 2,750,000.00 COMMIT TO PUR FNLMC GOLD 6.771 6.897 AAA 101.500 2,764,609.37 .75 999ACG714 7.000Y. 07/15/2028 21791,250.00 .75 4,927,420.69 GNMA II POOL 8080088M 6.828 6.853 AAA 102.141 5,035,208.02 1.35 36225CC20 7.00OX 06/20/2027 DO 06/01/97 5,032,916.77 1.35 2,824,040.16 GNM II POOL *00086" 6.865 6.841 AAA 102.328 1,854,535.83 .50 36202KUM6 7.000% 08/20/2025 OD 08/01/95 1,866,503.81 .50 3,250,325.45 GNMA 1I POOL $0080023 6.B69 6.846 AAA 102.250 3,304,158.97 .89 36225CAZ9 7.0007. IV20/2026 DO 12/01/96 3,323,457.77 .89 2,500,000.00 U S TREASURY BONDS 6.906 8.237 AAA 160.859 4,029,030.31 1.08 912830DJ4 13.2502 05/15/2014 OD 05/13/84 4p021,475.00 1.08 __ _________________ --------- TOTAL FIXED INCOME SECURITIES 4.916 6.181 371,026,642.84 100.00 371,166,684.32 99.51 ________ _______ ----------------- _______-- TOTAL 4.916 6.179 372,948,141.91 100.00 373,088,183.39 100.00 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ RECEIPTS AND DISBURSEMENT TRANSACTIONS U.S. DOLLAR OTHER ADMINISTRATIVE EXPENSES LONG TERM OPER-PIMCO 0.00 FED WIRE FEES 29-JUN-1998 -3.00 -3.00 0.000000 912830DY1 U S TREASURY BONDS ----------- -3.00 0.00 0.000000 CW 08.750% 05/15/2017 DO 05/15/87 ----------- 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO 0.00 FED WIRE FEES 19-JUN-1998 -3.00 -3.00 0.000000 912827R20 U S TREASURY NOTES ----------- -3.00 0.00 0.000000 CW 06.875% 08/31/1999 DO 08/31/94 ----------- 0.00 0.00 1.000000000 0.00 TANG TERN OPER-PIMCO 0.00 FED WIRE FEES 22-JUN-1998 -3.00 -3.00 0.000000 912827R20 U S TREASURY NOTES ----------- -3.00 0.00 0.000000 CW 06.675% 08/31/1999 DO 08/31/94 ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 FED WIRE FEES 24-JUN-1998 -3.00 -3.00 0.000000 912827R20 U S TREASURY NOTES ----------- -3.00 0.00 0.000000 CW 06.8751 08/31/1999 DO 08/31/94 ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 FED WIRE FEES 25-JUN-1998 -3.00 -3.00 0.000000 9128272L5 U S TREASURY NOTES ----------- -3.00 0.00 0.000000 CW 06.250% 02/28/2002 DD 02/28/97 ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 FED WIRE FEES 29-JUN-1998 -3.00 -3.00 0.000000 9128273K6 U S TREASURY NOTES ----------- -3.00 0.00 0.000000 CW 05.625% 10/31/1999 DO 10/31/97 ----------- 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO 0.00 LIED WIRE FEES 29-JUN-2998 -3.00 -3.00 0.000000 9128273R1 U S TREASURY NOTES ----------- -3.00 0.00 0.000000 CW 05.6251 12/31/1999 DD 12/31/97 ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 FED WIRE FEE is-JUN-1998 -3.00 -3.00 0.000000 99350G078 GOLDMAN SACHS LP REPO ----------- -3.00 0.00 0.000000 Page 1 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O2-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ CW 05.600% 06/18/1998 DO O6/17/98 ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 22-JUN-1998 -3.00 -3.00 0.000000 99350J312 99350J312 ----------- -3.00 0.00 0.000000 CW LEHMAN BROTHERS REPO ----------- 0.00 0.00 1.000000000 05.400% 06/22/1998 DO 06/19/98 0.00 LONG TEAM OPER-PIMCO 0.00 FED WIRE FEE 23-JUN-1998 -3.00 -3.00 0.000000 99350K376 LEHMAN BROTHERS REPO ----------- -3.00 0.00 0.000000 CW 05,450% 06/23/1998 DO 06/22/98 ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 FED WIRE FEE 24-JUN-1998 -3.00 -3.00 0.000000 99350L119 LEHMAN BROTHERS REPO ----------- -3.00 0.00 0.000000 Cw 05.300% 06/24/1998 DO 06/23/98 ----------- 0.00 0.00 1.000000000 0.00 PURCHASES U.S. DOLLAR CASH 4 CASH EQUIVALENTS LONG TERM OPER-PIMCO 400,000.00 ABBOTT LABS DISC 18-JUN-1998 -398,347.00 -398,347.00 99.586750 00282BGG3 07/16/1998 19-JUN-1998 398,347.00 - 398,347.00 99.586750 B BANK OF AMERICA NT 4 SA, SAN F ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 400,000.00 ABBOTT LABS DISC 18-JUN-1998 -398,347.00 -398,347.00 99.586750 00282BGG3 07/16/1998 19-JUN-1998 -398,347.00 0.00 99.586750 FC BANK OF AMERICA NT 6 SA, SAN F 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 100,000.00 DU PONT DE NEMOUR DISC 02-JUN-1998 -99,357.17 -99,357.17 99.357166 26354BGE6 07/14/1998 02-JUN-1998 99,357.17 99,357.17 99.357166 B GOLDMAN SACHS 6 CO, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 100,000.00 DO PONT DE NEMOUR DISC 02-JUN-1998 -99,357.17 -99,357.17 99.357166 26354BGE6 07/14/1998 02-JUN-1998 -99,357.17 0.00 99.357166 PC GOLDMAN SACHS 4 CO, NY 02-JUN-1998 0.00 0.00 1.000000000 0.00 Page 2 OCS0000100 MELLON TRUST 1. CSDDC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN ]ASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE %RATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LIQUID OPER-PIMCO 2,400,000.00 FEDERAL HOKE IN BK CONS DISC 12-JUN-1999 -2,383,017.33 -2,383,017.33 99.292389 313385ZY5 MAT 07/29/1990 12-JUN-1990 2,393,027.33 2,383,017.33 99.292389 B CHASE SECURITIES, NEW YORK ----------- 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 2,400,000.00 FEDERAL HOME IN BK CONS DISC 12-JUN-1998 -2,383,017.33 -2,383,017.33 99.292389 313385ZY5 MAT 07/29/1998 12-JUN-1999 -2,383,017.33 0.00 99.292389 FC CHASE SECURITIES, NEW YORK 12-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 2,600,000.00 FED HOME IN WIG CORP DISC NTS 19-JUN-1998 -2,565,901.50 -2,565,881.50 98.687750 313397F71 HAT 09/14/1998 19-JUN-1998 2,565,881.50 2,565,881.50 98.687750 B LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LIQUID OPER-PINCO 2,600,000.00 FED HOME IN HIS CORP DISC HTS 19-JUN-1998 -2,565,881.50 -2,565,891.50 98.697750 313397F71 MAT 09/14/1990 19-JUN-1998 -2,565,881.50 0.00 98.687750 FC LEHMAN GOVT SECS INC, NY 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 300,000.00 FORD MTR CR CO DISC 30-JUN-1999 -299,513.33 299,513.33 99.837777 34539UGA4 07/10/1998 30-JUN-1999 299,513.33 299,513.33 99.837777 B GOLDMAN SACHS 6 CO, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 300,000.00 FORD MTR CR CO DISC 30-JUN-1998 -299,513.33 -299,513.33 99.837777 34539UGA4 07/10/1998 30-JUN-1998 -299,513.33 0.00 99.837777 FC GOLDMAN SACHS 6 CO, NY 30-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 400,000.00 GENERAL ELEC CAP DISC 03-JUN-1998 -399,449.00 -399,449.00 99.862250 36959JFC2 06/12/1998 03-JUN-1998 399,449.00 399,449.00 99.862250 B BANKERS TRUST CO/COMMERCIAL PA ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 400,000.00 GENERAL ELEC CAP DISC 03-JUN-1998 -399,449.00 -399,449.00 99.862250 36959JFC2 06/12/1998 03-JUN-1998 -399,449.00 0.00 99.862250 !C CITIBANK/CP/IPA, NEW YORK 03-JUN-2998 0.00 0.00 1.000000000 0.00 Page 3 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE KRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LIQUID OPER-PIMCO 800,000.00 GENERAL ELEC CAP DISC 17-JUN-1998 -789,733.33 -709,733.33 98.716666 36959JJ95 09/09/1998 17-JUN-1998 789,733.33 789,733.33 98.716666 B CITIBANK/CP/IPA, NEW YORK ----------- 0.00 0.00 1.0000b0000 0.00 LIQUID OPER-PIMCO 800,000.00 GENERAL BLEC CAP DISC 17-JUN-1998 -789,733.33 -789,733.33 98.716666 36959JJ95 09/09/1998 17-JUN-1998 -789,733.33 0.00 98.716666 FC CITIBANK/CP/IPA, NEW YORK 17-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 300,000.00 GENERAL MTRS CORP DISC 28-MAY-1998 -298,797.50 -298,797.50 99.599166 3704H3FO7 06/24/1998 29-MAY-1998 -298,797.50 0.00 99.599166 PC CHEMICAL BK COMMERCIAL PAPER/I O1-JUN-1998 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO -300,000.00 GENERAL MTRS CORP DISC 28-MAY-1998 298,797.50 298,797.50 99.599166 3704H3FQ7 06/24/1999 29-MAY-1998 298,797.50 0.00 99.599166 FCC CHEMICAL BK COMMERCIAL PAPER/I 29-MAY-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 800,000.00 NATIONAL RURAL DISC 24-JUN-1998 -788,410.00 -788,410.00 98.551250 63743DJU6 09/28/1998 25-JUN-1998 788,410.00 788,410.00 99.551250 B CHASE SECURITIES, NEW YORK ----------- 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 800,000.00 NATIONAL RURAL DISC 24-JUN-1998 -788,410.00 -789,410.00 98.551250 63743DJU6 09/28/1996 25-JUN-2998 -788,410.00 0.00 98.551250 FC CHASE SECURITIES, NEW YORK 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 100,000.00 NATIONAL RURAL DISC 24-JUN-1998 -98,551.25 -98,551.25 98.551250 63743DJU6 09/28/1999 25-JUN-1998 90,551.25 98,551.25 98.551250 B CHASE SECURITIES, NEW YORK ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 100,000.00 NATIONAL RURAL DISC 24-JUN-1998 -98,551.25 -98,551.25 98.551250 63743DJU6 09/28/1998 25-JUN-1998 -9B,551.25 0.00 98.552250 PC CHASE SECURITIES, NEW YORK 25-JUN-1998 0.00 0.00 1.000000000 Page 4 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 0.00 LONG TERM OPER-PIMCO 900,000.00 PROCTER a GAMBLE DISC 24-JUN-1998 -093,939.00 -893,939.00 99.326555 74271SH73 08/07/1998 24-JUN-1998 893,939.00 893,939.00 99.326555 B GOLDMAN SACHS 6 CO, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 900,000.00 PROCTER 6 GAMBLE DISC 24-JUN-1998 -893,939.00 -893,939.00 99.326555 74271SH73 08/07/1998 24-JUN-1998 -893,939.00 0.00 99.326555 PC GOLDMAN SACHS 6 CO, NY 24-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,000,000.00 GOLDMAN SACHS LP REPO 17-JUN-1998 -1,000,000.00 -1,000,000.00 100.000000 99350G078 05.600% 06/19/1998 DO 06/17/98 17-JUN-1998 11000,000.00 1,000,000.00 100.000000 B GOLDMAN SACHS 6 CO, NY ----------- 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO 1,000,000.00 GOLDMAN SACHS LP REPO 17-JUN-1998 -1,000,000.00 -11000,000.00 100.000000 99350G078 05.600% 06/18/1998 DO 06/17/98 17-JUN-1998 -1,000,000.00 0.00 100.000000 FC GOLDMAN SACHS c CO, NY 17-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 10,000,000.00 LEHMAN BROTHERS REPO 19-JUN-1998 -10,000,000.00 -10,000,000.00 100.000000 99350J312 05.400% 06/22/1998 DO O6/19/98 19-JUN-1998 10,000,000.00 10,000,000.00 100.000000 B LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 10,000,000.00 LEHMAN BROTHERS REPO 19-JUN-1998 -10,000,000.00 -10,000,000.00 100.000000 99350J312 05.400% 06/22/1998 DO O6/19/98 19-JUN-1998 -10,000,000.00 0.00 100.000000 FC LEHMAN GOVT SECS INC, NY 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 3,900,000.00 LEHMAN BROTHERS REPO 22-JUN-1998 -3,900,000.00 -3,900,000.00 100.000000 99350K376 05.450% 06/23/1998 DD 06/22/98 22-JUN-1998 3,900,000.00 3,900,000.00 100.000000 B LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TEAM OPER-PINCO 3,900,000.00 LEHMAN BROTHERS REPO 22-JUM-1998 -3,900,000.00 -3,900,000.00 100.000000 99350K376 05.450% 06/23/1998 DD O6/22/98 22-JUN-1998 -3,900,000.00 0.00 100.000000 Page 5 OCSGO00100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CORR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ FC LEHMAN GOVT SECS INC, NY 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,500,000.00 LEHMAN BROTHERS REPO 23-JUN-1998 -4,500,000.00 -4,500,000.00 100.000000 99350L119 05.300% 06/24/1998 DO 06/23/98 23-JUN-1998 4,500,000.00 4,500,000.00 100.000000 B LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,500,000.00 LEHMAN BROTHERS REPO 23-JUN-1998 -4,500,000.00 -4,500,000.00 100.000000 993SOL219 05.300E 06/24/1998 DO 06/23/98 23-JUN-1998 -4,500,000.00 0.00 100.000000 FC LEHMAN GOVT SECS INC, NY 23-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 164,944.76 DREYFUS TREASURY CASH MGMT 22-JUN-1998 -164,944.16 -164,944.76 1.000000 996095247 22-JUN-1998 164,944.76 164,944.76 1.000000 B ----------- 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 164,944.76 DREYFUS TREASURY CASH MGMT 22-JUN-1998 -164,944.76 -164,944.76 1.000000 996085247 22-JUN-1998 -164,944.76 0.00 1.000000 FC 22-JUN-1990 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,411,911.36 DREYFUS TREASURY CASH MGMT 22-JUN-1996 -1,411,911.36 -1,411,911.36 1.000000 996085247 22-JUN-1998 1,411,911.36 1,411,911.36 1.000000 B ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,411,921.36 DREYFUS TREASURY CASH MGMT 22-JUN-1998 -1,411,911.36 -1,411,911.36 1.000000 996095247 22-JUN-1998 -1,411,911.36 0.00 1.000000 FC 22-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIHCO 11,590.00 DREYFUS TREASURY CASH MGMT 25-JUN-1998 -11,590.00 -11,590.00 1.000000 996085247 25-JUN-1998 11,590.00 11,590.00 1.000000 B ----------- 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 11,590.00 DREYFUS TREASURY CASH MGMT 25-JUN-1998 -11,590.00 -11,590.00 1.000000 Page 6 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 996085247 25-JUN-1998 -21,590.00 0.00 1.000000 PC 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,690.62 DREYFUS TREASURY CASH MGMT 25-JUN-1998 -4,690.62 -4,690.62 1.000000 996095247 25-JUN-1998 4,690.62 4,690.62 1.000000 B ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,690.62 DREYFUS TREASURY CASH MGMT 25-JUN-1998 -4,690.62 -4,690.62 1.000000 996085247 25-JUN-1998 -4,690.62 0.00 1.000000 PC 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 10,633.34 DREYFUS TREASURY CASH MGMT 26-JUN-1998 -10,833.34 -10,833.34 1.000000 996085247 26-JUN-1998 10,833.34 10,833.34 1.000000 B ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 10,833.34 DREYFUS TREASURY CASH MGMT 26-JUN-1998 -10,833.34 -10,833.34 1.000000 996085247 26-JUN-1998 -10,833.34 0.00 1.000000 PC 26-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 71.82 DREYFUS TREASURY CASH MGMT 30-JUN-1998 -71.82 -71.82 1.000000 996085247 30-JUN-1998 71.82 71.82 1.000000 B ----------- 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 71.82 DREYFUS TREASURY CASH MGMT 30-JUN-1998 -71.82 -71.82 1.000000 996085247 30-JUN-1998 -71.82 0.00 1.000000 PC 30-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 50,797.06 BSDT-LATE MONEY DEP ACCT 01-JUN-1998 -50,797.06 -50,797.06 1.000000 996087094 VAR AT DO O6/26/1997 01-JUN-1998 50,797.06 50,797.06 1.000000 B O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO Page 7 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 241,465.94 BSDT-LATE MONEY DEP ACCT 15-JUN-1998 -241,465.94 -241,465.94 1.000000 996087094 VAR RT DO 06/26/1997 15-JUN-1998 241,465.94 241,465.94 1.000000 B 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 15,779.51 BSDT-LATE MONEY DEP ACCT 17-JUN-1998 -15,779.51 -15,779.51 1.000000 996087094 VAR RT DO 06/26/1997 17-JUN-1998 15,779.51 15,779.51 1.000000 B 17-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PINCO 10,833.34 BSDT-LATE MONEY DEP ACCT 25-JUN-1998 -10,833.34 -10,833.34 1.000000 996087094 VAR AT DD O6/26/1997 25-JUN-1998 10,833.34 10,833.34 1.000000 B 25-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PINCO 518.00 BSDT RESERVE DEPOSIT ACCOUNT- 01-JUN-1998 -518.00 -518.00 1.000000 999495906 PUBLIC II O1-JUN-1998 518.00 518.00 1.000000 B 01-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 389,639.00 BSDT RESERVE DEPOSIT ACCOUNT- 01-JUN-1998 -389,639.00 -389,639.00 1.000000 999495906 PUBLIC II O1-JUN-1998 309,639.00 389,639.00 1.000000 B O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 51,439.00 BSDT RESERVE DEPOSIT ACCOUNT- 02-JUN-1998 -51,439.00 -51,439.00 1.000000 999495906 PUBLIC II 02-JUN-1990 51,439.00 51,439.00 1.000000 B 02-JUN-1996 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 21,700.00 BSDT RESERVE DEPOSIT ACCOUNT- 10-JUN-1998 -21,700.00 -21,700.00 1.000000 999495906 PUBLIC II 10-JUN-1998 21,700.00 21,700.00 1.000000 B 10-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 16,983.00 BSDT RESERVE DEPOSIT ACCOUNT- 12-JUN-1998 -16,983.00 -16,983.00 1.000000 999495906 PUBLIC II 12-JUN-199B 16,983.00 16,983.00 1.000000 B 12-JUN-199B 0.00 0.00 1.000000000 0.00 Page 8 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PIMCO 183,915.00 BSDT RESERVE DEPOSIT ACCOUNT- 12-JUN-1998 -183,915.00 -183,915.00 1.000000 999495906 PUBLIC II 12-JUN-1998 183,915.00 183,915.00 1.000000 B 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,024,883.00 BSDT RESERVE DEPOSIT ACCOUNT- 15-JUN-1998 -1,024,893.00 -1,024,883.00 1.000000 999495906 PUBLIC II 15-JUN-1998 1,024,883.00 1,024,883.00 1.000000 B 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 390,260.00 BSDT RESERVE DEPOSIT ACCOUNT- 16-JUN-1998 -390,260.00 -390,260.00 1.000000 999495906 PUBLIC II 16-JUN-1998 390,260.00 390,260.00 1.000000 B 16-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 10,267.00 SHUT RESERVE DEPOSIT ACCOUNT- 17-JUN-1998 -10,267.00 -10,267.00 1.000000 999495906 PUBLIC II 17-JUN-1998 10,267.00 10,267.00 1.000000 8 17-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 179,410.00 SHUT RESERVE DEPOSIT ACCOUNT- 18-JUN-1998 -179,410.00 179,410.00 1.000000 999495906 PUBLIC II 18-JUN-1998 179,410.00 179,410.00 1.000000 B 18-JUN-1998 0.00 0.00 1.000000000 0.00 U.S. DOLLAR FIXED INCOME SECURITIES TANG TERM OPER-PIMCO 6,000,000.00 BELLSOUTH TELECOMMUNICATIONS 17-JUN-1998 -5,992,980.00 -5,992,980.00 99.883000 079867AX5 6.000% 06/15/2002 DO 06/15/98 22-JUN-1998 5,992,980.00 5,992,980.00 99.983000 B LEHMAN BROS INC, NJ . ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 6,000,000.00 BELLSOUTH TELECOMMUNICATIONS 17-JUN-1998 -7,000.00 -7,000.00 99.883000 079867AX5 6.000% 06/15/2002 DO 06/15/98 22-JUN-1998 0.00 0.00 99.883000 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 6,000,000.00 BELLSOUTH TELECOMMUNICATIONS 17-JUN-1998 -5,999,980.00 -5,999,980.00 99.883000 079867AX5 6.000% 06/15/2002 DD O6/15/98 22-JUN-1998 -51999,980.00 0.00 99.883000 FC LEHMAN BROS INC, NJ 22-JUN-1998 0.00 0.00 1.000000000 Page 9 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 RASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 0.00 LONG TERM OPER-PIMCO -4,835,969.00 FHLMC MULTICLASS CTF E3 A 11-MAR-1998 4,941,258.34 4,841,258.34 100.109375 3133TCE95 6.324% 08/15/2032 23-APR-1998 -4,841,258.34 -4,841,258.34 100.109375 BC REAR STEARNS 6 CO INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,835,969.00 FHLMC MULTICLASS CTF E3 A 11-MAR-1998 18,142.60 18,742.60 100.109375 3133TCE95 6.324% 08/15/2032 23-APR-1998 0.00 0.00 100.109375 IBC ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,835,969.00 FHLMC MULTICLASS CTF E3 A 11-MAR-1998 4,860,000.94 4,860,000.94 100.109375 3133TCE95 6.324E O8/15/2032 23-APR-1998 4,860,000.94 0.00 100.109375 FCC BEAR STEARNS 6 CO INC, NY 23-APR-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,785,376.00 FHLMC MULTICLASS CTF E3 A 11-MAR-1998 -4,790,610.01 -4,790,610.01 100.109375 3133TCE95 6.324% 08/15/2032 23-APR-1998 4,790,610.01 4,790,610.01 100.109375 B BEAR STEARNS a CO INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,795,376.00 FHLMC MULTICLASS CTF E3 A 11-MAR-1998 -18,594.10 -18,594.10 100.109375 3133TCE95 6.324% 08/15/2032 23-APR-1998 0.00 0.00 100.109375 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,785,376.00 FHLMC MULTICLASS CTF E3 A 11-MAR-1998 -4,809,204.11 -4,809,204.11 100.109375 3133TCE95 6.324% 08/15/2032 23-APR-1998 -4,809,204.11 0.00 100.109375 PC BEAR STEARNS 6 CO INC, NY O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,404,835.80 FHLMC MULTICL MTG P/C 1574 E 11-JUN-1998 -1,402,860.25 -1,402,860.25 99.859375 3133T02D5 5.900% 06/15/2017 16-JUN-1998 1,402,860.25 1,402,860.25 99.859375 B CREDIT SUISSE FIRST BOSTON CDR ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,404,835.80 FHLMC MULTICL MTG P/C 1574 E 11-JUN-1998 -3,453.56 -3,453.56 99.859375 3133T02D5 5.900% 06/15/2017 16-JUN-1998 0.00 0.00 99.859375 Page 10 .,. OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/SASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ IB ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,404,835.80 FHLMC MULTICL MTG P/C 1574 E 11-JUN-1998 -1,406,313.81 -1,406,313.81 99.859375 3133T02D5 5.900% 06/15/2017 16-JUN-1998 -1,406,313.81 0.00 99.859375 PC CREDIT SUISSE FIRST BOSTON CDR 16-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,000,000.00 HOUSEHOLD FINANCE CO MTN 17-JUN-1998 -4,000,000.00 -4,000,000.00 100.000000 44181KZA5 FLTG RT 06/24/2003 DO O6/24/98 24-JUN-1996 4,000,000.00 4,000,000.00 100.000000 B MORGAN STANLEY 6 CO INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,000,000.00 HOUSEHOLD FINANCE CO MTN 17-JUN-1998 -4,000,000.00 -4,000,000.00 100.000000 441BIXZAS FLTG RT O6/24/2003 DO O6/24/98 24-JUN-1998 -4,000,000.00 0.00 100.000000 FC MORGAN STANLEY 6 CO INC, NY 24-JUN-1999 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,000,000.00 STUDENT LN MKTG ASSN 98-2 Al 10-JUN-1998 -5,000,000.00 -5,000,000.00 100.000000 78442GRA3 FLTG AT 04/25/2007 DO O6/18/98 18-JUN-1998 5,000,000.00 5,000,000.00 100.000000 B BAIRD, ROBERT N E CO INC, MILM ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,000,000.00 STUDENT IN MKTG ASSN 98-2 Al 10-JUN-1990 -5,000,000.00 -5,000,000.00 100.000000 78442GBA3 FLTG AT 04/25/2007 DO 06/18/98 18-JUN-1998 -5,000,000.00 0.00 100.000000 FC BAIRD, ROBERT N a CO INC, MILK 18-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,200,000.00 U S TREASURY BONDS is-JUN-1998 -6,698,250.00 -6,698,250.00 128.812500 91281ODG0 11.875% 11/15/2003 DO 10/05/83 19-JUN-1998 6,698,250.00 6,699,250.00 128.812500 B SALOMON BROS INC, NEW YORK ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,200,000.00 U S TREASURY BONDS 18-JUN-1998 -58,729.62 -50,729.62 128.812500 912810DG0 11.875% 11/15/2003 DO 10/05/83 19-JUN-1998 0.00 0.00 128.812500 IB ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,200,000.00 U S TREASURY BONDS 18-JUN-1998 -6,756,979.62 -6,756,979.62 128.812500 Page 11 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TK100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 91281ODGO 11.875% 11/15/2003 DO 10/05/83 19-JUN-1998 -6,756,979.62 0.00 128.812500 PC SALOMON BROS INC, NEW YORK 29-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 35,400,000.00 U S TREASURY NOTES 07-KAY-1998 -36,646,517.11 -36,646,517.11 101.578300 912827R20 06.8758 08/31/1999 DO O8/31/94 12-JUN-1998 -36,646,517.11 0.00 101.578300 FC CREDIT SUISSE FIRST BOSTON COR 12-JUN-1998 0.00 0.00 2.000000000 0.00 LONG TERM OPER-PIMCO 50,000,000.00 U S TREASURY NOTES 11-JUN-1998 -50,756,800.00 -50f756,800.00 101.513600 912827R20 06.875% 08/31/1999 DO 08/31/94 30-JUL-1998 50,756,800.00 50,756,800.00 101.513600 B BANK OF NEW YORK TORONTO DOMIN ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 50,000,000.00 U S TREASURY NOTES 11-JUN-1998 -1,233,016.31 -1,233,016.31 101.513600 912827R20 06.875% 08/31/1999 DD 08/31/94 10-JUL-1998 0.00 0.00 101.513600 ID ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,300,000.00 U S TREASURY NOTES 11-JUN-1998 -1,319,676.80 -1,319,676.80 101.513600 912827R20 06.875% 08/31/1999 DO 08/31/94 10-JUL-1998 1,319,676.80 1,319,676.80 101.513600 B BANK OF NEW YORK TORONTO DOMIN ----------- 0.00 - 0.00 1.000000000 0.00 TANG TERM OPER-PINCO 1,300,000.00 U S TREASURY NOTES 11-JUN-1990 -32,058.42 -32,058.42 101.513600 912827R20 06.075% 08/31/1999 DO O8/31/94 10-JUL-1998 0.00 0.00 101.513600 IB ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,500,000.00 U S TREASURY NOTES 15-JUN-1998 -1,523,851.50 -1,523,851.50 101.590100 912827R20 06.8758 08/31/1999 OD 08/31/94 10-JUL-1998 1,523,851.50 1,523,851.50 101.590100 B MSBC SECURITIES INC, MEN YORK ----------- 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO 1,500,000.00 U S TREASURY NOTES 15-JUN-1990 -36,990.49 -36,990.49 101.590100 912827R20 06.675% 08/31/1999 DD 08/31/94 10-JUL-1998 0.00 0.00 101.590100 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PINCO Page 12 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 1,200,000.00 U S TREASURY NOTES 28-APR-1998 -1,336,147.60 -1,336,147.60 108.921600 912827586 07.5000 02/15/2005 DO 02/15/95 12-JUN-1998 -1,336,147.60 0.00 108.921600 FC BANK OF NEW YORK TORONTO DOMIN 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 1,200,000.00 U S TREASURY NOTES 11-MAY-1998 -1,339,010.80 -1,339,010.80 109.160200 912827586 07.500% 02/15/2005 DO 02/15/95 12-JUN-1998 -1,339,010.80 0.00 109.160200 PC MORGAN STANLEY a CO INC, NY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,800,000.00 U S TREASURY NOTES 18-JUN-1998 -5,937,750.00 -5,937,750.00 102.375000 912827E54 06.375% 09/30/2001 DD 09/30/96 19-JUN-1998 5,937,750.00 5,937,750.00 102.375000 B MERRILL LYNCH PIERCE FENNER SM ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,800,000.00 U S TREASURY NOTES 18-JUN-1998 -80,819.67 -80,819.67 102.375000 912827E54 06.375% 09/30/2001 DO 09/30/96 19-JUN-1998 0.00 0.00 102.375000 IB ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,800,000.00 U S TREASURY NOTES is-JUN-1998 -6,018,569.67 -6,018,569.67 102.375000 912627854 06.375% 09/30/2001 DO 09/30/96 19-JUN-1998 -6,019,569.67 0.00 102.375000 PC MERRILL LYNCH PIERCE FENNER SM 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 15,700,000.00 U S TREASURY NOTES 18-JUN-1998 -16,072,875.00 -16,072,875.00 102.375000 912827E54 06.375% 09/30/2001 DO 09/30/96 19-JUN-1998 16,072,875.00 16,072,875.00 102.375000 B MERRILL LYNCH PIERCE FENNER SM ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 15,700,000.00 U S TREASURY NOTES 18-JUN-1990 -218,770.49 -218,770.49 102.375000 912827E54 06.375% 09/30/2001 DO 09/30/96 19-JUN-1998 0.00 0.00 102.375000 IB ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 15,700,000.00 U S TREASURY NOTES 18-JUN-1998 -16,291,645.49 -16,291,645.49 102.375000 912827E54 06.3751 09/30/2001 DO 09/30/96 19-JUN-1998 -16,291,645.49 0.00 102.375000 PC MERRILL LYNCH PIERCE FENNER SM 19-JUN-1998 0.00 0.00 1.000000000 0.00 Page 13 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LASS CURB GAIN LASS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PIMCO 4,000,000.00 U S TREASURY NOTES 17-JUN-1998 -4,081,496.00 -4,097,496.00 1D2.187400 9128272L5 06.250% 02/28/2002 DO 02/28/97 17-JUL-1998 4,087,496.00 4,087,496.00 102.187400 B BANK OF NEW YORK TORONTO DOMIN ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,000,000.00 U S TREASURY NOTES 17-JUN-1998 -94,429.34 -94,429.34 102.187400 9128272LS 06.250% 02/28/2002 DO 02/28/97 17-JUL-1998 0.00 0.00 102.187400 IB ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 17,200,000.00 U S TREASURY NOTES 30-APR-1998 -17,694,915.34 -17,694,915.34 102.664300 9128272WI 06.500% 05/31/2002 DO 06/02/97 12-JUN-1998 -17,694,915.34 0.00 102.664300 EC CARROLL MC ENTEE 6 MCGINLEY, N 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,500,000.00 COMMIT TO FUR FHLMC O1-MAY-1998 -5,451,875.00 -5,451,875.00 99.125000 999ACK061 6.500% 06/15/2028 10-JUN-1998 -5,451,875.00 0.00 99.125000 FC FREDDIE MAC SECURITIES SALES 6 10-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 5,500,000.00 COMMIT TO PUR FHLMC 29-MAY-1998 -5,463,906.25 5,463,906.25 99.343750 999ACH760 6.5001 08/15/2020 13-AUG-1998 5,463,906.25 5,463,906.25 99.343750 B FREDDIE MAC SECURITIES SALES 6 ----------- 0.00 0.00 1.000000000 0.00 PAY UPS U.S. DOLLAR FIXED INCOME SECURITIES LONG TERM OPER-PIMCO 19,000.00 US TREASURY INFLATION INDEX NT 15-JAN-1998 -19,000.00 -19,000.00 100.000000 9128272M3 3.375% 01/15/2007 DO O1/15/91 15-JAN-1998 19,000.00 19,000.00 100.000000 PU ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 19,000.00 US TREASURY INFLATION INDEX NT 15-JAN-1998 -19,000.00 -19,000.00 100.000000 9128272M3 3.375% 01/15/2007 DD O1/15/97 15-JAN-1998 -19,000.00 0.00 100.000000 PC 01-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 18,900.00 US TREASURY INFLATION INDEX NT 15-JAM-1998 -19,900.00 -18,900.00 100.000000 9128272M3 3.375% 01/15/2007 DO O1/15/97 15-JAN-1998 18,900.00 18,900.00 100.000000 Page 14 OCSG000100 MELLON TRUST - CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TH100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ PU - ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 18,900.00 US TREASURY INFLATION INDEX NT 15-JAN-1998 -18,900.00 -19,900.00 100.000000 9128272M3 3.375% 01/15/2007 DO O1/15/97 15-JAN-1998 -18,900.00 0.00 100.000000 PC 30-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 13,160.00 US TREASURY INFLATION INDEX NT 15-JAN-1998 -13,160.00 -13,160.00 100.000000 9128273AS 3.625% 07/15/2002 DO 07/15/97 15-JAN-1998 13,160.00 13,160.00 100.000000 PU ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 13,160.00 US TREASURY INFLATION INDEX NT 15-JAN-1998 -13,160.00 -13,160.00 100.000000 9128273A8 3.625% 07/15/2002 DO 07/15/97 15-JAN-1998 -13,160.00 0.00 100.000000 PC O1-JUN-1990 0.00 0.00 1.000000000 0.00 SALES U.S. DOLLAR CASH 6 CASH EQUIVALENTS LONG TERM OPER-PIMCO -100,000.00 DO PONT DE NEMOUR DISC 12-JUN-1998 99,357.17 99,357.17 99.357170 26354BGE6 07/14/1998 12-JUN-1998 -99,357.17 99,357.17 99.357170 S GOLDMAN SACHS 6 CO, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 DO PONT DE HEMOUR DISC 12-JUN-1998 149.50 149.50 99.357170 263549GE6 07/14/1998 12-JUN-1998 0.00 0.00 99.357170 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 DO PONT DE NEMOUR DISC 12-JUN-1998 99,506.67 99,506.67 99.357170 26354BGE6 07/14/1998 12-JUN-1998 99,506.67 0.00 99.357270 PC GOLDMAN SACHS 6 CO, NY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 FORD NTR CR CO DISC 12-JUN-1998 99,340.67 99,340.67 99.340670 34539UG30 07/03/1998 12-JUN-1998 -99,340.67 -99,340.67 99.340670 S CITISANK/CP/IBA, NEW YORK ----------- 0.00 0.00 1.000000000 0.00 Page 15 OCSG0O0100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PINCO -100,000.00 FORD MTR CR CO DISC 12-JUN-1998 339,66 339.66 99.340670 34539UG30 07/03/1998 12-JUN-1998 0.00 0.00 99.340670 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 FORD MTR CR CO DISC 12-JUN-1998 99,680.33 99,680.33 99.340670 34539UG30 07/03/1998 12-JUN-1998 99,680.33 0.00 99.340610 PC CITIBANK/CP/IPA, NEW YORK 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -300,000.00 GENERAL MTRS CORP DISC 12-JUN-1998 298,797.50 298,797.50 99.599166 3704H3FQ7 06/24/1998 12-JUN-1998 -298,797.50 -298,797.50 99.599166 S GOLDMAN SACHS 6 CO, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -300,000.00 GENERAL MTRS CORP DISC 12-JUN-1998 646.50 646.50 99.599166 3704H3FQ7 06/24/1998 12-JUN-1998 0.00 0.00 99.599166 Is ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -300,000.00 GENERAL MTRS CORP DISC 12-JUN-1998 299,444.00 299,444.00 99.599165 3704H3FQ7 06/24/1999 12-JUN-199B 299,444.00 0.00 99.599166 PC GOLDMAN SACHS 6 CO, NY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 GMAC DISC 12-JUN-1998 99,479.61 99,479.61 99.479620 37042EFGI 06/16/1998 12-JUN-1998 -99,479.61 -99,479.61 99.479610 S MERRILL LYNCH PIERCE FENNER SM ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 GMAC DISC 12-JUN-1998 458.39 450.39 99.479610 37042EFG1 06/16/1998 12-JUN-1998 0.00 0.00 99.479610 Is ----------- 0.00 D.DO 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 GMAC DISC 12-JUN-1999 99,938.00 99,938.00 99.479610 37042EFG1 06/16/1998 12-JUN-1998 99,938.00 0.00 99.479610 PC MERRILL LYNCH GOVT SECS/HONEY 12-JUN-1998 0.00 0.00 1.000000000 0.00 Page 16 OCSG000100 MELLON TRUST - CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PIMCO -200,000.00 IBM DISC 12-JUN-1998 198,928.61 198,928.61 99.464305 45920EFK2 06/19/1998 12-JUN-1998 -198,928.61 -198,928.61 99.464305 S MERRILL LYNCH PIERCE FENNER SM ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -200.000.00 IBM DISC 12-JUN-1998 854.39 854.39 99.464305 45920EFK2 06/19/199B 12-JUN-1998 0.00 0.00 99.464305 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -200,000.00 IBM DISC 12-JUN-1998 199,783.00 199,783.00 99.464305 45920EFK2 06/19/1998 12-JUN-1998 199,783.00 0.00 99.464305 FC MERRILL LYNCH GOVT SECS/MONEY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PINCO -200,000.00 MOTOROLA INC DISC 12-JUN-1998 199,112.28 199,112.28 99.556140 6200OBFJI 06/18/1998 12-JUN-1998 -199,112.28 -199,112.2E 99.556140 S MERRILL LYNCH PIERCE FENNER SM ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PINCO -200,000.00 MOTOROLA INC DISC 12-JUN-1998 701.72 701.72 99.556140 6200813FJ1 06/18/1998 12-JUN-1998 0.00 0.00 99.556140 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -200,000.00 MOTOROLA INC DISC 12-JUN-1998 299,814.00 199,914.00 99.556140 62008BFJ1 06/18/1998 12-JUN-1998 199,814.00 0.00 99.556140 PC MERRILL LYNCH GOVT SECS/MONEY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -2,400,000.00 SOUTHNSTN PUB SVC DISC 12-JUN-1998 2,380,898.67 2,380,898.67 99.204111 84574SGA0 07/10/1998 12-JUN-1998 -2,380,898.67 -2,380,898.67 99.204111 S GOLDMAN SACHS 4 CO, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -2,400,000.00 SOUTHNSTN PUB SVC DISC 12-JUN-1998 8,741.33 8,741.33 99.204111 84574SGA0 07/10/1998 12-JUN-1998 0.00 0.00 99.204111 IS ----------- 0,00 0.00 1.000000000 Page 17 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE %RATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 0.00 LONG TERM OPER-PIMCO -2,400,000.00 SOUTHNSTN PUB SVC DISC 12-JUN-1998 2,389,640.00 2,399,640.00 99.204111 84574SGA0 07/10/1998 12-JUN-1998 2,389,640.00 0.00 99.204111 PC GOLDMAN SACHS 6 CO, NY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -300,000.00 SOUTHNSTN PUB SVC DISC 12-JUN-1998 297,433.33 297,433.33 99.144443 84574SGH5 07/17/1998 12-JUN-1998 -297,433.33 -297,433.33 99.144443 S GOLDMAN SACHS 4 CO, NY ----------- 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO -300,000.00 SOUTHNSTN PUB SVC DISC 12-JUN-1998 947.92 947.92 99.144443 84574SGH5 07/17/1998 12-JUN-1998 0.00 0.00 99.144443 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -300,000.00 SOUTHNSTN PUB SVC DISC 12-JUN-1998 298,381.25 298,301.25 99.144443 84574SGH5 07/17/1998 12-JUN-1998 298,381.25 0.00 99.144443 PC GOLDMAN SACHS 6 CO, NY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,000,000.00 GOLDMAN SACHS LP REPO 18-JUN-1998 1,000,000.00 1,000,000.00 100.000000 99350G070 05.600% 06/19/1996 DO 06/17/98 18-JUN-1998 -11000,000.00 -1,000,000.00 100.000000 S GOLDMAN SACHS 6 00, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -2,000,000.00 GOLDMAN SACHS LP REPO 18-JUN-1998 155.56 155.56 100.000000 99350G078 05.600% 06/20/1998 DD 06/17/98 18-JUN-1998 0.00 0.00 100.000000 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,000,000.00 GOLDMAN SACHS LP REPO 18-JUN-1998 1,000,155.56 1,000,155.56 100.000000 99350G078 05.6001 06/18/1998 DO O6/17/98 10-JUN-1998 1,000,155.56 0.00 100.000000 FC GOLDMAN SACHS 4 CO, NY 18-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PINCO -10,000,000.00 LEHMAN BROTHERS REPO 22-JUN-1999 10,000,000.00 10,000,000.00 100.000000 99350J312 05.460% 06/22/1998 DO O6/19/98 22-JUN-1998 -10,000,000.00 -10,000,000.00 100.000000 Page 1e OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ S LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -10,000,000.00 LEHMAN BROTHERS REPO 22-JUN-1998 4,500.00 4,500.00 100.000000 9935OJ312 05.400% 06/22/1999 DO 06/19/98 22-JUN-1998 0.00 0.00 100.000000 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -10,000,000.00 LEHMAN BROTHERS REPO 22-JUN-1998 10,004,500.00 10,004,500.00 100.000000 9935OJ312 05.400% 06/22/1998 DO 06/19/98 22-JUN-1998 10,004,500.00 0.00 100.000000 PC LEHMAN GOVT SECS INC, NY 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -3,900,000.00 LEHMAN BROTHERS REPO 23-JUN-1998 3,900,000.00 3,900,000.00 100.000000 99350K376 05.450% 06/23/1998 DO 06/22/98 23-JUN-1998 -3,900,000.00 -3,900,000.00 100.000000 S LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -3,900,000.00 LEHMAN BROTHERS REPO 23-JUN-1998 590.42 590.42 100.000000 9935OK376 05.450% 06/23/1998 DO 06/22/98 23-JUN-1998 0.00 0.00 100.000000 Is ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -3,900,000.00 LEHMAN BROTHERS REPO 23-JUN-1998 3,900,590.42 3,900,590.42 100.000000 9935OK376 05.450% 06/23/1998 DO 06/22/98 23-JUN-1998 3,900,590.42 0.00 100.000000 PC LEHMAN GOVT SECS INC, NY 23-JUN-1998 0.00 0.00 1.00000000D 0.00 LONG TERM OPER-PIMCO -4,500,000.00 LEHMAN BROTHERS REPO 24-JUN-1998 4,500,000.00 4,500,000.00 100.000000 9935OL119 05.300% 06/24/1998 DO 06/23/98 24-JUN-1998 -4,500,000.00 -4,500,000.00 100.000000 S LEHMAN GOVT SECS INC, NY ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,500,000.00 LEHMAN BROTHERS REPO 24-JUN-1998 662.50 662.50 100.000000 9935OL119 05.300% 06/24/1998 DD 06/23/98 24-JUN-1998 0.00 0.00 100.000000 Is ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,500,000.00 LEHMAN BROTHERS REPO 24-JUN-1998 4,500,662.50 4,500,662.50 100.000000 Page 19 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE %RATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 99350L119 05.300% 06/24/1998 DO 06/23/98 24-JUN-1998 4,500,662.50 0.00 100.000000 PC LEHMAN GOVT SECS INC, NY 24-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO ' -599,412.58 DREYFUS TREASURY CASH MGMT 23-JUN-1998 599,412.58 599,412.58 1.000000 996085247 23-JUN-1998 -599,412.58 -599,412.59 1.000000 S ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -599,412.58 DREYFUS TREASURY CASH MGMT 23-JUN-1998 599,412.58 599,412.58 1.000000 996085247 23-JUN-1998 599,412.58 0.00 1.000000 PC 23-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -393,282.50 DREYFUS TREASURY CASH MGMT 24-JUN-1998 393,292.50 393,292.50 1.000000 996085247 24-JUN-1998 -393,282.50 -393,282.50 1.000000 S ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -393,292.50 DREYFUS TREASURY CASH MGMT 24-JUN-1998 393,292.50 393,282.50 1.000000 996085247 24-JUN-1998 393,282.50 0.00 1.000000 PC 24-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -9.00 DREYFUS TREASURY CASH MGMT 29-JUN-1990 9.00 9.00 1.000000 996085247 29-JUN-1998 -9.00 -9.00 1.000000 S ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -9.00 DREYFUS TREASURY CASH MGMT 29-JUN-1998 9.00 9.00 1.000000 996085247 29-JUN-1998 9.00 0.00 1.000000 PC 29-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -203,562.75 DREYFUS TREASURY CASH MGMT 30-JUN-2998 203,582.75 203,582.75 1.000000 996005247 30-JUN-1998 -203,582.75 -203,582.75 1.000000 S ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO Page 20 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SNARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ -203,502.75 DREYFUS TREASURY CASH NOW 30-JUN-1999 203,582.75 203,582.75 1.000000 996085247 30-JUN-1998 203,582.75 0.00 1.000000 PC 30-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -50,797.06 BSDT-LATE MONEY DEP ACCT 02-JUN-1998 50,797.06 50,797.06 1.000000 996087094 VAR RT DO 06/26/1997 02-JUN-1998 -50,797.06 -50,797.06 1.000000 S 02-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -241,465.94 BSDT-LATE MONEY DEP ACCT 16-JUN-1998 241,465.94 241,465.94 1.000000 996087094 VAR RT DO O6/26/1997 16-JUN-1998 -241,465.94 -241,465.94 1.000000 S 16-JUN-1999 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -15,779.51 BSDT-LATE MONEY DEP ACCT 18-JUN-1998 15,779.51 15,779.51 1.000000 996087094 VAR RT DO 06/26/1997 18-JUN-1998 -15,779.51 -15,779.51 1.000000 S 18-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -10,833.34 BSDT-LATE MONEY DEP ACCT 26-JUN-1998 10,833.34 10,833.34 1.000000 996087094 VAR RT DO O6/26/1997 26-JUN-1998 -10,833.34 10,833.34 1.000000 S 26-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -399,449.00 BSDT RESERVE DEPOSIT ACCOUNT- 03-JUN-1998 399,449.00 399,449.00 1.000000 999495906 PUBLIC II 03-JUN-1998 -399,449.00 -399,449.00 1.000000 S 03-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,000,000.00 BRUT RESERVE DEPOSIT ACCOUNT- 17-JUN-1998 1,000,000.00 1,000,000.00 1.000000 999495906 PUBLIC II 17-JUN-1998 -11000,000.00 -1,000,000.00 1.000000 S 17-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO -130,826.00 BSDT RESERVE DEPOSIT ACCOUNT- 19-JUN-1998 130,826.00 130,826.00 1.000000 999495906 PUBLIC IL 19-JUN-1998 -130,826.00 -130,026.00 1.000000 S 19-JUN-1998 0.00 0.00 1.000000000 0.00 Page 21 OCSG000300 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-199B TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LASS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LANG TERM OPER-PIMCO -1,006,477.00 SHUT RESERVE DEPOSIT ACCOUNT- 19-JUN-1998 1,006,477.00 1,006,477.00 1.000000 999495906 PUBLIC II 19-JUN-1998 -1,006,477.00 -1,006,477.00 1.000000 S 19-JUN-1998 0.00 0.00 1.000000000 0.00 U.S. DOLLAR FIXED INCOME SECURITIES LONG TERM OPER-PIMCO -2,000,000.00 U S TREASURY BONDS 18-JUN-1998 2,671,250.00 2,671;250.00 133.562500 912910DY1 08.750% 05/15/2017 DO 05/15/87 19-JUN-1998 -2,663,639.50 -2,663,639.50 133.562500 S MERRILL LYNCH PIERCE FENNER SM ----------- 7,610.50 7,610.50 1.000000000 0.00 LONG TEAM OPER-PIMCO -2,000,000.00 U S TREASURY BONDS 18-JUN-1998 16,644.02 16,644.02 133.562500 91291ODY1 08.750% 05/15/2017 DO 05/15/87 19-JUN-1998 0.00 0.00 133.562500 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -2,000,000.00 U S TREASURY BONDS 18-JUN-1998 2,687,894.02 2,687,894.02 133.562500 91281ODY1 08.750% 05/15/2017 DO 05/15/87 19-JUN-1998 2,6B7,894.02 0.00 133.562500 PC MERRILL LYNCH PIERCE FENNER SM 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -50,000,000.00 U S TREASURY NOTES 11-JUN-1998 50,796,875.00 50,796,875.00 101.593750 912827R20 06.875% 08/31/1999 DO 08/31/94 12-JUN-1998 -50,798,919.46 -50,798,919.46 101.593750 S BANK OF NEW YORK TORONTO DOMIN ----------- -2,044.46 -2,044.46 1.000000000 0.00 LONG TERM OPER-PIMCO -50,000,000.00 U S TREASURY NOTES 11-JUN-1998 971,467.39 971,467.39 101.593750 912827R20 06.875% 00/31/1999 DO 08/31/94 12-JUN-1998 0.00 0.00 101.593750 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -50,000,000.00 U S TREASURY NOTES 11-JUN-1998 51,768,342.39 51,768,342.39 101.593750 912827R20 06.875% 08/31/1999 DO 08/31/94 12-JUN-1998 51,768,342.39 0.00 101.593750 PC BANK OF NEW YORK TORONTO DOMIN 12-JUN-1999 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,300,000.00 U S TREASURY NOTES 11-JUN-1998 1,320,718.75 1,320,718.75 101.593750 912827R20 06.875% 08/31/1999 DO 08/31/94 12-JUN-1998 -1,320,771.91 -1,320,771.91 101.593750 S BANK OF NEW YORK TORONTO DOMIN ----------- -53.16 -53.16 1.000000000 Page 22 OCSG000100 MELLON TRUST CSDDC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BABE BASE: USD O1-JUN-1990 - 30-JUN-1990 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 0.00 TANG TERM OPER-PIMCO -1,300,000.00 U S TREASURY NOTES 11-JUN-1998 25,258.15 25,250.15 101.593150 912827R20 06.875% OB/31/1999 DO O8/31/94 12-JUN-1998 0.00 0.00 101.593750 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,300,000.00 U S TREASURY NOTES 11-JUN-1998 1,345,976.90 1,345,916.90 101.593750 912827R20 06.875% 08/31/1999 DO 08/31/94 12-JUN-1998 1,345,976.90 0.00 101.593750 FC BANK OF NEW YORK TORONTO DOMIN 12-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,500,000.00 U S TREASURY NOTES 15-JUN-1998 1,524,843.75 1,524,843.75 101.656250 912827R20 06.875% 08/31/1999 DO 08/31/94 16-JUN-1998 -1,523,967.58 -1,523,967.58 101.656250 S HSBC SECURITIES INC, NEW YORK ----------- 876.17 876.11 1.000000000 0.00 LONG TERM OPER-PIMCO -11500,000.00 U S TREASURY NOTES 15-JUN-1998 30,264.95 30,264.95 101.656250 912827R20 06.875% 08/31/1999 DO 08/31/94 16-JUN-2998 0.00 0.00 102.656250 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -1,500,000.00 U S TREASURY NOTES 15-JUN-1998 1,555,108.70 1,555,108.10 101.656250 912827R20 06.875% 08/31/1999 DO 08/31/94 16-JUN-1998 1,555,108.10 0.00 101.656250 PC HSBC SECURITIES INC, NEW YORK 16-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,000,000.00 U S TREASURY NOTES 17-JUN-1998 4,088,750.00 4,080,750.00 102.218150 9128272L5 06.250% 02/28/2002 DO 02/28/97 18-JUN-1998 -3,995,625.00 -3,995,625.00 102.218750 S BANK OF NEW YORK TORONTO DOMIN ----------- 93,125.00 93,125.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,000,000.00 U S TREASURY NOTES 17-JUN-1990 74,728.26 74,728.26 102.218750 9129272L5 06.2501 02/28/2002 DD 02/28/97 18-JUN-1998 0.00 0.00 102.218750 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,000,000.00 U S TREASURY NOTES 17-JUN-1998 4,163,478.26 4,163,478.26 102.210750 9128272L5 06.2501 02/28/2002 DO 02/28/97 18-JUN-1998 4,163,478.26 0.00 102.218750 Page 23 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ PC BANK OF NEW YORK TORONTO DOMIN 18-JUN-1998 0.00 0.00 1.000OOOD00 0.00 LONG TERM OPER-PIMCO -16,000,000.00 U S TREASURY NOTES 18-JUN-1998 16,011,250.00 16,011,250.00 100.070312 9128273K6 05.625% 10/31/1999 DO 10/31/97 19-JUN-1998 -15,982,500.00 -15,982,500.00 100.070312 S MERRILL LYNCH PIERCE FENNER 3M ----------- 28,750.00 29,750.00 1.000000000 0.00 LONG TERM OPER-PIMCO -16,000,000.00 U S TREASURY NOTES 19-JUN-1998 122,282.61 122,292.61 100.070312 9128273K6 05.625% 10/31/1999 DO 10/31/97 19-JUN-1998 0.00 0.00 100.070312 IS ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -16,000,000.00 U S TREASURY NOTES 18-JUN-1998 16,133,532.61 16,133,532.61 100.070312 9128273K6 05.625% 10/31/1999 DD 10/31/97 19-JUN-1998 16,133,532.61 0.00 100.070312 FC MERRILL LYNCH PIERCE FENNER SM 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -6,000,000.00 U S TREASURY NOTES 18-JUN-1998 6,006,562.50 6,006,562.50 100.109375 9128273RI 05.625% 12/31/1999 DO 12/31/97 19-JUN-1998 -6,002,612.41 -6,002,612.41 100.109375 S MERRILL LYNCH PIERCE FENNER SM ----------- 3,950.09 3,950.09 1.000000000 0.00 LONG TERM OPER-PIMCO -6,000,000.00 U S TREASURY NOTES 18-JUN-1998 158,494.40 158,494.48 100.109375 9128273RI 05.625% 12/31/1999 DD 12/31/97 19-JUN-1998 0.00 0.00 100.109375 1S ----------- 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -6,000,000.00 U S TREASURY NOTES 18-JUN-1998 6,165,056.98 6,265,056.98 100.109375 9128273R1 05.625% 12/31/1999 DO 12/31/97 19-JUN-1998 6,165,056.98 0.00 100.109375 PC MERRILL LYNCH PIERCE FENNER SM 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -5,500,000.00 COMMIT TO PUR FHLMC 29-MAY-1998 5,473,574.22 5,473,574.22 99.519531 999ACK061 6.500% 06/15/2020 10-JUN-1990 -5,451,875.00 -5,451,875.00 99.519531 S FREDDIE MAC SECURITIES SALES 4 ----------- 21,699.22 21,699.22 1.000000000 0.00 LONG TERM OPER-PIMCO -5,500,000.00 COMMIT TO FUR FHLMC 29-MAY-1998 5,473,574.22 5,473,574.22 99.519531 Page 24 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM10D BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 999ACK061 6.500% 06/15/2028 10-JUN-1998 5,473,574.22 0.00 99.519531 FC FREDDIE MAC SECURITIES SALES 4 10-JUN-1998 0.00 0.00 1.000000000 0.00 PRINCIPAL PAYMENTS U.S. DOLLAR FIXED INCOME SECURITIES LONG TERM OPER-PIMCO -226,176.19 CHASE MANHATTAN GRAN 95-B CL A 15-JUN-1998 226,176.79 226,176.79 100.000000 161614AE2 5.900% 11/15/2001 DO 11/15/95 15-JUN-1998 -225,708.53 -225,708.53 100.000000 PD ----------- 468.26 468.26 1.000000000 0.00 LONG TERM OPER-PIMCO -226,176.79 CHASE MANHATTAN GRAN 95-B CL A 15-JUN-1998 226,176.79 226,176.79 100.000000 161614AE2 5.9001 11/15/2001 DO 11/15/95 15-JUN-1990 226,176.79 0.00 100.000000 PC 15-JUN-1990 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -448,249.03 CONTIMORTGAGE HOME SO 96-4 A3 01-JUN-199S 448,249.03 448,249.03 100.000000 21075WDKO 6.190% 10/15/2011 DO 11/23/96 01-JUN-1998 -447,285.99 -447,285.99 100.000000 PD ----------- 963.04 963.04 1.000000000 0.00 LONG TERM OPER-PIMCO -448,249.03 CONTIMORTGAGE HOME SO 96-4 A3 O1-,TUN-1998 448,249.03 449,249.03 100.000000 21075NDKS 6.1901 10/15/2011 DO 11/23/96 O1-,TUN-1998 449,249.03 0.00 100.000000 FC 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -327,054.65 FHLMC GROUP 4G5-0476 01-JUN-1999 327,054.65 327,054.65 100.000000 3128DDOSS 7.000% 02/01/2003 DO 02/01/98 01-JUN-1998 -332,164.88 -332,164.88 100.000000 PD ----------- -5,110.23 -5,110.23 1.000000000 0.00 LONG TERM OPER-PIMCO -327,054.65 FHLMC GROUP 4G5-0476 01-JUN-1998 327,054.65 327,054.65 100.000000 3128DDOSS 7.000% 02/01/2003 DO 02/01/98 01-JUN-1998 327,054.65 0.00 100.000000 FC 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 82,380.50 FHLMC MULTICLASS CTF E3 A 01-MAY-1998 -82,380.50 -82,380.50 100.000000 3133TCE95 6.324% 08/15/2032 01-MAY-1998 02,470.60 82,470.60 100.000000 PDC ----------- 90.10 90.10 1.000000000 0.00 Page 25 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TMIOO BASE AMOUNT/ SNARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE KRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PIMCO -82,380.50 FHLMC MULTICLASS CTF E3 A 01-MAY-1998 82,380.50 82,380.50 100.000000 31337CE95 6.324% 08/15/2032 01-MAY-1998 -82,470.60 -82,470.60 100.000000 PD ----------- -90.10 -90.10 1.000000000 0.00 LONG TERM OPER-PIMCO 62,380.50 FHLMC MULTICLASS CTF E3 A 01-MAY-1998 -82,380.50 -82,380.50 100.000000 3133TCE95 6.3241 08/15/2032 01-MAY-1998 82,470.60 02,470.60 100.000000 PDC ----------- 90.10 90.10 1.000000000 0.00 LONG TERM OPER-PIMCO -81,755.95 FHLMC MULTICLASS CTF E3 A 01-MAY-1998 81,755.95 81,755.95 100.000000 3133TCE95 6.324% 08/15/2032 01-MAY-1998 -81,845.37 -81,845.37 100.000000 PD ----------- -89.42 -89.42 1.000000000 0.00 LONG TERM OPER-PIMCO -81,755.95 FHLMC MULTICLASS CTF E3 A 01-MAY-1996 81,755.95 81,755.95 100.000000 3133TCE95 6.324% 08/15/2032 01-MAY-1996 81,755.95 0.00 100.000000 PC 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -82,972.50 FHLMC MULTICLASS CTF E3 A 01-JUN-1998 82,972.50 82,972.50 100.000000 3133TCE95 6.324% 08/15/2032 01-JUN-1998 -83,063.25 -83,063.25 100.000000 PD ----------- -90.75 -90.75 1.000000000 0.00 LONG TERM OPER-PIMCO -9,990.33 FNMA POOL #0065581 01-JUN-1998 9,990.33 9,990.33 100.000000 31362M2N7 6.391% 09/01/2028 DD 09/01/88 01-JUN-1998 -10,062.14 -10,062.14 100.000000 PD ----------- -71.81 -71.81 1.000000000 0.00 LONG TERM OPER-PIMCO -9,990.33 FNKA POOL #0065581 01-JUN-1999 9,990.33 9,990.33 100.000000 31362M2N7 6.391% 00/01/2028 DD 09/01/88 01-JUN-1998 9,990.33 0.00 100.000000 PC 25-JUN-1999 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -6,092.97 FNMA POOL #0238575 01-JUN-1998 6,092.97 6,092.97 100.000000 3137006LO 6.1991 03/01/2033 DD 09/01/93 01-JUN-1998 -6,136.76 -6,136.76 100.000000 PO ----------- -43.79 -43.79 1.000000000 Page 26 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1999 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 0.00 TANG TERM OPER-PIMCO -6,092.97 FNMA POOL #0238575 01-JUN-1996 6,092.97 6,092.91 100.000000 3137000LS 6.1991 03/01/2033 DO 09/01/93 01-JUN-1998 6,092.97 0.00 100.000000 FC 25-JUN-1998 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO -15,815.76 FMMA POOL #0313371 01-JUN-1998 15,815.76 15,815.76 100.000000 31374GCGO 6.194% 08/01/2029 DO 01/01/97 01-JUN-1998 -15,929.44 -15,929.44 100.000000 PD ----------- -113.68 -113.68 1.000000000 0.00 LONG TERM OPER-PIMCO -15,815.76 FNMA POOL #0313371 O1-JUN-1998 15,815.76 15,815.76 100.000000 31374GCGO 6.194% 08/01/2029 DO 01/01/97 O1-JUN-1998 15,815.76 0.00 100.000000 PC 25-JUN-1999 0.00 0.00 1.DDOOD0000 0.00 LONG TERM OPER-PIMCO -16,383.51 FNMA POOL #0313600 01-JUN-1998 16,383.51 16,383.51 100.000000 31374GKM8 6.221% 05/01/2036 DO 06/01/97 01-JUN-1998 -16,501.27 -16,501.27 100.000000 PD ----------- -117.76 -117.76 1.000000000 0.00 LONG TERM OPER-PIMCO -16,383.51 FNMA POOL #0313600 O1-,TUN-1998 16,383.51 16,383.51 100.000000 31374GKMO 6.221% 05/01/2036 DO 06/01/97 01-JUN-1999 16,383.51 0.00 100.000000 PC 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -4,828.99 FNMA POOL #0313769 01-JUN-1998 4,828.99 4,828.99 100.000000 31374GONO 6.206% 05/01/2036 DO 09/01/97 01-JUN-1998 -4,863.70 -4,963.70 100.000000 PD ----------- -34.71 -34.71 1.000000000 0.00 LONG TERM OPER-PIMCO 4,828.99 FNMA POOL 00313769 01-JUN-1998 -4,828.99 -4,028.99 100.000000 31374GONO 6.206% 05/01/2036 DO 09/01/97 01-JUN-1998 4,863.70 4,863.70 300.000000 PDC ----------- 34.71 34.71 1.000000000 0.00 LONG TERM OPER-PINCO -4,828.99 FNMA POOL #0313769 01-JUN-1990 4,828.99 4,828.99 100.000000 31374GQWO 6.206% 05/01/2036 DO 09/01/97 01-JUN-1999 -4,963.70 -4,863.70 100.000000 Page 27 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ SASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE KRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ PD ----------- -34.71 -34.71 1.000000000 0.00 LONG TERM OPER-PIMCO 4,828.99 FNMA POOL #0313769 01-JUN-1998 -4,828.99 -4,828.99 100.000000 31374GQW0 6.206% 05/01/2036 DO 09/01/97 01-JUN-1998 4,863.70 4,863.70 100.000000 PDC ----------- 34.71 34.71 1.000000000 0.00 LONG TERM OPER-PIMCO -4,828.99 FNMA POOL #0313769 01-JUN-1998 4,828.99 4,828.99 100.000000 31374GQW0 6.206% 05/01/2036 DD 09/01/97 01-JUN-1998 -4,863.70 -4,863.70 100.000000 PD ----------- -34.71 -34.71 1.000000000 0.00 LONG TERM OPER-PIMCO 4,828.99 FNMA POOL 40313769 01-JUN-1998 -4,828.99 -4,828.99 100.000000 31374GQW0 6.206% 05/01/2036 DO 09/01/97 01-JUN-1998 4,863.70 4,063.70 100.000000 PDC ----------- 34.71 34.71 1.000000000 0.00 LONG TERM OPER-PIMCO -4,828.99 FNMA POOL #0313769 O1-JUN-1998 4,828.99 4,828.99 100.000000 31374GQWO 6.206% 05/01/2036 DO 09/01/97 O1-,TUN-1998 -4,863.70 -4,863.70 100.000000 PC ----------- -34.71 -34.71 1.000000000 0.00 LONG TERM OPER-PIMCO -4,828.99 FNMA POOL 60313769 O1-,TUN-1998 4,828.99 4,828.99 100.000000 31374G0W0 6.2061 05/01/2036 DO 09/01/97 01-JUN-1998 4,828.99 0.00 100.000000 FC 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -16,778.38 FNMA POOL #0313783 O1-JUN-1998 16,778.38 16,778.38 100.000000 31374GRC3 6.142% 05/01/2036 DO 10/01/97 01-JUN-1998 -16,898.97 -16,898.97 100.000000 - PD ----------- -120.59 -120.59 1.000000000 0.00 LONG TERM OPER-PIMCO -16,778.38 FNMA POOL #0313783 01-JUN-1998 16,778.38 16,778.38 100.000000 31374GRC3 6.142% 05/01/2036 DO 10/01/97 01-JUN-1998 16,778.38 0.00 100.000000 PC 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -9,185.55 FNMA POOL #0339016 01-JUN-1998 9,185.55 9,185.55 100.000000 Page 28 1 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER CONI, DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 31375MSD6 6.207% 11/01/2035 DO 03/01/96 01-JUN-1998 -9,251.57 -9,251.57 100.000000 PD ----------- -66.02 -66.02 1.000000000 0.00 LONG TERM OPER-PIMCO 9,185.55 FNMA POOL #0339016 01-JUN-1998 -9,185.55 -9,185.55 100.000000 31375MSD6 6.207% 11/01/2035 DO 03/01/96 01-JUN-1998 9,251.57 9,251.57 100.000000 PDC ----------- 66.02 66.02 1.000000000 0.00 LONG TERM OPER-PIMCO -9,185.55 FNMA POOL #0339016 01-JUN-1998 9,185.55 91185.55 100.000000 31375MSD6 6.207% 11/01/2035 DO 03/01/96 01-,TUN-1998 -9,251.57 -9,251.57 100.000000 PD ----------- -66.02 -66.02 1.000000000 0.00 LONG TERM OPER-PIMCO 9,185.55 FNMA POOL 40339016 01-JUN-1998 -9,185.55 -9,185.55 100.000000 31375MSD6 6.207% 11/01/2035 DO 03/01/96 01-JUN-1998 9,251.57 9,251.57 100.000000 PDC ----------- 66.02 66.02 1.000000000 0.00 LONG TERM OPER-PIMCO -9,185.55 FNMA POOL #0339016 01-JUN-1998 9,185.55 9,185.55 100.000000 31375MSD6 6.207% 11/01/2035 DD 03/01/96 01-JUN-1998 -9,251.57 -9,251.57 100.000000 PD ----------- -66.02 -66.02 1.000000000 0.00 LONG TERM OPER-PIMCO 9,185.55 FNMA POOL #0339016 01-JUN-1998 -9,185.55 -9,185.55 100.000000 31375MSD6 6.207% 11/01/2035 DO 03/01/96 O1-,TUN-1998 9,251.57 9,251.57 100.000000 PDC ----------- 66.02 66.02 1.000000000 0.00 LONG TERM OPER-PIMCO -9,185.55 FNMA POOL #0339016 01-JUN-1998 9,185.55 9,185.55 100.000000 31375MSD6 6.207% 11/01/2035 DO 03/01/96 01-JUN-1998 -9,251.57 -9,251.57 100.000000 PD ----------- -66.02 -66.02 1.000000000 0.00 LONG TERM OPER-PIMCO -9,185.55 FNMA POOL #0339016 01-JUN-1998 9,185.55 9,185.55 100.000000 31375MSD6 6.207% 12/01/2035 DD 03/01/96 01-JUN-1998 9,185.55 0.00 100.000000 PC 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO Page 29 OCSG000300 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE KRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ -26,459.23 FIFTH THIRD BK AUTO TR 96A CLA 15-JUN-1998 26,459.23 26,459.23 100.000000 31677EAA4 6.200% 09/01/2001 DO 03/15/96 15-JUN-1998 -26,459.23 -26,459.23 100.000000 PD ----------- 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO -26,459.23 FIFTH THIRD BK AUTO TR 96A CLA 15-JUN-1998 26,459.23 26,459.23 100,000000 31677EAA4 6.200% 09/01/2001 DD 03/15/96 15-JUN-1998 26,459.23 0.00 100.000000 PC 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -104,703.92 GNMA II POOL #0008684 01-JUN-1998 104,703.92 104,703.92 100.000000 36202KUH6 7.000% 08/20/2025 DO 08/01/95 01-JUN-1998 -106,454.44 -106,454.44 100.000000 PD ----------- -1,750.52 -1,750.52 1.000000000 0.00 LONG TERM OPER-PIMCO -104,703.92 GNMA II POOL #0008684 01-JUN-1998 104,703.92 104,703.92 100.000000 36202KUH6 7.000% 08/20/2025 DO 08/01/95 01-JUN-1998 104,703.92 0.00 100.000000 PC 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -140,242.55 GNMA II POOL 000B0023 01-JUN-1998 140,242.55 140,242.55 100.000000 36225CAZ9 7.000% 12/20/2026 DD 12/01/96 01-JUN-1998 -142,565.32 -142,565.32 100.000000 PD ----------- -2,322.77 -2,322.77 1.000000000 0.00 LONG TERM OPER-PIMCO -140,242.55 GNMA II POOL #0080023 01-JUN-1998 140,242.55 140,242.55 100.000000 36225CAZ9 7.000% 12/20/2026 DD 12/01/96 01-JUN-1998 140,242.55 0.00 100.000000 PC 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -159,922.99 GNMA II POOL 4080088M 01-JUN-1998 159,922.99 159,922.99 100.000000 36225CC20 7.000% 06/20/2027 DO 06/01/97 01-JUN-1998 -163,421.31 -163,421.31 100.000000 PD ----------- -3,498.32 -3,498.32 1.000000000 0.00 LONG TERM OPER-PIMCO -159,922.99 GNMA II POOL 4080088M 01-JUN-1998 159,922.99 159,922.99 100.000000 36225CC20 7.000% 06/20/2027 DO 06/01/97 01-JUN-1998 159,922.99 0.00 100.000000 FC 22-JUN-1998 0.00 0.00 1.000000000 0.00 Page 30 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ MATURITIES U.S. DOLLAR CASH 6 CASH EQUIVALENTS LONG TERM OPER-PIMCO -13,500,000.00 BANKERS TRUST CO INSTL C/D 19-JUN-1998 13,500,000.00 13,500,000.00 100.000000 0663JOKU7 05.950% 06/19/1998 DO O6/19/97 19-JUN-1998 -13,494,275.00 -13,494,275.00 100.000000 MT BOND MATURITY 19-JUN-1998 5,725.00 5,725.00 1.000000000 0.00 LIQUID OPER-PIMCO -2,400,000.00 FEDERAL HOME IN BK DISC 12-JUN-1998 2,374,900.00 2,374,800.00 100.000000 313385XZ4 HAT O6/12/1998 12-JUN-1998 -2,374,900.00 -2,374,800.00 100.000D00 MT BOND MATURITY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO -2,500,000.00 FED HOME LN MTG CORP DISC NTS 19-JUN-1998 2,479,000.00 2,479,000.00 100.000000 313397YGO HAT O6/19/1998 19-JUN-1998 -2,479,000.00 -2,479,000.00 100.000000 MT BOND MATURITY 19-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO -100,000.00 FEDERAL NATL MTG ASSN DISC 19-JUN-1998 97,214.39 97,214.39 100.000000 313589YG2 MAT O6/19/1998 19-JUN-1998 -97,214.39 -97,214.39 100.000000 MT BOND MATURITY 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -400,000.00 GENERAL ELEC CAP DISC 12-JUN-1999 399,449.00 399,449.00 100.000000 36959JFC2 06/12/1998 12-JUN-1998 -399,449.00 -399,449.00 100.000000 MT BOND MATURITY 12-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO -800,000.00 GMAC DISC 17-JUN-1998 792,436.00 792,436.00 100.000000 37042EFH9 06/17/1998 17-JUN-1998 -792,436.00 -792,436.00 100.000000 MT BOND MATURITY 17-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO -800,000.00 NATIONAL RURAL DISC 25-JUN-1998 792,206.22 792,206.22 100.000000 63743DFR7 06/25/1998 25-JUN-1998 -792,206.22 -792,206.22 100.000000 MT BOND MATURITY 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -100,000.00 SARA LEE CORP D18C 02-JUN-1998 99,892.47 99,992.47 100.000000 80311BF22 06/02/1998 02-JUN-1998 -99,892.47 -99,892.47 100.000000 Page 31 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1990 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ MT BOND MATURITY 02-JUN-1998 0.00 0.00 1.000000000 0.00 INTEREST U.S. DOLLAR LONG TERM OPER-PIMCO 13,500,000.00 BANKERS TRUST CO INSTL C/D 19-JUN-1998 814,406.25 814,406.25 0.000000 0663JOKU7 05.950% 06/19/1998 DO O6/19/97 19-JUN-1998 814,406.25 0.00 0.000000 IT 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 226,176.79 CHASE MANHATTAN GRAN 95-B CL A 15-JUN-1998 15,288.28 15,288.28 0.000000 161614AE2 5.900% 11/15/2001 DD 11/15/95 15-JUN-1998 15,288.28 0.00 0.000000 IT 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 CHRYSLER FIN MTN 20-APR-1998 40.98 40.98 0.000000 171200EBO FLTG RT 08/08/2002 DO 04/08/98 20-APR-1998 40.98 0.00 0.000000 IT 20-APR-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -3,500,000.00 CHRYSLER FIN MTN 20-MAY-1998 -23,668.02 -23,668.02 0.000000 171200ESO FLTG AT 08/08/2002 DO 04/08/98 20-MAY-1998 -23,668.02 0.00 0.000000 ITC 20-MAY-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 CHRYSLER FIN MTN 20-MAY-1998 6,733.02 6,733.02 0.000000 17120QE80 FLTG RT O9/08/2002 DO 04/08/98 20-APR-1998 6,733.02 0.00 0.000000 IT 20-MAY-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 CHRYSLER FIN MTN 20-MAY-1998 16,894.02 16,894.02 0.000000 171200EBO FLTG RT 08/08/2002 DD 04/08/98 20-MAY-1998 16,894.02 0.00 0.000000 IT 20-MAY-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 3,500,000.00 CHRYSLER FIN MTN 17-JUN-1998 15,778.68 15,779.68 0.000000 171200EBO FLTG RT 08/08/2002 DO 04/08/98 20-MAY-1998 15,778.68 0.00 0.000000 IT 17-JUN-1998 0.00 0.00 1.000000000 0.00 Page 32 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1996 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ IRV GAIN LASS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CORA GAIN LASS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PIMCO 448,249.03 CONTIMORTGAGE HOME EQ 96-4 A3 15-JUN-1998 8,915.16 8,975.16 0.000000 21075NDKB 6.1901 10/15/2011 DO 11/23/96 01-JUN-1998 8,975.16 0.00 0.000000 IT 15-JUN-1998 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO 327,054.65 FHLMC GROUP 4G5-0476 15-JUN-1998 104,799.75 104,799.75 0.000000 3128DD055 7.000% 02/01/2003 DD 02/01/98 02-JUN-1998 104,799.75 0.00 0.000000 IT 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 81,755.95 FHLMC MULTICLASS CTF E3 A 15-JUN-1998 25,433.28 25,433.18 0.000000 3133TCE95 6.324% 08/15/2032 01-MAY-1998 25,433.19 0.00 0.000000 IT 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 2,000,000.00 FHLMC MULTICL.ASS CTF T11 A6 25-JUN-1999 10,633.34 10,033.34 0.000000 3133TDPV2 6.5001 09/25/2018 01-JUN-1999 10,633.34 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 2,400,000.00 FEDERAL HOME IN BK DISC 12-JUN-1999 25,200.00 25,200.00 0.000000 313385XE4 MAT 06/12/1998 12-JUN-1998 25,200.00 0.00 0.000000 IT 12-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 2,500,000.00 FED HOME LN MTG CORP DISC NIS 19-JUN-1998 21,000.00 21,000.00 0.000000 313397YGO MAT 06/19/1998 19-JUN-1998 21,000.00 0.00 0.000000 IT 19-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL NATL MTG ASSN DISC 19-JUN-1998 2,705.61 2,785.61 0.000000 313589YG2 MAT 06/19/1998 19-JUN-1998 2,795.61 0.00 0.000000 IT 19-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 9,990.33 FNMA POOL #0065581 25-JUN-1998 2,645.97 2,645.97 0.000000 31362M2N7 6.391% 08/01/2028 DO 09/01/08 01-JUN-1998 2,645.97 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 Pape 33 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD 01-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ LONG TERM OPER-PIMCO 6,092.97 FNMA POOL /0238575 25-JUN-1998 2,266.16 2,266.16 0.000000 3137006LB 6.199% 03/01/2033 OD 09/01/93 01-JUN-1990 2,266.16 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 15,815.76 FNMA POOL #0313371 25-JUN-1998 5,088.75 5,088.75 0.000000 31374GCGO 6.194% 08/01/2029 DO 01/01/97 01-JUN-199B 5,088.75 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 16,383.51 FNMA POOL 10313600 25-JUN-1998 4,942.43 4,942.43 0.000000 31374GKMB 6.221% 05/01/2036 DD 06/01/97 01-JUN-1998 4,942.43 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,828.99 FNMA POOL #0313769 25-JUN-1998 1,212.81 1,212.81 0.000000 31374GOWO 6.206% 05/01/2036 DD 09/01/97 01-JUN-1998 1,212.81 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO - 16,778.38 FNMA POOL 10313783 25-JUN-1998 4,537.65 4,537.65 0.000000 31374GRC3 6.142% 05/01/2036 DD 10/01/97 01-JUN-1998 4,537.65 0.00 0.000000 17 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 9,185.55 FNMA POOL #0339016 25-JUN-1998 3,475.61 3,475.61 0.000000 3137SMSD6 6.207% 11/01/2035 DD 03/01/96 01-JUN-1998 3,475.61 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PINCO 26,459.23 FIFTH THIRD BK AUTO TR 96A CLA 15-JUN-1998 2,156.12 2,156.12 0.000000 31677EAA4 6.200% 09/01/2001 DD 03/15/96 15-JUN-1998 2,156.12 0.00 0.000000 IT 15-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 7,100,000.00 FORD MOTOR CR MTN TR 1 00177 30-JUN-1998 95,564.05 95,564.05 0.000000 345402HJ3 VAR/RT 03/30/1999 DO 03/30/94 30-JUN-1998 95,564.05 0.00 0.000000 IT 30-JUN-1998 0.00 0.00 1.000000000 Page 34 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 0.00 LONG TERM OPER-PIMCO 104,703.92 GNMA II POOL #0008684 22-JUN-1998 11,251.01 11,251.01 0.000000 36202KUH6 7.000% 08/20/2025 DO 08/01/95 01-JUN-1998 11,251.01 0.00 0.000000 IT 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 140,242.55 GNMA II POOL 00080023 22-JUN-1998 19,770.31 19,778.31 0.000000 36225CA89 7.000% 12/20/2026 DO 12/01/96 01-JUN-1998 19,778.31 0.00 0.000000 IT 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 159,922.99 GNMA II POOL 4080088M 22-JUN-1998 29,676.17 29,676.17 0.000000 36225CC20 7.000% 06/20/2027 DO O6/01/97 O1-,TUN-1998 29,676.17 0.00 0.000000 IT 22-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 400,000.00 GENERAL ELEC CAP DISC 12-JUN-1998 551.00 551.00 0.000000 36959JFC2 06/12/1998 12-JUN-1998 551.00 0.00 0.000000 IT 12-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 800,000.00 GMAC DISC 17-JUN-1998 7,564.00 7,564.00 0.000000 37042EFH9 06/17/1998 17-JUN-1998 7,564.00 0.00 0.000000 IT 17-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 4,000,000.00 HELLER FINL MTN O1-JUN-1998 36,101.39 36,101.39 0.000000 42333HJN3 FLTG RT O6/01/2000 DO 04/07/98 01-JUN-2998 36,101.39 0.00 0.000000 IT O1-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 800,000.00 NATIONAL RURAL DISC 25-JUN-1998 7,793.78 7,793.78 0.000000 63743DFR7 06/25/1998 25-JUN-1998 7,793.78 0.00 0.000000 IT 25-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 100,000.00 SARA LEE CORP DISC 02-JUN-1998 107.53 107.53 0.000000 80311BF22 06/02/1998 02-JUN-1998 107.53 0.00 0.000000 Page 35 OCSG000100 MELLON TRUST CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SHARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURR GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ IT 02-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 19,000.00 US TREASURY INFLATION INDEX NT O1-JUN-1998 19,000.00 19,000.00 0.000000 9128272M3 3.375% 01/15/2007 DO O1/15/97 15-JAN-1998 19,000.00 0.00 0.000000 IT O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO -19,000.00 US TREASURY INFLATION INDEX NT O1-JUN-1998 -19,000.00 -19,000.00 0.000000 9128272M3 3.3751 01/15/2007 DO O1/15/97 15-JAN-1998 -19,000.00 0.00 0.000000 ITC O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 US TREASURY INFLATION INDEX NT O1-JUN-1998 19,000.00 19,000.00 0.000000 9128272M3 3.375% 01/15/2007 DD O1/15/97 01-JUN-1998 19,000.00 0.00 0.000000 CD RECEIVED INTEREST O1-JUN-1998 0.00 0.00 1.000000000 JUNE 1998 0.00 LONG TERM OPER-PIMCO 18,900.00 US TREASURY INFLATION INDEX NT 30-JUN-1998 18,900.00 18,900.00 0.000000 9128272M3 3.375% 01/15/2007 DD O1/15/97 15-JAN-1998 18,900.00 0.00 0.000000 IT 30-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 10,800,000.00 U S TREASURY NOTES O1-JUN-1998 351,000.00 351,000.00 0.000000 9128272NI 06.500% 05/31/2002 DO O6/02/97 31-MAY-1998 351,000.00 0.00 0.000000 IT O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 13,160.00 US TREASURY INFLATION INDEX NT O2-JUN-1998 13,160.00 13,160.00 0.000000 9128273A8 3.625% 07/15/2002 DO 07/15/97 15-JAN-1998 13,160.00 0.00 0.000000 IT O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TEAM OPER-PIMCO -13,160.00 US TREASURY INFLATION INDEX NT O1-JUN-1990 -13,160.00 -13,160.00 0.000000 9128273AB 3.625% 07/15/2002 DD 07/15/97 15-JAN-1998 -13,160.00 0.00 0.000000 ITC O1-JUN-1996 0.00 0.00 1.000000000 0.00 TANG TERM OPER-PIMCO 0.00 US TREASURY INFLATION INDEX NT O1-JUN-1998 13,160.00 13,160.00 0.000000 Page 36 OCSG000100 MELLON TRUST ' CSDOC-CONSOLIDATED POSTED TRANSACTIONS - LOCAL/BASE BASE: USD O1-JUN-1998 - 30-JUN-1998 TM100 BASE AMOUNT/ SNARES/PAR VALUE EFFECTIVE DATE/ LOCAL AMOUNT/ COST/ LOCAL PRICE/ SECURITY ID/ DESCRIPTION/ SETTLE DATE/ COST/ INV GAIN LOSS/ BASE PRICE/ TRANS CODE BROKER COMPL DATE GAIN LOSS CURB GAIN LOSS BASE XRATE/ -------------------------------------------------------------- ------------------ -------------------- ------------------ 9128273A8 3.6258 07/15/2002 DO 07/15/97 01-JUN-1998 13,160.00 0.00 0.000000 CD RECEIVED INTEREST 01-JUN-1998 0.00 0.00 1.000000000 JUNE 1998 0.00 LONG TERM OPER-PIMCO 0.00 SHORT TERM PUS INT ADJ 30-JUN-1998 366.53 366.53 0.000000 990000PJ4 NET OF OVERNIGHT INTEREST 30-JUN-1998 366.53 0.00 0.000000 CD AND OVERDRAFT EXPENSES 30-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 0.00 SHORT TERM FDS INT ADJ 30-JUN-1999 71.82 71.82 0.000000 99DOOOPJ4 NET OF OVERNIGHT INTEREST 30-JUN-1998 71.82 0.00 0.000000 CD AND OVERDRAFT EXPENSES 30-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 BSDT-LATE MONEY DEP ACCT O1-JUN-1998 2.61 2.61 0.000000 996087094 VAR RT DO O6/26/1997 01-JUN-1998 2.61 0.00 0.000000 IT O1-JUN-1998 0.00 0.00 1.000000000 0.00 LIQUID OPER-PIMCO 0.00 BSDT RESERVE DEPOSIT ACCOUNT- 01-JUN-1998 518.72 518.72 O.ODOD00 999495906 PUBLIC II O1-JUN-1998 518.72 0.00 0.000000 IT O1-JUN-1998 0.00 0.00 1.000000000 0.00 LONG TERM OPER-PIMCO 0.00 BSDT RESERVE DEPOSIT ACCOUNT- 01-JUN-1998 2,534.41 2,534.41 0.000000 999495906 PUBLIC II O1-JUN-1998 2,534.41 0.00 0.000000 IT 01-JUN-1998 0.00 0.00 1.000000000 0.00 Page 37 FAHR COMMITTEE " nq We T%7M m/ts/9s o�/zslse AGENDA REPORT °rn 5anbe Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Steve Kozak, Financial Manager SUBJECT: ANNUAL REVIEW OF THE DISTRICTS INVESTMENT POLICY STATEMENT AND DELEGATION OF INVESTMENT AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER (FAHR98-56) GENERAL MANAGER'S RECOMMENDATION That the FAHR Committee: 1. Review and approve the District's Investment Policy Statement for 1998-99; 2. Renew the delegation of investment authority to the District's Director of Finance/Treasurer for 1998-99; and 3. Recommend that the Board of Directors adopt Resolution No. OCSD-98-XX for adoption of the District's Investment Policy Statement, and renewal of investment authority for 1998-99. SUMMARY This agenda item presents the annual review of the District's Investment Policy Statement to the FAHR Committee for consideration in the Committee's capacity as the oversight committee for the Investment Policy (Section 16.2). With adoption of the attached Resolution, the Board of Directors would readopt the District's current Investment Policy Statement, portfolio performance benchmarks, and monitoring and reporting requirements. The District's Investment Policy Statement is recommended for adoption for 1998-99, with no changes or revisions from 1997-98. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) \VMm`dY1Ny ERNn�21 WeroFAXg1FAXR�WiM<AXR842.hx RnsV: 1598 Page 1 1 ADDITIONAL INFORMATION Backaround The District's current Investment Policy Statement was reviewed and approved by the Finance, Administration and Human Resources Committee (FAHR) on September 10, 1997, and adopted by the Joint Boards on September 24, 1997 (Resolution No. 97-32). These approvals followed thorough review and comment by both the FAHR Committee and the Board during July and August 1997. The Investment Policy governs the investment activities of Pacific Investment Management Company (PIMCO), the District's external money manager, on behalf of the District. The Districts Investment Policy Statement has received the Investment Policy Certification of Excellence Award from the Municipal Treasurer's Association of the United States and Canada. The attached Investment Policy document consists of the Policy Statement itself, and the following four appendices: A. Summary of Investment Authorization; B. Board Resolution No. OCSD-98-XX; C. Sections of the California Government Code Pertinent to Investing Public Funds; and D. Glossary of Terms. Annual Review of Investment Policy The Investment Policy includes the requirement that the District shall review its Investment Policy annually (Sections 1.2 and 16.1). Likewise, Section 53646 of the California Government Code (the "Code") requires local agencies to review their investment policy annually, and readopt their policy at a public meeting. This staff report presents the annual review of the District's Investment Policy Statement to the FAHR Committee for consideration in the Committee's capacity as the oversight committee for the Investment Policy (Section 16.2). With adoption of the attached Resolution, the Board of Directors would readopt the District's current Investment Policy Statement, portfolio performance benchmarks, and monitoring and reporting requirements. Annual Delegation of Investment Authority •Effective January 1, 1997, Section 53607 of the Code states that governing boards of local agencies may only delegate authority to invest and/or reinvest agency funds to the agency's Treasurer for a one-year period. \NEmWamlWp.E ftUtU Mm VAHRTAHRB Iy AHRBBUB.Jx Rwu ,� Page 2 4 With adoption of the attached Resolution, the Board of Directors would renew its delegation of investment authority to the Director of Financerrreasurer for a one-year period in compliance with the requirements of Section 53607. Each year, the Board of Directors will consider similar actions along with the annual reconsideration of the District's Investment Policy. ALTERNATIVES None. CEQA FINDINGS N/A ATTACHMENTS 1. Orange County Sanitation District's 1998-99 Investment Policy Statement 2. Resolution No. OCDS-98-XX \YCJSNaS1My.tlS�EV1 WvmlcAH,hcPHiBBW:ycPHP�58.tlx R� 1� Page 3 t RESOLUTION NO. OGSD-98-XX AUTHORIZING THE DISTRICT'S TREASURER TO INVEST AND/OR REINVEST DISTRICTS FUNDS AND ADOPTING DISTRICTS INVESTMENT POLICY STATEMENT AND PERFORMANCE BENCHMARKS A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT, AUTHORIZING THE DISTRICTS TREASURER TO INVEST AND/OR REINVEST DISTRICTS FUNDS, AND ADOPTING DISTRICTS INVESTMENT POLICY STATEMENT AND PERFORMANCE BENCHMARKS .. ... .. ..... .. . WHEREAS, on September 24, 1997, the Board of Directors adopted Resolution No. 97-32, readopting the District's Investment Policy Statement, and establishing specific performance benchmarks and objectives, together with a schedule of frequency of investment performance reports; and, WHEREAS, pursuant to California Government Code Section 53607, the Board of Directors may delegate authority to invest and/or reinvest District's funds to the Treasurer for a one-year period; and, WHEREAS, pursuant to California Government Code Section 53646, the District is required to review its Investment Policy annually and readopt its Policy at a public meeting, which Policy will establish specific performance benchmarks and objectives, and specific monitoring and reports. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That the authority of the Board of Directors to invest or reinvest District's surplus funds, or to sell or exchange securities so purchased, or to deposit for safekeeping the funds and investments of the Districts with depositories, as provided for in California Government Code Sections 53608 and 53630, is hereby delegated to the District's Treasurer for a one-year period commencing on the date this Resolution is adopted, as authorized by Califomia Government Code Section 53607. 1 Section 2: That the Board of Directors hereby adopt the Investment Policy Statement of the Orange County Sanitation District, as set forth in Exhibit "A," attached hereto and incorporated herein by reference. Section 3: That the Board of Directors hereby adopt the following spec performance benchmarks for their two investment funds in accordance with Section 14.0 of the District's Investment Policy: LIQUID OPERATING MONIES: The Short-Tenn Operating Fund will be compared to the three month T-Bill rate, and the Callan Active Cash Flow Income Style Group. The Callan Active Cash Flow Income Style Group represents a peer group of managers who operate with a maximum maturity of one year. LONG-TERM OPERATING MONIES: The Long-Term Operating Fund will be compared to the Merrill Lynch Government and Corporate One-to-Five Year Maturity Index and to the Callan Defensive Fixed Income Style Group. Section 4: That the Board of Directors hereby adopt a performance monitoring and reporting schedule, as required by Section 15.0 of the District's Investment Policy, which schedule is attached hereto as Exhibit"B," and incorporated herein by reference. PASSED AND ADOPTED at regular meeting held July 29, 1998. \VYADOMDATAI IWP.DTA� l=RPNE MRWF RgH UL111 ST UCY ESO. FAHRCOMMITTEE nemRgoate Toad.oar. 011111 a 07/29/9a AGENDA REPORT """""n°' `j a YbV a Orange County Sanitation District FROM: Mike Fetterman, Director of Human Resources Originator: Tom Woodruff, General Counsel SUBJECT: SEPARATION INCENTIVE AGREEMENTS (FAHR98-59) GENERAL MANAGER'S RECOMMENDATION Approve Resolution No. OCSD-98-XX authorizing the General Manager to enter into separation agreements with District employees in specified circumstances. SUMMARY Over the past few years, the District has been engaged in a staff reduction program. In each of the past four years, the Directors have authorized an Early Retirement Incentive Program and 32 employees have retired. There are other employees who may not be eligible to retire, but who might be encouraged to leave through a limited cash incentive. This resolution authorizes the General Manager to make such an offer in cases where the position of the separating employee may be deleted and savings will exceed the amount of the incentive. PROJECT/CONTRACT COST SUMMARY This program will result in cost reductions. BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None. H.Mp.tl ftUlq n.1FRHRTAKR9 ItffAHRW59.tloc R...:<a.. . Page 1 ALTERNATIVES 1. Do not approve the program and reduce staff through other means. 2. Do not approve the program and increase staffing authorizations CEQA FINDINGS None. ATTACHMENTS 1. Draft Resolution No. OCSD-98-XX. KW. ft%nUl ftMmWAHRIFAHRBS WU FAHRQMa,d¢ R^"0O swe Paget RESOLUTION NO. OCSD 98- AUTHORIZING THE GENERAL MANAGER TO ENTER INTO SEPARATION AGREEMENTS WITH DISTRICT EMPLOYEES IN SPECIFIED CIRCUMSTANCES A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE GENERAL MANAGER TO ENTER INTO SEPARATION AGREEMENTS WITH DISTRICT EMPLOYEES IN SPECIFIED CIRCUMSTANCES WHEREAS, the Board of Directors of Orange County Sanitation District has previously directed that the size of District's staff be significantly reduced; and WHEREAS, the Board of Directors of said District has previously adopted Resolutions and Ordinances approving Early Retirement Incentive Programs for all eligible District's employees as authorized by Government Code Section 31641.04; and WHEREAS, the General Manager has reported that the District has saved, or will save, $4.4 million through Fiscal Year 1999 as a result of the Early Retirement Incentive Programs previously adopted; and WHEREAS, many employees do not meet the standard of ten years of service and 50 years of age in order to be eligible for the Early Retirement Incentive Programs, and WHEREAS, District's management has reported to the Board the desirability of deleting some positions whose incumbents are not eligible for Early Retirement Incentive Programs in order to take advantage of changes in the manner of performing District's services and the opportunity to realize savings of money and other economic benefits that would flow to the District by the elimination of such positions; and WHEREAS, such employees may be encouraged to leave District's employment by means of limited economic incentives. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: 2092- U122_1 r Section 1: The General Manager is authorized to enter into Separation Incentive Agreements with District employees, regardless of eligibility for Early Retirement Incentive Programs pursuant to Government Code Section 31641.04, in cases where the separating employee's position may be deleted and the savings to the District will exceed the cost of the separation incentive. Section 2: The Separation Incentive Agreements may provide for a one-time lump sum payment not to exceed $50,000 and shall include a waiver of all contractual rights to employment, express or implied, and a settlement of any employment related claims, known or unknown to employee, against the District. Section 3: The authority delegated by this Resolution shall expire on 19 or until the number of District's positions has been reduced to whichever occurs first. PASSED AND ADOPTED at a Regular Meeting held _, 1998. Chair ATTEST: Board Secretary mM- 01]I_1 FAHR COMMITTEE "00tl7' oae rdaa.mar. OI/15/98 a]/29/98 AGENDA REPORT ism games �� mw Orange County Sanitation District FROM: Mike Peterman, Director of Human Resources Originator: Tom Woodruff, General Counsel SUBJECT: ESTABLISHMENT OF DEFINED CONTRIBUTION PENSION PLAN FOR GENERAL MANAGER (FAHR98-60) GENERAL MANAGER'S RECOMMENDATION Approve the establishment of a defined Contribution (401 a) Pension Plan for the General Manager only, and direct the General Counsel to prepare such a plan and an amendment to the contract of employment with the General Manager. SUMMARY The General manager has asked if a portion of his annual salary could be deferred. General Counsel and staff have evaluated various alternatives and propose that a new Defined Contribution Pension Plan be established only for the General Manager. Such a plan, in conjunction with the existing Orange County Employees Retirement System and the existing 457 Deferred Compensation Plan, is allowed by the Taxpayer Relief Act of 1997. Deposits into this Plan would be in lieu of other contractual salary payments to the General Manager, and will not increase salary expenses. PROJECT/CONTRACT COST SUMMARY None. BUDGETIMPACT ® This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) \NCmWO1My.ftft 1V ,@VMWAHRG4 IffAHRYBdO.dx R..v.d drdnve Page 1 ADDITIONAL INFORMATION None. ALTERNATIVES Do not approve the Pension Plan and make current salary payments to the General Manager. CECIA FINDINGS None, ATTACHMENTS 1. Memorandum from General Counsel. kM W.miM ftNnQiP mWAHWAHR�IffAHRp dx R. y Page 2 BOARD OF DIRECTORS Meedn9 Me To Bcvd 07/29M AGENDA REPORT Hem Number IRm mw Orange County Sanitation District FROM: David LudvAfirector of Engineering Originator: David Ludwin, Director of Engineering SUBJECT: Mr. Walter Drake's Request for Refund of Taxes and User Fees, and Reduction of Connection Fee GENERAL MANAGER'S RECOMMENDATION 1) Receive and file letter dated June 23, 1998, from Walter J. Drake requesting a refund for taxes paid prior to 1978 and to reduce his connection fee to $250; and 2) Deny Mr. Drake's request. SUMMARY On May 27, 1998, Mr. Walter Drake addressed the District No. 7 Board of Directors. He discussed the failure of his septic system and requested that his connection fee be waived because he was a senior citizen and on a fixed income. He also told the Board that he had paid a total of$345 in sewer user fees from 1991 through 1998, even though he was not connected to a sewer. In consideration of Mr. Drake's request, the Board did not waive Mr. Drake's connection fee, but directed staff to offer Mr. Drake the option of paying the connection fee on an installment basis and to credit the total sewer user fees paid since 1991 towards the connection fee. A letter was sent to Mr. Drake outlining those decisions on June 3, 1998 (see attached). Mr. Drake has subsequently presented a written request 1) for a refund of$1,028 in taxes and fees paid since 1964, which includes the $345 in user fees paid since 1991, and 2) to only pay $250 for the connection fee, which was the fee prior to 1989. See attached letter dated June 23, 1998. Staffs interpretation of the basis for these requests is summarized below. Mr. Drake has requested a refund of taxes paid from 1964 to 1981. Prior to the passage of Proposition 13 in 1978, the Districts collected property taxes to pay for operations, capital improvements, and debt service. The sum of these three tax rates, which were shown as 'D.C. Sanitation #7" on the property tax bills, was generally between $0.45 and $0.50 per$100 assessed value. After passage of Proposition 13, the only tax collected was the debt service portion. The collection of sewer user fees began in 1991. The "7" Sewer Maint" tax on the property tax bill was collected by the County of Orange for the maintenance of the local lines. H Ary GhlapeMallB]t bM"M Ap aea..,sn�anel bake m�aac R. Page 1 A property tax is based on property value, not use. All properties pay taxes to a variety of agencies for services they may not use, such as libraries, fire departments, and schools. The philosophy of the property tax is that there is a benefit to society for the services made available to all. To grant Mr. Drake a refund or credit for the property taxes paid would be unfair to the many others who have paid taxes in the past, and it would be counter to the principles of property taxation, good public policy, and social good. Mr. Drake believes he was not properly informed of the increase in connection fees in 1989 from $250 to $1,500, and therefore he should only pay$250. When the District No. 7 connection fee increased to $1,500 in accordance with the 1989 Master Plan, there were newspaper ads and articles published about the increase and a special program being offered to property owners. Letters were also sent to all property owners in District No. 7 discussing the increase and special program. The program, adopted by the District No. 7 Directors, provided for three equal annual payments, without interest, for anyone who wanted a permit. The permit would be valid forever, and didn't need to be used when purchased. Many homeowners took advantage of this program. It appears that Mr. Drake should have been aware of the proposed changes to the connection fee. General Counsel has rendered an opinion that because the statute of limitations has run, the District has an absolute defense to any claim for refund going back more than four (4) years. Accordingly, to give the requested sum to Mr. Drake would constitute a gift of public funds. PROJECT/CONTRACT COST SUMMARY BUDGETIMPACT ❑ This item has been budgeted, tune item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION None. c Dm. .07e d- a...wd Page 2 ALTERNATIVES Grant Mr. Drake's request and refund all taxes and fees paid, and charge $250 for connection permit fees. CEQA FINDINGS N/A ATTACHMENTS 1. June 3, 1998 letter from Director of Engineering to Mr. Drake 2. June 23, 1998 letter from Mr. Drake to District No. 7 Board of Directors DAL,gc G MYbb�P Rp(gblti'tl&urmWAer p k.01]®9 Rp v Page 3 COUNTY SANITATION DISTRICTS OF ORANGE COUNTY, CAUFORNIA June 3, 1996 pAona 62241] a Walter Drake 1f6L2T. rn 12402 Eveningside Drive Santa Ana, CA 92705 .da✓me� n Subject: Connection Fee Dear Mr. Drake: ° In accordance with the direction given by the Board of Directors of District No. 7, the Sanitation Districts can offer you the option of paying your connection fee on an installment basis. Also, you will be given full credit of $345 for the sewer user fees that you have paid since 1991. The $2,360 connection fee will be split into three payments, interest free. You will be given full credit for the user fees on the first payment. Therefore, the resulting payment schedule is as follows: $442 due at the time the connection permit is issued and two subsequent equal payments of$786.50 each, due in 1999 and 2000. The specific due dates will be established when the connection permit is issued. Please sign the enclosed agreement and bring it with your check for$442 at th ' e you apply for your connection permit. If you have any questions, '-as e / l� David A. Lu 'n, P.E. Director of Engineering DAL:gc X:U,,PAa4ng%71 WudMnLLEITERSM298 Drake ur.dec nee., Enclosure c: G. Streed l T. Woodruff J. Rycraw a A Public wasrewamr and Ennron,nenral Managemene Agency Communed m Prdeecdng We Ennranmen,Since 1954 COUNTY SANITATION DISTRICT NO 7 AGREEMENT TO PAY SEWER CONNECTION FEES /�I IN INSTALLMENTS Permh W ee ``�''172�e— D,O ,E.E Permit No. SR>rrtF A?JA- a4 92 7O s AGREEMENT ISSUANCE CONDITIONS: a.) Only for properties fully developed and for which occupancy permits were Issued and which is occupied by the applicant b.) Property owner must request installment payment agreement prior to issuance)of connection permit, and by executing this agreement certifies to (a)above. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. The undersigned property owner owes sewer connection fees to County Sanitation District No.7 of Orange County,California,in the amount of$__ 9S 4,0,M 2. The property owner desires to pay such sewer connection fees in not more than three(3)annual installments because its property is an older,developed and occupied property. 3. Property owner shall pay the total amount of$ 93W.0T) to the District in the following annual installments: A. $ ^YSp"e�. ,upon issuance of a Sewer Connection Permit B. $ 0 G• ,on 1999; C. $ ( on 2000. 4. Property owner acknowledges and consents to the District placing a lien against its property in the amount owed it the fee is not paid in accordance with the terms established above. If such a lien becomes a necessary,a ten percent(10%)administrative fee,plus interest at the prime rate(Bank of America, San Francisco),plus two(20A)per annum on the unpaid balance,will be added to the amount due. 5..This Agreement applies to the property located at e ,^,''LL�d'�•�o a-- ✓ (/�(J( S(O E 7�'� SQ" /t ,and described as AP No. Dated (0 . 1998 only 'atio D' No.7 Property Owner Signature of Property Owq'er COPIES: Attach original to Accounting copy and Xerox copies to all other permit copies. NOTICE TO CITY/COUNTY: County Sanitation District No. 7 connection fees requirements have been satisfied and the city/county is authorized to issue the other necessary permits to this property owner. wr,.men.p.mw,rvxsmcrsmv..ei��ro�^rme Mr.A M..Weller J. Dnke RECEIVED 22CO2 E,. M gaae Dd.e ENGIN Santa A. CA 92705 DEPART Tu� a�� 1448 IUN ? 3 1998 PIA7 6 U,,7, eo,, 4372 8.8�37r'ou RSCANIITAATON Iv OF 8,.X�c F46�S �Y2, DaANGE COUNTY Z&Y LR . 9a7vg-7o i 8 goa.r� o �Dltac�rs T o J„ i �ctv�(7F n F yo 1e7�ir dafsdTtti<�311998 sw61-�� c�h�lJoh Fes, c /99/ .v , l q 98 S [,r� yb C d 6y vti SfAr < <. �'Z. %s is ti,�Fa �r��St.• #. e .� hbyfa �-j. 0 6UrLs Oti /9G7 -tD 9/•7q-4- a' - s� . racyofr '7< SKMF a �y s 411(`9G T?32rJ�..s Zv,r- Pa,•oQ bvy ,/o.YB, —� / h Fr�s-r� Fevi�w fv a,4 s car f(�sG83.O(�O� addsf .K�� do yocZV-e- 1-e_e�i w-d/flro� n.-�- /1`= Prw/ a•-slyy -F�9 t d h•-�-� o/�,.�slyt ��c'3p..dt F��I A- c..Fv`/✓ a6.e.L /too UJ..- (..Yvsvwa �h f..`a� Q0O04tYd�"f'o✓T"`1N S-�{� �' 0�2 tJ� yUft-Y I�' /S/ov. oa lw� a�G�owJ<•� o�CJ.a( vg-r o`J '+/ ar 1 o TT�t^bGJh 7o n ' o4. 4j.d .:f �;- /r y T R..�' Na %JaL �-� . /a- 79Y2""..14&. Vd � A- -es404r53C.0, 4„l L;5-1- e �.�yi/,____ _ 4. �-I'G -Fl...-� Goa w-�'o�-, r-+a- a •.�d w �rp"�" F,t Ya� a-g,+ 44d'�0�"1 s/y a w.dd�ha.�1F-et,$ a. S /yo�. S-�d /�h pw✓ 4zl�Y 8/ A.99. -' '4A-fec /oZ / PL Ca+ �fr�Lwaa,�Cy�1a�� //�-� a-)-e S�i,., 'Ly /h.SYa hr• mac. yo,r�oil G/7J�'Q�l 40 %a.�ra-..`fre-r�so 'Prcor ow w,-s a/� An11 'p�- coaw.L��ti p3� 77 c t t e rEA t r W, i fYGvf>�� _ DETERMINATION OF FINANCIAL h RATES AND a 3 CHARGES r i "p, h x �aN� �gN�r M- -" Y. � 204 n, February 1998 caroLLo en6ineers DETERMINATION OF FINANCIAL RATES AND CHARGES County Sanitation Districts of Orange County Table of Contents P CHAPTER 1 -EXECUTIVE SUMMARY 1. Introduction . ... ... ......... ... . ... ... . .. . ..... . . .. ........ ... . . . . .. 1-1 2. Background . . .. .. . . ............ ... ... ....... .. . . . . ... . . . . .. .. . .. . . . 1-1 _ 3. Rate Advisory Committee Pr000B6 .. . .. ....... ... ...... . . . .. . . . . . . . . .... 1-1 4. Overall Philosophy . . . . . . . . . . . . . .. . . . .. ...... .... .. .... .... . . . . . . .. . . . 1-2 5. Sewer User Charges . . . . . . . . . . . . .. .. ..... ....... .. ...... ... . . . . . .. . . . 1-2 6. Connection Fees . . . . . . . . . . . . . . . . . ...... . ........ . . .. ... . .. . . . . . . ... . 1-3 7. Recommended Action/Next Steps . . . . . . . . . . . . ... . . . .... . . .. .. ... . . . . . . . . 1-3 CHAPTER 2 - GOALS AND OBJECTIVES OF THE STUDY 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . 2-1 2. Major Objectives in Developing The CSDOC Rate Structure . . . . . . . . . . . . . . . . . . . 2-1 CHAPTER 3- OVERALL APPROACH/KEY ISSUES AND RATE ADVISORY COMMITTEE PROCESS i. Overall ApproachlKey Issues . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 2. Rate Advisory Committee Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 CHAPTER 4 - EXISTING SYSTEM OF RATES AND CHARGES 1. Overall Rate Philosophy . . . . . . . . . . . . . . . .. . . . . . . ... ................. . .. 4.1 2. User Charges . . . . . . . . .. . . ...... ... ............................. . . . . 4-2 Residential User Charges . . . . . ....... ....... ........... .......... . . . . . 4.3 Commercial User Charges . . . . .... ... .................. ... . ... . .. . . .. . 4-4 Industrial User Charges . . . . . . . .... . . . ....... ........... ....... ... . .. . . 4-4 User Charge Comparison . . . . . .... ...... . .. . ........... .... ... ... . . . . . 4-6 3. Existing Connection Fees . .. . . . . .. . . . . .. . . . . . .. .. . . ... . .... . . . . .. . . . . . 4-7 CHAPTER 5- EXISTING AND PROJECTED USER CHARACTERISTICS IN WASTEWATER FLOWS AND LOADINGS 1. Review of Commercial User Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1 2. Development of User Flows and Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-4 s+ nsxae,oc.aw DRAFT- February 17, 1998 f CHAPTER 6- EXISTING AND PROJECTED WASTEWATER COLLECTION AND TREATMENT COSTS 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . ....... .. . . . . . . . . . .. . . . . . . . . . . . 6.1 2. Operation and Maintenance/Capital Costs . . . .... ... . . . . . . . . .. . . . . . . . . . . . . 6-1 Operation and Maintenance Costs . . . . . . . . . .... ... . . . . . . . . . . . . . . . . . . .. . . 6.1 Capital Improvement Plan Costs . . . . . . . . . .. ....... . . . . . . . . . . . . . . . . . .. . . . 6.2 3. Allocation of Costs to Flow and Strength .. .......... . . . . . . . . .. . . . . . . . . . . . . 6-3 Operation and Maintenance Costs . ... ............. . . . . . . . . .. . . . . . . . . . . . 8-3 Capital Costs . . . . . . . . . . . . . . . . .. ............... .. . .. . . . .. . . . . . . . . . . .. 8 5 CHAPTER 7- USER CHARGES 1. Overall Methodology for Determining User Charges . . . . . . . . . . . . . . . . .. . . . . . .. 7-1 2. Development of Alternative User Charge Methods . . . . . . . . . . . . . . . . . . . . . . . . .. 7.2 3. Comparison of Existing and Alternative User Charges . . . . . . . . . .. . . . .. . . . . . .. 7-3 CHAPTER 8- CONNECTION FEES 1. Overall Methodology for Determining Connection Fees . . . . .} 8-1 2. Development of Alternative Connection Fee Methods . . . . . . . . .... . . . . . . . . . . . 8.3 3. Comparison of Existing and Attemative Connection Fees . . .. ..... . . . . . .. . . . .. 84 CHAPTER 9- RECOMMENDED RATE STRUCTURE 1. Introduction . . . . . . . . . . . . . . . . . . . ... . . . . . . . .. .. . .. . . . . . . . . .. . . . .. . .. . . 9.1 Rate Advisory Committee Process .............. . . . . . . . . . . . . .. . . ... . .. . . 9.1 Overall Philosophy . . . . . ... . . . . . ....... ..... .. . . .. . . . . . . . . . . . . . . . . .. . . . 9-1 Sewer User Charges . . . . . . . . . . .. .... . . .. . ... . . . . . . . . . . . .. . . . .. . . ... .. 9.2 Connection Fees . . . . . . . . . . . . . . . .... . .. . ... ... .. .. . . . . .. .. . .. . . .. . .. . 9.2 Recommended Action/Next Steps . .... ............. . . . . . . . . . . . . .... .. . . . 9.2 2. Detailed Analysis of Key Issues . . .. ...... ....... ... .. . 9-3 Changes to User Charge System . . ..... . ... .. . . . . . . 9.3 .... ..... . .. . ... .. . Changes to the Connection Fee System ... ... ................ ... .... . . . .. 9.6 APPENDICES A Survey of Other Similar Agencies B Allocation of Costs to Billable Constituents C Summary of the Rate Advisory Committee Process and a Report Back to the CSDOC Board on Rate Structure Recommendations D State Water Resources Control Board Guidelines E Property Tax Categories for Billing F Residential Flow and Loading Data sxvoeeowrsnmsru>Eroc.wo ii DRAFT- February 17, 1998 List of Tables P� 1.1 Overall Philosophy of Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2 3.1 Key Issues to be Addressed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 3.2 Rate Advisory Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3 4.1 Existing Cost of Service Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 4.2 Existing and New Users are Grouped into 3 Categories for Rates and Choose . . . . 4-2 4.3 Requirements to be Recovered Through User Charges . . . . . . . . . . . . . . . . . . . . .. 4-3 4.4 Residential Sewer Service Fees by District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3 4.5 Example Residential Sewer Charge Calculation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4 4.6 Commercial Sewer Service Fees by District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 4.7 User Rate Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 4.8 Commercial Connection Fee Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . 4.11 5.1 Proposed 21 Commercial Categories . ... . .. . .. . .. .. . . . . . . . . . . . . . . . . . . . . . 5.3 5.2 Revised Commercial Billing Categories . . . . ., ... . . . . . . . . . . . . . . . . . . . . . . . . . . 54 5.3 Adjusted Flow and Load Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 6.1 Costs by Treatment Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1 6.2 Capital Costs are Allocated to Replacement/Improvement & Expansion . . . . . . . . . . 6.2 6.3 Operation and Maintenance Allocation Percentages . . . . . . . . . . . . . . . . . . . . . . . . . 64 6.4 Recommended Capital Allocation Percentages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-6 7.1 New Information on Wastewater Flows from Mufti-Family . . . . . . . . . . . . . . . . . . . . . 7-1 7.2 Major Components of User Charges and Accounting Considerations . . . . . . . . . . . . 7-2 7.3 Options for User Charge Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-3 7.4 Residential and Commercial User Charges Based on "Same Average Cost" . . . . . . 7-7 8.1 Guiding Philosophy of Alternative Connection Fee Methods . . . . . . . . . . . . . . . . . . . 8-2 8.2 Major Components of Connection Fees and Accounting Considerations . . . . . . . . . . 8-3 8.3 Options for Connection Fee Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.3 8.4 Calculation of Existing Versus Other Industrial/Commercial Connection Fees Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . 84 8.5 Possible Tiered Residential Connection Fee Categories . . . . .. . . . . . . . . . . . . . .. . " 8.6 Connection Fee Payment Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-7 8.7 Industrial Connection Fees Could be Paid on Annual Basis . . . . . . . . . .. . . . . . . . . 8-7 9.1 Overall Philosophy of Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . .. . . . . . 9-1 List of Figures Paae 2.1 County Sanitation Districts of Orange County Service Area . . . . . . . . . . . . . . . . . . . 2-2 3.1 Overall Work Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2 3.2 The Rate Advisory Committee was Composed of The Major User Categories . . . . . 3-3 svvaem�aon�aw�re-rocwro Ili DRAFT- February 17, 1998 4.1 Requirements to be Recovered Through User Charges . . . . . . . . .... . .. . . .. . . . 4-2 4.2 Classes of Industrial Users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... .. . . .. . . . 4-5 4.3 Example Industrial User Charge Calculations . . . . . . .. . .. .!. . . . . . . . . .. . . . .. . . 4-5 4.4 Connection Fees are Used to Cover All Costs of Expartslon ibr New Users . . . . ... 4$ 4.5 New Users Pay a 'Buy-In' Cost to Use Existing Facilities . . . . . . . . . . . . . . . . . . .. . 4.8 4.6 Major Components to Connection Fees and Accounting Considerations . . . . . . . . . . 4 8 4.7 Residential Connection Fee Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-10 4.8 Industrial Connection Fee Comparison for a High Strength Industrial User . . . . . . . 4.10 4.9 Industrial Connection Fee Comparison for a Low Strength Industrial User . . . . . . . 4-11 5.1 Property Tax Land Use Categories . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 5-1 -- 5.2 Approach to Developing Commercial Categories . . . . . . . . .L....... . . .. . .... . 5.2 5.3 Approach to Confirm Commercial Billing Flows and Strengthel ....... . .... . .. .. 5-4 5.4 Overall Treatment Plant Mass Balance . . . . . . . . . . . . ... .. .. .... .. .. . . . . .. . 5-5 6.1 CSDOC Treatment Facilities Process Schematic . . . . . . . . . . . . .. ..... ...... . . 6.2 6.2 Capital Improvement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... ...... . 6� 6.3 Comparison of O&M Cost Allocation to Flow and Strength . . . . . . . . . ... . . . .... . 6.4 6.4 Operation and Maintenance Costs Calculated for Flow and Strength . . . .... . . ... 6.5 6.5 Comparison of Replacement/Improvement Allocation to Flow& Strength . . . . . ... . 6.6 6.6 Capital Replacementfimprovement Costs Calculated for Flow and Strength . . . ... . 6-7 7.1 Should Different Residential and Industrial Cost Allocations be Applied . . . . . ... . . 7-4 7.2 Should Different Commercial Cost Allocations Be Applied . . . . . . . ...... .. . ... . 7-5 7.3 Impact of'Same Average Cost" Rates on Industrial Users . . . . . ....... ..... .. . 7-5 7.4 Comparison of User Charge Methods by Category . . . . . . . . . . . . . ..... . . ..... . 7-6 7.5 Comparison of Revenues Raised by Category Using The Existing and'Stune Average Cost' User Charge Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-7 7.6 Commercial Categories Impacted the Most by'Same Average Cost' User Charges 7-8 8.1 Residential and Industrial Connection Fee Comparison . . . . . . . . . . . . . . . . . . . . .. 6-5 82 Commercial Category Connection Fee Comparison . . . . . . . . . . . . . . . . . . . . . .. . . 13-5 8.3 Comparison of Cost Allocations for Connection Fees . . . . . . . . . . . . . . . . . . . . .. . . 84 s�r[.mc.Hso iv dwr-February 17,1fl86 Chapter 1 EXECUTIVE SUMMARY , 1. Introduction County Sanitation Districts of Orange County (CSDOC) is currently embarked on a new strategic planning effort. The purpose of this planning effort is to help CSDOC more cost-effectively direct their resources to achieve their environmental goals and objectives. The Strategic Plan will identify the facilities and programs necessary for CSDOC to accommodate future service needs,to continue to improve the quality of service and to increase productivity. The strategic planning process addresses two basic questions. The first is what should CSDOC do to accomplish their mission? The second is how is CSDOC going to pay for it?the second question is the primary focus of this report. The purpose of this report is to summarize the essential findings, conclusions, and recommendations for the Determination of Financial Rates and Charges for CSDOC. 2. Background CSDOC raises funds for operating, maintaining, replacing/improving and expanding wastewater treatment and major conveyance facilities primarily through three funding sources: 1. A share of the 1%Ad Valorem taxes; 2. User Charges; and, 3. Connection Fees. Operation, maintenance and replacemenUmprovement costs are primarily funded through ad valorem tax allocations and user charges. Connection fees are collected to pay for expansion of facilities needed to accommodate growth. The overall methodology for determining how costs are allocated to residential, commercial and industrial users as well as to new and existing users, is termed the"rate structure." There are a number of major assumptions and considerations involved in developing the methodology for tracking costs back to the residential, commercial and industrial users. This study consisted of a review of the existing rate structure, and an evaluation of these major assumptions and considerations in an effort to improve fairness while preserving simplicity of administration. 3. Rate Advisory Committee Process As part of the CSDOC Strategic Plan process, a Rate Advisory Committee (RAG) was formed to obtain input from each of the major user categories (residential,commercial and industrial). s:u30890�Tmt. 1-1 DRAFT- February 12, 1998 The RAC was designed to be a collaborative process involving all the major stakeholders potentially impacted by the new rate structure. The opportunity was offered at each of the workshops to allow for feedback, as well as dialogue among the RAC members so resolution could be reached on key rate structure issues. The RAC process involved 9 workshops which were held over a period of 13 months. While the RAC reached substantial agreement on most issues, minority views were expressed and advocated strongly. These minority views can be found in Chapter 9. The reader is encouraged to read the whole report in order to gain a full understanding of the RAC process and the recommendations that were made by the RAC. 4. Overall Philosophy In general, RAC members agreed with the governing philosophy of sources and uses of funds as shown In Table 1.1. Operations and Maintenance of Existing Existing Users Facilities Capital Replacement of Existing Facilities Existing Users Capital Construction of New Facilities to New Users Accommodate Growth Capital Construction to Improve Level of Both New and Existing Users Treatment 5. Sewer User Charges It is important to note that the recommendations made by the RAC address the rate structure (how the costs are allocated back to each user)only,and not the level of funding. A revenue neutral evaluation was conducted during the comparison of aRemative rate structures and sewer user charge methodologies. There was broad agreement among the RAC members that the rate structure should shift from the existing practice of charging commercial users on the basis of square footage of improved Property,to charging based on wastewater flow and strength of discharge. This recommendation to move to a wastewater flow and strength billing basis significantly changes the user charges for some commercial businesses. It raises the rates for some businesses, and lowers it for others,while raising approximately the same total amount of revenue from the commercial user group or category. For example,restaurants,carwashes and supermarkets would see a relatively significant increase in their annual user charges. Whereas warehouses, churches and theaters would see a significant reduction in their annual user charges. swoseoarss 0MSMrt:a,.ww 1-2 DRAFT-February 12, 1998 This recommendation will also increase administrative costs for CSDOC. Currently,CSDOC does not distinguish between classes of commercial users. Developing commercial categories will require CSDOC to develop a monitoring program to verify the flow and strength for each category. The RAC also recommends continuing to charge mufti-family residential units in proportion to single-family residential units. Currently, the charge for multi-family units is 60 percent of the single-family residential unit charge. New flow data developed as part of the Phase I strategic planning process shows that the ratio should be approximately 70 percent. This recommendation and revised data will mean that multi-family rates would increase by approximately 14 percent. 6. Connection Fees Connection fees are paid by new users when they connect to the system to cover the costs of the new facilities required to convey, treat and dispose of the new users'wastewater. Similar to sewer user charges, the RAC recommended a flow and strength basis in determining connection fees. This would cause increased connection fees for some categories of commercial users and decrease them for some. It would also cause an increase in administrative fees for the same reasons cited in the user charge discussion. This recommendation was based on the conclusion that wastewater flow and strength is a better measure of the cost impact of a user on the system than is square footage. In general, the RAC thought it was appropriate to assign most of the costs for wet weather facilities to residential users. This is, in part, because residential lateral systems are the primary source of rainfall-clependent infiltration and inflow which contributes to peak wet weather flows. This recommended change in methodologies would increase the percentage of total connection fee costs allocated to the new residential user category from 61 percent up to as high as 70 percent, with proportionate reductions for new users in the commercial and industrial categories. Because estimated capital costs for new facilities have not yet been finalized, it is not known if this increased percentage will result in higher or lower residential connection fees. 7. Recommended Action/Next Steps it is recommended by the RAC that the CSDOC Board of Directors review and consider these recommended methodologies for the development of a rate structure for sewer user charges and connection fees. This will allow CSDOC staff to move forward with the calculation of sewer user charges and connection fees as the new Strategic Plan and the associated Capital Improvement Plan and the estimated construction and operation and maintenance costs become better defined. This will also allow the staff to proceed with the development of rate structure evaluations such as tiered residential connection fees and the number and type of commercial user charge categories. svwemmasromsar,�rwao 1-3 DRAFT-February 12, 1998 Following this consideration of the methodologies for the developme t of a new structure,the preliminary user charges and connection fees are anticipated to be completed in draft form by early spring 1998,in coordination with the development of the overal�Strategic Plan. S.14309a00ViEPORTOMTEDIMM 1-4 DRAFT-February 12, 1998 Chapter 2 GOALS-Ana-1OBJECTIVES OF THE D. 1 . Introduction The County Sanitation Districts of Orange County's (CSDOC) mission is to protect the public health and environment through excellence in wastewater systems. The overall CSDOC service area is presented in Figure 2.1. The CSDOC currently serves an estimated 2,100,000 people and covers a 470 square mile service area. CSDOC is currently embarked on a new strategic planning effort. The purpose of this planning effort is to help CSDOC focus their resources and to achieve their environmental goals and objectives. The strategic plan will accommodate future service needs and improve the quality of service and increase productivity. The strategic planning process will address two basic questions. The first is what should CSDOC do to accomplish their mission. The second is how is CSDOC going to pay for it. The purpose of this report is to summarize the essential findings, conclusions, and recommendations for the determination of financial rates and charges to plan how CSDOC is going to pay for the new facilities that are required in the future. 2. Major Objectives in Developing The CSDOC Rate Structure The major objectives to be achieved in the development of the new rate structure are the following: • The system should be equitable to all users. • h should be,simple without sacrificing fairness. • It should meet local, state, and federal regulatory requirements. $.W03B0pJVPogrS"T1MWPD 2-1 DRAFT- February 12, 1998 -� �ULLERTON ' PLAC ENTIA YORBA -- BUENA S LINDA • �. PARK + pALMA ANAH[IM © VILLA .CYPRESS i PARK ' LOS STANTON ORANGE � � . ALAMITOS ( GARDEN - © _ GROVE �'"�W�i ER 0 y k1yf s -.ry '� O TUSTIN HUNTI SANTA _ ��i ANA •BEAC PACIFIC ���;� IRVINE MEJA OCUN NEWPORT•- BEACH CSDOC SERVICE AREA FIGURE 2-1 carOLLO COUNTY SNITATION DISTRICTS TS enaineers OF ORAANGE COUNTY Chapter 3 OVERALL APPROACH/KEY. , ISSUES AND RATE ADVISORY COMMITTEE - • 1. Overall Approach/Key Issues The key issues to be addressed in determination of financial rates and charges are as shown in Table 3.1. glum M, Overall Rate Philosophy Determination of User Categories and Flows and Loads Allocation of Costs User Charge Methodologies Connection Fee Methodologies The key issues are sequenced from the general to the specific beginning with the overall rate philosophy and moving toward the eventual method and calculation of connection fees and user charges. The key issues to be addressed were introduced in a workshop process. The workshops involved CSDOC staff, its consultants, and a Rate Advisory Committee (RAC) comprising representatives of CSDOC's user groups. CSDOC chose to involve these user group representatives to ensure that the interests of all the affected parties would be considered when determining financial rates and charges. The overall work plan and sequence of presentation of the key issues is shown in Figure 3.1. As shown in Figure 3.1, nine workshops were conducted, beginning in September 1996 and extending through October 1997. Each of the workshops involved a combination of presentation of new materials, review of existing materials, and feedback from the rate advisory committee. The result of the workshop process was a RAC opinion summary. The summary contains the RAC's recommendations,which will be considered by the Board during its final decision making. 2. Rate Advisory Committee Process The RAC was composed of the major user categories including residential, commercial, and industrial as shown in Figure 3.2 The RAC representatives were selected from a cross-section of the user categories in the CSDOC system. This was accomplished by sending an interest s:waoseom�orrrsvura+u 3-1 DRAFT- February 12, 1998 W.li tw oa.utw 1 Ayt;Iw Ir.~ i N11.iw 1 1r.11,lw 1 Aryn.lei j TIb1Yn.1w 1 OWl�411n j 1 I 1 1 1 I I I I I 1 1 1 1 I I I I I 1 1 1 I 1 I I I 1 I 1 I 1 1 I I I I I I I I 1 I 1 I I I 1 1 I 1 I I I 1 1 1 1 1 I I I I 1 I I I 1 1 1 I 1 1 I I 1 1 I 1 1 1 I 1 1 1 I 1 1 1 1 1 1 1 I 1 1 I 1 I 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 I 1 1 1 I I I 1 I I I I 1 1 I 1 1 I I I I 1 1 I I I I I I I 1 1 I 4r 1 rt� I I I I 1 1 SAY I I I 1 1 I I I YYws• I 1 I 1 1 I I I I I I I 1 I I I I I I I I I I ❑Iltl�leMmn OVERALL WORK PLAN FIGURE 3-1 LoCOrOLLO COUNTY SANITATION DISTRICTS e n a I In e e r 9 1 OF ORANGE COUNTY — I Industrial Commercial D,AS Residential Figure 32 - The Rate Advisory Committee was Composed of the Major User Categories questionnaire to approximately 1,000 potential members. The potential members included industrial dischargers, key commercial category organizations(i.e., hotel1moteltrestaurant association, car wash association, etc.) and homeowners associations. Responses were received from approximately 40. Most of the RAC members were selected from the questionnaire respondents. Calls were made to a few additional dischargers in an attempt to balance the RAC between industrial, commercial, and residential categories. A listing of the rate advisory committee members is shown in Table 3.2. Table 3.2 Rate Advisory Committee Members County Sanitation Districts of Orange County Mark Asturias, Economic Development Vince Mariner Manager Olinda Village Homeowners Association City of Garden Grove 175 Bucktom Drive 11222 Acacia Parkway Brea, CA 92823 Garden Grove, CA 92840 (714) 993-7009 (714) 741-5123 John Brewster Jay MCAJlister 4071 Second Street Green Valley Homeowners Association Yorba Linda, CA 92886 17823 La Rosa Lane Fountain Valley, CA 92708 (714) 963-1627 - s u30eeovMvoersrwrEW.aa 3-3 DRAFT- February 12, 1998 Steve Brown, Plant Engineer Mike Noonan, Vice President WP Engineering Orange County Business Council 1831 East Carnegie 2 Park Plaza, Suite 100 Santa Ana, CA 92705 Irvine, CA 92614 (714) 261-84GO (714)476-2242 John Bushman, Business Retention John Norman, General Manager Coordinator Community Development Midway City Sanitary District - Department 14451 Cedarwood Avenue City of Garden Grove Westminster, CA 92683 11222 Acacia Parkway Garden Grove, CA 92840 (714) 741-5131 Fick Chapter, Director of Property David Placek Operations Psomas Associates HoteVMotel Association of California 3187 Ftedhill Avenue, Suite 250 Go Anaheim Hilton&Towers Costa Mesa, CA 92626 777 Convention Way _. Anaheim, Ca 92802 Kamran Dadbeh,Associate Engineer Don Rasmussen, Environmental City of Cypress Specialist 5275 Orange Avenue Boeing North America, Inc. Cypress, CA 90630 3370 Miraloma Avenue-AB10 (714) 22"756 Anaheim, CA 92803 Eldon Davidson, Utilities Director Phil Sansone, President City of Newport Beach Corona Del Mar Resident Association 3300 Newport Boulevard 215 Marguerite Avenue Newport Beach, CA 92663 Corona Del Mar, CA 92625 (714) 644-3011 (714)675-9138 Greg Davis, Director of Quality Control Ronald C. Schlenker Seven-up/RC Bottling Company of Industrial/Environmental Coalition of Southern California Orange County 3220 East 26" Street R.C.S.&Associates Vernon, CA 90023-4298 25992 Via Viento Mission Viejo, CA 92691 (714) 770-7737 Don Davis, President Tim Sedet, Director of Public Works Woodbridge Village Association City of Tustin 31 Creek Road 300 Centennial Way Irvine,CA 9260"799 Tustin, CA 92780 (714) 573-3150 �TEW. M 3-4 DRAFT-February 12, 1998 ? , Marc Draper Bill Shears, Environmental Manager Community Affairs Jupiter/Westem National Properties Cypress Village Homeowners 8 Executive Circle Association - Irvine,CA 92614-6746 11255 Knott Avenue (714) 862-6200 Cypress, Ca 90630 Richard Edes Sheldon S. Singer IndustriaUEnvironmental Coalition of 12672 Kona Lane Orange County Garden Grove, CA 92841 Go GultomStaham Transducers, Inc. (714)534-3943 16644 Whittier Avenue Costa Mesa, CA 92627 (714) 642-2400 Shidey Fshke Scott Smith Westminster Village Homeowners The Emmons Company Association c/o Bayshores Community Association 5108 Picadilly Circle 17300 Redhill Avenue, Suite 210 _ Westminster, CA 92683 Irvine, CA 92614 (714) 752-2225 Tim Greaves, Deputy Fre Marshall Paul Snow Huntington Beach Fire Department Golden Rain Foundation 2000 Main Street P.O. Box 2069 Huntington Beach, CA 92648 Seal Beach, CA 90740 (714) 536-5531 Kenny Hom, Environmental Engineer Jean F. Soppet, President Kwikset Corporation Brea-Sommerset Homeowners 516 East Santa Ana Street Association Anaheim, CA 928034250 2497 East Rockridge Lane (714) 999-2381 Brea, CA 92821 Duane R Jordan Joe Valinsky, Senior Manager McDonnell Douglas Aerospace McDonnell Douglas Aerospace 5301 Boise Avenue 5301 Bolsa Avenue, M. S. HO28-GI I I Mail Station H028-G111 Huntington Beach,CA 92647 Huntington Beach, CA 92647 (714) 896-3848 Jerry Kirchgessner Steve Woodroof, President and CEO College Park/NIVA Ideal Uniform Rental Service 3486 Eboe Street P.O. Box 2259 Irvine, CA 9260B Garden Grove,CA 92842-2259 Steven Usbermann, Vice President Sherwin D. Yoelin, Operator-Partner Anaheim Mills Corporation Columbine Associates 5420 Fast La Palma 1439 Bonnie Jean Road Anaheim, CA 92807 La Habra Heights, CA 90631 (714) 770,7777 Ext.679 (310) 697-3700 3-5 DRAFT- February 12, 1998 Bob Lockhart, President Revenue Enhancement Group 801 Fast Katella Avenue,Suite 200 Anaheim, CA 92805 (714) 939-2828 The RAC process was designed to be collaborative and involving all of the major stakeholders potentially impacted by the new rate structure. RAC members were encouraged to speak as representatives of their group,while striving for equitable solutions for all user groups. Each workshop provided opportunities for RAC members to study the issues, and discuss the information presented. Dialogue among the RAC members was encouraged,with the goal of reaching consensus. A consensus viewpoint was developed,as opposed to a straight majority,so that minority views,as well as majority views,could be represented in the final RAC opinion summary. The final RAC opinion summary was presented to the CSDOC Board for consideration. Sv OOmrs;onrsvu�.ea 38 DRAFT-February 12, 1998 Chapter 4 1. Overall Rate Philosophy In the determination of financial rates and charges,there are certain overarching principles that guide the process. These overarching principles are as follows: • Operation, maintenance and capital costs must be sufficient to provide service, protect public health, and protect the environment. • Costs are charged to customers using a methodology that reflects community service levels. • Reserves are maintained to provide for unforeseen future cash requirements. • The facilities and programs are managed to achieve cost effectiveness and long term reliability. • Fees and charges are established fallowing local, state, and federal legal requirements, and locally defined policy objectives. The overall cost of service philosophy recognizes that the sources and uses of funds must be matched to new and existing users. The overall philosophy is that operation and maintenance of existing facilities will be paid for by existing users. Similarly, capital replacement and improvement of existing facilities will be paid for by existing users. New capital construction, however,to accommodate growth,would be paid for by new users. This is the overall philosophy governing the development of the rate structure, as summarized In Table 4.1. t r` Operation and Maintenance of Existing Facilities Existing Users Capital Replacement and Improvement of Existing Facilities Existing Users Capital Construction to Accommodate Growth New Users Existing and new users are grouped into three major categories for the determination of rates and charges. The three categories are residential, commercial, and industrial users. CSOOC has approximately 630,000 residential,23,000 commercial, and 1,000 industrial accounts. All three categories pay a sewer user charge for the operation and maintenance of existing facilities (Table 42). Similarly,all three categories pay a one-time connection fee to cover the cost of construction of facilities to treat their wastewater flow and strength. swmmu�omsuwmnc wro 4-1 DRAFT-February 12, 1998 Table 4.2 Existing and New Users are Grouped into 3 Categories for Rates and Charges County Sanitation Districts of Orange County User Category User Charge Connection Fee Residential X X Commercial X X Industrial X X 2. User Charges User charges are used to cover the costs associated with existing facilities. These costs include the following: • Operation and Maintenance Costs • Capital Replacement and Improvement of Existing Facilities • Debt Service • Maintain Operating Reserve The requirements to be covered through user charges are shown in Figure 4.1. The total requirements for fiscal year 1995/96 are$66.7 million. These requirements to recover the user Replacement / O&M Costs Improvement (78%) (15%) Debt Service (7%) Total Requirements = $66.7 Million Figure 4.1 - Requirements to be Recovered Through User Charges s?.uoaeomeevomsnat[a wao 4-2 DRAFT- February 12, 1998 charges are further shown in Table 4.3. As shown in Table 4.3, an additional $21.8 million was applied from reserves in fiscal year 1995/96 to balance the budget. If was necessary to apply this money from reserves because CSDOC had not instituted a rate increase for seven years, while expenses had continually increased. Mol - igyt �o2beedtl Deer f�9rgear s - Operation and Maintenance $ 522 Replacement and Improvement $ 102 Debt Service $ 4.3 Total from User Charges $ 66.7 Net Reduction in Reserves $ 21.8 Total Net Requirement $ 88.5 Less Interest Fermin sand Pro Taxes Residential User Charges The residential user charge is calculated as follows: Total Residential Sewer Charge = Property Tax Sewer Service Fee As can be seen,the residential sewer service charge is a combination of property tax and sewer service fees. Therefore,the current residential sewer charge is a function of assessed property value as well as the district in which the residence is located. The 1995/96 residential sewer service fees by district are shown in Table 4.4. An example of how the residential sewer service charge might differ in the same district depending on assessed property value is shown in Table 4.5 .�1 $8324 $49.94 2 $71.52 $42.91 3 $73.89 $44.33 5 $96.75 $58.05 6 $76.47 $45.88 7 $50.09 $30.05 11 $60.00 $36.00 13 $100.00 $60.00 swmaomaavomsanTmo.w 4-3 DRAFT-February 12, 1998 .. �* >: _ _ `��a -.roc•- 7 -� $100,000 - $25.00 $71.52 $96.52 -.. $200,000 $50.00 $71.52 $121.62 District No. 2 Commercial User Charges Commercial user charges are based on the following formula: Total Count Commercial User Charge = Property Tax - Commercial Sewer Service Fee Currently,the commercial sewer service fee is 71.5 percent of the residential sewer service fee per thousand square feet of improved area. This commercial sewer service fee is independent of the type of establishment or business operation in the commercial category listing. For example,warehouses and restaurants would be charged the same sewer service fee per thousand square feet of improved area. The commercial sewer service fees by district are shown in Table 4.6 1 $59.52 2 $51.14 3 $52.83 5 $69.18 6 $54.68 7 $35.81 11 $42.90 13 $71.50 Industrial User Charges Industrial user charges are based on flow and strength as measured directly in the discharge of industrial users. Industrial user charges are set based on three classes of industrial users as shown in Figure 4.2. Class 1 industrial users are categorical industries that meet the requirements of the Environmental Protection Agency's pretreatment program. Class 2 swsoeeowvo TENMso 4-4 DRAFT- February 12, 1998 Class I °ilk y, r igh Class 11 Strength s Ill i • � Class III Domestic Figure 4.2 - Classes of Industrial Users industrial users are high strength users that are not listed as a categorical industry in Class 1. Class 3 industrial users are users with assumed domestic strength but are significant dischargers. Industrial Classes i and 2 are monitored for wastewater strength, BOD, and suspended solids. All three classes of industrial users are monitored for wastewater flow by reviewing metered water billings and making a correction for an assumed discharge to the sewer. An example of annual industrial user charge calculations for a high strength and low strength industry are presented in Figure 4.3. ova 3'e k U e Hl0h Stre0ptli 100 � �,. 3,500 2900 ;�475,000"� 2,500 2,100 S390.C90 5390.000 300 250 36,1100." 250 210 _$39 OW SKOW. . — .. •, •oimin z urn wm: •SY00.NNG •51165. 1.000 b B00 •$1BS2 LW DTSS Figure 4.3 - Example Industrial User Charge Calculations' swoeeoowsronrsanTsoa.wao 4-5 DRAFT- February 12, 1998 User Charge Comparison Table 4.7 presents a comparison of CSDOC user charges to a few other agency user charges. A detailed comparison, including a comparison to additional agencies, is presented in Appendix A. Table 4.7. User.Rate Comparison County Sanitation Districts of Orange County We9ory Hefo Los ArVID3G Iy SmDgga Phm:ax Rwrsloa Single Fem9y Reside:sa $73.32 $73.00 6269.DD $135 $157 Midt Fam9y Residerm $43.99 $44.00 8268.00 WA WA 1 Mach $49A5 $1350 $5,115 WA WA 2 Warehcusa.IDNn Storage 549.85 $1125 $27.38 WA WA 3 Nws"IGaenho",Drw4n IMm $49.85 $750 $2738 WA WA 4 Gal Cmase/CwW?a lAulo Repo. S49A5 SWO $119.31 WA WA seWd6mrerFinanmW IraetrhwvS vte 5 RV PeM $49A5 WA $65.62 WA WA 6 CMA der The" $49.85 $3525 521.90 WA WA 7 Olfm W ..ldmgrPrr ale Sded S4g95 $57.00 $219.00 WA WA 8 Prnleaponal Buildug $4985 $118.14 $288.49 WA WA 9 Bowhnq org $4995 $7425 $16425 WA WA 10 AudOnLmV umaemenl 54995 $9750 $38325 WA WA 11 Momarylcemetery S49.a5 566.75 $170.74 WA WA 12 Regoial Mali W,85 $9150 $16425 WA WA 13 Supamaikm $4935 $10050 $256.11 WA WA 145huppM C'emer $4995 $144.00 $355.88 WA WA 15 Heallh Spa w Showers P915 $168.00 $657.00 WA WA 16 carvvmh�cw op 54955 $195.75 $697.48 WA WA 17 Resteun S4g95 $660.00 $1.501.96 WA WA 18 car Was4cmrentord f;ass $1,033.50 $3.681.38 WA WA 19 Cmvalav Hm (per boll 524.92 $3525 SO." WA WA 20 HOWVMDWYRodnulg Hmee(per room) 51425 $3525 $44.74 WA WA 21 Baac Cor erdal $49,85 WA $2738 WA WA In L"e1 Flow 1gib)5,0D0 BOD(mg41300 TSS(Mall 300 51,944 5988 $5.475 $2,93) $3.637 mmeny n Flow WA 150,000 Boo(m9'A 1,090 TSS(mg4(270 $106,956 $55,443 $164250 $129= 5171,908 bdustry 43 FbwW 150,000 BDD(mg410 Tss(MA 0 $14,791 $8.719 $133,069 M'Me $55,681 s:LLaoeeomrafroarsua,Fn.xvo 4-6 DRAFT- February 12, 1998 Table 4.7. User Rate Comparison County..Sanitation Districts of Orange County Phmrdx ;;f9malk hMushy 44 _ Fkyw(gpd)5.ODD 130D(mgA)1,500 TSS(UO 750 $5,751 $2.908 $8,010 $5.885 $8.386 k4mri/5 Flow(gpd)239.507 BOD(n4A)22 TSS(mgA)25 $18,807 $16.440 $212,473 $93,456 $95.617 Industry 46 Flow 19Pd)490,102 BOD(mgA)138 TSS(mgA)103 $75.073 $55.951 $487,635 E2251059 $251.362 Industry N7. Flow(gpd)26248 BOD ImgA)860 TSS(m9A)480 $13,095 $9,722 $34,147 M,349 $30277 Induoy a8 Flow(Pd)132,212 BOD(miy)0 TSS(mgA)0 $11.040 $7,597 $117289 $49" $49.078 4du yire Raw(gpd)853251 SOD(mgA)40 TSS(m8A)0 $116,181 $56,693 $756,941 $331,159 $335,640 Industry010 Flow(gpd)88,571 SOD(mgA)3,421 T55(m8'A 400 $112,464 $81,971 $105,672 $155,346 .3223,181 WA The nla ation was not gathemil in this 3. EAsting Connection Fees Connection fees are used to cover the cost of expansion for new users. New users also pay a buy-in cost for the use of existing facilities. The connection fees for expansion,the total amount of capital costs to be raised by connection fees to the year 2020, are shown in Figure 4.4($574 million). The buy-in cost to existing facilities,also to be recovered through connection fees, is shown in Figure 4.5. s+.3mvoBlsen7r94 vmo 4-7 DRAFT-February 12, 1998 Expansion Replacement/ ($574 million) Improvement Connection Fees ($461 million) Charges n Total Capital Cost Requirements Through Year2020 = $1,035,000 Figure 4.4 - Connection Fees are Used to Cover all Costs of Expansion for New Users "Buy-in" Cost ($415 million) Total Value of Existing Facilities and Current Assets = $1 ,050,210,766 Figure 4.5 - New Users Pay a "Buy-in" Cost to Use Existing Facilities swoeaoo�aFvomsaa�oavmo 4-8 DRAFT- February 12, 1998 These two major components of connection fees have several accounting considerations as shown in Figure 4.6. Buy-n costs are primarily for common support facilities. Expansion costs cover the new facilities required to provide the unit capacity for new users. However, a number of considerations will be addressed later in estimating the cost for expansion. These include the consideration of average versus incremental cost as well as accounting for the cost for wet weather facilities and tracking them back to the appropriate user category. ., otttponent , r_ Consideration 'Buy4n" Costs Primarily for Common Support Facilities Expansion ♦ Average vs. Incremental Costs ♦ Wet Weather Facilities-Costs" Figure 4.6 - Major Components to Connection Fees and Accounting Considerations The existing connection fee method is as follows: Fee = [Replacement Value of Existing Facilities] - [Cost of New Facilities] [Exsting . New Equivalent Capacity Units'] -single Family Residence Equivalent The existing residential connection fee is shown in Figure 4.7 in comparison to other similar wastewater agencies for residential users. As can be seen,the District portion of the existing CSDOC residential connection fee compares favorably to the connection fees of other similar agencies. A comparison of a high strength industrial user with other similar wastewater agencies is shown in Figure 4.8. The rescinded excess capacity charge referred to in the figure was originally passed by the Board and then rescinded pending further evaluation of the rate structure. It was an effort to make industrial connection fees that were proportionate to the impact each discharger placed on the system. Also,a comparison of the industrial connection fee for a low strength industrial user is shown in Figure 4.9. A comparison of connection fees s:wsoeeoov�oRrsnahoe.wvo 4-9 DRAFT- February 12, 1998 Riverside CSDOC (Existing) Sacramento - Walnut Creek San Diego l.os Angeles (County) ..-- San Jose Oakland Los Angeles (City) OlaWet Phoenlxz Lo�l Agenry San Francisco 0 Figure 4.7 - Residential Connection Fee Comparison Concord IS Sacramento tb Son Diego 1.5 sawLos Angeles(County) 1.2 Oak .Flow 150,000 gpd Son Jobe O.n tl 1 .BOD 1,090 mg/L Son o .TSS no mg/L Los Angeles (City) _ C71 _ .130.000 CSDOC (Existing) building area Riverside CAST Phoenix 0.030 San Francisco o (_ t1Ne1 Exeeve�,p,dty charge Figure 4.8 - Industrial Connection Fee Compa for a High Strength Industrial User for commercial users by category to several other agencies is presented in Table 4.8. A detailed comparison of connection fees including a comparison to additional agencies, is presented in Appendix A. s�Teb.wro 4-10 DRAFT- February 12, 1998 .r. nection Fee {MIIIIOns of Dollars) y 2 3 Concord 1b San Diego 13 Sacramento 1, Baud on: Los Angeles (County) .Flow 160,000 gpd Oakland OOB .SOD asd mg/L San Jose 0.es .TSS 270 mg/L Los Angeles (City) 1t� .130,000 of of Improved CSDOC (Existing) BAN^-10" building area Riverside onsr Phoenix um0 . . San Francisco --i Rescinded Excess Cspecily Charge Figure 4.9 - Industrial Connecttion Fee Comparison for a Low Strength Idustrial User a"Seg�ie94� ' 1 Church 14,4g2 $6,798 $3,694 $7,238 $5,825 2 Warehouse/Open Storage 20,543 $9.6% $3,598 $8,1D5 $B,3D9 3 Nursery/Greenhouse,Drive-in 8,020 $3.785 $1.080 $1,950 SU44 Theater 4 Golf Course/Camp/Park/Auto 15,979 $7,542 $8,208 $16,393 $6,463 RepairSeles/StorefFinancial Ins0N0on/Service Station 5 RV Park 8,D51 $3,800 $2,484 $5,336 $3,266 6 Cub/Indoor Theater 34,295 $16,187 $21,760 $43,483 $13.870 7 Office Building/Priveta School 17,556 $8,286 $18,058 $35,795 $7.1 DO 8 Professional Building 7,685 $3,627 $11,850 $23,553 $3,108 9 BoWing/Skating 31,893 $15,D53 $35,736 $85,370 $12,899 10 Audhonum/Amuument 67,981 $32,087 $121.142 $242,SD4 $27,495 11 Mortuary/Cemetery 15598 $7,362 $15,163 $35,823 $6,309 12 Regional Mall 139,036 $65,625 $183,949 $448,655 $56232 13 Supermarket 19276 $9.098 $28,1D4 $66,357 $7,796 14 Shopping Center 35,385 $16,702 $79,8D9 $45,483 $14,311 15 HeeOh Spa w/showers 47,071 $22.218 $144,338 $34,462 $19,038 16 Car Wash-Coin Op 2,433 $1,148 $11,494 $9,863 $984 17 Restaurant 4,245 $2,0D3 $39,312 $62,458 $1,717 18 Car Wash 3213 $1,516 $44,546 $68,845 $1299 19 Convalescent Home 31.171 $14,713 $23,476 $39,731 $12,607 20 HoteVMotelfRooming House 44210 $20,867 $93,483 $32,358 $17,880 21 Basic Commercial 18,449 $8,708 R1 12I RI (1) Assumes that one CSDOC capacity unit equals one San Diego capacity unit. 2 Not a connection fee catectory. sxloeeome�omsnrlmt cow 4-11 DRAFT- February 12, 1998 J. Chapter 5 As discussed,the three categories, residential, commercial, and industrial are used to group users of the wastewater system. The users are billed according to wastewater flow and - wastewater strength. Wastewater strength is characterized as concentration or pounds discharged of biochemical oxygen demand (BOD) and total suspended solids(M). Also, each of the major categories are further divided into individual user categories,especially the commercial category. The discharges from the industrial users are metered and measured directly. The discharges from the residential users are estimated based on measurements performed by CSDOC of local collection system areas in the past. The commercial category is the subject of the following discussion with respect to determining the existing and projected user wastewater flows and characteristics. 1. Review of Commercial User Categories Currently,CSDOC uses the property tax rolls for billing purposes. There are 105 property tax land use categories as illustrated in Figure 5.1. .t7fi" g Aattarl� X �r,iyc i 7 Car Wall 2 2 10 MCI tt Is 2 RecTavrant Regional Mag Warehouse 99 Figure 5.1 - Property Tax Land Use Categories - sxwaeomaeromssa,Eas.wao 5-1 DRAFT-February 12, 1998 The approach to simplifying the commercial billing categories involved several steps. The first was to combine categories with identical or similar wastewater flows and strengths. The second was to combine categories with a small number of billing accounts and revenue generated. The rate advisory committee input was solicited in both the development of the categories and the simplification. The overall approach to developing commercial categories is shown in Figure 5.2. As shown in Figure 5.2,the property tax land use categories are compared to the wastewater billing categories as developed by other similar wastewater agencies. In that comparison,the linkage to property tax categories for ease of collection was made. Also,the State Water Resources Control Board guidelines and data from other agencies was used to help simplify the categories where appropriate. The overall goal was to simplify implementation of billing for commercial categories without sacrificing fairness. The overall result of the simplification process was to reduce the 105 property land use categories to 21. Figure 52 - Approach to Developing Commercial Catgorles The proposed 21 categories are presented in Table 5.1. Also,the wastewater how, BOD,and suspended solids concentrations of each of these categories is presented in Table 5.2. sw3mearv€romsaarFos.wao 5-2 DRAFT- February 12, 1998 .er. Auditorium/Amusement Office Building Convalescent Home (per bed) Bowling/Skating Private School HoteVMotel/RDoming House Car Wash -Coin-Op Professional Building (per room) Car Wash -Conventional Regional Mall Church Restaurant Club Service Station/Auto Repair- _ Drive-in Theater Sales Golf Course/Camp Park Shopping Center Health Spa w/Showers Store/Financial Institution Indoor Theater Supermarket Mortuary/Cemetery Warehousing/Open Storage Nursery/Greenhouse RV Park- - - - - - - r , • asap* NIEO ...v., dm Chumh 50 252 254 - Warehouse/Open Storage(1) 25 552 432 Drive-in Theater, Nursery/Greenhouse(1) 23 267 294 Service Station/Auto Repair-Sales, Store/Rnancial 100 258 276 Institution, Golf Course/Camp Park (2) RV Park (2) 55 371 305 Club, Indoor Theater 125 259 264 Office Building, Private School 2D0 258 270 Professional Building 300 258 272 Bowling/Skating 150 703 440 Auditorium/Amusement 350 257 271 Mortuary/Cemetery 100 797 803 Regional Mall 150 839 616 Supermarket 150 799 799 Shopping Center 80 600 400 Health Spa w Showers 86 181 207 Car Wash-Coin Op 700 20 150 Restaurant 1000 576 303 Car Wash-Conventional 3700 20 150 Convalescent Home 125 per bed 259 269 Hotel/Motel/Rooming House 86 per room 181 207 Basic Commercial 255 247 247 (1) (2) Possible to Combine The assignment of wastewater flows and Strength of each commercial category was made as a result of the comparison to other similar wastewater agencies. In general, most of the commercial categories match the wastewater flow and strengths assigned by the County sxweamv+aomsnarms.wso 5-3 DRAFT- February 12, 1998 Sanitation Districts of Los Angeles County (CSDLAC). The CSDLAC was selected because of its relative proximity to the CSDOC service area and because of its relatively extensive and ongoing program to update and revise the commercial billing category flows and strengths. One of the issues that arose in developing the new commercial categories listed were that some categories do not show up on the current property tax rolls. The categories that do not show up are laundromat, car wash/recycle, and public schools/universities. 2. Development of User Flows and Strengths An engineering mass balance was performed to verify the assumed flow and loads from each of the major user categories. The overall approach used to confirm commercial billing flows and strengths is presented in Figure 5.3. OtherAgencies Figure 5.3 - Approach to Confirm Commercial Billing Flow and Strengths The overall treatment plant mass balance was conducted as shown in Figure 5.4. As shown in Figure 5.4, the industrial Class 1, 2, and 3 users are metered and monitored directly. Therefore,their industrial flows and loadings are well known. The residential flows and loads, although not measured directly, are based on a CSDOC study of flows and loads for single and -- s:waoeI�roarsvwicosWD 5-4 DRAFT- February 12, 1998 li Metered j C� Estimated ❑000 Industrial Residential Class 3 sommimidEom Commercial Industrial Class 1 &2 Figure 5.4 - Overall Treatment Plant Mass Balance multi-family residential units,which is a good basis for residential flows and loads. What remained to be calculated was the commercial contributions to the treatment plant. This calculation was made given the improved square footage from the tax rolls and the assumed commercial category flows and strengths. A comparison of the calculated versus the actual measured values at the treatment plant was then used to make adjustments to the wastewater flow, BOD and TSS for residential and commercial categories to essentially calibrate the system. A summary of the final headworks balance and adjusted flow and load factors for the residential, commercial, and industrial classes is shown in Table 5.3. Table 5.3 Adjusted Flow and Load Factors County Sanitation Districts of Orange County Category Flow (gpd) SOD(mg/L) TSS(mg/L) Single Family Residence 253 206 219 Multi Family Residence 177 206 219 Church 50 210 234 Warehouse/Open Storage 25 460 383 Drive-in Theater, Nursery/Greenhouse 23 222 261 s waoaeooweromsruTEos.wro 5-5 DRAFT- February 12, 1998 Service Station/Auto Repair-Sales, 99 _215 245 Store/Financial Institution, Golf Course/Camp Pads RV Park 55 3D9 270 Club, Indoor Theater 124 216 234 Office Building, Private School 198 215 239 Professional Building 297 215 241 Bowling/Skating 149 586 390 Auditorium/Amusement 347 214 240 Mortuary/Cemetery 99 664 712 Regional Mall 149 699 546 Supermarket 149 666 708 Shopping Center 79 500 354 Health Spa w Showers 85 151 183 Car Wash-Coin Op 694 17 133 Restaurant 992 480 269 Car Wash-Conventional 3669 17 133 Convalescent Home 124 per bed 216 238 Holel/Motel/Rooming House 85 per room 151 183 Basic Commercial 253 206 219 sv7oeeDNEP0f"VMT8 NPD 54 DRAFT-February 12, 1998 Chapter 6 • 1. Introduction This chapter summarizes the existing costs of operation and maintenance of the joint works facilities as well as the projected capital needs to accommodate growth through the year 2020. The existing operation and maintenance costs to be recovered through user charges are based on the fiscal year 1995M actual values. The projected capital costs are based on the 1989 Master Plan and subsequent revision as updated in the fiscal year 1995196 budget. 2. Operation and Maintenance/Capital Costs Operation and Maintenance Costs A schematic of the major treatment plant processes is shown in Figure 6.1. In general,the major treatment plant processes begin with the interceptors and continue through primary and secondary treatment including solids handling and disposal. Final treated effluent is discharged to the Pacific Ocean through a deep water outfall. A summary of the operation and maintenance costs by major treatment process is shown In Table 6.1. h is important to note that in Table 6.1,the costs do not Include the Interceptor operation and related maintenance expenses. Collection 8 Diversbn - 127,490 Interplant - $8.353 Influent Pumping $1,445,087 Primary Sedimentation $2,336,532 Activated Sludge Process $1,883,543 Solids Thickening $123,092 Trickling Filters $70,101 Secondary Sedimentation $139,842 Digestion $2,218,854 Oxygen Activated Sludge $536.119 Solids Handling $2,155.948 Solids Disposal $6.011,625 Effluent Disposal $741,947 General Treatment Operations $34,906,908 Total $52,705,441 susoaeowr<romsuwtmaw.v 6-1 DRAFT-February 17, 1998 Primary Activated Sedimentation and Sludge/Trickling Grit Removal Fitter Secondary Interceptors Clarification Influent Pumping Solids Solids Handling Digestion Solids Thickenin Disposal Effluent Pacific Pumping Ocean Figure 6.1 - CSDOC Treatment Facilities Process Schematic Capital Improvement Plan Costs The capital costs estimated to provide for new users as well as to replace and improve facilities for existing users are illustrated in Figure 6.2. The capital costs are allocated to replacement/ improvement and expansion in Table 6.2. As shown, approximately 54 percent of the almost $1 billion is allocated to expansion and related costs for new users. These are the costs that will be recovered through connection fees. The remaining 45 percent of the capital costs will be recovered from existing users through sewer user charges. Table 6.2 Capital Costs are Allocated to Replacementllmprovement & Expansion County Sanitallon Districts of Orange County %Allocation $Allocation (Millions) Replacement/Improvement Expansion Replacement/improvement Expansion 46% 54% $436 $514 s 6-2 DRAFT- February 17, 1998 Through 2020 (in Millions) Interplant $437.2 & Joint Works Equipment Items $24.3 Plant No.1 Special Plant No 2 $347.5 . Projects$15.4 $i 25.fi $950 Million for 30-years Figure 6.2 - Capital Improvement Plan 3. Allocation of Costs to Flow and Strength This section presents the approach and results of an allocation of operation and maintenance as well as capital costs to wastewater now and strength. These allocations are important in being able to track the cost for treating a gallon of wastewater and a pound of pollutant back to the users. A detailed description of these allocations is presented in Appendix B. Operation and Maintenance Costs The overall process to allocate operation and maintenance costs to flow and strength is presented below: 1. Define unit processes. 2. Determine O&M costs for each unit process. 3. Assign process costs to flow and/or strength. 4. Add O&M costs for entire plant by flow and strength. Basically,the process consists of identifying the unit processes and their associated costs of operation. Next,each process cost is allocated to wastewater flow and/or loading based on an examination of the primary purpose of the process. The result is an allocation of annual costs to either wastewater flow or wastewater strength. s.wmearr�vomsaatEos.wvo 6-3 DRAFT-February 17, 1998 The operation and maintenance allocation percentages to wastewater flow and strength are shown in Table 6.3 for each of the major treatment processes. As shown, the cost to operate each process was allocated based on an engineering examination of the purpose of the process and its primary function handling wastewater or treating wastewater strength. The overall comparison of operation and maintenance costs allocation is compared to the existing operation and maintenance allocation in Figure 6.3. As shown,the revised allocations of operation and maintenance costs to flow and strength do not depart significantly from existing values. Table 6.3 - Oporatlon and Maintenance Allocation Percentages County Sanitation Districts of Orange County Flow BOD TSS Collection and Diversion 90 5 5 Interplant 90 5 5 Influent Pumping 75 5 20 Primary Sedimentation 15 25 60 Activated Sludge Process - 100 - Oxygen Activated Sludge - 100 - Trickling Filters - 100 - Secondary Sedimentation - 100 - Sludge Thickening - 100 - Digestion - 25 75 Solids Handling - 20 60 Solids Disposal - 45 55 Effluent Disposal 100 - - Cost Weighted Averse 13 40 47 100 ■Existing ■Ahemative 75 Percent of Total 49 O&M Cost so 37 25 14 13 0 Flow SOD TSS Figure 6.3 Comparison of O&M Cost Allocation to Flow and Strength s�romsw�n=os'wvo°Oim"" 6-4 DRAFT- February 17, 1998 a A summary of the operation and maintenance costs calculated for wastewater flow and strength are shown in Figure 6.4. The calculation is made using the cost weighted average for wastewater flow and strength as shown in Table 6.3 and applied to the total operation and maintenance costs as shown in Table 6.1. FLOW $6,51,707 13% S62/MG S65/MG (14%) BOD $21,082,176 40% $13211,000 Ibs $116/1,0001bs (37%) TBs $24,771,SW 47% $156/1,0001ba $159/1,0001bs (49%) Total O&M Cost $52,705,441 Figure 6.4 Operations and Maintenance Costs Calculated for Flow and Strength Capital Costs The overall process allocate capital costs to wastewater flow and strength is shown below: 1. Define unit processes. 2. Determine capital costs for each. 3. Assign process costs to flow. 4. Add capital costs for entire plant by flow and strength. This process of allocation is similar to the process for allocating operation and maintenance costs. Basically,the difference In the capital cost allocation is in the engineering judgment as to the costs associated with constructing facilities versus the cost associated with operating and maintaining the same facilities. The recommended capital allocation percentages are shown in Table 6.4. A comparison of the revised capital allocation percentages to the eAsting capital allocation percentages is shown in Figure 6.5. As shown,there is an increase in the capital costs allocated to flow as opposed to wastewater strength with the revised cost allocations. sx3D13MVEromsaaTE a Mo 6-5 DRAFT- February 17, 1998 100 ®Existing ■Alternative 75 Percent of Total Replacement I So - 49 Improvement 37 Cost (%) 32 25 24 . 14 0 M , Flow BOD TSS Figure 6.5 Comparison of Replacement/Improvement Allocation to Flow & Strength Table 6.4 Recommended Capital Allocation Percentages County Sanitation Districts of Orange County Flow BOD TSS Collection and Diversion 90 10 - interplant 90 10 - Influent Pump Slation 85 5 10 Primary Sedimentation - 30 70 Activated Sludge Process - 100 - Oxygen Activated Sludge - 100 - Trickling Filters 45 30 25 Secondary Sedimentation - 70 30 Sludge Thickening - 100 - Digestion - 25 75 Solids Handling - 20 80 Solids Disposal - 45 55 Effluent Disposal 100 - - Cost Weighted Average 44 32 24 The capital replacement/improvement costs calculated for flow and strength are shown in Figure 6.6. The costs calculated in Figure 6.6 are determined by applying the percentages from Table 6.4 to the total capital costs to be raised through replacement/improvement costs. - suweeom�aans,juicos.ww 6-6 DRAFT- February 17, 1998 _..Rewmmonded Allocations <Rate , ExisOng Componetn. ^.- Amount Penlent Per Unit ;Allocation(%) FLOW $8,800,000 44% $105/MG $32/MG (14%) BOD f8,4001000 32% $40/1,000 We $42/1,000 Ibs (37%) Tss $4,800,000 24% $31/1,000 We $57/1,00011)8 (49%) Total Annual $20,000,000 •Average roar per year through 20M CepRHI Cost (Based on 190 Master Plan) Figure 6.6 Capital Replacementlimprovement Costs Calculated for Flow and Strength s�1rae.vnro 6-7 DRAFT-February 17, 1998 Chapter 7 1. Overall Methodology for Determining User Charges There are several key issues to consider in developing user charges. These key issues include the following: • Single family versus multi-family. • Potential Impact of Proposition 218. • Cost versus benefits of new programs. • Impacts of alternative user charge methods. The wasting rate structure recognizes that multi-family homes typically discharge less wastewater flow and pollutant load than do single family homes. This results in a mufti-family home being charged less than a single family home. Recent flow measurements collected during the development of the strategic plan have resulted in a new determination of the fraction of single family home to be charged multi-family home users. The new information on wastewater flows for multi-family homes is shown in Table 7.1. The new flow measurements result in a factor of 0.7 times a single family home for multi-family versus the existing 0.6. F)dsting Definition Mufti-Family= 0.6 x Single Family Results of recent Flow Measurements Multi-Family= 0.7 x Single Family A major consideration In the determination of new rates is the recent implementation and passage in November 1996 of Proposition 218. The passage of Proposition 218 is new and coincident with this rate structure review. Proposition 218 is still subject to interpretation. Basically, however,there is agreement that Proposition 218 requires a"proportionate share" approach to setting wastewater user charges. The determination of wastewater connection fees is not affected by Proposition 218. In summary, Proposition 218 may limit the flexibility to set an alternative rate structures that departs significantly from the philosophy of'proportionate share." it is also important to recognize that additional administrative costs are associated with any new rate structure that CSDOC may implement. These additional costs are associated with field monitoring and data acquisition necessary to maintain the record of wastewater flows and loads generated by each user category. These include additional laboratory analyses,field sampling, and accounting and analyses costs. saaasserrmraEsomsran�r.wro 7-1 DRAFT-February 18, 1998 2. Development of Alternative User Charge Methods This study reviewed alternative methods for establishing wastewater user charges. The process used to establish other user charge methods began with identifying the major cost components recovered through user charges. The cost components were tracked back to the - residential, commercial, and industrial categories based on the allocations presented in Chapter 6 and the estimated or measured wastewater flows and loads from each user. Alternative user charge methods to be considered based on broad categories of classification are as follows: • Maintain existing structure. • Incentive rates. • Other user charge methods. The.major components of user charges and accounting considerations are shown in Table 7.2. Basically, user charges recover operation and maintenance costs, including ongoing replacement/improvement costs, as well as debt service and other minor expenses. As shown in Table 7.2, operation and maintenance costs can further be recognized to fall under either a fixed or constant cost category and a variable or incremental cost category. The constant costs would be those that are independent of the total amount of flow discharged to the system or of the loading. A typical constant operation and maintenance cost,for example, would be the cost associated with the administration portion of the budget. Table 7.2 Major Components of User Charges and Accounting Considerations County Sanitation Districts of Orange County Component Consideration O&M Costs Constant Costs and Incremental Costs On-going Replacement/Improvement Primary Constant Costs Ongoing replacementlmprovement costs for existing facilities are primarily driven by the exposure of materials in facilities to the elements. Therefore,these costs are primarily constant and relatively independent of the volume of wastewater flow that is accommodated by the system. Based on these considerations of the major cost components of user charges, several different approaches can be used in recovering the costs from each of the major user categories. These approaches are presented in Table 7.3. As shown in Table 7.3,the operation and maintenance cost consisting of constant and incremental portions as well as the replacement and improvement costs are summarized as to who pays. s:�aoeaomasvoarsnarsazvmo 7-2 DRAFT- February 18, 1998 O&M Constant Portion ✓ Incremental Portion ✓ ✓ ✓ Replacement/Improvement ✓ The development of alternative user charge methods recognizes that there might be a rationale developed for why the constant portion of the operation and maintenance cost would be paid for by just the residential users. The wastewater treatment facilities are built and maintained primarily for the residential users which make up the majority of the service area. Commercial and industrial users are those that discharge to the regional system, but to some extent also have the capability of moving their operation to another area. Residential units do not have this potential impact on the system. If an industry or commercial establishment does move out of the service area,the constant portion of the operation and maintenance costs would still exist, but the incremental portion would decrease. Therefore,the residential users would continue to pay for the constant portion of the operation and maintenance costs whereas the incremental costs associated with operation and maintenance that are a function of increases in flow or strength (by commercial or industry moving in and out of the area)would be paid for by the commercial and industrial users. Similarly, an argument can be made that the residential users should pay for the replacement and improvement costs to facilities as those costs would be incurred regardless of whether commercial or industrial users remain in the system. Based on these considerations, alternative rates for each of these different approaches were developed. 3. Comparison of Ebsting and Alternative User Charges The basic assumptions made in comparing existing versus alternative user charges are (1) funding levels are based on fiscal year 1995/96 requirements, and (2)the user charge is calculated as an average for all districts. The alternative rates change the allocation of operation and maintenance and capital costs to wastewater flow and strength. Also,the revision of the commercial user categories based on flows and strengths impacts the calculated rates for the commercial users. The different user charge methods that were developed in this study include the following: "Same Average Cost."This means that the same average cost per gallon and cost per pound to treat wastewater flow and load would be charged to every user. s:VQIDa9DMFEPORTSMTED7. o 7-3 DRAFT- February 18, 1998 • Constant Operation and Maintenance- Residential Only. This approach requires that commercial and industrial users would not pay for costs associated with constant operation and maintenance costs, only the incremental portion. • Replacement/Improvement- Residential Only. This approach would require that commercial and industrial users would not pay for the replacement/improvement costs. Constant Operation and Maintenance and Replacement/Improvement- Residential Only. This would combine the requirement that commercial and industrial users would not pay the constant operation and maintenance portion and the replacement/improvement portion. A summary of the user charge rates calculated for each of the different methods is shown in . - Figure 7.1 for residential and a high strength industrial user. As shown in Figure 7.1,the impact to residential users varies from a reduction of 3 percent to an increase of 44 percent depending on the method chosen. The impact on a high strength industrial user is the opposite of and proportional to the increase or decrease seen in the residential sector. User Charge Method Residential User High Strength t Industrial User "Same Average Cost" FW=-3% -4% Constant O&M Enan=+36% =00 -68% Residential Only Replacement/ Improvement +8% O it -21% Residential Only Constant O&M and Replacement/Improvement r +44% $16,000 Residential Only • Not reflective of all Industry or commercial Figure 7.1 - Should Different Residential and Industrial Cost Allocations be Applied The impact of the various user charge methods on selected commercial categories is shown in Rgure 7.2. Also,the impact of the"same average cost" approach on industrial users is illustrated in Figure 7.3. It is important to recognize that the biggest impact that these different user charge methods has is to substantially change the distribution of who pays within the commercial and industrial classes. s: aomsaa 7.w 7-4 DRAFT- February 18, 1998 "Same Average CosC S20 5416 $12 Constant O&M 5211 57 5140 $4 Residential Only Replacement/Improvement 5461 $77 5343 $10 Residential Only Constant O&M and Replacement/ Improvement S93 $67 $2 Residential Only •Charge per 1000 SF unlen atnerwLm notM Figure 7.2 - Should Different Commercial Cost Allocations be Applied Rate Decrease Rate Increase 50 50% 40 s:. 30 _10 20eS 10 6% =s w 25 20 15 10 5 0 5 10 15 20 % Rate Decrease % Rate Increase Figure 7.3 - Impact of "Same Average Cost" on Industrial Users - svwesomraEvumsw,�m.wao 7-5 DRAFT- February 18, 1998 A comparison of the user charge methods by category is presented in Figure 7.4. As shown in Figure 7.4, the cost that would be charged to residential, commercial, and industrial vary significantly according to the user charge method. Residential Commercial ®62% 9% 68% 8"/0 Industrial -- 29% 24% 'Same Average Cost' Replacement/ Improvement Residential Only 87% 3% 93% 2% 10% 5% Constant O&M Constant O&M Residential Only and Replacement/ Improvement Residential Only Figure 7.4 - Comparison of User Charge Methods by Category A comparison of the revenue raised by user category using the existing and "same average cost" user charge methods is shown in Figure 7.5. Again, it is important to recognize that, in general, the"same average cost" approach raises approximately the same total amount of money from each of the user categories. The difference, however, is in the distribution of those costs among the categories within the commercial and industrial classes. The commercial category is impacted the most by the'same average cost" user charge. The commercial categories that are impacted the most are shown on Figure 7.6. A listing of the residential and all of the commercial categories identified earlier and a comparison of the existing versus the"same average cost" approach is shown in Table 7.4. s:us GDOVIeaomswnha7. M 7-6 DRAFT- February 18, 1998 Residential Residential (61%) (61%) Industrial Industrial (10%) (10%) Commercial Commercial (29%) (29%) Existing "Same Average Cost" Figure 7.5 - Comparion of Revenues Raised by Category Using the Existing and "Same Average Cost" User Charge Methods Table.7.4 Residential and Commercial:User Charges Based on 'Same Average Cost" County Sanitation Districts of Orange County "Same Dollar Percent Fxisting Average Increase Increase Category Annual Rate Cost" (Decrease) (Decrease) Residential Single Family Residence $73.32 $70.60 ($2.72) (49/6) Multi-Family Residence $43.99 $49.42 $5.43 121Y. Commercial (per 1000 sf) Church $49.85 $14.28 ($35.57) (71%) Warehouse/Open Storage $49.85 $11.53 ($38.32) (770/6) Nursery/Greenhouse, Drive-In- $49.85 $6.98 ($42.87) (861%) Theater Golf Course/Camp Park, $49.85 $29.28 ($20.57) (41%) Store/Financial Institution, Service Station/Auto Repairs- Sales RV Park $49.85 $18.96 ($30.89) (62%) Ciub/Indoor Theater $49.85 $36.02 ($13.83) (28%) Office Building/Private School $49.85 $58.06 $8.21 17% Professional Building $49.85 $87.33 $37.48 75% Bowling/Skating 9.85 $77.68 $27.83 56% - saawaeoovaEvomsnarcar.wro 7-7 DRAFT-February 18, 1998 Auditorium/Amusement $49.85 $101.62 1 $51.77 104% Mortuary/Cemetery $49.85 $70.68 $20.83 41% Regional mail $49.85 $95.84 $45.99 98% Supermarket $49.85 $105.12 $55.27 111% _ Shopping Center $49.85 $37.19 ($12.66) (250%) Health Spa w Showers $49.85 $20.38 ($21.49) (590/6) Car Wash-Coin Op $49.85 $109.53 $59.68 12WY, Restaurant $49.85 $416.18 $366.33 735% Car Wash-Conventional $49.85 $578.96 $529.11 1,062Yo Convalescent Home (per bed) $24.92 $3628 $11.36 46% Hotel/Motel/Rooming House $14.95 $20.33 $5.43 36% (per room) Basic Commercial $49.85 $70.60 S20.75 42% r Car Wash(Conventional) 3,213 $160 $1.860 $1,700 1,062% Restaurant 4.245 $212 $1,767 $1,555 735% Car Wash 2,433 $121 $266 $145 120% (Coin-up) AuAmorium/ nt 67,981 $3,389 $6,908 $3,519 104% Supermarket 19,276 $961 $2,026 $1,065 111% Figure 7.6 - Commercial Categories Impacted the Most by "Same Average Cost' User Charges SAQOODMPORTS TE07.w 7-8 DRAFT- February 18, 1998 N.. Chapter 8 CONNECTION 1. Overall Methodology for Determining Connection Fees The key Issues to consider in developing connection fees are as follows: • Calculation Method • Payment Method - - One-time Fee - Annual Fee • Residential Fee - Single Family Versus Mufti-family - Tiered • Costs Versus Benefits of New Programs The major consideration is the method of calculation. Also important, however, is the method of payment,whether it be a one-time fee or a fee paid over time. Another key issue is the residential fee for a single family versus a mufti-family home and whether they should be equal or whether they should be in some fixed proportion, similar to user charges. In addition,the issue of a tiered connection fee structure for residential connection fees has been raised in the past. Finally,cost versus benefits for any new connection fee program are an important consideration. Connection fee methods to be evaluated can be broken into three major categories. These include the existing method and two categories of alternative methods: • Existing method. • 'AEI users pay the same average cost for the same use of facilities.' • Incentive connection fee methods. The existing method has already been described. The method that would charge all users the same average cost addresses some concems regarding the existing method,which is based on square footage and not on the amount of flow and loading discharged. Other connection fee methods that may be considered include the concept of an incentive fee that would be charged to certain classes of users to provide economic incentives in the community. The concept of using utility rates,and especially wastewater rates and fees,to provide an economic incentive in the community is relatively new. The rationale for this approach is bome by the recognition that the purpose of a utility,including a wastewater utility,is to maximize the benefits of service to all users within the service area. Broadly stated,the current economic environment in California has resulted in cities competing for industries and the jobs and _ payroll and economic activity that they bring into a community. This overall approach recognizes that there may be some real benefits to the community if certain industrial users are - &w B0arrrronrSMTED .wro 8-1 DRAFT-February 12, 1998 charged only for their impact on the system, and not the same average costs that all users are charged. The reasoning for an industrial economic Incentive fee begins with the recognition that wastewater utilities are large, regulated monopolies. The reason wastewater utilities are large and regulated is due to the fact that they enjoy an economy of scale. it is cheaper to treat, on the average, a large number of users in a wastewater system than a smaller number of users. The wastewater system has been constructed and is operated mainly for the residential community. The residential community is always present in a wastewater system. A house may be sold and exchange ownership but in general is always occupied. This is in contrast to _ industry which has greater flexibility in location of its operation. An industry can elect to relocate or to suspend operations resulting in a change in amount of discharge to the treatment system. Therefore, if the wastewater system exists primarily to serve residential users, and industrial users are required to connect to the system,then it may be appropriate to charge the fixed cost to the residential users. The industrial users would be charged just for the incremental costs associated with their increased flow and loading to the system. In exchange for a reduced incremental cost structure, Industries would be required to improve their source control and waste minimization efforts. The guiding philosophy of the existing and ahemative connection fee methods is presented in Table 8.1. Existing Method 'All users past and present pay the same" 'All users from now on will pay the same" Alternative Methods 'Incentive fee structure to help maintain economic activity' s:�TENNvo 8-2 DRAFT-February 12, 1998 2. Development of Alternative Connection Fee Methods The overall approach to developing altemative connection fee methods is the following: • Identify major cost components recovered through connection fees. • Track cost components back to residential,commercial, and industrial categories based on cost of service methods. • Establish connection fees for each category. The major components of connection fees and associated accounting considerations is presented In Table 8.2. As discussed, buy-in costs are primarily for the recovery of common support facilities such as administration or flow distribution channels, and major electrical and utility infrastructure,which are sized to accomodate existing and future users when constructed. Expansion costs also have components of average or incremental costs,as well separate costs for wet weather facilities,which may be attributable to certain classes of users. aN d`."Buy-in" Costs Primarily for Common Support Facilities Average vs. Incremental Costs Expansion Wet Weather Facilities Costs The options for connection fee methods considered in this study are shown in Table 8.3. As shown, and following the philosophy of fixed versus incremental costs presented in the user charge discussion, options for the residential users to pay the buyin costs and the constant portion of the expansion costs for the connection fees have been developed. Unique to the connection fee calculation, however, is the consideration of wet weather facilities costs. .Q.j1 1 1 1, �DRfiAlNiC4Va�1' 0h�d7t�`e`{ °.a�`c''b �`,,;�^ ta11Y�Bang3ti0t1�D_js,INd34I 0 Ut1 ! ,.c, a .-'+"' •-t*m.�c"�'a rA 7�bt10nfgr ru at,, awl ��ln±Jlis�0, "Buy-In" Costs X Constant X Expansion Costs Incremental X X X Wet Weather Facilities Costs X X X Wet weather facilities costs are for those major pipeline and hydraulic structures and equipment that are related to the treatment of wet weather flows. Studies of the source of wet weather flows have long recognized that residential users contribute the majority of the wet su+oaeomesromsnnhoe.vmo 8-3 DRAFT-February 12, 1998 weather infiltration and inflow. This is because of the substantial amount of shallow, small diameter, typically poorly constructed lateral pipe serving to connect the residential users to the main collection system for CSDOC. This creates a large potential for cracks and dropped joint openings for the infiltration of rainfall and groundwater. Therefore, one connection tee method considered in this study would allocate the majority of wet wether costs to be paid for by the residential community. The calculation of existing versus other Industrial/commercial connection fee methods is shown in Table 8.4. As discussed,the existing connection fee for commercial and industrial users is based on a fee per thousand square feet of improved area. The altemative methods proposed would base the connection fee on the ability to discharge wastewater flow and strength. Therefore,the alternative methods would charge commercial and industrial users based on a dollar per gallon and a dollar per pound of BOD or pound of suspended solids. Existing Fee= $472 per 1,gog sf Altemalive Methods' Fee = S (ROM - S (BOU) (TSS) gal Ib lb Also basis for Excess Capacity Charge 3. Comparison of E)dsting and Alternative Connection Fees A comparison of the residential and a typical high strength industrial user are shown in Figure 8.1 for each of the connection fee methods considered. A comparison of four major commercial categories for each of the four different connection fee methods concerned is presented In Figure 82. As shown in Figure 8.3,each of the different connection fee methods results In a different allocation of the total connection fees raised to the residential,commercial, and industrial categories. As anticipated, allocating increasing amounts of fixed costs to the residential users results in an increased proportion of the cost to be bome by the residential community,which translates into reductions in the commercial and industrial categories. A key issue addressed during the RAC process is whether a tiered residential connection fee should be considered. Typical categories which might be further considered for residential connection fees are shown in Table 8.5. Basically,this approach would recognize that there is a different capacity to discharge depending on the number of bedrooms or size and type of residential community considered. s:wweeomrrEroarssaime.wvo 8-4 DRAFT-February 12, 1998 a Connection Fees Connection Fee Method Residential High Strength User Industrial User (1) "Same Average Cost" "Buy-In" Costs Residential Only 'Incremental' Expansion M Costs for Industrial /Commercial Wet Weather Facilities Method (1) Not Representaffve of all Industry or Commercial Figure 8.1 - Residential and Industrial Connection Fee Comparison Commercial Categories Connection Fee Method t$12160WO Hotel/Motel Restaurant Warehouse re (Par Room) "Same Average Cost ,600 $5,050 "Buyan"Costs-Residential Only0 3,900 S3,100 "Incramenter nslon Costs 1,900 613,900 $1,800 for Commerce /Industrial Wet Weather Facilities Method 00 S3,900 Figure 8.2 - Commercial Category Connection Fee Comparison s:uweaomraEtonrsaalEoe.vmo 8-5 DRAFT- February 12, 1998 Table 8.5 Possible Tiered Residential Connection Fee Categories County Sanitation Districts of Orange County Category 3 BDR House 2 BDR House 3 BDR Apt 2 BDR Apt 1 BDR Apt Studio Apt M Residential H Commercial ❑ Industrial 20% 12% 61%41 Oro 19% 76% 12% "Same Average Cost" "Buy-In" Costs Residential Only 15% 15% 7% "Incremental" Expansion Costs Wet Weather Facilities for Industrial / Commercial Method Figure 83 Comparison of Cost Allocations for Connection Fees Similarly, a major consideration discussed during the RAC process and evaluated during this study was the payment of a connection fee over time. Currently,the connection fees are collected as a one time fee for all residential,commercial, and industrial users. As shown in Table 8.6, an alternative approach would be to continue to collect residential and commercial connection fees up front but to collect industrial connection fees on an annualized basis. An - susmaomra:vomsvutEos.w 8-6 DRAFr-February 12, 1998 L. example of an industrial connection fee paid on an annual basis for a high and a low strength industry in shown in Table 8.7. Table84' ', ,Connectfon Fee=Payment Types - County Sanitatlon Districts of Orange County Catewty -Payment Type Residential One Time Fee Commercial One Time Fee Industrial Annual Basis se ?able enecilsn Fees Could be Paid on Annuel Basis :County Sanitation Districts of Orange County ,EXeU7,(�1ae'I9dusiry Conneotipn Foe . Annual Basis' High Strength $980,000 $101,000 Low Strength $620,000 $64,500 ' 15 years at 69/.interest - suaoeaomr�omsnnreae.ww 8-7 DRAFT- February 12, 1998 Chapter 9 RECOMMENDATIONS ' 1. Introduction The purpose of this Chapter is to summarize the views and recommendations of the Rate Advisory Committee(RAC)following their year-long review of the overall rate structure of the County Sanitation Districts of Orange County(CSDOC). Rate Advisory Committee Process As part of the CSDOC Strategic Plan process,a Rate Advisory Committee (RAC)was formed to obtain input from each of the major user categories(residential,commercial and industrial). The RAC was designed to be a collaborative process involving all the major stakeholders potentially impacted by a new rate structure. The opportunity was offered at each of the workshops to allow for feedback, as well as dialogue among the RAC members so resolution could be reached on key rate structure Issues. The RAC process involved 9 workshops which were held over a period of 13 months. While the RAC reached substantial agreement on most issues, minority views were expressed and advocated strongly. These minority views can be found in the following section on Detailed Analysis of Key Issues. This information will be presented to the CSDOC Boards of Directors,who will consider RAC recommendations in making policy decisions and possible changes to the current rate structure. A summary of the RAC recommendations is presented in the document*Summary of the Rate Advisory Committee Process and a Report Back to the CSDOC Board on Rate Structure Recommendations,' which is included as Appendix C. For a complete picture of the RAC process Board Members are encouraged to read this entire report in addition to Appendix C. Overall Philosophy In general, RAC members agreed with the governing philosophy of sources and uses of funds as shown in Table 9.1. f Operations and Maintenance of Existing Facilities Existing Users Capital Replacement of Existing Facilities Existing Users Capital Construction of New Facilities to New Users Accommodate Growth Capital Construction to Improve Level of Treatment Both New and Existing Users suweaamaEvomsv+n�s.vmo 9-1 DRAFT-February 17, 1998 Sewer User Charges it is important to note that the recommendations made by the RAC address the rate structure (how the costs are allocated back to each user) only, and not the level of funding. A revenue neutral evaluation was conducted during the comparison of alternative sewer user charge methodologies. However, there was broad agreement that the rate structure should shift from charging commercial users on the basis of square feet of improved property to charging based j, on wastewater flow and strength of discharge. This recommendation to move to a wastewater flow and strength basis significantly changes the user charges for some commercial businesses. it raises the rates for some businesses, and lowers it for others,while raising approximately the same total amount of revenue from the commercial user group or category. For example, restaurants, carwashes and supermarkets would see a relatively significant increase in their annual user charges. Whereas warehouses, churches and theaters would see a significant reduction in their annual user charges. Connection Fees -- Connection fees are paid by new users when they connect to the system to cover the costs of the new facilities required to convey,treat and dispose of the expected wastewater. Similar to sewer user charges,the RAC recommended a flow and strength basis in determining connection fees. This recommendation was based on the conclusion that wastewater flow and strength is a better measure of the cost impact of a user on the system than is square footage. In general,the RAC thought It was appropriate to assign most of the costs for wet weather facilities to residential users. This is, in part, because residential lateral systems are the primary source of infiltration which contributes to peak wet weather flows. This recommended change in methodologies would increase the percentage of total connection fee costs allocated to the new residential user category from 61 percent up to as high as 70 percent,with proportionate reductions in new commercial and new industrial categories. Because actual total costs are not yet finalized, it is not known if this increased percentage will result in higher or lower residential connection fees. Recommended Action/Next Steps it is recommended by the RAC that the CSDOC Boards of Directors review and consider these recommended methodologies for the development of a rate structure for sewer user charges and connection fees. This will allow CSDOC staff to move forward with the calculation of sewer user charges and connection fees as the new Strategic Plan and the associated Capital Improvement Plan and the estimated construction and operation and maintenance costs become better defined. This will also allow the staff to proceed with the development of rate structure evaluations such as tiered residential connection fees and the number and type of commercial user charge categories. s�nRS Wro 9-2 DRAFT- February 17, 1998 Following this consideration of the methodologies for the development of a new structure,the preliminary user charges and connection fees are anticipated to be completed in draft form by early spring 1998. in coordination with the development of the overall Strategic Plan. 2. Detailed Analysis of Key Issues Changes to User Charge System The following major user charge issues were reviewed and associated opinion statements were developed by the RAC members. 1. Should the F,dsdng System of User Charges be Changed? This question is fundamental to the issue of whether or not there are outstanding concems over the equity of the existing rate structure. A"yes" vote signifies that some improvements can be made. A"no" signifies a desire to remain with the existing rate structure. Voting Results Yes 16 No 4 Majority Opinion • Most RAC members fell that the existing system of user charges should be improved. Minority Opinion • Even the minority agreed that there needs to be a more accurate measure of all users on the system. 2. Do Vk Change Commercial Categories? This question addresses the desire to shift from charging commercial users based only on square footage to charging them based on wastewater flow and strength. Currently,all commercial users are charged the same cost per square foot of improved property, regardless of whether the commercial user is an office building or a restaurant. 8M305e0w*3'0arsanr8X)wro 9-3 DRAFT- February 17, 1998 F Young Results Yes 20 No 0 Use 19 Categories as proposed �S Use staff-determined number of Categories 5 Majority Opinion • All RAC members felt commercial categories need to be revised to more - accurately reflect the actual wastewater flows and pollutant loads of the users. The majority(15 members) felt that the 19 categories of the 105 available that had been developed as part of the workshop process needed to be further evaluated. Most RAC members agreed that they would feel comfortable with the Districts'staff and Board determining the final commercial category breakdown as long as it was equitable. Minority Opinion • No minority opinion, as none of the RAC members voted to keep the existing system of commercial categories for user charges. 3. Should Multl-Fam/ly User Charges be Proportional to Single-Family? Multi-family residential units typically discharge less than single-family residential units. This question asks whether it is appropriate to continue to recognize this difference by charging multi-family units less than single-family units,based on actual field measurements. Voting Results Yes 21 No 1 Majority Opinion • A majority of the RAC members feel that the measured difference in wastewater flows and loadings between multi-family versus single-family homes justifies establishing a pro-rate reduced rate for multi-family homes. Minority Opinion • One member of the RAC did not want to continue with a difference in rates for single versus multi-family homes because of the increasing number of people living in multi-family homes,more closely resembling occupancy of single-family homes. sxvmeoav�sonrsuan�s,wvo 9d DRAFT-February 17, 1998 4. Should Different Cost Allocations be Applied to User Rates? Currently, existing user charges are based on the average cost for total residential, commercial and industrial contributions. This question addresses whether residential users should pay a user charge that is higher than the average cost to treat a gallon of flow and a pound of pollutant loading in order to have commercial and industrial customers pay a user charge that is lower than the average cost. The purpose of the lower charge for commercial and industrial users would be to provide an incentive for commercial and industrial users,and their associated jobs and other economic benefits,to locate in Orange County. Voting Results Yes 6 No 16 - Majority Opinion • The majority feels that the'Same Average Cost' approach for user charges is a fair allocation, resulting in a cost charged to each user based on the average cost to treat a gallon of flow and a pound of pollutant loading. • Residential users should not subsidize commercial and industrial users. • There are other means in existence for encouraging and keeping industry in the community. - Commercial, industrial, and residential users should all be treated the same. • A different allocation would result in an unfair burden on residential users. • It could also adversely affect those on a Iimhed income. • Any other approach may not satisfy the fair, equitable,proportional charge requirements of Proposition 218. • - User charges may not be as big a concern as connection fees in attracting industry. Minority Opinion • Some RAC members expressed a desire to provide a user charge structure which would encourage industries (and jobs) to locate and remain in Orange County. • Industry is not impacting the fixed costs of operation. S��Nvo 9-5 DRAFT- February 17, 1998 • Replacement/improvement may shift to residential users in the future anyway if industry leaves. • The different cost allocations may result in a better allocation of fixed and variable costs to the residential,commercial,and industrial categories. • The number of residential units far exceeds commerciat/industry. To give back a small percentage to attract and keep business seems reasonable. This is only one arrow in the quiver that may be used to attract business but it is important all the same. 5. Although a majority of RAC members felt that Different Cost Allocation should not be adopted.,ll Different Cost Allocations are Adopted What/s the Preferred Method? If it is a good idea to provide a user charge for commercial and industrial users that is lower than the average cost,then which of the methods should be applied?Each different method results in a different contribution from residential users to commercial and industrial users. Voting Results Constant O&M (residential only) 5 Replacement and Improvement (residential only) I 15 Both Constant O&M and Replacement and Improvement(residential only) 0 Other Methods 1 Majority Opinion • The majority of RAC members voted for the method that provides the least cost impact to residential users. Minority Opinion • Some members of the RAC fah that a greater incentive was warranted for industrial and commercial users. • Because there are so many residential users, a substantial break can be provided to industrial and commercial users with just a slight increase in residential rates. Changes to the Connection Fee System The following major connection fee issues were reviewed and associated opinion statements were developed by the RAC members. s:wammmrr<romseaimewvo 9-6 DRAFT-February 17, 1998 1. Should the existing system o1 Connection Fees be changed? This question is fundamental to the issue of whether or not the existing connection fee system is equitable. A"yes"vote indicates that some improvements can be made. A"no" indicates that the existing connection tee system Is preferred over the alternatives that have been discussed in the RAC process. Voting Results Yes 20 No 2 Majority Opinion • Most RAC members felt that the existing connection fee system needs to be improved. Affhough in the aggregate,commercial users contribute their share of connection fees,many new commercial users are not charged in accordance with their Impact on the system. • One member thought that CSDOC should not even have a connection fee. Minority Opinion - Some members felt that increases in administrative,field monitoring and - laboratory costs for a new connection fee system may outweigh the benefits. 2. Should CSOOC hate Tiered Residential Connection Fee Categories? This question addresses the fact that different types of residences have different impacts on the system and whether the connection fees should be tailored to account for these impacts. Currently all residential units are charged the same connection fee. Voting Results Yes 20 No 2 Majority Opinion Most RAC members tell that residential connection fees should be tiered for different residences. They felt that a tiered fee would accurately reflect the impacts of household size,water use characteristics, and other factors. • Some members questioned whether the number of bedrooms is the best way to characterize the Impacts that residences can have on the system. s-A3081KXAFE�imswaD 9-7 DRAFT-February 17, 1998 Y.. Minority Opinion • Some members felt that the improved accuracy from a tiered connection tee was not worth the probable extra administrative costs that would be incurred to implement such a system. 3. Should V*Provide Industrial Incentives for Connection Fees? This issue addresses the desire to provide connection fee"incentives"for new commercial and industrial users to help keep and attract new jobs to Orange County. The incentives would be provided from new residential users to new commercial and industrial users. Currently,there are no"incentives" provided for commercial and industrial users. Voting Results Yes 16 Maybe 5 No 0 Majortiy Opinion • Nearly 75 percent of the RAC members fell that there is merit in providing connection fee incentives for new industries. • Incentives may help provide Orange County with a competitive edge over other - communities that are also competing for industries and associated jobs. • The indirect economic benefit to the residential sector resulting from industrial incentives may make it worthwhile for new residential users to pay more to provide the Incentives. Minority Opinion Some members were not convinced that connection fee incentives would be a significant factor in luring industry to the area,especially when compared to the other economic considerations which may be mom important in deciding where to locate an Industry. • New residential users would have to pay a higher connection fee to provide this incentive. • The process for establishing who receives the incentivl s may be controversial. s-A308B0MRE�TB)9 r 9-6 'DRAFT-February 17, 1998 4. Should Connection Fees be Payable Over 71me1 The purpose of providing the ability to pay connection fees over time is an attempt to help make the cost of locating commercial and industrial users in Orange County more affordable. Currently,connection fees are collected as a one-time, up-front payment. Voting Results Yes 12 No 3 MajodtyOpinion • Most RAC members felt that it is a good idea to allow flexibility in the rate structure for industries and large commercial establishments to pay connection fees over time. • To qualify for payment over time,a minimum connection fee should be established by CSDOC. This would limit the number of users that would qualify for this payment option. Otherwise,the administrative and financial burden may be too great. • The terms of the payment option should be established by CSDOC staff so that they are reasonable to industry,to serve as an incentive. Minority Opinion • A few members felt that CSDOC should not be providing private banking services. If a business wants to pay over time,then 8 should obtain financing. • The members were also concerned that if an industry defaults on their payment that the other users would be responsible for the unpaid portion. 5. Should Different Cost Allocations be Applied? This question addresses whether residential users should pay a connection fee that is higher than the average cost to expand the treatment plant in order to have commercial and industrial customers pay a connection fee that is lower than the average cost. The purpose of the lower connection fee for commercial and industrial users would be to provide an incentive for commercial and industry,and their associated jobs,to locate to Orange County. Voting Results Yes 12 No 2 S.N BDMFEPOef61eAT®BwPD 9-9 DRAFT-February 17, 1998 Majority Opinion • Most RAC members felt that connection fee incentives should be provided for industry. • It Is worthwhile for new residential users to pay a slightly higher connection fee to help attract good jobs into the community. Minority Opinion • Some RAC members felt that all classes of users(residential, commercial and - - industrial) should pay a connection fee based on their average loading on the system and that no user class(residential) should pay to provide an incentive for another user class. 6. It Different Cost Allocations are Applied, Which Method Should Be Applied? If it is a good idea to provide a connection fee for commercial and industrial that is lower than the average cost,then which of the methods should be applied?Each different method results in a different contribution from residential users to commercial and industrial users. Voting Results • The group felt that this question could not be answered directly with a vote for one method, so a range of responses was solicited. The percentage for each response corresponds to the percentage of the total connection fee burden that the members felt should be paid for by residential. Residential % Description Vote 8A/ 'Incremental'Method 0 Between 'Incremental'and'Buy-in' 3 761/6 "Buy-In" 0 70% *Wet Weather'Method 3 Between'Wet Weather and'All Pay the Same" 6 61% 'All Pay the Same'Method 1 Below'All Pay the Same'Method 1 14 Majority Opinion • Many of the RAC members felt that some incentive should be available to industry but that it should be applied so that residential should pay between 61 and 70 sin= NPD 9-10 DRAFT-February 17, 1998 percent of the total connection fee burden, or slightly more than an allocation based on"all users pay the same average cost." • Many of the members specifically support the'Wet Weather"allocation method. Minority Opinion • A few members think that it is important to provide an incentive to business/industry. These members feel that residentat should provide a sizable incentive (a residential share of the connection fee burden corresponding to the range bounded by the'incremental"and'buy-in'methods) for industry because this would help attract jobs into Orange County. s�IEWWPo 9-11 DRAFT-February 17, 1998 Appendix A 1. Connection Fees Comparison to Other Agencies The objective of this survey is to develop a comparison of existing and proposed wastewater connection fees for CSDOC to connection fees of other similar wastewater agencies in California. Revenue generated by connection fees is typically used to pay for new facilities. In comparing the connection fees, several difficulties arose. First,the commercial categories used by the various agencies compared were often similar but not identical. As much as possible, categories with different names were classified to similarly-named categories. In addition, some agencies have local collection system and other fees, which must be added to the base connection fee, and others do not. In the case of the City of Los Angeles they classify industrial users into separate industrial connection fee categories,where other agencies fees are based on an individual calculation for each industrial user utilizing unit costs for flow, BOD or COD and TSS. A description of the different agencies and their billing procedures follows. Summary tables that show residential,commercial and industrial connection fees for the different agencies are - included at the end of this chapter, including a table that converts the different unit costs used by the various agencies to a common basis of$11,000 at. Central Contra Costa Sanitation District(CCCSD) CCCSD collects and treats wastewater from the Central Contra Costa County service area. The combined population served is approximately 400,000. The average daily dry weather flow treated is approximately 35 mgd. Wet weather flows have reached as high as 216 mgd. CCCSD refers to their connection fee as the Capacity Use Charge. There are two parts:the Facilities Capacity Fee,which is paid by everyone,and the Pumped Zone Capacity Fee,which is paid by users living in certain geographical areas requiring pumping of their wastewater(instead of gravity flow only). All residential users,whether single or multi family units, are charged the same Facilities Capacity Fee of$2,572/residential unit. The Pumped Zone Capacity Fee is$348/residential unit. The Facilities Capacity Fee and the Pumped Zone Capacity Fee for commercial users Is developed by calculating a Residential Unit Equivalence (RUE) based on the square footage of improved property and the Facilities Capacity Fee RUE Factor. The charge for each RUE is identical to the residential rate,$2,572/RUE. There are 60 commercial billing categories. Fees SUMBWWEPORIa1MTEAPA M A-1 DRAFT- February 17, 1998 for multi-use buildings are determined by considering each use separately. Although most categories have pre-assigned RUE Factors, a few,such as Cemeteries/Mortuaries and Supermarkets with Garbage Disposals, automatically require a special study to be performed by CCCSD to determine the appropriate factor. The minimum fee for such a study is$250. Some commercial properties are eligible for participation In the Capacity Use Charge Program. The purpose of this program is to allow payment over time of the Facilities Capacity Fee (the Pumped Zone Capacity Fee is not included in this program). Any billing category whose Facilities Capacity Fee exceeds a set level adopted by the Board of Directors (referred to as the Initial Payment Level) is eligible to participate in the program. Participation in the Capacity Use Charge Program is optional. Industrial properties are billed the same way that commercial properties are billed. However, all industrial properties must undergo a special study to determine their individual Facilities Capacity Fee and Pumped Zone Capacity Fee RUE Factors. The Facilities Capacity Fee for industrial users is based on a formula which converts each industrial user's Bows and loadings to RUES. The formula for calculating the industrial rRUES is: Industrial RUE Equivalents = I FLOc FLOauJ [ A B ( BODaul C ( TSS j where: A = the percentage of capital costs attributable to Bow(690/6) B = the percentage of capital costs attributable to Biochemical Oxygen Demand (BOD) (14%) C - the percentage of capital costs attributable to Total Suspended Solids (TSS) (17%) FLO, - average Bow of wastewater estimated to enter the sewer system from the proposed unit in god BODc = average concentration of BOD in wastewater estimated to enter the sewer system from the proposed unit in mgA TSS, - average concentration of TSS in wastewater estimated to enter the sewer system from the proposed unit in mgA FLOa - average Bow of wastewater from a residential unit in gpd BODa - average concentration of BOD in wastewater from a residential unit in mpA TSSRu = average concentration of TSS In wastewater from a residential unit in mgA SWOBaOaaEPDmSARTEAMWPe A-2 DRAFT- February 17, 1998 East Bay Municipal Utility District (EBMUD) EBMUD serves a population of approximately 610,000. The treatment plant collects and treats wastewater through secondary treatment using the pure oxygen activated sludge process. The plant treats an average daily flow of approximately 60 mgd. EBMUD refers to their connection fee as the Capacity Fee. For residential users, the basic Capacity Fee is$605/unit. In addition,there is a collection system component to the Capacity Fee that varies by geographic location and city served. For example,the collection system component for the City of Oakland is$590/unit. Therefore, the total Capacity Fee for units located in the City of Oakland is: Treatment + Local + Local = Total Capacity Fee Capacity Fee Conveyance Conveyance Capacity Fee Hook-up Fee $605 +$590+$245=$1,440/unit Commercial and industrial categories are grouped together as non-residential. Of the 34 non-residential categories, nine describe commercial businesses, including a catch-all category called 'all other Business Classification Codes (BCCs).'The other 25 categories are industrial. The Capacity Fee for each category is based upon a treatment rate per expected 100 cubic feet of metered water flow per month. Each category has assumed wastewater strength characteristics. Commercial and industrial one-time Capacity Fee unit rates are based on Average Daily Maximum Month(ADMM) values as follows: Constituent Fee Single Family Home (SFH) Definition Flow $47.71/HCF 6.7 HCF CODF $6.96111b 7.9 fib COD TSS $19.30/Ib 11.3 Ib TSS For commercial users,the estimated ADMM values are based on user estimates of flow, and strength,or estimated flow and assumed strength by EBMUD. The City of Oakland charges an additional Sewer Lateral Fee of$590/non-residential connection and an additional Excavation Permit Fee of$245/non-residential connection. This is a total of$635/non-residential connection in local Collection System Fees. Industrial users who move into a location where the connection fee was paid by a previous user do not pay an additional connection fee. An in-depth survey of all BCC categories over the period 1970 through 1975 is the basis for wastewater strengths assigned to non-domestic type discharges since 1976. The original 1970-1975 survey included the inspection and/or sampling of all BOO categories. Some additional sampling data was gathered between 1975 and 1961 by EBMUD for non-domestic discharges. However, this more recent data was not part of any detailed sampling program,was S.'M3u9aDPJtEPORTSMTE XWPD A-3 DRAFT- February 17, 1998 limited only to certain BCC categories, and is generally regarded as less applicable to actual wastewater strength due to drought related effects on wastewater flows. Sampling of restaurants, hotels with food service, coin operated laundromats, and hospitals was conducted in 1982. The sample size ranged from three hotels with food service to 23 restaurants. City of Los Angeles The City of Los Angeles has two wastewater treatment plants and two water reclamation plants. The largest wastewater treatment plant, Hyperion,treats an average daily flow of 350 mgd. Peak flow has been recorded at 850 mgd. The City of Los Angeles refers to their connection fee as the Sewerage Facilities Charge. They have 24 different categories for residential billing. In general,these categories establish different fees for various descriptions of residential properties involving the type of dwelling (e.g., mobile home) and number of bedrooms. Each category has an assumed flow. For example, the fee for a 2-bedroom single family dwelling is$585. The fee for a two bedroom condominium is $520. Los Angeles also has 147 commercial billing categories. In general, each category has assumed flow and strength characteristics per 1,000 sf of improved area. The Sewerage Facilities Charge for most categories is calculated based on$/1,000 sf of improved area. The Sewerage Facilities Charge for some commercial categories, however, is calculated using special billing units, such as$/bed for hospitals or$/seat for some restaurant categories. There are 136 industrial categories. Each category has assumed strength characteristics for BOD and TSS. The assumed strength values are converted into a connection fee per 100 gpd of wastewater flow for each category, using the following formula: SFC = FLOW (gpd) x $262 . BOD l� x $186 . TSS Ibs x $171 100 day day where: SFC - Sewage Facilities Charge (per 100 gpd) BOD = Ib of BOD per 100 gat TSS = Ib of TSS per 100 gal An industrial user has the option of providing proof of actual strength values, instead of using the City's assumed strength values. The flow component of the bill is initially determined by the values listed on the users discharge permit. The City annually determines the flow amount by analyzing the users water bill. If actual flow exceeds the previous year's flow,or if new strength data is significantly different than the basis for the SFC, a reconciliation SFC will be calculated. s:W3oe8araer'•omMw.Tsarawr0 A-4 DRAFT- February 17, 1998 Los Angeles County Sanitation Districts (LACSD) Los Angeles County Sanitation Districts has three wastewater treatment plants serving a population of approximately 4.5 million people. The three plants combined treat an average daily wastewater flow of 475 mgd through a combination of primary and secondary treatment. LACSD calculates connection fees based on the projected wastewater flow and strength characteristics from the proposed parcel unit. These characteristics are convened to a standard measure of Capacity Units by uI/sing the following formula: 1I CU = X 1 -FLOW.,,) Y ( CODS) Z ( SS J where: CU = Capacity Units X - the percentage of capital improvements attributable to flow (54.36%) Y - the percentage of capital improvements attributable to Chemical Oxygen Demand(COD) (17.35%) Z = the percentage of capital improvements attributable to Suspended Solids(SS) (28.29'k) FLOWsfh = average flow of wastewater from a single family home in gallons per day CODsfh - average loading of COD in the wastewater from a single family home in pounds per day Sssfh - average loading of suspended solids in the wastewater from a single family home In pounds per day FLOWc - average flow of wastewater which will enter the sewerage system ,As the connection in gallons per day CODc = average loading of COD which will enter the sewerage system via the connection in pounds per day SSc - average loading of suspended solids which will enter the sewerage system via the connection in pounds per day Residential units have assumed flow and strength characteristics such that a single family dwelling is equal to 1 Capacity Unit(CU). The connection fee for a single family residence (or 1 CU)consists of three cost components. The treatmenVdisposal cost is the same for all residential units at$826. The joint conveyance cost is also the same for all residential units at $189. The local conveyance cost is different for each of the 22 Districts, and varies from$156 to $1,129,with an average of$643. Therefore,the average connection fee for a single family residence is: $826 + $189 + $643 = $1,658 sxvmeomaevoarsenrEwrwwvo A-5 DRAFT- February 17, 1998 The multi-family rate is 60 percent of the single family rate. There are 39 commercial billing categories for connection fees. Using assumed flow and strength characteristics for each category, a number of equivalent capacity units is determined. -For most categories, this is billed per 1,000 sf The standard rate per CU is the same as the single family residence rate. Industrial users are also billed according to the number of Capacity Units calculated in the above formula. The flow and strength characteristics are obtained tram the Permit Application for Wastewater Discharge that each user must submit. If a new user locates in a site where a connection fee has been paid,they pay additional demand only. If a user relocates within LACSD boundaries, they can take their capacity credits with them to the new site, leaving the old site with a credit of$0. City of Phoenix Connection fees for residential and oommerclalrindustrial users are based on required water meter size. For a single family residence,the typical connection fee is$600. For an industrial user,the required meter is usually 6 inches, resulting in a connection fee of$92,400. However, the City of Phoenix has been giving credits to industry to subsidize the connection fee; therefore, industrial users have been paying approximately$30,000 for a 6 inch water meter. City of Riverside The connection fee for a single family unit is a flat fee of$2,684. Commercial and industrial users are charged on the basis of square footage as follows: $700 for the first 3000 square feet of building space and$700 for each additional square feet,prorated to the actual measured square feet. There is also a charge of$38.50 per foot of frontage for use of existing pipelines, if applicable. Significant users may also be charged a permit fee by the City of Riverside, Industrial Waste Division. Sacramento Regional County Sanitation District Sacramento Regional County Sanitation District serves a population of approximately one million people. They treat an average daily flow of 143 mgd using the pure oxygen activated sludge process. The connection fees are based on the projected future costs of expansion for the treatment plant and interceptor conveyance system. These costs were totaled for the 20 year planning horizon and allocated to the billable constituents of flow, BOD,and TSS. These were divided by the projected increase in flow and strength of the maximum month characteristics to determine a cost for flow ($/mgd);BOD ($/Ib BOD),and TSS ($Jib TSS). To lessen the impact of the fees on industry, an incentive rate was established for industry, which, if the industry meets certain guidelines, shifts some of the capital costs from the sxaaseoawevoarsuar�vwwro A-6 DRAFT- February 17, 1998 connection fees to user rates. These incentive fees provide a favorable climate for business. The incentive fee was established by calculating a connection fee assuming no growth of industry. The difference between the no growth and the actual projected growth is the amount available for industry to reduce their connection fee,if they meet the guidelines. The connection fee for an Equivalent Single-family Dwelling unit(ESD),the equivalent of a single-family residence,consists of three parts. The regional fee for wastewater treatment and interceptor conveyance capacity is$2,334/unh. There are three local collection system agencies that also charge a connection fee. A typical collection system fee is$398/unB. There is also an inspection fee of$45/unft. Therefore,the total fee charged to connect a single-family residence to the sewer system is: $2,334 + $379 + $45 - $2,758/unit The mufti-family rate is 75 percent of the single family rate. There are 37 commercial billing categories for connection fees. Using assumed flow and strength characteristics for each category,a number of ESDs(1,000 sf can be calculated. For most categories,this is billed per 1,000 at. The regional fee is$2,334/ESD. There is an additional local collection system fee of$2,058/acre of property with a minimum of$379. If the flow is greater than 46,500/gaVacre/month,commercial users are charged on the basis of Bow rather than acreage. In this case,the local rate becomes$32/1 ODD gal/month based on the maximum month flow. Industrial connection fees are based on the individual flows and loads for each industry and are - calculated based on unit prices for flow, BOD and TSS. There is an additional local collection system fee of$32110DD gaVmonth based on the maximum month flow. City of San Diego The residential connection fee for San Diego is referred to as the Sewer Capacity Fee. The rate per living Unit is$2,500. A single family residence Is assessed one Living Unit;multi-family units are based on living unit density(the total amount of Living Units and the area of the lot). Other fees that are charged are an inspection fee for the sewer lateral installation of$15 and a plan check fee of 2 percent of the Sewer Capacity Fee,or$50 per Living Unit. The total charged to a Single Family Residence Is: $2,500 + $15 + $50 = $2,565 San Diego does not charge commercial and industrial users separately. Each user is charged $2,500 per Equivalent Dwelling Unit(EDU),where 1 EDU is equal to 20 plumbing fixture units. The sewer lateral inspection fee and the plan check fee also apply. Industrial users who move to a site where a connection fee has already been paid by a previous user pay only a connection fee for additional demand. For industries locating in an enterprise zone or redevelopment area, an incentive rate of$1,5001EDU (versus$2,500/EDU) is applied. sxroemoweroarswa�acawao A-7 DRAFT- February 17, 1998 City of San Jose The connection fee for a single family residence is made up of three parts. The treatment plant component is$780/Dwelling Unit(DU). The collection system component is$447 per lot or $1,991/acre,whichever is greater. The wet weather component is$270 per lot or$1,215/acre, whichever is greater. Therefore,the total fee charged to connect a single family residence to the sewer system is approximately: $780 + $447 + $270 = $1,497 The fee for mufti-family units Is the same for single family residences for up to seven units/acre. A fee of$438/unit is added for each uniVacre in excess of seven. The connection fee for commercial properties is calculated on the flow and strength characteristics of the wastewater discharged and the unit rates. The unit rates are: Constituent Units Fee _. Flow million gallons/day $3,066,251.40 BOD lb BOD/day $154.12 TSS lb TSS/day $126.44 Ammonia lb NH3/day $49.96 There are eight commercial categories. Each commercial category has assumed flow and strength characteristics per 1,000 sq it of developed area that are used to calculate the connection fee. The connection fees for industrial users are calculated on the above unit costs for flow, BOD, TSS, and NH3, and on information on projected flows and loads submitted by the user. San Francisco Bureau of Water Pollution Control San Francisco Bureau of Water Pollution Control serves a population of approximately 750,000. They treat combined wastewater(sanitary,sewage plus stormwater)through secondary treatment using pure oxygen activated sludge. The average daily flow is 85 mgd. San Francisco does not now charge a connection fee,but has considered establishing one from time to time. However,as growth is not significant, and land use is fairly consistent, there has not been a substantial need to establish a connection fee in the past. e:K9D9MREPOMWTE.APAWPD A-8 DRAFT- February 17, 1998 2. Sewer Service Charge Rate Comparison to Other Agencies The objective of this survey is to develop a comparison of existing and proposed wastewater sewer service rates and charges for CSDOC to rates and charges of other similar wastewater agencies in California. Sewer service charges are typically used to pay for operations and maintenance, replacement, improvement and debt service. In comparing the rates of different agencies,several difficulties arose. First the commercial categories used by the various agencies were often similar but not identical. As much as possible, categories with different names were classified to similarly named categories. In addition, some agencies have local collection system and other rates,which must be added to the base sewer rate, and others do not. Table A.1 is a summary of these differences between agencies. Table A2 shows residential rates and assumed characteristics for each agency. tat Rate Characteristics doxmiy -`Numbar of fleraivao. Basis of Additional .Additional gPasidentiol . .Collection Fundingfront _,RDytgen System Rate?_. .Property Taxes? CSDOC t Square Footage EDU YES YES SRCSD 30 ESD Factors ESD Factors YES YES LA(City) 1 Metered Flow Metered Flow NO NO LACSD 31 ESD Factors ESD Factors YES YES EBMUD 14 Metered Flow Metered Flow YES YES Phoenix 10 Metered Flow Metered Flow - - Riverside - - DU - - San Franasco 26 Metered Flow Metered Flow NO NO San Jose 11 Metered Flow DU NO NO CCCSD 13 Metered Flow RUE YES YES San Diego 52 Metered Flow Metered Flow NO NO SRWCB 15 EDU FactorsO EDU Factors - - (1) See text for description of commercial billing categories. (2) The California State Water Resources Control Board(SWWCB)recommends the-equivalent dwelling units"(EDU)method for small agendas. (3) Equivalent Dwelling Unit(EDU), Equivalent Single Family Dwelling(ESD), Dwelling Unit(DU),and Residential Unit Equivalent(RUE)are the same unit of measure,equivalent to the wastewater generated by a single family residence. e]13a8a00REPONTSM1TE AWPD A-9 DRAFT- February 17, 1998 dentiall, TatilerA ,�- Frrr n andillSI ran :Flo WValuew 004,40 CSDOC $50-1 00/yr $30-60/yr 250 — 250 250 SRCSD $195/yr $146/yr 181 — 207 291 LA (City) $166/yr $166/yr 215 — 205 250 LACSD $73/yr $"Iyr — 563 272 260 EBMUD $273/yrl" $191VI) — 380 270 167 San Francisco $275/yT01 $27W') — 684 279 175 San Jose $228/yr(l) $1301yr1 ) 250 250 — 240 CCCSD $188/yr $188/yr 200 — 215 260 San Diego $112-358/yr $1 12-358/yr — — 265 -- SRWCB 175-250 — 175-250 — Phoenix 187 — 210 — Riverside $157/yr — — — (1) Average Rate Another problem was the different billing units used by the different agencies. Some agencies use ESDs(Equivalent Standard Dwelling Unit), Residential Unit Equivalents (RUE) or Dwelling Units (DU), per 1,000 sf of floor space and utilize property tax information to calculate sewage rates. Other agencies use units of HCF(Hundred Cubic Feet of flow), utilizing the water meter and water bills or projected flows to calculate the rates. Before comparing rates billed in different units, R was necessary to make an assumption about conversion factors. Los Angeles County Sanitation District provided conversion factors based on flow per 1,000 sf developed floor space for different billing categories. These conversion factors were applied to all of the agencies using water use based billing to get an equivalent fee based on floor space. An example of this conversion calculation is: CCCSD sewer service rate for a Mortuary-S3.426/HCF LASCD conversion for a Mortuary- 100 gpd/1,000 sf CCCSD Sewer Service Rate ($11,000 sf) $3.426 x 10 gpd x HCF x 365 days HCF I,000 at 748 gal Year $167.18 / 1,000 at I year 8430880UAEPGmS%RATE- XWPD A-10 DRAFT- February 17, 1998 General information on each agency can be found in Section 9.4 of this report. A description of the different agencies and their billing procedures follows. Tables that show commercial and industrial rates for the different agencies are attached at the end of this chapter. A table that converts all the commercial category rates to$/1,000 sf is also attached. Central Contra Costa Sanitation District (CCCSD) The residential sewer service fee for a single family residence is$188/yr. The same rate is charged for multi-family residences. Of this,$157 is used for operations and maintenance,.and $31 is used for capital improvements related to replacement and improvement. CCCSD receives - - approximately 10 percent of their annual budget from property tax revenues. However,this is used only for capital improvements. CCCSD uses 13 commercial categories. Four are considered high strength categories billed at a variable rate. Eight categories are low strength and billed at a single rate. All other low strength dischargers are lumped into a single category,'all others'. Charges are based on metered water flow and billed at$/HCF. Industrial users are charged based upon the volume of flow treated and the strength -- characteristics of the waste. The unit costs are as follows: Constituent Units Rate Flow Million gallons $958 BOD 1,000 Ibs $400 TSS 1,000 Ibs $286 In addition to the unit cost charges, industrial users are also charged a demand charge which is based on the peak flow day for the year. The charge is$115,159 per million gallons per day. East Bay Municipal Utility District (EBMUD) EBMUD uses metered water flows as the basis for wastewater flow. The residential sewer service fee consist of a flat strength charge of$4.90/Single Family Home(SFH)/month and a flow charge of up to$628/month,based on metered water flow. The average metered flow charge Is $2.52 per month. There is a wet weather surcharge of$58.80/year per SFH which is collected annually on the tax bill. In addition, there is an added fee for collection,which varies by agency. For example,the City of Oakland Collection Charge is$10.37 per month. Therefore,the average monthly residential fee in Oakland is$4.90+$10.37+$4.92=$22.71. The resultant yearly charge is$273 for a single family residence(including the wet weather surcharge collected in the tax bill). In addition,there is approximately$28/year collected per SFH on the ad valorem taxes. Mufti-family residences are charged approximately 70 percent of the single family residence fee. Commercial and industrial categories are grouped together as non-residential. Of the 34 non-residential categories, nine are commercial by this survey's classification, including a -" s:aweeomaeromsMTFAvwxvu A-11 DRAFT- February 17, 1998 catch-all category called *all other Business Classification Codes (BCCs). The other 25 categories are industrial. The sewer service fee for each category is based upon a treatment rate per 100 cubic feet of flow treated. The treatment fee varies by category, taking into account the strength characteristics of each categories wastewater flow. The City of Oakland charges an additional local collection system rate of$0.71/HCF for commercial users and $0.64/HCF for industrial users. City of Los Angeles Los Angeles has two rates for sewer service charges. Residences are charged $1.356 per -- 100 cubic feet of water usage. Residences can apply for discounts if they meet one of three exceptions: 1. They water more than 11.000 sf of landscaping. 2. They have 2 meters (one domestic,one landscaping). 3. They are away from the house more than 58 days per year. Commercial users are charged$2.033 per 100 cubic feet of water usage. This applies to all commercial categories, and they can apply for a discount B they can show proof that less than 90 percent of their water usage is returned to the sewer. Industrial users are charged the same rate as commercial users except that they pay a surcharge for BOD and TSS for amounts greater than domestic strength. Domestic strength is assumed to be 205 mgA TSS and 215 mgA BOD. The surcharges are$0.343 Ib/TSS and $0.258 IbBOD. Los Angeles County Sanitation Districts (LACSD) The sewer service charge for LA1/CSD is baFLOWmked on thefollowing formula: SU = AI FLOWg ) ♦ B COD 1 D/ • CISSM S ) where: SU = Sewage Units (equivalent Bow and strength of a single family residence) A The proportion of the total operation and maintenance and net capital costs required for conveyance,treatment and disposal of wastewater attributable to flow(0.3049) B = The proportion of the total operation and maintenance and net capital costs required for conveyance, treatment and disposal of wastewater attributable to COD (chemical oxygen demand) (0.3348) C The proportion of the total operation and maintenance and net capital costs required for conveyance,treatment and disposal of wastewater attributable to SS(suspended solids) (0.3603) FLOWsfh = Average flow of wastewater from a single family home in gallons per day C,ODsfh = Average loading of COD in the wastewater from a single family home in pounds per day srw3oeenmssvoarsynreaPawro A-12 DRAFT- February 17, 1998 Sssfh = Average loading of suspended solids in the wastewater from a single family home in pounds per day FLOWavg = Estimated flow of wastewater which will enter the sewerage system from a user in gallons per day CODavg - Estimated loading of COD which will enter the sewerage system from a user in gallons per day Ssavg Estimated loading of suspended solids which will enter the sewerage system from a user in gallons per day The Board of Directors of LACSD annually adopts the values for A, B, C, FLOWsfh, CODsfh, and Sssfh. The residential rate varies by district from$49 to$263 per Sewage Unit (SU)with an average of $73/SU. The variance is based on several factors such as the type of treatment received (i.e., secondary or tertiary) and the distance from the treatment plant. However, the same formula with different coefficients is used to determine the residential rate for each distdct. The charges are billed annually on the property tax bill or by direct billing, depending on the district. The multi- family rate is approximately 60 percent of the single family rate. LACSD has 40 commercial billing categories. Each has assumed values for flow and strength characteristics. Most categories are billed in$/1,000 St. A few are billed based on occupancy, such as$/bed for hospitals and$/rooms for hotels. The billing for commercial categories is also based on the formula above,with the cost per 1,000 sf equal to the residential cost per unit in each district. Industrial users are charged based on the flow and strength characteristics of their wastewater. The number of SUs attributed to the wastewater is also calculated using the above formula. City of Phoenix The City of Phoenix charges residential users based on water use. For each household,the average water use for January, February, and March is averaged and multiplied by 80 percent. This is the set rate of water use that is used for the entire year. Currently,the rate charge is $0.7981/hcf. An environmental charge of$0.2553/hef is added. Also, there is a fixed fee of $1.13 per account. Therefore,the residential rate is currently: Monthly Rate = $0.7981/hcf + $0255ncf + $1.13 fixed fee _ $1.0534/ncf + $1.13/month Commercial users are divided into user categories and billed per HCF of sewage discharged. Assumptions about wastewater strength are made for each category. Industrial user rates are based on water usage and measured strength (BOD and TSS). Each user is billed monthly. Sewer flow as a percent of water use is determined for each commercial and industrial user by installing a measuring device in the sewer line while a known amount of water is used. The billable constituent charges for the City of Phoenix are: sxweeoaweaonrsvureavawvb A-13 - DRAFT- February 17, 1998 Constituent Units Rate Flow Hundred Cubic Feet $0.5103 BOD pound $0.1193 TSS pound $0,1133 City of Riverside The City of Riverside bills residential users a flat rate of$13.05/month. Industrial users are billed based on flow and strength of the sewage produced. Flow is measured using a sewage Flow meter. For industrial users,the volume of domestic discharge versus the volume of industrial waste discharge is accounted for in the rate calculation. The volume of monthly domestic discharge is calculated as follows: Monthly Domestic (employees) x ( working tlays� z � tlay2x emiployee) Discharge (MG/month) 12 months z 1,000,000 year The Average Domestic Discharge Pounds are calculated with the following formula using the calculated Monthly Domestic Discharge and assumed values for COD and TSS concentration (Oil/Grease is excluded from domestic waste discharge calculations): Average Domestic Avg. Domestic Waste Discharge = Avg. Domestic x Discharge x 8.34 Pounds Concentration (MG/month) The volume of industrial waste discharge(In MG per month) is obtained from the flow meter records. The concentrations of the billable constituents in the industrial waste is obtained from sample data that is kept on file for each industrial user. The Average Industrial Waste Discharge Pounds for COD, TSS, and Oil/Grease are calculated using the following formula: Average Industrial Avg. Industrial Avg. Industrial Waste Discharge - Concentration x Discharge x 8.34 Pounds (MG/month) The Total Pounds for each of the billable constituents is calculated by adding the Domestic and Industrial Waste Pounds. This is used to determine the overall wastewater strength of the user's discharge in mg(l: 6.�EPORT9WMAPAWPD A-14 DRAFT- February 17, 1998 Adjusted Monthly Concentration _ Total Pounds z 453,600 (mo) Total Discharge x 1,000,DD0 x 3.7a5 (MG/month) The billable constituent charges for Riverside are: Constituent Units Rate Flow Million Gallons $1,017 COD pound $0.091 TSS pound $0.208 Oil 8 Grease pound $0.563 The monthly Sewer Charge is then calculated using the following formula: More)* Tow Diuharge x $1,017 . II $0.091 x 8.34 x l $020a x e.34 zll (( $0.593 x 8.34 x Sever Ctwge - (MG/morah) [ (Adjusted COD (mg/pJ ( TSS (mg/) 1- `OUGrease (mg4))] Sacramento Regional County Sanitation District The Sacramento sewer service charge includes the costs for operation and maintenance, repair, replacement, and a portion of the capital facilities expansion. The portion of the capital facilities expansion costs paid by existing users is the amount transferred from connection fees to provide an incentive for industry. These costs are allocated to the billable constituents of flow, BOP, and TSS for each process. The sewer service fee for a single family dwelling is currently$11.75/month. In addition, the Cities of Sacramento and Folsom and Sacramento County collect a local collection system charge to cover operations and maintenance costs of the collection system. A typical collection charge is$4.50. The total fee is$1625/month,or$195/year. Mufti-family dwellings are billed at approximately 75 percent of the single family rate. There are 40 commercial billing categories. Each category is billed as$/1,000 sf of improved building space. Each category is assigned a conversion factor to relate Its waste characteristics to that for an Equivalent Single-family Dwelling (ESD). The rates are expressed as ESDs/1,000 sf. This can be multiplied by the single family rate to obtain the rate for each commercial unit. Commercial users are charged the local oollecGon system rate of $4.50/user/month in addition to the regional fee of$11.75/ESD/month. Industrial users are billed based on actual metering and sampling of their waste. The incentive' industrial rates for flow, BOD, and TSS are: 551J08aePAEPOitrSViAm:APAWPD A-15 DRAFT- February 17, 1998 I. Constituent Units Rate Flow Million gallons $284.07 BOD 1,000 lbs/day $154.12 TSS 1,000 Ibs/day $88.89 where BOD is biochemical oxygen demand, and SS is suspended solids. In addition, industrial ... users also pay for ongoing sampling costs. These charges are assessed monthly. In addition, industrial users are charged several additional rates for the local collection system component. These include$4.DB/user/month,$41.43/MG of flow, and$2.91/1000 Ibs TSS. City of San Diego The residential sewer service fee for San Diego is a combination of a minimum flat rate and a variable rate based on water usage during winter months. The flat rate is$7.14 per single family residence. The variable rate is$2.27 per Hundred Cubic Feet(HCF) of average monthly winter water use,to a maximum of 10 HCF per month. The maximum bill charged to a single family residence under this system would be: $7_14 $2.27 X 10 HCF S29.84 / month month HCF month This includes all collection as well (there are no local collection agencies). Commercial and industrial users are divided into standard classes. A Total Suspended Solids (TSS) concentration is assumed for each class. Users are billed based upon their class,water use, and the Percent Return to Sewer. These charges assume a unit cost of$1.71 per HCF of flow and$0.22 per 100 ppm of TSS assuming a 100 percent of return to sewer. The actual percentage of return to sewer can be determined in different ways. It can be assumed for some standard types of commercial users,or it can be determined through on-site inspection and field monitoring. If a customer disagrees with the assumed flow and TSS values for his class, he can perform monitoring and testing through an approved laboratory to get actual values. Currently San Diego uses only flow and TSS for billable constituents. In the future,they are bringing online Secondary and Tertiary treatment processes. At that time, BOD will be added as a billable constituent, and the rate structure will be revised. City of San Jose The billing rate for a single family residence is$227.52 per year. The mufti-family residence rate is$13020 per year. These rates are billed with the property taxes. SYT088"EPORTSAATEAPAWPO A-16 DRAFT-February 17, 1998 ,I. I Commercial categories include non-residential users discharging sewage of uniform strength or discharging less than 25,000 gallons per day. There are 21 commercial categories, and each has assumed flow and strength characteristics. Annual water consumption for each user is estimated by averaging water consumption for the months of January, February, and March of the previous fiscal year and extending the data for the following year. Rates vary for each category, and are in $✓hundred cubic feet of sewage (HCF)discharged. Sewer service fees are billed with the property taxes. Industrial users are billed monthly on the basis of samples collected during the billing period. Charges are based on flow and strength characteristics of the waste. The annual charges are: - Constituent Units Rate Flow HCF $1.3786 BOD 1,000 Ibs $98 TSS 1,000 Ibs $123 NH3 1,000 Ibs $950 where BOD is biochemical oxygen demand, and SS is suspended solids. San Francisco Bureau of Water Pollution Control Residential sewer service fees are based on metered water flow. The average billing rate for a single-family residence is$22.98/month. This results in an annual charge of$275.76. There are 23 commercial billing categories. These categories are billed based on metered flow. Strength characteristics are assumed for each category, resulting in sewage service rates that vary by category. These strength characteristics were determined by random sampling of a few businesses in each category to obtain an average strength. The charges for industrial users are based on individual sampling are as follows: Constituent Units Rate Flow HCF water usage $4.1054 COD lb $0.1113 TSS lb $0.5337 Grease & Oil to $0.7512 The flow value assumes that 90 percent of the metered water returns to the sewer. Each user can establish a different percentage for return to the sewer if they have data to support it. S. P Uu TEA XWPe A-17 DRAFT- February 17, 1998 Table A.3 Survey of Single and Multi-Family Residential Connection Fees County Sanitation Districts of Orange County Treatmem/ Basis of Residential Interceptor Local Collection Total Single Family Agency., Billings Component System Component Other Rate Multl-Famliy Rate CSDOC dwelling unit $2,360 $55 to$2,000 -- $2,415 to $4,360 $2,360( 1 8 Sacramento dwelling unit $2,334 $379 $45 $2,758 $2,069 County LA(City) dwelling unit, $422 to $1,071 -- -- $422 to$1,071 $390 to$780 no. of bedrooms LACSD dwelling unit $1,015 $643 -- $1,658 $995 EBMUD - dwelling unit $605 $590 $245 $1,440 $1,440") (Oakland) San Jose dwelling unit $780 $447 $270 $1,497 $1,497 D CCCSD dwelling unit, $2,572 $0 to$348 -- $2,572 to$2,920 $2,572 to$2,920 W pumping zone San Diego dwelling unit $2,500 -- $65 $2,565 $2,565 Phoenix dwelling unit $600 -- -- -- -- Riverside dwelling unit $2,684 -- -- -- -- (1) This is only the joint works portion of the connection fee. (2) The multi-family rate is the same as the single family rate up to 5 units. For the greater than 5 units a factor of 82 percent Is applied to the total connection fee. v D T (U Q C m J U) tD W m F • ' 1. Animal Kennel - 307 0.38 2. Auto Dealership 472 0.38 0.432 2,500 3. Bakeries 1,412 284 4.061 4. Banks and Financial Institutions 472 246 0.38 0.295 2,500 5. Barber and Beauty Shops 472 859 0.725 2,500 6. Bars 472 0.7 2,522 1.166 2,500 7. Bowling/Skating Alleys 472 246 0.83 0.311 2,500 n 8. Car Washes w a. Automatic(Conventional) 472 (1) 13.99 Be 21.127 2,500 b. Self Service 472 (1) 2.66 88 21.127 2,500 9. Club 472 0.47 a. Night Club 472 1.32 W. Dry Cleaners 0.259 2,500 11. Fire Stations p 12. Garages 472 0.38 0.432 2,500 x n 13. Golf Course, Camp& Park 472 (2) 0.38 1.166 2,500 21 r 14. Halls,Lodges&Auditoriums 472 12/seat 1.32 0.290 2,500 w 2 15. Health Studios 472 2,455 2.27 1.166 2,500 w 16. Hospitals 472 1.0/bed 237/bed 80 2.891 2,500 J 17. Hotels and Motels (eating) 472 0.3/sleeping 428 0.47/room 1.166 2,500 m room m � oral 4F 18. Laundries a. Sell Service 512 14.46 90 13.606 2,500 b. CommerclaVlndustrial 116 2,500 19. Lumber Yard 472 0.13 2,500 20 Manufacturing 472 246 a. Dry Manufacturing 472 0.13 0.228 21. Markets a. With garbage disposal units 472 1.00 (2) 2,500 D c b. Without garbage disposal 472 1.06 0.556 2,500 units 22. Medical and Dental Office 472 734 1.14 0.637 2,500 (Including eating facllitles) 23. Mortuaries 472 (2) 0.72 (2) 2,500 24. Nursery/Greenery 472 0.10 0.= 25. Office Buildings (public&private, 472 02 "1 0.76 km 2,600 Including eating facility) 0 y a. Under 200,000 sq.ft. b. Over 199,000 sq.ft. m v 26. Parks ' 1.0/14 fixture ' • ' (2) 2,500 2 units w Z 27. Places of Worship (including 472 0.2 12/seat 0.16 0.242 2,500 residences) ro m m i Table A.4 Survey of Commercial Connection Fees County Sanitation Districts of Orange County Sacramento"' LA LA EBMUD CCCSD CSDOC SSW (City) (County) (Oakland)(') RUE/ San Diego k Commercial Category $/1000 sf 1000 sf $/1000 sf CU/1000 sf $/HCF/month 1000 sf $lEDU(31 28. Public Agencies (Including eating 472 0.295 2,500 facilities) 29. Regional Mall 472 0.98 ' 30. Rest and Convalescent Homes 472 0.31bed 237/bed 0.47/bed 0.347 2,500 31. Restaurants a. Dine-in 472 2.0 151/seat 6.86 191 4.01 2,500 b. Take-out 472 1.7 1,513 6.86 191 4.01 2,500 c. Dine-In &Take-out 472 1.9 101/seat 6.86 191 4.01 2,500 D 32, Retall Stores 472 246 0.38 0.259 2,500 rb a. Under 100,000 sq. h. b. Over 99,999 sq. ft. 33. RV Park 472 0.23/space 2.500 34. School a. Primary 1.41100 ADA 24/ 65 (2) student 2,500 n b. Secondary 1.8/100 ADA 36l 65 (2) y student 2,500 c. Colleges & Universities 1.8/100 ADA 53/ 0.08/student 65 (2) student 2,500 v m d. Private 472 0.76 65 0.860 2,500 � 35. Service Stations 472 330NJC 0.38 2,500 36. Shopping Center 472 1.67 1.057 2,500 m m t fy�e 37. Special Event Center 472 0.04/ ' attendance 2,500 38, Storage 472 0.13 2,500 39. Theaters 472 12/seat 0.47 0.290 2,500 a. Drive-In 472 31/auto 0.08 40. Used Car Lots 472 0.38 0.432 2,500 41. Warehouses 472 52 0.13 0.136 2,500 a. Under 50,000 sq. ft. D b. Over 49,999 sq.ft. 42. Wholesale Outlet 0.38 2,500 43. Non-Deflned Commercial 472 1,545/acre of 91 0.510 2,500 parcel HCF Hundred Cubic Feet RUE Residential-Unit-Equivalence ADA Average Daily Attendance ESD Equivalent Single-Family Dwelling CU capacity unit o WC Water Closet a (1) Based on flow Information provided by applicant and assumed strength of BOD =20 mg/L,SS= 150 mg/L (2) . Based on site specific survey of the types of wastewater generation sources r (3) San Diego defines 1 EDU -20 fixture units v (4) The City of Oakland charges an additional $835/commercial connection in local agency connection fees. This is in addition to the fees 2 shown In this table (5) Sacramento has an additional local collection system fee of$2,085/ape(minimum of$379). If flow is greater than 46,500/gaVacre/month, commercial users are charged based on flow rather than acreage. In this case, the local fee becomes$32/100 gal/month. These fees are in addition to those listed in this table. • = Not listed as a commercial category ` m F Table A.5 Survey of Commercial Connection Fees ($11000 an County Sanitation Districts of Orange County LA LA EBMUD Commercial Category CSDOC Sacramentof ' (City) (County) (Oakland)°) CCCSD Y, 1. Animal Kennel 307 513 ' a 2. Auto Dealership 472 513 1,111 3. Bakeries 1,412 284 10,445 4. Banks and Financial 472 246 513 759 Institutions 5. Barber and Beauty Shops 472 859 1,865 6. Bars 472 1.868 2,522 2,999 7. Bawling Alleys 472 SFC 1,120.50 800 B. Car Washes D N a. Automatic 472 (1) 13,864.50 88 9,059 w b. Self Service 472 (1) 3,577.50 88 54,339 9. Club 472 634.50 ' a. Night Club 472 1,782 ' 10. Dry Cleaners 666 11. Fire Stations ' 12. Garages 472 1.111 O D 13. Golf Course, Camp 8 Park 472 (2) 513 2,999 n 14. Halls, Lodges 8 472 12/seat 1,782 746 T Auditoriums m Q 15. Health Studios 472 2,455 3,064.50 2.999 v 16. Hospitals 472 2,668/bed 237 80 7,436 V 17. Hotels and Motels(eating) 472 800/sleeping room 426 634.50/ 2,999 room m Table " Survey of Commerclal Connection Fees ($(1000 sf) p County Sanitation Districts of Orange County LA LA EBMUD Commercial Category CSDOC Sacramentol`I (City) (County) (Oakland)01 CCCSD g 18. Laundries 3r �1 a. Self Service 512 19.521 90 ' b. Commercial/ 116 Industrial 19. Lumber Yard 175.50 ' 20. Manufacturing 472 246 ' a. Dry Manufacturing 472 175.50 ' 21. Markets a. With garbage 472 1,458 (2) > disposal units N a b. Without garbage 472 1,030 disposal units 22. Medical and Dental Office 472 734 1,539 1,638 (including eating facilities) 23. Mortuaries 472 (2) 972 (2) 24. Nursery/Greenery 472 135 586 25. Offce Buildings (public& 472 534 441 1,026 759 private,Including eating Dfacility a. Under 200,000 sq. a. m It. Over 199,000 sq. ft. Cr m 26. Parks 2,668/14 fixture units (2) Z Z4 27. Places of Worship 472 534 12/seat 256.50 622 (including residences) va MIR �., «.OWN d� ��. INMEW 28. Public Agenciespnciuding 472 759 eating facilities) 29. Regional Mall 472 1,323 ' 30. Rest and Convalescent 472 800A1ed 237/bed 634.50 892 Homes,Boarding Houses, Fratem0les, Sororities, Convents,Dormitories, etc. 31. Restaurants - a. Dineen 472 13,607 151/seat 9,261 191 b. Take-out 472 11,208 1,513 9.261 191 D c. Dine-In 8 Take-out 472 12,640 9,261 191 32. Retell Stores 472 246 513 666 a. Under 100,000 sq.0. b. Over 99,999 sq.k. 33. RV Paris 472 310.50 34. School O a. Primary 3,7361100 ADA 24/ 65 (2) 7e student D '—� b. Secondary 4.802/100 ADA 36/ 65 (2) student T a � c. Colleges 8 4,802/100 ADA 53/ 106 65 (2) Universities student d. Private 472 1,026 65 2,212 m 35. SeMce Stations 472 2671gas pump 330IWC 513 m m q� 38. Shopping Center 472 2,254.50 2,719 ar 21 37. Special Event Center 472 54 38. Storage 472 175.50 39. Theaters 472 12/seal 834.50 746 a. Drive-In 472 31/auto 108 ' 40. Used Car Lots 472 513 1.111 41. Warehouses 472 52 175.50 350 a. Under 50,000 sq.a. D b. Over 49,999 sq. h. 42. Wholesale Outlet 513 ' 43. Non-Dellned Commercial 472 1,545/acre of parcel 91 1,312 HCF Hundred Cubic Feet SFC Sewage Facilities Charge, based on Individual sewage generation factors IS Billing based on Independent Sampling _ADA Average Deily Attendance — - - (1) Based on flow Information provided by applicant and assumed strength of BOD=20 mg/L. SS= 150 mg/L o (2) Based on site specific survey of the types of wastewater (3) The City of Oakland charges an additional $835/commercial connection In local agency connection fees. This is in addition to the fees shown In this table. (4) Sacramento has an additional local collection system fee of$2,085/acre(minimum of$379). If Now is greater than 46,500 gaVacre/month, commercial users are charges based on flow rather than acreage. In this case,the local fee becomes$32/1000 c gal/month. These fees are in addition to those listed In this table. n ' - Not listed as a commercial category 74 fD ., (O W m k MAN CSDOC square footage $472/1,OOO at - - - SRCSD flow and strength $17111,OOO gal/mom $25,462/1,00D lb/mo $14,240/1,000lb/mo' - ' LA(City) How and strength $2.62/gal/day $188Ab/day $171Abtday - LACSD flow and strength $1,350/CU121 -- - - EBMUD flow and strength $47.711HCF/day (CODF) $8.8611b/day $19.3011b/day -- (Oakland)15) San Francisco •- - -- - -- San Jose How and strength $3,066,251.401MG13 $154.12Ab BOD/day $126.44Ab TSS/day $49.96Ab NH,/day CCCSD How and strength $2,572/RUEm -• -- -- San Diego plumbing fixture units $2,500/EDU"1 -- -- -- Phoenix water meter size $92,400/6"meter m -- -- -- Riverside square footage $700/3,000 at+$38.50/ft -- -- -- > of frontage N � Abbreviations: NOTES: BOD - Biochemical Oxygen Demand (1) Wastewater flows and loadings are calculated differently for different agencies. Most agencies CCCSD - Central Contra Costa Sanitation use average daily annual flows and loads. Some agencies, however, use average day District maximum month flows and loads to calculate connection fees. CODF - Chemical Oxygen Demand (2) LACSD does not break down their connection fee into flow and strength charges, but instead (Filtered) calculates a total number of Capacity Units based on flow and strength characteristics and bills CSDOC - County Sanitation Districts of the connection fee based on that. Orange County (3) CCCSD does not break down their connection fee Into flow and strength charges, but instead CU - Capacity Unit calculates a total number of Residential Unit Equivalents based on flow and strength EBMUD - East Bay Municipal Utility District characteristics and bills the connection fee based on that. 9 EDU - Equivalent Dwelling Unit (4) San Diego sets 1 EDU -20 plumbing fixture units. HCF - Hundred Cubic Feet (5) The City of Oakland charges an additional$835Andustrial connection in local agency LACSD - Las Angeles County Sanitation connection fees. This Is In addition to the fees shown In this table. r District (6) Includes a local collection system fee of$321100 gallmonth. Q lb - Pound (7) Phoenix typically gives credits to Industrial users to offset the connection fee most industrial m MGD - Million Gallons per Day users pay approximately$30,000/6"meter. Z NHS - Ammonia SRCSD - Sacramento Regional County Sanitation District TSS - Total Suspended Solids s ..� � b CSDOC square footage $5.56 $303.85 $194.48 Sacramento County flow and strength $5.131a $763.86 $427.20 LA(City). flow and strength $262 $188 $171 LACSD flow and strength $2.82 $142.72 $225.26 EBMUD.(Oaklanl flow and strength $191.35 (CODF)$265.80 $579 San Jose flow and strength $3.07 $154.12 $126.44 CCCSD. flow and strength $6.82 $156.16 $203.04 Abbreviations: Notes: > CODF—Chemical Oxygen Demand(Filtered) (1) The City of Oakland charges an addition$835Andustrial connection In local agency ro connection fees. This is in addition to the fees shown in this table. (2) Includes a local collection system fee. t7 n a T m V 2 0 V f0 Table A.8 Survey of Commercial Billing Hates of Selected California POTWs County San'aation Districts of Orange County LA LA EBMUD San San Commercial Category CSDOC Sacramenlo19 (City) (County) OaMand pl Francisco San Jose CCCSD Diegost Phoenix 1. Animal Kennel 038 ESD/1,000 sf ' b 2. Auto Dealership 71.50/ 0.2 ESD per 7,000 of of 0.38 ESDI1,000 at 2244/HCF ' 1,000 of GFA 3. Bakeries 0.5 ESD per 1.000 of of 2o33fHCF 4.19/HCF IS 2.55MCF 4.806/HCF ' GFA a5.77/manlh 5.351HCF (wholesale) 4. Banks and Financial 71SV 0.3 ESD par 1,000 of of 2.033/HCF 0.38 ESD/1,000 at 2.244/HCF Institutions 1.000 of GFA 5. Barber and Beauty 0.1 ESD for ea barber 2.244/HCF Shops or beautician chair 6. Bars 0.7 ESD per 1,000 at 2.244/HCF 7, Bawling Alleys 71.50/ 0.4 ESD for as bowling 0.99 ESD/1,000 at 2.244/HCF ' 1,000 of lane D 8 Car Washes m a. Automatic 71.501 1.0 per 9,300 gallons 2.033MCF 13.78 ESD/ 1.73/HCF 1.61MCF 2.039/1-11CF 1,000 of water used each month 1,000 at +5.77/month (No recycle) 10.15 ESD/1,000 at ' (recycle) b. Sell Service 71.501 0.7 ESD for as 2.0331HCF 2.61 ESD/1,000 at 2 039'HCF 1,000 of washing stall 9. Club 0.46 ESD/1,000 aI ' a. Night Club 1.30 ESD/1,D00 of ' 10. Dry Cleaners 1.7 ESD per 1,000 at of 2.244IHCF ' 1 GFA D 11. Fire Stations 1,00 ESD per station ' m 12. Garages 71.50/ 0.1 ESD for each 2.244/HCF rz 1,000 at service bay 2 o' 13. GoX Course,Camp a 71.50/ 2.033/HCF 0 38 ESD/1,000 sl � 2.445/HCF Park 1,000 at V 14, Halls,Lodges 71.50/ 0.3 ESD per 1,000 sl of 2.033MCF 1.30 ESD/1,000 of 2.244/HCF ' UO Auditoriums 1,000 at GFA Ce 2 n` Nfi 4�.nd 15. Health Studios 71.501 02 ESD per 1,000 of of 2.033HCF 224 ESD/1,000 at 2244/HCF 1.000 at GFA (with showers) 1.12 ESD/1,000 at (without showers) 16. Hospitals 71.50/ 1.0 per 9,300 gallons 2.0331HCF 1.60HCF 1.81HCF 2.Mg1HCF 1,000 of wrier used each month t5.77/momh (1.1 per bed) 17. Hotels and Motels 71.50/ 0.4 ESD per as 2.033HCF 0.47 ESD/par mom 2.34HCF 5.15fHCF 1.86/HCF 2.445/HCF (ea0ngl 1.000 of sleeping room *5.77/month 18. Laundries a. SOH Servke 0.5 ESD for ea laundry 2.033/HCF 14.24 ESD/1,000 a1 1.77/HCF 5.57HCF 1.71HCF 2.0391HCF ' machine •5.77/month b. Commercial 1.0 per 9,300 gallons 2.11HCF Basedon 2.244HCF 1.3123/HCF D Industrial water used each month 45.77Mronth Independent o sampling 19. Lumber Yard 0.15 ESDII AW d 2.244/HCF 20. Manufacturing 71.50/ 2.033HCF 1.17 ESD/1,000d 1,000 d a. Dry Manufacturing 71 SO 2.033MCF 0.15 ES13/1,000 at ' 1,000 d 21. Markets - - a. With garbage 71.5(/ 0.8 ESD per/,000 at of 1.341ESD/10014 3.6261HCF 3.499HCF disposal unhs 1,0ODd GFA 71 D b. Without garbage 71.501 02 ESD per 1,000 at01 ' disposal units /,=d GFA . 22. Medical and Dental 71.50/ 0.4 ESD per 1,000 sf of 2.033HCF 2.0391HCF m Office Qnducfl g 1,000 at GFA 2 eaft fad t ies) . 23. Mortuaries 71.50/ 0.8 ESD per as SFC 0.89 ESD/1,000 of 3.4281HCF 3.499HCF 1.17B7HCF _ 1,000 of slumber room J 24. Nursery/Greenery 71.50/ 0.10 ESD/1,000 at m 1.000 at ro m 25. OBka Bldgs(public a 71.50/ 2.033(RCF 0.78 ESD/1,000 of 1.72/HCF 2.244/HCF P private Including 1,000 of eating facilities) a. Under 200,000 sq. 0.2 ESD per 1,000 of of ft. GFA b. Over 199,999 sq. 1.0 per 9,300 gallons ft. of Water used each month(0.3 per 1,000 of of gross floor area) 28. Parke 1.0 ESD per comfort 2.244/HCF station 27. Places of Worship 71.501 0.2 ESD per 1,000 at of 2.033/HCF 0.18 ESD/1,000 sf 1.736/HCF 2.244/HCF (Including residences) 1.000 of GFA D 28. Public:Agencies 71.501 .8 ESD per 1,000 of of 2.033/HCF 1.738MCF 2.244/HCF 0.8193/HCF w (including eating 1.000 of GFA -' facllhles) 29. Regional Mall 71.50/ 1.22 ESD/1,000 sf I'm of 30. Roo and 71.50/ 0.4 ESD for each bed 2.0331MCF 0.47 ESD/per bad 1.736MCF 2.244/HCF ' Convalescent Homes, 1,000 at Boarding Houses, Fraternities. Sororities,Convents, Dormhodes,etc. 31. Restaurants 9 D a. Dine-In 71,50/ 2.0 ESD per 1,000 at of 2.033MCF 8.80 ESD/1,000 of2.98MCF 6.42MCF 3.07MCF 3.566/HCF 3.078MCF 1.5703/HCF 1,000 at Indoor floor area plus +5.77/month 1 per 1,000 of of gross T outdoor services area v 2 to. Take-out 71.501 1.7 ESD per 1,000 clot 2.033lHCF 6.42MCF 3.078MCF 1.4931MCF I'm of GFA ? c. Dine-In d 71.501 1.7 ESD per 1,000 sf of 2.D33/HCF 6.421HCF 3.078/HCF Take-out 1,000 a1 GFA w 32. Retell Stores 71.50/ 2.033/HCF 0.38 ESD/1,000 of 1.72/HCF 2.244/HCF oa 1,000 at m a. Under 100.000 sq. 0 0.1 ESD per 1,000 of of ' t h., GFA b. firer 99,999 sq.ft. 1.0 ESD per 9,300 ' gallons of water used each month 33. RV Park 71.511/ 0.24 ESD/space 2.445MCF 1,000 at 34. School 2.039/HCF a. Primary 1.0 ESD per 100 avg. 2.033/HCF 1.30MCF 1.95/HCF 1.738/HCF 2.039/HCF ' daily attendance +5.77/month b. Secondary 2.SESDper100avg. 2.033/HCF 1.30/HCF 1.95MCF 2.039/HCF ' da4 attendance +5.77/month C. College It 1.0 ESD per 9,300 2.033/HCF 0.08 ESD/per 1.95/HCF 2.039/HCF Unlvemttbs gallons olweter used student N each month(2.2 per 100 full-fima equivalent students) d. PrNab 71.501 0.75 ESD/1,000 of 2.039/HCF 1,000 at 35. Service Stations 71.50/ 0.1 ESD breach gas 0.38 ESD/1,000at 1.981DF 2.244/1-1CF 1,000 of Pump 38. Shopping Center 1.92 ESD/1,000 of 2.244/HCF 37. Special Event Center 71.501 .03 ESD/ 2.244/HCF 1,000 of attendance 38, Storage 2.033/HCF 0.15 ESD/1,000 of ' 2.244/HCF 39. Theatem 71.50/ 0.3 ESD per 100 seats 2.033MCF 0.47 ESD/1,000 of • 2.244/HCF ' r 1,000 at c a. Drive-In 71.60" 2.033MCF 0.08 ESD/1,000 at ' m 1,000 sl' ? 40. Used Car Lots 71.501 0.2 ESD per 10 fixture 2.244MCF v 1,000 of unhs m 41. Warehouses 71.501 2.033/HCF 0.15 ESO/1,000 sf 2.244/HCF . 1.00081 m oil �"Y y r� a. Under 50,000 sq. 0.1 ESD per 1,OOD of of ff. GFA b. Over 49,999 sq.a. 1.0 par li gallons of water used each month 42. wholesale Outlet 0.39 ESD/1,000 of 2.244/HCF 43. Non-Deffned 71.50/ 1.0 per 9,300 gallons 1.6"CF 5.35/HCF 1.72/1FiCF 1.7311 2.244/HCF 0.7170/HCF Commercial 1,000 of water used each month +5.77/month 1.461/1FICF of metered flow'•) Note(s): NOTES: GFA - Gross floor area (1) These rates are for District No. 13,which does not receive ad GSF - Gross square feet valorem property taxes. They are assumed to be representative y HCF - 100 cubic foot of the total charge levied in each district. 6 ESD - Equivalent single dwelling (2) The rates shown here are based on metered water flow and SFC - Sewage facilities charge, based on Individual sewage generation assume a 100 percent return to sewer. factors (3) The rates shown for EBMUD in this table Include a local collection IS - Billing based on "independent sampling'(of largest[us) system component charged by the City of Oakland. - Not listed as a commercial category (4) There Is an additional local collection system rate of $4.50/user/month. This rate is not Included In the rates listed in this table. 0 'r1 N O 2 a Z �Jp r0 i b eA . 1. Auditodum/Amusement 71.50 92.52 347.21 97.50 349.33 ' 913.72 293.76 296.49 $383.25 2. Bowling/Skating 71.50 74.25 189.28 391.59 125.90 127.07 $164.25 3. Car Wash, Self-Serve $71.50 195.76 660.17 1,827.44 587.51 592.32 $697.48 4. Car Wash, Conventional $71.50 1,033.50 3,192.72 2.906.83 3,134.32 $3,681.38 5. Church 71.50 79.68 13.50 109.25 130.53 41.97 42.36 $54.75 6. Club $71.50 143.88 124.00 34.50 169.27 326.33 104.91 105.89 $136.88 7. Drive-In Theater $71.50 59.52 6.00 85.25 52.21 16.79 16.94 $21.90 D i� 8. Golf Course/Camp/Park $71.50 99.20 28.50 149.27 261.06 83.93 64.71 $119.31 9. Health Spa w Showers $71.50 92.52 595.22 168.00 549.40 1,566.38 503.58 508.27 $657.00 10. Convalescent Home - $71.60 - 70.50 169.27 326.33 104.91 105.89 $136.88 11. Hotel(Motel/Rooming $71.50 117.50 211.97 314.13 113.45 105.89 $149.14 House 12. Indoor Theater $71.50 35.25 85.25 52.21 16.79 16.94 $21.90 13. Mortuary/Cemetery $71.50 92.55 99.20 66.75 149.27 261.06 83.93 167.18 $170.74 0 14. Nursery/Greenhouse $71.50 59.62 24.80 7.50 89.25 65.27 20.98 21.18 $27.38 15. Office Building $71.50 79.68 198.41 57.00 229.29 522.13 167.86 169.42 $219.00 m v 16. Private School 71.50 56.25 196.11 522.13 .190.31 169.42 $199.00 2 z 17. Prolesslonal Building 71.50 105.36 297.61 118.14 309.32 783.19 251.79 254.13 $298.49 18. Regional mall 71.50 66.84 148.81 91.50 189.28 391.59 125.90 127.07 $164.25 19. Restaurant 71.50 272.28 992.04 660.00 1,523.38 3,132.75 1,498.06 1,740.09 $1,501.96 • i - 7 qr�d 20. RV Park 71.50 54.56 113.26 143.59 46.16 46.59 $65.62 21. Service Sla6on/Auto 71.50 79.68 492.00 28.50 149.27 261.06 55.43 84.71 $109.50 repair-Sales 22. Shopping Center 71.50 66.84 322.41 144.00 329.33 848.45 272.77 175.31 $355.88 23. Store/FinancialInstitution 71.50 92.52 99.20 28.50 149.27 261.06 83.93 84.71 $109.50 24. Supermarket 71.50 79.68 148.81 100.50 189.28 391.59 125.90 127.07 $256.11 25. Warehousing/Open 71.50 66.84 24.80 11.25 89.25 65.27 20.98 21.18 $27.38 s Storage ' Not listed as a commercial category (1)The rates shown for EBMUD In this table Include the local collection system component charged by the City of Oakland. (2)The rates shown for Sacramento In this table Include the collection system component. 0 9 D m m P 2 m z J m m w S s( @ t t d . D(�b P�i0BA1k' tl 1. Animal Kennel r BOD-150 COD-518 COD 516 TSS-150 SS-278 SS-192 2. Auto Dealership r r COD-516 COD-516 TSS-280 SS-278 SS-192 3. Bakeries r BOD-1,250 SOD-1,000 CODF-/,700 BOD-720 BOD0,000 BOD-1,000 ' TSS-1,280 TSS-800 TSS-1,200 TSS-400 TSS-800 TSS-600 4. Banks and r r BOD-150 COD-518 r r COD-516 TSS-250 Financial TSS-150 SS-278 SS-192 Institutions D . Barber and Beauty r r BOD-I50 r r TSS-250 Shops TSS-150 m 6. Bam r r BOD-1,000 r r BOD-200 TSS-240 ' TSS-600 TSS-200 7. Bowling Alleys r r COD-1,407 r r COD-514 TSS-250 (Including Eating SS-W SS- 195 Faclil0es) B. Car Washes a. Automatic r r BOD-20 COD-514 CODF-290 BOD-20 BOD-20 TSS-150 ' TSS-150 SS-271 TSS-200 TSS-150 TSS-150 O (m recycle) b. Sell Service r r BOD-20 COD-514 CODF-290 r TSS-150 TSS-150 SS-271 TSS-200 (wand) T v COD-521 w SS-274 ,2 (recyclo) Club r COD-518 SS-259 ra m e rz� ryi3}9gD Phoenix a. Night Club r COD-514 COD-515 SS-271 SS-197 10. Dry Cleaners r r r r TSS-250 11. Flre Stations r r r r. 12. Garages r r r r TSS-280 13. Golf Course,Camp r COD-516 COD-SIG TSS-400 ' A Park SS-278 SS-192 14. Halle,Lodges r r BOD-I50 COD-514 r r COD-514 TSS-250 D Auditoriums TSS-160 SS-271 SS-195 u V 15. Health Studios r r 6OD-150 COD-518 r r COD-5,156 TSS-25D ' TSS-150 SS-270 SS-1,958 (with showers) COD-518 COD-516 TSS-272 SS-196 (without (without showers) showers) I& Hospitals r r BOD-250 CODF-160 BOD-230 BOD-250 TSS-135 O TSS-100 TSS-200 TSS-85 TSS-100 33 D 17. Hotels and Motels r r COD-518 CODF-260 COD-841 BOD-310 COD-518 BOD-500 TSS-400 (Esting) SS-289 TSS-680 SS-224 TSS-121 SS-192 TSS-800 r (eatln9) (eating) v CODF-11 BOD-310 m TSS-320 TSS-120 ,z (no eetln9) (no eating) v 18. Laundries m Table A.10 Wastewater Strength Characteristics of Commercial Categories for Selected California POTWs" County Sanitation Districts of Orange County Commercial CSDOC Sacramento10 LA(City) LA EBMUD San San Jose CCCSD SWRCB San Diego Phoenix Category (County) Francisco BOD-250 BOD-181 BOD-215 COO-563 CODF-190 COD-684 BOD-250 BOD-200 BOD-175-250 3 Residential Strength TSS-250 TSS-207 TSS-205 TSS-272 TSS-270 TSS-279 TSS-250 TSS-215 TSS-176-250 a. Self Service r r BOD-150 COD-514 CODF-360 COD-1,387 800-150 COD-516 BOD-150 TSS•110 TSS-110 SS-270 TSS-290 TSS-171 TSS-110 SS-193 TSS-110 b. Commercial& r BOD-800 COOF-570 COD-1,539 BOD-670 BOD-450 TSS-250 BOD-650 Industdal TSS-800 TSS-310 TSS-181 TSS-680 TSS-240 (commercial) TSS-450 (Commercial) (general (commercial) wash& fold) • CODF-1,132 Independen BOD-670 TSS-770 TSS-394 Illy sampled TSS-680 (Industrial) (Industrial) (Comm& (Industrial) Ind) 19. Lumberyard r COD- COD- TSS-300 m SS-432 432 SS-432432 20. Manufacturing r BOD-150 COD-1,115 ' TSS-150 SS-420 a. Dry r COD-1,103 COD-1,103 ' Manufacturing 55-432 SS-432 21, Markets a. With garbage r BOD-800 COD-1,599 r COD-1,595 BOD-800 TSS-850 disposal units TSS-800 SS-799 SS-803 TSS-800 O D3 b. Without r r r > garbage disposal units 22. Medical and Dental r r BOD-130 r r TSS-135 ' v Offices(Including TSS-80 y eating facilities) 23. Mortuaries r BOD-450 BOD-800 COD-1,595 r BOD•1,595 BOD•800 TSS-850 BOD•600 TSS-450 TSS-800 SS-803 SS-803 TSS-800 TSS-100 fp m m Table A.10 Wastewater Strength Characteristics of Commercial Categories for Selected California POTWs" xx County Sanitation Districts of Orange County Commercial CSOOC Sacramento!° LA (City) LA EBMUD San San Jose CCCSD SWRC8 San Diego Phoenix Category (County) Francisco 5 BOD-250 000.181 BOO-215 COD-563 COOF-190 COD-684 BOD-250 BOD-200 BOD-175-250 Residential Strength TSS-250 TSS-207 TSS-205 TSS-272 TSS-270 TSS-279 TSS•250 TSS-215 TSS-175-250 24, Numery/Greenery r COD-528 COD-528 SS-288 SS-192 25. Office Ridge, r r BOD-130 COD-516 r r BOD-130 BOD-130 TSS-250 (Including eating TSS-80 SS-270 TSS-80 TSS-80 facllllles) 26, Parks r r r r COD-516 TSS-250 SS-192 27, Places of Worship r r BOD-150 COD-504 r r COD-504 TSS-250 (Including TSS-150 TSS-264 SS-192 residences) D 28, Public Agendas r r r TSS-250 BOD-225 (Including eating TSS-200 faculties) 29. Regional Mall r BOD-600 COD-1,679 ' TSS-400 SS-816 mini-mall 30. Rest and r r BOD-250 COD-518 r r BOD-230 BOD-250 TSS-225 Convalescent TSS-100 SS-269 TSS-85 TSS-100 Homes,Boarding Houses, Fratemi0es, O Sormllies, 7J Convents, D Donnimrles,etc. T31. Restaurants m � a. Dlne In r BOD-800 800-1,000 COD-2.000 CODF-560 COD•1,153 BOD•1,250 COD-2,000 BOD•1,000 TSS=640 BOD=925 w TSS-800 TSS-600 SS-600 TSS-940 TSS-303 TSS-560 SS-000 TSS•600 TSS-525 � b. Take-out r BOD-800 BOD-1,000 CODF-110 COD-1,153 TSS=640 BOD=750 TSS-8D0 TSS-600 TSS-320 TSS-303 TSS-600 ro w Table A.10 Wastewater Strength Characteristics of Commercial Categories for Selected California POTWs'• County Sanitation Districts of Orange County Commercial CSDOC Sacramentot" LA(CO) LA EBMUD San San Jose CCCSD SWRCB San Diego Phoenix Category (County) Francisco BOD-250 BOD-ISt BOD-215 COD-563 CODF-190 COD-684 BOD-250 BOD-200 BOD-175-250 Resldentlal Strength TSS-250 TSS-207 TSS-205 TSS-272 TSS-270 TSS-279 TSS-250 TSS-215 TSS-175-250 c. Dine-in& r BOD-800 SOD-1,000 r COD-1,153 TSS-640 ' Take-cut TSS-800 TSS-600 TSS-303 32. Retail Stares r r BOD-150 COD 516 CODF-110 r BOD-130 COD-516 BOD-150 TSS-300 TSS-150 SS-276 TSS-320 TSS-80 SS-192 TSS-150 33. RV Park r COD-741 TSS-400 SS-305 34. Schools a. Primary r r 600-130 CODF-140 r COD-130 BOD-130 TSS-135 TSS-100 TSS-80 TSS-100 TSS-100 D b. Secondary r r SOD- 130 r r COD-130 BOD-130 TSS-135 Ao TSS-100 TSS-100 TSS-100 C. College& r r BOD-130 COD-540 r r COD-130 COD-540 BOD=130 TSS=135 Universities TSS-100 SS-300 TSS-100 SS-180 TSS=100 d. Privets School r BOD-130 COD-516 COD=516 TSS-135 TSS-100 SS-270 SS-198 35. Services Stations r r COD-516 r r BOD=160 COD=516 BOD=180 TSS=280 SS-276 SS-280 SS-192 TSS-280 O 6, Shopping Center r COD-1,107 WA COD-516 TSS-300 D7 SS-432 SS-192 D 37. Soft Water Service r BOD=3 ' TSS-55 r Q 38, Speclai Event r COD-480 TSS-250 ' 2 Center SS-240 to IZ 9. Storage r BOD-150 COD-1,199 COD=1,103 TSS=250 z1 TSS-150 SS=432 SS=432 iv m t Table A.10 Wastewater Strength Characteristics of Commercial Categories for Selected California POTWs" County Sanitation Districts of Orange County Commercial CSDOC Sacramemo1'I LA(City) LA ESMUD San San Jose CCCSD SWRCB San Diego Phoenix Category (County) Francisco 6 BOD-250 80D-187 BOD-215 COD-583 CODF-190 COD-SlM BOD-250 80D-200 BOD-175-250 Residential Strength TSS-250 TSS-207 TSS-205 TSS-272 TSS-270 TSS-279 TSS-250 TSS-215 TSS-175-250 0. Theaters r r BOD-150 COD-518 r r COD-513 TSS-250 ' TSS-150 SS-269 SS-209 a. Drive-In r BOD-150 COD-540 COD-540 TSS-50 SS-300 SS-100 1, Used Car Lots r r r r TSS-280 2. Warehouses r r BOD-150 COD-1,103 CODF-449 r COD-1,103 TSS-250 TSS-150 SS-432 TSS-209 SS-432 3. Wholesale Outlet r COD-518 COD-516 TSS=300 SS-276 SS-192 D 4. Non-Deflned r r r COD-684 BOD-130 TSS-250 Commercial TSS-279 TSS-80 Note(s): r Residential strength Not listed as a commercial category CSDOC does not currently utilize flow and strength characteristics for commercial categories. Therefore, they are not included on this list. v a D m m U C d J m i i i I w " " � Caurity'§ahHa�loi)�Sfstrtcts uYt7rangr G4auilly `' ` Y '' CSDOC Flow&Strength. $167.400/MG $103-182/1,000lbs $131-20611,000lbs - Sacramento Flow& Strength $326/MG $154/1,000(bs $9211,000 lbs -- LA (City) Flow& Strength $2,718/MG10 $258/1,000lbe) $343/1,OOO lbsm' -- LACSD Flow&Strength $49-263/SU01 EBMUD Flow& Strength $1,358/MG $124/1,000 lbs CODF $219/1,000 lbs -- San Francisco Flow&Strength $5,489/MG $11211,000 lbs COD $534/1,000 lbs $751/1,000(bs!3) San Jose Flow&Strength $1,843/MG $98/1,000lbs $123/1,000lbs $950/1,000 ibs« CCCSD Flow& Strength $958/MG $400/1,OOO lbs $28611.000lbs -- > San Diego Flow&Strength $2,286/MG - $0.22/100 ppm N Phoenix Flow& Strength $682/MG $119/1,O00 lbs $113/1,000 lbs -- Riverside Flow& Strength $1,017/MG $91/1,000 lbs COD $208/1,000 lbs $563/1,000 lbs COD Chemical Oxygen Demand CODF Chemical Oxygen Demand(Filtered) MG Million Gallons SU Sewage Unit - -- '-- `- (1) LACSD calculates a number of sewage units(SU)based on the flow and strength characteristics and bills a rate/SU. (2) For NH,(ammonia) O (3) For grease and oil (4) Includes the cost for BOD and TSS up to BOD concentration =215 mgA and TSS concentration=205 mgA (5) Cost per pound In excess of BOD-215 mgA, and TSS-205 mgA (6) The rates shown Include a local collection system component for Flow and TSS. They do not include an additional local collection charge of m $4.08/user/month. 2 2 m z J m Appendix B 1. Introduction The purpose of this appendix is to allocate the capital and operating costs of the County Sanitation Districts of Orange County(CSDOC) wastewater facilities to the billable constituents of wastewater flow, five day biochemical oxygen demand (BOD,), and total suspended solids (TSS). These costs will subsequently be distributed to the individual users in proportion to the amount of billable constituents they contribute. The costs to convey,treat, and dispose of wastewater consist of two major categories: 1)capital costs and 2) operation and maintenance costs. Capital costs are those initial costs for the design and construction of treatment facilities to replace existing facilities, upgrade the level of treatment, or to provide additional capacity. Operation and maintenance costs are on-going costs incurred to operate and maintain the treatment facilities (e.g., labor, power, chemicals, etc.). Capital and operations and maintenance costs must be allocated to the billable constituents in order to identify the costs that must be recovered from each user Gass. Historically, the Districts, and most other agencies, have allocated both capital and operation and maintenance costs using the same allocation percentages for both. However,capital and operation costs are incurred for two very distinct purposes, so in order to equitably account for these costs, separate allocations can be made. Nevertheless,there are many rational ways to interpret these allocations and sometimes these allocations are adjusted to accommodate specific rate philosophies. In this case,two sets of allocations were developed. The first set of allocations was developed with the philosophy that operation and maintenance and capital costs are incurred for two very distinct purposes. This led to an allocation that weighted the costs heavily toward flow for both operation and maintenance and capital costs. This allocation tended to increase rates for dischargers that had installed effective on-she treatment programs while decreasing rates for dischargers who had no on-she treatment. This allocation directly contradicted the philosophy of encouraging dischargers to install on-she treatment, and thereby decreasing their impact on the system. This is a philosophy that CSDOC wants to encourage. In order to accommodate this philosophy a second set of allocations was developed. This new allocation weighted the costs more toward BOD and TSS,thus supporting the philosophy of encouraging dischargers to install on-sfte treatment. This is the allocation that is used in developing the final rate structure that was recommended by the RAC. Overall Approach In order to account for system costs and equitably charge wastewater dischargers for their use of the wastewater conveyance, treatment and disposal facilities, the system is divided into a s1/3 SOMEGORTSWATEAPBWM B-1 DRAFT- February 17, 1998 number of unit processes. A simplified process schematic of the CSDOC Treatment Facilities is presented in Figure B.1. Capital and operating costs associated with each unit process can then be allocated among users and user groups in proportion to their demand on the system. -. The basis for the review of allocations of capital costs to unit processes was to assess which constituents)determine the function of the unit process and/or cause'capital costs to be Incurred. In most cases,the basis of this determination Is directly related to design criteria. The applicable design criteria developed for the unit processes are presented in Table B.4 at the end of this Appendix. These are taken directly from the 19B9 Master Plan. The basic philosophy utilized in reviewing allocations to operations and maintenance(O&M) unit processes Is to determine what O&M costs are incurred by each process and then assess which constiluent(s)actually cause these expenses to be incurred. The following sections provide a discussion of the allocation of capital and O&M costs to each treatment process. The discussion addresses the allocations first for the scenario that they are weighted heavily toward flow and then for the scenario that they are weighted toward BOD and TSS. The scenario that is weighted toward BOD and TSS Is the allocation that was used in the final user charge and connection fee calculations for the reasons cited in the introduction to this appendix. A capital cost breakdown for each treatment process is included in Table B.5 at the end of this appendix. An O&M cost breakdown for each treatment prt ess is included in Table B.6 at the end of this appendix. Unit Process Designations Existing designated unit processes were reviewed. Table B.1 lists 014 existing designated processes. Capital Costs Capital costs include the costs of planning,engineering and constructing new treatment facilities. Capital costs include both direct expenditures from Districts funds and any costs associated with short or long-term debt Incurred by the Districts to finance the construction of the facilities. The proposed listing of treatment processes and the associated percentage allocation to each billable constituent for distributing capital costs are shown in Table B.2. These values are based on the allocation that is weighted toward BOD and TSS. The last Rem in Table B.2, non-assignable costs,consist of all costs that cannot be assigned to an individual treatment process. These costs are allocated to the billable constituents using the cost-weighted percentages of the accumulated processes. - Operation and Maintenance Costs Operation and maintenance costs include the costs of labor, materials,chemicals, power,and other costs associated with operating and maintaining the treatment facilities. Operation and S:M30B t)(WPOmSVNTE-APB.WPo B-2 :DRAFT- February 17, 1998 RRQMR]COtl W R WKIN9Ylf G1.Mf Primary Activated Sedimentation and Sludge/Trickling Grit Removal Filter Secondary Interceptors 0 EUClarification Influent 17 Li Pumping Sludge • Solids Solids Handling Digestion Solids Thickening Disposal Effluent Pacific Ocean Pumping CSDOC TREATMENT FACILITIES PROCESS SCHEMATIC FIGUREB-1 n 4 caroLLo COUNTY SANITATION DISTRICTS e n G I InC ! r 5 I OF ORANGE COUNTY Table B.1 Existing Unit Process Designations County Sanitation Districts of Orange County Existing Unit Process Designation Percent of Actual FV 95/96 O&M Costs Collection and Diversion < 1% Interplant < 1% Headworks 3% Primary Sedimentation 4% Activated Sludge Process 3% Oxygen Activated Sludge 1% Blower Equipment and Structures < 1% Aeration Equipment and Structures 1% Trickling Fitters < 1% Secondary Sedimentation 1% Sludge Thickening 1% Digestion 4% Solids Handling 4% Solids Disposal 11% Effluent Disposal 1% Non-assignable Costs 66% (1) Source: CSDOC Table B.2 Capital Cost Allocations to Billable Constituents County Sanitation Districts of Orange County Allocation Percentages(%) Unit Process Flow BOD TSS Collection and Diversion 90 10 — Interplant 90 10 -- Headworks 75 5 20 Primary Sedimentation — 30 70 Activated Sludge Process -- 100 -- Oxygen Activated Sludge — 100 -- Blower Equipment and Structures -- 100 -- Aeration Equipment and Structures — 100 -- Trickling Filters 44 32 24 Secondary Sedimentation -- 70 30 Sludge Thickening -- 100 -- Digestion -- 25 75 Solids Handling _ — 20 80 Solids Disposal — 45 55 Effluent Disposal 100 — -- Non-assignable Costs 44 32 24 S:K90Be00WEPOaT TEAPsw B-4 DRAFT - February 17, 1998 maintenance costs for each treatment process are best allocated among the billable constituents according to the degree to which each constituent causes the costs to be incurred. The proposed breakdown of processes and the percentage of their operation and maintenance costs allocated to each billable constituent are shown in Table B.3. These values are based on the allocation that is weighted toward BOD and TSS. Process designations are the same as those identified for distributing capital costs. r Collection and Diversion 90 5 5 Interplant 9D 5 5 Headworks 75 5 20 Primary Sedimentation 15 25 60 Activated Sludge Process — 100 — Oxygen Activated Sludge — 100 — Blower Equipment and Structures — 100 — Aeration Equipment and Structures — 100 — Tridding Filters — 100 — Secondary Sedimentation — 100 — Sludge Thickening — 100 — Digestion — 25 75 Solids Handling — 20 80 Solids Disposal — 45 55 Effluent Disposal 100 — — Non-assignable Costs 13 40 47 2. Collection and Diversion The interceptors and pump stations consist of those conveyance facilities that were constructed to consolidate the treatment into regional wastewater treatment plants. All conveyance facilities that are constructed and maintained by the individual Districts are not a part of this study. In SM30Be0W1EPORBVIAMAMWPO B-5 DRAFT-February 17. 1998 addition, the interplant conveyance systems are used to transport both treated and untreated wastewater between Plants 1 and 2. Capital Cost Allocation The sizing of the collection and diversion facilities is controlled primarily by the design flows that they must accommodate. Consequenty, capital costs should be fully allocated to the flow constituent for the scenario that weights costs more to flow. For the scenario that weights costs more to BOO and TSS,the allocation philosophy is similar. In this case, CSDOC's sewers are typically 36 inches and larger. Sewer lines of this size are typically lined with PVC for corrosion control. The corrosion control is a direct result of SOD in the system. The PVC cost is approximately 10 percent of the pipe cost. Consequently,the allocations are 90 percent to flow and 10 percent to BOD. Operation and Maintenance Cost Allocation The majority of the operation and maintenance cost attributable to collection systems is also a direct function of the quantity of flow that the system conveys. However, costs associated with pipeline cleaning and odor control facilities may be more closely related to wastewater strength, as measured by BOO,and TSS. For this reason, an allocation of 5 percent of the interceptor system operation and maintenance costs to each of the BOD,and TSS constituents with the remaining 90 percent allocated to flow is recommended. This allocation would be the same for both allocation scenarios. 3. Headworks and Effluent Disposal The headworks at Plant 1 and 2 consist of influent screening, pumping and grit removal. The screens remove large solids. The pumps lift the wastewater to the level required to reach the downstream treatment units. The grit removal removes small inorganic solids. All treated effluent is transported to the outfall pump stations and outfalls at Plant 2,where it is pumped to the ocean. Capital Cost Allocation Design of the headworks and effluent disposal processes are based on flow. The solids removed in the headworks are classified neither as BOO or TSS. Consequently, capital costs associated with these processes are recommended to be allocated based on flow only when using the scenario that weights costs more to flow. For the scenario that weights costs more to BOO and TSS the allocation would be the same for effluent disposal because the capital costs should be fully allocated to flow. For the headworks it is possible to assume that some of the capital costs are based on odor control facilities (5 percent),which would be related to the amount of BOD in the wastewater. In addition,some of the costs could be allocated to TSS(20 percent),which is based on the assumption that part of the design of screenings and grit removal is based on the SWOBBOPAEPOmSAATE- SWPD B-6 DRAFT- February 17, 1998 amount of solids in the wastewater. Consequently,the allocations are 75 percent to flow, 5 percent to SOD and 20 percent. Operation and Maintenance Cost Allocation Operation and maintenance costs associated with these processes are allocated to flow for the scenario that weights costs more toward flow. These costs are assumed to be directly proportional to the amount of flow. Power costs are directly related to the amount of flow. labor and materials are also highly dependent upon the amount of flow because maintenance and repairs are dependent upon equipment run times. For the scenario that weights costs more to SOD and TSS the allocation would be the same for effluent disposal because the operation and maintenance costs are incurred based on the amount of flow. For the headworks it is possible to assume that some of the operation and maintenance costs are based on odor control facilities (5 percent),which would be related to the amount of SOD in the wastewater. In addition, some of the costs could be allocated to TSS(20 percent), which is based on the assumption that a lot of the operation and maintenance of the headworks is based on the amount of screenings and grit in the wastewater. Consequently,the allocations are 75 percent to flow, 5 percent to SOD and 20 percent. 4. Primary Treatment The primary treatment category includes primary sedimentation tanks and equipment;and the primary sludge pumping equipment and piping. The purpose of the primary sedimentation tanks is to remove the majority of the TSS in the wastewater by allowing the particulate material to settle to the bottom of the tanks where it is collected and pumped to the digesters as primary sludge. Some total suspended solids are also removed in the secondary treatment system. Capital Cost Allocation Although the purpose of the primary treatment process is to remove TSS,the capital costs that are incurred for this process category are primarily determined by the amount of flow that must be treated. The design criteria for sizing primary sedimentation tanks is based on overflow rates. Therefore,the tankage(structural)costs,which are about 40 percent of the total capital costs of these processes, are allocated to the flow component. The controlling overflow rate that affects the costs in this case is that provided by the average flow. A portion of the influent SOD,is removed by this process because it is exerted by the solids that are removed in the primary sedimentation process. However, oxygen demand is a relatively poor Indicator of the capital costs that are incurred for this process. Therefore, none of the capital costs are allocated to oxygen demand. A portion of the capital costs associated with the primary sludge pumping equipment have been allocated to TSS. Thirty percent of the equipment capital costs of this process category have been assigned to TSS and the remaining 70 percent to flow. The net capital cost allocation for suaoeeomnEronrsaare-ave.wvo B-7 DRAFT- February 17, 1998 this process category is about 80 percent to flow and 20 percent to TSS for the scenario that weights costs more to flow. For the scenario that weights costs more to BOD and TSS the allocation would be 30 percent to BOD and 70 percent to TSS. This allocation is based on several other agencies and the State Water Resources Control Board recommended allocations. Their philosophy is based on the premise that the main function of the primary clarifier is to remove TSS and along with the TSS some DOD is also removed. Operation and Maintenance Cost Allocation Operation and maintenance costs for this process result mainly from labor, and materials. Minor amounts of chemicals are used in the process and the power requirement is minimal. The billable constituents that result in the costs are flow and TSS. The flow component results from the need to operate and maintain equipment and structures in the flow stream (e.g., weirs, tankage). This cost is related to the amount of flow that the process handles in a year. The TSS component results from equipment wear and maintenance that can be attributed to the total annual quantity of sludge removed by the process(e.g., sludge pumps). An allocation of 60 percent to TSS and 40 percent to flow has been made for the scenario that weights costs mom toward flow. For the scenario that weights costs more to SOD and TSS the allocation _. would be flow 15 percent, DOD 25 percent and TSS 60 percent. This rationale is based on the premise that the advanced primary treatment removes some of the BOO that normal primary treatment would not. Thus the allocation is not made entirely to flow and TSS. 5. Oxygen Activated and Conventional Activated Sludge Systems The activated sludge systems,together with the secondary sedimentation tanks and the air and oxygen generation processes, comprise the secondary treatment system of the plants. The secondary treatment system must meet the plarnts discharge requirements for TSS and BOD, removal. It therefore, removes the majority of the BOD,and the remaining TSS needed to meet the discharge requirements. Capital Cost Allocation The sizing of activated sludge tanks and associated facilities is generally organically(SOD,) controlled. Structural and equipment costs directly associated with the tank size should, therefore, be assigned solely to the BOD,billable constituent. Aeration equipment costs are directly controlled by the organic loading to the tanks and are also assigned entirely to the BODE billable constituent. Structural and equipment costs attributable solely to the flow component are relatively minor for this process as they are associated with the channels and gates provided for the system. For this reason, the recommended capital cost allocation for this process is 100 percent to BOD,. No costs have been assigned to the TSS constituent for this process. This would hold for the scenario that allocates costs more to BOO and TSS. svaM1saovaeromSMTEA�w B-8 DRAFT• February 17, 1998 J.. Operation and Maintenance Cost Allocation Operation and maintenance costs for this process result from labor, materials, chemicals, and power to run the system. This facility represents a major component for operational labor due to the need to constantly make process control adjustments. It is also the most energy intensive due to the electrical power consumed by the aerafion and oxygenation devices. Past plant experience has shown that organic loading considerations have almost always determined the operational requirements and costs of this process. Maintenance requirements and costs and replacement costs are primarily associated with the amount of oxygen demanding materials that need to be treated in the facility. Some costs are incurred as a result of the hydraulic elements of the facilities. However,these costs are very small compared to the overall costs for this process and are believed to be significantly less than five percent. For these reasons, all of the operation and maintenance and replacement costs incurred for this process should be attributed to the BOD,constituent. The allocation would be the same for the scenario that weights costs more to BOD and TSS. 6. Secondary Sedimentation Tanks The purpose of the secondary sedimentation tank process Is to settle the sludge generated by the biological treatment system and return it to the activated sludge tanks. Removal of excess sludge from the system is also done at this stage. Principal components of this process include: the sedimentation tanks;sludge collection mechanisms installed inside of the tanks;and the return and waste sludge pumps, valves and piping. Capital Cost Allocation secondary sedimentation tank sizing criteria are generally concerned with the flow and the amount of sludge that they must handle. The amount of sludge is a direct function of the organic load to the activated sludge tanks as expressed by the BOD,constituent and the overall plant flowrate. Equipment costs are also a function of the flow and organic load to the system. For this reason, capital cost allocations for this process should be divided between flow and BOD,and no allocation should be made to TSS. The controlling criteria for the size of the tankage and associated channels and hydraulic control systems for this process was flow. Therefore,the structural costs would be allocated entirely to the flow component. Equipment costs result from both the amount of flow that must be handled and the amount of solids cabled in the process. The solids in the process are directly related to the amount of BOD,applied to the secondary treatment system. The equipment costs have been allocated to equal parts for flow and BOD,. The mechanisms in the clarifiers are sized based upon the tankage(flow controlled) and the amount of sludge that they must handle(BOD, controlled). Return sludge pumping system sizing is a function of the total flow to the process and the amount of sludge maintained in the process so the costs for this portion should be allocated to both. Waste sludge pumping system sizing,on the other hand, is a function of the amount of sludge that must be removed from the system which is directly attributable to the swaoeaomneaomsva�ava.vmo B-9 DRAFT- February 17, 1998 L. BOD,load to the secondary treatment system. The net capital cost allocation for the secondary, clarifiers is then estimated to be about 80 percent for flow and 20 percent for BOO,for the scenario that weights costs more to flow. For the scenario that weights costs more to SOD and TSS the allocation would be 70 percent to BOD and 30 percent to TSS. This allocation is based on several other agencies'allocations. Their philosophy is based on the premise that the main function of the secondary clarifier is to remove the BOD created in the activated sludge process and that this BOD includes TSS. Operation and Maintenance Cost Allocation -- Operation and maintenance costs for secondary sedimentation tanks are primarily attributable to BOD. The costs consist of operations labor,maintenance labor,electricity and supplies. Operations labor costs are attributed to monitoring and control of the return and waste sludge pumping systems. The majority of this should be related to BOD,. Maintenance labor, similarly, should be related to BOD,. Power costs are attributable entirely to BOD since sludge pumping represents the vast majority of the power demand for this process. Finally supply costs are also allocated, mostly to BOD. The O&M allocation should be 100 percent to BOD,and is the same for either scenario. 7. Sludge Thickening The Districts' sludge thickening unit process consists of dissolved air flotation thickeners used to thicken the sludges removed from the secondary treatment system prior to their introduction into anaerobic digesters. Principal components include:the thickener tankage and sludge removal equipment, air dissolution system,thickened sludge pumping and metering systems and the chemical feed control system. The purpose of the thickening step is to concentrate the sludge flow stream to the digesters and thereby reduce the amount of digesters that are required. These allocations for both capital and operation and maintenance would be the same under either allocation scenario. Capital Cost Allocation Capital costs for this unit process are assigned 100 percent to BOD,. The sizing of all structural and mechanical components of this system are based upon the amount of sludge the thickeners receive from the secondary treatment system which is directly attributable to the amount of solids produced from the removal of the BOD,in the activated sludge process. Operation and Maintenance Cost Allocation Operation and maintenance costs for this facility are also directly proportional to the amount of sludge that is processed which is, in turn, attributable the amount of BOD,load to the activated sludge tanks. Like the secondary sedimentation process,these costs should be allocated 100 percent to BOD,. sM300 EPORTSW TEAPaWPD B-10 DRAFT- February 17, 1998 8. Sludge Digestion Sludges removed from the flowstream by the primary sedimentation tanks and the secondary treatment system via the sludge thickeners are then sent to the plant's anaerobic sludge digestion system. The sludge digestion process both reduces the quantity of sludges that must ultimately be disposed and significantly stabilizes the material which makes it easier to dispose and much less objectionable. These allocations for both capital and operation and maintenance would be the same under either allocation scenario. Capital Cost Allocation Digestion processes can be sized based either on hydraulic detention time or an organic loading rate expressed in terms of pounds of solids per unit volume per day. Since the CSDOC hydraulic design criteria is a minimum of 25 days, h is the controlling factor in digester design. For this reason, capital costs will be directly proportional to the hydraulic quantities of sludge received from the primary and secondary treatment systems. Primary sludge quantifies, as discussed previously, are directly related to the influent TSS of the wastewater received at the plant and the secondary sludges are related to the residual TSS and the influent BOD,. Therefore, capital cost allocations for this process are based upon the TSS and BOD5 constituents in proportion to the relative amount of sludge received from each of the unit processes. Currently,the proportion is approximately 25 percent secondary and 75 percent primary sludge, so an allocation of 25 percent to BOD5 and 75 percent to TSS has been made. Operation and Maintenance Cost Allocation Operation and maintenance costs allocations are also recommended to be based upon the relative quantities of sludge generated by BOD,and TSS because they are a function of either the size of the facilities or the amount of sludge that Is processed. The allocation of costs to these constituents has been set at 25 percent for BOD,and 75 percent for TSS. 9. Solids Handling and Disposal Digested sludges are sent to belt presses for dewatering and then stored in a hopper before they are transported off she. Off she disposal is done by third party contractors and consists of land application for crops, compost addition and landfill application. These allocations for both capital and operation and maintenance would be the same under either allocation scenario. Capital Cost Allocation Sizing of sludge dewatering and storage facilities are based on organic and total solids loading criteria. Therefore, capital cost allocations for these processes are based on the relative amounts of sludge generated from TSS and BOD5 and the percentage of these two sludges that will remain after passing through the digestion process. Currently,the figures for CSDOC are 20 percent from secondary and 80 percent from primary, so allocations will be 20 percent to SA x B EPORTs Tsua.wrD B-11 DRAFT- February 17, 1998 BOD,and 80 percent to TSS. Capital allocations for solids disposal will be assumed to be the same as for the non-assignable costs because disposal is by a third parry. Operation and Maintenance Cost Allocation Operation and maintenance costs for sludge storage and dewatering are based on the relative amounts of sludge generated from BOD,and TSS. These cost allocations will be the same as the capital cost allocations:20 percent to BOD,and 80 percent to TSS. Operation and maintenance costs for solids disposal are also based on the relative amounts of sludge generated after dewatering from BOD,and TSS. Currently these figures are 45 percent from - secondary and 55 percent from primary, so the allocations have been set at 45 percent to BOD, - and 55 percent to TSS. 10. Trickling Filters The Districts use trickling filters for a portion of the secondary treatment at Plant 1. The master plan calls for these to be removed to conserve space for more space-efficient forms of secondary treatment. For this reason, no trickling fitter capital projects are planned and no allocation percentages for capital will be recommended. However, an allocation of 62 percent to flow, 26 percent to BOD,and 12 percent to TSS will be recommended for the trickling filter removal projects. This is the same allocation that is used for non-assignable costs and is for the scenario that weights costs toward flow. For the scenario that weights costs toward BOD and TSS, the allocation is flow 44 percent, BOD 32 percent, and TSS 24 percent. The latter is the allocation that was used to develop the rate structure. Operation and Maintenance Cost Allocation Operation and maintenance costs associated with trickling fitters result from labor and power to run the system. Typically, maintenance to the fitters consists of flooding to keep filter flies under control and maintaining the recirculation pumps. Operational costs are derived from energy costs for the recirculation pumps. Generally these costs are proportional to the amount of flow necessary to keep the filter media wet,which is a direct result of the amount of media present in the fitters. The amount of media is a function of the media surface area and the oxygen demand per unit of media surface area. For these reasons, all of the operation and maintenance costs incurred for the trickling should be allocated to SOD,and is the same for either scenario. 11. Non-assignable Costs Non-assignable (or indirect) costs are those costs that cannot be readily assigned to any of the process categories that have been identified. Non-assignable cal costs would include the costs of: land occupied by the treatment plant site;administration, laboratory and staff support facilities; maintenance shops; and odor control equipment. Undesignated operation and maintenance costs would include:administration, salary overhead, expenses allocated to the treatment plant, and general plant operation and maintenance. - s:uaoeeomso�oarsvun=avawao B-12 DRAFT- February 17, 1998 Because both capital and operation and maintenance indirect costs are to be allocated based upon the net allocation percentages of the directly accumulated costs, no fixed allocation percentages will be derived. Instead, each time a revenue analysis is made, the percentages are assumed to be equal to the net percentage allocations of the costs used for the direct cost allocations. Capital Cost Allocation Allocation of the undesignated capital costs to the billable constituents is based upon the total net allocation of the assignable costs to the billable constituents. The net allocations for the directly allocable plant components came to 62 percent for flow, 26 percent for BOO„ and 12 percent for TSS. These percentages were then used to allocate the cost of the remaining facilities to the billable constituents for the scenario that weights costs toward flow. For the scenario that weights costs toward BOO and TSS, the allocation is flow 44 percent, BOD 32 percent, and TSS 24 percent. The latter is the allocation that was used to develop the rate structure. Operation and Maintenance Cost Allocation Allocation of the undesignated operation and maintenance costs is done in a similar manner as for the undesignated capital costs. The net allocation of the assignable costs for operation and maintenance costs came to 18 percent for flow, 37 percent for BOD„and 45 percent for TSS for the scenario that weights costs more to flow. For the scenario that weights costs more to BOO and TSS,the allocation is 13 percent for flow, 40 percent for SODS, and 47 percent for TSS. Screening Clear Screen Velocity Average Annual Flow One standby unit plus 1.7 fps wide open bypass channel for each headworks. Influent Pumps Pumping Capacity Two Timss Average One standby pump for Flow every four running (Standby pump equal to largest pump). Minimum of one standby pump per station (it less than four pumps). Grit Chambers 35,000 gpdtsf Average Annual Flow No standby grit chamber. One standby grit washer for every two running. s:woaaoowaaarrs�e.wvo B-13 DRAFT- February 17, 1998 - Primary 780 gpd/sf for tanks In Average Annual Flow Plant 1: One circular Sedimentation service bum standby(12 mgd) 1 Basins ( rectangular basin (PI-33) standby(6 mgd) Plant 2: One standby- A side (6 mgd), 1 standby ! -B side (12 mgd), 1 standby- C side(12 mgd). Primary Effluent Pumping Capacity Two Times Average One standby pump for Pumps Flow I every four running j (Standby pump equal to largest pump). Minimum of one standby pump per station(if less than four pumps). i Rock Trickling 40 Ib/1,000 cu ft/d Average Annual Floe No standby fitter. Fitters 2:1 recirculation, Limited by odors. Fitter 2:1 Recirculation Average Annual Flow One standby pump for Recirculation every four running Pumps ! (Standby pump equal to largest pump). Minimum of one standby pump(s less than four pumps). Aeration Tanks 30 mg/L SS Maximum Month I One standby aeration 30 mgrL BOD Loading basin. Blowers Oxygen Demand Maximum Month Two standby blowers. Loading Pure Oxygen 30 mg/L SS Maximum Month One standby basin Activated Sludge 30 mg/L BOD Loading Oxygen Required Oxygen Demand Maximum Month One standby cryogenic (Cryogenic Plant) Loading plant including a compressor, plus one additional standby compressor. Liquid Oxygen 6 days storage Average Annual Flow, Assumes five days/year Storage 2 tanks minimum routine maintenance and six days/year unscheduled downtime. WAS Pumps MCRT/RAS Maximum Month I One standby pump per Concentration Sludge Production pump station. sM30SUMEPORMFIMTEy WPO B-14 DRAFT- February 17, 1998 'KAIA RAS Pumps 1006/6 of Influent Flow Average Annual Flow One standby pump for every four pumps in service. Minimum one standby per pump station. Secondary 600 gpd/sf Average Annual Flow One standby clarifier for Clarifiers every ten In operation. Equal number of standby clarifiers for each half of the plant. Outfall Booster Pumping capacity at Two Times Average One standby pump for Pumps high tide Flow every tour running n-0.015 in outfall (Standby pump equal to largest pump). Minimum of one standby pump(f less than four pumps). DAF Thickener 18 lh`sf1d Maximum Month One standby thickener for 1.6 gipmisf Solids Production every two in operation. Digesters 0.11 lb VSS/cu ft/d Primary Sludge(PS) Digester cleaned every only five years. Loading 0.10 lb VSStcu tt/d PS&WAS criteria for digesters In 0.08 lb VSS/cu tt/d WAS only service,full digester 25 day minimum Maximum Month volume. Criteria includes detention time Solids Production allowance for grit factor of (1.16). Beft Presses (two 100gpnVpmss Primary Sludge plus One standby belt press tar meter) WAS, Maximum every five (based on Month Solids 24 hour operation). Production Minimum one standby per station. Sludge Storage Five days Maximum Month No standby. Hoppers Solids Production Plant Water/City As Required Peak Demand One standby pump for Water Pumps every four Pumps in service. B-15 DRAFT- February 17, 1998 Table9$ . b:s ..re;: w,;,.._ a>' Yte. ' Bk- 'oY r a- Reclamation Plant No.1 Headworks Emergency Sewer Bypass System 90% 1OY D% $1,792,800 $199200 $0 Headworks No. 1 Rebuild 75% 5% 20% $11,212,500 $747.500 $2,990,000 Headworks No.21ncr Capacity 75% 5% 20% $1,950,000 $130,000 $520,000 Primary Trseenom 72 mgd Expansion,P737 D% 30% 70% $0 $11,40D,000 $26,600,000 Primary Clarifier Rehab, P1-41 01Y. 30% 709/6 $0 $412.500 $962,500 72 mgd Primary Treatment 0% 30% 70% $0 $9,750.000 $22,750,OOO Secondary Treatment Eectrification at Pumps,P136-1 44% 329% 24% $4,400 $3.200 $2,41D0 Sec Tan Exp to SD mild,P136-2 0% 100% 0% $0 S32,DOO,000 $0 40 mgd OAS 8 DAFs 0% 100% 0% $0 $95,463,000 $D 40 mgd OAS 8 DAFs 0% 10D% 09% $0 $34,DD0,000 $0 Solids Proceesing Belt Presses;(4 un8s) 20% 80% $0 $2,860,0DO $11,440,0DD Solids Storage is units) 20% BD% $0 $2,028,0DO $8,112.000 Digesters:2 @ 11 O'dia 25% 75% $0 $2275,0g0 56,825,000 Remowi Trickling Fitters 183 44% 32% 24% $572.000 $416,000 $312,ODO Remove Tncking Fitters 284 44% 32% 24% $572,0DO $416,000 $312,0D0 110 tl Digesters(2) 0% 25% 75% $0 $4,550,000 $13,650,000 4 Ben Presses 2D% 8OY $0 $2,184,000 $8,736,000 Electrical Power Systems Trickling Fiker 8 Safety Impr.,P1-40.1 44% 329E 24% $2,722.720 $1,980,160 $1,485,120 12 kV Dist Sys for Supp Fac P1-47 44% 32% 24% $2,030,600 $1,476,800 $1,107,SW 12 kV Electrical Power Dist 44% 32% 249/6 $1,078,000 $784,ODO $588,000 12 kV Power Distribution 44% 32% 24% $483,560 $351.680 $263.780 Standby Power Generation 441% 32% 24% $2,162,160 $1,572,490 $1.179.360 Safety Improvemems Fire Prof,Signs 8 Water Sys Mad PI-W5 44% 32% 241Y. $946,000 $688,000 $516,0D0 Seismic Retrofit,Non-Struct P1-43 44% 32% 24% $517,000 $376,ODD S282AD0 Seismic Retrofit,Struct Ptd4-1,3 44% 329E 24% $330,000 $240,000 $180,0D0 Mlacellan seas Projects Security 8 Landscaping P138-1 44% 32% 24% $4.4D0 5320D $2.40D Misc Mods Priomy Elem P1-38-2 44% 32% 24% $4,400 $3200 $2,400 Misc Impr to Plant 1 P1-38-4 44% 32% 24% $4,400 53200 $2,400 Fax Mad 8 Safety Upgr PI 40-2 44% 32% 24% $585200 $425,600 $319,00 Fac 8 Process Mad P7-403 44% 32% 24% 5849200 $617,600 5463.200 SU308e0�APawao B-16 DRAFT- February 17, 1998 Chemical BWastohauler Fac,Mod 44% 32% 24% $1.100,000 $BW,000 $600,000 P1d6-2,3 Allowance for Planned Smell Pmj 44% 32% 24% $1,320,000 $960.000 $720.000 Allowance for Enter Repair/Impr 44% 329/6 24% $1,760,000 $1,2W,000 $960,000 Treatment Plant No.2 Neadworkv Plan12 Influent Diversion 90% 10% $2,160.000 $240,000 $0 Primary Treatment 24 mgd Expansion P2-41 0% 30% 7O% $0 $4.290.000 $10,010,OW Primary Clarifier Rehab 0% 30% 70% $0 $1,SW,000 $3,500,000 Replace Prim A,B,C 0% 30% 70% $0 $3.510.000 $8.190,9W Secondary Troatrtl9nt Sec Trim Exp P2-42-2 0% 100% 0% $0 $10,000 $0 Solids Proeeasing Rehab 7 Digesters P2-39 25% 75% $0 $2,312,500 $6,937,5W Solids Storage:2 Bins 45% 55% $0 $7340,000 $2,860,OW Additional 105 a Digester 25% 75% $0 $1,275.000 $3,825,OW Rehab Solids Storage FAuipmem 45% 55% $0 $225,000 $275,9W Electrical Power Systems _ Elec Fac Mod 8 Safety P2-47-1 44% 32% 24% $1,199,OW $872,000 $654,W0 Fac 8 Pruc Mod P2-473 44% 32% 24% $1,0252W $745,600 $559,200 Sell Improvements Fac Mod 8 Safety Upgr P2.47-2 44% 32% 24% $716,320 $520,960 $390,720 Seismic Retrofit,NonStruct P2-50 44% 32% 24% $528,000 $.384,000 $288,001) Seismic Retrofia,Strut P2-53 44% 32% 24% $297,000 $216,000 $162,OW Chem 8 Plant Water Mod P2-55 44% 32% 24% $1,540,OW $1,120,OW $840,0W Reclaimed Water Sys, Plant 2 44% 32% 24% $1,460,800 $1,062,400 $791 - Fire Prot P246 44% 32% 24% $1,562,000 $1,136,OW $1152,000 Miscellaneous Projects Priority Misc Mod P2-43-1 44% 32% 24% $4,400 $3,2W $2,4W Mac Modifications P2.433 44% 32% 24% $4.400 $3200 $2,400 Allavrance for Emer Repair/Impr 44% 32% 24% $1,760.000 $1,2e9,o99 $960,9W Allowance for Planned Small Proj 44% 32% 24% $1,320,000 $960,000 $720,W0 Support Faclimes and She Improvements Operations Building P2-23-5-1 44% 32% 24% $6,600 $4,8W $3,600 Warehouse Upgrades P2-2362R 44% 32% 24% $198,000 $144,000 $108,000 Maintenance Bldg P2S53 44% 32% 24% $2,420,000 $1,760,000 $1,320,0D0 Phase II She 8 Security P235.5 44% 32% 24% $880.000 $640,9W $480.000 Coret Mgmt Office P2-35-4 44% 32% 24% $8,360 $6,080 $4.560 a:MaaeBWAEPOHTS1eATEAPe.WPD B-17 DRAFT- February 17, 1998 � � . . m I M . 1, �i afl9a °th($Hr;C, , Interplant and Joint Facilities Support Facilities a Site Impr Rehab of Old Lab to OKwe J-1/-1A,2 449/6 32% 24% $145,200 $105,600 $79,200 Demo/Reuse of Old Control Center 44% 32% 24% $88,000 $64,OOD $48,000 Demo of Supp Bldg @ P2 J-27 44% 32% 24% $44,000 $32,000 $24,0OD CNG Refueling Staten 449/6 32% 249/6 $347,600 $252,800 $189.600 New Trallers for IT P1 48-1 44% 3214. 249/6 $11000 $80,000 $60,000 Open Bay Enclosures at PI Warehouse 44% 32% 24% $26,400 $19,200 $114,400 Outfall and Booster Pump Stations Surge Tower Replacement J34-1 I DD9/6 $5,750,000 $0 $0 Outlet Rol 6 Pump Annex DOSS•C• 100% $31,085,000 $0 $0 Ext 8 Rep!78'Deep Water w//20' 100% $111,000,000 $0 $0 Informatlon Management Systems Comp Fac Records 6 Dwg Sys J-25-1 44% 329% 24% $1,542,200 $1,121,60D $841.200 Financial Information Systems(m 44% 32% 24% $748,000 $544.000 $408,000 Network Sys Integration(rr) 449% 32% 24% $141,680 $103,040 $77,280 CD-Optical Data ArchMng(IT) 44% 32% 249% $33.000 $24,000 $18,000 Into Cabling Addition(m 44% 32% 24% $44,000 $32,000 $24,000 Upgrade Phone Sys(r1) 449/6 32% 249/6 $11d,400 $83,200 $62,400 - Network Hardware Upgrade(IT) 44% 32% 24% $237.600 $172,800 $129,600 Rep Security Acwss Sys(m 44% 32% 24% $79.200 $57,600 $43,2DO Misc PLC Hit Stdby Upgr(m 44% 32% 24% $70,400 $51.200 $38.400 Plants l A2 Monhor/Control System J-31 44% 32% 24% $220,000 $160,000 $120,000 I Optic Inter J31-1 44% 32946 24% $13i2,()W $96,000 $72.000 GOBS Control System J31-2 100% 0% 0% $400,000 $0 $0 Plant 1 Headworks Sys J313 90% 10% 0% $766,000 $85,000 $0 Secondary Expansion,P2 J31-4 0% 70% 3D% I $0 $350.000 $150,000 SCADA/Automatlon Master Plan 8 Upgr 44% 32% 24% $264,ODO $192,000 $144,000 Bee Power Sys Rehab Studies J-25-2 44% 32% 24% $498.400 $355,20D $266.400 Standby Power&Reliability Mod J33-1 44% 32% 24% $6,094,000 $4,432,000 $3,324,000 MSP No.3 at Headworks 2 J33-2 44% 32% 2494. $440.000 $32D,000 $240,000 Elec Power Dist 12 kV 44% 32% 24% $1,191,080 $866,240 $649,680 Impr to Central Generation 441Y. 32% 2494. $1 $217,60D $163,200 Cable Troy Impr 449/6 32% 24% $121I,000 $880,DOD $660,000 Bushard Interplant Trunk Reel 90% 10% $23,491D.000 $2,610,000 $0 Miscellaneous Projects In Plant Sampling Sys Mod 44% 31 24% $22,000 $16,ODO $12,000 Allowance for smell Planner!Pro ocls 44% 32% 24% $1,300,000 $960,000 $720,000 S.U30e1100,aEPOmS)RAM AMMD B-18. (DRAFT- February 17, 1998 4ZY?' n s� Allowance for Emer RepaMOmpr 44% 32% 24% $1.1 D0,0DO $800,000 $600,000 Blosolids Disposal Projects Compost Demo Plant 0% 45% 65% $0 $4,050,000 $4,960,000 Land Acquisition M. 45% 55% $0 $9,900,000 $12,f00,ODO Landfill Development Phase I 0% 45% 55% SO $12,870,000 $15,730,00D Compost Facility 091. 45% 65% $0 $22,500.ODO $27,500,000 Biosolicis Disp Landfill Phase II 2011 0'/ 45% 55% $0 $7,020,000 $8,680,000 Bicsolids Disp Equip Phase 1811 2001 M. 45% 55% $0 S5,197,500 $6,352,500 Water Reclamation Water Reclamation 44% 32% 24% $33,763,400 $24,555,200 $18,416,400 Collection System Santa Ana Trunk MH Rehab 90% 10% $5,850,000 $650,000 $0 Miscellaneous Pmjecs Dist 1 90% 1D% $1.125.000 $125.000 $0 Sunflower MH Rehab DD% 10% $126,000 $14,000 $0 Dyer Road MH Rehab 90% 10% $405,000 $45,000 $0 Main-Dyer MH Rehab 90% 10% $180,000 $20,000 SD Greenville-Sullivan MH Rehab 9D% 10% $180,000 $20,000 $0 Raiff St.Manhole Rehab 90% 10% $207,OOD $23,000 $0 .. Rep! Euclid Relief Trunk Sewer 90% 10% $5,850,D00 $650,000 $0 Repl Newhope Plao Tnmk 23R 9D% 10% $5,625,DDO $625,000 $0 Repl Cypress Ave Subtrunk 2-4R 90% 10% $4,725.000 $525,DDO $0 Abandon Yorba LhWs Pump Station 9D% 1D% $90,000 $10,OW $0 Taft Interceptor Sewer 2-6-3 90% 1D% $1,620,000 $180,000 s0 91 Freeway Widen Proj 2-7A 90% 10% $61,0DO $9,000 SD Boise Sewer Relief 9D% 10% $414.0DO $46,OOD $0 Batavia-L'mcoln Trunk Relief 9D% 10% $292,500 S32,5O0 $0 Santa Ana River In r MH 2-14-5R2 9D% 10% $3,600.000 $40D,000 SO Santa Ana River Intr(SARI)Relief 2-31 90% 10% $12,150,000 $1,350,WO $0 1-5 Freeway Widen Pmj 2-35 90% 10% $90,000 $10,000 $0 Pump Station Rehab 237 9D% 10% $360,DDO $40,000 $0 S Santa Ana River Trunk Easement 239 90Y 10% $63,000 $7,ODD SO Miscellaneous Projects Dist 2 90% 10% S3,060,0DO S34O,ODD $0 Euclid Trunk MH Rehab 234R 90% 10% $810,000 S90,D00 $0 Artesia Branch Subtrunk Relief 90% 10% MOOD S40,000 $0 Slater Avenue FM/Gmvhy Sewer 11-17-1 9D% 1D% $9.000 $1,D00 $0 Slater Ave P.S.Repl 11-17-1 W% 10% $85,500 $9,500 $0 Westside Relief Intr Parallel 90% 10% $5,130,000 $570,000 $O Sh130He0P,REnOmSYiA A%WM B-19 DRAFT- February 17, 1998 Westside Relief Trunk 9D% 10% $63Q000 $70,ODD $0 Orange-Western Subtrunk Relief Sower 90% 1D% $1,035,000 $115,000 $0 3-25 Knorr INT Relief,Orengethorpo to Artesia 90% 10% $2,97Q000 $330,000 $0 Hoover-Western Subtrunk Relief on Trask 9D% 1091. $945,SW $105,0DO $0 Miller-Holder,Artesia to Hillsborough 338-1 909(. 101Y. $4,770,000 $530,000 $0 Miller-Holder Impr,Imperial Hwy S383 W% 101146 $2,6J0,000 $290,000 $0 Los Alamos Subtrunk Relief 90% 1D% $4,410,000 $490,000 $0 Magnolia Relief Sewer,Westminster-Trask 90% 10% $111M.000 $1551000 $0 335R TechOe Pipe Claim 336 90% 10% $W,ODO $60,0DO $0 Westminster Ave.Force Main Rep!336R 90% 10% $270,000 $30,ODO $0 1-5 Freeway Widen 337 90% 1 D% $31,5D0 $3,500 $0 Share of Nichols Bowl Trunk Purch Rehab 9D% 10% $450,OOD $50,0DO $0 Miscellaneous Projects Dist 3 90% 10% $3,060,000 $340.000 $0 Magnolia Trunk Sewer Rehab 335R 9D% 10% $2,790,OW $310,000 $0 Seal Beach Blvd.Rehab 3-11 R 9D% 10% $54.000 $6,ODO $D Pump Station Reliability Proj 9D% 10% $450,000 $50,000 $0 W.Coast Hwy Gravity Trunk Rehab 5373 90% 10% $45.000 $5,000 $0 Big Canyon Trunk Rehab 9091. 10% $1,800,000 $200,00D $0 Balboa Peninsula Rehab 90% 10% $460,000 $50,ODO $0 Miscellaneous Projects Dist 5 90% 10% $1,147,500 $127,6W $0 Watson Ave/Califomla Street Sewer 6-13 90% 1D% $2,880,000 $320,000 $0 Fairview Relief,Baker St.to Wilson SL 6-12 90% 10% $2.745.000 $305,000 $0 District 6 Trunk Parallel 90% 109(. $1,440,000 $160,000 $0 Dover Drive Trunk Parallel 90% 1D% $1,350,OOD $150,DDO $0 College Ave PS Rehab&FM Repl 7-23.1 90% 10% $64,800 $7,200 $0 Miscellareous Projects Dist 6 90% 101% $765,000 $85,000 $0 Pump Station Abandonment 7-143 90% 10% $135,000 $15,000 $0 Orange Park Acres Trunk Reps 7.17 90% 1D% $706,5W $78,5W $0 Tustin Air Base Facilities 90% 10% $36.000 $4,000 $0 North Trunk Rapt 9D% 10% $2,385,000 $265,0DO $0 Relocate Gisler-Red Hill Siphon 7-1-2 90% 10% $95,0w $5,000 $0 Gisler-Red Hill Interceptor 90% 10% $4,77f1,000 $530.000 $0 Red Hill Interceptor Parallel 90% 10% $1,260,ODO $140,000 $0 Lemon Heights Sewer Rapt 7-22-12 9D% 10% $3,1D5,000 $355,000 $0 Impr to Main Streel PS 7-7-1 90% 10% $882,000 $98,000 $0 Browning Trunk Report 90% 101Y. $765,DDO $85,000 $0 SM300sMEPORTsMTEAMwPD B-20 DRAFT- February 17, 1998 Miscellaneous Projects Dist 7 90% 10% $1,530,000 $170,000 $D Huntington Beach Purchase Abandon 90% 10% $225,000 $25,000 fill Slater Ave. Relief 90% 10% $2.520,000 $280,000 $0 Goldenwast Street Sewer Repl 11-17-2 90% 10% $2,385,0DO $265,000 $0 Hell interceptor 90% toy. $2,71D0,000 $3D0,000 $0 Slater/Springdale Repl 90% 10% $72D.0DD $BO,DDO $0 Warner Ave.Sewer Relief 1 10% $630,000 $70,000 $0 PS Replacement& Maintenance 90% 10% $450,000 $50,000 $0 Miscellaneous Projects Dist 11 90% 10% $1,147,500 $127,500 $0 Miscellaneous Projects Dist 14 90% 10% $765,00D $85,DDD $0 District 13-Cap"Purehaae tom 287 Santa Ana River Interceptor 100% 091. 09/6 $5,9612&5 $0 $0 S.Santa Ana River Interceptor 1D0% 0% 0% $956,197 $0 $0 Richfield Subtrunk 100% 0% 0% $37.968 $o $0 Kellogg Subtrunk 100% 0% W. $24,552 $0 $0 East Richfield Interceptor 100% W. 01Y $46.347 $0 $0 Taft Interceptor 100% D% 0% $303,996 $0 $0 Carbon Canyon Interceptor 100% 0% 0% $6,053,308 $0 $0 Euclid Interceptor 100% D% 0% $2,760,6DO $D $0 Sunflower&Other District 7 Sewers 10D% 01Y. M $4,362,424 $0 fill Misr Pump Station Rehab,237 9D% 10% $3,600,00D $400,000 $0 W.Coast Gravity Trunk Rehab 90% 10% $180,000 $20,000 $0 College Ave PS Parallel Force Mam 90% 10% $1,237,500 $137,600 $0 Sunflower Manhole Rehab 90% 10% $292,5DD $32,500 $D Slater Ave FM/Gravity Sewer 90% 10% $225,000 $25,OD0 $0 Slater Ave PS Replacement 90% 10% $585,OD0 $65.000 $0 Nichols St Trunk 9D% 10% $337,500 $37,500 $0 Main Street PS 90% 10% $1,912,500 $212,500 $0 Master Planning Admin Supp Fac @ P1 J-38 44% 32% 24% $1,012,000 $736,0D0 $552,D00 Ocean Outfall Rehab J-39 100% $1200,000 $0 $0 Peak Hydraulic DisGJOulfall Stud J40-1 10D% $1,425,000 $0 $0 Financial Planning J-413-2 44% 32% 24% $184,800 $134,400 $1DO,800 Trmt&Disp Strmeg'.c Studies J40-3 44% 32% 24% $330,000 $240,D00 $180,000 CEOA Public Participation J-40.4 44% 32% 24% $68200 $49,600 $37,200 Technical Service Projenm Central Lab Mod 44% 32% 24% $277200 $201,600 $151200 sysoseooweroalswnleave.wvo 8-21 DRAFT- February 17, 1998 ttac tW „ ..za.. r^aa; LIMS Implementation 44% 32% 24% $1 ,200 $89.800 $67,200 Misc Lab Impr 44% 32% 24% $55,D00 $40,030 $30,0D0 NPDES Permit Support 44% 32% 24% $110,000 $80,000 $60,00D Emission Model Testing 44% 32% 24% $17,600 $12,800 $9,600 Air Cual Database Dev 44% 32% 24% $26,400 $19200 $14,400 Sulfur Monitoring 44% 32% 24% $98,120 $71,380 $53,520 Central Gen Parametric Monitor Sys 44% 32% 24% $214280 $155,840 $116,880 Retrofit of Chem Scrubbers 44% 32% 24% $22,DDD $16,0D0 $12,000 Operetiona Department Projects COBS Confined Space Study 6 Mod 1D0% 0% M. $50,000 $0 $0 Energy Studies ENVEST 44% 32% 24% $726,000 $528,000 $396,000 Turb Monitor 6 Regulatory Equip 44% 32% 241Y. $37,400 $272W $20,400 _ Full-Scale Biosolids Reduction 0% 20% 80% $0 $300.000 $1=.DD0 Misc Optimization Studies 6 Impr 44% 32% 24% $189200 $137,600 $103,200 Scrubber Chem Feed Sys Mod 44% 32% 24% $264,000 $192,D00 $144,000 Puke Power Microbe Destruction Pmj 0% 25% 75% $0 $413,750 $1,241250 Headworks Screening Mat Dewater Dev 75% 5% 20% $307,500 $20,500 $82,000 Misc Reliability 6 Redund Proj 44% 32% 24% $66,000 $48,000 $36,000 Plant Water Filtration System 44% 32% 24% $52,800 $38,400 $28,800 Equipment Costs 44% 32% 24% $10,703,000 $7,784,DD0 $5,838,000 awamemweroarsw4rawl+o B-22 DRAFT- February 17, 1998 FAA x:� MP, Coll.a Diversion $127,490 9D% 5% 5% $114.741 K375 $6,37 Interplant $8,363 90% 5% 5% $7,518 $418 $418 Headworks $1,446.087 75% 5% 20% $1,083,815 $72254 $289,01 Prim Sod Eq&Oper $2.017,492 15% 25% 60% $302,624 $504,373 $1210.495 Primary Sod Structure $319,040 15% 20% 6041. $47,856 $63,808 $191,42 Act Solids Eq&Oper $1,352,884 100% 0% $0 $1,352,884 $0 Act Solids Structure $85.544 1DD% 091. $0 $85,644 a Solids Thickening Eq $121,374 100% 01Y. $0 $121,374 Solids Thickening Struct $1,718 1D0% 0% $0 $1,718 $0 Trickling Filter Eq $67,408 100% 0% $0 $67.408 Trickling Filter Struct $2,693 10091. 0% $0 $2,693 § Secondary Sod Eq $127,360 0% 10D% 00% $0 $127,360 $0 Secondary Sod Struct $12,482 0% 10D% 0% $0 $12,482 $0 Digestion Eq&Oper $2,108,069 25% 751/6 $0 $627.017 $1,581,05 Digestion Struct $110,785 25% 75% $0 $27,695 $83,088 Blower Equip $37,566 1000% $0 $37,566 $0 Blower Structures $79 100% $0 $79 $0 Aeration Eq&Oper $400.941 100% $0 $400,941 $0 Aeration Structures $6.529 100% $0 $6,529 $0 Oxygen Plant Structures $520,917 100% $0 $520,917 $0 Oxygen Plant Eq&Oper $15202 100% $0 $15202 $0 General Trantmem Oper $6.948 13% 40% 47% $903 $2.779 $3.265 Solids Handling-Trmt $2,165,948 20% 80% $0 $431,190 $1,724.758 Solids Handling-Disp $6,011.625 45% 55% $0 $2,705.231 $3.306,394 Effluent Disinfection $149,988 13% 4095 47% $19,498 $59,995 $70,494 Effluent Disposal $741,947 100% $741,947 $0 § Supervisory Control $7,147,977 13% 40% 47% $929237 $2,859,191 $3,359,649 Witty Systems $4,889,746 13% 40% 47% $635,697 $1,955,898 $22M.180 General Plant Complex $12.099270 13% 409/6 4791. $1,572,905 $4,839,708 $5,686,65 SU308B001AEP0m3MnATEAPB.WPa B-23 DRAFT-February 17, 1998 Table 8,6 O&M Cost Allocations for Fiscal Year 1995.46 County Sanitation Districts of Orange County Flow BOD TSS Allocation Allocation Allocation category Cost %Row %BOD %TSS ($) ($) ($) Odor Control&Studias $261 13% 409/6 47% $34 $104 $123 General Engineenng $534,998 13% 40% 47% $69,550 $213,999 $251,449 Industnal Waste $2,164,016 13% 409/ 47°0 $281,322 $865,607 $1,017,088 Labs& Research $7,186,468 13% 409/6 479% $934,241 $2.874,587 $3,377,640 Motor Pool $324,109 13% 409/6 47% $42,134 $129,644 $152,331 Electric Cans $133.933 13% 409/6 47% $17,411 $53.573 $62,948 Portable Equipment $269,194 13% 409/6 47% $34.995 $107,678 $126,521 S,C BOoAEPOHi3NA APB D B-24 DRAFT - February 17, 1998 Appendix C 1.1 6i a Bel 1. Executive Summary Introduction The purpose of this document is to summarize the views and recommendations of the Rate Advisory Committee (RAC) following their year-long review of the overall rate structure of the County Sanitation Districts of Orange County (CSDOC). Background CSDOC raises funds for operating, maintaining, replacing/improving and expanding wastewater treatment and major conveyance facilities primarily through three funding sources: 1. A share of the 1%Ad Valorem taxes; 2. User Charges; and, 3. Connection Fees. Operation, maintenance and replacementrimprovement costs are primarily funded through ad valorem tax allocations and user charges. Connection fees are intended to pay for expansion of facilities needed to accommodate growth. The methodology for determining how costs are allocated to residential, commercial and industrial users is termed the 'rate structure.'There are a number of assumptions and considerations involved in developing the methodology for tracking costs back to the residential, commercial and industrial users. This study consisted of a review of the existing rate structure, and an evaluation of these assumptions and considerations. Rate Advisory Committee Process As part of the CSDOC Strategic Plan process, a Rate Advisory Committee (RAC) was formed to obtain input from each of the major user categories (residential, commercial and industrial). The RAC was designed to be a collaborative process involving all the major stakeholders potentially impacted by a new rate structure. The opportunity was offered at each of the workshops to allow for feedback, as well as dialogue among the RAC members so resolution could be reached on S%Q0830VaEPORTSMTEAPC.WPO C-1 DRAFT - February 17, 1998 key rate structure issues. The RAC process involved 9 workshops which were held over a period of 13 months. While the RAC reached substantial agreement on most issues, minority views were expressed and advocated strongly. These minority views can be found In the following section on Detailed Analysis of Key Issues. This document will be presented to the CSDOC Boards of Directors,who will consider RAC recommendations in making policy decisions and possible changes to the current rate structure. Overall Philosophy In general, RAC members agreed with the governing philosophy of sources and uses of funds as shown in Table 1. -.. tsr,... Operations and Maintenance of Existing Facilities Existing Users Capital Replacement of Existing Facilities Existing Users Capital Construction of New Facilities to Accommodate Growth New Users Capital Construction to Improve Level of Treatment Both New and Existing Users Sewer User Charges It is Important to note that the recommendations made by the RAC address the rate structure (how the costs are allocated back to each user)only, and not the level of funding. A revenue neutral evaluation was conducted during the comparison of alternative sewer user charge methodologies. However,there was broad agreement that the rate structure should shift from charging commercial users on the basis of square feet of Improved property to charging based on wastewater flow and strength of discharge. This recommendation to move to a wastewater flow and strength basis significantly changes the user charges for some commercial businesses. it raises the rates for some businesses,and lowers it for others,while raising approximately the same total amount of revenue from the commercial user group or category. For example,restaurants,carwashes and supermarkets would see a relatively significant increase in their annual user charges. Whereas warehouses, churches and theaters would see a significant reduction in their annual user charges. Connection Fees Connection fees are paid by new users when they connect to the St em to cover the costs of the new facilities required to convey,treat and dispose of the expected wastewater. Similar to sewer user charges,the RAC recommended a flow and strength basis in determining connection fees. sxwaaoaweroarsuaTEAPcWt) C-2. DRAFT-February 17, 1998 This recommendation was based on the conclusion that wastewater flow and strength is a better measure of the cost impact of a user on the system than is square footage. In general,the RAC thought it was appropriate to assign most of the costs for wet weather facilities to residential users. This is, in part, because residential lateral systems are the primary source of infiltration which contributes to peak wet weather flows. This recommended change in methodologies would increase the percentage of total connection fee costs allocated to the new residential user category from 61% up to as high as 70%,with proportionate reductions in new commercial and new industrial categories. Because actual total costs are not yet finalized, it is not known if this increased percentage will result in higher or lower residential connection fees. Recommended Action/Next Steps it is recommended by the RAC that the CSDOC Boards of Directors review and consider these recommended methodologies for the development of a rate structure for sewer user charges and connection fees. This will allow CSDOC staff to move forward with the calculation of sewer user charges and connection fees as the new Strategic Plan and the associated Capital Improvement Plan and the estimated construction and operation and maintenance costs become better defined. This will also allow the staff to proceed with the development of rate structure evaluations such as tiered residential connection fees and the number and type of commercial user charge categories. Following this consideration of the methodologies for the development of a new structure,the _ preliminary user charges and connection fees are anticipated to be completed in draft forth by early spring 1998, in coordination with the development of the overall Strategic Plan. 2. Detailed Analysis Of Key Issues Changes to User Charge System The following major user charge issues were reviewed and associated opinion statements were developed by the RAC members. 1. Should the Existing System of User Charges be Changed? This question is fundamental to the issue of whether or not there are outstanding concerns over the equity of the existing rate structure. Ayes'vote Signifies that some improvements can be made. A'no'signifies a desire to remain with the existing rate Structure. Voting Results Yes 16 No 4 s+�soeeomaeroSTsuuh-nrc.wro G3 DRAFT- February 17, 1998 Majority Opinion • Most RAC members felt that the existing system of user charges should be improved. Minority Opinion • Even the minority agreed that there needs to be a more accurate measure of all users on the system. 2. Do We Change Commercial Categories? This question addresses the desire to shift from charging commercial users based only on square footage to charging them based on wastewater flow and strength. Currently, all commercial users are charged the same cost per square foot of Improved property, regardless of whether the commercial user is an office building or a restaurant. Voting Results Yes 20 No 0 Use 19 Categories as proposed 5 Use staff-determined number of Categories 15 Majority Opinion • All RAC members felt commercial categories need to be revised to more accurately reflect the actual wastewater flows and pollutant loads of the users. The majority(15 members) felt that the 19 categories of the 105 available that had been developed as pan of the workshop process needed to be further evaluated. Most RAC members agreed that they would feel comfortable with the Districts' staff and Board determining the final commercial category breakdown as long as it was equitable. Minority Opinion • No minority opinlon, as none of the RAC members vd i Wd to keep the existing system of commercial categories for user charges. 3. Should Multi-Family User Charges be Proportional to Single-Family? Mum-family residential units typically discharge less than single-family residential units. This question asks whether it is appropriate to continue to recognize this difference by charging multi- family units less than single-family units, based on actual field measurements. swoemmaeromsuuteavc.wvo C-4 DRAFT- February 17, 1998 Voting Results Yes 21 No 1 Majority Opinion • A majority of the RAC members feel that the measured difference in wastewater flows and loadings between multi-family versus single-family homes justifies establishing a pro-rats reduced rate for mufti-family homes. Minority Opinion • One member of the RAC did not want to continue with a difference in rates for single versus multi-family homes because of the increasing number of people living in multi-family homes, more closely resembling occupancy of single-family homes. 4. Should Different Cost Allocations be Applied to User Rates? — Currently, existing user charges are based on the average cost for total residential,commercial and industrial contributions. This question addresses whether residential users should pay a user charge that is higher than the average cost to treat a gallon of flow and a pound of pollutant loading in order to have commercial and industrial customers pay a user charge that is lower than the average cost. The purpose of the lower charge for commercial and industrial users would be to provide an incentive for commercial and industrial users, and their associated jobs and other economic benefits,to locate in Orange County. Voting Results Yes 6 No 16 Majority Opinion • The majority feels that the'Same Average Cost'approach for user charges is a fair allocation, resulting in a cost charged to each user based on the average cost to treat a gallon of flow and a pound of pollutant loading. • Residential users should not subsidize commercial and industrial users. • There are other means in existence for encouraging and keeping industry in the community. • Commercial,industrial, and residential users should all be treated the same. • A different allocation would result in an unfair burden on residential users. • It could also adversely affect those on a limited income. -- SUMBBWWEPORISWATEAMNPD C-5 DRAFT- February 17, 1998 • Any other approach may not satisfy the fair, equitable, proportional charge requirements of Proposition 218. • User charges may not be as big a concern as connection fees in attracting industry. Minority Opinion • Some RAC members expressed a desire to provide a user charge structure which would encourage Industries(and jobs)to locate and remain in Orange County. • Industry Is not Impacting the fixed costs of operation. • ReplacemenVimprovement may shift to residential users In the future anyway if industry leaves. • The different cost allocations may result in a better allocation of fixed and variable costs to the residential, commercial, and industrial categories. • The number of residential units far exceeds commercial/industry. To give back a small percentage to attract and keep business seems reasonable. This is only one arrow in the quiver that may be used to attract business but it is important all the same. 5. Although a majority of RAC members felt that Different Cost Allocation should not be adopted:If Different Cost Allocations are Adopted What Is the Preferred Method? If it is a good idea to provide a user charge for commercial and industrial users that is lower than the average cost,then which of the methods should be applied? Each different method results in a different contribution from residential users to commercial and industrial users. Voting Results Constant O&M (residential only) 5 Replacement and Improvement(residential only) 15 Both Constant O&M and Replacement and Improvement (residential only) 0 Other Methods 1 Majority Opinion • The majority of RAC members voted for the method that provides the least cost impact to residential users. s:waoaeoow2voat Tee .wro C-6 DRAFT- February 17, 1998 Minority Opinion • Some members of the RAC felt that a greater incentive was warranted for industrial and commercial users. • Because there are so many residential users, a substantial break can be provided to industrial and commercial users with just a slight increase in residential rates. Changes to the Connection Fee System The following major connection fee issues were reviewed and associated opinion statements were developed by the RAC members. 1. Should the existing system of Connection Fees be changed? This question is fundamental to the issue of whether or not the existing connection fee system is equitable. Ayes'vote indicates that some improvements can be made. A'no' indicates that the existing connection fee system is preferred over the aitematives that have been discussed in the RAC process. Voting Results Yes 20 No 2 Majority Opinion • Most RAC members felt that the existing connection fee system needs to be improved. • Although in the aggregate,commercial users contribute their share of connection fees, many new commercial users are not charged in accordance with their impact on the system. • One member thought that CSDOC should not even have a connection fee. Minority Opinion • Some members fell that increases in administrative, field monitoring and laboratory costs for a new connection fee system may outweigh the benefits. 2. Should CSDOC have Tiered Residential Connection Fee Categories? This question addresses the fact that different types of residences have different impacts on the system and whether the connection fees should be tailored to account for these impacts. Currently all residential units are charged the same connection fee. s113DEDWSEroRrs3uTElac.vnD C-7 DRAFT- February 17, 1998 Voting Results Yes 20 No 2 Majority Opinion • Most RAC members fait that residential connection fees should be tiered for different residences. They felt that a tiered fee would accurately reflect the impacts of household size,water use characteristics, and other factors. • Some members questioned whether the number of bedrooms is the best way to characterize the impacts that residences can have on the system. Minority Opinion • Some members feff that the improved accuracy from a tiered connection fee was not worth the probable extra administrative costs that would be incurred to implement such a system. 3. Should We Provide Industrial Incentives for Connection Fees? This issue addresses the desire to provide connection fee'incentives'for new commercial and industrial users to help keep and attract new jobs to Orange County. The incentives would be provided from new residential users to new commercial and industrial users. Currently,there are no'incentives*provided for commercial and industrial users. Voting Results Yes 16 Maybe 5 No 0 Majority Opinion • Nearly 75%of the RAC members felt that there Is merit in providing connection fee incentives for new industries. • Incentives may help provide Orange County with a competitive edge over other communities that are also competing for industries and associated jobs. • The indirect economic benefit to the residential sector resulting from industrial incentives may make it worthwhile for new residential users to pay more to provide the incentives. Minority Opinion • Some members were not convinced that connection fee incentives would be a significant factor in luring industry to the area,especially when compared to the s�iswrr:.,vc.wro C-8 DRAFT- February 17, 1998 r. other economic considerations which may be more important in deciding where to locate an industry. • New residential users would have to pay a higher connection fee to provide this incentive. • The process for establishing who receives the incentives may be controversial. 4. Should Connection Fees be Payable Over Time? The purpose of providing the ability to pay connection fees over time is an attempt to help make the cost of locating commercial and industrial users in Orange County more affordable. Currently, connection fees are collected as a one-time, up-front payment. Voting Results Yes 12 No 3 Majority Opinion • Most RAC members felt that it is a good idea to allow flexibility in the rate structure for industries and large commercial establishments to pay connection fees over time. • To qualify for payment over time, a minimum connection fee should be established by CSDOC. This would limit the number of users that would quality for this payment option. Otherwise,the administrative and financial burden may be too great. • The terms of the payment option should be established by CSDOC staff so that they are reasonable to industry,to some as an incentive. Minority Opinion • A few members felt that CSDOC should not be providing private banking services. If a business wants to pay over time,then it should obtain financing. • The members were also concerned that H an industry defaults on their payment that the other users would be responsible for the unpaid portion. 5. Should Dhiferent Cost Allocations be Applied? This question addresses whether residential users should pay a connection fee that is higher than the average cost to expand the treatment plant in order to have commercial and industrial customers pay a connection fee that is lower than the average cost. The purpose of the lower connection fee for commercial and industrial users would be to provide an incentive for commercial and industry,and their associated jobs,to locale to Orange County. samaeoowePomsvure-arc.wvo G9 DRAFT- February 17, 1998 Voting Results -- Yes 12 -- No 2 Majority Opinion • Most RAC members fell that connection fee incentives should be provided for industry. • It is worthwhile for new residential users to pay a slightly higher connection fee to help attract good jobs Into the community. Minority Opinion • Some RAC members fell that all Gasses of users (residential, commercial and industrial)should pay a connection fee based on their average loading on the system and that no user Gass(residential) should pay to provide an incentive for another user class. 6. If Different Cost Allocations are Applied, Which Method Should Be Applied? If it is a good idea to provide a connection tee for commercial and industrial that is lower than the average cost,then which of the methods should be applied? Each different method results in a different contribution from residential users to commercial and industrial users. Voting Results • The group fell that this question could not be answered directly with a vote for one method,so a range of responses was solicited. The percentage for each response corresponds to the percentage of the total connection fee burden that the members fail should be paid for by residential. Residential% Description Vote 87% 'Incremental'Method 0 Between"Incremental"and "Buy-In' 3 76•/ 'Buy-In' 0 705'• "Wet Weather'Method 3 Between 'Wet Weather'and"All Pay the Same' 6 61% 'All Pay the Same'Method 1 Below'All Pay the Same'Method 1 14 Majority Opinion • Many of the RAC members felt that some incentive should be available to industry but that it should be applied so that residential should pay between 61 sM9oe9omeePOWVMTEl WPo C-10 DRAFT- February 17, 1998 and 70 percent of the total connection fee burden, or slightly more than an allocation based on 'all users pay the same average cost.' • Many of the members specifically support the'Wet Weather'allocation method. Minority Opinion • A few members think that it is important to provide an incentive to businessfindustry. These members feel that residential should provide a sizable incentive (a residential share of the connection fee burden corresponding to the range bounded by the 'incremental"and 'buy-in' methods) for industry because this would help attract jobs into Orange County. sxaaeeoPaewarsvur=arc.wao C-11 DRAFT- February 17, 1998 Appendix D • . s .wvo Revenue Program Guidelines Subject Index page SECTION 1 -General General Requirements G- 1 Annual Revenue Requirements ....................... .... ........... G-3 Identification of Users . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . ... . .......... 0-4 Allocation or Annual Revenue Requirements and Rate Determination ....... G-5 Implementation and Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 0-7 - I SECTION 2-Special Considerations Regional Treatment systems ............................. ............ G-9 Individual Systems ................................................G- 10 ConnectionFees ........................................:.........G-10 Standby Charges .................................................. G- 10 MinimumCharges ................................................G-10 Ad Valorem Taxes ...............................................:G-16 Sewer Use Ordinance ..............................................0-11 SECTION 3-Sewer Use Ordnance... . ... ............................... G-I1 SECTION 4.-Dedicated Source of Revenue ............................... G- 11 Definitions . . . . ....... .... . ... . ...................................... G-13 �. Ad Valorem taxes,notification of use .....................................G-15 Sewer Use Ordnance,certification of compliance ...........................0-16 Sewer Use Ordnance requirements ..... .................................G-17 Letter of Intent . . ..... ....... . ..... ................................... 0- 19 Useful fives and allocation parameters ....................................0-19 Commercial user strength characteristics .................................. 0-21 1 Typical flows from various sources and devices ............................. G-23 7 Notice of proposed change In wastewater rates .............................G-26 Revenue Program fours and instructions . ... .. . . .......................... G-27 Form 1 'Summary of Users and Wastewater Chantstsistice ............. G-29 Fam2 'Annual Operating and Nonoperating Costs' ................... G-31 Form 3 'Capital Cat Allocation' ... ................................ G-33 Fotm4 'Unit Cat Determinalim. . . ......... .. ............G-35 ...... ... Form 5v 'Summary of Variable OM&R Cats' ........................ 0-37 t Form 5f 'Summary of Fixed OM&R Cats' ........................... G-39 i Form Sc 'Summary of Capital Replacement Fund Cats' ................. G-41 Form 5d 'Summary of Debt Service Fund Cats' ....................... G-43 Form 5w*Summary of Wastewater Capital Recovery Food Cats ..........G-45 Form li 'Summary ofToml Annual Revenue Required. ... . . ............ 0-47 Fomu 7 'Rate Determination and Revenue Program Summary' ........... G-49 COMMERCIAL USER STRENGTH CHARACTERISTICS STANDARD CLASSIFICATIONS BOD(ooml SS(ppm Residential(average varies 175 175 depending on average water usage to to Per capita) 250 250 Auto Steam Cleaning 1,150 1,250 Bakery,wholesale 1,000 600 Bars without dining f=Wtim 200 200 Car Wash 20 150 Department and Retail Store 150 150 Hospital and Convalescent 250 100 _ I Hotel with dining facilities 500 600 rIi Hotel/Moud without dining 310 120 Industrial Laundry 670 690 J Laundromat 150 110 .. Commercial Laundry 450 240 Market with garbage grinders 800 g00 r Mortuary '800 R00 Professional Offim 130 s0 Repair Shop and Service Station Igo 280 iRestaurant. 1,000 600 , School and College 130 100 Septage 5,400 12,000 Soft Water Service 3 55 STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD REVENUE PROGRAM GUIDELINES INTRODUCTION The Revenue Program Guidelines(Guidelines)are intended to provide assistance to all municipalities(cities, counties and special districts)in developing,implementing,and maintaining revenue programs and implementing ordinances to comply with Section 204(bxl)of the Clean Water Act,Federal and State Regulations and Policies of the State Water Resources Control Board(Board). In these Guidelines all cities, counties and special districts are referred to by the term*municipalities'. These guidelines apply to all recipients of State.Revolving Fund(SRF)loans. Some municipalities may desire to deviate from specific provisions. Deviations should be discussed with the revenue program specialist. The revenue program specialist of the Division of Clean Water Programs(Division)is available to answer inquiries relating to the preparation of revenue programs,these Guidelines,and implementing ordinances. If _.� disputes arise concerning the Division's interpretation of these Guidelines,municipalities,in accordance with the California Code of Regulations,Tide 23,Division 4,Chapter 12,Article 7,Section 3655-3658 of the State Regulations,may petition the Board for review of the Division's decisions. .. SECTION 1 -GENF1RAi. Section 1-1 -General Rearurements A- The revenue program is a formally documented determination of a user charge system developed by the municipality. It is designed to provide a source of revenue(for operation,maintenance,and replacement(OM&R)costs of the wastewater enterprise)that satisfies Federal and State requirements. In addition,debt service and revenue for establishing a capital reserve fund and an operating reserve food may be collected by the system of charges based on actual use,or,if approved,by ad valorem lanes. B. A system of service charges is developed first by estimating the municipalityvs annual revenue requirements for the total wastewater system OM&R,including those portions which were not grant or loan funded Rates are than set based on the identification of the users and their respective contribution to the wastewater loading of the treatment waft. This process is described in detail in these Guidelines. C. Revenue programs must be submitted to the Division by the municipality. Programs submitted by a consultant will not be reviewed unless occompanied by a cover letter from the municipality. A8 correspondence must include the following information and be signed by the authorized representative: h 1. Murucipalit3/s name,address and phone number. 2. Grant and/or loan number(s). G I 1 r 3. purpose of revenue program(draft,final or update). D. A draft (proposed)revenue program and a draft of an ordinance/resolution committing a source of funds for repayment of the SRF loan must be submitted to the Division as pan of the facilities plan during the planning process. It will be reviewed by the Division and the municipality will be informed of any deficiency in the proposed system of charges. The draft revenue program must be approved by the Division prim to Division approval of the finnfities plan. E. A final revenue program and adopted sewer use ordinance(see Section 3 on Page G- 1 I of these Guidelines,most be submitted to,and approved by,the Division prior to pay out of funds beyond 90 percent of the loan amount. F. A draft of the proposed rate ordinance most be submitted with the final revenue program. An enacted rate ordinance must be submitted prim to completion of construction`The rates in the ordinance must agree with those shown in an approved revenue program. A new revenue program may be required if OM&R costs change substantially. The enacted rate ordinance or resolution need not be implemented until the treatment works are placed in operation. G. The draft revenue program may be either separably bound and labeled or included with the fadifies plan. If the revenue program is included with the facilities plan,it is the muniapalitys responsibility to insure that the Division'revenue program specialist receives a copy. The foal revenue program must be separately bound and labeled Only me ropy must be submitted to the Division for approval .� R The revenue program forms contained in this appendix beginning on Page G-29,if utilized,will facilitate Division review and approval. In most cases,the fonts indicate all the information that is necessary for a revenue program L The user charge system shag take precedence over my terms or conditions of agreements or contacts that the municipality may be party to that am inconsistent with the requirements of these guidelines. If there are my preexisting agreements or contracts that are inconsistent with the requirements of these guidelines the municipality most notify the Division's revenue program specialist at the time a revenue program is submitted of review. J. I.ettas of intent executed by each industrial user which will contribute more than ten(10)percent - of the treamne rt works design flow or design loading must be submitted wit6the draft revenue progam A sample letter of intent is provided m Page G- 18. Lettets documenting commitments . by industrial users intending to increase flows or loadings or to locate in the municipalitys service amen in the future must also be submitted with the draft revenue program K. The charges developed in the revenue program and capital toss which are collected via a medium other that the user charge must tie published in a newspaper of general circulation within the municipality's service men. The notice must substantially follow the formal shown on Page G- 15. G - 2 Section I-2 -Annual Revenue Requircrti" I A. Operation d maintenance,including molacementlOM&Rl Municipalities need funds to pay the annual costs of operating and maintaining grant funded and non-grant funded treatment works. Theo costs include the costs of labor,power,chemicals, supplies,laboratory control and monitoring,general administration,billing,and incidental items incurred during normal operation. Also included are those expenditures tensed ordinary repairs necessary to keep the facilities in proper operating condition,replacement(as defined below)and other administrative costs,such as overhead and accounting which are directly related to the operation and maintenance of the treatment works. I ' An estimate of operation and maintenance costs should be made by adjusting the municipality's latest operating cost data to reflect operational changes,wage escalation,and staffing changes. In the case of newly constructed facilities,estimated OM&R costs must be fisted in the facilities plan by the engineer. B. Replacement costs A separate line item for replacement must be shown in the calculation of the annual revenue _I requirements. Replacement casts include all expenditures requited for a facility to operate for its' design life. Replacement costs do not include the following capital costs: ` 1. Major rehabilitations which may be needed as individual unit pros ss:es mcar the end of their design five. 2. Structural rehabilitations. 3. Facility expansions or upgrades to meet future use demands or upgrade treatment Replacement casts include such items as: pumps.motors,telemetry and electrical controls,air scrubbing equipmen4 chlorination and dechlarination equipment,vehicles,radios,etc. Replacement costs should be based,at a minimum,co a five(5)year planning cycle. For example, assume that a municipality estimates it will have to replace S85,000 worth of equipment over the next five years and it has$10,000 in the replacement account. The amoral replacement cost to be included in the user charge would be: S85.000-sm.000—$15,000 per year 5 years This cost must be calculated each year. The municipality may,in lieu of the five(5)year replacement plan,deposit an amount in the a replacement fund equal to the sum of the straight line depreciation(based on anent costs)of the assets(excluding structural facilities such as buildings,ponds,pipes,etc). J G- 3 t _ C. Nbt setvicr Debt service is the annual sum of the principal and interest payments on proposed or outstanding obligations secured by bonds or loan contracts. A SRF loan received from the Board must be repaid via a dedicated source of revenue(see Section 4 on Page G- 11 of this appendix). A separate account must be maintained within either the debt service fund or the enterprise fund for repayment of the SRF loan. D. Wastewater eaoital reserve fund Municipalities participating in the SRF program we required to establish a wastewater capital reserve fund(WCRF),prior to receiving a loan contract The WCRF is requiredto help pay for future expansion,impravanenu,and rehabilitation. Payments to the WCRF usually appear as a separate line item within the annual budget. E. Opemtiny reserve fund(optional) Municipalities are encouraged to establish an operating reserve fund to insure the proper operation of the treatment works. This fund is intended to satisfy posts associated with unanticipated price increases,additional chemical usage,etc It does lulu include costs for replacement of equipment Wastewater agencies in Cal forma normally operaae with reserve equal to between 10 and 50 percent of annual revenue requirements,with most municipabda being in the 20 to 40 petcemt range. Seetian 1-3-ldentific lion Of Users After the annual revenue requirements are determined,the users of the treatment works and their associated wastewater flows and loadings(HOD,SS,or other appropriate amistiments)must he identified. flows and loadings must be doamented for the user groups listed below,in order that proportional costs can be calculated. AU users of the facility must be included in the revenue progam. A Residential users. Individual met allocations need not be made for various types of residential users. However,municipalities may wish to divide residential users into single-family,multiple family,or mobile home sub-groups to allow for more refined cost allocations. B. CommemW sisers. Becase of great.veriability in wastewater flow rates,the commercial group should be divided into appropriate subgroups defined in the Commercial User Stmegtb Characteristics table on Page G-21 of these Guidelines. The strengths given in on Page G-21 need not be used if the municipality has supportable date relating to other specific loadings. Large commercial users utilizing five(5)percent,or more,of plant design rapacity win exmss of 25,000 gallons per day must have their costs allocwzd individually. C. Institutional users. Costs must be allocated to individual users or to user grmps,such as public or private hospitals,convalescent hones,schools,colleges,correctional facilities,etc. D. Industrial users. Because ofgrm variability in wastewater flow rates,the industrial group may nod to be divided into appropriate subgroups. Industrial uses contributing more than 25,000 gallons per day or using five(5)pewnt,or more,of plant design capacity must have costs allocatedd individually. G- 4 E.. Outside munkilinlities. Any outside municipality discharging to the treatment facilities must be listed as a separate user group. F. sentare. Irseptage is received by the treatment works,this category must be listed as a user class with the corresponding Bows and loadings. The charges established for septage must be based on � - its contributing loadings. Generally,a 1,000 gallon dumping contains 45 Its(5,400 mgd)of BOD and IOO lbs(12,000 mSA)of SS. These loadings should be used for septage from rmidenti al septic tanks only. Other types of'septage" from commercial or industrial sources must be sampled at the dischargers expense to allow a proper charge and prevent unacceptable discharges. Section 1-4-Allocation Of Annual Revenue Reouinments And Rate IOeterminatian Allocation of annual casts is done in two steps. First,the cost is allocated among the treatment parameters(flaw,HOD,SS,and other appropriate constiments)in proportion to the percentage of costs that these parameters represent. Second,these amounts are divided by either total annual li plant loadings or total design loadings to produce unit costs for each parameter. When these unit costs are multiplied by the loadings or design quantities of each user,an annual rate in proportion to the ours demand on the system is established. t A, Policies affectinv rate determination 1. The portion of the annual revenue requirements which constitute the cost of OM&R of the treatment woda must be recovered from users of the system by mesas of a user charge system based either ou actual use or through a praapproved ad valorem tax system. The total OM&R budget may,however,be offset by income derived from the operation of the wastewater facilities;such as sale of used equipment,sludge,sludge gas,power created by the effluent or fmm residues,reclaimed wastewater,farm crops,or other by-products.as j well as investment income from wastewater treatment related assets if the assets were originaUy derived from income generated from user charges. 2. Municipalities may(at their option)adopt reduced(less than proportionate share)rates for j low imwrme residential uses. Low income users are defined as any user whose income is F below the poverty rate established within the munlepalitys Carnty. These reduced service charges,if used,must be based on an economic consideration only. The discount may mpj be applied only to a subgroup under the poverty level(.e.,only to senior citi>ems). If the municpabty decides to adopt a low income discamt rate the following miles apply. ! a The discount rate selected will apply to all users who qualify for the discount It. Eligibility for the discount must be verified at least annually. C. AU revenues which sine lost because of the discount must be recovered from other uses of the system through increased service charges. The provisions of Section I- 4 A,4. (Public Notice)of these Guidelines apply to the granting of discounted rates. 3. Any preexisting agreements which levy OM&R charges for more or less than the rates calatlated through the revenue program baud on actual(or estimated)use will not be allowed to continue,and the charges must be revised to reflect the approved rates. G - 5 r 4. User charges must recover the cost of OM&R from all usersbased on Weir propontonate contribution to the total wastewater load from all users. The Division recommends that user rates,designed to recover all other vests,(debt service,Capital reserve,etc.)be proportional to the cost of the service tendered. Charges for these other revenue requirements may be collected through service charges,ad valorem taxes,or assessments. If they are collected through service charges,and the municipality does not wish to recover these other casts in proportion to system use,public notice describing the impacts of the _ - propped rate structure is required. An opportunity for public comment within a reasonable period of time prior to final adoption of the rate ordinance by the municipality must be given. Notice shall be given by direct mailing to all orgonintions and individuals who have previously requested such notice and to all user of the system who will be adversely affected by the change in rates. The notice must substantially follow the format of the Public Notice Format on page G-26 of then Guidelines. The municipality may wish to include,in the notice a discussion of the facts which prompted the proposed rate ordinance,and the pros and cons of the camunent B. Allocation of costs based on flow only. Allocation of costs based on flow only may be made if either one of the following conditions are met 1. The municipality's service area(or the service area of a municipality participating th a regional system)contains lass than 10,000 current population,no industrial users,and does i not receive septage flows;or 2. The residential design flow exceeds 95 percent of total design flow of the treatment works and there are no industrial or septage Bows. C. Allocation of costs based on ad yalorem,(AIM taxes A municipality's user charge system based on ad valotet(AN)fazes may be approved if. I. On December 27, 1977,the municipality had in existence a system of dedicated AN taxes which collected revenues to pay the cost of operation and maintenance of wastewater treatment works within its service area,and it has continued to use that system; 2. The AV,tsser charge system distributes the OM&R costs for all ueaunent works within the municipality's service area to the residential and small nonresidential user class Including, at the municipality's option,nonresidential,commercial and industrial users that introduce no more than the equivalent of 25,000 gallons per day of domestic sanitary wastes to the treatment works)in proportion to the use of the treatment works by each class;and 3. Each industrial and commercial user which discharges more than 25,000 gallons per day(or more than five(5)percent of the design flow)must pay is share of OM&R toss of the treatment works based on charges for actual use; and 4. A system of surcharges and rebates is instituted to insure that all users(or user groups)pay J their proportionate share of the OM&R cots. G- 6 D. Allocation of costs of infillrafion and inflow H /11. 1. The user charge system shall provide that costs ofoperation and maintenance for all flows net directly attributable to users(i.e.infiltration and inflow(1/1)be distributed among all users based upon either of the following a. In the same manner that it distributes the costs for their actual use;or b. Under a system which uses one or any combination of the following factors on a reasonable basis: (i) Flow volume of the users. , (ii) Land area of the users. � (iii)Number of hookups or discharges of the users. (iv) Property valuation of the users(if AN mxes are used). E. Ad 1m m�osL jAdministration costs may be included in the OM&R cost allocation,or they may be separated and allocated on another equitable basis,such as oumbcr of accounts. Section 1-5-Cmnlememtatioo mad Maintenance. A Yinplemeatinp ordinances A municipality's tem_ sYs ofcharges,as described in the final revenue program,must be incorporated in we m more municipal legislative ordinances or other legally binding requirements. If the tntamuent works accepts wastewater from other municipalities,the other municipalities receiving waste treatment services must also adopt user charge systems in accordance with these Guidelines. I B. Aecetmtim system.; 1. Wastewater activities will be.accounted for in an Enterprise Fund. An Enterprise Fund is a fund established to account for operations: (a)that are financed and operated in a manner similar to private business enterprises-where the intent of the governing body is that the costs(expenses,including depredation)of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges;or(b)where the governing body has decided that periodic determination of revenues earned,expenses incurred,and/or net income is appropriate fm capital maintenance,public policy, 1 management control,accountability,or other purposes. G - 7 f 2. If only one fund is used,it will consist of at least two revenue and three expense accounts as follows'. Revenue accounts a Service eharmt:revenmr. Only service charges,dedicated AN taxes and income generated from the operation of the wastewater facility(see Section 14 A, 1 of these Guidelines).will be deposited to this amount. Revenue fmm this account may be used for any wastewater related activity. - b. Capital revenue: All other sources of revenue(.e..connection charges, augmentation funds,standby fees,undedicated ad valorern,etc.)will be deposited in this account Funds from this account may only be used for plant expansion,and major rehabiGmtims. OM&R osu may mug be faded from this account(see Sermon 1-2,B of these Guidelines for discussion of replacement costs). AD spatial districts inducting county water,community service and public utility districts must use the uniform system of accounts prescribed for wastewater disposal districts under TrOe 2,Division 2,Chapter 2,Sections 1101.1 thr ugh 1103.4 of the California Administrative Code. hose municipalities not subject to the uniform system of ettouots must establish acmrnting systems far wastewater treatment conveymce,treatment,and disposal which will provide essentially the same level of detail as the uniform system. )sense McCoy=: a Oocretion and maintenance: Designated for the specific purpose of defraying the operation and maintenance costs of wastewater conveyance,treapno;and disposal. These costs must be funded frorn the service charge revenue account b. Rt IAmmen Designated for the specific pupose of ensuring that mplaarnent funds are available to maintain the capacity and pufomhana of the treatment works over its useful life. This fund does not include money set aside for==peered price increases which should be accumulated in an operating reserve fund. These costs must be funded from the service charge revenue account = - c Canital esneoditum Designated for any otherwastewssw4tiafed activity not properly included in either the Operations and Maintenance Account or Replacement Amount Ether of the above mentioned Revenue Amounts(see 2a and 2b above) may be used to fund expendiumes charged to this account C. Temnoeary laaninv of funds. The above does no preclude the loaning of funds from the wastewater accounts(including capital reserves)to other was provided the following conditions are met: 1. It has been established that these funds will not be required for wastewater activities for the period of the loan. 2. The loan is recorded in the appropriate account with the loan period specifically shown. G- 8 3. The source borrowing the money pays at least as much interest as the wastewater fund would have earned if the money had not been loaned. D. Requirements for review and approval. Implementation and maintenance of an approved revenue program is required as a condition of every loan contract. Each municipality must maintain all records which are necessary to document compliance with appropriate State and Federal Requirements. _ The Muniapahty is subject to audit by auditors fiom the Barad and/or the State Controller's Office. _ Audits may be coordinated with operation and maintenance inspections and audits of other grant . conditions. .I The municipality shall review and revise its rate structure and ordinances as necessary to reflect actual funding needs of the treatment works. A copy of the review work papers and rate ordinance change,if any,shall be forwarded to the Division's Revenue Program Spedalist jAny time that rates are changed,a copy of the new rate ordinancdresolufion shall be submitted to the Division's revenue program specialist for review. SECTION 2-SUCIAL CON IDE AMONS Section bl -Revianel Treatment Coral• s When treatment works serving more than one mumapality,at consolidated into a regional system,the following requirements for institutional and financial arrangements apply. A institutional arraoeemc_t Any number od5naitutiooal arrangements betwxa agencies participating in a regional system are acceptable. Special districts or joint powers authorities may be formed or service agreements entered into which designate a municipality es*lead agency to apply for and receive a loan. Regardless of which institutional arrangement is chosen,the user charge system outlined in the revenue program must cover all wasmwater treatment services provided and each participating municipality must adopt its own user charge system rate ordnance or resolutitan. B. Submission of a reveooe oreteram for a mrioEW gygm: If the regional municipality is authorized to bill the individual users of the system,only one revenue program and rate ordinance or resolution is required. . If the regional municipality bills the subscribing municipalities,which in turn bill the individual users,separate revenue programs and rate ordinances or resolutions are required for the regional municipalities and each subscribing municipality. The regional municipaliWs charges to subscribing municipalities must be based on actual use and include the fixed cost of reserved capacity if capacity is reserved for specific subscribing municipalities. G- 9 C. Interaaencv agreements: All interagency agreements must be submitted to the Division for review. These agreements should address the issue of how the costs of future plant expansions will be allocated. Section 2-2- I d' 'd ual Systems The user charge system requirements apply to SRF Loan funded alternative wastewater treatment systems (including dual waterless/graywater systems),even if privately owned,which are neither connected to nor are part of any conventional trenmmem system. Section 2-3-Connection Fen Normally,a portion of the capital costs of a project are recovered from future users through connection far. If connection fees ere not colleted because anticipated growth does no occur,the capital costs of the plant must be recovered from the existing users. Because anticipated growth does not always occur,existing users should be infomted of these potential costs before core®merits are made to find the project Accordingly, for treatment works with more than 25 percent of the total treatment plant capacity reserved for future users,an analysis is required of the charges which would be assessed to existing users if anticipated growth does not occur. This analysis must be included in the proptued revenue program. Comeetim fees may be used to recover debt service costs which would have bem recovered on as annual basis,if the user had ben connected when the treatment woks began operation. This fee may not be used to recover excmive cost from f iwm uses of treatment works im order to reduce charges to cumen uses. Connection fees may ltia'be used to fund replacement cam. Section 2-4-Standby Charmers Standby charges may be used to recover debt service fiom potential users prior to connection,if service is available and the standby charge is proportionate to the available service. Standby charges shall no be charged to properties for which no capacity or insufficient capacity is available. SeeFan 21 -MOM UM Cha n If a municipality charges Bat rate for some users and a variable rate(such as water consumption),for others, a minimum charge may be established for the variable me users to collect the fixed costs of providing service. This charge must no be more than the minimum charged to any suer group which is charged a Bat rate. For example,if apartments arc charged a flat rate which is less than the single family rate,the minimum charge to customers paying on water consumption would be the rate charged to apartments.no single family residences. the same minimum charge must be applied to all user groups which have a minimum charge, unless it can be shown that fixed costs vary significantly. Section 2-6-Ad Valorem Tares. If a municipality has an approved system of AN taxes,the user charge for tax exemption organizations may ppl be adjusted to recoup lost taxes(160 Cal Rpt 925; 100 CA 3d547). G- 10 SECTION 3 - SEWER USE ORDINANCE A sewer use ordinance or other legally binding document shall prohibit any new connections from inflow sources into the treatment works and require that new sewers and connections to the treatment works are properly designed and constructed. The ordinance or other legally binding document shall also require that all wastewater introduced into the treament works not contain toxies or other pollutants in amounts or concentrations that endanger public safety and physical integrity of the treatment works;cause violation of l effluent of water quality linutations;or preclude the selectim of the most cost-effective alternative for wastewater treatment and sludge disposal. Refer to Pages G- 16 and G- 17 of these Guidelines. SECTION 4-DEDICATED SOIIRCE OF REVENIfF. Section 603(dXl XQ of the Federal Clean Water Act Amendments require each loan recipient to establish me or more dedicated sources of revenue for repayment of the loan. A dedicated source can be a special assessment,general tares,general obligation bonds,revenue bonds,user charges,or other sources. Revenue will be considered dedicated when the municipality passes at ordinance or resolution committing a source of funds for repayment. The resolution or ordinance dedicating a source of funding for repayment of the loan must be adopted before issuance afthe loan contract. Ordinance language equivalent to the following would be acceptable: J The (municioaliN) hereby dedicates the following source of revenue (user chag¢e. Rmcteds of revenue bonds tic.) to repayment of my and all State Revolving Fund loans on Project No. C-06-_-_This dedicated source of revenue shall remain in effect until such loan or loans we fully discharged unless modification or change of such dedication is approved in writing by the State Water Resmrces Control Hoard. Ii f I G- 11 f BLANKPAGE G. l2 r� DEFINITIONS As used in these Guidelines,the following words and terms shall have the meaning as set forth below: I Ad Valorem Tax(AM: A tax based upon the value of real properly. Annlicant'. A municipality that has(or will)applied for a SRF loan. CAC: California Administrative Code. _ I Capital Co..t%: Costs of facility,expansion,upgrading treatment or constructim/replacemml that extends a Caality's useful life. Combined Sewer. Selvage-stormoindustrial-stone drain combination. Commercial User. AD retail stores,restaurants,office buildings,laundries,and other private business and I service establishments,including churches and lodges. 1 Connection Fee: A fee paid by a new system user for the capital costs of capacity made available for its use. Construction: The phmning,designing,and eoostruction of any treatment works. Division, The Division of Clean Water Programs of the State Water Resources Control Board. Financial Plan: Adescription of the proposed institutional arrangements that will be used to manage the project,and of the amount and sotucm of funds necessary to finance the municipality's share of the project cost and to provide for cash flow,during the design and construction periods. Futum Capar"ly, Available treatment works capacity which is no needed to serve existing users. Grantee, A municipality that a ccuted a State or Federal grant contract. Industrial User•. Any nongovernmental nonresidential use of publicly owned treatment works which is identified in the Standard Industrial C]assification Manuel, 1972.Office of Managernent and Budget,as amended and supplernetted,under the following division: .a. Divisim A-Agricultural,Forestry.and fishing; b. Division B-Maing; c. Division D-Manufacturing; i d. Divisim E-Transportatim,Communicatims,Electric,Gas,and Sanitary; e. Divisim I-Services. A use in the Divisions fisted maybe excluded if it is determined that the user will introduce primarily segregated domestic waste or wastes from sanitary conveniences. iInfiltration: Water other than wastewater that enters a sewer system(including sewer service connections andfoundation drains)from the ground through such means as defective pipes,pipejoints,connections,or manholes. Infiltration does not include,and is distinguished from,inflow. G- 13 t Inflow: Water other than wastewater that enters a sewer system(including sewer service connections)from sources such as,but not limited to,roof leaders,cellar drains,yard drains,area drains,drains from springs and swampy areas,manhole covers,aces connections between storm sewers and sanitary sewers,catch basins,cooling towers,storm waters,surface runoff,street wash waters,or drainage. Inflow does not include,and is distinguished from infiltration. Memicinality: Any political subdivision of the state such as a county,city,special district or public agency formed under the laws of the state. pr.4ieet, The scope of work for which assistance is awarded by a grant origrant amendment or a loan contract. Rehabilitation: Extraordinary expenditures for obtaining and installing equipment,accessories,or appurtenances which extend the usdtd life and/or improve the capacity or efficiency of the treatment works as originally designed Rehabilitation costs ae considered capital outlays. Replacement: Expenditures for obtaining and installing equipment,accessories,or appurtenances which are necessary during the useful life of the treatment works to maintain the capacity and performance for which such works were designed and cousmrered. Revemme Preoram: A formal documentation of charges designed to provide revenues for proration and roaintenmce including replacement(OM&R),and local debt service for treatment works,and which demonstrates;compliance with SRF policies on user charges. - - Service Charge, A charge levied on a user of the treatment works which includes a user charge to recover the costs of operation and maintenance(including replacement)and which may include a charge for capital reserve and debt service. Treatment Works: Any devices and systems used in collection,transport,storage,treatment,disposal, recycling,and reclamation of municipal sewage or industrial wastes of liquid nature,or necessary to recycle or reuse water at the most econontical cost over the useful life of works. Osier. A recipient of wastewater collation andlortmatment services as described in the definition of 'Tromment Works'. fiser Charge; A charge levied on users of a treatment works for the cost of operation and maintenance, including replacement . . . . G - 14 SAMPLE NOTIFICATION OF USE OF AD VALOREM TAXES In accordance With Section 104(bXIXA)of the Clan Warr Art and/or State Water Re:woas Comrol Board policies lmemieeviir•x munc) is required to ramify all uses Of its aewaage systw of the rate and slat Domim of user charges and ad valorem (property) taxes attributable to W ewatcr Services. (ImmXMaliiv's mull-collects Service rlarg5 and rCGim a portion Of the one percent (1%) general tax"collected eacb year frmpropaty owma w0to us bumdanes launch map if appropriate). Ibis mice's being published in eonjuomim with the--Tong Of the Joint Consolidated 1 Tax Bill by the (ConOrv) tar collector. In fiscal year_(year) (mumciwIjWq ==I is -Pocw m rtmve frxmoea m M rexeived) (assume - 4% for this example)of the one per general tax levied within lmmiri 3IJV: suum'1 . In order to estma¢the amwmt of ad V210=taxes commuted by yOurparcel, mdtiply not perttm of the asscxsod value of your property by (f W percent, = an example. SI00,000 of assessed value emr3mm We following: $100.000 x 0.01 x 0.04 - $40.00 lmn.nehaBev'x aimel will also assess a service ebarge of _(Amoum) per year per single family reddeact. Other residential,commercial and industrial users pay a proportional charge as stipulated in Ordinance(or Resohition)No._. The above revrnies ate used esclsively to provide was a servi= within frmmci alnv's vame) boundaries. G- 15 SATISFACTORY EVIDENCE OF COMPLIANCE SEWER IISE ORDINANCE 1. (Name) certify,as duly authorized representative of (m uticinalirv) _ thm the (rmmidaatity) will have,in each jurisdiction served by the treatment works,an enacted sewer use ordinance or other legally binding requirement which will: 1. Prohibit any new connections from inflow sources to the sanitary sewer portions of the sewer system;and 2. Require new sewers and connections to the sewer system to be properly designed and constructed;and 3. prohibit the introduction into the treatmeot works of any trades or other pollutants in®amts or eoncmtratioos that endanger public safely and physical integrity of the treatment works;or cause violation of effluent or water quality limitation; or preclude the selection of the most cast eSective alternative for wastewater treatment and sludge disposal. This ordinance will be enacted prier tonindy percent(90%)of construction and enforced upon completion of construction. Date (coned) Name (sWmWm) Telephone Title G - 16 SAMPLE PARAGRAPHS TO SATISFY THE SEWER USE ORDINANCE REQUIREMENTS I. The ordinance shaft prohibit arty new connections from inflow sources into the sanitary sewer portions of the sewer system. fExample: Prohibited Waste Discharges No person shag disdsage m cause m be discharged any mnwmer,storm water,goundwater, street drainage, subsurface drainage, yard drainage, including evaporative type air cooler discharge water,into any sewerage facility which is directly or indirectly connected to the sewerage facilities of the (my_cirralN). 2. The ordinarrce shall insure that new sewers and connections to the sewer system are properly designed iand constructed. Example: Construction Standards I .� Plans for sewerage construction shall raw all design requirements of the public corporation having area jurisdiction and shag also meet the design requirements as established from time i to time by the Engineer, and Inspection of all sewerage construction shall be made by personnel of the (municipality) in the manner described in the following sections: j In addition, the municipality's sewer design and construction specifications must define a maximum 1 allowable infiltrationtex6iltration rate for new sewers. 3. The ordinance shall prohibit the introduction of torus and certain pollutants. Example: Prohibited Dischimms No person shag disrhmge or cause to be discharged to arty public sewer whichdirectly or indirectly 000ntvu to the (rta=link) sewerage system any toxic or other waste,if in the opinion of the (menager) such wastes may have an adverse or harmful effect on sewers, - i maintenance personnel,wastewater treatment plant personnel or equipment,treatment plant effluent quality,public or private property,or may otherwise endanger the public,the local environment or create a public nuisance. The(manager)in determining the acceptability of specific wastes,shall consider the nature of the waste and the adequacy and nature of the collection,treatment and disposal system available to accept the waste. G - 17 r GouRrne-c soup compANY Adwinistratiun Building. Suite 9 Franklin, f.A 98765-4321 Mr. Craig Hagen Board of Directors Greater Franklin Sanitary District Franklin, CA 99765 Dear Mr. Hagen: LETTER OF INTENT,ALLOCATED COSTS OF WASTEWATER TREATMENT It is the intent of the Gourmet Soup Company(Company)to utilize the wastewater treatment facilities of the Greater Franklin Sanitary District to treat approximately 100,000 gallons per day of process wastewater from our facility. This wastewater is expected to have an average strength of 1,200 mgll of BODS and 3,000 mg/1 of SS. It is understood by the Company that the wastewater treatment facilities were firaded, at least in part,by(loans)from the State of California It is fimther understood that as a condition of this(loan),the Company must pay to the District the full cost of operation, Maintenance and replacement costs attributable to treating the Companys wastewater. It is the Companys understanding that if there is a substantial change in the strength,volume, or delivery flow rate characteristics of the waste introduced into the treatment works by the Company,the charges will be adjusted accordingly, and that if there is an expansion or upgrading of the treatment works, charges to the Company will be adjusted accordingly. Although this letter represents a good faith estimate of period of use and capacity needed by the Company,it is not to be coaatrued as binding the Company to continue discharging any quantity or quality of wastewater to the Districes treatment works,to pay for capacity of treatment that it does not use,or to use the facilities for any definite length of time. The information given is provided only to assist the District in sizing the treatment works and to evidence awareness by the Company that it will be required to participate in payment of certain costs, including those described above. Sincerely, Mr. Charles Ellison, Chairman.of the Board G - 18 LIST OF USEFUL LIVES AND ALLOCATION PARAMETERS To reasonably allocate emu among the various users of wastewater treatment works,a"useful life" must be determined for each major component Also,the cost of each component must be attributed to its major function. Following is a list of acceptable lives and loading parameters. These are satisfactory for general applications. If other parameters or useful lives are used they must be substantiated by documentation or reference and approved by the Division. TREATMENT UNITS LOADING USEFUL COMPONENT PARAMETER LIFEIYRS Grit Chamber. Structure Flow 40 Equipment - SS 15 Screen ar Comminutar Structure Flow 40 Equipment SS 15 ln0uent Pump Station: Structure Flow 40 Equipment Flow IS Primary Clarifier. Structure Flow 40 Equipment 35%BOD 65%SS 25 Activated Sludge: Stucwm 25%bod 75%Flow 40 Equipment BOD 25 Trickling Filter. - Structure 25%BOD 75%Flow 40 Equipment BOD 20 Secondary Clarifier. Structure Flow 40 Equipment BOD 25 ChIminatim Facilities: .St}Ilmlre Flow 30 Equipment Flow 12 Digester. Swmtre 50%BOD SOP/.SS 30 Equipment 50%BOD 5001.SS 12 Pumping Stations: Structure Flow 40 Equipment Flow 20 Ponds: Embankment flow 50 Equipment - BOD 20 Sludge Thickening: ' Structure 50%BOD 5011.SS 40 Equipment 50%BOD 50%SS 15 Miscellaneous: Buildings Flow 40 Carbon Adsorption BOD 25 Interceptor Flow 50 Outfall Flow 75 G- 19 a t BLANKPAGE G-20 ° COMMERCIAL USER STRENGTH CHARACTERISTICS _ STANDARD CLASSIFICATIONS BOD(ooml ss(unm) Residential(average varies 175 175 depending on average water usage to to per capita) 250 250 Auto Steam Cleaning 1,150 1.250 Bakery,wholesale 1,000 600 Bars without dining facilities 200 200 1 Car Wmb 20 150 Deparnnent and Retail Stare I50 I50 Hospital and Convalescent 250 100 _ I Haul with dining facilities 500 600 HoteliMotel without dining 310 120 Industrial Laundry 670 680 l Laundromat 150 110 -- j Commercial Laundry 450 240 Market with garbage grinders 800 800 Mortuary .800 800 Professional Office 130 80 Repair Shop and Service Station I80 280 i Restaurant. 1,000 . .. 600 . School and College 130 100 Septage 5,400 12,000 iSoft Water Service 3 55 G-21 r NOTES ON COMMERCIAL USER STRENGTH CHARACTERISTICS The list of commercial strengths listed on Page G-21 was derived from data made available to the State Water Resources Contra] Board (SWRCB)staff by East Bay Municipal Utility District, City of San Joss Los Angeles County Sanitation Districts, and the Sacramento Regional - County Sanitation District The results generally represent the mean of the values used by the agencies which collected the data with extreme values eliminated in sane caws. The SWRCB staff feels that the data on strength is representative of most cities in Cahfania. The data is provided fayour infamatim. The values in the table will be accepted by SWRCB staff.. if you fed that the data provided in the table is not representative of your service area,please feel free to utilize mart representative data If strength values far carmnercial users other than those provided an this list are utilized,supporting data should be submitted to verify values used G- 22 TABLE G-I Estimated water consumption at dif erem types of establishments. n.nw.ta•nr TYPE OF ESTABLISHMENT ITJcaflN is Invrr ITMI'mg mea,radmtiJ: mwa e.aue,®m e�.:mw aae a�e<a oath S0.75 niwa a•.d��m vaetie..au owvh.mamas Ioo.Doo Sul�vitim E•wnvam bAviAW IL�amwtl wmh.Iro Eobam� I Saow s>,em.:rim awanmgmpaena.•neyyh.®naa4oe,ma� a.�mam:a�aa� np.amm 1,a�m m oa.;ew..n+ Ds-ioo Av.�mmnaveemv �eawh.mmnaaa w- noels so-lmloo 1loeamena� m Idl�gbamdlmitEme 40 Cn wsboa ke�m;paW 100.I50 Iry u mysmk.moJ wn eenrn saw �c�•.wmla - 15 IssaaY.Pnrnc gtp 35.100 a� -3150 t..... ycivyctde�es+4pema 12LI30• aamaemt<��Slaun): n.c.gc 7-10 _ E;amm rmv�Y a� `� SEm ode 4 �^'c�•P9Q mvix 1-3 Bva cdmrYwl lomgv O A�mBe cYFSDcaet 35 Armgtyp 24 .W. - m •1 TmcVs si 20 / Satiacvgpc mmca auNfrd�'eeY) 350 5vn¢�Fe VNc Wdabw'eY) 150 Idle�yimc AweBc cYVe 7SW N�ae1a 130.uo Sdmk Q+Y mo �'Y•"*g�f<m'a bmd Aam 10.15 o,y,xehrfeci.dbov. 15-30 Boat 15 Theanx ,aaav,pcca,c�.e J,w''vIDPa�rY 3 Oia0ou,otlutrmefmJasdFcs 3-5 Aumobac avvi¢mc)m Pa echideimd 10 lbMdP'�c SOD Siva Lea 33 fen dGmc.ge 450 Ea6 addiimal u fan dam.ge aW Amamh'Ve I00 Tmvm cYPtrn•Ta� 11-35 OT. 10.15 Fanainmarywaaapclia 13.35 Sdf'evc lmAy 2W 1 0 3 a JkY+•Oe enry �8v^al+edbemn.ta3n eJ bav 0.15 ^.: . via.�•*s wml��m s10 F ly haeaiGwmddy�maox) 1 Aa®DI)'S Pa 1 A^Vac.M0eama> 23 •AM 115 paf Fa��f>Iv+.a 9a�1J6 orw�o61mka6c nc NUfE Waco mdcP��Sddalµ cA w¢q bema 1 sc ammNcclm abvrvemd Figw>rcnww VQ�4+F�Eay calm aWvwi¢4a3 G- 23 1 TABLE G-2 Design unit sewage flows For reereationO f aloes {Ydlwfaee Naioul Pvb) I Establishment Unit I Flow/gpd C.rn.da T.W.vut 150 C..pgromd(devd.ped) Peron 25 Cmkua lomge Sad 20 Coffm.h.p Co Wro.t 250 Diamg roe. TA6 m 150 Dmmim,y,bmkhoow P. � 50 Fuh de.0 s d.em Storm 7,500 G.d.6m stem 2.00o-5,000 He.p1W Bed 2W Hotel Pawn 75 Iamd. W.d'.g m.rLme 500 bodgemubin. Pews So Mew haO P. 15 01hea.ed m.c E+.pteym 25 R.ddmwh, ap . u P. 75 T.a.vMn. Pe.m 35 V.dt.mnien Ydita 5 TABLE G-3 Sewage flows from commercial districts Establishment Unit Flow,gpd Abpwt Pg. 5 Had P. IN 'Mad P. 50 Red..mt Ma9 7 Shq*SCm.r Fo0eyee 60 S.an buine Fmpeym 20 The Sad 5 TABLE G-4 Average sewerage flows from institutional facilities Establishment Unit Flow,gpd F7.emt..y.bwb Stedmt&Stiff 10 No h..b Stdmi&Stiff 20 Medid W*W Pdimt&Stiff 173 MmWho.ph.l Pdimt&Staff 125 Pd.. In.de&Staff 173 G- 24 I I TABLE G-5 Miscellaneous water usage estimates Item Una Avg. Gal. used Air condieooer.bometype,wmr railed, ®d 2980 Aetumdc home Levdry merhine led 30-50 P. 6.5.9 na wb Pm U. 30 Dirhvubmg m.chaa,boor type Lod 4-8 - P. 6 Duhwadh.gtnerhm4-- _ ._,typ4 tUtx. yrsk gpm bA ,Cmvercr t)P° 8Pm db Driokieg ro.uz.,roofiocou Baww, CA 75 i Cvrbrge dirped;hoax type P. la ewr Sb bad Per Um 25.30 Warh buie Per Um l Ir2 Weterdom k P.U. .a5 iWp ,domL Gn h vdw imm 30 TABLE G-6 Typical composition of domestic waste i Constituent Strong Medium Weak A&.Sm y(u CaCO3)• 200 100 50 Bioche,mul Orygm Demad,S-day,20'C(HODS) 300 200 100 Cherm•.t On.Dcm d(COD) I000 500 no l Chle6du• W 50 30 l C. l50 IN So DGvogec,(IoW u24) 85 40 20 ,Orgmic 35 IS 8 Free�raia50 50 25 12 Nefn 0 0 0 Ndreer 0 0 0 Pboapboru,(mW u P) 20 10 6 ' Orgmic 5 3 2 1 Faorgaic 15 7 4 Sdd-ble rdidy(.V t.) 20 10 5 1 Sotid;toW 1200 700 350 Diadwd,toW gw 500 250 Fvd 525 300 145 Vdable 325 2W 105 Snrymded,tad 350 200 I00 R.d 75 50 3D Veldle 275 ISD 70 TeW otgrmic taboo ROC) 300 200 IN NOfEM\>.h,e aasp•mlet4cNW RtaPlt0ademgdaa. •Vduvttredd be navrdby momtvmrugc rya. G- 25 e 1 PUBLIC NOTICE FORMAT NOTICE OF PROPOSED CHANGE IN WASTEWATER RATES The City Couadl of the City of Hagenville is considering ante ordioaott for wastewater ircavnere which provides that capital Boas will not be recovered in proportion to syaero use. The effect of the oNurance is to reduce cross to majamarial and commercial users with a corresponding increase in the ma to residmuial ours. The following table shows the rates proposed to be charged types otters m ft mduwW,co—rciad,and r sidanial ategorim using the proposed rase srilcture. The table Compares slam rates with what they would be if they were calculated in proportion to symem use. PROPOSED MONTHLY CHARCISC Type of Proposed Proportion User Ralea b Us. Dlff.re. Induusnal User 51.500 S;000 -s500 •1puc IRdusrial User S 750 S1.000 -sm Typical Commercial U. S 000 S 400 SI00 Typical RuiQntial User s 9 s 7 +$ 2 The City Council inv0n you to aftem and panieipm in a public diseuvim of this proposed ordua.. 1t will be hald: Due: Tme: Place: Any rymocat whirl are r®acd by the Cray Council pram to the dale of the menin8 will also be eoasidered. (A discussion of the faces which prompted the proposed rase ordinance and the pros and cons of its enacbnent may be inserted at the end of the notice a included on a separate sheet of paper.) G- 26 LZ-9 I I I i f i SNOLLon'dISNI ONV SVTdOd WVNJ02ld 3nN3n321 i r- BLANKPAG& G-28 " I FORM T SunumryolUaan and Wubrnler CAmaIaMAN pnplupbnaN NtlalPaP( Munk(paApr: Dale: ( WASTEWATER CHARACTERISTICS DESIGN CAPACITY TOTAL ANNUAL ANNUAL CAPACITY mff*or ADM SO)0 SS DESIGN o I 83 VOLUME BW SS Of uam(ueeromp) FLOW ft"11,31 I (EWFWI� (CMwB I IDW I WI.31 i IEP0 0e.34 AUWNa MOID Md0 MO Ae IN I � I I � I I S lel CNNIAuAons I InAloatloMnSm FuLm CaPadtY 70T LS FORM 1 - SUMMARY OF USERS AND WASTEWATER CHARACTERISTICS(STRENGTH) 1. PURPOSE: (a) To identify groups of residential,eommerciel and industrial users. (b) To show wastewater characteristics,design capacity provided,and estimated annual volumes and quantities of pollutants for these groups,and for any special classifications. 2. TO COMPLETE THE FORM: (a) 'A'Enter the number ofuurs(comectiona)in each group. (b) 'B'Enter names of users(usar groups)t See Commercial User Strength Characteristics on Page G-21 far a list of typical user groups. (a) 'C'E'Show wastewater characteristics for each parameter for arch user(user group): Average dry weather(low(ADWF)in million gallons per day(MOD),biological oxygen demand(BOD)and suspended solids(SS)In parts per million(ppm). See Page G-21 for average strengths for typical users. n u (d) 'F'H Show facility designs capacity for each user(user group). Design capacity is in MOD,BOD and SS In Ibs/day. O (e) '1-'K'Enter annual contributions for each user(user class)for each parameter. Volume(I)is ADWF(C)times the number of days in a yeu(365). Some users(schools,canneries,ens.)may only operate for a portion of a year. Therefore,the number of days of operation may be less than 365. Total annual BOD M is BOD in mg/L(D)times total annual volume(r)times 8.34. Total annual SS(K)is SS in mp/L(E)times total annual volume(1)times 8.34. s (a) Other relevant parameters besides BOD and SS maybe used if they are consistent with the design basis of the treatment facility. (b) III must be sepustely identified The difference between ADWF(C)and design tow(F)is that design flow is the'peak Bow for seasonal users FORM 2 Annual Operating and Nonoperating Coate INaaunbnt m ma a Naa) Municipality: Dale: CURRENT YEAR FIRST YEAR OF COST CATEGORY COSTS FULL OPERATION 1. TREATMENT FAGLITIES laI FIXED O b M COSTS (b) VARIABLE Ob MCOSTS -. (c) REPLACEMENT COSTS (a) SUBTOTAL TREATMENT (a) (b)•(c)_(d) 2. COLLECTION SYSTEM: (a) FDED O b M COSTS ' (D VARIABLE 0 b M COSTS (a) REPLACEMENT COSTS (n) SUBTOTAL COLLECTION (a)•m•(0)=(n) 3. MISCELLANEOUS: I() OVERNEMIINDIRECT i N OPEPATWC RESERVE (m) Other (e) SUBTOTAL MLSCElANEOU5 m•(k)•(m)_(n) ,. TOTAL VARIABLE COSTS (b)•M•(4) t S. TOTAL FIXED COSTS (a)♦(e)+(a)•(g)+(n)•(S) 6. TOTAL 0.M.b R.COSTS (4)•(S)•(a) T. CAPITAL REPLACEMENT FUtO ( e. DEBT SERVICE (P.1 ,wB Mare l) ! 9. WASTEWATER CAPITAL RECOVERY FUND G- 31 t FORM 2: OPERATION AND MAINTENANCE(INCLUDING REPLACEMENT)AND NONOPERATING COST DATA I. PURPOSE: (a) To show current year O.M.&R.costs and estimated first year' O.M.&R.costs in accordance with Section 1-2,A of the Revenue Program Guidelines. (b) To show current year administration costs and estimated administration costs in accordance with Section 14.E of the Revenue Program Guidelines. See also notes for Form S. (c) To establish an operating reserve fund as discussed in Section 1-2.E of the Revenue Program Guidelines. Operating reserves are strongly recommended,but not required,by these guidelines. - (d) To establish a Wastewater Capital Reserve Fund as required,by Section 1-2,D of the Revenue Program Guidelines. 2. TO COMPLETE THE FORM: (a) Each municipality should enter cost dam as requited For regio"facilities,the lead municipality and each subscribing municipality should enter an this form only the cost incurred wits own facilities. For example,the lead municipality may operate and maintain the treatment plant and interceptor and each subscribing municipality may operate and maintain its own collection system. (b) Fumed costs*are those vests which do not vary directly with Sow(i.e.labor,testing,debt service,etc.). Replacement costs,which are normally fixed costs,must be separately identified (c) Variable costs*=costs which vary directly with}low(.e.chemicals,utility costs,etc.). (d) Methods far estimating the mount of reserves to be established in the operating reservefund are set forth in Section 1-2,E of the Revenue Program Guidelines. (e) Show current and"first yea?debt service(principal and interest)an line 9. 3 NOTES (a) Replacement costs will be calculated in accordance with Section 1-2,B of the Revenue Program Guidelines. Records showing computations will be rewned by the municipality and are subject to audiL - (b) Minimum annual payment to a Wastewater Capital Recovery Fund(WCRF)will be calculated in accordance with SRF Loan Program Guidelines. • Separating costs into fixed/variable components is optional. All casts,except replacement maybe combined if desired. G- 32 L —+Z 7—LT UINM 1�-1 �t ulpunj 1�1 -U UL ........... ................. ..........-......... .............. _7 ................... -Ulwpvuo� "Suo, Wid ;UDWIL�U 'Z $ $ A-111 ss 009 moli IvIol (3) M 31VO Jv(jd.o c MO-4 FORM 3: CAPITAL COST ALLOCATION I. P RPOS (A) To show computation of capital cost percadages,to be allocated among users,for flow,BOD and SS. Other Parameters must be shown if applicable. (b) To compute local cost if construction costs are reimbursed by state or federal grants. 2. TO r.ONTLETE THE FORM: (A) Eater total costs of collection system,treatment facilities,and disposal facility,etc,in column W. (b) Allocate cat for flow,BOD,and SS for treatment facilities according to parameters developed for each component based on aaud experience and records or toe percentages shown in the list Of Useful Lives And Allocation Parameters on Page G- 19 of these Guide fines. Fester totals onl6 but retain work papers for subsequent audit Collection system _ and disposal famLty cats will be allocated 100 percent to flow. (e) Ewer my grant assistance on line 12. Gant assistance for treatment facilities must be allocated on the same basis ets the cats m line 2, 3. NQI1aT: (a) Administrntim costs may be allocated rmmeng flow,BOD,and SS based on any reasonable formula supported by the municipalitys experience. [see also Note 3(a)on Form 4 Instructions] . (b) Farm 3 is optimal. It may be used if the municipality has no otber means to determine the division of the 0.NC&R.expenses between flow,BOD removal costs and SS removal costs. G 7¢ _ FORM 4 Unit Cost D0.t MN n+n,.r4,. u 7 Municipality: DBW' (A) IB) (C) (D) (E) PARAMETER ANNUAL COST TOTAL UNIT COST COST CATEGORY ALLOCATION ALLOCATED TO ANNUAL FOREACN PERCENTAGES PARAMETER OUANTITIES PARAMETER 1.Valibin O AMCwle: n Flow BOD _..0 SS 21Fbo OaMccas fm ss r� .. ., ... sr. s s` aglow ''SCVfastawnmr _ Rab� - u Fb (.)SS l7 Ortler G - 3S FORM4: UNIT COST DETERMINATION 1. PURPOSE (a) To calculate the unit cost for each parameter. 2. TO COMPLETE THE FORM: (a) In Column'IT fist the parameter allocation percentages determined from Form 3 or frmn prior municipality aperience. For infiNnuionfin11ow,the allocation will be based on percentage of flow parameter only. This is calculated from Form I by dividing annual I/I volume(column '!7 by total=us]volume(column T). (b) In Column'C allocate annual costs to each paraneter. Annual O.M.&R.,operating reserve fund,and debt servim costs are obtained fi a Fonn 2. Capital replacco ent fund and wastewater capital recovery fund costs must be detemuned by the require rents of these guidelines. (e) Total quantities for Celu,'D'arc obtained fiorn Form 1. Modify total flow for I 11. (See Note 3(d)below) (d) Unit costs in Column E are obtained by dividing total cost for each parameter in Cdu®'C by the conespoadmg total quantity in Column 7y. i 3. NOTFS: (a) Allocation of OM&R.costs can be calada[ed based on(I) 113 to each parameter,or(2)the capital cost allocations frcw Form 3,or(3)any other allocation formula which can be justified by the municipality. (b) A participating"subscribing municipality should have separate unit cost determinations which show chore corn incurred prior to discharging wastewater into facilities controlled and operated by the regional municipality. (c) Operating reserves car be shown in O.M.&R,Item 4,Colu na'C. However,if separate, show on separate Forro 4. (d) Total design quantities may be used for debt service and *W Replaume nt Total annual quantities will be used for variable and feed O.M.&R G - 36 . ti FORM Sv Summery of Venebis CM&R Fund Corti Vmvwbm m back=f page)' Municipality: Date: (A) (B) FLOW BOD SS ( I ) Number Unit Cost=$ IMG Unit Cost=$ IKlb Unit Cost=$ /KIb of Users (User Group) (C) (D) (E) (F) (G) (H) TOTAL Accts MG S Klb $ Klb $ COST I t C) V J I I I S ecfal Classifications In riltrationANlow I TOTALS FORM 5v: SUMMARY OF VARIABLE OM&R FUND COSTS 1. PURPOSE: (A) To calculate the total costs for each user(user group)based on the variable OM&R costs. A separate Form 5 will be used for each fund utilized. 2. TO COMPLETE THE FORM: (a) Column'A'&B'are the same as Form 1 Column'A'&W. (b) For Columns'C,V&'0'frg in the corresponding parameters from the respective Column T,'T or on Form 1 for each user fisted. Annual capacity and quantities must be used for variable OM&R fund. (c) For Columns D','F&.If(Unit Cost)place the unit cost developed on Form 4,Column'F,at the top of each column. The appropriate dollar amount on each Gne is calculated by multiplying the amount in Cohmm'C',V or'O'by the appropriate unit cost at the top of the ee column. (d) Column'f is a summation of costs from Columns D','F md'Ef for each user(user group). 3. NOMi -- — (a) If the operating reserve fund is not inelgdedm the Variable or Fined OM&R fund a separefe�orm 5 will be regmred-for the Opeiating- - ---- Reserve fund. The applicable unit parameters for the Operating Reserve fund wig be the same as for the OM&R fund. (b) Administration costs can be either included with OM&R costs a calculated separately as a separate fund. One method of allocation is to divide the total administrative cost by the total number of users(connections)and then multiply this unit cost by the number of users in each user group for the cost in Column L FORM Sf Summery of Flxsd CM&R Fund Costs tinstvlb'u on b k or"go) Municipality: Date: A) (B) FLOW 800 SS ( I J Number Unit Cost=S /MG Unit Cost=$ /Klb Unit Cost=S IKIb of Users (User Group) (C (D) (E) (F) (G) ) (H) TOTAL Accts MG S Kib $ Klb S I COST I I . n W i I Special Classifications Infiltration/Inflow TOTALS FORM 5f: SUMMARY OF FDCED OM&R FUND COSTS I. PURPOSE: (A) To calculate the total costs for each user(user group)based on the fixed OM&R costs. A separate Form 5 will be used for each Pond utilized. 2. TO COMPLETE THE FORM: (a) Column'A'&B'are the same as Form I Column'A'&B'. (b) For Columns'C',B'&'G fill in the corresponding parameters from the respective Column T,T or W on Form I for each user fisted. Annual capacity and quantities must be used for Fixed OM&R Pond (c) For Columns'D,7&N(Unit Cost)place the unit cost developed on Form 4,Column'V,at the top of each column. The appropriate dollar amount on each fine is calculated by multiplying the amount in Colmnn'C','E'or'G'by the appropriate unit cost at the top of the > column. 0 (d) Column T is a summeuon of costs fiom Columns Ty,7 and'H'for each user(user group). 3. NOTES: (a) If the operating reserve fund is not included in the Variable or Fixed OM&R fund a separate Form 5.wig be required for the Operating Reserve fund. The applicable unit parameters for the Operating Reserve fund will be the same as for the OM&R fund. (b) Administration costs can be either included with OM&R costs or calculated separately as a separate fund. One method of allocation is to divide the total administrative cost by the total number of users(connections)and then multiply this unit cost by the number of users in each user group for the cost in Column L FORM Sc Summery of Capital Replecemant Fund Coate (lnslmtllans on beck of page) Municipality: Dale: (A) (B) FLOW I B00 SS ! ( I ) Number Unit-Cost--$ IMG Unit Cost=$ IKIb Unit Cost=$ IKlb of Users (User Group) (C) (D) (E) (F) (G) (H) TOTAL Accts MG $ Kib $ 1 Klb $ I COST i a i I SpecielClassincations InfiltralioMnflow Future Ca eclty TOTALS FORM'Sc: SUMMARY OF CAPUAL REPLACEMENT FUND COSTS I. PURPOSE (A) To calculate the total costs for each user(user group)based on the capital replacement fund costs. 2. TO COMPLETE THE FO M, (a) Column'A'&'B'ere the same as Form I Column'A'&W. (b) For Columns'C,'B'&'G'fill in the corresponding parameters from the respective Column T,'T or TC on Form I for each user listed. The municipality should decide if annual or design capacity and quantifies will be used for the Capital Replacement fund. (See Note(a) below) (c) For Columns'D',P&'H'(Unit Cost)place the unit cost developed on Form 4,Column W,at the top of each column. The appropriate L7 dollar amount on each line is calculated by multiplying the amount in Column'C,'E or'G'by the appropriate unit cost at the lop of the > column. N (d) Column T is a summation of costs from Columns Ty,7 and for each user(user group). 3. NOTES: (a) if the municipality uses design capacity and quantities in the Capital Replacement fund calculations the revenue from user fees alone win not generate sufficient revenue for full funding of this expense. Other revenue from standby charges,connection fees,etc.must be used to fully fund this cost. I ...t FORM 5d summary of Debt saMeo Fund Costs Iro en Mdtorpsee) MunlclpalRy: Date: Number (B n sl L Linil Cost=BOD SS IKIb n_I C--tom_— IKlb (I ) Of Users(User Group) (C) (D) (E) (F) (G) (H) TOTAL Accls MG KI $ Klb S COST I ! i I � n W • 1 Special Classificallons InriltretbnllMlow Flu re COpacity I I TOTALS FORM Sd: SUMMARY OF DEBT SERVICE FUND COSTS 1. PURPOSE: (A) To calculate the total costs for each user(user group)based on the Debt Service Fund costs. 2. TO COMPLHIIE THE FORK (a) Column'A'&W are the same as Form I Column'A'&W. (b) For Columns'C,'E'&'G'fig in the corresponding parameters from the respective Column T,T or Won Form I fa each user listed. The municipality should decide if annual or design capacity and quantities will be used for the Debt Service fund. [See Note(a)below) (c) For Columns'IY,'F&'H'(Unit Cost)place the unit cost developed on Form 4,Column'E',at the top of each column. The appropriate dollar amount on each fine is calculated by multiplying the amount in Column'C','E'or'G'by the appropriate unit cast at the top of the n column. a (d) Column T is a summation of costs from Columns'ly,7 anci ff for each user(user group). 3. NOTES r - Ifthe municipality uses design capacity and quantities in the Debt Service fund calculations the revenue from user fees alone will not generate sufficient revenue for full funding of the required debt service needed. Other revenue from standby charges,connection fees, etc,must be used to Hilly fund this cost. l . FORM5w summary of wastewater Capital Roa mry Fund Coat, easbudlo aonlreekalpe0e) Municipality: Date: (A) (B) BOD SS I ( 1 ) Number Unit Cost- 0 UnitCost-$ fKlb Un Cost= IKlb . of Users(User Gmup). (C) ) (E) (F) (G) (H) i TOTAL Aeds MG Klb E Klb E COST i II � i I a N I I I I T I Special Classifications Infillrelionllnliow Future Capacity TOTALS FORM Sw: SUMMARY OF WASTEWATER CAPITAL RESERVE FUND COSTS 1. PURPOSE. (A) To calculate the total costs for each user(user group)based on the Wastewater Capital Reserve fund costs. 2. TO CONTLETE THE FORM• (a) Column'A'&13'ere the same as Form 1 Column'N&3'. n (b) For Columns'C','E'&'G'fill in the corresponding parameters from the respective Column'T,'T or'R'on Form 1 for each user listed. The municipality should decide if annual or design capacity and quantities will be used for the Wastewater Capital Reserve fund. (See a Note(a)below) (c) For Columns 97,'F Mr(Unit Cost)place the unit cost developed on Form 4,Column'E',at the top of each column. The appropriate dollar amount on each line is calculated by multiplying the amount in Column'C','E'or'G by the appropriate unit cost at the top of the column. (d) Column T is a summation of costs from Columns'd,'F and'IFT for each user(user group). 3. NOTES (a) If the municipality uses design capacity and quantities in the Wastewater Capital Reserve fund calwlauons the revenue from user fees alone wits not generate sufficient revenue for full funding of the fund. Other revenue&om standby charges,connection fees,etc. must be used to fully fund this expense. 1 I 1 . FORM 8 Summary of Total Annual Revenue Required (lmaudlom on back of pane) Municipality: Date: A B C D F (H) (1) (J) Variable Fixed Capital Debt I Total Average Average Number Usere(UserGreup) OMBR OMBR Replace. Service WCRF Annual Annual minthly of Costs Costs Costs Costs Costs Revenue Revenue Revenue Accis (Form 5v ono 5 Form Se Form 5d Form SwI Re uired ! Required required_ t I i J , I ------- Special Classifications InflI rattonnnnow Future Capacity 1 TOTALS FORM 6: ANNUAL REVENUE REQUIRED I. c ^LPOSE. (a) To sum up individual fund costs from Forms 5v through 5w. 2. TO COWLETE TMS FORM: (A) Columns'R and W ere the same as Fort I Column'A'&'B'. (b) Columns'C'through'G'-transfer appropriate fund costs from the appropriate Form 5,Column T. (c) Column'N is a summation of Columns'C through'G'. n (d) Column T is the amount in Column Ir divided by the number of users in Column'A'. a e Column T is the average payment required in each user and is determined b dividing average annual revenue required Column ( ) mg PaSTn W group Y g9 I 'r]by the number of billing periods in a year. 3. NOTES: (a)— Use only those columns CC through'G)applicable to your revenue program and the appropriate Form 5(s)used. FOAM] gr�D+�lWlen�nO Awrr Pio0��5rmnw/ Dole MWYdpeCry: I I l I 1 1 G-49 _i FORM 7 RATE DETERMINATION AND REVENUE PROGRAM SUMMARY I. PURPOSE: (a) To show the proposed method for collecting the total annual revenue shown on Form 6, Column 'I'. The municipality must develop a user charge system that results in a distribution of costs which are reasonably proportional to each user's(user case)contribution to the costs of the wastewater treatment facilities. (b) To show a summary of total revenues and total disbursements 2. TO COMPLETE THE FORM: (A) Charge systems may include a combination of one or more of the following (1) Flat rates. (2) Rates based on water consumption. (3) Rates based on monitoring (4) Connection fees. (5) Standby charges. (6) Ad-Valorem taxes. isee 40 CFR 352140(B)for limitations] (b) The summary of total revenues and disbursements should include a complete breakdown of revenue so and disbursements into the various fund structures. 3. NQMS: (a) SWRCB staff wi0 review the wastewater user charge system to determine if the municipality will collect sufficient revenue to support adequate operation and maintenance of the wastewmv faalitim and if the users of the wastewater facilities are charged in proportion to their actual use as required by 40 CFR 352140. G- 50 UdM�LRT3ddYmWDdJtl100pOp�B , 3 xspueddv s ,jm 0 ° oam�.u.cart List of Tax Categories in Bach Commercial Billing Category Auditorium/Amusement Office Building Amusement Parks Store w/Office or Living Quarters Entertainment Center Gov.Use Vacam/Developed Office to 3 Stories BowlinglSkotiug Small Office Center Bowling Alleys Office Complex Skating Rink High-Rise Office Convert Residential to Office Car Wash Coinop Coin-op Car Wash Private School Pre-schools,Nursery Car Wash Conventional Private Schools Conventional Car Wash ._ Professional Building Church Medical Building(to 3 stories) Church Buildings Small Medical Center Medical Center Complex Club High Rise Medical Fraternal Building Converted Residential to Medical Convalescent Home Regional Mail Nursing Home Regional Shopping Center Convalescent Hospital •Converted Residence to Nursing Home Restaurant - Restaurant-Take Out Drive-In Theatre Restaurant-Coffee Shop --Drive-In Theatre Restaurant-Dinner House Restaurant-Conversion Golf Coursefcamp/Parh Goff Course RV Park Recreational Vehicle Park Health Spa w/Showers Health Club Hotel/Motel/Rooming House Dormitory Hospital Hotel Motels and Motor Hotels Low-Rise Retirement Building High-Rise Retirement Building Indoor Theatre Unattached Theatre Mortuary/Cemetery Cemetery and Buildings Funeral Home Nursery/Greenhouse Nurseries L�PROIFCrs+6DOLW 3a89agREV DATAIGTELLSr.W PD m Service Station/Auto Repair-Sales Supermarket Auto Dealership Supermarket Auto Repair _ —. _ Convenience Shopping Canter_ Auto Service Used Car Lot WarehousingfOpen Storage -- '-' Combined SS and Restanrratx Warehouse-Single Tenant__ _ Motorcycle/Small Vehicle Warehouse-Multi Tenant Auto Service Station Steel Building - - -- - — Mini Waehouse .. Shopping Center Industrial Park Airports&Buildings- - Recreational Vehicle Storage Marina Track Terminal Neighborhood Shopping Center Community Shopping Center - - Industry/Basic Commercial -- - -. Chemical Tank/BulkStorage- StorelFinancial Institution Food Processing Plant Financial Building - ---- ------ - ----- - ColdStoragePlant - Convenience Market __ Factory _. Department Store Light IndustrialSingle Tenant-- — - Discount Store --Light Industrial-Multiple Tenant- - Unattached Single Store Research&Development Strip Stow Water or Mutual Company Parcel of Minimal or no Value UnaBoceted Categories Subsurface Parcels Parking Lot Conversion Composite Property . . Paved Parking Lot Public Utility Recreation Oil Mineral Rights Equipment List of Tax Categories in Each Residential Billing Category Single Family Residence One Residence Vacant Land Conversion Rural Multi Family Residence Two or Mom Residences Mobile Home Duplex Only Triplex Only 4 Units Only Apartments Only Mixed Development Mobile Home Park Miscellaneous Improvements Common Area Parcel Six Unknown Categories Note:The Industry/Bade Commercial category consists of parcels that would be considered]Industrial based on the tax category scale,but are considered either Industrial or Basic Commercial based on whether they are currently blued w Industrial or Basic Commercial. The bmkdown between the two categories is derived from the ratio of the square feel of Improved space in the two categories. The Industrial equine feet comes from the industrial permits and the taud square feet Is derived from the tax data base. The real is considered Basic CommerdeL -- LIPROIECISYSDOLMxa6matEVDxT�1CAlFlB•f.V/Pa oem en�eeensiuoaaumeeocws VIVO / r • / t • r / j xipueddy < carO��O Memo To: Jim Wybenga Memo From: Toby Weissert Date: October 18, 1996 Subject: Estimates of Flow and Strength for Single Family Residences Attached is a set of calculations to come up with weighted average flow and strength values for a single family residence wastewater discharge. The starting point of the calculations is the 'Determination of Domestic Waste Characteristics' report done by CSDOC. From the report values for flow, BOD and TSS,from six county neighborhoods, a flow weighting was performed to establish an estimate of average flow, BOD and TSS values fora single family residence. The weighting was necessary, because in the report, the number of residences in each income level, is not representative of the actual number of residences, in each income level, in the county. Please review my assumptions and calculations,and comment on them. If you have any questions, please do not hesitate to contact me. �wnaEcrscsooa.xeemcrnnEsrow+n,ea xao 1 JOIiN CAROLLO ENGINEERS Title W4*AV4-4 W.O.No. v e Date BY 1 I J Page of KGSi�ia� QDu na^yet �S ✓� (! (� 1 I• I.0 J/P/I r*tlYlirw�ia-. oT /�'^'^�6Tic 1.�F5�'c �'q'��'4:SE.t,S •• �a rl.�o�-�' �,.b..Q�•�il mat GS�DG� - 15/ i s V6". A�- 6DU c�✓� t lJ �1� •L a5C Lt a l sss I 4 al . dwcto A, sif<s 3 �iG it. / de G a�4a�iJa:G� f12,DOD `. . 5 . Bn0 = 7� / 1S4 ✓tom _r.. Title RC3iC1a4LA.Oi /O.' i JOHN CAROLLO ENGINEERS ` W.O.No. ' n Date -�w7J yG By -( - Page 1;?- of Vo.•^-p 79r lour-�//. inGu.••e haw AV n--d 7-ss a van "PA" 97,000 13/ #.A 6. 000 6 . �vGo� X�o�fVD� a•-.� 7.� MSi���1.'�A-qL -� a146 .ISX Hal c 255�p� 6. 6DO Isx --).e94- .7 ,taay 4- . Isx say = z'17 c. TSS )sk 391Y 4- .7X/6( f .15X 383= 24�"'9/z ...oriel i.•.ass b./a...ce -/A- P anA I veL.ej ov. +ho , tro #--A .A e! a av P G '4 A'e 4 DVUP 16!' j I.oDol 260 2a-) •y .6313 = 20s /p TS5 ay 2 X .8850 119 ��P FAHR COMMITTEE r ng Dew mad.of or. _I 1 07115198 07/29/98 AGENDA REPORT emNamM I�/ �ne 8 Orange County Sanitation District FROM: Mike Peterman, Director of Human Resources Originator: Tom Woodruff, General Counsel SUBJECT: SEPARATION INCENTIVE AGREEMENTS (FAHR98-59) GENERAL MANAGER'S RECOMMENDATION Approve Resolution No. OCSD-98-XX authorizing the General Manager to enter into separation agreements with District employees in specified circumstances. SUMMARY Over the past few years, the District has been engaged in a staff reduction program. In each of the past four years, the Directors have authorized an Early Retirement Incentive Program and 32 employees have retired. There are other employees who may not be eligible to retire, but who might be encouraged to leave through a limited cash incentive. This resolution authorizes the General Manager to make such an offer in cases where the position of the separating employee may be deleted and savings will exceed the amount of the incentive. PROJECT/CONTRACT COST SUMMARY This program will result in cost reductions. BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ® This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None. H:".au nu+ac,n.vaa MRMulffAHannw R, . r Page 1 ALTERNATIVES 1. Do not approve the program and reduce staff through other means. 2. Do not approve the program and increase staffing authorizations CEQA FINDINGS None. ATTACHMENTS 1. Draft Resolution No. OCSD-98-XX. HM ,ftfnUlP mFAHRIANRp$JYWMR"8 R., a Paget Y RESOLUTION NO. OCSD 98- AUTHORIZING THE GENERAL MANAGER TO ENTER INTO SEPARATION AGREEMENTS WITH DISTRICT EMPLOYEES IN SPECIFIED CIRCUMSTANCES A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE GENERAL MANAGER TO ENTER INTO SEPARATION AGREEMENTS WITH DISTRICT EMPLOYEES IN SPECIFIED CIRCUMSTANCES WHEREAS, the Board of Directors of Orange County Sanitation District has previously directed that the size of District's staff be significantly reduced; and WHEREAS, the Board of Directors of said District has previously adopted Resolutions and Ordinances approving Early Retirement Incentive Programs for all eligible District's employees as authorized by Government Code Section 31641.04; and WHEREAS, the General Manager has reported that the District has saved, or will save, $4.4 million through Fiscal Year 1999 as a result of the Early Retirement Incentive Programs previously adopted, and WHEREAS, many employees do not meet the standard of ten years of service and 50 years of age in order to be eligible for the Early Retirement Incentive Programs, and WHEREAS, District's management has reported to the Board the desirability of deleting some positions whose incumbents are not eligible for Early Retirement Incentive Programs in order to take advantage of changes in the manner of performing District's services and the opportunity to realize savings of money and other economic benefits that would flow to the District by the elimination of such positions; and WHEREAS, such employees may be encouraged to leave District's employment by means of limited economic incentives. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: 2Ma 0122 1 Section 1: The General Manager is authorized to enter into Separation Incentive Agreements with District employees, regardless of eligibility for Early Retirement Incentive Programs pursuant to Government Code Section 31641.04, in cases where the separating employee's position may be deleted and the savings to the District will exceed the cost of the separation incentive. Section 2: The Separation Incentive Agreements may provide for a one-time lump sum payment not to exceed $50,000 and shall include a waiver of all contractual rights to employment, express or implied, and a settlement of any employment related claims, known or unknown to employee, against the District. Section 3: The authority delegated by this Resolution shall expire on 19_, or until the number of District's positions has been reduced to whichever occurs first. PASSED AND ADOPTED at a Regular Meeting held_, 1998. Chair ATTEST: Board Secretary Diaz�e.l , Eivaoj!IE) `i)iaisia uoiieiiupS Aiuno) a8uEao 66 -9661 Jail ID-7s!d IN 3 RIVIS 13110d 1 N 3 WISIAN I �\nM3 3N1 9Ni ('1 dY •PL ZT b J� � a " ti ��tlllHtlS ��N l af� _ f: a b b b 1� FMB 1 , ORANGE COUNTY SANITATION DISTRICT m INVESTMENT POLICY �. STATEMENT Reviewed and Approved by Finance, Administration and Human Resources Committee on July 15, 1998 Adopted by Board of Directors on July 29, 1998 �Juu 0 AAA o0 MUNICIPAL TREASURERS'ASSOCIATION UNITED STATES A CANADA December 10, 1996 Gary G. Streed Director of Finance/Treasurer County Sanitation Districts of Orange County, California P.O. Box 8127 Fountain Valley, CA 92728-8127 Dear Mr. Streed: The Municipal Treasurers'Association is pleased to present the County Sanitation Districts of Orange County, California with the Association's Investment Policy Certification. Members of the Association's Investment Policy Certification Committee congratulate the County Sanitation Districts of Orange County, California for its success in developing a comprehensive written investment pollcywhich meets the criteria set forth by the Association's Investment Policy Certification Program. Our review of your investment policy is limited to the documentation submitted. The Certification is not a guarantee against loss due to economic and market conditions or human behavior. The Association's Investment Policy Certification Committee Chairman, Rod Rich, .. will be presenting the Investment Policy Certification plaque to all recipients at the Association's 1997 Annual Conference in Sacramento,California. The County Sanitation Districts will be recognized during the Awards Luncheon on Wednesday, August 20. We hope that you will be able to attend this luncheon, however, if your schedule does not permit you to attend, please call me at (202) 833-1017. .. The County Sanitation Districts of Orange County, California is to be commended for enhancing its fiscal responsibility in the management of fiscal funds. Sincerely, ® ESc��ve (rector 1229 Nineteenth Street,N.W.Washington,DC 20036 PHONE 202-833-1017 FAX 202-833-0375 r TABLE OF CONTENTS ctio 10PLC Pacle 1.0 Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.O Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3.0 Standard of Prudence . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4.0 Investment Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5.0 Delegation of Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 6.0 Ethics and Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . 4 7.0 Authorized Financial Dealers and Institutions . . . . . . . . . 4 8.0 Authorized and Suitable Investments . . . . . . . . . . . . . . . . 5 9.0 Collateral ization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 10.0 Safekeeping and Custody . . . . . . . . . . . . . . . . . . . . . . . . 9 11.0 Diversification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 _ 12.0 Maximum Maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 13.0 Internal Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 14.0 Performance Objectives and Benchmarks . . . . . . . . . . . . 11 15.0 Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 16.0 Investment Policy Adoption and Revision . . . . . . . . . . . . 13 — Appel3dix A. Summary of Investment Authorization _ B. Board Resolution No. OCSD-98-XX, Authorizing the District's Treasurer to Invest and/or Reinvest District Funds, and Adopting Investment Policy and Performance Benchmarks C. Sections of the California Government Code Pertinent to Investing Public Funds D. Glossary of Investment Terms ORANGE COUNTY SANITATION DISTRICT INVESTMENT POLICY STATEMENT 1.0 Polic It is the policy of the Orange County Sanitation District (OCSD) to invest public funds in a manner which ensures the safety and preservation of capital while meeting reasonably anticipated operating expenditure needs, achieving a reasonable rate of return and conforming to all state and local statutes governing the investment of public funds. 1.1. This Investment Policy is set forth by OCSD for the following purposes: 1.1.1. To establish a clear understanding for the Board of Directors, OCSD management, responsible employees and third parties of the objectives, policies and guidelines for the investment of the OCSD's idle and surplus funds. 1.1.2. To offer guidance to investment staff and any external investment advisors on the investment of OCSD funds (see Appendix "A"). 1.1.3. To establish a basis for evaluating investment results. 1.2. OCSD establishes investment policies which meet its current investment goals. OCSD shall review this policy annually, and may change its policies as its investment objectives change. 2.0 9cope This Investment Policy applies to all financial assets of OCSD, except for the funds of the Deferred Compensation Plan, which are managed externally; proceeds of OCSD's capital projects financing program, which are invested in accordance with provisions of their specific bond indentures; and such funds excluded by law or other Board-approved covenant or agreement. These funds are accounted for by OCSD as represented in OCSD's Comprehensive Annual Financial Report and include: General Fund _ Special Reserve Funds Debt Service Funds (unless prohibited by bond indentures) Capital Project Funds Enterprise Funds Internal Service Funds Trust and Agency Funds ,. Any new Fund established by the Board of Directors (unless exempted by the Board) Page 1 of 13 3.0 Standard of Prudence: 3.1 The standard of prudence to be used by OCSD internal staff shall be the "prudent investor"standard defined below in Section 3.1.1, and shall be applied in the context of managing an overall portfolio. Investment staff acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations a from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. s 3.1.1 The Prudent Investor Standard: Investments shall be made eh judgment and care—under circumstances then prevailing— which persons of prudence, discretion and intelligence exercise in the .. management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. 4.0 Investment Objectives: The primary objectives, in priority order, of OCSD's investment activities shall be: 4.1 Safety: The safety and preservation of principal is the foremost objective of the investment program of OCSD. Investments shall be selected in a manner that seeks to ensure the preservation of capital in OCSD's overall portfolio. This will be accomplished through a program of diversification, more fully described in Section 11.0, and maturity limitations, more fully described in Section 12.0, in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 4.2 Liquidity: The investment program will be administered in a manner that will ensure that sufficient funds are available for OCSD to meet its reasonably anticipated operating expenditure needs. 4.3 Return on Investments: The OCSD investment portfolio will be structured and managed with the objective of achieving a rate of return throughout budgetary and economic cycles, commensurate with legal, safety, and liquidity considerations. r. Page 2 of 13 5.0 Delegation of Authority: 5.1 Authority to manage OCSD's investment program is derived from the California Government Code Sections 53600 et seq. and Sections 53635 et seq. The Board of Directors hereby delegates management responsibility for the OCSD investment program to it's Director of Finance / Treasurer, who shall establish written procedures for the operation of the investment program, consistent with this Policy. The Financial Manager/Assistant Treasurer shall be responsible for day-today administration, monitoring, and the development of written administrative procedures for the operation of the investment program, consistent with this Policy. No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Treasurer. The Treasurer shall be responsible for all transactions undertaken by OCSD internal staff, and shall r establish a system of controls to regulate the activities of internal staff and external investment advisors engaged in accordance with Section 5.3. .- 5.2 The administrative procedures for the operation of OCSD's investment program will provide for, but not be limited to, the following: 5.2.1 Formats for monthly and quarterly reports to the Finance, Administration and Human Resources Committee, and the Board of Directors. 5.2.2 Compliance with generally accepted accounting principles of the Government Accounting Standards Board. 5.2.3 Establishment of benchmarks for performance measurement. 5.2.4 Establishment of a system of written internal controls. 5.2.5 Establishment of written procedures for competitive bids and offerings of securities that may be purchased or sold by internal OCSD staff. 5.2.6 Establishment of a Desk Procedures Manual for treasury operations and management. 5.3 The Board of Directors of OCSD may, in its discretion, engage the services of one or more registered investment advisors to assist in the management of OCSD's investment portfolio in a manner consistent with OCSD's objectives. Such external investment advisors, which shall be selected through a competitive process, shall be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such advisors must be registered under the Investment Advisers Act of 1940, or be exempt from such registration. Page 3 of 13 'm 6,0 Ethics and Conflicts of Interest: 6.1 Officers and employees of OCSD involved in the investment process shall refrain from personal business activities that could conflict with proper execution of OCSD's investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the General Manager any material financial interests in financial institutions that conduct business within OCSD's boundaries, and they shall further disclose any large personal financial/investment positions, the performance of which could be related to the performance of positions in OCSD's portfolio. 7.0 Authorized Financial Dealers and Institutions: 7.1 For investment transactions conducted by OCSD internal staff, the Treasurer will maintain a list of financial institutions authorized to provide investment services to OCSD, including 'primary" or regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule), and Federal or State of California chartered banks. No public deposit shall be made except in a qualified public depository as established by State law. All financial institutions which desire to become qualified bidders for investment transactions with OCSD must supply the following for evaluation by the Treasurer: 7.1.1. Audited financial statements for the institution's three (3) most recent fiscal years. .. 7.1.2. A statement, in the format prescribed by the Government Finance Officers Association (GFOA), certifying that the institution has reviewed OCSD's Investment Policy and that all securities offered to the Districts shall comply fully and in every instance with all provisions of the California Government Code and with this Investment Policy. r 7.1.3. A statement describing the regulatory status of the dealer, and the background and expertise of the dealer's representatives. .r Selection of financial institutions, broker/dealers, and banks authorized to engage in transactions with OCSD shall be made through a competitive process. An annual review of the financial condition of qualified institutions will be conducted by the Treasurer. Page 4 of 13 7.2 Selection of broker/dealers used by external investment advisors retained by OCSD, shall be in compliance with contract provisions between OCSD and any external investment advisors, and shall be in substantially the following form: ® Use of Securities Brokers: Neither the Investment Advisor nor any parent, subsidiary or related firm shall act as a securities broker with respect to any purchases or sales of securities which may be made on behalf of OCSD, provided that this limitation shall not prevent the Investment Advisor from utilizing the services of a securities broker which is a parent, subsidiary or related firm, provided such broker effects transactions on a "cost only" or "nonprofit" basis to itself and provides competitive execution. The Investment Advisor shall provide the Districts with a list of suitable independent brokerage firms (including names and addresses) meeting the requirements of Government Code Section 53601.5, and, unless otherwise directed by OCSD, the Investment Advisor may utilize the service of any of such independent securities brokerage firms it deems appropriate to the extent that such fines are competitive with respect to price of services and execution. -- 8.0 Authorized and Suitable Investments: All investments shall be made in accordance with the California Government Code including Sections 16429.1 at seq., 53600 at seq., and 53684, and as described within this e Investment Policy. Permitted investments under this Policy shall include: 8.1 Securities issued by the US Government or an agency of the US Government and fully guaranteed as to payment by the US Government or agency of the US Government. Investment in mortgage-backed bonds and CMOs is not governed by this Section 8.1, even if such bonds are issued by .. agencies of the US Government. See Section 8.2 for conditions of purchase of mortgage-backed securities. See Section 8.11 for conditions of purchase of CMOs. 8.2 Mortgage-backed securities issued by an agency of the US Government, which are backed by pools of mortgages guaranteed by the full faith and credit of the U.S. Government, or an agency thereof. Selection of mortgage derivatives, which include interest-only payments (IOs) and principal-only payments (POs); inverse floaters, and RE-REMICs (Real Estate Mortgage Investment Conduits), is hereby prohibited. 8.3 Commercial paper of"prime" quality and rated "P1" by Moody's Investor Services (Moody's), and rated "Al" by Standard & Poor's Corporation (S&P), and issued by a domestic corporation organized and operating in the United States with assets in excess of$500 million and having a rating of"A" or better on its long-term debt as provided by Moody's or S&P. Purchases of eligible commercial paper may not exceed 180 days to maturity from the Page 5 of 13 ® date of purchase. Purchases of commercial paper shall not exceed 15% of the market value of the portfolio, except that a maximum of 30% of the market value of the portfolio may be invested in commercial paper, so long as the average maturity of all commercial paper in the portfolio does not exceed 31 days. No more than 5% of the market value of the portfolio, or 10% of the issuers outstanding paper, may be invested in commercial paper issued by any one (1) eligible corporation. 8A Banker's acceptances issued by institutions, the short-term obligations of _ which are rated a minimum of "P1" by Moody's, or "Al" by S&P provided that: (a) the acceptance is eligible for purchase by the Federal Reserve System; (b) the maturity does not exceed 270 days; (c) no more than 40% of the total portfolio may be invested in banker's acceptances; and (d) no more than 30% of the total portfolio may be invested in the bankers acceptances of any one (1) commercial bank. 8.5 Medium term (or corporate) notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, the long-term obligations of which are rated at least"AW by Moody's, or"A-" by S&P. No more than 30% of the portfolio may be invested in eligible medium term or corporate notes. 8.6 Shares of mutual funds investing in securities permitted under this policy and under California Government Code Section 53601. Such funds must either: (1) attain the highest ranking, or the highest letter and numerical rating, provided by not less than two of the three largest nationally recognized rating services; or (2) have an investment Advisor registered with the Securities and Exchange Commission with not less than five (5) years of experience investing in the securities and obligations authorized under this Policy and under California Government Code Section 53601, and with assets under management in excess of$500 million. The purchase price of such shares may not include any commissions. Investment in mutual funds may not exceed 15% of the total portfolio. .. 8.7 Certificates of deposit: 8.7.1 Secured (collateralized)time deposits issued by a nationally or state-chartered bank or state or federal savings and loan association, as defined by Section 5102 of the California Financial Code, ajad having a net operating profit in the two (2) most recently completed fiscal years. Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500 at seq., and Chapter 4.5, Savings and Loan Association and Credit Union Deposit Law, Section 16600 et seq., of the California Government Code. 8.7.2 Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank or state of federal savings and loan Page 6 of 13 association, as defined by Section 5102 of the California Financial Code, &1d which shall have a rating of "A" or better on its long-term debt as provided by Moody's or S&P; or which shall have the following minimum short-term ratings by at least two (2) rating services: "131" for deposits by Moody's, "Al" for deposits by S&P, or comparably rated by a nationally recognized rating agency which rates such securities; or as otherwise approved by the District's Board of Directors. 8.8 Taxable or tax-exempt municipal bonds issued by the State of California or its subdivisions. Such securities must be rated"A3" or higher by Moody's, or "A-" or higher by S&P; or as otherwise approved by the Districts' Board of Directors. 8.9 The State of California Local Agency Investment Fund (LAIF). 8.10 The Orange County Investment Pool. 8.11 Collateralized mortgage obligations (CMOs) issued by agencies of the US Government which are backed by pools of mortgages guaranteed by the full faith and credit of the U.S. Government, or an agency thereof, and asset- backed securities rated "Aaa" by Moody's and "AAA° by S&P. Selection of mortgage derivatives, which include interest-only payments (IOs) and principal-only payments (POs); inverse floaters, and RE-REMICS (Real Estate Mortgage Investment Conduits), is hereby prohibited. Securities eligible for purchase under this Section 8.11 shall be issued by an issuer .d having a rating on its unsecured long-term debt of"A" or higher. Combined purchases of mortgage-backed securities, CMOs and asset-backed securities as authorized under this Section 8.11, may not exceed 20% of the total Long-Term Operating Monies portfolio. 8.12 Repurchase agreements provided that: 8.12.1 All repurchase agreements shall be collateralized with securities eligible for purchase under this Policy, and are maintained at a level of at least 102% of the market value of the repurchase agreements. Collateral securities shall be delivered to a third-party safekeeping agent or to OCSD's custodian bank. 8.12.2 All repurchase agreements shall be collateralized with securities eligible for purchase under this Policy. In order to anticipate market changes and to provide a level of security for all repurchase agreement transactions, collateralization shall be maintained at a level of at least 102% of market value of the principal and accrued interest, and shall be adjusted no less than weekly. ® Page 7 of 13 8.13 Reverse repurchase agreements provided that: 8.13.1 No more than five percent (5%) of OCSD's portfolio shall be invested in reverse repurchase agreements, and there shall be no long-term reverse repurchase agreements unless otherwise authorized by the Districts' Board of Directors. 8.13.2 The maximum maturity of reverse repurchase agreements shall be ninety (90) days. 8.13.3 Reverse repurchase agreements shall mature on the exact date of a known cash flow which will be unconditionally available to repay the maturing reverse repurchase. 8.13.4 Proceeds of reverse repurchase agreements shall be used solely to supplement portfolio income or to provide portfolio liquidity, and shall not be used to speculate on market movements. 8.13.5 All reverse repurchase agreements must be the subject of a Master Repurchase Agreement between OCSD and the provider of the ® reverse repurchase agreement. The Master Repurchase Agreement shall be substantially in the form developed by the Public Securities Association. 8.14 Sales of OCSD-owned securities in the secondary market may incur losses in order to improve the risk or return characteristics of the portfolio, to prevent anticipated further erosion of principal, or when trading for securities that result in an expected net economic gain to OCSD. 8.15 If securities owned by the OCSD are downgraded by either Moody's or S&P to a level below the quality required by this Investment Policy, it shall be OCSD's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a decision is made to retain the downgraded securities in the portfolio, their presence in the portfolio will be monitored and reported monthly to the OCSD General Manager, the Finance, Administration and Human Resources Committee and Board of Directors. 9.0 Collateralization: Generally, the value to secure deposits under this Policy shall comply with Section 53652 of the California Government Code. Collateralization will be required for secured time deposits, as more fully described in Section 8.7.1; and repurchase agreements, as more fully described in Section 8.12.1. Collateral will always be held by an independent third- party, as more fully described in Section 10.1. The right of collateral substitution is granted. Page 8 of 13 10.0 Safekeeoinn and Custody: 10.1 All securities transactions, including collateral for repurchase agreements, entered into by, or on behalf of OCSD, shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by OCSD's ,.y third-party custodian bank, which shall be selected through a competitive process, or that agent's representative, or in the agent's account at the Federal Reserve Bank, and evidenced by safekeeping receipts. 11.0 Diversification: o. OCSD will diversify its investments by security type, issuer, and financial institution in accordance with the following, 11.1 There is no limit on investment in securities issued by or guaranteed by the full faith and credit of the U.S. government. 11.2 No more than 20% of the portfolio may be invested in securities of a single agency of the U.S. government, which does not provide the full faith and credit of the U.S. government. 11.3 No more than 5% of the portfolio may be invested in securities of any one issuer, other than the U.S. government or its agencies. 11.4 No individual holding shall constitute more than 5% of the total debt outstanding of any issuer. 11.5 No more than 40% of the portfolio may be invested in banker's acceptances. 11.6 No more than 15% of the portfolio may be invested in commercial paper, except that 30% of the portfolio may be so invested so long as the average maturity of all commercial paper in the portfolio does not exceed 31 days. 11.7 No more than 30% of the portfolio may be invested in medium-term (corporate) notes. 11.8 No more than 15% of the portfolio may be invested in mutual funds. 11.9 No more than 30% of the portfolio may be invested in negotiable certificates of deposit. 11.10 No more than 10% of the portfolio may be invested in eligible municipal bonds. Page 9 of 13 11.11 No more than 20% of the Long Term Operating Monies portfolio may be invested in a combination of mortgage-backed securities, CMOs and asset- backed securities. Mortgage-backed securities, CMOs and asset-backed securities may only be purchased by the Districts' external money managers with prior Board approval, and may not be purchased by the District's staff. 11.12 No more than the lesser of 15% of the portfolio or the statutory maximum may be invested in LAIF. ® 11.13 No more than 15% of the portfolio may be invested in the Orange County Investment Pool, 11.14 No more than 20% of the portfolio may be invested in repurchase agreements. 11.15 No more than 5% of the portfolio may be invested in reverse repurchase agreements. 12.0 Maximum Maturities: To the extent possible, OCSD will attempt to match its investments with reasonably anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall designate, from time-to-time, the amounts to be allocated to the investment portfolio. OCSD monies invested in accordance with this Policy are divided into two (2) categories: 12.1 Liquid Operating Monies. Funds needed for current operating and capital expenditures are known as Liquid Operating Monies. 12.1.1 The maximum final stated maturity of individual securities in the Liquid Operating Monies account portfolio shall be one (1) year from the date of purchase. 12.1.2 The average duration of the Liquid Operating Monies account portfolio shall be recommended by the Treasurer based on the Districts' cash flow requirements, but may never exceed 180 days, and shall be reviewed and approved by the Finance, Administration and Human Resources Committee, and shall be updated as needed. 12.2 Long Tenn Operating Monies. Funds needed for longer term purposes are known as the Long Term Operating Monies. 12.2.1 The maximum final stated maturity of individual securities in the Long Term Operating Monies account portfolio shall be five (5) years from the dale of purchase, unless otherwise authorized by the Districts' Board of Directors. Page 10 of 12 12.2.2 The duration of the Long Term Operating Monies account portfolio shall be recommended by the Treasurer based on the Districts' five- year cash flow forecast, shall be reviewed and approved by the Finance, Administration and Human Services Committee, and shall be updated as needed. .d 12.2.3 The duration of the Long Term Operating Monies account portfolio shall never exceed 120% of the duration as established in accordance with Section 12.2.2. 12.2.4 The duration of the Long Term Operating Monies account portfolio shall never be less than 80% of the duration as established in accordance with Section 12.2.2 13.0 Internal Controls: 13,1 The Treasurer shall establish an annual process of independent review by an external auditor. This review will provide internal control by assuring compliance with policies and procedures. 14.0 Performance Objectives and Benchmarks: 14.1 Overall objective. The investment portfolio of OCSD shall be designed with the overall objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and reasonably anticipated cash flow needs. 14.2 The Liquid Operating Monies. The investment performance objective for the Liquid Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index approved by the Finance, Administration and Human Resources Committee, and by the District's Board of Directors, when the duration of the portfolio is established. -d This market index is more fully described in Board Resolution No. OCSD-98-XX (see Appendix "B"). 14.3 The Long Term Operating Monies. The investment performance objective for the Long Term Operating Monies shall be to earn a total rate of return over a market cycle which exceeds the return on a market index selected by the Finance, Administration and Human Resources Committee and approved by the Districts' Board of Directors, when the duration of the portfolio is established. This market index is more fully described in Board Resolution No. OCSD-98-XX (See Appendix "B"). Page 11 of 12 15.0 a ort'n : 15.1 Monthly and quarterly investment reports shall be submitted by the Treasurer to the Finance, Administration and Human Resources Committee which shall forward the reports to the District's Board of Directors. The monthly reports shall be submitted to the Finance, Administration and Human Resources Committee within 30 days of the end of the month. These reports shall disclose, at a minimum, the following information about the risk characteristics of OCSD's portfolio: 15.1.1 Cost and accurate and complete market value of the portfolio. 15.1.2 Modified duration of the portfolio compared to Benchmark. 15.1.3 Dollar change in value of the portfolio for a one-percent (1%) change in interest rates. 15.1.4 Percent of portfolio invested in reverse repurchase agreements, and a schedule which matches the maturity of such reverse repurchase agreements with the cash flows which are available to repay them at maturity. 15.1.5 For the Liquid Operating Monies account only, the percent of portfolio maturing within 90 days. 15.1.6 Average portfolio credit quality. 15.1.7 Percent of portfolio with credit ratings below "A" by any rating ., agency, and a description of such securities. 15.1.8 State that all investments are in compliance with this policy and the California Government Code, or provide a listing of any transactions or holdings which do not comply with this policy or with the California Government Code. 15.1.9 Time-weighted total rate of return for the portfolio for the prior three months, twelve months, year to date, and since inception compared to the Benchmark returns for the same periods. 15.1.10 State that sufficient funds are available for OCSD to meet its operating expenditure requirements for the next six months, or if not, state the reasons for the shortfall. Page 12 of 13 15.2 OCSD's Treasurer shall meet quarterly with the Finance, Administration and Human Resources Committee to review investment performance, proposed .. strategies and compliance with this investment policy. External investment advisors may be required to attend said meetings at the discretion of the Chairman of the Finance, Administration and Human Resources Committee. m 16.0 Investment Policy Adoption and Revision: 16.1 The Investment Policy of OCSD shall be reviewed by the Finance, Administration and Human Resources Committee and shall be adopted by .d resolution of the Board of Directors of OCSD. The Policy shall be reviewed on an annual basis by the Finance, Administration and Human Resources Committee, which shall recommend revisions, as appropriate, to the Board of Directors. Any modifications made thereto shall be approved by the Board of Directors. ` 16.2 The Finance, Administration and Human Resources Committee shall serve as the oversight committee for the District's Investment program and shall adopt guidelines for the ongoing review of duration, quality and liquidity of the District's portfolio. w ® Page 13 of 13 ® J APPENDIX "A" I u JII �.I J u W J ii �d ' i u � I 1.d V.1 J J APPENDIX "A" SUMMARY OF INVESTMENT AUTHORIZATION INTERNAL AND EXTERNAL MANAGERS SHORT TERM OPERATING FUND INVESTMENT INTERNAL EXTERNAL U.S. Treasuries OK OK Federal Agencies Fixed coupon, fixed mat. OK Mortgage-backed NO NO Commercial paper OK OK Banker's Accept. OK OK Medium Term Notes Fixed coupon, fixed mat.' OK Mutual Funds Money Market Only" Money Market Only Negotiable CDs Fixed coupon, fixed mat.' OK Municipal Bonds OK' NO LAIF OK NO OCIP OK NO CMOs NO NO Asset-backed NO NO Repurchase Agree. OK OK Reverse Re os OK' OK LONG TERM OPERATING PORTFOLIO INVESTMENT INTERNAL EXTERNAL U.S. Treasuries OK OK Federal Agencies Fixed coupon, fixed mat. OK Mortgage-backed NO OK Mutual Funds Money Market Only" OK Negotiable CDs Fixed coupon, fixed mat.` OK Municipal Bonds OK' OK LAIF OK NO OCIP OK NO CMOs NO With Board Approval Asset-backed NO With Board Approval Repurchase Agree. OK OK Reverse Re os OK` OK 'With prior approval of the Finance,Administration and Human Resources Committee. "Using financial institutions approved by the Finance,Administration and Human Resources Committee. �e�wv..m�krtuiouu"Evrrvesr.aveaw.�s av r r y y APPENDIX r �jj ir � i .J y � � I C r r Y� y I J r r r RESOLUTION NO. OCSD-98-XX ti AUTHORIZING THE DISTRICTS TREASURER TO INVEST AND/OR REINVEST DISTRICTS FUNDS, AND ADOPTING DISTRICTS INVESTMENT POLICY STATEMENT AND PERFORMANCE BENCHMARKS A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT, AUTHORIZING THE DISTRICTS TREASURER TO INVEST AND/OR REINVEST DISTRICTS FUNDS, AND ADOPTING DISTRICTS INVESTMENT POLICY STATEMENT AND .d PERFORMANCE BENCHMARKS .. ....... ... ... .d WHEREAS, on September24, 1997, the Board of Directors adopted Resolution No. 97-32, readopting the District's Investment Policy Statement, and establishing specific ti performance benchmarks and objectives, together with a schedule of frequency of investment performance reports; and, WHEREAS, pursuant to California Government Code Section 53607, the Board of Directors may delegate authority to invest and/or reinvest District's funds to the Treasurer for a one-year period; and, r WHEREAS, pursuant to California Government Code Section 53646, the District is required to review its Investment Policy annually and readopt its Policy at a public meeting, which Policy will establish specific performance benchmarks and objectives, and specific monitoring and reports. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That the authority of the Board of Directors to invest or reinvest District's surplus funds, or to sell or exchange securities so purchased, or to deposit for safekeeping the funds and investments of the Districts with depositories, as provided for in California Government Code Sections 53608 and 53630, is hereby delegated to the District's Treasurer for a one-year period commencing on the date this Resolution is adopted, as authorized by California Government Code Section 53607. Section 2: That the Board of Directors hereby adopt the Investment Policy Statement of the Orange County Sanitation District, as set forth in Exhibit"A,"attached hereto and incorporated herein by reference. Section 3: That the Board of Directors hereby adopt the following spec performance benchmarks for their two investment funds in accordance with Section 14.0 of the District's Investment Policy: LIQUID OPERATING MONIES: The Short-Term Operating Fund will be compared to the three month T-Bill rate, and the Callan Active Cash Flow Income Style Group. The Callan Active Cash Flow Income Style Group represents a peer group of managers who - operate with a maximum maturity of one year. LONG-TERM OPERATING MONIES: The Long-Tenn Operating Fund will be compared to the Merrill Lynch Government and Corporate One-to-Five Year Maturity Index and to the Callan Defensive Fixed Income Style Group. Section 4: That the Board of Directors hereby adopt a performance monitoring and reporting schedule, as required by Section 15.0 of the District's Investment Policy, which schedule is attached hereto as Exhibit"B," and incorporated herein by reference. PASSED AND ADOPTED at regular meeting held July 29, 1998. HAWZrA�Wl NCF VN ST.PLWJ STPOUMESODOC 1 I d 1 ( I I a I a t e ( I I [ a ( a EXHIBIT "B" COUNTY SANITATION DISTRICTS OF ORANGE COUNTY PERFORMANCE MONITORING & REPORTING FOR THE DISTRICTS' INVESTMENT PROGRAM POLICY REFERENCE PERFORMANCE CHARACTERISTIC REPORTING PARTY* PIMCO MELLON CALLAN 15.1.1 Cost and market value of the portfolio (monthly mark-to-market). M,Q M, Q Q 15.1.2 Modified duration of the portfolio compared to benchmark. M,Q Q 15.1.3 Dollar change In value of the portfolio for a 1% change In Interest rate. M, Q Q 15.1.4 Percent of portfolio Invested In reverse repurchase agreements,and a schedule which matches the maturity of such reverse repurchase agreements with the cash goers which are available to repay them at maturity. M,Q 15.1.5 For the Liquid Operating Monies account only,the percent of portfolio maturing within 90 days. M,Q Q 15.1.6 Average portfolio credit quality. M, Q Q 15.1.7 Percent of portfolio with credit ratings below A"by any rating agency,and a description of such securities. M,Q Q 15.1.8 Listing of any transactions or holdings which do not comply with this policy or with the California Government Code. M,Q 15.1.9 Time-weighted total rate ofretum for the portfolio for the prior three months,twelve months,year- to-date, and since Inception compared to the benchmark returns for the same periods. M,Q Q ADDL" Comparison of portfolio performance to market Index benchmark. - M. Q Q ADDL" Comparison of Manager's performance to peer group benchmark. Q ADDL" Monitoring of organizational and structural changes of Investment management firm. Q ADDL" Audit portfolios for compliance with Investment policy guidelines. Q 15.1.10 CSDOC will report it sufficient funds are available for it to meet operating expenditure requirements for the next six months,or if not,state the reasons for the shortfall. Notes •M=Monthly Q=Quarterly "ADDL=Monitoring of AddNonel Performance Characteristics w�wr munira+aceneEvrrvEsr c�rwortrtav cwr r r L r - 1 I r ( APPENDIX"C' r I i bI r ti 1 r J I. r J I ! r � r J r J Appendix"C" Sections of the California Government Code Pertinent to Investing Public Funds ` Introduction A requirement of Section 8, Authorized and Suitable Investments, of the Districts' Investment Policy Statement, is that all investments shall be made in accordance with the California Government Code, including Sections 16429.1 et seq., and 53600 et seq., and 53684. This appendix presents a copy of these sections for the reader's reference. § 16429.1. Creation of fund; investments; proceeds of bonds, etc.; distributions; report of investments. There is in the State Treasury the Local Agency Investment Fund, which fund is hereby created. Notwithstanding Section 13340, all money in the fund is hereby appropriated without regard to fiscal years to carry out the purpose of this section. The Controller shall maintain a separate account for each governmental unit having deposits in this fund. -. Notwithstanding any other provisions of law, a local governmental official, with the consent of the governing body of that agency, having money in its treasury not required for immediate .. needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment. Notwithstanding any other provisions of law, an officer of any nonprofit corporation whose membership is confined to public agencies or public officials,or an officer of a qualified quasi governmental agency, with the consent of the governing body of that agency, having money in its treasury not required for immediate needs, may remit the money to the Treasurer for deposit in the Local Agency Investment Fund for the purpose of investment. Notwithstanding any other provision of law or of this section, a local agency, with the approval of its governing body, may deposit in the Local Agency Investment Fund proceeds of the issuance of bonds, notes, certificates of participation, or other evidences of indebtedness of the agency pending expenditure of the proceeds for the authorized purpose of their issuance. In connection with these deposits of proceeds, the Local Agency Investment Fund is authorized to receive and disburse moneys, and to provide information, directly with or to an authorized officer of a trustee or fiscal agent engaged by the local agency, the Local Agency Investment Fund is authorized to hold investments in the name and for the account of that trustee or fiscal agent,and the Controller shall maintain a separate account for each deposit of proceeds. The local governmental unit,the nonprofit corporation,or the quasi-govemmental agency has the exclusive determination of the length of time its money will be on deposit with the Treasurer. —� The trustee or fiscal agent of the local governmental unit has the exclusive determination of the length of time proceeds from the issuance of bonds will be on deposit with the Treasurer. Page 1 of40 The Local Investment Advisory Board shall determine those quasi-governmental agencies which Ly qualify to participate in the Local Agency Investment Fund. The Treasurer may refuse to accept deposits into the fund if, in the judgment of the Treasurer, lr the deposit would adversely affect the state's portfolio. I The Treasurer may invest the money of the fund in securities prescribed in Section 16430. The `+ Treasurer may elect to have the money of the fund invested through the Surplus Money Investment Fund as provided in Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2. u Money in the fund shall be invested to achieve the objective of the fund which is to realize the maximum return consistent with safe and prudent treasury management. W All instruments of title of all investments of the fund shall remain in the Treasurer's vault or be held in safekeeping under control of the Treasurer in any federal reserve bank, or any branch thereof, or the Federal Home Loan Bank of San Francisco, with any trust company, or the trust department of any state or national bank. V Immediately at the conclusion of each calendar quarter, all interest earned and other increment derived from investments shall be distributed by the Controller to the contributing governmental L units or trustees or fiscal agents,nonprofit corporations,and quasi governmental agencies in amounts directly proportionate to the respective amounts deposited in the Local Agency Investment Fund and the length of time the amounts remained therein. An U amount equal to the reasonable costs incurred in carrying out the provisions of this section,not to exceed a maximum of one I half of 1 percent of the earnings of this fund, shall be deducted from the earnings prior to distribution. The amount of this deduction shall be credited as reimbursements to the state agencies having incurred costs in carrying out the provisions of this section. id The Treasurer shall prepare for distribution a monthly report of investments made during the preceding month. u As used in this section, "local agency," "local governmental unit," and "local governmental official" includes a campus or other unit and an official, respectively, of the California State University who deposits moneys in funds described in Sections 89721, 89722, and 89725 of the Education Code. § 16429.2. Local investment advisory board V There is created the Local Investment Advisory Board consisting of five members. The chairman shall be the State Treasurer or his or her designated representative. Two members who are qualified by training and experience in the field of investment or finance, shall be appointed by the State Treasurer. Two members who are treasurers, finance or fiscal officers or business managers, employed by any county, city or local district or municipal corporation of this state, V shall be appointed by the Treasurer. V' Page 2 of 40 LI .., The term of office of each appointed member of the board is two years, but each appointed member serves at the pleasure of the appointing authority. A vacancy in the appointed membership,occurring other than by expiration of term,shall be filled in the same manner as the original appointment,but for the unexpired terns only. Members of the board who are not state officers or employees shall not receive a salary, but shall d. be entitled to a per diem allowance of fifty dollars($50) for each day's attendance at a meeting of the board, not to exceed three hundred dollars ($300) in any month. All members shall be entitled to reimbursement for expenses incurred in the performance of their duties under this part,including travel and other necessary expenses. The board's primary purpose shall be to advise and assist the State Treasurer in formulating the investment and reinvestment of moneys in the Local Agency Investment Fund, and the acquisition,retention, management, and disposition of investments of the fund. The board, from time to time, shall review those policies and advise therein as it considers necessary or desirable. The board shall advise the State Treasurer in the management of the fund and consult the State Treasurer on any matter relating to the investment and reinvestment of moneys in the fund. " § 16429.3.Deposits; prohibited transfers and loans;impoundment or seizure .d Moneys placed with the Treasurer for deposit in the Local Agency Investment Fund by cities, counties, special districts,nonprofit corporations, or qualified quasi governmental agencies shall not be subject to either of the following: .. (a)Transfer or loan pursuant to Sections 16310, 16312,or 16313. r (b) Impoundment or seizure by any state official or state agency. § 53600. Local agency r As used in this article, "local agency" means county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools,or any public or municipal corporation. § 53600.3. Prudent investor standard; investments on behalf of local agencies Except as provided in subdivision(a) of Section 27000.3, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including,but not limited to,the general economic conditions and the anticipated needs of the agency,that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law. r r . _ Page 3 of 40 § 53600.5. Objectives; managing public funds Id When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds,the primary objective of a trustee shall be to safeguard the principal of the funds under its u control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control. u § 53600.6. Legislative findings and declarations;solvency and creditworthiness The Legislature hereby finds that the solvency and creditworthiness of each individual local agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its !✓ political subdivisions, the Legislature hereby declares that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern. § 53601. Authorized investments; circumstances LI The legislative body of a local agency having money in a sinking fund of, or surplus money m, its treasury not required for the immediate needs of the local agency may invest any portion of L the money that it deems wise or expedient in those investments set forth below. A local agency purchasing or obtaining any securities prescribed in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of the securities to the local agency, u including those purchased for the agency by financial advisors, consultants, or managers using the agency's funds, by book entry, physical delivery, or by third party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for W book entry delivery. For purposes of this section "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. Where this section does not specify a limitation on the term or remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase or reverse repurchase agreement authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a y part of an investment program approved by the legislative body no less than three months prior to the investment: (a) Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department,board, agency, or authority of the local agency. 1J (b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 1� (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by V the state or by a department,board,agency,or authority of the state. L Page 4 of 40 U m (d) Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or �. authority of the local agency. (e) Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley Authority, or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or in guaranteed portions of Small Business Administration notes; or in obligations, participations, or other instruments of, or issued by, a federal agency or a United States government-sponsored enterprise. (f) Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise known as bankers acceptances. Purchases of bankers acceptances may not exceed 270 days maturity or 40 percent of the agency's surplus money that may be invested pursuant to this - section. However,no more than 30 percent of the agency's surplus funds may be invested in the bankers acceptances of any one commercial bank pursuant to this section. This subdivision does not preclude a municipal utility district from investing any surplus money in its treasury in any manner authorized by the Municipal Utility District Act (Division 6 (commencing with Section 11501)of the Public Utilities Code). (g) Commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody's Investors Service, Inc., or Standard and Poor's Corporation. Eligible paper is further limited to issuing corporations that are organized and operating within the United States and having total assets in excess of five hundred million dollars ($500,000,000) and having an "A" or higher rating for the issuer's debt, other than commercial paper, if any, as provided for by Moody's Investors Service, Inc., or Standard and Poor's Corporation. Purchases of eligible commercial paper may not exceed 180 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 15 percent of the agency's surplus money that may be ., invested pursuant to this section. An additional 15 percent, or a total of 30 percent of the agency's surplus money, may be invested pursuant to this subdivision. The additional 15 percent - may be so invested only if the dollar-weighted average maturity of the entire amount does not .., exceed 31 days. "Dollar-weighted average maturity" means the sum of the amount of each _ outstanding commercial paper investment multiplied by the number of days to maturity, divided by the total amount of outstanding commercial paper. (h)Negotiable certificates of deposits issued by a nationally or state- chartered bank or a state or federal association (as defined by Section 5102 of the Financial Code) or by a state-licensed .. branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the agency's surplus money which may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposits do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. (i)(1) Investments in repurchase agreements or reverse repurchase agreements of any securities authorized by this section, as long as the agreements are subject to this subdivision, including, .r the delivery requirements specified in this section. _. Page 5 of40 r V (2) Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed one year. The market value of I securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the W funds borrowed against those securities and the value shall be adjusted no less than quarterly. I , (3)Reverse repurchase agreements may be utilized only when either of the following conditions l-1 are met: (A) The security was owned or specifically committed to purchase, by the local agency, prior to M December 31, 1994,and was sold using a reverse repurchase agreement on December 31, 1994. (B) The security to be sold on reverse repurchase agreement has been owned and fully paid for W by the local agency for a minimum of 30 days prior to sale; the total of all reverse repurchase agreements on investments owned by the local agency not purchased or committed to purchase, Ir prior to December 31, 1994, does not exceed 20 percent of the base value of the portfolio; and the agreement does not exceed a term of 92 days,unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement and the final maturity date of the same security. (4) After December 31, 1994, a reverse repurchase agreement may not be entered into with securities not sold on a reverse repurchase agreement and purchased, or committed to purchase, prior to that date,as a means of financing or paying for the security sold on a reverse repurchase agreement, but may only be entered into with securities owned and previously paid for a ' 4 minimum of 30 days prior to the settlement of the reverse repurchase agreement, in order to supplement the yield on securities owned and previously paid for or to provide funds for the immediate payment of a local agency obligation. Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a countetparty by way of a reverse repurchase agreement,on securities originally purchased subsequent to December 31, 1994,shall not be used to purchase another security with a maturity longer than 92 days from the initial li settlement date of the reverse repurchase agreement, unless the reverse repurchase agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period II between the sale of a security using a reverse repurchase agreement and the final maturity date of L the same security. Reverse repurchase agreements specified in subparagraph (B) of paragraph (3) may not be entered into unless the percentage restrictions specified in that subparagraph are met, including the total of any reverse repurchase agreements specified in subparagraph (A) of v paragraph(3)- (5) investments in reverse repurchase agreements or similar investments in which the local IJ agency sells securities prior to purchase with a simultaneous agreement to repurchase the security, may only be made upon prior approval of the governing body of the local agency and shall only be made with primary dealers of the Federal Reserve Bank of New York. V (6)(A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a specified date and for a specified amount and the counterparty will deliver the underlying securities to the local agency by book entry, physical delivery, or by third party custodial I 1 agreement. The transfer of underlying securities to the counterparty bank's customer book-entry LI account may be used for book-entry delivery. Page 6 of 40 m (B) "Securities," for purpose of repurchase under this subdivision, means securities of the same issuer,description, issue date, and maturity. .. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an agreement by which the local agency will repurchase the securities on or before a specified date and includes other comparable agreements. r (D) For purposes of this section, the base value of the local agency's pool portfolio shall be that dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase agreements or other similar borrowing methods. (E) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the funds. Medium-term notes of a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating.category of"A" or its equivalent or better by a nationally recognized rating service. Purchases of medium-term notes may not exceed 30 percent of the '+ agency's surplus money which may be invested pursuant to this section. (k)(1) Shares of beneficial interest issued by diversified management companies that invest in ti the securities and obligations as authorized by subdivisions (a) to 0), inclusive, or subdivisions (m) or (n) and that comply with the investment restrictions of this article and Article 2 .. (commencing with Section 53630). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement may be 100 percent of the sales price if the securities are marked to market daily. ,r (2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940(15 U.S.C. Sec. 80a-1,et seq.). (3)If investment is in shares issued pursuant to paragraph(1), the company shall have met either of the following criteria: .d _ (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. (B)Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to 0), inclusive, or subdivisions (m) or (n) and with _ assets under management in excess of five hundred million dollars($500,000,000). (4) If investment is in shares issued pursuant to paragraph(2), the company shall have met either .. of the following criteria: r __ Page 7 of 40 (A) Attained the highest ranking or the highest letter and numerical rating provided by not less �I than two nationally recognized statistical rating organizations. (B)Retained an investment adviser registered or exempt from registration with the Securities and id Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars($500,000,000). N (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge and shall not exceed 20 percent of the agency's surplus money that may be invested pursuant to this section. However, no more V than 10 percent of the agency's surplus funds may be invested in shares;of beneficial interest of any one mutual fund pursuant to paragraph(1). L (1) Notwithstanding anything to the contrary contained in this section; Section 53635, or any other provision of law, moneys held by a trustee or fiscal agent and pledged to the payment or security of bonds or other indebtedness, or obligations under a lease, installment sale, or other agreement of a local agency, or certificates of participation in those bonds, indebtedness, or lease installment sale, or other agreements, may be invested in accordance with the statutory provisions governing the issuance of those bonds, indebtedness, or lease installment sale, or other agreement, or to the extent not inconsistent therewith or if there are no specific statutory provisions, in accordance with the ordinance, resolution, indenture, or agreement of the local agency providing for the issuance. (m) Notes, bonds, or other obligations that are at all times secured by a valid first priority V security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by Section 53652 for the purpose of securing local agency deposits. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of 'securities in which the security interest is granted. . (n) Any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer!receivable pass-through certificate, or consumer receivable-backed bond of a maximum of five years maturity. Securities I„I eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by a nationally recognized rating service and rated in a rating category of"AA" or its equivalent or better by a nationally recognized rating service. y Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency's surplus money that may be invested pursuant to this section. § 53601.1. Investment in financial futures or financial option contracts The authority of a local agency to invest funds pursuant to Section 53601 includes, in addition thereto, authority to invest in financial futures or financial option 'contracts in any of the investment categories enumerated in that section. b Page 8 of 40 U r, § 53601.5. Investments; qualified purchase agent The purchase by a local agency of any investment authorized pursuant to Section 53601 or .. 53601.1, not purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a federal or state association (as defined by Section 5102 of the Financial Code) or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank. m' § 53601.6. Prohibited investments (a) A local agency shall not invest any funds pursuant to this article in inverse floaters, range " notes,or mortgage derived interest-only strips. (b) A local agency shall not invest any funds pursuant to this article in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited -- instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, and following)that -- are authorized for investment pursuant to subdivision(k)of Section 53601. § 53602. investment in legal investments for savings banks;securities of public districts The legislative body shall invest only in notes, bonds, bills, certificates of indebtedness, .r warrants, or registered warrants which are legal investments for savings banks in the State, provided, that the board of supervisors of a county may, by a four-fifths vote thereof, invest in .r notes, warrants or other evidences of indebtedness of public districts wholly or partly within the county, whether or not such notes, warrants, or other evidences of indebtedness are legal ' investments for savings banks. § 53603. Direct purchase of securities s, The legislative body may make the investment by direct purchase of any issue of eligible securities at their original sale or after they have been issued. § 53604. Sale or exchange of securities;reinvestment of proceeds § 53605. Sale of securities; application of proceeds to original purposes From time to time, the legislative body shall sell the securities so that the proceeds may be applied to the purposes for which the original purchase money was placed in the sinking fund or the treasury of the local agency. § 53606. Cancellation of bonds issued by purchaser; resale .r The bonds purchased,which were issued by the purchaser, may be canceled either in satisfaction of sinking fund obligations or otherwise. When canceled, they are no longer outstanding, unless '-' in its discretion, the legislative body holds them uncanceled. While held uncanceled, the bonds -. may be resold. Page 9 of40 ti § 53607. Delegation of duties to treasurer; monthly report b' The authority of the legislative body to invest or to reinvest funds of a local agency, or to sell or exchange securities so purchased,may be delegated for a one-year period by the legislative body to the treasurer of the local agency, who shall thereafter assume full responsibility for those transactions until the delegation of authority is revoked or expires, and shall make a monthly report of those transactions to the legislative body. Subject to review, the legislative body may �+ renew the delegation of authority pursuant to this section each year. i § 53608. Deposit of securities; receipt; delegation of authority td The legislative body of a local agency may deposit for safekeeping with a federal or state L association (as defined by Section 5102 of the Financial Code), a trust company or a state or national bank located within this state or with the Federal Reserve Bank of San Francisco or any branch thereof within this state, or with any Federal Reserve bank or with any state or national bank located in any city designated as a reserve city by the Board of Govemors of the Federal Reserve System, the bonds, notes, bills, debentures, obligations, certificates of indebtedness, warrants, or other evidences of indebtedness in which the money of the local agency is invested pursuant to this article or pursuant to other legislative authority. The local agency shall take from such financial institution a receipt for securities so deposited. The authority of the legislative body to deposit for safekeeping may be delegated by the legislative body to the V treasurer of the local agency;the treasurer shall not be responsible for securities delivered to and receipted for by a financial institution until they are withdrawn from the financial institution by the treasurer. L § 53609. Eligible securities for investment of funds held by local agency pursuant to deferred compensation plans Notwithstanding the provisions of this chapter or any other provisions of this code, funds held by a local agency pursuant to a written agreement between the agency and employees of the agency to defer a portion of the compensation otherwise receivable by the agency's employees and pursuant to a plan for such deferral as adopted by the governing body of the agency, may be invested in the types of investments set forth in Sections 53601 and 53602 of this code, and may id additionally be invested in corporate stocks, bonds, and securities, mutual funds, savings and loan accounts, credit union accounts, life insurance policies, annuities, mortgages, deeds of trust, or other security interests in real or personal property. Nothing herein shall be construed to W permit any type of investment prohibited by the Constitution. Deferred compensation funds are public pension or retirement funds for the purposes of Section �u 17 of Article XV I of the Constitution. § 53630. Definitions L.I As used in this article: W (a) "Local agency" means county, city, city and county, including a chartered city or county, a community college district,or other public agency or corporation in this state. Lr (b) "Treasurer" means treasurer of the local agency. U Page 10 of 40 (c) "Depository" means a state or national bank, savings association or federal association, a state or federal credit union, or a federally insured industrial loan company, in this state in which the moneys of a local agency are deposited. _ (d) "Agent of depository" means a trust company or trust department of a state or national bank located in this state, including the trust department of a depository where authorized, and the Federal Home Loan Bank of San Francisco, which is authorized to act as an agent of depository for the purposes of this article pursuant to Section 53657. (e)"Security" means any of the eligible securities or obligations listed in Section 53651. (f) 'Pooled securities" means eligible securities held by an agent of depository for a depository and securing deposits of one or more local agencies. (g) "Administrator" means the Administrator of Local Agency Security of the State of California. .__ (h) "Savings association or federal association' means a savings association, savings and loan association,or savings bank as defined by Section 5102 of the Financial Code. r - (i) 'Federally insured industrial loan company" means an industrial loan company licensed under Division 7 (commencing with Section 18000) of the Financial Code, the investment certificates of which are insured by the Federal Deposit Insurance Corporation. ,r § 53630.1. Legislative findings and declarations; solvency and creditworthiness - The Legislature hereby finds that the solvency and creditworthiness of each individual local .a agency can impact the solvency and creditworthiness of the state and other local agencies within the state. Therefore, to protect the solvency and creditworthiness of the state and all of its political subdivisions, the Legislature hereby declares that the deposit and investment of public „r funds by local officials and local agencies is an issue of statewide concern. § 53630.5. Additional definitions .a (a) The definitions in Section 1700 of, and Chapter 1 (commencing with Section 99) of Division 1 of, the Financial Code apply to this section. (b) In this article, for purposes of being a depository of moneys belonging to or being in the custody of a local agency, the phrases "state or national bank located in this state," "state or ., national bank," "state or national bank in this state," and "state or national banks in the state" include,without limitation, any of the following: .e (1) Any California branch office of a foreign (other state) state bank that the bank is authorized to maintain under the law of its domicile and federal law. �+ (2) Any California branch office of a foreign (other state) national bank that the bank is authorized to maintain under federal law. ^� (3) Any California branch office of a foreign (other nation) bank that the bank is licensed to maintain under Article 3 (commencing with Section 1750) of Chapter 13.5 of Division I of the Financial Code. r Page 11 of40 m V (4) Any California federal branch of a foreign (other nation) bank that the bank is authorized to maintain under federal law. L § 53631. Deposits to pay principal and interest of bonds Under such conditions as the treasurer of a local agency fixes with the approval of the legislative N body,he may deposit money necessary to pay the principal and interest of bonds in a bank within or without the State at the place where they are payable. This article does not apply to deposits for such purposes. d § 53631.5. Prohibited investments L (a) A local agency shall not invest any funds pursuant to this article in inverse floaters, range notes,or interest-only strips that are derived from a pool of mortgages. v (b) A local agency shall not invest any funds pursuant to this article in any security that could result in zero interest accrual if held to maturity. However, a local agency may hold prohibited instruments until their maturity dates. The limitation in this subdivision shall not apply to local agency investments in shares of beneficial interest issued by diversified management companies registered under the Investment Company Act of 1940(15 U.S.C. Sec. 80a-1, and following)that are authorized for investment pursuant to subdivision(k)of Section 53601. § 53632. Classes of deposits v There are three classes of deposits: I - 6d (a)Inactive deposits. (b)Active deposits. (c)Interest-bearing active deposits. ti § 53632.5. Classes of security for deposits There are three classes of security for deposits: w (a) Securities described in subdivision(m)of Section 53651. L� (b)Securities described in subdivision(p)of Section 53651. (c) Securities enumerated in Section 53651, except for those described in subdivisions (m) and (p)of that section. § 53633. Determination of amounts to be deposited in each class The treasurer shall determine the amounts of money to be deposited as inactive, active, and interest-bearing active deposits,except as otherwise provided in Section 53679. Page 12 of 40 1✓ § 53634. Transfers from inactive to active deposits The treasurer may call in money from inactive deposits and place it in active deposits as current demands require. When there is money in his possession for which there is no demand as inactive deposits,he may place it as active deposits. § 53635. Funds of local agency;deposit or investment As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations or federal associations, credit unions, or federally insured industrial loan companies in this state selected by the treasurer or other official having the legal custody of the money; or, unless otherwise directed by the legislative body pursuant to Section 53601, may be invested in the investments set forth below. A local agency purchasing or obtaining any securities described in this section, in a negotiable, bearer, registered, or nonregistered format, shall require delivery of all the securities to the local -- agency, including those purchased for the agency by financial advisors, consultants, or managers using the agency's funds, by book entry, physical delivery, or by third-party custodial agreement. The transfer of securities to the counterparty bank's customer book entry account may be used for book-entry delivery. For purposes of this section, "counterparty" means the other party to the transaction. A counterparty bank's trust department or separate safekeeping department may be used for the physical delivery of the security if the security is held in the name of the local agency. (a)Bonds issued by the local agency, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department,board,agency,or authority of the local agency. (b) United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. (c) Registered state warrants or treasury notes or bonds of this state, including bonds payable ., solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency,or authority of the state. r (d) Bonds, notes, warrants, or other evidences of indebtedness of any local agency within this _ state, including bonds payable solely out of the revenues from a revenue-producing properly owned, controlled, or operated by the local agency, or by a department, board, agency, or .d authority of the local agency. (e) Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks,the Federal Home Loan Bank, the Tennessee Valley Authority, _ or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or in guaranteed portions of Small Business Administration notes;or in obligations,participations, or other instruments of, or issued by,a federal agency or a United States government-sponsored enterprise. (f) Bills of exchange or time drafts drawn on and accepted by a commercial bank, otherwise ._ known as bankers acceptances. Purchases of bankers acceptances may not exceed 270 days maturity or 40 percent of the agency's surplus funds which may be invested pursuant to this Page 13 of 40 section. However, no more than 30 percent of the agency's surplus funds may be invested in the bankers acceptances of any one commercial bank pursuant to this section. I This subdivision does not preclude a municipal utility district from investing any surplus money L in its treasury in any manner authorized by the Municipal Utility District Act, Division 6 (commencing with Section 11501)of the Public Utilities Code. (g) Commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody's Investors Service, Inc.; or Standard and Poor's j Corporation. Eligible paper is further limited to issuing corporations that are organized and L! operating within the United States and having total assets in excess,of five hundred million dollars ($500,000,000) and having an "A" or higher rating for the issuer's debt, other than ! ! commercial paper, if any, as provided for by Moody's Investors Service, Inc., or Standard and 6d Poor's Corporation. Purchases of eligible commercial paper may not exceed 180 days maturity nor represent more than 10 percent of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed 15 percent of the agency's surplus money which may be invested pursuant to this section. An additional 15 percent, or a total of 30 percent of the agency's money or money in its custody, may be invested pursuant to this subdivision. The Lr additional 15 percent may be so invested only if the dollar-weighted,average maturity of the entire amount does not exceed 31 days. "Dollar-weighted average maturity" means the sum of the amount of each outstanding commercial paper investment multiplied by the number of days to maturity, divided by the total amount of outstanding commercial paper. (h)Negotiable certificates of deposit issued by a nationally or state- chartered bank or a savings association or federal association or a state or federal credit union or by a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the agency's surplus money which may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposit do not come within Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5,except that the amount so invested shall be subject to the limitations of Section 53638. For purposes of this section, the legislative 6J body of a local agency and the treasurer or other official of the local agency having legal custody of the money are prohibited from depositing or investing local agency funds, or funds in the custody of the local agency,in negotiable certificates of deposit issued by a state or federal credit IJ union if a member of the legislative body of the local agency, or an employee of the administrative officer, manager's office, budget office, auditor-controller's office, or treasurer's office of the local agency also serves on the board of directors, or any committee appointed by iJ the board of directors, or the credit committee or supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. U (i)(1) Investments in repurchase agreements or reverse repurchase agreements of any securities authorized by this section,so long as the agreements are subject to this subdivision, including the delivery requirements specified in this section. I W (2) Investments in repurchase agreements may be made, on any investment authorized in this ! section, when the term of the agreement does not exceed one year. The market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. 1 6d (3) Reverse repurchase agreements may be utilized only when either of the following conditions are met: V Page 14 of40 LI r _ (A) The security was owned or specifically committed to purchase, by the local agency, prior to repurchase agreement on December 31, 1994, and was sold using a reverse repurchase e agreement on December 31, 1994. (B) The security to be sold on reverse repurchase agreement has been owned and fully paid for ® by the local agency for a minimum of 30 days prior to sale, the total of all reverse repurchase _ agreements on investments owned by the local agency not purchased or committed to purchase, prior to December 31, 1994, does not exceed 20 percent of the base value of the portfolio, and d the agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum eaming or spread for the entire period between the sale of a security using a reverse repurchase agreement and the final maturity date of the same security. a (4) After December 31, 1994, a reverse repurchase agreement may not be entered into with securities not sold on a reverse repurchase agreement and purchased, or committed to purchase, prior to that date, as a means of financing or paying for the security sold on a reverse repurchase agreement, but may only be entered into with securities owned and previously paid for, for a minimum of 30 days prior to the settlement of the reverse repurchase agreement, in order to supplement the yield on securities owned and previously paid for or to provide funds for the -- immediate payment of a local agency obligation. Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counterparty by way of a reverse r repurchase agreement, on securities originally purchased subsequent to December 31, 1994, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement, unless the reverse repurchase agreement includes a written codicil guaranteeing a minimum eanting or spread for the entire period - between the sale of a security using a reverse repurchase agreement and the final maturity date of the same security. Reverse repurchase agreements specified in subparagraph (B) of paragraph (3) may not be entered into unless the percentage restrictions specified in that subparagraph are met, including the total of any reverse repurchase agreements specified in subparagraph (A) of r paragraph(3)• -' (5) Investments in reverse repurchase agreements or similar investments in which the local r agency sells securities prior to purchase with a simultaneous agreement to repurchase the security, may only be made upon prior approval of the governing body of the local agency and shall only be made with primary dealers of the Federal Reserve Bank of New York. _ (6)(A) "Repurchase agreement" means a purchase of securities by the local agency pursuant to an agreement by which the counterparty seller will repurchase the securities on or before a m specified date and for a specified amount and the counterparty will deliver the underlying _ securities to the local agency by book entry, physical delivery, or by third party custodial agreement. The transfer of underlying securities to the counterparty bars customer book-entry r account may be used for book-entry delivery. (B) "Securities," for purpose of repurchase under this subdivision, means securities of the same ^� issuer,description,issue date,and maturity. (C) "Reverse repurchase agreement" means a sale of securities by the local agency pursuant to an •+ agreement by which the local agency will repurchase the securities on or before a specified date, and includes other comparable agreements. r __ Page 15 of40 (D) For purposes of this section, the base value of the local agency's pool portfolio shall be that kd dollar amount obtained by totaling all cash balances placed in the pool by all pool participants, excluding any amounts obtained through selling securities by way of reverse repurchase I agreements or other similar borrowing methods. L� (E) For purposes of this section, the spread is the difference between the cost of funds obtained using the reverse repurchase agreement and the earnings obtained on the reinvestment of the 0-4 funds. 0) Medium-term notes of a maximum of five years' maturity issued by corporations organized L and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of"A" or its equivalent or better by a nationally recognized rating service. Purchases of medium-term notes may not exceed 30 percent of the agency's surplus money which may be invested pursuant to this section. La (k)(1) Shares of beneficial interest issued by diversified management companies that invest in the securities and obligations as authorized by subdivisions (a)to 0), inclusive, or subdivision (1) or(m)and that comply with the investment restrictions of this article and Article 1 (commencing with Section 53600). However, notwithstanding these restrictions, a counterparty to a reverse repurchase agreement is not required to be a primary dealer of the Federal Reserve Bank of New York if the company's board of directors finds that the counterparty presents a minimal risk of default, and the value of the securities underlying a repurchase agreement may be 100 percent of the sales price if the securities are marked to market daily. L (2) Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). (3)If investment is in shares issued pursuant to paragraph(1), the company shall have met either La of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less {,j than two nationally recognized statistical rating organizations. (B)Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by subdivisions (a) to 0), inclusive, or subdivision (1) or (m) and with assets under management in excess of five hundred million dollars($500,000,000). (4)If investment is in shares issued pursuant to paragraph(2), the company shall have met either ; of the following criteria: is (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. L (B)Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual u fords with assets under management in excess of five hundred million dollars($500,000,000). L Page 16 of 40 (5) The purchase price of shares of beneficial interest purchased pursuant to this subdivision shall not include any commission that the companies may charge and shall not exceed 20 percent of the agency's surplus money that may be invested pursuant to this section. However, no more than 10 percent of the agency's surplus funds may be invested in shares of beneficial interest of any one mutual fund pursuant to paragraph(1). p) Notes, bonds, or other obligations which are at all times secured by a valid first priority security interest in securities of the types listed by Section 53651 as eligible securities for the purpose of securing local agency deposits having a market value at least equal to that required by a Section 53652 for the purpose of securing local agency deposits. The securities serving as ._ collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted. ._ (m) Any mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond of a maximum of five years _- maturity. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by a nationally recognized rating service and rated in a rating category of "AA" or its equivalent or better by a nationally - recognized rating service. Purchase of securities authorized by this subdivision may not exceed 20 percent of the agency's surplus money that may be invested pursuant to this section. -- § 53635.5. Investments;qualified purchase agent The purchase by a local agency of any investment authorized pursuant to Section 53635, not - purchased directly from the issuer, shall be purchased either from an institution licensed by the state as a broker-dealer,as defined in Section 25004 of the Corporations Code, or from a member of a federally regulated securities exchange, from a national or state-chartered bank, from a savings association or a federal association, or from a brokerage firm designated as a primary government dealer by the Federal Reserve bank. § 53635.7. Borrowing funds; meetings; separate consideration a In making any decision that involves borrowing in the amount of one hundred thousand dollars ($100,000) or more, the legislative body of the local agency shall discuss, consider, and deliberate each decision as a separate item of business on the agenda of its meeting as prescribed in Chapter 9(commencing with Section 54950). d. § 53636. Deposited money as in treasury of local agency Money so deposited is deemed to be in the treasury of the local agency. r § 53637. Selection of depositary; interest The money shall be deposited in any bank, savings association or federal association, state or federal credit union, or federally insured industrial loan company with the objective of realizing maximum return, consistent with prudent financial management, except that money shall not be r Page 17 of 40 r deposited in any state or federal credit union if a member of the legislative body of a local V agency, or an employee of the administrative office, manager's office, budget office, auditor-controller's office, or treasurer's office of the local agency, also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or L supervisory committee,of the state or federal credit union. § 53638. Maximum deposits b (a) The deposit shall not exceed the shareholder's equity of any depository bank. For the purposes of this subdivision, shareholder's equity shall be determined in accordance with Section V I IS of the Financial Code,but shall be deemed to include capital notes and debentures. (b) The deposit shall not exceed the total of the net worth of any depository savings association ++ or federal association,except that deposits not exceeding a total of five hundred thousand dollars ($500,000)may be made to a savings association or federal association without regard to the net Iwj worth of that depository, if such deposits are insured or secured as required by law. (c)The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as'defined by rule of the Commissioner of Corporations, except that the deposit to any credit union share account in an amount not exceeding five hundred thousand dollars ($500,000) may be made if the share L accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law. (d)The deposit in investment certificates of a federally insured industrial loan company shall not exceed the total of the unimpaired capital and surplus of the insured industrial loan company. § 53638. Maximum deposits (a) The deposit shall not exceed the shareholder's equity of any depository bank. For the u purposes of this subdivision, shareholders equity shall be determined in accordance with Section 118 of the Financial Code,but shall be deemed to include capital notes and debentures. (b) The deposit shall not exceed the total of the net worth of any depository savings association or federal association,except that deposits not exceeding a total of five hundred thousand dollars - ($500,000) may be made to a savings association or federal association without regard to the net L� worth of that depository,if such deposits are insured or secured as required by law. (c)The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as defined by rile of the Commissioner of Financial Institutions, except that the deposit to any credit union share account 11 � in an amount not exceeding five hundred thousand dollars ($500,000)may be made if the share N accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law. j (d)The deposit in investment certificates of a federally insured industrial loan company shall not L.t exceed the total of the unimpaired capital and surplus of the insured industrial loan company. 1 u 6d Page 18 of 40 .d § 53639. Expense of transporting money Except as otherwise provided in Section 53682, the depository shall bear the expenses of transportation of money to and from the depository. § 53640. Checks, drafts, and other exchange b Except as otherwise provided in Section 53682, the depository shall handle, collect, and pay all checks, drafts, and other exchange without cost to the local agency. d ._ § 53641. Receipt or other evidence of deposit When money is deposited in a depository,the treasurer or other authorized official shall take and preserve a receipt,certificate of deposit,or other evidence of the deposit as he or she requires. § 53642. Withdrawals; check or order The money deposited may be drawn out by check or order of the treasurer or other official ® authorized to make such deposit. § 53643. Deposit by treasurer -- The treasurer may deposit any part of the money as agreed upon between the treasurer and the depository. -- § 53644. Withdrawals on demand;penalties; notice r If an agreement is not made: e, (a) Active deposits and interest thereon are subject to withdrawal upon the demand of the treasurer or other authorized official, subject to any penalties which may be prescribed by federal law or regulation. (b)Inactive deposits are subject to notice of at least thirty days before withdrawal. w § 53645. Interest;computation; payment Interest shall be computed and paid by the depository,as follows: (a)For active deposits upon which interest is payable, interest shall be computed on the average daily balance for the calendar quarter,and shall be paid quarterly. d ._ (b) For inactive deposits, interest shall be computed on a 360-day basis, and shall be paid quarterly. ae § 53646. Investment policy statement; review and approval; legislative body or oversight committee;reports _ Page 19 of 40 r (a)(1) In the case of county government, the treasurer shall annually render to the board of supervisors and any oversight committee a statement of investment policy, which the board shall review and approve at a public meeting. Any change in the policy shall also be reviewed and ' approved by the board at a public meeting. L (2) In the case of any other local agency, the treasurer or chief fiscal officer of the local agency shall annually render to the legislative body of that local agency and any oversight committee of that local agency a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any change in the policy shall also be considered by the legislative body of the local agency at a public meeting. (b)(1) The treasurer or chief fiscal officer shall render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency. The quarterly report "i shall be so submitted within 30 days following the end of the quarter covered by the report. Except as provided in subdivision(e), this report shall include the type of investment, issuer,date of maturity par and dollar amount invested on all securities, investments and moneys held by the 611 local agency, and shall additionally include a description of any of the local agency's funds, investments,or programs,that are under the management of contracted parties, including lending programs. With respect to all securities held by the local agency, and under management of any 14 outside party that is not also a local agency or the State of California Local Agency Investment Fund, the report shall also include a current market value as of the date of the report, and shall include the source of this same valuation. (2) The quarterly report shall state compliance of the portfolio to the statement of investment policy,or manner in which the portfolio is not in compliance. (3) The quarterly report shall include a statement denoting the ability of the local agency to meet its pool's expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall,or may,not be available. 6d (4) In the quarterly report, a subsidiary ledger of investments may be used in accordance with accepted accounting practices. I i a.{ (c) Pursuant to subdivision (b), the treasurer or chief fiscal officer shall report whatever additional information or data may be required by the legislative body of the local agency. N (d)The legislative body of a local agency may elect to require the report specified in subdivision (b)to be made on a monthly basis instead of quarterly. J1 (e) For local agency investments that have been placed in the Local Agency Investment Fund, created by Section 16429.1, in Federal Deposit Insurance Corporation-insured accounts in a bank . or savings and loan association, in a county investment pool, or any combination of these, the W treasurer or chief fiscal officer may supply to the governing body, chief executive officer, and the auditor of the local agency the most recent statement or statements received by the local agency from these institutions in lieu of the information required by paragraph(1)of subdivision L (b)regarding investments in these institutions. �y Poge 20 of 40 I L e. § 53647.Interest; payment into fund (a) Interest on all money deposited belongs to, and shall be paid quarterly into the general fund of, the local agency represented by the officer making the deposit, unless otherwise directed by law. e+ (b)Notwithstanding the provisions of subdivision(a),and except as otherwise directed by law, if the governing body of the local agency represented by the officer making the deposit so directs, such interest shall be paid to the fund which contains the principal on which the interest accrued. § 53647.5. Interest on bail money on deposit `^ Notwithstanding any other provision of law, interest earned on any bail money deposited in a -_ bank account pursuant to Section 1463.1 of the Penal Code and Section 53679 of this code shall, if the board of supervisors so directs, be allocated for the support of the courts in that county. s - § 53648. Deposits and contracts pursuant to federal law or rule Notwithstanding this article,the treasurer may deposit moneys in, and enter into contracts with, a state or national bank, savings association or federal association, federal or state credit union, or federally insured industrial loan company, pursuant to a federal law or a rule of a federal department or agency adopted pursuant to the law if the law or rule conflicts with this article in -- regulating the payment of interest on deposits of public moneys by any of the following: (a) Banks which are Federal Reserve System members or whose deposits are insured by the Federal Deposit Insurance Corporation. (b) Savings associations or federal associations which are federal home loan bank members or whose deposits are insured by the Federal Savings and Loan Insurance Corporation. (c) State or federal credit unions whose accounts are insured by the National Credit Union Share Insurance Fund or guaranteed by the California Credit Union Share Guaranty Corporation or insured or guaranteed pursuant to Section 14858 of the Financial Code, unless a member of the _ legislative body of a local agency, or an employee of the administrative office, manager's office, budget office, auditor-controller's office, or treasurels office of the local agency, also serves on .e the board of directors, or any committee appointed by the board of directors, or the credit committee or supervisory committee, of the state or federal credit union. (d)A federally insured industrial loan company. § 53648.5. Termination of agreement with depository e. Upon the removal by federal law of the conflicting federal law or rule the agreement between the treasurer or other authorized official and a depository may be terminated by either party. § 53649. Contracts with depositories;contents; filing The treasurer is responsible for the safekeeping of money in his or her custody and shall enter into any contract with a depository relating to any deposit which in his or her judgment is to the public advantage. The depository, and the agent of depository to the extent the agent of depository has been notified of deposits and the amount thereof, are responsible for securing Page 21 of 40 i moneys deposited pursuant to such a contract in accordance with Section 53652. One copy of Id each contract shall be filed with the auditor, controller, secretary, or corresponding officer of the local agency. The contract shall: i (a)Fix the duration of deposits, if appropriate. (b) Fix the interest rate,if any. +1 (c)Provide conditions for withdrawal and repayment. - (d)Provide for placement of pooled securities in a named agent of depository in accordance with Section 53656. (e) Grant authority for agent of depository to place securities for safekeeping in accordance with Section 53659. (f) Set forth in accordance with Section 53665 the conditions upon which the administrator shall order pooled securities converted into money for the benefit of the local agency, and the procedure therefor. (g) Provide for compliance in all respects with the provisions of this article and other applicable , provisions of law. (h) Provide, upon notice to the treasurer from the administrator, that a treasurer may withdraw Li deposits in the event a depository fails to pay the assessments, fines, or penalties assessed by the administrator or may withdraw authorization for the placement of pooled securities in an agent of depository in the event that the agent of depository fails to pay the fines or penalties assessed by the administrator. § 53651. Eligible securities y Eligible securities are any of the following: i (a) United States Treasury notes, bonds, bills or certificates of indebtedness, or obligations for which the faith and credit of the United States are pledged for the payment of principal and interest, including the guaranteed portions of small business administration loans, so long as the l�l loans are obligations for which the faith and credit of the United States are pledged for the payment of principal and interest. i (b)Notes or bonds or any obligations of a local public agency (as defined in the United States 11 Housing Act of 1949) or any obligations of a public housing agency (as defined in the United 1 States Housing Act of 1937) [FNI] for which the faith and credit of the United States are d pledged for the payment of principal and interest. (c) Bonds of this state or of any local agency or district of the State of California having the power, without limit as to rate or amount, to levy taxes or assessments to pay the principal and interest of the bonds upon all property within its boundaries subject to taxation or assessment by the local agency or district, and in addition, limited obligation bonds pursuant to Article 4 (commencing with Section 50665) of Chapter 3 of Division 1, senior obligation bonds pursuant to Article 5 (commencing with Section 53387) of Chapter 2.7, and revenue bonds and other Id, Page 22 of 40 �I obligations payable solely out of the revenues from a revenue-producing property owned, controlled or operated by the state, local agency or district or by a department, board, agency or authority thereof. (d)Bonds of any public housing agency(as defined in the United States Housing Act of 1937, as amended) [FN2] as are secured by a pledge of annual contributions under an annual contribution contract between the public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of Section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in the contract pursuant to that subsection 22(b) shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on the obligations. (e)Registered warrants of this state. (f) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by the United States Postal Service, federal land banks [FN3] or federal intermediate credit banks [FN4] established under the Federal Farm Loan Act, as amended, [FN5] debentures and consolidated debentures issued by the Central Bank for Cooperatives [FN6] and banks for cooperatives established under the Farm Credit Act of 1933, [FN7] as amended, consolidated obligations of the federal home loan banks established under the Federal Home Loan Bank Act, [FN8] bonds, debentures and other obligations of the Federal National Mortgage Association [FN9] or of the Government National Mortgage Association [FN10] established under the National Housing Act,as amended, [FNI 1] bonds of any federal home loan bank established under that act, bonds, debentures and other obligations of the Federal Home Loan Mortgage Corporation established under the Emergency Home Finance Act of 1970, [FN12] and obligations of the Tennessee Valley Authority. [FN131 -- (g) Notes, tax anticipation warrants or other evidence of indebtedness issued pursuant to Article 7 (commencing with Section 53820), Article 7.5 (commencing with Section 53840) or Article 7.6(commencing with Section 53850)of this Chapter 4. q, (h) State of California notes. (i) Bonds, notes, certificates of indebtedness, warrants or other obligations issued by: (1) any state of the United States (except this state), or the Commonwealth of Puerto Rico, or any local agency thereof having the power to levy taxes, without limit as to rate or amount, to pay the principal and interest of such obligations, or(2) any state of the United States (except this state), a or the Commonwealth of Puerto Rico, or a department, board, agency or authority thereof except _ bonds which provide for or are issued pursuant to a law which may contemplate a subsequent legislative appropriation as an assurance of the continued operation and solvency of the .� department, board, agency or authority but which does not constitute a valid and binding _ obligation for which the full faith and credit of such state or the Commonwealth of Puerto Rico are pledged, which are payable solely out of the revenues from a revenue-producing source owned, controlled or operated thereby; provided the obligations issued by an entity described in (1), above, are rated in one of the three highest grades, and such obligations issued by an entity described in (2), above, are rated in one of the two highest grades by a nationally recognized .. investment service organization that has been engaged regularly in rating state and municipal issues for a period of not less than five years. Page 23 of 40 (j) Obligations issued, assumed or guaranteed by the International Bank for Reconstruction and V Development,Inter-American Development Bank,the Government Development Bank of Puerto Rico, the Asian Development Bank, the International Finance Corporation, or the African 1 Development Bank. L (k)Participation certificates of the Export-Import Bank of the United States. d (1) Bonds and notes of the California Housing Finance Agency issued pursuant to Chapter 7 (commencing with Section 51350)of Part 3 of Division 31 of the Health and Safety Code. (m)Promissory notes secured by first mortgages and first trust dads which comply with Section 53651.2. 1+ (n) Any bonds, notes, warrants, or other evidences of indebtedness of a nonprofit corporation issued to finance the construction of a school building or school buildings pursuant to a lease or agreement with a school district entered into in compliance with the provisions of Section 39315 or 81345 of the Education Code, and also any bonds, notes, warrants or other evidences of indebtedness issued to refinance those bonds,notes,warrants,or other evidences of indebtedness as specified in Section 39317 of the Education Code. y (o) Any municipal securities, as defined by Section 3(a)(29) of the Securities Exchange Act of June 6, 1934, (15 U.S.C. Sec. 78, as amended),which are issued by this state or any local agency thereof. (p) With the consent of the treasurer, letters of credit issued by the Federal Home Loan Bank of San Francisco which comply with Section 53651.6. § 53651.2. Eligible security;promissory note (a) To be an eligible security under subdivision (m) of Section 53651, a promissory note placed 4 in a securities pool on or after January 1, 1987,shall comply with all of the following provisions: (1)Each promissory note shall be secured by a first mortgage or first trust deed on improved 1 to L 4 unit residential real property located in California, shall be fully amortized over the term of the note, and shall have a term of no more than 30 years. Any first mortgage or first trust deed which secures a promissory note providing for negative amortization shall be removed from the securities pool and replaced with an eligible security under subdivision (m) of Section 53651 if the loan to value ratio exceeds 85 percent of the original appraised value of the security property as a consequence of negative amortization. LJ (2)Each promissory note shall be eligible for sale to the Federal National Mortgage Association, i the Government National Mortgage Association, or the Federal Home Loan Mortgage N Corporation; provided, however, that up to 25 percent of the total dollar amount of any promissory note securities pool established pursuant to Section 53658 may consist of promissory I notes with loan amounts which exceed the maximum amounts eligible for purchase by the L Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation, but which do not exceed: (i) five hundred thousand dollars($500,000)in the case of a single family dwelling;(ii) one million dollars($1,000,000)in W the case of a 2,3,or 4 unit dwelling. iy Page 24 of40 �.I (b)The following shall not constitute eligible securities under subdivision (m) of Section 53651: (1)Any promissory note on which any payment is more than 60 days past due. (2) Any promissory note secured by a mortgage or deed of trust as to which there is a lien prior to the mortgage or deed of trust. For the purposes of this paragraph, no lien specified in Section 766 of the Financial Code shall be considered a prior encumbrance unless any installment or payment thereunder(other than a rental or royalty under a lease) is due and delinquent. 4+ (3) Any promissory note secured by a mortgage or deed of trust as to which a notice of default has been recorded pursuant to Section 2924 of the Civil Code or an action has been commenced pursuant to Section 725a of the Code of Civil Procedure. .,. (c)The depository may exercise, enforce,or waive any right granted to it by the promissory note, mortgage, or deed of trust. d _ (d) For purposes of this article, the market value of a promissory note which is an eligible security under subdivision (m) of Section 53651, shall be determined in accordance with the regulations adopted by the Treasurer under paragraph(2)of subdivision(m)of Section 53651,as the regulations and statute were in effect on December 31, 1986. However, if and when regulations on the subject are adopted by the administrator, the market value shall be determined in accordance with those regulations of the administrator. § 53651.4. Report of independent certified public accountant; depository using eligible securities; state bank;national bank; fee (a) A depository which uses eligible securities of the class described in subdivision (m) of Section 53651 shall, within 90 days after the close of each calendar year or within a longer --- period as the administrator may specify, file with the administrator a report of an independent certified public accountant regarding compliance with this article and with regulations and orders issued by the administrator under this article with respect to eligible securities of that class. The report shall be based upon the audit, shall contain the information, and shall be in the form the administrator may prescribe. The depository shall provide a copy of the report to the treasurer on request. .. (b) If a depository which is a state bank files with the administrator, not less than 90 days before the beginning of the calendar year, a notice that it elects to be examined by the administrator instead of filing a report of an independent certified public accountant under subdivision (a) for .. that calendar year, the depository shall be exempt from subdivision (a) for that calendar year and _ shall for that calendar year be subject to examination by the administrator regarding compliance with this article and with regulations and orders under this article with respect to eligible m securities of the class described in subdivision (m) of Section 53651. The administrator shall provide a report to a treasurer with deposits in the examined state bank upon request of the treasurer. (c) A national bank may apply to the administrator to be examined, and the administrator, in his or her discretion, may examine a national bank for the purposes of satisfying the requirements of r subdivision (a). The administrator shall provide a report to a treasurer with deposits in the examined national bank upon request of the treasurer. Page 25 of 40 m (d) Whenever the administrator examines a depository pursuant to subdivision (b) or (c), the u depository shall pay, within 30 days after receipt of a statement from the administrator, a fee of two hundred dollars($200)per day for each examiner engaged in the examination. I § 53651.6. Letter of credit;terns (a) To be an eligible security under subdivision(p) of Section 53651, a letter of credit shall be in N such form and shall contain such provisions as the administrator may prescribe, and shall include all of the following terms: 1 u (1)The administrator shall be the beneficiary of the letter of credit. (2)The letter of credit shall be clean and irrevocable and shall provide that the administrator may draw upon it up to the total amount in the event of the failure of the depository savings association or federal association or if the depository,savings association or federal association refuses to permit the withdrawal of funds by a treasurer. 'J § 53652. Value required to secure active or inactive deposits;market value 1. To secure active or inactive deposits a depository shall at all times maintain with the agent of depository eligible securities in securities pools, pursuant to Sections 53656 and 53658, in the amounts specified in this section. Uncollected funds shall be excluded from the amount deposited in the depository when determining the security requirements for the deposits. (a) Eligible securities, except eligible securities of the classes described in subdivisions (m) and (p) of Section 53651, shall have a market value of at least 10 percent in excess of the total amount of all deposits of a depository secured by the eligible securities. (b) Eligible securities of the class described in subdivision (m) of Section 53651 shall have a market value at least SO percent in excess of the total amount of all deposits of a depository secured by those eligible securities. (c) Eligible securities of the class described in subdivision (p) of Section 53651 shall have a jJ market value of at least 5 percent in excess of the total amount of all deposits of a depository secured by those eligible securities. For purposes of this article, the market value of a letter of credit which is an eligible security under subdivision(p)of Section 53651 shall be the amount of u credit stated in the letter of credit. i § 53653. Waiver of security;federally insured deposits;interest L When in his or her discretion local conditions so warrant, the treasurer may waive security for the portion of any deposits as is insured pursuant to federal law,notwithstanding this article. For �d deposits equivalent to and not less than the maximum amount insured pursuant to federal law for which a treasurer has waived security under this section, a treasurer at his or her discretion may j also waive security for the interest accrued on the deposits which, when added to the deposits, b+ would cause the sum of the interest and deposits to exceed the maximum amount insured pursuant to federal law, provided that the interest is computed by the depository on the average y daily balance of the deposits,paid monthly and computed on a 360-day basis. N iv Page 26 of 40 1� I i�i� .d § 53654. Addition or substitution of securities; withdrawal or release of securities (a) The depository may add securities to the pool or substitute securities of equal value for those in the pool at any time, but shall not interchange classes of security, as defined in Section 53632.5,without prior approval of the treasurer. (b) Withdrawal of securities from the pool without replacement at equal value may be ordered only by two duly authorized officers or employees of the depository who satisfy the requirements -- as may be set by the administrator. (c) The agent of depository is responsible for the safekeeping and disbursement of securities placed in its custody by a depository. It shall release securities only upon presentation by the depository of the most reasonably current statement of the total deposits subject to this article _ held by the depository, such statement to be verified and countersigned by two duly authorized officers, other than those who ordered the withdrawal of securities. A copy of this statement shall be forwarded to the administrator concurrently by the agent of depository. § 53655. Perfection of security interest in favor of local agencies A placement of securities by a depository with an agent of depository pursuant to this article shall have the effect of perfecting a security interest in those securities in the local agencies having deposits in that depository notwithstanding provisions of the Uniform Commercial Code to the contrary and notwithstanding that the agent of depository may be the trust department of the depository. § 53656. Authorization for holding of security by agent of depository; agents of depository; securities subject to order of depository;exception . - (a) At the time the treasurer enters into a contract with the depository pursuant to Section 53649, he or she shall authorize the agent of depository designated by the depository, but including the trust department of the depository only when acceptable to both the treasurer and the depository, -- to hold securities of the depository in accordance with this article to secure the deposit of the localagency. -- (b) Only those trust companies and trust departments, or the Federal Home Loan Bank of San Francisco, which have been authorized by the administrator pursuant to Section 53657 shall be authorized by treasurers to act as agents of depository. .. (c)The securities are subject to order of the depository in accordance with Section 53654 except when the provisions of subdivision(i)of Section 53661 and Section 53665 are in effect. § 53657.Authorization to act as agent of depository;application;form;fee; approval or denial (a)No person shall act as an agent of depository unless that person is a trust company located in this state, the trust department of a bank located in this state, or the Federal Home Loan Bank of San Francisco,and is authorized by the administrator to act as an agent of depository. (b)(l) An application for authorization shall be in such form, shall contain such information, shall be signed in such manner, and shall (if the administrator so requires) be verified in such manner,as the administrator may prescribe. r Page 27 of 40 Ly (2)The fee for filing an application for authorization with the administrator shall be five hundred dollars($500). L (3)If the administrator finds,with respect to an application for authorization,that the applicant is competent to act as an agent of depository and that it is reasonable to believe the applicant will comply with all applicable provisions of this article and of any regulation or order issued under 4+ this article, the administrator shall approve the application. If the administrator finds otherwise, the administrator shall deny the application. (4) When an application for authorization has been approved, the applicant shall file with the administrator an agreement to comply with all applicable provisions of this article and of any Jr regulation or order issued under this article. The agreement shall be in such form, shall contain such provisions,and shall be signed in such manner as the administrator may prescribe. (5) When an application for authorization has been approved, the applicant has complied with 1' paragraph (4), and all conditions precedent to authorizing the applicant to act as agent of depository have been fulfilled, the administrator shall authorize the applicant to act as agent of depository. § 53658. Maintenance of separate pool for each depository;security interest of local agency kr An agent of a depository may hold and pool securities to secure deposits for one or more depositories pursuant to Section 53656, but shall maintain a separate pool for each said y depository. Each local agency shall have an undivided security interest in the pooled securities in the proportion that the amount of its deposits bears to the total amount of deposits secured by the pooled securities. § 53659. Placement of securities with federal reserve or other approved bank; authority by contract v Whenever an agent of depository accepts securities pursuant to Section 53656 it may, with the authorization of the depository, place such securities for safekeeping with a Federal Reserve 4.4 Bank or branch thereof or with any bank located in a city designated as a reserve city by the Board of Governors of the Federal Reserve System or with the Federal Home Loan Bank of San Francisco or with a tout company located in this state. Authority for inch placement together H with the names of the banks or, including the Federal Home Loan Bank of San Francisco, trust companies to be so used, shall be contained in the contract between the treasurer and the depository required in Section 53649. Li § 53660.Certification and report by agent of depository When deposits of a local agency are secured by pooled securities pursuant to Section 53656, the agent of depository shall make available to the treasurer for review at a mutually agreed upon time and location all of the following information which may be in the form of a copy of the 4.9 report required in subdivision(e)of Section 53661: (a)A certification that there are securities in the pool in the amounts required by Section 53652 to secure deposits. W Page 29 of 40 .� (b)A certified report of the individual securities then on deposit in the pool with the location and total market value thereof. (c)The total amount of deposits then reported by the depository to be secured by the pool. § 53661. Administrator m (a) The Superintendent of Banks shall act as Administrator of Local Agency Security and shall be responsible for the administration of Sections 53638, 53651, 53651.2, 53651.4, 53651.6, '^ 53652, 53654, 53655, 53656, 53657, 53658, 53659, 53660, 53661, 53663, 53664, 53665, 53666, _ and 53667. (b) The administrator shall have the powers necessary or convenient to administer and enforce the sections specified in subdivision(a). (c)(1) The administrator shall issue regulations consistent with law as the administrator may .- deem necessary or advisable in executing the powers, duties, and responsibilities assigned by this article. The regulations may include regulations prescribing standards for the valuation, marketability, and liquidity of the eligible securities of the class described in subdivision (m) of - Section 53651, regulations prescribing procedures and documentation for adding, withdrawing, substituting, and holding pooled securities, and regulations prescribing the form, content, and execution of any application,report, or other document called for in any of the sections specified in subdivision(a)or in any regulation or order issued under any of those sections. 'tl (2) The administrator, for good cause, may waive any provision of any regulation adopted pursuant to paragraph (1) or any order issued under this article, where the provision is not s, necessary in the public interest. (d) The administrator may enter into any contracts or agreements as may be necessary, including .a, joint underwriting agreements, to sell or liquidate eligible securities securing local agency deposits in the event of the failure of the depository or if the depository fails to pay all or part of the deposits of a local agency. m (e) The administrator shall require from every depository a report certified by the agent of depository listing all securities, and the market value thereof, which are securing local agency ,> deposits together with the total deposits then secured by the pool, to determine whether there is _ compliance with Section 53652. These reports may be required whenever deemed necessary by the administrator, but shall be required at least four times each year at the times designated by .a the Comptroller of the Currency for reports from national banking associations. These reports _ shall be filed in the office of the administrator by the depository within 20 business days of the date the administrator calls for the report. (f)The administrator may have access to reports of examination made by the Comptroller of the Currency insofar as the reports relate to national banking association trust department activities ® which are subject to this article. (g)(1) The administrator shall require the immediate substitution of an eligible security, where the substitution is necessary for compliance with Section 53652, if (i) the administrator _ determines that a security listed in Section 53651 is not qualified to secure public deposits, or(ii) a treasurer, who has deposits secured by the securities pool, provides written notice to the __ Page 29 of 40 administrator and the administrator confirms that a security in the pool is not qualified to secure �6r public deposits. (2) The failure of a depository to substitute securities, where the administrator has required the ✓•+ substitution, shall be reported by the administrator promptly to those treasurers having money on deposit in that depository and, in addition, shall be reported as follows: 6d (A) When that depository is a national bank, to the Comptroller of the Currency of the United States. U (B) When that depository is a state bank,to the Superintendent of Banks. (C)When that depository is a federal association,to the Federal Home Loan Bank Board. (D) When that depository is a savings association,to the Savings and Loan Commissioner. d (E) When that depository is a federal credit union,to the National Credit Union Administration. I (F) When that depository is a state credit union or a federally insured industrial loan company,to L the Commissioner of Corporations. , (h) The administrator may require from each treasurer a registration report and at appropriate times a report stating the amount and location of each deposit together with other information deemed necessary by the administrator for effective operation of this article. The facts recited in y any report from a treasurer to the administrator are conclusively presumed to be true for the single purpose of the administrator fulfilling responsibilities assigned to him or her by this article and for no other purpose. L. (i)(1) If, after notice and opportunity for hearing, the administrator finds that any depository or agent of depository has violated or is violating, or that there is reasonable cause to believe that 'y any depository or agent of depository is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued under any of those sections, the administrator may order the depository or agent of depository to cease and desist from the violation or may by order suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. L (2)(A) If the administrator makes any of the findings set forth in paragraph (1) with respect to any depository or agent of depository and,in addition,finds that the violation or the continuation 1W of the violation is likely to seriously prejudice the interests of treasurers, the administrator may order the depository or agent of depository to cease and desist from the violation or may suspend j or revoke the authorization of the agent of depository. The order may require the depository or d agent of depository to take affirmative action to correct any condition resulting from the violation. (B) Within five business days after an order is issued under subparagraph (A), the depository or agent of depository may file with the administrator an application for a Bearing on the order. The administrator shall schedule a hearing at least 30 days,but not more than 40 days,after receipt of an application for a hearing or within a shorter or longer period of time agreed to by a depository or an agent of depository. If the administrator fails to schedule the hearing within the specified Lr Page 30 of40 6W m or agreed to time period, the order shall be deemed rescinded. Within 30 days after the hearing, _ the administrator shall affirm,modify,or rescind the order; otherwise,the order shall be deemed rescinded. The right of a depository or agent of depository to which an order is issued under subparagraph(A)to petition for judicial review of the order shall not be affected by the failure of the depository or agent of depository to apply to the administrator for a hearing on the order pursuant to this subparagraph. (3) Whenever the administrator issues a cease and desist order under paragraph (1) or (2), the administrator may in the order restrict the right of the depository to withdraw securities from a 01 security pool; and, in that event,both the depository to which the order is directed and the agent _. of depository which holds the security pool shall comply with the restriction. (4) In case the administrator issues an order under paragraph (1) or (2) suspending or revoking - . the authorization of an agent of depository, the administrator may order the agent of depository at its own expense to transfer all pooled securities held by it to such agent of depository as the 'm administrator may designate in the order. The agent of depository designated in the order shall accept and hold the pooled securities in accordance with this article and regulations and orders issued under this article. 0)In the discretion of the administrator, whenever it appears to the administrator that any person has violated or is violating, or that there is reasonable cause to believe that any person is about to ®° violate, any of the sections specified in subdivision (a) or any regulation or order issued thereunder, the administrator may bring an action in the name of the people of the State of California in the superior court to enjoin the violation or to enforce compliance with those .. sections or any regulation or order issued thereunder. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted, and the court may not require the administrator to post a bond. (k) In addition to other remedies, the administrator shall have the power and authority to impose r, the following sanctions for noncompliance with the sections specified in subdivision (a) after a hearing if requested by the party deemed in noncompliance. Any fine assessed pursuant to this subdivision shall be paid within 30 days after receipt of the assessment. (1) Assess against and collect from a depository a fine not to exceed two hundred fifty dollars ($250) for each day the depository fails to maintain with the agent of depository securities as required by Section 53652. (2)Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) .� for each day beyond the time period specified in subdivision (b) of Section 53663 the depository _ negligently or willfully fails to file in the office of the administrator a written report required by that section. (3)Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (e) that a depository negligently or �- willfully fails to file in the office of the administrator a written report required by that subdivision. (4) Assess and collect from an agent of depository a fine not to exceed one hundred dollars ($100) for each day the agent of depository fails to comply with any of the applicable sections specified in subdivision(a)or any applicable regulation or order issued thereunder. _. Page 31 of 40 d V (1 )(1) In the event that a depository or agent of depository fails to pay a fine assessed by the administrator pursuant to subdivision (k) within 30 days of receipt of the assessment, the administrator may assess and collect an additional penalty of 5 percent of the fine for each month Jr or part thereof that the payment is delinquent. (2) If a depository fails to pay the fines or penalties assessed by the administrator, the id administrator may notify local agency treasurers with deposits in the depository. (3) If an agent of depository fails to pay the fines or penalties assessed by the administrator, the V administrator may notify local agency treasurers who have authorized the agent of depository as provided in Sections 53649 and 53656,and may by order revoke the authorization of the agent of 1 depository as provided in subdivision(i). L § 53661. Administrator 6 b' (a) The Commissioner of Financial Institutions shall act as Administrator of Local Agency Security and shall be responsible for the administration of Sections 53638, 53651, 53651.2, 53651.4, 53651.6, 53652, 53654, 53655, 53656, 53657, 53658, 53659, 53660, 53661, 53663, �+ 53664, 53665, 53666, and 53667. (b) The administrator shall have the powers necessary or convenient to administer and enforce the sections specified in subdivision(a). (c)(1) The administrator shall issue regulations consistent with law as the administrator may '4 deem necessary or advisable in executing the powers,duties,and responsibilities assigned by this article. The regulations may include regulations prescribing standards for the valuation, V marketability, and liquidity of the eligible securities of the class described in subdivision (m) of Section 53651, regulations prescribing procedures and documentation for adding, withdrawing, substituting, and holding pooled securities, and regulations prescribing the form, content, and Y, execution of any application,report,or other document called for in any of the sections specified in subdivision(a)or in any regulation or order issued under any of those sections. (2) The administrator, for good cause, may waive any provision of any regulation adopted pursuant to paragraph (1) or any order issued under this article, where the provision is not necessary in the public interest. Lj (d) The administrator may enter into any contracts or agreements as may be necessary, including joint underwriting agreements, to sell or liquidate eligible securities securing local agency deposits in the event of the failure of the depository or if the depository,fails to pay all or part of the deposits of a local agency. I� (e) The administrator shall require from every depository a report certified by the agent of depository listing all securities, and the market value thereof, which are securing local agency deposits together with the total deposits then secured by the pool, to determine whether there is lr compliance with Section 53652. These reports may be required whenever deemed necessary by the administrator, but shall be required at least four times each year at the times designated by the Comptroller of the Currency for reports from national banking associations. These reports V shall be filed in the office of the administrator by the depository within 20 business days of the date the administrator calls for the report. V Page 32 of 40 i1 b (f) The administrator may have access to reports of examination made by the Comptroller of the Currency insofar as the reports relate to national banking association trust department activities which are subject to this article. (g)(1) The administrator shall require the immediate substitution of an eligible security, where b the substitution is necessary for compliance with Section 53652, if (i) the administrator determines that a security listed in Section 53651 is not qualified to secure public deposits, or(ii) a treasurer, who has deposits secured by the securities pool, provides written notice to the administrator and the administrator confirms that a security in the pool is not qualified to secure public deposits. (2) The failure of a depository to substitute securities, where the administrator has required the substitution,shall be reported by the administrator promptly to those treasurers having money on deposit in that depository and, in addition,shall be reported as follows: - (A) When that depository is a national bank, to the Comptroller of the Currency of the United States. - (B)When that depository is a state bank,to the Commissioner of Financial Institutions. w (C)When that depository is a federal association,to the Office of Thrift Supervision. (D)When that depository is a savings association,to the Commissioner of Financial Institutions. -- (E)When that depository is a federal credit union,to the National Credit Union Administration. .d (F) When that depository is a state credit union or a federally insured industrial loan company, to -- the Commissioner of Financial Institutions. (h) The administrator may require from each treasurer a registration report and at appropriate times a report stating the amount and location of each deposit together with other information deemed necessary by the administrator for effective operation of this article. The facts recited in any report from a treasurer to the administrator are conclusively presumed to be true for the single purpose of the administrator fulfilling responsibilities assigned to him or her by this article d and for no other purpose. (i)(1) If, after notice and opportunity for hearing, the administrator finds that any depository or agent of depository has violated or is violating, or that there is reasonable cause to believe that _ any depository or agent of depository is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued under any of those sections, the administrator may order the depository or agent of depository to cease and desist from the violation or may by order suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. r �r __ Page 33 of 40 (2)(A) If the administrator makes any of the findings set forth in paragraph (1) with respect to y any depository or agent of depository and, in addition,finds that the violation or the continuation of the violation is likely to seriously prejudice the interests of treasurers, the administrator may order the depository or agent of depository to cease and desist from the violation or may suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. (B) Within five business days after an order is issued under subparagraph (A), the depository or agent of depository may file with the administrator an application for a hearing on the order. The V administrator shall schedule a hearing at least 30 days,but not more than 40 days, after receipt of an application for a hearing or within a shorter or longer period of time agreed to by a depository or an agent of depository. If the administrator fails to schedule the hearing within the specified or agreed to time period, the order shall be deemed rescinded. Within 30 days after the heating, the administrator shall affirm, modify, or rescind the order; otherwise, the order shall be deemed rescinded. The right of a depository or agent of depository to which an order is issued under b subparagraph(A)to petition for judicial review of the order shall not be affected by the failure of the depository or agent of depository to apply to the administrator for a hearing on the order pursuant to this subparagraph. + (3) Whenever the administrator issues a cease and desist order under paragraph (1) or (2), the administrator may in the order restrict the right of the depository to withdraw securities from a security pool; and, in that event, both the depository to which the order is directed and the agent of depository which holds the security pool shall comply with the restriction. (4) In case the administrator issues an order under paragraph (1) or (2) suspending or revoking the authorization of an agent of depository, the administrator may order the agent of depository L at its own expense to transfer all pooled securities held by it to such agent of depository as the administrator may designate in the order. The agent of depository designated in the order shall accept and hold the pooled securities in accordance with this article and regulations and orders issued under this article. 0) In the discretion of the administrator, whenever it appears to the administrator that any person has violated or is violating, or that there is reasonable cause to believe that any person is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued thereunder, the administrator may bring an action in the name of the people of the State of California in the superior court to enjoin the violation or to enforce compliance with those sections or any regulation or order issued thereunder. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted, and the court may ]J not require the administrator to post a bond. (k)In addition to other remedies,the administrator shall have the power and authority to impose le+ the following sanctions for noncompliance with the sections specified in subdivision (a) after a hearing if requested by the party deemed in noncompliance. Any fine assessed pursuant to this ' subdivision shall be paid within 30 days after receipt of the assessment. W (1) Assess against and collect from a depository a fine not to exceed two hundred fifty dollars ($250) for each day the depository fails to maintain with the agent of depository securities as 6-1 required by Section 53652. V Page 34 of 40 1 � LI ., (2)Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (b) of Section 53663 the depository negligently or willfully fails to file in the office of the administrator a written report required by that section. (3) Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (a) that a depository negligently or willfully fails to file in the office of the administrator a written report required by that subdivision. (4) Assess and collect from an agent of depository a fine not to exceed one hundred dollars ($100) for each day the agent of depository fails to comply with any of the applicable sections specified in subdivision(a)or any applicable regulation or order issued thereunder. (1)(1) In the event that a depository or agent of depository fails to pay a fine assessed by the administrator pursuant to subdivision (k) within 30 days of receipt of the assessment, the -, administrator may assess and collect an additional penalty of 5 percent of the fine for each month m or part thereof that the payment is delinquent. (2) If a depository fails to pay the fines or penalties assessed by the administrator, the w administrator may notify local agency treasurers with deposits in the depository. (3) If an agent of depository fails to pay the fines or penalties assessed by the administrator, the administrator may notify local agency treasurers who have authorized the agent of depository as provided in Sections 53649 and 53656,and may by order revoke the authorization of the agent of -- depository as provided in subdivision(i). § 53663. Determination of amounts to be deposited as inactive and active deposits r„ (a) Each agent of depository shall report in writing to the administrator within two business days after any withdrawal, substitution or addition of pooled securities and shall state the name and market value of the securities withdrawn, substituted or added together with the total deposits then secured by the pool. This information shall be available from the administrator to the treasurer upon request. w (b)Each depository shall report in writing to the administrator weekly,giving the total amount of all deposits held by such depository pursuant to this article. Such report shall be as of close of business on Wednesday of each week and shall be delivered to the office of the administrator or deposited in the United States mail,postage prepaid, addressed to the office of the administrator, _ within five business days. Where there has occurred no change in the deposits required to be held by the depository pursuant to this article, the report required by this subdivision need only �..+ state that fact. § 53664. Individual reports; privileged status The individual reports specified in Sections 53654, 53660, 53661, and 53663 are not public documents and are not open to inspection by the public. w §53665. Default by depository; payment by agent of depository;excess funds; drawing on letter of credit _. Page 35 of 40 r If a depository fails to pay all or part of the deposits of a local agency secured by pooled d securities in accordance with the contract provided for in Section 53649, and on demand of its treasurer or other authorized official and the treasurer files a report with the administrator, or if 1+ the depository fails: (a)In case the pooled securities consist of securities other than securities of the class described in subdivision (p) of Section 53651, the administrator shall order the agent of depository holding d the pooled securities to convert into money that portion of the pooled securities necessary to produce an amount equal to the sum of (i) the deposits of the local agency, (ii) any accrued interest due on the deposits, and (iii) the reasonable expenses of the agent of depository in u complying with the order of the administrator and to pay the sum of items (i) and (ii) to the treasurer in satisfaction of the deposits. The agent of depository shall be reimbursed out of the L proceeds of the conversion for its reasonable expenses in complying with the order of the administrator, as approved by the administrator. Any excess moneys resulting from the conversion shall be retained by the agent of depository as part of the securities pool until the b depository substitutes for the excess moneys securities having a market value sufficient to bring the total of pooled securities up to the amount required by Section 53652. (b) In case the pooled securities consist of a security of the class described in subdivision (p) of L Section 53651,the administrator shall draw on the letter of credit an amount equal to the sum of (i) the deposits of the local agency, (ii) any accrued interest on the deposits, and (ui) the reasonable expenses of the administrator in paying the deposits and pay the sum of items (i) and b (ii)to the treasurer in satisfaction of the deposits. § 53666. Liability of administrator The only liability that shall attach to the administrator as the result of the operation of this article y is that which would attach as a result of other laws of this state. § 53667. Expenses of administrator; levy of assessment on depositories; payments; penalty (a)Expenses incurred by the administrator in carrying out the duties and responsibilities assigned to the administrator by the sections specified in subdivision(a) of Section 53661, shall be bome y by the Local Agency Deposit Security Fund, which is hereby created and continuously appropriated to the administrator for the administration of the sections specified in subdivision (a) of Section 53661. This fund shall consist of fines levied pursuant to Section 53661, fees collected pursuant to the sections specified in subdivision (a)of Section 53661, and assessments levied pursuant to this section. L (b) Each fiscal year the administrator shall levy an assessment on a pro rata basis on those depositories which at any time during the preceding fiscal year held local agency deposits. The total assessment levied on all of those depositories shall be in an amount which, when added to N the amount of fines and fees that the administrator estimates will be collected during the fiscal year when the assessment is levied, is sufficient in the judgment of the administrator to meet the § i expenses of the administrator in administering the sections specified in subdivision(a)of Section L 53661 and to provide a reasonable reserve for contingencies. The basis of the apportionment of the assessment among the depositories assessed shall be the proportion that the average amount of local agency deposits held by each of those depositories bears to the average total amount of local agency deposits held by all of those depositories as shown by the reports of depositories to the administrator for the preceding fiscal year, as required in subdivision (e) of Section 53661; L� Page 36 of 40 L provided, however, that the amount of the assessment levied on each of those depositories shall be not less than twenty-five dollars ($25). .. (c) The administrator shall notify each depository by mail of the amount levied against it. The depository shall pay the amount levied within 20 days after such notice into the Local Agency Deposit Security Fund for the administration of the sections specified in subdivision (a) of m Section 53661. if payment is not made to the administrator within such time, the administrator shall assess and collect, in addition to the annual assessment, a penalty of 5 percent of the assessment for each month or part thereof that the payment is delinquent. If a depository fails to .. pay the assessment or penalties assessed by the administrator, the administrator may notify local agency treasurers with deposits in the depository. § 53669. Responsibility for money on deposit The treasurer or other authorized official is not responsible for money while it is deposited pursuant to this article. § 53676. Treasurer's responsibility for securities The treasurer is not responsible for securities delivered to and receipted for by any bank, savings and loan association, credit union, federally insured industrial loan company,or trust company. § 53678. Charges for handling and safekeeping of securities ' The charges for the handling and safekeeping of any such securities are not a charge against the -- treasurer but shall be paid by the depository owning the securities. r § 53679. Money under control or coming into possession of officers and employees other than treasurer w So far as possible all money belonging to a local agency under the control of any of its officers or employees other than the treasurer or a judge or officer of a justice or municipal court shall, ,p and all money coming into the possession of a judge or officer of a justice or municipal court may,be deposited as active deposits in the state or national bank, inactive deposits in the state or - - national bank or state or federal association, federal or state credit union, or federally insured industrial loan company in this state selected by the officer,employee, or judge of the court. For purposes of this section, an officer or employee of a local agency and a judge or officer of a justice or municipal court are prohibited from depositing local agency funds or money coming r, into their possession into a state or federal credit union if an officer or employee of the local agency, or a judge or officer of a justice or municipal court,also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or supervisory .e committee, of the particular state or federal credit union. Such money is subject to this article except: .e (a) Deposits in an amount less than that insured pursuant to federal law are not subject to this article. r For deposits in excess of the amount insured under any federal law a contract in accordance with Section 53649 is required and the provisions of this article shall apply. m Page 37 of 40 (b) Interest is not required on money deposited in an active deposit by a judge or officer of a u justice or municipal court. (c) Interest is not required on money deposited in an active deposit by an officer having control Lr of a revolving fund created pursuant to Chapter 2 (commencing with Section 29300) of Division 3 of Title 3. (d) Interest is not required on money deposited in an active deposit by an officer having control of a special fund established pursuant to Articles 5 (commencing with Section 29400) or 6 1 (commencing with Section 29430)of Chapter 2 of Division 3 of Title 3. V § 53679.1. Accounting practices;declaration of existing law 1 Notwithstanding any other provision of law, the accounting practices of each county utilized prior to the effective date of this section relating to interest on trust funds shall be deemed ' appropriate and to have been made under the direction of the board of supervisors of that county. This section is declaratory of the law in existence prior to the enactment of this section. § 53680. Money under control of tax collectors A tax collector of a local agency shall immediately deposit with the treasurer all money under his control, unless he deposits the money in a depositary pursuant to this.article under permission Jul and instructions of the treasurer having authority to make such deposit. § 53681. Deposit in other than prescribed manner; forfeiture of office An officer or employee of a local agency who deposits money belonging to, or in the custody of, 1� the local agency in any other manner than that prescribed in this article is subject to forfeiture of his office or employment. d § 53682. Contracts for services by depository; requirements Notwithstanding any other provision in this article except Section 53652, the treasurer may ,LI deposit moneys in and enter into contracts with any depository, as defined in subdivision (c) of Section 53630, for services to be rendered by that depository that in the treasurer's judgment are to the public advantage. One copy of each contract entered into under this section shall be filed {el with the auditor or corresponding officer of the local agency. The contract shall: (a)Fix the duration of compensating deposits,if any. L (b)Fix the interest rate of that compensating deposit, if any. (c)Specify the services to be rendered by the depository. I6� (d) Indicate whether the depository shall bear the expenses of transportation of the money to and +'+ from the depository. (a)Fix the consideration payable by the agency for such services. V Page 38 of 40 I m, (f) Specify who may deposit moneys into the treasurer's active account and how those persons are to make those deposits. § 53683. Consideration as costs applied pro rats against earned interest Notwithstanding any other provision in this article, the consideration payable by the agency as specified in subdivision (e) of Section 53682 shall be paid by the treasurer by applying such consideration as costs applied on a pro rata basis against the interest earned by all the agencies for which the treasurer invests. § 53684. Local agencies;excess funds; investment by county treasurer (a) Unless otherwise provided by law, if the treasurer of any local agency, or other official responsible for the funds of the local agency, determines that the local agency has excess funds which are not required for immediate use, the treasurer or other official may, upon the adoption of a resolution by the legislative or governing body of the local agency authorizing the _. investment of funds pursuant to this section and with the consent of the county treasurer, deposit the excess funds in the county treasury for the purpose of investment by the county treasurer pursuant to Section 53601 or 53635. (b) The county treasurer shall, quarterly, apportion any interest or other increment derived from the investment of funds pursuant to this section in an amount proportionate to the average daily balance of the amounts deposited by the local agency and district. Prior to distributing that interest or increment, the county treasurer may deduct the actual costs incurred by the county in administering this section in proportion to the average daily balance of the amounts deposited by the local agency. (c)The treasurer or other official responsible for the funds of the local agency may withdraw the funds of the local agency at any time but shall give the county treasurer 30 days' written notice of his or her intent to withdraw the funds. (d) Any moneys deposited in the county treasury for investment pursuant to this section are not subject to impoundment or seizure by any county official or agency while the funds are so deposited. (a) This section is not operative in any county until the board of supervisors of the county, by majority vote,adopts a resolution making this section operative in the county. (f)It is the intent of the Legislature in enacting this section to provide an alternative procedure to Section 51301 for local agencies to deposit money in the county treasury for investment ,. purposes. Nothing in this section shall,therefore, be construed as a limitation on the authority of a county and a city to contract for the county treasurer to perform treasury functions for a city pursuant to Section 51301. w __ Page 39 of 40 I : § 53686.Local agency fund audit reports (a) Any audit conducted relating to the investment of local agency funds and other funds by the county treasurer in the county fund maintained pursuant to Section 53684 shall be rendered to L the depositary, the auditor, the controller, the secretary, or the correspo ding officer of the local agency,the treasurer or other official responsible for the funds of any to agency that has funds on deposit in the county treasury, and the presiding judge of any superior court that has ordered, L pursuant to Section 3412, Section 3413, or Section 3611 of the Probat Code, that assets of an estate be deposited with the county treasurer for deposit or investment. I (b) Any report rendered pursuant to Section 53646 shall be provided to the treasurer or other official responsible for the funds of any local agency that has funds on deposit in the county I j treasury. J.+ U Source: West's Annotated California Codes, 1998 H:\wp.dinUnUlO*.Zak\COALSMVCODE3A.DOC • li w u u u L I ( O V Page 40 of 40 �i APPENDIX"D" Li L ti t :d APPENDIX "D" GLOSSARY OF INVESTMENT TERMS ACCRUED INTEREST. The amount of interest that is earned but unpaid since the last �- interest payment date. ADJUSTABLE RATE NOTE. (See Floating Rate Note) AMORTIZED COST. Measure of the cost of a security whereby the cost value will change over time as the discount or premium paid for the security is gradually incorporated into the principal value as interest payments are received. r, ASKED PRICE. The price at which a seller offers to sell a security. ASSET-BACKED SECURITIES. Securities collateralized with consumer receivables, such as automobile loans, credit card receivables, or home equity loans, which are owned by the issuer, but placed with a trustee for the benefit of the investor. AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time _ to expected receipt of principal payments, weighted by the amount of principal expected. BANKER'S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of ® the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor. BASIS POINT. When a yield is expressed as 7.32%, the digits to the right of the decimal point are known as basis points. One basis point equals 1/100 of one percent. Basis points are used more often to describe changes in yields on bonds, notes and other fixed-income securities. BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index which reflects the mix of securities allowed under a specific investment policy. BID PRICE. The price at which a buyer offers to buy a security. BOOK ENTRY. The system, maintained by the Federal Reserve, by which most money market securities are "delivered" to an investor's custodian bank. The Federal Reserve maintains a computerized record of the ownership of these securities, and records any changes in ownership corresponding to payments made over the Federal Reserve wire (delivery versus payment). These securities do not receive physical certificates. Page 1 of 9 Iu BOOK VALUE. The original cost of the investment, plus accrued interest and L amortization of any premium or discount. BROKER. A broker brings buyers and sellers together for a transaction for which the V broker receives a commission. A broker does not sell securities from his own position. BULLET STRUCTURE. A portfolio strategy in which a manager overweights both the L short and long end of the yield curve, and underweights the middle part of the curve. L CALLABLE BONDS. Bonds which may be redeemed by the Issuing company prior to i the maturity date. L CAPITAL GAINILOSS. The profit or loss realized from the sale of a capital asset. L CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. w COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public moneys. 4 COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds which redistribute the cash flows of mortgage securities (and whole loans) to create L securities which have different levels of prepayment risk, as compared to the underlying mortgage securities COMMERCIAL PAPER. The short-term unsecured debt of corporations. lit CONDITIONAL PREPAYMENT RATE (CPR). A measure of mortgage prepayment L activity. It assumes that a constant fraction of the principal prepays each month and is based on the previous month's remaining balance. The rate is expressed as an annualized percentage. For instance, a CPR of 6% indicates that each month 6% of the remaining principal balance prepays on an annualized basis. CONSUMER RECEIVABLE-BACKED BONDS. (See Receivable-Backed Securities) . CONVEXITY. The rate of change in a bond's price as duration changes. It is a is particularly important component of price change for longer term bonds, or for large changes in interest rates. L COST YIELD. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. U 1 v Page 2 of 9 J — COUPON. The rate at which a bond pays interest. CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. CUSTODIAN. A bank or other financial institution that keeps custody of stock certificates and other assets. DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. DEBENTURE. A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT (DVP). Delivery of securities with a simultaneous exchange of money for the securities. DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components ("Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index. DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as Tbills and banker's acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. DOLLAR-WEIGHTED AVERAGE MATURITY. A calculation that expresses the .,average maturity" of an investment portfolio using each investment's maturity weighted by the size of that investment Page 3 of 9 � 1 DURATION. The weighted average time to maturity of a bond where the weights are I the present values of the future cash flows. Duration measures the price L� sensitivity of a bond to changes in interest rates. (See modified duration and effective duration). I L� EFFECTIVE DURATION. Measures the price volatility of a fixed income security that contains embedded options. A more accurate measure of price volatility when the cash flow characteristics of the bond change when interest rates shift. L FEDERAL FUNDS RATE. The rate of interest charged by banks for short term loans L to other banks. It is established by the Federal Reserve Bank through open- market operations. L FEDERAL OPEN MARKET COMMITTEE(FOMC). A committee of the Federal Reserve Board which establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. FEDERAL RESERVE SYSTEM. A U.S. centralized banking system which has supervisory powers over the 12 Federal Reserve banks and about 6,000 member banks. FIXED-INCOME SECURITIES. Securities which return a fixed income over a specified Li period. tit FLOATING RATE NOTE. A debt security whose interest rate is reset periodically (monthly, quarterly, annually) and is based on a market index(e.g. Treasury bills, LIBOR, etc.). INTEREST. The amount earned while owning a debt security, generally calculated as LJ a percentage of the principal amount. LADDER STRUCTURE. A portfolio strategy in which a manager attempts to weight securities equally across the yield curve. LEVERAGE. Borrowing funds in order to invest in securities wl llch have the potential to pay earnings at a rate higher than the cost of borrowing. L LIQUIDITY. The speed and ease with which an asset can be converted to cash. LOCAL AGENCY. County, city, city and county, including a chartered city or county, school district, community college district, public district, county board of ' education, county superintendent of schools, or any public or municipal t corporation. MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. I� Page 4 of 9 J MARK-TO-MARKET. The market valuation for every security in a portfolio used in determining Net Asset Value (NAV). MARKET VALUE. The price at which a security can be traded. MATURITY. The final date upon which the principal of a security becomes due and payable. MEDIUM TERM NOTES (MTN). Debt securities issued by a corporation or depository institution with a maturity ranging from nine months to five years. The term "medium-term notes" refers to the time it takes for an obligation to mature, and includes other corporate debt securities originally issued for maturities longer than five years, but which have now fallen within the five year maturity range. MTNs issued by banks are also called "bank notes." MODIFIED DURATION. Measures the percentage price volatility of a fixed income security or portfolio. Modified duration approximates the change in price for small changes in interest rates, assuming that the cash flow characteristics do not change when the yield curve shifts. MONEY MARKET. The market in which short term debt instruments (Tbills, discount notes, commercial paper and banker's acceptances) are issued and traded. MORTGAGE PASS THROUGH SECURITIES. Securities collateralized with residential mortgage loans, the principal and interest payments of which are distributed, or "passed-through' to the investor. Many of these securities are issued by agencies of the federal government, including GNMA and FHLMC. MONEY MARKET MUTUAL FUNDS. An investment company that pools money from investors and invest in a variety of short-term money market instruments. The _ Net Asset Value (NAV) of these funds should remain at$1,00; however, it is not guaranteed. MOODY'S INVESTORS SERVICE, INC. (See Nationally Recognized Rating Services) MUNICIPAL DEBT. Issued by public entities to meet capital needs. NATIONALLY RECOGNIZED RATING SERVICES. Firms that review the creditworthiness of the issuers of debt securities, and express their opinion in the form of letter ratings (e.g. AAA, AA, A, BBB, etc.) The primary rating agencies include Standard & Poors Corporation; Moody's Investor Services, Inc.; Fitch Investors Service; Duff& Phelps Investment Service; Thompson BankWatch and International Bank Credit Analyst. Page 5 of 9 LI NEGATIVE CONVEXITY. A phenomenon associated with bonds which have embedded call options, it measures the rate at which duration of a callable bond u gets smaller as interest rates fall. Negative convexity is an undesirable characteristics in bonds. ', LI NEGOTIABLE CD. (See Certificates of Deposit) I NET ASSET VALUE (NAV). A per-share valuation of a mutual fund based on total assets minus total liabilities. NON-CALLABLE. Bond that is exempt from any kind of redemption for a stated time L period. I L+ OFFER PRICE. The price asked by a seller of securities. OPTION ADJUSTED SPREAD. A measure of the value of a bond relative to a u benchmark security, which takes into account the value of the embedded option inherent in any bond that has uncertain cash flows (i.e., callable bonds). PAR VALUE. The amount of principal which must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond. PHYSICAL DELIVERY. The delivery of an investment to a custodian bank in the form of a certificate and/or supporting documents evidencing the investment (as opposed to "book entry" delivery). PORTFOLIO. A group of securities held by an investor. L PREMIUM. The difference between the par value of a bond and the market value of the bond, when the market value is above par. PRICE RISK. The risk that the price of a bond sold prior to maturity will be less than the price at which the bond was originally purchased. L PRIMARY DEALER. A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the L Federal Reserve Bank of New York, and are subject to its informal oversight. PREMIUM. The difference between the par value of a bond and the market value of jd the bond, when the market value is above par. PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities. PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. v Page 6 of 9 L .. PRUDENT INVESTOR RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." PRIME RATE. The interest rate banks charge the biggest borrowers with the best credit ratings. PRINCIPAL. The face value or par value of an investment. PSA MASTER REPURCHASE AGREEMENT. A written contract covering all future transactions between the parties to repurchase agreements that establishes each party's rights in the transactions. PSA STANDARD PREPAYMENT MODEL (PSA). A measure of mortgage ti prepayment activity. The model is expressed as a monthly series of annual prepayment rates. The series begins at .2% per year in the first month, and increases by .2% per year in each successive month until month 30, where it levels out at 6% per year until maturity. This series is labeled 100 PSA. 200 PSA doubles this series, and 50 PSA would cut the series in half. REALIZED RETURN. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities which have not been sold from the portfolio. RECEIVABLE-BACKED SECURITIES. Securities collateralized with consumer receivables, such as automobile loans, credit card receivables, or home equity m loans, which are owned by the issuer, but placed with a trustee for the benefit of the investor. RECEIVABLE PASS-THROUGH CERTIFICATE. A debt obligation that is backed by a portfolio of receivables, normally issued by a bank of financial institution. The interest and principal of the obligation is paid out of the cash flow generated by the receivables portfolio. REGISTERED STATE WARRANT. A short-term obligation of a stale governmental _ body issued in anticipation of revenue. - REINVESTMENT RISK. The risk that coupon payments (or other payments received) cannot be reinvested at the same rate as the initial investment. Page 7 of 9 REPURCHASE AGREEMENT (RP OR REPO). The purchase of securities, on a temporary basis, with the seller's simultaneous agreement to repurchase the securities at a later date at a specified price that includes interest for the buyers holding period. In essence, this is a collateralized investment whereby the security "buyer' lends the "seller' money for the period of the agreement. L REVERSE REPURCHASE AGREEMENT(REVERSE REPO). A short-term transaction L in which an investor (seller) sells a government security it owns to a bank or dealer (buyer) under an agreement in which the buyer agrees to sell the security back to the investor on a specified date, at an agreed-upon interest rate. L; RULE G-37 OF THE MUNICIPAL SECURITIES RULEMAKING BOARD. Federal regulations to sever any connection between the making of political contributions and the awarding of municipal securities business. I SAFEKEEPING. A service to bank customers whereby securities are held by the bank L In the customer's name. � i SCENARIO ANALYSIS. A portfolio management technique that measures the V performance of the portfolio under varying scenarios including, but not limited to, interest rate movements, spread changes and nonparallel yield curve shifts. L SECURITIES & EXCHANGE COMMISSION (SEC). The federal agency responsible for supervising and regulating the securities industry. L STANDARD & POOR'S CORPORATION. (See Nationally Recdgnized Rating Services) L STRUCTURED NOTE. A complex, fixed income instrument which pays interest based on a formula tied to other interest rates, commodities or indices. Examples L include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters,"which pay interest based on the relationship between two L other interest rates -for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. .r THIRD-PARTY CUSTODIAL AGREEMENT. (See Custodian) 60 TOTAL RATE OF RETURN. A measure of a portfolio' performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the L ending value, and includes interest earnings and realized 'lend unrealized gains and losses on the portfolio. TRADE DATE. The date and time corresponding to an investoe*commitment to buy or sell a security. V Page 8 of 9 L U. S. GOVERNMENT AGENCY SECURITIES. Debt securities issued by U.S. Government sponsored enterprises and federally related institutions. These government agencies include: Federal Home Loan Banks (FHLB); Federal Home Loan Mortgage Corporation (FHLMC, or"Freddie Mac"); Federal National Mortgage Association (FNMA, or"Fannie Mae"); Federal Farm Credit Banks (FFCB); Resolution Trust Corporation (RTC); and Tennessee Valley Authority (TVA). U.S. TREASURY SECURITIES. Securities issued by the U. S. Treasury and backed by the full faith and credit of the United Stales. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the U.S. and overseas. The Treasury issues both discounted w securities and fixed coupon notes and bonds. Treasury Bills. Non-interest-bearing discount securities with maturities under one year issued by the U. S. Treasury to finance the national debt. Treasury Notes. Interest-bearing obligations of the U. S. Treasury with w maturities ranging from two to ten years from date of issue. Treasury Bonds. Interest-bearing obligations issued by the U. S. Treasury with W maturities that range from ten to thirty years from date of issue. VARIABLE RATE NOTE. (See Floating Rate Note) w VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. YIELD TO MATURITY (YTM). The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. Yield to maturity (at market). The discount rate that equates the present value of the promised cash flow (interest payments and redemption value)to the market price, assuming that all cash flows are invested at the YTM rate. w Yield to maturity (at purchase cost). The YTM that equates to the purchase price of the security. w YIELD. The annual rate of return on a debt investment computed as though held to maturity expressed in %. ZERO-COUPON BONDS/U.S. TREASURY STRIPS. A bond which represents ownership of a single coupon or principal payment due on a U.S. Treasury bond. "Zeros" or"strips" mature at face value at a specified date in the future and make no payments until that date. They always sell at a discount from face value. .d Page 9 of 9 Orange County Sanitation District (714) 962-2411 mailing address: P.O. Box 8127 Fountain Valley, California 92728-8127 street address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 OCSD 7/29/98 JOINT CHAIRMAN'S REPORT JOINT BOARD MEETING OF JULY 29, 1998 1 . ON TUESDAY, SEVENTEEN MEMBERS OF THE ORANGE COUNTY GRAND JURY WERE HERE AT OUR INVITATION. STAFF AND I HAD THE PLEASURE OF TALKING WITH THEM ABOUT THE DISTRICT'S OPERATION, GOVERNANCE, AND THE BUDGET. THEY RESPONDED POSITIVELY TO THE GROUNDWATER REPLENISHMENT PROJECT; OUR CONTINUING EFFORTS TO IMPROVE EFFICIENCIES; AND OUR REGIONAL APPROACH TO WATERSHED AND WASTEWATER MANAGEMENT. THEY ALSO WENT ON A TOUR OF PLANT 1 . 2. AS MANY OF YOU KNOW, THE OMTS, PDC AND FAHR COMMITTEES WILL NOT BE MEETING IN AUGUST. HOWEVER, THE STEERING COMMITTEE WILL MEET AT 5 P.M. ON WEDNESDAY, AUGUST 26TH, BEFORE THE BOARD MEETING. i 3. 1 HAVE ASKED NORM ECKENRODE TO SERVE ON THE STRATEGIC PLAN AD HOC COMMITTEE. NORM IS A MEMBER OF THE JOINT OCSD/OCWD COORDINATION COMMITTEE FOR THE GROUNDWATER REPLENISHMENT PROJECT, AND HE CAN PROVIDE ADDITIONAL INFORMATION AND INSIGHT TO THE AD HOC COMMITTEE. 4. ON SATURDAY, AUGUST 22ND AT 9 A.M., THERE WILL BE ANOTHER BOARD WORKSHOP. STAFF WILL BE PRESENTING AN UPDATE OF THE STRATEGIC PLAN, AS WELL AS DISCUSSING THE RECOMMENDATIONS OF THE PLANNING ADVISORY COMMITTEE. AS DIRECTORS, WE ARE RESPONSIBLE FOR MAKING POLICY DECISIONS THAT GUIDE THIS AGENCY. THROUGH WORKSHOPS LIKE THIS, WE CAN GAIN THE KNOWLEDGE NECESSARY TO MAKE THOSE DECISIONS. IT PROVIDES A FORUM TO DISCUSS IN DETAIL ALL OF THE ISSUES THAT GO INTO WAKING THE RIGHT CHOICE' REGARDING THE FUTURE DIRECTION OF THE DISTRICT. z I URGE ALL OF YOU TO ATTEND THIS VERY IMPORTANT WORKSHOP ON SATURDAY, AUGUST 22ND. 5. IN DON'S BOARD LETTER A POSTCARD WAS ATTACHED THAT ANNOUNCED THE GREAT TOILET EXCHANGE. THIS IS A JOINT PROGRAM BETWEEN THE DISTRICT AND THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY. IF YOU WOULD LIKE ADDITIONAL POSTCARDS FOR YOUR CITY OFFICES, CONTACT MICHELLE TUCHMAN AND SHE WILL PROVIDE THEM. 6. 3 REPORT OF THE STEERING COMMITTEE MEETING HELD AT 5 P.M. TODAY STEERING COMMITTEE DISCUSSION ITEMS STAFF UPDATED THE COMMITTEE ON THE SPILL THAT OCCURRED LAST WEEK IN NEWPORT BEACH NEAR THE INTERSECTION OF PACIFIC COAST HIGHWAY AND NEWPORT BOULEVARD. THE SPILL, ABOUT 100,000 GALLONS, RESULTED WHEN A SUBCONTRACTOR OF THE GAS COMPANY DRILLED THROUGH OUR 24-INCH FORCE MAIN. ABOUT HALF OF THE WASTEWATER WENT INTO THE NEWPORT BAY, AND THE OTHER HALF WAS SPREAD ON THE ROADWAY. STAFF WILL BE SEEKING REIMBURSEMENT FROM THE GAS COMPANY OF EXPENSES DURING THE CLEANUP. THE BAY WAS CLOSED BY THE HEALTH DEPARTMENT BUT WAS REOPENED YESTERDAY. DISCUSSION ITEMS: A. BLAKE ANDERSON PROVIDED AN UPDATE ON STAFF AND GENERAL COUNSEL'S RECOMMENDATION TO APPROVE THE DIMINIMUS SETTLEMENT AGREEMENT a WITH OPERATING INDUSTRIES, INC., AN EPA SUPERFUND SITE. B. THE STEERING COMMITTEE HAS RECOMMENDED THAT FUTURE MEETINGS OF OMTS, PDC AND FAHR COMMITTEES WILL BE HELD IN THE BOARD ROOM. THIS WILL ALLOW FOR SEATING FOR ALL ATTENDEES. C. BLAKE ANDERSON UPDATED THE STEERING COMMITTEE ON THE POTENTIAL PROBLEMS REGARDING BIOSOLIDS DISPOSAL IN KERN COUNTY. HE WILL BE MAKING A REPORT TO YOU LATER IN THE MEETING. D. DON MCINTYRE DISCUSSED THE DART PRESENTATIONS THAT WERE MADE TO THE WORKING COMMITTEES. COMBINED STEERING AND AD HOC COMMITTEES DISCUSSION ITEMS A. JIM HERBERG PRESENTED A REVISED QUARTERLY STRATEGIC PLAN EVENTS SCHEDULE TO THE COMMITTEES FOR CONSIDERATION. s THE SCHEDULE WILL BE PUBLISHED AS PRESENTED FOR THE NEXT QUARTER. OR STAFF WILL MAKE ADDITIONAL REVISIONS BEFORE FINALIZING THE CALENDAR FOR THE NEXT QUARTER. THE COMMITTEE MET IN CLOSED SESSION AND ITS RECOMMENDATIONS WILL BE CONSIDERED BY THE DIRECTORS IN THIS MEETINGS CLOSED SESSION. s STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for the Regular Board Meeting of Orange County Sanitation District, to be held on 19Zwas duly posted for public inspection in the main lobby of the Districts' offices on 19 IN WITNESS WHEREOF, I have hereunto set my hand this a� day of 1s9� Penny M. Kytoj Secretary Board of Directors Orange County Sanitation District H.1WP.DTAXADMINWSAF0R WS\F27A AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 SPECIAL MEETING JULY 1, 1998—6:30 P.M. In accordance with the requirements of Califomia Government Code Section 549542, this agenda has been posted in the main lobby of the District's Administrative Offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Board Secretary. . In the event any matter not listed on this agenda is proposed to be submitted to the Board for discussion and/or action, it will be done in compliance with Section 54954.2(b) as an emergency item, or that there is a need to take immediate action which need came to the attention of the District subsequent to the posting of the agenda, or as set forth on a supplemental agenda posted not less than 72 hours prior to the meeting date. I, ----- ----- -- —...................._._--—----------- -- 1. Invocation and Pledge of Allegiance 2. Roll Call 3. Swearing in of Directors/Oaths of Office 4. Election of Chair 5. Election of Vice Chair 6. Adopt Resolution of Commendation, expressing appreciation to outgoing Joint Chairman John Collins. The Chair, General Manager and General Counsel present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. 7. Report of Chair; consideration of Resolutions or commendations, presentations and awards 8. Report of General Manager 9. Report of General Counsel 67/01/98 Page 2 of 9 10. Public Comments:All persons wishing to address the Board on specific agenda items or matters of general interest should do so at this time. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to five minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Board of Directors except as authorized by Section 54954.2(b). CONSENT CALENDAR (ITEM NOS. 11 —48) All matters placed on the Consent Calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director, staff member or member of the public in attendance, there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions Included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair, stale their name, address and designate by number the item to be removed from the Consent Calendar. The Chair will determine if any items are to be deleted from the Consent Calendar. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: 11. Adopt Resolution No. OCSD 98-1, Acknowledging the Final Approval of Districts' Reorganization DC97-30 by the Orange County Local Agency Formation Commission; Accepting the Terms of Orange County Local Agency Formation Commission Resolution DC97-30: and Approving All Powers, Rights, and Duties of County Sanitation Districts Nos. 1, 2, 3, 5,8, 7, 11, 13 and 14 of Orange County, California, Including that Certain General Assignment of Contracts,Agreements, Permits, and Other Obligations. 12. Adopt Resolution No. OCSD 98-2, Fixing and Establishing Rules of Procedure for the Conduct of District's Business. 13. Adopt Resolution No. OCSD 98-3, Establishing the Compensation and Expense Reimbursement Policies for its Directors. 14. Adopt Resolution No. OCSD 964, Approving Provisions for Satisfaction of Payment of FICA Taxes for Director-Employees Mandated by Federal Omnibus Budget Reconciliation Act of 1990. 15. Adopt Resolution No. OCSD 98-5, Adopting the 1998 Conflict of Interest Code. 07rov98 Page 3 of 9 16. Adopt Resolution No. OCSD 98-6, Reaffirming Resolutions Nos. 89-101 and 89-102 of its Predecessor Districts, County Sanitation Districts Nos. 1, 2,3, 5, 6, 7, 11, 13 and 14 of Orange County, Califomia, and Establishing the Orange County Sanitation District Master Plan. 17. Adopt Resolution No. OCSD 98-7, Approving California Environmental quality Act Guidelines Manual. 18. Adopt Resolution No. OCSD 98-8, Establishing Policies and Procedures for: (1) Selection and Procurement of Professional Engineering, Architectural, Environmental, Land Surveying and Construction Management Services; (2)Approval of Plans and Specifications; and (3) Approval of Construction Change Orders. 19, Adopt Resolution No. OCSD 98-9, Declaring a Policy Pertaining to Wastewater Management for Preserving Orange County's Coastal Ocean Waters, 20. Adopt Resolution No. OCSD 98-10, Approving Water Reclamation Policy. 21. Adopt Resolution No. OCSD 98-11,.Approving Policy Pertaining to Future Areas to be Served by the Orange County Sanitation District, 22. Adopt Resolution No. OCSD 98-12, Authorizing the District's General Manager to Establish Rules and Guidelines to Implement Board Policies and to Delegate His Authority to Staff. 23. Adopt Resolution No. OCSD 98-13, Adopting Rules of Procedure for Administrative Proceedings before the Board of Directors. 24. Adopt Resolution No. OCSD 98-14, Adopting Administrative Rules of Procedure re Proceedings for Permit Suspension, Permit Revocation and Appeal to the General Manager. 25. Adopt Resolution No. OCSD 98-15, Authorizing Acceptance of All Deeds or Grants Conveying Any Interest in or Easement Upon Real Estate for Public Purposes; Appointing and Authorizing the General Manager and Secretary of the Board of said District to Consent to such Deeds or Grants and to the Recordation Thereof on Behalf of the District and Authorizing the General Manager to Purchase Rights-of-Way and Easements. 26. Adopt Resolution No. OCSD 98-16, Pertaining to the Procedure for Destruction of Obsolete Records. 27, Adopt Resolution No. OCSD 98-17, Adopting Annual Fees for Mailing Agenda Packages and Supporting Documentation. 67/01/98 Page 4 of 9 28. Adopt Resolution No. OCSD 98-18, Approving Fountain Valley Specific Plan for Site Use and Development. 29. Adopt Resolution No. OCSD 98-19, Designating a District's Treasurer and Authorizing the District's Treasurer and the County of Orange Treasurerfrax Collector to Invest and/or Reinvest District Funds. 30. Adopt Resolution No. OCSD 98-20,Adopting District's Investment Policy Statement and Performance Benchmarks. 31. Adopt Resolution No. OCSD 98-21,Adopting a Purchasing System and Policies and Procedures Governing Purchases of Supplies, Services, and Equipment. 32. Adopt Resolution No. OCSD 98-22, Authorizing the Participation in the County of Orange Cooperative Purchasing Program. 33. Adopt Resolution No. OCSD 98-23, Adopting District's Procedures for Settlement of Claims Made Against the District; Settlement of Claims Made by the District; Collection of Delinquent Accounts Owing to the District; Settlement of Civil or Administrative Enforcement Actions; and Settlement of Worker's Compensation Claims. 34. Adopt Resolution No. OCSD 98-24, Authorizing the Establishment of Miscellaneous Banking Accounts; Establishing Policies Governing Transactions Related Thereto; and Designating Employees to Act on District's Behalf for said Account. 35. Adopt Resolution No. OCSD 98-25, Authorizing a Petty Cash Fund. 36. Adopt Resolution No. OCSD 98-26, Dedicating Revenues for Payment of Obligations. 37. Adopt Resolution No. OCSD 98-27, Appointing Representatives to Act as District's Agents in Small Claims Court. 38. Adopt Resolution No. OCSD 98-28, Authorizing the General Manager to Approve Supplemental Agreements to Construction Contracts for Substitution of Securities. 39. Adopt Resolution No. OCSD 98-29, Adopting a Course of Construction Master Insurance Program for Future Construction Projects. 07ro1/98 Page 5 of 9 40. Adopt Resolution No. 98-30, Establishing the Annual Appropriations Limit for Fiscal Year 1998-99 for the District in Accordance with the Provisions of Division 9 of Title 1 of the California Government Code. 41. Adopt Resolution No. 98-31,Approving the Operating, Capital, Debt/COP Service and Self- Insurance Budgets for 1998-99, as follows: Joint Works OperatingNVorking Capital $45,200,000 Worker's Compensation Self Insurance $565,000 Public Liability Self-Insurance $335,000 Joint Works Capital Outlay Revolving $49,284,000 Collection System Zone Operating $10,180,000 Collection System Zone Capital Improvements $22,904,000 Debt/COP Service $36,459,000 42. Adopt Resolution No. OCSD 98-32, Authorizing Future Capital Expenditures to be Reimbursed from Future Long-Tenn Financings. 43. Adopt Resolution No. OCSD 98-33,Adopting a Human Resources Policies and Procedures Manual Providing for Classification, Compensation, and Other Terms, Conditions, Policies, and Procedures Government Employment of District Employees. 44. Adopt Resolution No. OCSD 98-34, adopting Resolution No. 75-127 by reference, a Joint Resolution of the Boards of Directors of County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 13 &14, of Orange County, California, Establishing Guidelines for Employee Relations. 45. Adopt Resolution No. OCSD 98-35,Approving Memoranda of Understanding Between the District and the Designated Employee Units. 46. Adopt Resolution No. OCSD 98-36,Adopting the District's Deferred Compensation Plan for its Officers and Employees. 07/01198 Page 6 of 9 47. Adopt Resolution No. OCSD 9B-37, Reaffirming and Approving Previous Agreements Between and Among Irvine Ranch Water District(IRWD), County Sanitation District No. 14 of Orange County, California, and County Sanitation Districts of Orange County, California, Relating to Ownership Interests, Capacity Rights and Related Administrative Subjects. 48. Adopt Resolution No. OCSD 98-38, Designating the District's Director of Engineering as having the Delegated Authority to Accept Plans for the Excavation of Any Trench or Trenches Five Feet or More In Depth for Public Works Contracts of$25,000.00 or more. END OF CONSENT CALENDAR 49. Consideration of items deleted from Consent Calendar, if any. 07rov98 Page 7 of 9 NON-CONSENT CALENDAR 50. Adopt Ordinance No. OCSD-01, Adopting Wastewater Discharge Regulations as a Re-Enactment of the Regulations Adopted and in Effect by Predecessor Sanitation Districts: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-01 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-01. d. Motion to adopt Ordinance No. OCSD-01 as an urgency measure. 51. Adopt Ordinance No. OCSD-02, Establishing Speed Revenue Areas Within the District: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-02 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-02. d. Motion to adopt Ordinance No. OCSD-02 as an urgency measure. 52. Adopt Ordinance No. OCSD-03, Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-03 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-03. d. Motion to adopt Ordinance No. OCSD-03 as an urgency measure. 53. Adopt Ordinance No. OCSD-04, Adopting Capital Facilities Connection Charges: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-04 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-04. d. Motion to adopt Ordinance No. OCSD-04 as an urgency measure. 54. Adopt Ordinance No. OCSD-05, Adopting Sanitary Sewer Service Charges: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-05 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors,present.) C. Motion to introduce Ordinance No. OCSD-05, and pass to second reading and hearing on July 29, 1998. 07/01/98 Page 8 of 9 55. Adopt Ordinance No. OCSD-05U, Adopting Sanitary Sewer Service Charges: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-05U by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-05U. d. Motion to adopt Ordinance No. OCSD-05U as an urgency measure. 56. Adopt Resolution No. OCSD 98-39, Directing the County Tax Collector to Include Sewer Service Charges on the 1998-99 Property Tax Bills. 57. Adopt Ordinance No. OCSD-06, Adopting Miscellaneous Charges and Fees Relating to Industrial, Wastehauler and Transportable Treatment Unit Dischargers: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-06 by title only and waive reading of said entire ordinance. (rhe waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-06. d. Motion to adopt Ordinance No. OCSD-06 as an urgency measure. 58. Adopt Ordinance No. OCSD-07, Regarding Fulfillment of Obligations under Predecessor Districts' Early Retirement Incentive Programs Granting Additional Service Credits to Eligible Predecessor Districts' Employees as Authorized by the County Employees Retirement Law of 1937, Government Code Section 31641.04: a. Verbal report of General Counsel b. Motion to read Ordinance No. OCSD-07 by title only and waive reading of said entire ordinance. (rhe waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) C. Motion to introduce Ordinance No. OCSD-07. d. Motion to adopt Ordinance No. OCSD-07 as an urgency measure. 07/01/98 Page 9 of 9 59. Closed Session CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection.-At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. a. Convene in closed session, if necessary b. Reconvene in regular session e. Consideration of action, if any, on matters considered in closed session 60, Matters that a Director would like staff to report on at a subsequent meeting 61, Matters which a Director may wish to place on a future agenda for action and staff report 62, Other business and communications or supplemental agenda items, if any 63. Adjournments NOTICE TO DIRECTORS:To place items on the agenda for the Regular Meeting of the Board, Directors shall submit items to the Board Secretary no later than the dose of business 14 days preceding the Board meeting. The Board Secretary shall include on the agenda all items submitted by Directors, the General Manager and General Counsel and all formal communications, Board Secretary: Penny Kyle (714) 593-7130 or (714) 962-2411, ext. 7136 H1wp.dtatadmiM6SWgenda\070199.doc EXCERPTS FROM THE MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT A'special meeting of the Board of Directors of Orange County Sanitation District was held at the hour of 6:30 p.m., on July 1, 1998, at 10844 Ellis Avenue, Fountain Valley, California. The Chair of the Orange County Sanitation District called the meeting to order at 6:30 p.m. The roll was called and the Secretary reported a quorum present. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. 98-31, Approving the Operating, Capital, Debt/COP Service and Self-Insurance Budgets for 1998-99, as follows: Joint Works OperatinglWorking Capital $45,200,000 Worker's Compensation Self Insurance $565,000 Public Liability Self-Insurance $335,000 Joint Works Capital Outlay Revolving $49,284,000 Collection System Zone Operating $10,180,000 Collection System Zone Capital Improvements $22,904,000 Debt/COP Service $36.459,000 STATE OF CALIFORNIA) )SS. COUNTY OF ORANGE ) I, PENNY M. KYLE, Secretary of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing to be a full, true and correct copy of minute entries of the meeting of said Board of Directors on the 1st day of July, 1998. IN WITNESS WHEREOF, I have hereunto set my hand this 11th day of August, 1998. Secretary, Q4rd of Di of Di Orange County Sanilatioec istriot H:1wp.dteladnr.%BS%FORW%19991Mim tos Exempt-070tea.doo