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HomeMy WebLinkAbout2002-11-20 I ORANGE COUNTY SANITATION DISTRICT November 14, 2002 P,ea.: (7141962-2411 tax: p1419620 56 unamoced.mm a,.iim,addr...: NOTICE OF MEETING PO, Box B127 Fountain728-812 BOARD OF DIRECTORS .d.,em.ddre..: ORANGE COUNTY SANITATION DISTRICT 108"Ellis Avenue Fountain Valley.C 92708-7018 WEDNESDAY, NOVEMBER 20, 2002 — 7:00 P.M. M.m4ar It,wdes • DISTRICTS ADMINISTRATIVE OFFICES ei.iaa 10844 Ellis Avenue Anaheim Fountain Valley, California 92708 Brad B... Park Lgpreas The Regular Meeting of the Board of Directors of the Orange County Sanitation Foamed u,., District will be held at the above location, time and date. Fullerton Garden Grove Hancngtan Beach Irvine Le Habra LB Palma '�✓�"%� l Los Alamitos Newport Beach and Secrets Orange Placenhe Saute And Baal Beach Stanton Tustin Ville Park Yorbd Linda Tentatively - Scheduled Upcoming Meetings c..... .t Oran,. Sank., oi..ric.. OMTS COMMITTEE -Wednesday, December 4, 2002 at 5:00 p.m. cm,. Mesa Maws,0 PDC COMMITTEE -Thursday, December 5,2002 at 5:00 p.m. Water oi.trict. JOINT GROUNDWATER REPLENISHMENT Irr.na Reach SYSTEM COOPERATIVE COMMITTEE -Monday, December 9,2002 at 5:30 p.m.@OCWD FAHR COMMITTEE -Wednesday, December 11, 2002 at 5:00 p.m. STEERING COMMITTEE -Wednesday, December 18,2002 at 5:00 p.m. To maintain eorld class Ieadershe,in wastewater and water readurce management. bm BOARD MEETING DATES *December 18, 2002 January 22, 2003 February 26, 2003 March 26, 2003 April 23, 2003 May 28, 2003 June 25, 2003 *July 16, 2003 August 27, 2003 September 24, 2003 October 22, 2003 November 19, 2003 *Meetings are being held on the third Wednesday of the month G:\wp.dla�dminXBSAgenda@002 Meeting NoUmsWN 7 L2.doc REPORT 2 OF 3 CHAIR'S REPORT BOARD MEETING OF November 20, 2002 IT IS MY PLEASURE TO WELCOME ASSEMBLYMAN BILL CAMPBELL TO OUR MEETING. ON BEHALF OF THE BOARD AND THE DISTRICT STAFF, I WANT TO THANK YOU FOR YOUR EFFORTS AND SUPPORT OF AB 1969 (?) WHICH ALLOWS US TO PROCEED TOWARDS SECONDARY TREATMENT STANDARDS WITHOUT THE POSSIBILITY OF MANDATORY PENALTIES. COULD YOU JOIN MEIN FRONT OF THE DIAS, PLEASE? PRESENT RESOLUTION OF COMMENDATION 2. INTRODUCE NEW COMMITTEE CHAIRS: PDC COMMITTEE: BRIAN DONAHUE OMTS COMMITTEE: JIM FERRYMAN ✓ THE REGULAR MEETING SCHEDULE FOR WORKING COMMITTEES IS NOTED ON YOUR AGENDA. HOWEVER, THE TENTATIVELY SCHEDULED URBAN RUNOFF AD HOC COMMITTEE MEETING WILL NOT BE HELD TOMORROW. IT WILL BE RESCHEDULED. 3 I JUST WANT TO REMIND YOU THAT THE BOARD MEETING IN DECEMBER HAS BEEN MOVED TO THE THIRD WEDNESDAY, DECEMBER 18T" i 4. AND I ALSO WANT TO GIVE YOU ADVANCE NOTICE THAT THE PDC AND OMTS COMMITTEES WILL NOT BE MEETING IN JANUARY. IF THERE ARE ITEMS THAT WOULD NORMALLY GO TO THOSE COMMITTEES AT THAT TIME, THEY WILL BE PRESENTED DIRECTLY TO THE BOARD AT ITS JANUARY 22ND MEETING. THE FAHR COMMITTEE WILL MEET ON JANUARY 8T" IN CLOSED SESSION ON MEET AND CONFER ISSUES. 5. RESOLUTIONS OF COMMENDATION FOR DEPARTING DIRECTORS: "LDAURANN COOK JOHN GULLIXSON SAT MC GUIGAN 4USS PATTERSON fiv Cd JERRY SIGLER 6. z REPORT 3 OF 3 REPORT OF THE STEERING COMMITTEES TO THE BOARD THURSDAY, NOVEMBER 7, 2002 WEDNESDAY, NOVEMBER 20, 2002 AT 5 P.M. 1 . THE GENERAL MANAGER PROVIDED REPORTS TO THE COMMITTEE ON: A. THE CALIFORNIA LEGISLATIVE AGENDA FOR 2003 B. A NEW HANDBOOK FOR DIRECTORS ON COMMITTEE CHARTERS AND THE DUTIES OF DIRECTORS C. PROGRESS ON ACHIEVING 30/30 SECONDARY TREATMENT STANDARDS, BIOSOLIDS MANAGEMENT AND DISINFECTION D. THE FUTURE OF THE COMMUNICATIONS DIVISION. 2. THE COMMITTEE REVIEWED THE 2003 COMMITTEE MEETING SCHEDULE AND AGREED WITH STAFF THAT THE COMMITTEES WOULD NOT MEET IN JANUARY AND AUGUST UNLESS A SPECIAL NEED SURFACED. THE COMMITTEE DISCUSSED HOLDING A WORKSHOP ON WEDNESDAY, FEBRUARY 19r", FOR NEW DIRECTORS AS WELL AS RETURNING DIRECTORS. IT WILL BEGIN AT 7 P.M., AFTER THE FAHR COMMITTEE MEETING THAT HAD TO BE MOVED BECAUSE OF LINCOLN'S BIRTHDAY HOLIDAY ON FEBRUARY 12r" 3 4. AT VICE CHAIR ANDERSON'S REQUEST, THE COMMITTEE DISCUSSED LOW INTEREST LOANS FOR RESIDENTS TO CONVERT FROM SEPTIC TANKS TO SEWER CONNECTIONS. S b 5. THE CONTINUING PROBLEMS WITH UNPAID INVOICES BY SAWPA FOR WORK ON THE SARI LINE WAS DISCUSSED. STAFF HAS COMPILED DOCUMENTATION THAT DETAILS THE MANY MEETINGS, LETTERS, MEMOS, FAXES, E-MAILS AND INVOICES THAT RELATE TO THIS PROBLEM. THEY ARE WORKING WITH GENERAL COUNSEL TO SEEK A SOLUTION BEFORE ANY ADDITIONAL WORK IS DONE BY THE DISTRICT. THIS ISSUE WILL BE THE SUBJECT OF NEXT WEEK'S JOINT MANAGEMENT COMMITTEE WITH SAW PA. 6. ON NOVEMBER 7T", THE STEERING COMMITTEE MET WITH OUR WASHINGTON LOBBYISTS, ERIC SAPIRSTEIN AND JOHN FRESHMAN, TO REVIEW THE LEGISLATIVE ADVOCACY PLAN. WORKING WITH THE ORANGE COUNTY CONGRESSIONAL DELEGATION MESSRS. SAPIRSTEIN AND FRESHMAN HAVE BEEN SUCCESSFUL IN PLACING LANGUAGE IN EPA'S APPROPRIATIONS BILL THAT SHOULD SERVE THE DISTRICT WELL IN ITS NEGOTIATIONS FOR PURSUING FEDERAL GRANT FUNDING TO HELP PAY FOR THE COST FOR ATTAINING SECONDARY TREATMENT STANDARDS. THE CONSULTANTS BELIEVE THERE IS A GOOD CHANCE THAT FEDERAL GRANT FUNDS COULD BE HAD IF THE DISTRICT IS WILLING TO GO AFTER THEM. 4 THE COMMITTEE DIRECTED STAFF TO PREPARE AN AGENDA REPORT THE STEERING COMMITTEE AND THE BOARD TO ESTABLISH A BUDGET FOR THIS PURPOSE FOR CALENDAR YEAR 2003 COVERING FISCAL YEARS 02-03 AND 03-04 AND TO APPROVE A CONTRACT FOR PROFESSIONAL ADVOCACY SERVICES THAT WOULD RESULT IN THE DEVELOPMENT OF A SHORT-TERM STRATEGY FOR SECURING GRANT FUNDING AND INCLUDE AN ESTIMATE OF THE AMOUNT OF GRANT ASSISTANCE AVAILABLE. OUR GOAL IS TO GO AFTER THE KIND OF MONEY THAT THE CITY OF LOS ANGELES RECEIVED: FEDERAL GRANTS OF $50 MILLION TO HELP PAY FOR THEIR SECONDARY TREATMENT. THE STEERING COMMITTEE RECOMMENDS THAT THE BOARD OF DIRECTORS AUTHORIZE THE GENERAL MANAGER TO ENTER INTO A ONE-YEAR AGREEMENT WITH ENS RESOURCES FOR PROFESSIONAL ADVOCACY SERVICES FOR A TOTAL AMOUNT NOT TO EXCEED $180,000. 7. THE AGENDA ITEMS SCHEDULED TO BE PRESENTED TO THE COMMITTEES IN DECEMBER WERE REVIEWED. 8. QUESTIONS AND CLARIFICATION OF ITEMS ON TONIGHT'S AGENDA WERE CONSIDERED. 5 ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE:November 20, 2002 TIME: 7:00 p.m. (MURPHY)........................ ALVAREZ...................... . — (SIMONIAN) .................... ANDERSON................... _G JL — (FLORY) .......................... BANKHEAD................... ... c — (MILLER).......................... BRADY ........................1d� !ate — (YOST) ............................ CAMPBELL ...................�G �G — (BOARDMAN) ................. COOK, DEBBIE.............. — (CRANDALL).................... COOK. LAURANN.......... — (SHAWVER) .................... DONAHUE..................... �c �G — (UNDERHILL)................... ECKENRODE.................�C (SCHAFER)...................... FERRYMAN...................y ✓ — (DUVALL)......................... ..................�G �G — (DEBOLT)......................... JEMPSA...................... ✓ s i f 4�9 YJ oa3 (WORLEY)........................ KAWASHIMA............... 1dc _gc — (SMITH)............................ KROM........................ _ (BROADWATER)............. LEYES.......................... _ — (DALY).............................. MC CRACKEN............... ✓ �c — (CHRISTY)....................... MCGUIGAN.................. � — — (SIMONOFF).................... MOORE........................ — (EPPERSON)................... NEUGEBAUER.............. _� r — (FRESCHI) ....................... . A,TERS.................. ✓ ✓ _ (KEENAN) ........................ PIERCY........................�c (ADAMS) ......................... RIDGEWAY................... ✓ _ (DO ) S149 E-a ......................y/ ✓ _ (SMITH. CHUCK)............. SILVA........................... ✓ ✓ — — (BLAKE).............................Ill....................... ✓ — STAFF: Anderson ✓ Q Kyle li ✓ Ludwin ✓ Mathews Miles Ooten ✓ Tomko ✓ Streed ✓ OTHERS: Woodruff ✓ /' Andrus Nixon 06/19/02 G1vp.dta%adMMBSOIRECTOROirectors Roll Call.doc S�GL�L-IN SHEET ORANGE COUNTY SANITATION DISTRICT ///,,old BOARD MEETING NAME ORGANIZATION/FIRM leaseprint) lease print) Jn >UR rYt/XEi2 e O �✓�✓rs K�,C siser4. ccua aoG- lJ h1 �- a c O Cif H:\WP.DTAWDMINIBS\FORMS\SIGN-IN FORM.DOC 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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the me Ing for distribution DATE: I F mod—to AGENDA ITEM Nk NAME: (please print) J)}1 V4 .V '04A V Cb`ta� HOME ADDRESS: 2 2 ( 14 & L (number/street) CA (city/zip code) Q� /� TELEPHONE: (// "f ) O !/ 32 t'O REPRESENTING: 066 (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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: ��- AGENDA ITEM NO. NAME: (please print) , afn /�Y/ ,P 4 r:�Azlml HOME ADDRESS: (number/street) (city/zip cod TELEPHONE: (� REPRESENTING: !O�� (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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting f®rmdibut�ilon. DATE: AGENDA ITEM NO. L I 2. " ��I NAME: (please print) *�r_ 4' HOME ADDRESS: I lV- 1 7 F-DV &t� (number/street) l+-9 (city/zip code) TELEPHONE: ( (�) �' -7r'-7 — L( rF 7 REPRESENTING: J F (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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: Z �- 2 AGENDA ITEM NO. NAME: (please print) /U �/ G/�'�✓�� m�-` HOME ADDRESS: 2C/ (number treet) (c-iity//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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: - , AGENDA ITEM NO. l NAME: (please print) Z// Sv'•C.C��CC/� HOME ADDRESS: �CP zzp C (num r/street) (aty/zip code) TELEPHONE: REPRESENTING: 4 (self/nam 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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: r6"Z— AGENDA ITEM NO. / NAME: (please print) HOME ADDRESS: Z (number/street) (city/zip codee))r-��, TELEPHONE: REPRESENTING: to F'/JC` �C��• C1/r (se name off orgaai lzation) 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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: a�r K6- AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: (number/street) 4, & (� A �f -'f-� � (city/zip code)TELEPHONE: 7/ -(5-56 u�/6�,,01 S 6 REPRESENTING: 0 ��� /9,fSfti C41kVC—D d , L&I`1K-rVUb-)A-- (self/name of organizati n) 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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. ` DATE: � AGENDA ITEM NO. NAME: (please print) /Qnkp::�, eipww�o(A, � HOME ADDRESS: L,t) (numb /street) (city (/7'[ziip coddee)yy TELEPHONE: 7 7.2 ` 5212-4 REPRESENTING: 004076 ' Chl VI,� hfl(W/y> (self/name of organi on) �� 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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks maybe limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. , -.. -, DATE: h) 4,,-ZO ^Z-� AGENDA ITEM NO. - "� NAME: (please print) HOME ADDRESS: (number/stree (city/zip de) I 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 Chair, speakers may be deferred until the specific item is taken for discussion. Remarks may be limited to three minutes or less. Any handouts (35 COPIES REQUIRED) must be given to the Board Secretary prior to the meeting for distribution. DATE: ! 7,4-0/✓ AGENDA ITEM NO. NAME: (please print) HOME ADDRESS: -70 L '`4 (number/street) Cow,a At c A7 IIL (city/ziip, code) TELEPHONE: (07yY 6 -?),-Z15 '5 REPRESENTING: S/�R�fF C�(f R 16 0 6- (self/name of organization) suu+wa��wuaw�iwua sawauav N6VA/f:uuu Np'Ne�uaNWnN�iNNi jM RlSI�Y OWN S' �;u o/q�'j;ps S��-� �� Off' /i�Gu, �� C.(�,JP ,/L�n�x � � ::;IrAIIOMY-1 \1 , �r o , _avpvq4 ,» ,_ A2e ,ap< ve6#tee_ 4 WORKING DRAFT ASSOCIATION AND ADVOCACY LIST November 2002 A. Associations and Consultants for Legislative Advocacy and Other Issues ORGANIZATION CURRENT.ISSUES I JURISDICTION PERSONNEL DUESIFEES ACTIVITIES COMMITMENT (FTE) Association of Metropolitan Federal funding for National Various Departments $30,000 Sewerage Agencies (AMSA) POTWs including participate in AMSA infrastructure. High level activities www.amsa-cleanwater.org participation in the 0.1 FTE development of legislation and regulations of interest to POTWs, primarily as implemented by U.S. EPA. California Association of Advocate on legislation of Statewide Various Departments $8,000 Sanitation Agencies (CASA) interest to POTWs at the participate in CASA statewide level. activities www.casaweb.org Participates in numerous 0.1 FTE regulatory activities of interest to POTWs, primarily through the SWRCB and RWQCBs. ENS Resources (Eric Federal funding for National: General Manager and $92,000 Sapirstein) OCSD on various Focus on federal Technical Services ($48,000 projects including the clean water Department annual retainer ensresources.com upgrade to secondary legislation and 0.1 FTE plus$44,000 treatment. Also assisting add-on for ORGANIZATION CURRENT ISSUES I JURISDICTION PERSONNEL DUES/FEES ACTIVITIES- ENT(FTE) in seeking compliance regulations special relief for upgrade to services Sep- secondary treatment. Dec'02) John Freshman Assisting ENS in National: Technical Services Costs included developing funding and Targeted solely to Department under ENS compliance assistance for federal funding <0.1 FTE upgrade to secondary and legislation. treatment. Manatt, Phelps and Philips Local issues—urban Statewide and Blake Anderson and $110,000 (Scott Baugh) runoff, ocean discharge Regional Technical Services ($60,000 issues. Assisted in Department annual retainer Charter Amendment and plus $50,000 www.manatt.com 0.1 FTE add-on for work compliance relief for on AB 1892 upgrade to secondary and AB 1969 treatment through AB 1892 and AB 1969. for Jan Sep '02) to Randy Abbott & Central Valley Political Regional Layne Baroldi and Annual retainer Mike Turnipseed and Regulatory Environmental of W'000 Consultants for biosolids Compliance and management. Provide Monitoring Division biosolids site inspection <0.1 FTE services and oversight B. Other Associations and Organizations directly and indirectly involved with issues of interest to OCSD or POTWs. NAME ACRONYM Air& Waste Management Association AWMA American Fisheries Society AFS American Institute of Fisheries Research Biologists AIFRB American Public Works Association APWA American Society of Civil Engineers ASCE Association for Information Management ARMA Biosolids Recyclers of Southern California BRSC Biosolids Task Force for Riverside County California Chamber of Commerce CCC California Coastal Coalition CalCoast California League of Cities CLC California Organic Recycling Council CORC California Rebuild America Coalition CaIRAC California Resource Recovery Association CRRA California Special District Association CSRA California Water Environment Association CWEA California Utilities Emergency Association CUEA Center of Demographic Research CDR Center for Regenerative Studies CRS Compost Coalition Construction Management Association of America CMMA International Conference of Building Officials ICBO National Academy of Sciences NAS National Water Research Institute NWRI Orange County Business Council OCBC Orange County Council of Government Orange County Current Affairs Forum OCCAF Pacific Institute NAME ACRONYM Project Management Institute PMI ' Salinity Coalition Santa Ana River Basin Section SARBS Santa Ana River Flood Control Agency Santa Ana River Watershed Group SARWG Society of Environmental Toxicology and Chemistry SETAC Southern California Academy of Sciences SCAS Southern California Association of Governments SCAG Southern California Alliance of POIWs SCAP Southern California Biosolids Producers Group SCBPG Southern California Coastal Water Research Project SCCWRP Authority SCCWRP Commission Technical Advisory Group CTAG Southern California SETAC SoCal SETAC Southern California Water Committee SCWC Terrene Institute TI Townsend and Associates Tri-TAC: Technical Advisory Committee of California Tri-TAC Association of Sanitation Agencies, California Water Environment Association and League of California Cities Water Advisory Council of Orange County WACO Water Environment Federation WEF Water Environment Research Foundation WERF WateReuse Association WRA Water Quality Center Western Riverside County Regional Wastewater Authority WRCRWA To: Board of Directors, OCSD Fm: Randy Fuhrman Re: Various Agenda Items for 11/20/02 Board meeting (11.c, 12.d, 13J, & 17) 11.c. Do not get lost in the forest looking for the trees. See: Minutes of the Special Steering Committee, 11/07102, page 3, Item (7) C. OCSD needs financial assistance in building secondary treatment facilities. To cloud the issue with "an ecosystem restoration program" as part of"a comprehensive water and infrastructure picture to present to EPA" only diffuses the specific financial requests and makes our needs less clear to the EPA and our representatives in Washington, D.C. 11.c. Where does this $200,000 advocacy program fit into the overall lobbying program for OCSD? Back at the September meeting, a director requested a report be made to the Board on "all of the District's lobbying and advocacy efforts". If the Board is to decide policy, then the information must be made available to the Board members. The Board needs to discuss and determine the overall policy for lobbying efforts, not be brought requests on a piecemeal basis. All of us are in favor of seeking funding to assist in the building of secondary treatment facilities, but this must be part of an overall advocacy policy discussed and determined by the Board. 11.c. See minutes of special steering committee meeting, item (7) B. These lobbyists believe that OCSD efforts to amend the Clean Water Act are a distinct possibility. If OCSD has put forth a policy that there are certain conditions whereby OCSD would seek amendment of the CWA, then this policy must be discussed, determined and approved by the Board. If this Board has time to approve relatively routine change orders and addendums to PSAs, then this Board surely has the time to discuss and set forth major District policy regarding attempts by OCSD and their lobbyists to amend the Clean Water Act. 12.d. Landfilling of biosolids was approved at the September Board meeting and, surprise, surprise, here in November the current operations show 20% of the biosolids already being landfilled in Arizona. To make matters even worse, the Proposed Biosolids Management Options has that 20% plus an additional, yet unknown, percentage of the Tule Ranch option for landfill use. Where is the "beneficial reuse" and the Environmental Management System supporting biosolids recycling? Safely recycled rather than take up limited landfill space... that is the essence of the biosolids policy of this Board and one the public supports. This Board should restrict the District from landfilling biosolids until the Board receives the Long-term Biosolids Master Plan (J40-7) so the biosolids policy can be debated and decided by you, the Directors. i Letter to Board of Directors, 11/20/02, page 2 13.j. The earlier proposal had an area for health and fitness. The size was 2070 sq. ft. and the cost $327,000. Employee health and fitness is most definitely an important objective of a progressive management team. OCSD has made a positive commitment to its employees, remembering that all here except the Directors are employees. This facility has already been budgeted in the CIP. The Board should reinstate the health and fitness area in Job No. J-84. 13J. If the earlier proposal is not reinstated, the Board should include the additional space (2070 sq. ft.) and the budgeted cost ($327,000) to allow the construction to take place to expand the size and options for the new building. The space can be utilized and the Phase III plan can easily alter this area that has already been part of the planning and design to serve another purpose in the detailed design and plans and specifications. Do not lose this opportunity simply because the purpose of the area is changed. The Board should put the space and budgeted cost back into the proposal to allow the designers the flexibility for needed space, even if the purpose of the area is not as originally envisioned. 17. Board approval of the NPDES / Ocean Discharge Permit Application is recommended. Authorize submittal of the application to continue moving the District forward in making the improvements for our future. Take care, Randy T. Fuhrman (714) 377-4487 0 MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, November 13,2002,5:00 p.m. A meeting of the Finance,Administration and Human Resources Committee of the Orange County Sanitation District was held on November 13, 2002, at 5:00 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Blake P. Anderson, General Manager Roy Moore,Vice Chair Gary Streed, Director of Finance Brian Donahue Mike White, Controller Mark Leyes Greg Mathews,Assistant to the General Joy Neugebauer Manager Shirley McCracken, Board Chair Lisa Arosteguy, Human Resources Supervisor Steve Anderson, Vice Board Chair Jan Collins, Sr. Human Resources Analyst Jim Matte, Safety& Health Supervisor Directors Absent: Bob Gaggle Penny Kyle, Committee Secretary Brian Brady, Chair John M. Gullixson OTHERS PRESENT: James W. Silva Thomas L.Woodruff, General Counsel Steve Filarsky, Special Labor Counsel Don Hughes Toby Weissert Mike Moreland Greg Giles (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. Vice Chair Moore announced that Item 15, Closed Session,would be considered immediately following public comments. The remaining items listed on the agenda would be considered following the reconvening of the Committee in regular session. (3) PUBLIC COMMENTS There were no public comments. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 November 13, 2002 " (15) CLOSED SESSION The Committee convened in Closed Session at 5:10 p.m. pursuant to Government Code Section 54957.6 to discuss and consider Agenda Item No. 15(a)(1). 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. There was no reportable action taken by the Committee re Agenda Item No. 15(a)(1). RECONVENE IN REGULAR SESSION: At 5:26 p.m.,the Committee reconvened in regular session. (4) REPORT OF THE COMMITTEE CHAIR The Vice Chair had no report. (5) REPORT OF THE GENERAL MANAGER Blake Anderson reported that formal signing of the Joint Operating Agreement for the Groundwater Replenishment System took place the prior evening at a meeting of the Joint Cooperative Committee. Mr. Anderson provided a brief update on negotiations for the$3 million still owed the District by SAWPA. Due to action taken by the Steering Committee regarding SAWPA's proposal on the SARI Line, staff has stopped the environmental review work in order to get SAWPA to focus attention on the outstanding payment issues. He was informed that SAWPA's board met in dosed session on November 12. It is possible litigation could arise from this issue. General Counsel and staff have compiled a list of all issues related to receivables with SAWPA for the past 20 years,which will be provided to the SAWPA board of directors. It was reported that although the FAHR Committee is generally dark in January, a meeting might be required to discuss meet and confer issues. Mr. Anderson also announced that the Ad Hoc Committee re Urban Runoff meeting scheduled for November 21"has been cancelled. (6) REPORT OF DIRECTOR OF FINANCE The Director of Finance had no report. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources was not present. The representing Human Resources Supervisor had no report. (8) REPORT OF GENERAL COUNSEL General Counsel had no report. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 November 13, 2002 (9) CONSENT CALENDAR ITEMS a. The Chair ordered that the October 9, 2002 minutes for the Finance, Administration and Human Resources Committee meeting be deemed approved, as mailed. b. FAHR02-95: Receive and file Treasurer's Report for the month of October 2002. C. FAHR02-96: Receive and file Certificate of Participation (COP) Monthly Report. d. FAHR02-97: Receive and file Employment Status Report as of October 31, 2002. e. FAHR02-98: Receive and file OSHA Incidence Rates and Workers'Compensation Claims and Costs Report. f. FAHR02-99: Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2002 through September 30, 2002. g. FAHR02-100: Recommend to the Board of Directors to approve SAFETY-POL 304, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. h. FAHR02-101: R ecommend to the Board of Directors to receive and file the 2002-03 First Quarter Financial Report for the period ending September 30, 2002. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 9(a)through (h)under Consent Calendar. Director Joy Neugebauer abstained on Item 9(a). END OF CONSENT CALENDAR (10) ACTION ITEMS a. FAHR02-102: Recommend to the Board of Directors to receive, file and approve the District's Comprehensive Annual Financial Report (CAFR)for the year ended June 30, 2002, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. Mike White, Controller, gave a presentation on the issued CAFR and briefly described changes contained in this report from prior annual reports due to the implementation of GASB 34. Mike Moreland of Moreland &Associates, Inc., Certified Public Accountants, reported that the District had earned a clean opinion on the audited statements. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 4 November13,2002 ' b. FAHR02-103: Recommend to the Board of Directors to adopt a revised per diem policy for authorized training and travel providing for daily limits approved by the IRS for various locations in the United States. Gary Streed, Director of Finance, briefly reported on the difficulties with the existing per diem policy and described the per diem policy staff would like to implement. MOTION: It was moved, seconded and duly cared to recommend approval to the Board of Directors. C. FAHR02-104: Recommend to the Board of Directors to approve Amended and Restated Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System, providing for segregation of a portion of the AREA funds to a trust fund for the benefit of current and future retirees, in a form approved by General Counsel. Gary Streed, Director of Finance, described current practices with the ARBA funds, and responded to Directors questions. He further advised there would be no additional cost to implement the recommended agreement. MOTION: It was moved,seconded and duly carried to recommend approval to the Board of Directors. d. FAHR02-105: Recommend to the Board of Directors that the books and accounts of Revenue Area 7 be combined with those of the rest of the Orange County Sanitation District, except for Revenue Area 14, and that future revenue, expenses and capital outlays be considered those of the consolidated Orange County Sanitation District effective July 1, 2003. Gary Streed, Director of Finance, gave a brief report describing past practices with the former County Sanitation District No. 7, and responded to Directors' questions regarding funding costs. MOTION: It was moved,seconded and duly carried to recommend approval to the Board of Directors. Director Mark Leyes opposed. e. FAHR02-106: Recommend to the Board of Directors to approve the reclassification of eight District employees and nine positions. Lisa Arosteguy, Human Resources Supervisor, gave a brief report on the recommended reclassifications. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 November13,2002 (11) INFORMATIONAL PRESENTATIONS There were none. (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for December 11,2002 at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:22 p.m. Submitted by: dl2 Penny M.K le FAHR Cork ittee Secrete G:1wp.dblzgenda\FAHR1FAH te 2 Wnufls1111302 FAHR Mnu .dw h w eo November 20, 2002 ME_M0RANDU-M TO: Board of Directors FROM: Bob Ooten Director of Operations & Maintenance SUBJECT: Level of Secondary Treatment and Disinfection Progress Attached you will find data on the progress staff has made and the impact on the final effluent by turning up the level of treatment. Historical trends for final effluent percent of secondary treatment for biochemical oxygen demand (BOD) and total suspended solids (TSS) are shown. In addition, current data on the month's BOD, TSS and disinfection effectiveness is shown on a schematic of the treatment system. The data shows that the increased level of treatment is reducing the final effluent BOO and SS and that the disinfection system Is providing significant and consistent bacterial reduction. Additional information has been provided in the General Manager's Board letter and staff will be posting this and other data on the effectiveness of the level of treatment increases and disinfection on the Web in the month of December. If you have any comments, questions or would like additional data, please call me at 714-593-7020. RJO:pjm GAWp.dtabm1810)FINALVL10tB0AR0 Lettetlwl-102302 Board Packet Cover Letter.doc Attachments (2) OCSD • P.O.Box0127 • F000WIn Vall,.CA 92728.8127 • (714)982Q011 L Orange County Saturation District Operational Treatment Levels Revision 11127/02 Final Effluent Percent Secondary Treatment eF% Winter 2002 Goal=64% m% ... ......................_......._._........__...................._........_61X_5E Monthly Average 66% Bs% ......_.._... _.._. _........ .....39%... _...._ Sma SIK 51% 5G5h F i A 1;Moll lCunrdrrglAvarega um Jul Tug UP 0A NM 11% JYI FW Mer AK May Jun Jul A, Sep Oc, 2wi m02 Total Suspended Solids (TSS) Biochemical Oxygen Demand (BOD) Pam in Final Effluent PPn' in Final Effluent 1ao 1m oo. ............ ..._....... ._... ......... ......._......... ____. m 1998 Permit Limit a 100 plan So ............................................................................................................. Pa .................................................................n..._Y....ft.... ..... ..._..... 1998 Permit Limit=60 ppm mPP ............................................................................................................... m 1 S! 61 5r P. _ M__ M JB iS ,10 ......................................................................................................... 07. dP ............................................................................................................... m m Secondary Standard Goal=70 plan Secondary Standard Goal=30 pine 10 ....................................... ..........._...._.............................._.................._ 10 .._...._.............._........._..._....................................................__._......_... a g JM Ap UP oM Nov Ua Jan FO Yr AV May Jun .M Jmg UP om Jul rng UP W ter UP Jn FO Mm Pp May Jun H Tug SO w 2001 ggSg apt 2002 Orange County Sanitation District Operational Treatment Levels Last Fiscal Year 2001-02 Progress to Secondary Standards Ending June 2002 Month: November 2002 47% i 39% Ocean Pipeline rOcean �Pipeline v'..d water Dbthiddir B Wxee Mixed Dachlotlnatlan 53% 61% Secondary Final Effluent: Secondary Bacteria Reduction: 99.9/oa + BOD = 72 mg/L Goal: 99.7% Reduction TSS = 50 mg/L _ Chlorine Level _ Ocean Discharge Daily Maximum: 0.126 mglL Permit Limit: Permit Limit—Daily Maximum 1.45 mg/L BOO = 100 mg/L (Average of Eight Samples) TSS = 60 mg/L Final Effluent: Final Effluent Goal: BOO= 59 mg/L BOD = 30 mg/L TSS = 37 mg/L TSS = 30 mg/L Final Effluent Results Enterococci MS-2 Total Coliforms Fecal Coliforms Enterococci/100ml by Enterolert Coliphage Date MPN/100mL MPN/100ml- by Membrane Filtration MPW100ml PFU/100ml- 8/12/2002 800,000 200,000 6,000 8/13/2002 500,000 30,000 8,000 8/14/2002 500,000 230,000 1,800 8/15/2002 300,000 40,000 1,490 8/18/2002 500,000 80,000 4,800 8/19/2002 300,000 50,000 1,900 8/20/2002 900,000 220,000 4,800 8/21/2002 900,000 900,000 10,000 9,700 8/22/2002 600,000 130,000 5,800 8/23/2002 600,000 140,000 1,600 8/24/2002 300,000 170,000 1,500 8/25/2002 600,000 170,000 1,300 8/26/2002 170,000 80,000 6,200 8/27/2002 900,000 170,000 7,600 SM8/2002 80,000 80,000 2,500 3,200 8/29/2002 50,000 8,000 200 8/30/2002 23,000 13,000 345 8/31/2002 300,000 50,000 960 9/1/2002 80,000 80,000 520 9/2/2002 30,000 23,000 460 9/3/2002 80,000 13,000 560 9/4/2002 80,000 303000 1,200 9/5/2002 80,000 4,000 220 9/6/2002 >1600000 >1600000 TNTC 9/7/2002 1,400,000 500,000 16,000 9/8/2002 500,000 240,000 540 9/9/2002 >1600000 1,600,000 >40000 9/10/2002 3,000,000 1,100,000 110,000 9/11/2002 5,000,000 1,100,000 110,000 33,000 9/12/2002 300,000 240,000 --- 5,794 9/13t2002 50,000 11,000 --- 173 9/14/2002 80,000 17,000 --- 428 9/15/2002 50,000 7,000 --- 452 9/16/2002 1,700,000 1,100,000 --- >24192 9/17/2002 110,000 7,000 --- 373 9/18/2002 500,000 50,000 --- 2,987 16,400 9/19/2002 80,000 23,000 --- 1,222 9/20/2002 110,000 17,000 --- 134 9/21/2002 30,000 8,000 --- 216 9/22t2002 50,000 2,000 --- 612 9/23/2002 1,300,000 220,000 --- 6,131 9/24/2002 130,000 130,000 --- 345 9/25/2002 130,000 30,000 --- 1,860 5,200 9/26/2002 30,000 4,000 --- LA 9/27/2002 13,000 4,000 --- 41 9/28/2002 17,000 4,000 --- 107 k.i Final Effluent Results Enterocccci MS-2 Total Coliforms Fecal Colitorms EnterococcV100ml by Enterolert Coliphage Date MPN/100mL MPW100mL by Membrane Filtration MPN/100ml PFU/100ml- 9/29/2002 30,000 4,000 --- 41 9/30/2002 22,000 4,000 --- 31 10/1/2002 30,000 4,000 --- 74 10/2/2002 23,000 8,000 --- 97 10/3/2002 8,000 <2,000 --- 52 9,200 10/4/2002 24,000 3,000 --- 52 10/5/2002 900,000 110,000 •-- 4,884 10/6/2002 30,000 8,000 --- 160 10/7/2002 13,000 3,000 --- 20 10/8/2002 17,000 2,100 --- 85 10/9/2002 28,000 4,000 --- 158 104,000 10/10/2002 50,000 11,000 --- 121 10/11/2002 13,000 3,000 --- 63 10/12/2002 17,000 3,000 --- 160 10/13/2002 30,000 13,000 --- 72 10/14/2002 80,000 5,000 --- 107 10/15/2002 13,000 1,300 --- 98 10/1 W002 1,700 <200 --- 10 10/17/2002 1,300 200 --- 31 10/18/2002 900 70 --- 30 10/19/2002 2,200 140 --- <10 10/20/2002 800 <200 --• <10 10/21/2002 500 20 --- <10 10/22/2002 1,700 Soo •-- 61 10/23/2002 2,400 300 --- 30 10/24/2002 3,000 800 --- <10 10/25/2002 700 40 --- 20 10/26/2002 2,200 40 --- 10 10/27/2002 5,000 170 --- <10 10/28/2002 800 80 --- 31 10/29/2002 3,000 3,000 --- 52 10/30/2002 3,000 Soo --- 393 10/31/2002 5,000 300 --- 20 11/1/2002 3,000 80 --- 20 11/2/2002 >160000 22,000 --- 278 11/3/2002 50,000 1,300 --- 41 11/4/2002 5,000 230 --- 52 11/5/2002 30,000 3,000 --- 63 11/6/2002 17,000 3,000 --- 41 11/7/2002 1,700 500 --- <10 11/8/2002 51000 110 --- 10 11/9/2002 5,000 70 --- 30 11/10/2002 1,100 130 --- 30 11/11/2002 8,000 40 --- 31 11/12/2002 1,700 230 --- 41 11/13/2002 3,400 800 --- 31 Final Effluent Results Enter000cci MS-2 Total Coliforms Fecal Coliforms EnterococcV100ml by Enterolert Coliphage Date MPN/100mL MPN/t00mL by Membrane Filtration MPN/100m1 PFU/100mL 11/14/2002 1,400 70 --- 31 11/15/2002 300 20 --- 20 11/16/2002 5,000 70 -- <10 11/17/2002 2,300 130 -- 10 11/16/2002 3,000 3,000 -- 20 11/19/2002 80 80 --- <10 Note: numbers in bold type are final results LA: Lab Accident 3" ORANGE COUNTY SANITATION DISTRICT 8 ra I J`1 phone: (7141 see-2a11 November 12, 2002 meillnp." .. P.O.Box 8127 Founteln Wley,(A Ms. Janet Y. Hashimoto 9272E-e127 Manager, Monitoring and Assessment Office trreet add...; United States Environmental Protection Agency, Region 9 lounainMet a 75 Hawthorne Street R-2 Fountain whey. us ) e27oea01e San Francisco, CA 94105 RE: Public Communications and Outreach for Secondary Treatment Implementation Mem6Ar Ms. Hashimoto: Placards. Thank you for taking the time to visit the Orange County Sanitation District(OCSD)on titles Wednesday, September 25. At that meeting we discussed our plans for involving the an.h.lm various stakeholders in the planning and implementation of our move to secondary Brat treatment standards. OCSD is committed to keeping our stakeholders informed of our a... Perk progress as we make a timely transition to secondary treatment standards. Lyp es. Fountain Wey Faliertcn In order to ensure and validate OCSD's commitment to a timely transition, a peer review cards" `ea, panel is currently being assembled b the National Water Research Institute NWRI to o. Huntington Beech P Y 9 Y ( ) ('Vine provide an independent,third party review of the process and planning that OCSD staff Le Hats Le Palma and consultants will soon undertake to determine a practical timetable to achieve Lee wamltpe secondary treatment standards. The panel will consist of academics,technical experts N'a'aPOn&.Ln and individuals that have practical experience in similar projects of this size and scope. a'anPlacentia More information on the panelists and their background experience will be made Saner^na available by NWRI and its executive director Ron Linsky once that plan has been seal Beach Renter solidified.We would like to Invite your recommendations for experts EPA believes should Tustin sit on this panel. Wit.Park Yorba Linda Monthly updates regarding the progress toward achieving to secondary treatment C..... of Orange standards will be given to our board of directors through the monthly OCSD steering committee and board of directors meetings. The committee meetings are held In a public Satitery Districts forum and members of the environmental community regularly attend. in addition, the caste Wee, general manager provides updates on progress through monthly informational letters to mkw-y G'ry . the board.This letter is mailed out to the board of directors, city managers and other Water Districts officals and is available on our website at www.ocsd.com. Beginning December 1, 2002 OCSD will launch a new and improved Website. Special features were added to the site trNne Bench so that the OCSD can more effectively communicate with the public. These include: a general manager's message available online and via email subscription, subscription services for regular topic updates such as secondary treatment plans, biosolids, urban runoff and other topics of interest. 'To Protect the Public Health and the Environment through Excellence in Wastewater Systems' Ms. Janet Y. Hashimoto Page 2 November 12, 2002 Active participation will be needed from all community stakeholders during the process of obtaining a new ocean discharge permit, ramping up secondary treatment capacity, achieving secondary treatment standards and the completion of OCSD's 20-year$1.9 billion Capital Improvement Program. We are continuing to evaluate the best methods of communications among OCSD and our community stakeholder groups and are committed to providing effective and timely information to the public we serve. If you have any questions, please contact me at 714/593-7400 or Sonja Wassgren, OCSD's principal public information specialist, at 714/593-7122. Sincerely, 41A, � P A� Robert P. Ghirelli, D.Env. Director of Technical Services Ms. Janet Y. Hashimoto Page 2 November 12, 2002 Active participation will be needed from all community stakeholders during the process of obtaining a new ocean discharge permit, ramping up secondary treatment capacity, achieving secondary treatment standards and the completion of OCSD's 20-year$1.9 billion Capital Improvement Program. We are continuing to evaluate the best methods of communications among OCSD and our community stakeholder groups and are committed to providing effective and timely information to the public we serve. If you have any questions, please contact me at 714/593-7400 or Sonja Wassgren, OCSD's principal public information specialist, at 714/593-7122. Sincerely, Robert P. Ghirelli, D.Env. Director of Technical Services \ ORANGE COUNTY SANITATION DISTRICT r' r oPles no Penny ge\creta?Y \abe11 p„,17 November 13, 2002 Board 0141962 t fa: [71419620356 To the Chair and Members " ...aB.`am of the Board of Directors mailing madness: Po. B.,8127 Subject: Board Letter Fountain Valley G 9272E 8127 ireaedtlra. The followingare items that you may find interesting. If u need additional 10B44 ei�s Arenue Y Y g YD rauntaio vicar.cA information on any of the items, please call me. 92706-T01B Ground Water Replenishment System Wall Agenda' The Orange County Sanitation District and the Orange County Water District 0 commemorated the final approval of the joint operating agreement with a symbolic 0101ea signing ceremony. The event was held at the Orange County Water District board Anaheim room on November 12, 2002. Both the boards, city council members, and other area elected officials joined supporters and Ground Water Replenishment System team Beene narkC�prs members and staff to sign a "Declaration of Orange County's Water Reliability and Roanuou alley Independence from Surplus Colorado River Water'document. anermn circles, Grove Muncngron Beach Disinfection Update Irene La Habra Le Palma The disinfection system has been operating for over three months. We continue to Los Alai successfully disinfect the final effluent. October 2002 results for total coliform Nea9art Beach averaged about 43,000 MPN/100 ml down from an average bacteria level in the final w.cecue effluent of 25,000,000 MPN/100 ml prior to disinfection. There was one day in the Santa Are month of October when the monitoring sample exceeded the operational target for Seel Beach a rmn total colifoon. Tusrin V,IIa nark aria Linda Staff continues to upgrade the temporary disinfection system by adding some redundant piping, spare bleach pumps and by removing some bleach piping County of orange bottlenecks. 8in10iry District° Secondary Treatment Standards Update Costa Mo. Me.,City The federal Clean Water Act defines secondary treatment as 30 parts per million wrier platelet+ (ppm) biochemical oxygen demand (SOD)and 30 parts per million total suspended solids (TSS). We have assembled a team of operators, scientists, engineers, lrnne Ranch technicians and regulatory specialists we call Team 30-30' to achieve these standards in as timely a manner as we practically can. The Operations staff intends to have all the existing secondary facilities online for operation by January 2003, The Operations divisions continue to make in-plant adjustments and improvements to existing processes to advance toward secondary T maintain world class leadersh,n,n mesrewater and water resource management Members of the Board Page 2 November 13, 2002 treatment standards. During the twelve months prior to the Board's decision of July 17, our final effluent quality averaged 72 ppm BOD and 51 ppm TSS. During October, the final effluent quality averaged 62 ppm BOD and 39 ppm TSS. Bob Ghirelli and his Technical Services staff are working with our consultants, EPA and the California Regional Water Quality Control Board and the Governor's Office to make certain that our next permit has reasonable terms and conditions that hold us accountable for achieving reasonable progress on one hand, while avoiding unreasonable risk of regulatory fines on the other. Offshore Water Quality Testing The recently amended Ocean Discharge Permit from the Regional Water Quality Control Board and the Environmental Protection Agency includes two major changes related to assessment of receiving water quality. The first is a California Water Act compliance requirement at the 3-mile limit for recreational water use. Recent sampling shows we are in compliance. Previously our permit required bacteria compliance only in the top 10 feet at six stations. The amended permit requires bacteria compliance throughout the water column at a minimum of 6 stations. This monitoring must be performed five times each quarter, and all must be completed within a 30-day period.The sampling sites include areas in the Newport Canyon and extend up-coast to offshore of the Boise Chica area. Four sampling and testing events have been completed as of November 10, 2002. The highest bacterial count at any monitoring station was 63, 34, and 20 for total coliform, fecal coliform and enterococci, respectively. The second permit change requires water quality monitoring for reporting purposes only. The measurement standard is the same as stated in the Mission Statement for the disinfection project. The AB411 standards for bacteria must be met at the edge of the zone of initial dilution (ZID). A grid of nine sampling stations in a kilometer square centered over the ouffall is monitored from the top to the bottom of the water column. This monitoring has been performed twice, once each on October 22 and 29. When the standard is assessed as an average of bacterial counts at all depths throughout the water column at a single station (defined by longitude and latitude coordinates)the A8411 goal was met on both days. When the standard is measured at any depth, in the October 22 study, complete compliance was met for all except two samples. One sample was collected at a depth of 30 meters and another at a depth of 45 meters, and in those cases the total coliform density was 1904 and 1039 MPN/100 mL compared to the standard of 1000. For the October 29 study, all stations at all sampling depths met the AR411 standard at the edge of the zone of initial dilution. Fats. Oil and Grease (FOG) Program in Orange County The Santa Ana Regional Water Quality Control Board (RWQCB)promulgated Order No. R8-2002-0014, General Waste Discharge Requirements (Order) to control sewer Members of the Board Page 3 November 13, 2002 overflows in the region. The Order names 31 co-permittees, including cities in north Orange County and sewerage agencies such as the District. The District is designated by the Order as facilitator to help co-permittees in meeting the requirements of the Order. A major requirement of the Order is the development and implementation by each co- permittee of a grease control plan. The co-permittees are required to submit the plan to the RWQCB by December 30, 2004. As facilitator, and to optimize regional resources, the District has taken the lead in conducting a comprehensive, nation- wide study of grease control technologies and programs. The scope of the study is to develop FOG Control Program 'building blocks' that the co-permittees would be able to select and adapt to meet the requirements of the Order and local conditions. The first phase of the study is expected to be completed in March 2003 at a cost of$268,000. The cost is being funded jointly by the cities/local sewer agencies, County of Orange and the District. The County and the District have each pledged $90,000, while the cities/local sewer agencies have been asked to contribute $3,000 each, which will represent an estimated $90,000. In addition, the District expects to contribute about $70,000 this fiscal year for staff and administrative support of the project. To date, twelve cities/agencies have contributed their share for the study funding. Staff continues to work with our member agencies to collect the remaining local share of project funding An interim report evaluating a range of best management practices and innovative technologies and programs is ready to be presented to the project partners. Results have been obtained from 50 municipalities/agencies throughout the country, up to 30 manufacturers of grease control devices and 30 manufacturers of biological and chemical additives. The information has been summarized into thirteen building blocks that can serve as the basis for constructing an effective local FOG control program. EPA's Sewer Overflow Rule to Undergo Final Agency Review The Association of Metropolitan Sewerage Agencies (AMSA) has learned that the federal Environmental Protection Agency(EPA) is about to enter final agency review of the sanitary sewer overflow (SSO) proposal. This process requires all relevant EPA offices to comment on the proposal and reach consensus on the proposal's provisions before releasing it to the Office of Management and Budget(OMB). The final agency review process is expected to take approximately two weeks. AMSA believes that its discussions with key EPA officials in recent weeks will help to enhance the proposal's preamble language to include consideration of pivotal alternatives to the current zero overflow standard contained in the proposal. AMSA discussed its concerns and made recommendations regarding the SSO rule at a recent"Leadership Retreat"with, among others, the Assistant Administrator(AA) Members of the Board Page 4 November 13, 2002 for Water, G. Tracy Mehan; EPA's AA for the Office of Enforcement & Compliance Assurance, John Peter Suarez; and Ken Munis of the Regulatory Analysis & Policy Team of the Office of Policy, Economics and Innovation. AMSA has also learned that EPA may have revamped its cost estimate of the SSO proposal in anticipation of OMB's concerns about the rule's relative costs and benefits. OMB has 90 days to review the proposal. AMSA will keep its members informed of developments in the SSO arena as they occur. In September, the Board approved the bid of the disinfection facilities to add the disinfectant chemicals bleach and bi-sulfite dechlorination that will replace the temporary disinfection facilities presently in use. The new facilities will be in use over the next three to five years. These new facilities should be constructed by the spring of 2003. Water Year Begins with Guarded Optimism by Department of Water Resources From the November 2002 Urban Water Institute Newsletter Despite two dry years and talk of extensive drought, plus global warming threatening the Sierra snowpack, officials at the California Department of Water Resources say California's water supply remains in good shape at the start of the new water year cycle. Reservoir storage totals 87 percent of average, or about three million acre feet below what is usually'carried over to the next year. However, below average carryover storage in Lake Oroville, the State Water Project's key reservoir"might produce low initial forecasts of water allocation for next year." Water year 2003 begins with dry conditions in river basins, particularly in coastal regions and the southern Sierra, where runoff was among the lowest in the last 25 years. For areas of Southern California that depend on imported water from the Colorado River, continued drought conditions in the Rockies and the Colorado River Basin will impact storage in Lakes Mead and Powell. However, scientists at the National Oceanic and Atmospheric Administration (NOAA)said a return of an El Nino condition in the Pacific Ocean could bring relief, particularly for the Southwest states. Orange County Sanitation District Website Readies for Launch December 1, 2002, OCSD will launch the new website. The district redesigned the website to take advantage of the latest technologies available to public agencies. These advances will allow the district to better communicate with its various stakeholders. A few of the highlights include: • Interactive calendars • E-subscription capabilities • User friendly features • Web content management system Members of the Board Page 5 November 13, 2002 Changes to OCSD Public Tour Program The current tour program is under re-evaluation because of safety concerns resulting from two major construction projects. During this time we plan to continue to provide a valuable education experience while ensuring the safety of our visitors. The tour program may be modified to focus on a general overview of the wastewater treatment process and lecture on specific topics of interest to students and groups. The experience will be enhanced with videos, demonstrations, and/or activities. District employees conducted ten tours during November and several tours are scheduled for December. Santa Ana River Interceptor Relocation and/or Protection Prolect(SARI) A Citizen Advisory Committee (CAC) meeting will take place on November 21 at Bryant Ranch Elementary from 5-8 p.m. We will use this opportunity to update the committee on the progress that has been made and the obstacles the project faces. If you are interested in attending the CAC or would like further information on the SARI project please call Jennifer Cabral, public Information specialist, at 714 593.7581 or Hardat Khublall at 714 593-7377. Bushard Trunk Sewer Replacement On October 1, approximately 12,800 letters and fact sheets were mailed out to the communities that might be impacted by the Bushard Trunk Sewer Replacement project. The letter included an invitation to the open house that took place on November 7 at Plant 2 where staff answered questions. Several community members expressed their concerns regarding the project and the effects it may have on them. If you have any questions or would like further information regarding this construction project or the outreach please contact Sonja Wassgren, principal public information specialist, at 714 593-7122. Odor Complaints I have attached a copy of the monthly odor complaints received by the Control Center. Published Articles of Interest I've included copies of articles from various sources that you may find interesting. I would appreciate your feedback on receiving these articles, as there have become so many recently that it is difficult to determine which ones are most informative to you. Members of the Board Page 6 November 13, 2002 If you would lik=of the above items, please call me. Blake P. Anderson General Manager BPA:jt G IWP.OTAN MIHOM HERS TO THE[ DWI IMT?WMD LETTER DOC Attachments Data, odder 15. Monthly Log of Odor Complaints-2002 Jare 11 Mal If 11 If If �a ©o ©a �� my ov mra ma mr ma ao —� �� —® ® o w �r mom o ISMSr m. o�W 9,22 v ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ area loan es ■■ ■■ ■■ laro ®o ar 1n. mra N., . �f 11 ©ram m ®rM or f mm n Mei mr S in oo mo m ors m �MWater Call. Test 3 lots 7 1�1——0 TOM 9 T.H, T. H, real ma mo 7J ®ca oo ®ram ors mo �aI ram oY �� ®rn ern ®ra ora 7 As �MI ors �� myW4 �� ern Ww �mmo ®o �� ov m �� mn �� momo ©: �� �� S W �� mr� �� �� �� .ORANGE000NT7 2Park Playa,Suite 100• Irvine,California 92614-5904 BUSINESS COUNCIL phone:949,476.2242•fax:949.476.9240•ud:www.ocbc.org �COHI.RnfY October 15, 2002 Hon. Shirley McCracken QAY President, Board of Directors Orange County Sanitatio lstrict 10844 Ellis Avenue Fountain Valley y,CA 92708-7018 IAZINPPR 6�6 v, Re: Groundwater Replenishment System —Support „¢GwMHx, ecoxoHicoPvrao°nMrt Hem aQ,Xe Dear Ms. McCracken: ewc�mg The Orange County Business Council (OCBC/Business Council) has learned mom that critical votes on the Groundwater Replenishment System are coming „aC iu w before the Orange County Sanitation District (OCSD) board of directors this PUEUCN= week. The Orange County Business Council urges OCSD to move forward W ',G wr° quickly but prudently with this project. „nowomm, J,� The Business Council supports the Groundwater Replenishment System a—C °° (GRS) project because it will responsibly preserve and reuse scarce water PIPa; cn resources and because it will help Orange County to become less dependent upon imported water. We note that the project has attracted significant levels of grant funding and is moving forward in a collaborative fashion. n¢aulHw+. Ra"anPanmanPRPM As the OCSD board of directors moves to formalize agreements with the Orange County Water District and to commence construction, the Business Council urges you to exercise discretion in adopting a project schedule that PP�mRn. a protects the county's water reliability but spreads the project's financial P 0ftel, burdens across as much time as possible. These are difficult times for nwn E 0 MPRORR, families and businesses; we must act with vision and foresight to meet our infrastructure needs but with prudence as well to minimize unnecessarily „BP �n onerous impacts for ratepayers. UkYHOPMPNIfi IM'pTOP PpAngb Ru„X Thank you for your consideration. nceFPc"oPM. oxo ¢a aroPxFoaaoereaeaPUT Sincerely, nolWm,Jr. _ /I I V16 PP610FM, `. [ t� ntUXQ6�I SOX �_tfrM. � �tE.f.AL Stan Oftelie Julie Puentes President & CEO Executive V.P. Public Affairs SHAPING ORANGE COUNTY'S ECONOMIC FUTURE d.` 3o#&b LwrmeZ PARSONS Parsons Infrastructure&Technology Group Inc. 100 Wes,Welnul Street•Pasadena.Calilania 91124•(626)440.6000.Faxr(626)440-6195 October 15, 2002 Board of Directors ORANGE COUNTY SANITATION DISTRICT P.O.Box 8127 Fountain Valley,CA 92729-8127 Subject: Support for the Orange County Groundwater Replenishment System(GWRS) Dear Members of the Board of Directors: The Orange County Sanitation District(OCSD), together with your partners,Orange County Water District(OCWD)have joined together to plan,construct and operate one of the most important water reclamation projects in our history.The joint Boards have given support and resources for this exciting project for the past several years during its planning and permitting phases. Now comes the time to move GWRS from the drawing board into reality. GWRS is right for the citizen-mte payers of the communities you represent. It will significantly improve our environment and our ocean. It will protect our vital groundwater basin from saltwater intrusion. It will build up our groundwater reserve,which reduces our dependence on costly imported water;water which may become scarce in the future. It will help protect us from future droughts. GWRS will help us hedge future,higher costs of imported water. It will save energy. In short, GWRS is right for Orange County. Your approval of the next phase of the GWRS project is vital. It is a bold and expensive step. It appears all roadblocks have been removed. The opportunity to do the right thing is at hand. I respectively urge the Board to approve staff s recommendation to proceed with the construction phase of GWRS. As a 44-year resident of Orange County, I thank you for your continued support of the GWRS project. Respectfully, PARSONS— William H.Tappan cc: Blake P. Anderson(OCSD) oVirginia Grebbien (OCWD) ORANGE COUNTY COASTBEEPER 441 Old Newport Blvd. Suite 103 Newport Beach, California 92663 Office: (949) 723-5424 Pax: (949)675-7091 Email: coastkeeperl@earthlink.net http://www.coastkeeper.org October 18, 2002 Mr. Blake Anderson, General Manager Orange County Sanitation District P. 0. Box 8127 Fountain Valley, CA 92728-8127 Dear Blake The purpose of this letter is to express our support for the Ground Water Replenishment System. This is the right program at the right time. We firmly believe our future sources of water will rely on water reclamation and desalinization. As most things in life are a convenience, water is a precious necessity. On behalf of our Board of Directors, members, and volunteers, the Orange County Coastkeeper applauds both the Orange County Sanitation District and the Orange County Water District for their proactive approach to replenishing the aquifer and the injection of high quality water into the seawater intrusion barrier. Secondly, we applaud your leadership, which has resulted in the effective partnership between the districts, necessary to achieve the goals of this highly important Ground Water Replenishment System. Best regards Garry Bro in attNll Executive Director REAL Cities Page 1 of 3 Tappan, Jean From: Anderson, Blake Sent: Thursday, November 07,2002 8:49 AM To: Tappan,Jean Subject: Board letter 0 REAL ndusVAHome Rk ( - 1 Contact / FAQ P News Comparde Report gives UCLA-area consumers low grade Stockson water reuse People Source: U-WIRE Heu Publication date:2002-05-11 Arrival time:2002-11-06 SEARCH LOS ANGELES--The water drinkers of Southern California haven't quite been making the grade. The University of California-Los Angeles Institute of the Environment recently published its fifth annual Southern California Environmental Report Card,which discusses water treatment and recycling, along with three other local environmental issues of concern. With a constantly increasing population and scant rainfall, the Southern California water supply has always been under pressure. The study in the report card,written by Professors Mike Stenstrom and Richard Berk, discusses the technology of water reclamation and reuse, which can help ease the strain. Water reclamation is the process in which wastewater is treated and filtered for reuse. Currently,this recycled water is being used to water highway medians, golf courses and private front lawns. The report card gave water reclamation agencies and plants an A grade.The rest of us,the water consumers, received a D. Southern California residents have been given this low mark due to a bad attitude and inaccurate outlook.There has been a long and wrongly held perception that water reclamation is simply channeling water from "toilet to tap.' 'People know where the toilet is, people know where the tap is," said Earle Harting,water recycling coordinator of the Los Angeles County Sanitation Districts. 'They can connect the two very easily. But they have no idea of the 11/7/2002 REAL Cities Page 2 of 3 hundreds of millions of dollars of infrastructure in between those two that keep them separate," he said. The product of the three-stage reclamation and water filtering process meets all federal qualifications for drinking.Thousands of gallons of wastewater go through a reverse osmosis filtering process in which semi-permeable membranes reject viruses, bacteria and other impurities. "What Mother Nature takes weeks, months to accomplish,we do in 12 hours; Hartling said. So far,the public hasn't been receptive to putting this water to use. "It's a change of attitude,"said Berk,professor in the Department of Statistics and Sociology and co-author of the report. "People have no problem with using recycled water to water golf courses, but they don't want to use it or wash with it in their homes." According to the report card,this wastewater could create new supplies equal to approximately 50 percent of our water consumption. The Southern California water supply is imported from a variety of places, including sources in Sacramento and the Colorado River. Agriculture uses 85 percent of that water,and another percentage goes to preserve environmentally sensitive areas like Mono Lake. But consumers show an aversion to drinking recycled water, preferring its bottled and sealed counterpart. Ironically,the regulations on bottled water, according to Hartling, are much more lax than those placed on tap water. Bottled water is not required to meet the standards imposed on tap water by the State Health Department. "People seem to automatically think that because it's in a bottle and it's got a fancy label on it, it's better than tap water." Harting said. "Sometimes it may taste better, but it's not necessarily safer." In a survey,the IoE found that only 18 percent of respondents would use reclaimed water for drinking,even after it was proven to be as pure as the water that currently flows from the tap. On the other hand,91 percent wouldn't mind using it to water highway medians,and 85 percent would use it to wash their cars. The IoE and Los Angeles sanitation and water agencies declare this is solely due to the public's misconceptions of recycled water. Residents of Southern California can't afford to have those misconceptions after receiving below average rainfall for the past three years. Several projects are being conducted by the Bureau of Reclamation,a branch of the U.S. Department of Interior,to increase the reclamation of water in California. Among these are the West Basin Water Reclamation Project at the Hyperion Wastewater Treatment Plant, which will ultimately recycle 11rn2002 REAL Cities Page 3 of 3 70,000 acre-feet of water annually. The East Valley Reclamation Project being constructed by the Los Angeles Department of Water and Power will recycle 35,000 acre- feet of water. The numbers worsen with impending drought.Water runoff in Sierra Nevada was about 45 percent to 80 percent below average this past year. In the event of a drought,water will be rationed and usage will be necessarily cut back.The drought that lasted from 1981 to 1997 brought with it an increased interest in reclaimed water. "I don't think that people pay attention unless there is some sort of a crisis," Hartling said. So tar,this has proven to be true in Southern California. 'There is a lesson to be learned from the recent energy crises; wrote Stenstrom and Berk in the article."Water-reclamation plants take just as long to construct as electricity-generating plants, and water is much less transportable than electricity." The report card by the IoE brings to light that the greatest barriers are still the public's outlook and a lack of awareness of this pressing issue. "The time to drill a well is not when you're thirsty," Hartling said. 'Because then it's too late." Go to www.foe.ucla.edu/publications/repor[02/RCO2.pdf to view the full Southern California Environmental Report Card. (C)2002 Daily Bruin via U-WIRE Publication date:2002-05-11 ® 2002, YellowBrix Inc. 11/7/2002 3T Governments yearn for a younger crowd J N I Civil service• Public r zT�c high cost of living and x Uhousing o a encies are worried Southern California are aria v W u U they won't be able ing People into the private to replace redlild ' sector despite the strong ben. t _ V r P g efit packages that typiraily � 'TI Bab Boomers. a`&� co with a government lob. N `e /J- y tl-6�0 L.• '4 In Newpan Beach one of .1 3 gWou,xtonrllt �.. the counry's higherPaying cs qy j1s N R a J I Tha amye cams Reinter '' _ s a> ties,the planning director has 'r1'W,11 a• t p: a salary range of $98000 T' ssfyyy 4A cIF Wantnd: Govern- yes $120,000.Thus same type of t� .a teem agency seeking I^b in the private ucmr pryz ssI S N g S He...... talented. self- sm6p0 that post. rsa ..Alt 3 •3 ers lookingaCity for l, f I Andage Char penal pushing p exanpe walling to Gry Hall image doesn't help,etcher. Q pencibe shim,, shatterh _ �) "There is t problem out � �.a Cfl pencil-pushiv8 Pape h ' .� f here in chat smdrncz do nos loser image of your father's e dry government a bureaucrat an m ced exciting mmresnng place This ad isa nor yet into work-Sainatem said. duefied seawn,but it',b - X The bureaucrats point out wire the rallying cry f 9 �a� rbar their lobs are anything growing number of public 5999 \ but ordinary. Jennifer Phd- agen worried they wont •�. lips, Fullwoni assistant to be able mreplace the rapidly the city manager.said her job miring Baby Boomers, is different every day. official. say ir. Juices. nM.....Bu u .fi s,Bea citynnagrr,6 heading an effort ways.wrnct Generation -If ng wi s dealish a has of ingly difficult ..fling X.and those even younger,to government jobs •Photo:Mindy Schauer/Ths Rwlito people, crisis acam.'entsm young people at a time when and making yuhck decisions,' an aging workforce 6 setting salary for each year worked �. "Kids'a.,smi e(to urvice)is said Phillips president of the g�a11Pe its sights an grabbing the gold when retiring at 50. 0511 en we ire tem.rq sae r largely through their schools' Municipal Management Assn- watch of retirement. The outlook is even more eeasu.a.ae ruses apnc octal-ssivue component. ciation of Southern Califor- Take Brea for example.Of dire for smaller city govern- 'awassoussran Kids are going out to do good nia. The organization has the city's MS full-lime em- ments. where offscialas say work but don't weamrily started Posting information players,24 percent are eligi- most young people aren't "•`•so'tkm¢m understand haw their govern- on its Web site about jab op- P ble for retirement and an ad- even aware the jobs exist. I.Pa row+.mas se rat rtr e.,works." pummulea in government. 13 doomal 16 percent will each[Fural O'Donnell is heading an of mThac problem 6 min- "Do we do valuable work or retirement age in five years. n by the League of Cali- rat romdnn m Pe Mitsu rl pounded in Orange County, are we just bureaucrats push- Those numbers fellow thelga. Cichez called "Pmpar- .M1Kr.n arraaz aa.e+.rr.crgi where there isn't a large can- ing paper fromone side ofthe o national trend-53 percent ofg the Next Gmermj.n" to mow arassessasasdwkaa. trained govemment late Las desk m the.shed'O'Donnell baramaasa rm hx e'Hr federal government worker ways to aractCener Mgeles,said Alan Saltuteim asked. "We dont do a good will be eligible to retire in theoeX, andshooevena•aeies dean ofpublic administration job talking about all the good r.ers.ter x aces vsd•4.mnest four years,dy School ofounge.us el government jobs. at California State University, things local governments do' CL Harvard's Kennedy School ui O'Donnell aid there a rr`sdieb"aks"YHf O° Fullerton. Alm. Vicjo resident Nancy Government. significant value differences 'Sometimes pmple don't Misbrand,who will graduate ty Experts say this will result in young people entering go- St. Albans School for public even Wow which city they in May with a waster's inpub- In a shallow pool of qualified day'z workforce rim thane of Service in Washings.., D.C., live in:he said. lie administration from Cal employers in the next few 40 years ago. designed m bolster young Early education is going to State Fullerton, said govern- years and a rising cost in the For students in the 1960s, people's attitudes .harm be key to mcmlting in the In- men, interests her, but she load, state and federal goo children of the Jahn Kennedy working for government. ture,said Ray Silver,Hunting- would rather go into reaching. ailments compiling to and Lyndon Johnson•� a -1 really want to serve.and l ten Beach city administrasar Shalwoun.35.isa former em- re...it and retain wnrkerz. public urvice was a noble en- feel that we live in such a and president ofthe League of ployment-agency manager you're going to sun zee- de.vor,he said.-Tha,felt an wonderful country and so California Cities city manag- who decided she wanted a ing salaries creep up as you obligation and need to defend much 6 done for all of us 1 an department. higher education."1 think Vil have to attract people: said democracy," O'Donnell said. wanted to give back-Tanner Silver said 48 people took like to do an internship or get Brea City Manager Tim And that's something that said. The school's director, advantage ofearly-retirement some experience working in O'Donnell. 9fs already hap- licking.it.,he said. Mary Ann Wwowt. said the packages offered this year as government, bur uhfmarely pening with rite and police." That's not necessarily true, 'Millennial Generation" - pan into cost-saving measure. it's not my career goal: she Three yours ago Brea in said 12-yew aid Ford Tanner. those behind Generation X- The it, expects m low 50 said."Trashing is more flex- creased retirement benefits who believes that when the are concerned about public people near year to retire- hale for me,and its something for its police officers to re- time comes his generation service. now arm of a staff of 1100. that is very rewarding." min competitive. The Pen- wdl be ready totake the reins. "Whas I'm discovering 6 a And he said that when he muolraised from 2 per. Tanner.a senior from Dal- lot of schools don't teach civ- basks around City Hall be •Cad Eblri.OttlwSY/b pementuftheannml lac.this summer attended the it, a.,nmm.' Warikml said. zees few naffers under 30. .ygM'Wgremm /^\ / 3ohRo CLTIE/a� �R \ ORANGE COUNTY CHAPTER 1 7/re Inlamefion Menepemenf Pro/essorrels November 1, 2002 Mr. Blake Anderson General Manager Orange County Sanitation District P 0 Box 8127 Fountain Valley, CA 92728-8127 Dear Mr. Anderson: On behalf of the Board of Directors, Orange County Chapter of ARMA International, I would like to extend our sincere appreciation for the Orange County Sanitation District's support and participation in our Certified Records Manager Workshop held at OCSD on October 18 and 19, 2002. As always, your facility was beautifully maintained and your staff professional, friendly, and helpful. We value OCSD's participation in helping us as we promote professional development for employees of both government and private companies in Orange County and beyond. Thank you again for allowing Orange County ARMA to hold our workshop and our other functions at your facility. We truly appreciate you and your generous support! Sincerely, Cathryn Westfeldt, CRM ICRM Liaison Orange County Chapter of ARMA International Cathryn Westfelot,CRM ICRM liaisWOrargs County Chapter of ARMA international senior Records Analyst NeDoneI Archites and Records Adminiatralicn PacRc Region 240DO AAla Rd.. 1st Floor East,Laguna Niguel,CA 92677 949-360-2642,celhyveideldtCrarasw aewwu c,z,TresL SignOnSanDiego.com>News>Election 2002 --Voters control fate of huge funding plan Page 1 of 5 SignOn@=DlaSt�D.com Cb PRINTTHIS Voters control fate of huge funding plan State on road to infrastructure turnabout? By Ed Mendel UNION-TRIBUNE STAFF WRITER October 27,2002 SACRAMENTO—Longtime California residents, when caught in traffic jams and inching past run-down schools, may remember how different things were during the golden era of the 1950s and 1960s. The Golden State was once among the national leaders in spending on mads, schools and other infrastructure. But for a number of reasons,spending on public facilities _ dropped in recent decades,despite rapid population +. growth. K.C. ALFkED / Union-Tribune Gov. Gray Davis and former Gov. Pete Wilson both Coldonna once was among national leaders In spending acknowledged the problem b appointing blue-ribbon on roads and other infrastructure.That fell off In recent g P Y PPo g decades but the state is beginning to take steps to deal panels on infrastructure and growth—only to have their with long-standing problems, Including an upcoming reports ignored when they were issued during economic ballot measure. downturns. Now, in what could be the beginning of a historic turnabout, the state is taking some steps to deal with the long-standing problem. A Legislature criticized for lacking long-temt vision has required an annual report, first delivered last May,that must list state infrastructure needs as well as a way to pay for them. The Legislature also has placed measures on the ballot that would provide massive funding for school construction, fund the first phase of a high-speed rail system, and earmark part of each future state budget for infrastructure. "There has been an enormous amount of activity," said Bill Hauck, president of the California Business Roundtable, which issued an influential report in 1998 calling for more spending on infrastructure. "It's a discussion that is heard in the Capitol almost daily." http://signonsandiego.printthis.clickability.co Wpt/printThis?clickMap=printThis&fb=Y&url: 11/I/2002 SignOnSanDiego.com>News>Election 2002 --Voters control fate of huge funding plan Page 2 of 5 The decline in state spending on infrastructure since the 1960s, when California%public services were regarded as a model for the nation, is well-known and can be viewed through numbers in several ways. State spending on infrastructure per capita was estimated at$93 two years ago, said the Legislative Analyst's Office,about a third of the inflation-adjusted spending level during the mid-1960s. In 1967 nearly 20 percent of the state general fund was spent on "capital outlay" for infrastructure, according to the Department of Finance.But for the past two decades the amount has averaged well below 5 percent. California owes its prosperity to infrastructure built by previous generations,the Business Roundtable report said four years ago. But per-capita spending on highways had dropped to 48th among the states. What this means for many Californians is more time stuck in traffic,poorly maintained roads, tun-down and crowded schools, shorter library hours,more beach closures,park fees and other problems. California finds itself with many roads,buildings, and water and sewer systems nearing the end of their useful lives—and a booming population that could grow by 12 million people in the next two decades. For lawmakers at the Capitol, who are under intense pressure from special interest groups, investing for the future is more difficult than spending money on programs that people feel immediately. And despite the eroding infrastructure, California still has a leading economy, is widely regarded as one of the best places to live, and continues to attract new residents from throughout the nation and world. A common theory about the decline in infrastructure spending is that the big builders during the era of Gov. Pat Brown in the 1960s got well out in front of growth as they added highways, universities and water projects. "We were living off the legacy of the Pat Brown generation," said Hauck, "and we went through a couple of serious recessions." The infrastructure built during the 1960s provided a broad foundation for growth, said state Sen. Steve Peace, D-El Cajon, who carried legislation a decade ago creating a state infrastructure bank. "That literally lasted for a couple of decades and lulled us into the idea that we don't have to do those things anymore," Peace said, "because it was already done." One change in recent decades is that a greater share of the state budget must go for social services, mainly health care, and for schools after local funding was reduced by the Proposition 13 property-tax cut in 1978. Another big change, the rise of minorities through immigration, has caused some to wonder if a largely white electorate may have become less willing to make public investments. "Is the problem caused by some combination of hostility and indifference on the part of a body of voters that isn't sure it wants to carry this kind of load for those kinds of people?"journalist Peter Schrag asked in "Paradise Lost: California's Experience, America's Future," his 1998 book about the decline of public investment in California. http://signonsandiego.printthis.clickability.com/pt/printThis?clickMap=printThis&fb=Y&u... 11/1/2002 SignOnSanDiego.com>News >Election 2002--Voters control fate of huge funding plan Page 3 of 5 Often,too, it's more expensive to build things now than it was four decades ago. An inflation-adjusted dollar buys less, because of new state and federal regulations and other factors. For example: •Caltrans estimates that a mile of one-lane roadway today costs 50 percent to 100 percent more than in 1965 because of new mles on contractor oversight,safety,environmental protection and worker pay, and more night work to ease congestion. •The State Water Project was launched in 1960 with a$1.75 billion bond, about$12.25 billion in today's dollars. The Department of Water Resources estimates that it would cost about$15 billion to build the project today. •University of California Santa Cruz opened in 1965 with a 80,960-square-foot science building costing $2.8 million. University of California Merced plans to open in 2004 with a 102,000-square-foot engineering/science building costing $77.5 million. •The Coalition for Adequate School Housing says building costs are being driven up by such recent requirements as site screening for toxics, access for the handicapped, and automatic fire detection and sprinkler systems. As the new century began,the state had its only significant surplus during Davis'first term.The 2000 budget made the biggest infrastructure investments in years, mainly in schools and transportation. Schools have been perhaps the most notable example of the decline in public investment. Califomia ranked among the leaders in per-pupil funding in the 1960s, but by the 1990s it had dropped to about 40th among the states. Davis agreed to a$1.8 billion increase in school funding two years ago, which pushed California up to near the national average. He was under pressure from the California Teachers Association, which dropped a school-funding initiative after the budget increase. School construction also received a boost two years ago when voters approved a business-backed initiative that lowered the threshold for approving local school-construction bonds from two-thirds to a 55 percent majority if certain conditions are met. To ease traffic gridlock, Davis put$2 billion from the state general fund into transportation, a program historically funded mainly by gasoline tax,though not sales tax on fuel. Revenue from the sales tax on gasoline, $1 billion a year, was switched from the general fund to transportation for five years. Republican legislators, who had long advocated the switch, took credit for insisting that the gasoline sales tax revenue be used for transportation—a move made permanent by voter approval of Proposition 42 in March. Some Republicans contended that borrowing$1 billion from the new transportation fund to help close a record$24 billion budget gap this year will delay projects. But the legislative analyst and the San Diego Association of Governments agree with the Davis administration, seeing no significant delays. The big increases in school funding and transportation are regarded as significant progress by the Business Roundtable, which says the state may be moving into a new era of school construction. Voters approved a$9.2 billion statewide school-construction bond in 1998 and will be asked to approve http://signonsandiego.printthis.clickability.conJpt/priniThis?clickMap=printllis&fb=Y&u.... l l/l/2002 SignOnSanDiego.com>News>Election 2002 -- Voters control fate of huge funding plan Page 4 of 5 a$13 billion bond this fall,followed by a$12.3 billion bond in 2004. The approval rate of local school bonds has risen since the threshold was lowered, providing several billion dollars. "We will probably have covered the school fiscal needs that were in deficit in a fairly short period of time," Hauck said. But two of the big obstacles to additional spending on infrastructure remain. Still needed are: •A steady source of money, whether from bonds, new taxes or a designated piece of the state general fund. •A way to help lawmakers buffeted by short-term pressures maintain an interest in infrastructure in good times and bad. Under Roundtable-backed legislation intended to help accomplish both goals, the state Department of Finance in May issued the first annual five-year infrastructure plan identifying needed projects and a source of financing for them. The plan says the state should spend $56 billion during the next five years, about half on transportation. Most of the money under the plan would come from asking voters to approve an unprecedented amount of new bonds, $40 billion, which would be paid off by the general fund over decades. Because of the budget gap,the plan was released five months late and proposes spending only $1.6 billion from existing general fund money over the next five years. In the fall of 2000, when it looked like the state would have a$10.3 billion surplus,the Republican legislative caucuses in both houses proposed a pay-as-you-go infrastructure plan. The Republicans said the interest on bonds nearly doubles the cost of projects. But bipartisan legislation to create a growing infrastructure fund by initially setting aside I percent of the state general fund failed. Then as part of a budget package this year, Assemblyman Keith Richman, R-Northridge, persuaded the Legislature to put ACA I l on the ballot in 2004 to do what that legislation proposed. The initial I percent set-aside would eventually grow to 3 percent. The percentage could shrink if the state bond debt reaches a certain point or voters this fall approve Proposition 51,which redirects nearly $1 billion in motor vehicle sales tax revenue to transportation projects. The Legislature also put a$10 billion bond on the 2004 ballot for the first phase of a high-speed rail system capable of whisking passengers between Los Angeles and San Francisco in 21/2 hours. Backers say high-speed rail is one of the major decisions facing this generation of Californians, an undertaking on a heroic scale whose impact could be comparable to the freeways and the State Water Project. Opponents say the investment, which some predict could reach $40 billion, would be better spent on other needs. They believe that the increased traffic can be handled by expanding current air, highway and rail systems. http://signonsandiego.printthis.clickability.com/pt/printThis?clickMap=printThis&fb=Y&u�... 11/1/2002 SignOnSanDiego.com>News>Election 2002—Voters control fate of huge funding plan Page 5 of 5 To push for more infrastructure spending, the Business Roundtable helped create a group last year,the California Rebuild America Coalition,which includes local governments, broad-based business groups, and engineering,consulting and financing firms. The Commission on Building for the 21 st Century appointed by Davis recommended the creation of a new organization representing the public and private sectors, the California Infrastructure Partnership. "Through analysis,dialogue and collaboration,the Partnership can be the ongoing mechanism through which,together, we can achieve the vision for California," the commission report said. Find this article at: htipJ/www.elgnonsandiego.ton✓news/Imlkkst fate20021027-9999_1n27infra.honl r Check the box to include the HIM of Ynks reterermd in the ankle. �IGho ; http://siponsandiego.printthis.clickability.com/pt/printThis?clickMap=printThis&fb=Y&u.... 11/1/2002 FROM SURFER MAGAZINE \ What Others are Saying About Us 1 - �aJ The tension was thicker Man ronmenlal bullnom,boomed the breaking vote.over 200 people Basch Chapter,snip Is an asloyar the putrid slop the Orange concems of surfers and the surl pecked,the I Wardroom and after IN realf malign of our pob iesl pn County Sanitation District was Industry. the vertl¢I was announced,the pass and Me power of grassroots up against. 'it is hat rght for the inland wide room crossed, sctmdm.'pralwnceo CMs Even On Wepoesday.Jury 17 Ilay nstonry to pemelrze Mass who are With its deciding vote,Ins d,is- executive director of the SurM1ider narrowly voted,13 to 12 to abandon most hre al shop it cannot be act agreed to comply with dine Foundation. a federal waxer allowing them Id, gapped that surPrg is a three-telbn. Clean Water Act,which requires Leading Hunalagtm Beach dump 240 moon gaicns of panzer dollar industry n Orange County Iwo levels of treatment to loll most appal Dcn Schultz is equally y-treated se«age man alN Rfli- and the Israeli ratmal mantel in ceders and wales before sewage Milled.but worms d hard vofn smad Into the Patlfic.That vcken- Items of sales vppma.Vat thus most clNgs into posted,rivers and lakes. ahead.Nw,most convince Me d IN offal some people call haler 0 influential surfing pagan in Me mum Board memhers also mother- adt to invest in the proper took filthier than what most eiher 16.00o try s etect'rvery a no-surf zme, mousty agreed to ock for the meet ogy.They have the dhon-term nations)sewer agenpies saw, Thais achadbly bad for buseass.' elf dent way to complete the mac- mach of chemical treatment.but During heeled doeing argu. For Semler Foundation assay upgrades while onions may eliminate tact mends,Shaun Tomsan.the 1977 atttvitts,it was nervawrede g as "This victory caps 0 10 years as it's normal to sea life'—To world losing clampion and an, the decascn came down to Me tie- of work by as Hur ngaaryStal Chosen AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 www.ocsd.com REGULAR MEETING November 20, 2002 —7:00 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 an a supplemental agenda posted not less than 72 hours prior to the meeting date. All current agendas and meeting minutes are also available via Orange County Sanitation District's Internet site located at www.ocsd.com. Upon entering the District's web site, please navigate to the Board of Directors section. 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, if any. (See listing in Board Meeting folders) 4. Appointment of Chair pro tem, if necessary 5. 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 three minutes or less. 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). 11/20/02 Page 2 6. 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 1. 30130 Monthly Update C. Report of General Counsel 7. If no corrections or amendments are made, the minutes for the regular meeting held on October 23, 2002 will be deemed approved as mailed and be so ordered by the Chair. 8. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 10/15/02 10/31/02 Totals $5,340,853.52 $11,897,884.25 CONSENT CALENDAR 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 or staff member, 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. The Chair will determine if any items are to be deleted from the Consent Calendar. 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Receive and file Summons and Complaint, Emilio Ariston v. Orange County Sanitation District, Orange County Superior Court Case No. 02CC16686. regarding Complaint for Damages Arising from National Origin and/or Race Harassment, Discrimination, and Retaliation, and authorize General Counsel to appear and defend the interests of the District. END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar, if any. 11/20/02 t Page 3 NON-CONSENT CALENDAR 11. a. Verbal report by Chair of Steering Committee re November 7 and November 20, 2002 meeting. b. DRAFT STEERING COMMITTEE MINUTES — NO ACTION REQUIRED (Information only): The Chair will order the draft Steering Committee Minutes for the meeting held on October 23, 2002 and the special meeting held on November 7, 2002, to be filed. C. (1) Establish a budget of$2000,000 for federal legislative advocacy; and, (2) Authorize the General Manager to enter into a Consultant Services Agreement with ENS Resources, Inc.for a one year period, effective January 1, 2003 through December 31, 2003, providing for professional advocacy services for a total amount not to exceed $180,000, in a form approved by General Counsel. d. Review and consideration of agenda items considered by the Steering Committee re the November 20, 2002 meeting. 12. a. Verbal report by Chair of Operations, Maintenance and Technical Services Committee re the November 6, 2002 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 November 6, 2002 to be fled. C. (1)Approve Change Order No. 3 to the contract with Kemiron Pacific, Inc. for Purchase of Ferric Chloride, Specification No. C-147, In the amount of$500,000, increasing the total contract amount not to exceed $3,035,000, for the period ending November 30, 2002; and, (2) Renew the contract with Kemiron Pacific, Inc.,for Purchase of Ferric Chloride, Specification No. C-147, for a one-year period, December 1, 2002 through November 30, 2003, providing for an additional unit rate increase of$97 per dry ton, increasing the total unit price to $426.69, including sales tax and delivery, for an estimated annual amount of$5,120,280. d. Approve Amendment No. 1 to the Agreement for Management of Biosolids with Tule Ranch/Magan Farms, extending the contract term for one year, January 1, 2003 through December 31, 2003, with four additional one-year options, for an annual amount not to exceed $3,804,000. e. (1) Approve use of Sancon 100 and Sancon 200 Series polyurethane coatings as the District's standard spray-on coating material for manhole and pump station wetwell repairs and rehabilitation; and, 11/20/02 Page 4 y (2)Authorize the General Manager to enter into a sole source Services Agreement with Sancon Engineering II, Inc., to provide coating and application services of Sancon 100 and Sancon 200 Series on an on-call basis for one year, with four one-year renewable options,for an annual amount not to exceed $300,000. 13. a. Verbal report by Chair of Planning, Design and Construction Committee re the November 7, 2002 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 November 7, 2002 to be filed. C. (1)Approve a budget amendment of$98,576 for Orange-Western Subtrunk Relief Sewer, Contract No. 3-25,for a total budget of$1,682,667; (2) Ratify Change Order No. 2 to Orange-Western Subtrunk Relief Sewer, Contract No. 3-25,with Elser Constructors, Inc., authorizing an addition of $94,956 and a time extension of 17 calendar days, increasing the total contract amount to$1,279,146; (3) Ratify Change Order No. 3 for an Adjustment of Engineers Quantities, authorizing an increase of$2,346, increasing the total contract amount to $1,281,492; and, (4)Accept Orange-Westem Subtrunk Relief Sewer, Contract No. 3-25, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. d. (1)Approve a budget amendment of$587,216 for Scrubber Monitor and Control, Job No. J-71-7, for a total budget of$3,319,216; (2) Ratify Change Order Nos. 2 and 3 to Scrubber Monitor and Control, Job No. J-71-7,with Margate Construction, Inc., authorizing an addition of$651,210 and a time extension of 20 calendar days, increasing the total contract amount to $1,905,779; and, (3) Accept Scrubber Monitor and Control, Job No. J-71-7, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. e. Approve Professional Services Agreement with Malcolm Pimie, Inc. for preparation of emission reduction study assessment in connection with Central Generation Automation, Job No. J-79,for an amount not to exceed $253,235. f. (1)Approve budget reallocation of$2,645,000 for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, with no change in total project budget; 11/20/02 Page 5 (2)Approve plans and specifications for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, on file at the office of the Board Secretary; and, (3)Authorize the General Manager to establish the date for receipt of bids for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76. g. Approve Addendum No. 4 to the Professional Services Agreement with Parsons Engineering Science, Inc.,for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, providing for changes in the Scope of Work for an additional amount of$140,667, for a total amount not to exceed $3,411,411. h. Receive and file Final Interim Strategic Plan Update, Job No. J-40-8, dated September 2002, prepared by Camp Dresser and McKee, Inc. I. Approve Addendum No. 3 to the Professional Services Agreement with Black& Veatch Corporation for Effluent Pump Station Annex, Job No. J-77, providing for additional design engineering services for an additional amount of$304,000, increasing the total amount not to exceed $4,015,523. j. Authorize the General Manager to negotiate Addendum No. 3 with Fluor Signature Services for Phase III of the Space Allocation and Interior Renovation, Job No. J-84, providing for a detailed engineering design and preparation of plans and specifications. 14. a. Verbal report by Chair of Finance, Administration and Human Resources Committee re the November 13, 2002 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 November 13, 2002 to be filed. (Minutes to be distributed at 11120102 Board Meeting.) C. Receive and file Treasurer's Report for the month of October 2002. d. Receive and file the Quarterly Investment Management Program Report for the period July 1, 2002 through September 30, 2002. e. Approve SAFETY-POL 304, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. f. Receive and file the 2002-03 First Quarter Financial Report for the period ending September 30, 2002. g. Receive, file and approve the District's Comprehensive Annual Financial Report (CAFR)for the year ended June 30, 2002, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. 11/20/02 Page 6 h. Adopt a revised per diem policy for authorized training and travel providing for daily limits approved by the IRS for various locations in the United States. i. Approve Amended and Restated Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System, providing for segregation of a portion of the ARBA funds to a trust fund for the benefit of current and future retirees, in a form approved by General Counsel. j. Authorize the books and accounts of Revenue Area 7 be combined with those of the rest of the Orange County Sanitation District, except for Revenue Area 14, and that future revenues, expenses and capital outlays be considered those of the consolidated Orange County Sanitation District effective July 1, 2003. k. Approve the reclassification of eight District employees and nine positions. 15. a. Verbal report by Vice Chair of Groundwater Replenishment System Joint Cooperative Committee re November 12, 2002 meeting. b. DRAFT GROUNDWATER REPLENISHMENT SYSTEM JOINT COOPERATIVE COMMITTEE MINUTES—NO ACTION REQUIRED (Information only): The Chair will order the draft Groundwater Replenishment System Joint Cooperative Committee Minutes for the meeting held on October 14, 2002 to be filed. 16. (1)Approve plans and specifications for Rehabilitation of 36" Force Main B, between Bitterpoint Pump Station and Junction Box, Contract No. 5-29-R1; (2)Approve Addendum No. 1 to the plans and specifications; (3) Declare the low bid submitted by Colich Construction, L.P., as non-responsive due to failure to provide complete submittals required; (4) Declare the second low bid submitted by Doty Brothers Equipment Co., as non-responsive due to failure to provide complete submittals required; (5) Receive and file bid tabulation and recommendation; and, (6) Award a contract to Insituform Technologies, Inc., for Rehabilitation of 36" Force Main B, between Bitterpoint Pump Station and Junction Box, Contract No. 5-29-Rt,for an amount not to exceed $1,552,470. 17. Authorize the General Manager to submit the Ocean Discharge Permit Application to the Environmental Protection Agency, Region IX, and the California Regional Water Quality Control Board, Santa Ana Region, consistent with Resolution No. OCSD 02-14, Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean. 11/20/02 Page 7 18. 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 C. Consideration of action, if any, on matters considered in closed session 19. Matters which a Director may wish to place on a future agenda for action and staff report 20. Other business and communications or supplemental agenda items, if any 21. Future Meeting Date: The next Board of Directors regular meeting is scheduled for December 18, 2002, at 7:00 p.m. 22. Adjournment NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of Directors, items shall be submitted 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. General Manager Blake Anderson (714) 593-7110 Board Secretary Penny Kyle (714) 593-7130 Director of Finance Gary Streed (714) 593-7550 Director of Human Resources Lisa Tomko (714) 593-7145 Director of Engineering David Ludwin (714) 593-7300 Director of Operations & Maintenance Bob Ooten (714) 593-7020 Director of Technical Services Bob Ghirelli (714) 593-7400 Director of Information Technology Patrick Miles (714) 593-7280 Assistant to General Manager Greg Mathews (714) 593-7104 General Counsel Thomas L. Woodruff (714) 564-2605 i Y� Orange County Sanitation District MINUTES BOARD MEETING OCTOBER 23, 2002 �oJNt SANITAT� 9 c P O y � � h rFcl'N TG HE ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 'e Minutes for Board Meeting Page 2 10/23/02 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on October 23, 2002, at 7:00 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 Shirley McCracken, Chair Tom Daly X Steve Anderson,Vice Chair Steve Simonian A Mike Alvarez Mark A. Murphy X Don Bankhead Jan Flory X Brian Brady Darryl Miller X Patricia Campbell Paul Yost X Debbie Cook Connie Boardman X Laurann Cook Larry Crandall A Brian Donahue David Shawver X Norman Z. Eckenrode Constance Underhill X James M. Ferryman Arlene Schafer John M. Gullixson X Michael Duvall A Alice B. Jempsa Arthur DeBolt X Tony Kawashima Tracy Worley A Beth Krom Greg Smith X Mark Leyes Bruce Broadwater X Pat McGuigan Alberta Christy X Roy Moore Marty Simonoff X Joy Neugebauer Grace Epperson X Russell Patterson Richard A. Freschi X Anna L. Piercy Tim Keenan X Tod Ridgeway Gary Adams X Jerry Sigler Jim Dow X Jim Silva Chuck Smith X Paul Walker Kenneth Blake STAFF MEMBERS PRESENT: Blake P. Anderson, General Manager; Penny Kyle, Board Secretary; Bob Ghirelli; Dave Ludwin; Patrick Miles; Bob Ooten; Gary Streed; Lisa Tomko; Mike Moore; Jim Herberg;Wendy Sevenandt; Jim Colston; Jeff Reed; Tom Blanda; Jan Collins; Paula Zeller; Lisa Arosteguy; John Weingarden; Kim Tolsma; Denise Martinez; Judy Bucher Minutes for Board Meeting Page 3 Y 10/23/02 OTHERS PRESENT: Thomas L.Woodruff,General Counsel; Alternate Director Alberta Christy; Darrell A. Nolte; Randy Fuhrman; Don Hughes; Irwin Haydock; Dennis Baker; Larry Porter; Dave Ross; Robert J. Caustin; Domingo P. Alamarez; Victor Alvidrez; Hannah Nguyen; Leo Pham;Wes Bannister, G. Van Drie; Bill Everest; Leo Ngo; Bill Mills; Annette McCluskey; Marge England;Tom England; David Mosher; Greg Woodside; Ron Wildermuth; Brad Hogin PUBLIC COMMENTS The following persons expressed support for the groundwater replenishment project: Leo Pham; Hannah Nguyen; Victor Alvidrez; Domingo P. Alamarez; Randy Fuhr man; Dave Ross; Dennis Baker; Irwin Haydock. The following persons expressed concern on the groundwater replenishment project and requested approval be delayed: Robert J. Caustin; Larry Porter; Darrel A. Nolte. REPORT OF THE CHAIR Chair McCracken reported that a special Steering Committee meeting would be held on Thursday, November 71h, at 3:00 p.m. to discuss plans to obtain grant funding for improved treatment. A meeting for the Ad Hoc Committee re Urban Runoff has also been scheduled for Thursday, November 218'. at 4:00 p.m. It was also announced that an informational Board workshop was scheduled for February 19, 2003, to provide new and returning Directors with an overview of the District's operations and facilities, as well as research and monitoring activities. Additional quarterly workshops would be held throughout the year on various subjects. Tom Blanda was then recognized for his 30 years of service to the District. REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, gave an update on the progress of meeting the 30/30 treatment levels, and referred the Directors to the monthly report in their meeting folders. He advised that protocols were being developed to provide level of treatment information on the District's website. It was then requested that Item 16 be considered out of order under the General Manager's Report. 16. Draft NPDES Permit Renewal Application Jim Colston, Senior Regulatory Specialist, provided the Directors with an update and overview of the draft National Pollution Discharge Elimination System (NPDES) Permit renewal application, which must be submitted to the EPA and the California Regional Water Quality Control Board by December 2002. The application will reflect the July 17, 2002 Board decision to meet the secondary treatment standard of the Clean Water Act as soon as possible. Final approval of the application will be requested at the November 2002 board meeting. Minutes for Board Meeting Page 4 10/23/02 In response to Directors questions, Blake Anderson noted that the Engineering Department is putting together a plan that will describe the additional secondary treatment facilities and the timing to construct those facilities. A third-party review panel will evaluate the plan to determine if the schedule is reasonable. This schedule,when final, would become a part of the District's NPDES permit. REPORT OF THE GENERAL COUNSEL General Counsel Thomas L.Woodruff had no report. APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held September 25, 2002 be deemed approved, as mailed. RATIFICATION OF PAYMENT OF CLAIMS MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims set forth on exhibits"A" and "B", attached hereto and made a part of these minutes. ALL DISTRICTS 09/15/02 09/30/02 Totals $5,339,955.32 $8,613,354.20 Director Mark Leyes and Joy Neugebauer abstained. CONSENT CALENDAR 9. a. MOVED, SECONDED AND DULY CARRIED: Approve Change Order No. 1 to Purchase Order No. 100536-013, issued to OCB Reprographics for Specification No. 9900-05,for an additional amount of$125,000, for a total amount not to exceed $225,000, providing for additional services for the contract year ending January 31, 2003. NON-CONSENT CALENDAR 11. DRAFT STEERING COMMITTEE MINUTES:A verbal report was presented by Director McCracken, Chair of the Steering Committee, re the October 23, 2002 meeting. Chair McCracken reported the January 2003 CASA mid-year conference would be held in Palm Springs in January. Steering Committee Directors were urged to attend the conference. The General Manager gave a report on the Orange County Infrastructure Report Card rollout which was held on October 1&. He also provided an overview of the major elements in the GWRS agreement and the amended budget. Chair McCracken reported on items presented by the staff and discussed by the committee. Minutes for Board Meeting Page 5 10/23/02 a) Advocacy activities in Washington, DC were presented. It was agreed that a special Steering Committee would be held on Thursday, November 71°, at 3:00 p.m. to meet with the Washington, DC consultants who will assist the District in obtaining federal funds to offset some of the costs of the District's ocean protection efforts; b) A copy of the draft ocean permit application was provided to the Directors, and the negotiation process was discussed; and, c) The General Manager's discussions with the General Manager of SAWPA to resolve the payment dispute for engineering work on the SARI line and the transfer of ownership of the reach of the line that requires relocation or in-river protection was reviewed. The Committee directed the General Manager and General Counsel to separate the issues of the$3 million owed the Orange County Sanitation District from the sale of the SARI Line to SAWPA. The Chair then ordered the draft Steering Committee Minutes for the meeting held on September 25, 2002 to be filed. d. DRAFT URBAN RUNOFF AD HOC COMMITTEE MINUTES:A verbal report was presented by Director Bankhead, Chair of the Urban Runoff Ad Hoc Committee, re the September 26, 2002 meeting. Director Bankhead reported the Committee received a report on the newest research findings discussing the development of quicker test methods to determine if waters are contaminated. Research is also underway to differentiate between animal and human sources of bacteria. An IRWD representative discussed IRWD's aggressive program to construct wetlands to treat urban runoff. The County's Coastal Resource Management Division representative reported the County is developing a master plan for coastal watershed that will include an urban runoff element. The County is working with the District and other agencies to develop a priority list of urban runoff hotspots that will be targeted for diversion systems or other control measures. It was reported by General Counsel that the District could not collect an increased sewer user fee to treat urban runoff. Proposition 218 process would need to be followed if any portion of a user/service fee was to be used for capital expenditures. The Chair ordered the draft Urban Runoff Ad Hoc Committee Minutes for the meeting held on September 26, 2002 to be filed. Minutes for Board Meeting 9 Page 6 10/23/02 12. DRAFT OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE MINUTES: A verbal report was presented by Director Ferryman,Vice Chair of the Operations, Maintenance and Technical Services Committee, re the October 2, 2002 meeting. The Vice Chair then ordered the draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on October 2, 2002 to be filed. C. MOVED, SECONDED AND DULY CARRIED: (1)Approve a budget amendment of$285,000 for Phase II Biotrickling Filter Demonstration Project, SP-90,for a total budget of$735,000,as an alternative treatment to control odors; and, (2) Approve Amendment No. 2 to the Study Agreement with the University of California, Riverside to provide continued support for testing biotrickling filters as an air emissions control technology for an additional amount of$60,000,which includes a $15,000 contingency; for a total amount not to exceed $205,000. 13. DRAFT PLANNING, DESIGN AND CONSTRUCTION COMMITTEE MINUTES: A verbal report was presented by Director Patterson, Chair of the Planning, Design and Construction Committee, re the October 3, 2002 meeting. The Chair then ordered the draft Planning, Design and Construction Committee Minutes for the meeting held on October 3, 2002 to be filed. C. MOVED, SECONDED AND DULY CARRIED: Ratify use of General Manager's Emergency Purchasing Authority, Resolution No. OCSD 99-23,for a purchase order issued to Ken Thompson, Inc. to construct a sewer line within Prospect Avenue in the City of Tustin, for an amount not to exceed $234,213. d. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 1 to the Construction Agreement with Southern Contracting Company for Standby Power and Reliability Improvements at Plant No. 2, Job No. J-33-1A, indemnifying Southern Contracting Company for installing, connecting, and energizing equipment suitable for electrical unclassified areas, which will be located and operating in areas classified as hazardous. e. MOVED, SECONDED AND DULY CARRIED: (1)Approve a budget amendment in the amount of$2,180,000, increasing the overall budget to$7,430,000 for the Short-Term Ocean Oulfall Bacteria Reduction Project, Job No. J-87; (2)Approve plans and specifications and authorize advertising for public bids; and (3)Authorize the General Manager to award a construction contract to the lowest responsible bidder for an amount not to exceed $4.100,000. I. MOVED, SECONDED AND DULY CARRIED: Approve Addendum No. 5 to the Professional Services Agreement with Boyle Engineering Corporation for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, providing for additional design engineering and materials testing services for an additional amount of $555,403, increasing the total amount not to exceed $1,754,511. Minutes for Board Meeting Page 7 F 10/23/02 g. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreement with Environmental Science Associates/ Montgomery Watson Harza for the preparation of the Santa Ana River Interceptor Environmental Impact Report/Environmental Impact Statement, Contract No. 2-41, for an amount not to exceed $420,000. Directors Steve Anderson, Mike Duvall and Mark Leyes abstained. h. MOVED, SECONDED AND DULY CARRIED: Receive and file Final Comprehensive Odor Control Program Evaluation and Improvement Report (A.K.A. Odor Control Master Plan),Job No. J-71-4, dated July 31, 2002, prepared by CH2M Hill, Inc. 14. DRAFT FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MINUTES: A verbal report was presented by Director Brady, Chair of the Finance, Administration and Human Resources Committee, re the October 9, 2002 meeting. The Chair ordered the draft Finance, Administration and Human Resources Committee Minutes for the meeting held on October 9, 2002 to be filed. C. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of September 2002. d. MOVED, SECONDED AND DULY CARRIED: Approve revised SAFETY-POL 101, and SAFETY-POL 202, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. e. MOVED, SECONDED AND DULY CARRIED:Adopt Resolution No. OCSD 02-19, Amending Resolution No. OCSD 98-33, Amending Human Resources and Policies Procedures Manual. f. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 02-20, Declaration of Official Intent to Reimburse Certain of the District's Capital Reserve Funds for Expenditures Made in Advance for FY 2002-03 Capital Improvement Projects from Proceeds of a Future Long-Term Financing. g. MOVED, SECONDED AND DULY CARRIED: (1) Establish a budget of$200,000 for Community Outreach and Public Involvement Ascertainment, Specification No. CS-2002-112813; and, (2)Authorize the General Manager to solicit bids and subsequently award a Consultant Services Agreement for Community Outreach and Public Involvement Ascertainment, Specification No. CS-2002-112BD, in an amount not to exceed $200,000. Minutes for Board Meeting Page 8 10/23102 15. DRAFT GROUNDWATER REPLENISHMENT SYSTEM JOINT COOPERATIVE COMMITTEE MINUTES:A verbal report was presented by Director Norm Eckenrode, Vice Chair of the Groundwater Replenishment System Joint Cooperative Committee, re the meeting held on October 14, 2002. The Chair ordered the Groundwater Replenishment System Joint Cooperative Committee Minutes for the meeting held on September 16, 2002 to be filed. C. Approve a budget amendment of$35,166.000 increasing the OCSD's budget to $236.372.000: and. approve Joint Exercise of Powers Aareement for the Development Operation and Maintenance of the Groundwater Replenishment System and the Green Acres Project. Blake Anderson, General Manager, reviewed the need for the GWRS project and the major features of the project. Dave Ludwin, Director of Engineering, reviewed the scope, schedule and amended budget for the project, as well as provided information on alternatives to the GWRS project. Brad Hogin, Assistant General Counsel, provided a review of the operating agreement. Staff responded to Directors questions on the feasibility of the project. Some Directors expressed concern with the increased cost of the project. Mr. Anderson stated that when the 1999 Strategic Plan was adopted, the preferred alternative was to participate in Phase I of the GWRS, and existing secondary treatment from Plant 1 was to be diverted to GWRS which would reduce the percentage of secondary treated water going to the ocean. The GWRS system has no cost impact on the decision to go to secondary treatment. Mr. Anderson further clarified that all secondary treated water provided to the OCWD for reclamation purposes would be accomplished by conventional, activated sludge processing in accordance with Title 22 provisions of current state law. Directors expressed concern that all alternatives were not being fully considered, and felt the increased costs of the project had exceeded other viable alternatives that were considered in 1999. It was suggested that these alternatives be looked at again. There was concern that OCWD was only required to accept a minimal amount of OCSD's water, and OCWD is anticipating alternative sources for cheaper water for the project. Other Directors spoke to the need for the project and Orange County's dependence on imported water. A motion was moved and seconded to delay approval of the budget amendment and operating agreement to allow staff adequate time (30-60 days) to prepare a more complete report on alternatives to the project based upon the increased budget numbers. Minutes for Board Meeting Page 9 10/23/02 A substitute motion was then moved and seconded to: (1)Approve a budget amendment of$35,166,000 increasing the OCSD's budget to $236,372,000; and, (2)Approve Joint Exercise of Powers Agreement for the Development, Operation and Maintenance of the Groundwater Replenishment System and the Green Acres Project. Directors debated the positive and negative impacts of the GWRS project. The impact of water independence for the county was cited, and the need for approval of the project prior to the November election which will have a major impact on the District's current Board of Directors, was discussed. There was concern the GWRS project was not the most cost effective solution for the taxpayer. Some cities within OCSD's jurisdiction (La Habra, Brea, Buena Park, Villa Park, Yorba Linda, etc.)will not benefit from the project, yet those residents' rates will be raised to subsidize the project. Directors called for the question, and all agreed to end the debate. Following a roll call vote,the substitute motion was approved as follows: MOVED, SECONDED AND DULY CARRIED: (1)Approve a budget amendment of$35,166,000 increasing the OCSD's budget to$236,372,000; and, (2)Approve Joint Exercise of Powers Agreement for the Development, Operation and Maintenance of the Groundwater Replenishment System and the Green Acres Project. Ayes: Don Bankhead; Pattie Campbell; Debbie Cook; Laurann Cook; Norm Eckenrode;Jim Ferryman; Tony Kawashima; Shirley McCracken; Pat McGuigan; Roy Moore; Joy Neugebauer, Russ Patterson; Anna Piercy; Tod Ridgeway; Jerry Sigler; Paul Walker Noes: Steve Anderson; Brian Brady; Mike Duvall; Mark Leyes; Jim Silva Absent: Mike Alvarez; Brian Donahue;Alice Jempsa; Beth Krom d. MOVED, SECONDED AND DULY CARRIED: Authorize award of a construction contract by the Orange County Water District (OCWD)to Mladen Buntich Construction Co., Inc.,for the Southeast Barrier Pipeline Project, OCWD Contract No. GWRS-2001-3,funded under Orange County Sanitation District (OCSD)Job No. J-36, Groundwater Replenishment System, in the total amount of$ 3,381,000,with OCWD and OCSD paying equal shares of$1,690,500. Director Mark Leyes opposed. Minutes for Board Meeting Page 10 10/23/02 e. MOVED, SECONDED AND DULY CARRIED: (1)Approve EmersonANestinghouse as the supplier for the process control system (PCS)for the Groundwater Replenishment(GWR) System based on a lowest calculated present worth life cycle cost of$2,369,916; (2)Approve a Pre-Selection Agreement between Orange County Water District (OCWD) and Emerson/Westinghouse for engineering services in the amount of $312,110. and a pricing structure for PCS equipment to be procured under future contracts valued at$1,640,132,for a total not to exceed $1,952,242; and, (3)Approve a Task Order between OCWD and EmersonANestinghouse providing for engineering services for the PCS design and standards development in an amount not to exceed $312,110,to be equally shared between OCWD and Orange County Sanitation District. Directors Brian Brady and Mark Leyes opposed. 17. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9 and 54957.6: The Board convened in dosed session at 9:56 p.m., pursuant to Government Code Sections 54956.9 and 54957.6,to discuss Agenda Item Nos. 17(a)(1), (2), and (3). Confidential Minutes of the Closed Session held by the Board of Directors 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 reportable action was taken re Agenda Item No. 17(a)(1). RECONVENE IN REGULAR SESSION: At 10:10 p.m., the Board reconvened in regular session and reported the following actions during the closed session. a. 2. MOVED, SECONDED AND DULY CARRIED: Approve implementation of the Classification and Compensation Study retroactive to July 12, 2002. 3. MOVED, SECONDED AND DULY CARRIED: Approve revising the components included in the benefits percentage calculation within the Executive Management Team's At-Will Contracts to exclude the employer share of the OCERS contribution. 18. Director Eckenrode inquired as to the status of the legislative efforts report that was requested at the September 25, 2002 meeting. The General Manager advised the report was being prepared and should be presented the following month. ADJOURNMENT: The Chair declared the meeting adjourned at 10:12 p.m. �T Secretary o e Board of DIr9 rs of Orange County Sanitation District Giwp.dtetadmint8SWinutesX092502 draft minutwA x, Claims Paid From 09/01/02 to 09/15/02 Warrant No. Vendor Amount Description Accounts Pavable-Warrants, 46968 Orange County Sanitation District $ 523,593.16 Payroll EFT Reimbursement 46969 Southern California Edison 88,743.D0 Power 46970 Allied Packing&Rubber,Inc. 205.14 Mechanical Supplies 46971 American Training Resources,Inc. 1.074.62 Training Materials 46972 AT&T Universal Biller 2,891.15 Telephone Service 46973 American Telephone&Telegraph Corp. 20.13 Telephone Service 46974 AT&T Wireless Services-Airtime 3,744.74 Cellular Telephone Service 46975 Court Order 626.20 Wage Garnishment 46976 Court Order 150.00 Wage Garnishment 46977 Consumers Pipe&Supply Co. 1,877.92 Plumbing Supplies 46978 Pacific West Printing&Promotions 1,437.98 Community Outreach Supplies 46979 Employee Benefits Specialists, Inc. 8,321.31 Reimbursed Prepaid Employee Medical&Dependent Care 46980 Court Order 525.00 Wage Garnishment 46981 Five Star Metals, Inc. 329.55 Mechanical Parts&Supplies 46982 Grayber 1,705.48 Electrical Pans&Supplies 46983 City of Huntington Beach 27.98 Water Use 46984 Industrial Metal Supply 745.07 Metal 46985 Industrial Threaded Products, Inc. 556.61 Fasteners 46986 Ingoglw,Lori 600.00 Professional Services-Community Outreach 46987 Intl.Union of Oper.Eng AFL-CIO Local 501 3,193.98 Dues Deduction 46988 Law/Crendall 50.00 Construction-Masonry Wall 46989 McMaster-Carr Supply Co. 189.45 Electrical Supplies 46990 National Bond&Trust 1,133.47 U.S.Savings Bonds 46991 National Fire Protection Association 115.00 Membership 46992 National Safety Council 515.00 Membership 46993 Fred J.O'Brien 150.00 Compliance Training Registration 46994 Operation Technology,Inc. 2,720.47 Software Maintenance 46995 Orange County Sheriff 45.00 Wage Garnishment 46996 Orange Fluid System Technologies.Inc. 802.55 Mechanical Parts&Supplies 46997 OCEA 478.36 Dues Deduction 46998 Pacific Bell 35.57 Telephone Services 46999 Court Order 40.00 Wage Garnishment 47000 Court Order 296.00 Wage Garnishment 47001 Peace Officers Council of CA 1,071.00 Dues Deduction 47002 Prodata 240.00 Software Maint. 470D3 Shamrock Supply Co.,Inc. 508.92 Paint Supplies 47004 Shureluck Sales&Engineering 432.34 Mechanical Pans&Supplies 47005 Court Order 721.50 Wage Garnishment 47006 Sparklelis 2,081.23 Drinking Water/Coder Rentals 47007 Tri-State Seminar On-the-River 81.00 Safety&Health Training Registration&Air Quality Meeting Registration 47008 United Way 205.00 Employee Contributions 47009 Verizon California 30.28 Telephone Services 47010 James D.Herberg 109.67 MeetingfTraming Expense Reimbursement 47011 Andrei loan 694.56 Mce6ngfTraming Expense Reimbursement 47012 Penny M.Kyle 853.12 Meeting/Training Expense Reimbursement Page 1 of 8 EXHIBIT A Claims Paid From 09/01/02 to 09/15/02 Warrant No. Vandor Amount Description 47013 Hal Nguyen 420.63 Meetingri mining Expense Reimbursement 47014 Donald W.Ragan 577.40 Meetingrrmining Expense Reimbursement 47015 Henry R.Salgado 664.89 Meelingrrmining Expense Reimbursement 47016 Armstrong,John or Barbara 1,203.03 User Fee Refund Regarding Septic Tanks 47017 Bagnall,Janet 783.55 User Fee Refund Regarding Septic Tanks 47018 Britain,Jerry L. 783.55 User Fee Refund Regarding Septic Tanks 47019 Brawn,Russell W. 783.55 User Fee Refund Regarding Septic Tanks 47020 Byrd,Bobby 1,114.02 User Fee Refund Regarding Septic Tanks 47021 Dulm,Albert R. 783.55 User Fee Refund Regarding Septic Tanks 47022 K.Faulk 1,114.02 User Fee Refund Regarding Septic Tanks 47023 Green,Garrett or Sabrina 1,114.02 User Fee Refund Regarding Septic Tanks 47024 Gress,Gary 1,114.02 User Fee Refund Regarding Septic Tanks 47025 Hamilton,James R. 783.55 User Fee Refund Regarding Septic Tanks 47026 Himmatsu,Elena 1,114.02 User Fee Refund Regarding Septic Tanks 47027 Hughes,William 162.37 User Fee Refund Regarding Septic Tanks 47028 Johnson,Marc 783.55 User Fee Refund Regarding Septic Tanks 47029 Kalb,David George 1,114.02 User Fee Refund Regarding Septic Tanks 47030 1165 W.Valley Vim Drive 1,203.03 User Fee Refund Regarding Septic Tanks 47031 Magdalen.Thomas 166.34 User Fee Refund Regarding Septic Tanks 47032 Martin,John 1,203.03 User Fee Refund Regarding Septic Tanks 47033 Meloyer,Robed or Karin 161.57 User Fee Refund Regarding Septic Tanks 47034 Milano,Lawrence 182.37 User Fee Refund Regarding Septic Tanks 47035 Page,Gordon 1,114.02 User Fee Refund Regarding Septic Tanks 47036 Pargee,David 1,114.02 User Fee Refund Regarding Septic Tanks 47037 Powell,Loname 1,2D3.03 User Fee Refund Regarding Septic Tanks 47038 Radek,Scott or Anna 1,114.02 User Fee Refund Regarding Septic Tanks 47039 Ritter.Maurice 161.57 User Fee Refund Regarding Septic Tanks 47040 Roper,Harold WS.49 User Fee Refund Regarding Septic Tanks 47041 San Roman,Ceperina 1,114.02 User Fee Refund Regarding Septic Tanks 47042 Sorensen,Harold F. 783.55 User Fee Refund Regarding Septic Tanks 47043 Tantardim,Janice L. 1.250.64 User Fee Refund Regarding Septic Tanks 47044 Walker,Tommy 1,114.02 User Fee Refund Regarding Septic Tanks 47D45 Walker,William 161.57 User Fee Refund Regarding Septic Tanks 47046 Wells,Martha 2,228.04 User Fee Refund Regarding Septic Tanks 47047 Withers,Newton 1.114.02 User Fee Refund Regarding Septic Tanks 47048 Zimmerman,Mark 1.114.02 User Fee Refund Regarding Septic Tanks 47049 County of Orange 43.00 Annexation Fee 47050 Local Agency Formation Commission 1,150.00 Annexaton Fee 47051 Black 8 Veatch Corporation 487,956.04 Engineering Services J-87,P2.85&P7-76 47052 Brown 8 Caldwell 58.117.53 Engineering Services 1-98 47053 BP Energy Company 131,864.63 Natural Gas 47054 Carollo Engineers 377.525.60 Professional Services P2-88,J-39&MIao88ration Demo.Scale Project 47055 County of Orange-Auditor Controller 60.9W.18 Properly Attribute Processing 8 Communirallon Charges 47056 CH2M Hill 67.121.25 Professional Services J-40-6 47057 Ciba Specialty Chemicals Corporation 28.099.47 Chemicals 47058 Dell Direct Sales,L.P. 70.032.26 (10)Computers,(8)Monitors,(1)Server 8 Misc. Hardware Page 2 of 8 EXHIBIT A Claims Paid From 09/01/02 to 09/15/02 Warrant No. Vendor Amount Descrlptlon 47059 Delta Dental 48,724.78 Daniel Insurance Plan 47060 J R Filano Construction 63.654.35 Construction-Install/Replace Caustic Tank&Piping at Pit. 1 Headworks 47061 Kaiser Foundation Health Plan 40,126.41 Medical Insurance Premium 47062 Kemiron Pacific,Inc. 136.563.31 Ferric Chloride MO 9-27-95 47063 Montgomery Watson 57.240.00 Professional Service-Evaluation of Anaerobic Baffled Reactor 47064 Orange County Sanitation District 40.063.55 Workers Comp.Reimb. 47065 Orange County Water District 397.461.31 GWRS Joint Project-J-36 47066 Pioneer Amedcas,Inc. 119,828.00 Caustic Soda&Sodium Hypochlodte 47067 Projects Partners 37,120.03 Temporary Employment Services 47068 Sancon Engineering, Inc. 41,400.00 Construction-Manhole Repairs 47069 Science Applications InIl.,Corp. 83,055.97 Professional Services J-85 47070 U.S.Peroxide 62,40020 Hydrogen Peroxide 47071 The Yakima Company 27,577.97 Residuals Removal MO 3-22-00 47072 Mike Prilch&Sons 282,275.90 Construction•Abandonment of Airbase Trunk Sewer 47073 ATint of Glass 121.95 Window Timing 47074 Acroprint Time Recorder Company 92.78 Repair of Time Recorder 47075 A rgas Safely 2.739.09 Safety Supplies 47076 Alta-Robbins, Inc. 722.23 Instrument Supplies 47077 American Airlines 3.979.50 Travel Services 47078 Steve Anderson 653.00 Meeling?raining Expense Reimbursement 47079 Arch Wireless 2,442.99 Pagers,Service&Airtime 47080 Arizona Instrument 13,403.31 (1)Meter 47081 Ashbrook Corporation 1,489.00 Mechanical Parts&Supplies 47082 Ashtead Technology Rentals 341.30 Equipment Lease 47083 Association for Facilities Engineering 165.00 Membership 47084 Atlantis Pool Care 250.00 Service Agreement-Admin. Bldg.Atrium 47085 ACS Hydraulics, Inc. 868.56 Mechanical Repairs 47086 ARB/PERP-Air Resources Board 6W.00 Permit Fee 47087 American Telephone&Telegraph Corp. 131.70 Telephone Service 47088 AWSI 133.00 Department of Transportation Training Program 47089 Baker Tanks 9,247.89 (7)6.500 Gal.Poly Tank Rentals 47090 Basic Chemical Solutions 23,060.06 Chemicals 47091 Battery Specialties 921.87 Batteries 47092 Bell land Surveying 9,577.50 Professional Surveying Services-Varicus Capital Projects 47093 Burke Engineering Co. 1,906.10 Electrical Supplies 47094 Bush&Associates,Inc. 8.456.00 Surveying Services MO 6-25-97 47095 C.S.U.F.Foundation 10,031.25 Membership-Center for Demographic Research 47096 Califcmla Automatic Gate 678.15 Service Agreement 47097 California Barricade Rentals 1,875.00 Barricade Rentals 47D98 California Industrial Supplies 467.79 Electrical Parts&Supplies 47099 Caltrol,Inc. 4,804.58 Electrical Pads&Supplies 47100 Cashes,Inc.,cJo Portion Ind.,Inc. 395.27 Mechanical Pans&Supplies 47101 Ce112Cell 9,664.89 Communication Equipment 47102 Charles P.Crowley Co. 1,673.55 Check Valve 47103 Cole-Parmer Instrument Co. 496.33 Lab Parts&Supplies 47104 Communications Performance Group, Inc. 13,000.00 Professional Services-Safety&Emerg. Response Procedures Page 3 of 8 EXHIBIT A Claims Paid From 09/01/02 to 09/15/02 Warrant No. Vendor Amount Description 47105 Communications Supply Corp. 721.36 Computer Hardware 47106 Compressor Components of California 2,496.00 Coil Reconditioning,Testing&Rebuild Services 47107 Computer Sciences Corp. 6,783.99 Consulting&Lab Services-Assay Pilot Project 47108 Consolidated Elect.Distributors, Inc. 431.63 Electrical Supplies 47109 Consumers Pipe&Supply Co. 8.35 Freight 47110 Conveyor Components Co. 609.65 Electrical Parts&Supplies 47111 Cooper Energy Services 137.28 Engine Supplies 47112 Cooper Energy Systems 2,365.40 Cylinder Head Reconditioning 47113 Corporate Express Imaging 78.37 Computer Supplies 47114 Corporate Express 2,835.65 Office Supplies 47115 Counterpart Enterprises. Inc. 4,979.70 Mechanical Parts&Supplies 47116 County of Orange(PFRD Geomalics) 66.00 Encroachment Permit 47117 County Wholesale Electric Co. 850.53 Electrical Parts&Supplies 47118 Crane America Services, Inc. 7.687.56 Crane Services 47119 Culligan of Orange County 35.00 Maint.Agreement-Can Gen Water Softener System 47120 CCP Industries 10,103.96 Janitorial Supplies 47121 CEM Corporation 809.96 Lab Pans&Supplies 47122 CEPA Company 1,405.00 Lab Equipment Maim.Service 47123 CR&R,Inc. 1,890.00 Container Rentals 47124 CRG Marine Laboratories,Inc. 1,500.00 Lab Analysis 47125 CUEA 1,000.00 Membership 47128 Daniel Company,L.L.C. 5.385,35 Bait Press Inspection&Pans 47127 David's Tree Service 8.210.00 Tree Maint.Service 47128 Davis Instruments 396.06 Instrument Pans&Supplies 47129 Del Mar Analytical 2,226.00 Biosolids Analysis 47130 Dresser Measurement&Controls-Masoneila 3.014.82 Instrument Paris&Supplies 47131 Dunn-Edwards Corporation 271.67 Paint Supplies 47132 Edwin M.Perkins 8,810.30 Professional Service -Water Quality Compliance 47133 Enchanter, Inc. 2,700.00 Ocean Monitoring MO 5-24-95 47134 Environmental Resource Association/ERA 1,377.65 Lab Paris&Supplies 47135 ENRG 13.04 Maint.Services-Compressed Natural Gas Station Pit. 1 47136 FedEx Corporation 235.55 Air Freight 47137 Filter Supply Company 208,58 Filters 47138 First American Real Estate Solutions 326.35 Orange County Property Information 47139 Fisher Scientific Company,L.L.C. 8,701.66 Lab Paris&Supplies 47140 Foodanift Coffee&Refreshment Services 451.72 Meeting Supplies 47141 Fords Benefits Insurance Company 19,986.82 Long Term Disability Ins.Premium 47142 Fountain Valley Chevron Auto Wash 837.29 Truk Wash Tickets 47143 Fountain Valley Paints, Inc. 213.19 Paint Supplies 47144 Franklin Covey 312.36 Office Supplies 47145 Fys Eleclroni s 86.09 Computer Supplies 47M Full Spectrum Analytim 581.55 Lab Instrument Repairs 47147 Gabler Group 24,340.00 Software Consulting 47148 General Petroleum 12,401.47 Unleaded Gasoline 47149 George T. Hall 1,400.70 Instrument Parts&Supplies 47150 Goldenwesl Window Service 2,462.00 Window Cleaning Service-Spec.#990015 Page 4 of 8 EXHIBIT*A Claims Paid From 09/01/02 to 09/15/02 Warrant No. Vendor Amount Description 47151 G000way Technologies Corp. 279.48 Mechanical Parts&Supplies 47152 W W Grainger.Inc. 9,198.16 Instrument Parts It Supplies 47153 Graybar 1,852.94 Mechanical Parts&Supplies 47154 Great Western Sanitary Supplies 196.02 Janitorial Supplies 47155 Hach c/o Ponton Industries 153.91 Lab Parts&Supplies 47156 Herod Primrose Ice 111.00 Ice For Samples 47157 Hatch&Kirk,Inc. 298.74 Engine Generator Control Supplies 47158 Heat Technology Products 2.545.00 Mechanical Pans,Supplies&Repairs 47159 Herb's Blackforest Bakery&Deli 79.00 Meeting Expenses 47160 Herman Miller Workplace Resource 55.82 Office Furniture 47161 High Impact Training 4.200.00 Operator Safety Training 47162 HIM, Inc. 965.66 Tools 47163 Hoerbiger Service, Inc. 1.121.71 Mechanical Parts&Supplies 47164 The Holman Group 715.68 Employee Assistance Program Premium 47165 Home Depot 298.28 Small Hardware 47166 Hub Auto Supply 65.22 Automotive Parts&Supplies 47167 Imaging Express 323.44 Printer Maintenance 47168 Industrial Distribution Group 3.483.45 Tools&Mechanical Supplies 47169 Oak Fabcdlndustrial Steam 195.66 Mechanical Pans&Supplies 47170 Industrial Threaded Products, Inc. 2,871.49 Mechanical Pans&Supplies 47171 Roto Rooter 3,100.00 CCTV Videoing of Tnmkline Sewers 47172 Inorganic Ventures,Inc. 253.71 Lab Parts&Supplies 47173 Integra Biosciences,Inc. 110.86 Lab Parts&Supplies 47174 Intralek Computer,Inc. 3,300.00 Network&Server Maintenance 47175 Invensys Systems, Inc. 1,442.91 Instrument Supplies 47176 Ionics Instrument Business Group 65.75 lab Parts&Supplies 47177 IDMS: Imaging Document Mgml.Solutions 1,698.06 Professional Services J-25-1 47178 IECOC 30.00 Communications Meeting Registration 47179 J&L Industrial Supply 495.32 Maintenance Material 47180 J E Meinharo Associates 837.68 Lab Pans&Supplies 47181 Jays Catering 2,DB3.79 Meeting Expenses 47182 Johnstone Supply - 400.24 Electrical Supplies 47183 JWC Environmental 7.531.73 Repairs&Maintenance Service-Muffin Monster 47184 K.P.Lindstrom,Inc. 9,810.85 Environmental Consulting Services MO 12.9-90 47185 Ken Thompson, Inc. 1,500.00 Construction-Warner Ave.Potholing 47186 Kings County Farm Bureau 175.00 Membership 47187 KL&P Marketing 949.07 Safety Incentive Items 47188 Lee&Ro,Inc. 6,908.31 Professional Services J-71-7 47189 Lexis-Nems BZ23 Books&Publications 47190 Ltnjer Company c/o Gerald Jones 4,572.14 Professional Service-DART MO 9-22-99 47191 Lucci's 424.67 Meeting Expense 47192 Management Technologies 1,875.00 Renewal of NPDES Ocean Discharge Permit 47193 Mc Junkin Corp 646.50 Mechanical Parts&Supplies 47194 McMaster-Cart Supply Co. 624.53 Mechanical&Lab Pans&Supplies 47195 Measurement Control Systems,Inc. 5,352.46 Mechanical Pans&Supplies 47196 Mec Analytical System 8,390.37 Professional Services J-85 Page 5 of 8 E%HIBR A Claims Paid From 09/01/02 to 09/15/02 Warrant No. Vendor Amount Description 47197 Media Clips,Inc. 350.00 Notices&Ads 47198 Medlin Controls Co. 1,907.51 Instrument Supplies 47199 Midway Mfg&Machining Co. 7,215.93 Mechanical Parts&Repairs 47200 Mission Uniform Service 4,018.30 Uniform Rentals 47201 Mitchell Instrument Co. 1,598.00 Instruments 47202 MDS Consulting 12,313.14 Prof.Services-Surveying Various Capital Projects 47203 National Plant Services,Inc. 660.00 Vacuum Truck Services 47204 Neal Supply Co. 199.83 Plumbing Supplies 47205 Network Catalyst,Inc. 15,553.25 Computer Software/Hardware 47206 NelVersant of Southern California 4.016.43 Maint.Services-Access Control&CCTV System 47207 Newark Electronics 34.59 Instrument Supplies 472DB Nicholas Chevrolet 23,861.93 (1)Chevrolet Silverado Utility Truck 47209 Nickey Petroleum Co.,Inc. 200.33 Lubricant 47210 North American Crane Bureau, Inc. 4,a20.00 Overhead Crane Operator Training 47211 Nu-Way Laser Engraving 1.992.55 Steel Tags 47212 Office Depot Business Services Div. 820.85 Office Supplies 47213 Omega Industrial Supply, Inc. 565.47 Janitorial Supplies 47214 Orange County Hose Company 33.31 Hose Supplies 47215 Orange County Vector Control District 6.679.55 Pest Control 47216 Oxygen Service Company 1,796.35 Lab Specialty Gases 47217 OCB Reprographics 1.633.73 Printing Service-MO 1126100 47218 P.L.Hawn Company,Inc. 779.69 AIC Air Filters 47219 Pace Analytic Services 975.00 Lab Analyses of Wastewater&Bicsollds 47220 Pacific Bell 15.80 Telephone Services 47221 Pacific Ford 19.682.45 (1)2D02 Ford F-150 Pick-Up Trucks 47222 Pacific High Reach,Inc. 3.058.70 Aerial Lie Rental 47223 Pacific Mechanical Supply 9.279.25 Plumbing Supplies 47224 Pacific Parts&Controls 3.953.05 Electrical Supplies 47225 Parker Hannifin Corporation 113.52 Mechanical Parts&Supplies 47226 Parker Supply Company 530.19 Mechanical Parts&Supplies 47227 Parkhouse Tire Co. 1.350.83 Tires 47228 Partners Consulting Services 7,260.00 Help Desk Consulting Services 47229 Parts Unlimited 135.57 Automotive Parts&Supplies 47230 The Perkin Elmer Corp. 692.44 Instrument Repairs 47231 Portion Industries.Inc. 1,250.00 Density Meter Training 47232 Pre-Pald Legal Services,Inc. 538.20 Employee Legal Service Insurance Premium 47233 Precise Sensor,Inc. 1.080.94 Electrical Parts&Supplies 47234 Professional Publications,Inc. 110.85 Publication 47235 Public Utilities Commission 12.28 Publication 47236 Pumping Solutions,Inc. 1,924.93 Pumps 47237 PUWreister 327.63 Electrical Supplies 47238 Pyramid Fence Company,Inc. 1,346.00 Fencing Installation 47239 R.L.Abbott&Associates 3,000.00 Kern County Biosolids Consulting Services 47240 Rainbow Disposal Co. 2,126.12 Trash Removal 47241 Rainin Instrument Co.,Inc. 1,095.20 Lab Parts&Supplies 47242 Reliastar Bankers Security Life Ins. 9,300.08 Employee Life Ins..Short-Tema Disability&Carper Ins.Payroll Deductions Page 6 of 8 EXHIBIT A Claims Paid From 09/O1102 to 09/15/02 Warrant No. Vendor Amount Description 47243 Rosen Electrical 17.651.00 Electrical Repairs&Installation at Power Bldg.B 472" RMS Engineering&Design,Inc. 4,921.50 Engineering Services-Basin M Structural Repairs 47245 RPM Electric Motors 2,403.57 Motor Repairs 47246 Saint-Gobain Performance Plastics Corp 833.36 Lab Parts&Supplies 47247 Schneider Automation, Inc. 1,998.77 Software Maint.Agreement 47248 Schwing America,Inc. 377.75 Pump Supplies 47249 Scott Specialty Gases,Inc. 19.72 Demurrage Charges 47250 Shureluck Sales&Engineering 564.39 Mechanical Pans&Supplies 47251 Sigma Chemical Co. 7.303.11 Lab Pans&Supplies 47252 So.Cal.Gas Company 22,335.91 Natural Gas 47253 SOOView Computer Products 668.57 Office Supplies 47254 SoftChoice 23,843.66 Software 47255 Southern California Edison 12,602.71 Power 47256 Southern California Water 71.77 Water Use 47257 Stanley Steamer International, Inc. 352.00 Carpel Cleaning Services 47258 Steven Enterprises.Inc. 235.32 Office Supplies 47259 Straughan Technical Distribution,L.L.C. 625.27 Pump Supplies 47260 Sunset Industrial Pans 103.32 Mechanical Supplies 47261 SCAP 6,000.00 OCSD Share of Kent County Litigation Fund 47262 SCP Science 429.00 Lab Parts&Supplies 47263 SKC-West,Inc. 892.39 Safety Supplies 47264 Technical Training Group,Inc. 1.950.00 Engineering Training Registration 47265 Tenminia International Co.a2474 600.00 Past Control 47266 Tetra Tech,Inc. 17,035.31 Prof.Services-Ocean Monitoring,Plume Modeling&7.37 47267 Thompson Industrial Supply,Inc. 3,890.15 Mechanical Supplies 4726E Time Warner Communication 40.47 Cable Services 47269 Tonys Lock&Safe Service&Sales 130.44 Locks&Keys 47270 Toro Alm.Inc. 1.055.95 Mechanical Pans&Supplies 47271 Tri-State Seminar On-the-River 51.00 O&M Training Registration 47272 Tropical Plaza Nursery.Ina 9,840.33 Contract Groundskeepirg MO 5-11.94 47273 Truck&Auto Supply,Inc. 578.87 Automotive Supplies 47274 Tmesdail Laboratories,Inc. 50.00 Lab Services 47275 Tmsco Manufacturing Company 96.40 Painting Supplies 47276 Turblez,Inc. 14.079.30 Repairs&Maintenance Service-Turblez Blowers 47277 Tustin Dodge 256.88 Truck Parts&Supplies 47278 U.S.Metro Group,Inc. 13,600.02 Janitorial&Floor Maintenance at Plants 1 &2 47279 United Parcel Service 94.26 Parcel Services 47280 Valve Automation&Controls 725.91 Valves 47281 Vapek,Inc. 4.348.00 Software/Hardware for Vapea Trunkline Project 47282 Varian Associates,Inc. 235.25 Lab Pans&Supplies 47283 Verizon California 4,153.89 Telephone Services 47284 Veme's Plumbing 5.006.90 Service Contract-Testing&Carl.Backgow Devices at Pits. 1 &2&Pump Sta. 47285 Vsion Service Plan 7,483.32 Vision Service Premium 47286 V WR Scientific Products Corporation 6,201.57 Lab Parts&Supplies 47287 The Wackenhut Corporation 4.333.31 Security Guards 47288 Waco Fiber 587.47 Fibers Page 7 of 8 EXHIBIT A Claims Paid From 09/01/02 to 09H5102 Warrant No. Vendor Amount Description 47289 Waste Markets Corp. 24,298.81 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mall. Removal 47290 Water Systems Cleaning Co. 560.00 Repair Services-Scrubber J at Pit.2 47291 Waxie Sanitary Supply 155.64 Janitorial Supplies 47292 Weber Scientific 177.78 Lab Supplies 47293 Wesco Distribution,Inc. 3,199.41 Instrument Supplies 47294 Arthur Wolfson Ph.D 6,767.80 Professional Services-NPDES Permit Renewal 47295 WEF 224.00 Membership-Water Environment Federation 47296 WOI 350.00 O&M Training Registration 47297 Xerox Corporation 15.45323 Fax&Copier Leases 47298 Zee Medical 1,623.54 Safety Supplies 47289 R.Fox Construction,Inc. 22,437.00 Construction-Air Compressor Upgrades at Pit. 1 47300 Patrick B.Carnahan 469.83 Mesting/haining Expense Reimbursement 47301 James W.Matte 282.80 Meeting/framing Expense Reimbursement 47302 Douglas M.Stewart 410.29 Meeting/Training Expense Reimbursement 47303 Robert J.Taylor 444.62 Meeting/freining Expense Reimbursement 47304 County of Orange-Auditor Controller 840.00 Sewer Service Fee Administration 47305 Gibson,Larry 630.33 Employee Computer Loan Program 47306 McReynolds,Roland&Dell Comp.Corp 2.958.16 Employee Computer Loan Program 47307 Stuht,Mike&CompUSA 3,000.00 Employee Computer Loan Program Total Accounts Payable-Warrants $ 4,219,414.66 Payroll Disbursements 27566-27663 Employee Paychecks $ 148,106.65 27664-27664 Interim Paycheck 285.96 76464-76900 Direct Deposit Statements 808,016.91 Total Payroll Disbursements S 956,408.52 Wire Transfer Payments Chase Bank of Taxes $ 49,786.25 August Interest Payment on Series 1993 Certificates of Participation Chase Bank of Texas 114,345.89 Societe Generale August Swap Payment on 1993 Certificates of Participation Total Wire Transfer Payments S 164.132.14 Total Claims Paid 09101/02-09115102 $ 5,339,955.32 Page 8 of 8 EXHIBIT A Claims Pail From 09/16/02 to 09/30102 Warrant No. Vendor Amount Description Accounts Payable-Warrants 47308 Moreland&Associates $ 28,667.90 Auditing Services MO 3-8-95 47309 Orange County Sanitation District 543.992.74 Payroll EFT Reimbursement 47310 Southern California Edison 70,901.98 Power 47311 Airgas Safety 1,531.63 Safely Supplies 47312 American Telephone&Telegraph Corp. 15.24 Telephone Service 47313 Court Order 626.20 Wage Garnishment 47314 California&the World Ocean'02 265.00 Compliance Meeting Registration 47315 Copelm Capital,Inc. 2,564.40 Color Printer/Color Copier System Lease 47316 Court Order 150.00 Wage Garnishment 47317 Consolidated Elect Distributors,Inc 95.18 Electrical Supplies 47318 County of Orange-Auditor Controller 37.30 Encroachment Permit 47319 County of Santa Clare 250.00 Source Control Training Registration 47320 Cytec Industries 15.042.30 Anionic Polymer Spec.No.9798-18 47321 Dawson Company 94.37 Mechanical Parts&Supplies 47322 Dunn-Edwards Corpomtlon 148.74 Paint Supplies 47323 Norman Eckenrode 380.14 Meeting/training Expense Reimbursement 47324 Employee Benefits Specialists,Inc. 8,321.31 Reimbursed Prepaid Employee Medical&Dependent Care 47325 Court Order 525.DO Wage Garnishment 47326 Franklin Covey 152.57 Office Supplies 47327 Intl.Union of Oper.Eng.AFL-CIO Local 501 3.260.67 Dues Deduction 47328 Irvine Ranch Water District 33.00 Water Use 47329 J.D.Edwards 1,5DO.OD Information Technology Training Registration 47330 Jamison Engineering Contractors,Inc. 7,776.84 Construction-Leak Repairs at Plant 1 Old Headworks 47331 Kent Automotive 848.05 Automotive Parts&Supplies 47332 League Of CA Cities 223.87 OCSD Share of Orange County Leadership Symposium 47333 Lifecom-Safety,Inc. 317.86 Instrument Parts&Supplies 47334 McMaster-Cart Supply Co. 576.57 Mechanical Supplies&Tank 47335 National Bond&Trust 1,156.55 U.S.Saving Bonds 47336 Oracle Corp 5,317.91 Software Maintenance 47337 Orange County Sheriff 45.00 Wage Garnishment 47338 OCEA 478.36 Dues Deduction 47339 Pacific Bell 51.64 Telephone Services 47340 Court Order 40.00 Wage Garnishment 47341 Partners Consulting Services 20,400.00 Help Desk Consulting Services 47342 Court Order 296.00 Wage Garnishment 47343 Peace Officers Council of CA 1,080.DO Dues Deduction 47344 Hoffman Southwest Corporation 4,166.48 Sewer fine Cleaning-Various Locations 47345 Seaside Ranchos 3,462.11 Reconciliation User Fee Refund Program 47346 Shureluck Sales&Engineering 25.47 Mechanical Parts&Supplies 47347 Court Order 721.50 Wage Garnishment 47348 Snap On industrial 784.26 Tools 47349 So.Cal.Gas Company 624.37 Natural Gas 47350 Southern California Edison 32.99 Power 47351 SAWPA 5,000.00 OCSD Share of Wasteload Allocation,Nitrogen TDS Study,Phase 2 47352 Thompson Industrial Supply,Inc. 3,424.96 Mechanical Supplies Page 1 of 7 EXHIBIT B Claims Paid From 09/16/02 to 09/30/02 Warrant No. Vendor Amount Description 47353 Tri-State Seminar On-the-River 50.00 O&M Meeting Registration 47354 Union Oil Company of California 9,309.63 Reconciliation User Fee Refund Program 47355 United Way 205.00 Employee Contributions 47356 Verizon California 27.73 Telephone Services 47357 Vortex Industries,Inc. 471.00 Door Repair 47358 Jeffrey L.Armstrong 483.25 Meeting?mining Expense Reimbursement 47359 Michael D.Moore 138.98 Meeting/Training Expense Reimbursement 47360 Robert Dolan 787.96 Meeting/7ralning Expense Reimbursement 47361 Wendy T.Sevemndt 681.02 Meeting/Training Expense Reimbursement 47362 Phillip J.Sullivan 693.05 Meeting/Training Expense Reimbursement 47363 City of Tustin 5,000.00 Plan Check Fee-Gisler-Rehlll Trunk Improvements(7-36) 47364 CMAA 170.00 Engineering Meeting Registration 47365 Jays Catering 3.177.61 Meeting Expenses 47366 American Express 36,568.67 Purchasing Card Program,Misc.Supplies 8 Services 47357 ADS Environmental Services, Inc. 125.396.99 Professional Services J-73.2 47368 Basic Chemical Solutions 30.027.01 Chemicals 47369 Black&Veatch Corporation 175,248.05 Engineering Services J-77 47370 Blue Cross of California 264.921.16 Medical Insurance Premium 47371 Camp Dresser&McKee.Inc. 32,362,00 Engineering Services J40-8 47372 Cardlo Engineers 62,088.72 Professional Services J39&P2-60 47373 CGvL Engineers 30,265.24 Professional Services P2-82&P7-94 47374 E.I.Du Pont De Nemours and Company 98,821.D0 Painting Maint.Services MO 4.22-98 47375 Environmental Engineering&Contracting 59,000.00 Professional Services-FOG Control Study(Fats.Oils,Grease) 47376 Fluor Enterprises,Inc. 34,200.00 Professional Services-Space Allocation 47377 Fortis Benefits Insurance Company 40,460.76 Log&Short-Term Disability Ins.Premiums 47378 City of Huntington Beach 29.788.64 Water Use 47379 Kemiron Pacific,Inc. 138,502.74 Ferric Chloride MO 9-27-95 47380 Lee&Ro,Inc. 40,930.41 Professional Services P2-47-3 47381 Municipal Water Dist.of Orange County 33,635.81 Water Use EfBdency Program MO 9-22-99 47382 Orange County Water District 459,091.50 Joint GWRS Project J-36 47383 Painewebber Incorporated 40,104.86 COP Remarketing Agreement 47384 Parsons Engineering Science,Inc. 104,657.33 Engineering Sew low J-42&J-35-2 47385 Pioneer Americas,Inc. 222,792.15 Caustic Soda 47356 Projects Partners 48,309.47 Temporary Employment Services 47387 City of Seal Beach 224,217.36 Cooperative Project-Sewer Mains Reconstruction(CP-0020) 47388 South Coast Alr Quality Management Dist. 37,645.55 Annual Emission,Operation&Misc. Fees 47389 Tule Ranch/Magan Farms 235,881.09 Residuals Removal MO 3.29-95 47390 U.S.Peroxide 127,988.29 Prof.Svcs.-Chemicals&Coll.Sys.Odor&Con.Control Add.Demo.Study 47391 UCI Regents 25,342.94 Professional Services J-85 47392 The Vantage Group,L.L.C. 29.680.00 Temporary Employment Service 47393 Woodruff,Spradlin&Smart 107,448.42 Legal Services MO 7.26-95 47394 The Yakima Company 26,832.49 Residuals Removal MO 3-22-00 47395 California Bank&Trust 89.376.00 Construction J331A,Retention 47396 Connolly-Pacific Company 710,572.00 Construction J-39 47397 Elser Constructors,Inc. 123.874.23 Construction 3-25 47398 J W Contracting Corporation 347.589.00 Construction P2-60 Page 2 of 7 EXHIBIT B Claims Paid From 09/16/02 to 09/30/02 Warrant No. Vendor Amount Description 47399 Margate Construction,Inc. 1,176,900.00 Conslmclion P2-39,J-71-7&P1-37 47400 R.Fox Construction,Inc. 31.263.00 Construction-Air Compressor Upgrades at Pit.1,Retention 47401 Southern Contracting Company B04,390.00 Construction J-33-1A 47402 Union Bank of California 41,732.00 Construction P2-60,Retention 47403 American Telephone Corp. 86.28 Long Distance Telephone Service 47404 Accent Flag&Sign 2,694.59 Flag Pole,Parts,Repairs&Installation 47405 Advanced Engine Technology Corporation 2,722.50 Professional Services-Can Gen Engines 47406 Advanced Sealing&Supply Co.,Inc. 2.368.58 Ins.Parts&Supplies 47407 Air Cold Supply,A Ferguson Enterprise 481.51 Air Conditioner Supplies 47408 Airgas Safety 553.54 Safety Supplies&Equipment 47409 American Computer&Communications,Inc. 159.00 Teleprinter Maintenance Agreement 47410 Amdcan Air Filter,Inc. 1.466.64 Filter 47411 Appleone Employment Service 8,507.69 Temporary Employment Services 47412 Aquarium of the Pacillc 436.50 Reimbursable Employee Activity Expense 47413 Arch Wireless 2.096.61 Pagers,Service&Airtime 47414 Aspen Publishers, Inc. 238.16 Subscription 47415 American Assoc for the Advanc.Of Science 99.00 Membership 47416 AT&T Wireless Services 9,309.35 Wireless Phone Services 47417 Ballantyne.Inc. 13,920.00 Temporary Employment Services 47418 Bar Tech Telecom,Inc. 600.32 Telephone Equipment 47419 Battery Specialties 644.43 Batteries 47420 BioMerieux Vilek,Inc. 1,129.76 Lab Supplies 47421 Boyle Engineering Corporation 4,198.52 Engineering Services 7-23-1 47422 Bush&Associates,Inc. 9,074.00 Surveying Services MO 6-25-97 47423 BC Wire Rope&Rigging 346.04 Posts 47424 Calif Centrifugal Pump 24,021.15 Rebuild Turbine Pump 47425 California Barricade Rentals 2.250.00 Barricades 47426 California Relocation Services, Inc. 168.75 Of0ce Moving Services 47427 Caltrol,Inc. 823.43 Electrical Parts&Supplies 47428 Carleton Engineers&Consultants,Inc. 951.50 Engineering Services-SCAQMD Air Quality Compliance 47429 Cashco, Inc.,c/o Ponton Intl.,Inc. 235.00 Mechanical Pads&Supplies 47430 Cathcart Garcia von Langen Engineers 5,478.09 Engineering Services-Anaerobic Selector Study 47431 Copeloo Capital,Inc. 1,28220 Color Printer/Copier System Lease 47432 City of Fountain Valley 18,994.44 Water Use 47433 Coast Fire Equipment 577.54 Fire Extinguishers 47434 Computer Protection Technology,Inc. 23,809.38 Computer Maint.Agreement 47435 Computer Sciences Corp. 13,855.77 Consulting&Lab Services-Assay Pilot Project 47436 Consolidated Elect.Distributors,Inc. 97.80 Mechanical Pans&Supplies 47437 Consumers Pipe&Supply Co. 684.57 Plumbing Supplies 47438 Cooper Energy Services 1,004.24 Engine Supplies 47439 Corporate Express Imaging 362.04 Computer Supplies 47440 Corporate Express 1,228.53 Office Supplies 47441 Codech Engineering 222-83 Freight 47442 Cost Containment Solutions 1,256.41 Workers Comp.Services 47443 Counterpart Enterprises,Inc. 85.54 Mechanical Parts&Supplies 47444 County of Orange(PFRD Geomalics) 2.002.80 Parcel Maps Page 3 of 7 EXHIBIT B Claims Paid From 09/16/02 to 09/30/02 Warrant No. Vendor Amount Description 47445 County of Orange-Auditor Controller 3.017.53 Maim.Agreement-Repair,Installation of Base,Handheld&Vehicle Radios 47446 County Wholesale Electric Co. 903.43 Electrical Parts&Supplies 47447 Crane America Services,Inc. 2,5W.00 Crane Services 47448 CEM Corporation 529.74 Lab Supplies 47449 CH2MHIII 11.572.64 Engineering Services-J-87 47450 Ciba Specialty Chemicals Corporation 4,066.06 Chemicals 47451 CR&R,Inc. 2520.00 Container Rentals 47452 CWFA 784.84 Publications 47453 David's Tree Service 4,400.00 Tree Maint.Service 47454 Denim,Inc. 1,404.42 Mechanical Parts&Supplies 47455 Detection Instruments Corporation 8.105.00 Ins.Pans&Supplies 47456 E.Sam Jones Distributors,Inc. 376.59 Electrical Supplies 47457 Edward S.Babcock&Sons,Inc. 5.720.00 Lab Analyses-J-85 47458 Electra-Bond,Inc. 996.69 Epoxy Coating 47459 Enchanter,Inc. 4.700.00 Ocean Monitoring MO 5-24-95 47460 Environmental Resource Association 52T90 Lab Parts&Supplies 47461 Filarsky&Watt,L.L.P. 3,847.50 Professional Services-SPMT Negotiations&Other Misc.Services 47462 Fisher Scientific Company,LL.C. 5,WgA8 Lab Parts&Supplies 47463 Fountain Valley Chevron Auto Wash 1.187.67 Truck Wash Tickets 47464 Fountain Valley Pains,Inc. 130.11 Paint Supplies 47465 Frederick Pump&Engines" 5.412.44 Pump Assembly 47466 Frost Engineering Service Co. 978.66 Inst.Parts&Supplies 47467 FST Sand and Gravel,Inc. 379.97 Road Base Materials 47468 FomsTrommRichards Capital Corporation 1,956.94 Stationery&Office Supplies 47469 George Yardley Co. 21248 Instrument Supplies 47470 Giedich-Mitchell, Inc. 1.28223 Pump Pans&Supplies 47471 W W Grainger,Inc. 835.17 Electrical Parts&Supplies 47472 Gruybar 219.26 Electrical Parts&Supplies 47473 Great Western Sanitary Supplies 85.21 Janitorial Supplies 47474 Westmark Sales, Inc. 1,254.19 Instrument Supplies 47475 Ascem Hasler Mailing Systems 58.28 Ink 47476 Hatch&Kirk,Inc. 1,492.31 Engine Generator Control Supplies 47477 Herb's Slackforesl Bakery&Deli 80.68 Meeting Expenses 47478 Hannan Miller Workplace Resource 1,992.05 Furniture&Fixtures 47479 Hill Brothers 19,595.69 Chemicals-Odor&Corrosion Control-Newport Trunkline 4748D Hi18,Inc. 588.57 Mechanical Pans&Supplies 47481 The Holman Group 72420 Employee Assistance Program Premium 47482 Hare Depot 516,17 Small Hardware 47483 Hub Auto Supply 162.23 Automotive Pans&Supplies 47484 Imaging Plus,Inc. 4,112.75 Printing Service 47485 Industrial Distribution Group 171.35 Mechanical Pads&Supplies 47486 Industrial Networking Solutions 3.933.14 Computer Hardware/Sollware 47487 Industrial Threaded Products, Inc. 1,275.20 Fasteners 47488 Interstate Battery Systems 403.63 Batteries 47489 Invensys Systems,Inc. 2,237.98 Instrument Supplies 47490 Imn Mountain 300.00 Storage Fee-Bid Documents P1-37&J-39 Page 4 of 7 E%HII 0 Claims Paid From 09/16102 to 09/30102 Warrant No. Vendor Amount Description 47491 Iron Mountain Off-Site Data Protection 212.71 Offske Back-Up Tape Storage for NT Server 47492 Irvine Ranch Water District 23.35 Water Use 47493 Ism, Inc. 1.231.26 Lab Parts&Supplies 47494 ISA 1,101.00 Information Technology Meeting Registration 47495 J&L Industrial Supply 104.28 Mechanical Parts&Supplies 47496 J.G.Tucker and Son,Inc. 1,789.33 Maintenance Services-Tripod Winch 47497 Jamison Engineering Contractors,Inc. 8,788.02 Easement Cleaning-District 7 47498 Jay's Catering 157.32 Meeting Expenses 47499 Johnstone Supply 428.83 Mechanical&Electrical Parts&Supplies 47500 Kforce Professional Staffing 23,037.10 Temporary Employment Services 47501 Lab Safety Supply,Inc. 52.77 Lab Supplies 47502 Lab Support 3.272.75 Temporary Employment Services 47503 Law/Crandall 2D3.00 Professional Services P2-60 47504 Lexis-Nexis 101.57 Books&Publications 47505 Unjer Company c/o Gerald Jones 4,566.64 Professional Service-DART MO 9-22-99 47506 Liquid Handling Systems 22.56 Pumping Supplies 47507 Lucci's 92.30 Meeting Expense 47508 M.J.Schiff&Associates, Inc. 5.170.08 Professional Services-Corrosion Study 47509 Management Technologies 5,670.00 Renewal of NPDES Ocean Discharge Permit 47510 Manatt,Phelps&Phillips,L.L.P. 10,000.00 Strategic Planning&Advocacy 47511 MarVac Electronics 16.86 Electrical Pans&Supplies 47512 MCJunkin Corporation 82.53 Plumbing Supplies 47513 McGarry Central 93.12 Mechanical Pans&Supplies 47514 McMaster-Cart Supply Co. 139.14 Mechanical Parts&Supplies 47515 Mechanical Seal Repair.Inc. 210.11 Mechanical Seal 47516 Media Clips,Inc. 105.00 Notices&Ads 47517 Media Resurfacing Systems, Inc. 200.00 Vehicle Maintenance 47518 Medlin Controls Co. 1.744.23 Instrument Supplies 47519 Michael's Rooting 200.00 Roofing Services 47520 Mission Uniform Service 4,057.12 Uniform Rentals 47521 Morton Sall 777.19 Sag 47522 MDS Consulting 4,800.00 Prof.Services-Surveying Various Capital Projects 47523 Nasm 216.28 Lab Parts&Supplies 47524 National Plant Services,Inc. 2,000.00 Vacuum Truck Services 47525 Neal Supply Co. 329.29 Plumbing Supplies 47526 Nextel Communications 3,990.90 Cellular Phones&Air Time 47527 Niokey Petroleum Go.,Inc. 1,906.66 Industrial Oil 47528 Ninyo&Moore Corporate Accounting 354.45 Professional Services-Materials Testing MO 6-24-98 47529 NAFA.Inc. 415.00 Membership 47530 Office Depot Business Services Div. 578.56 Office Supplies 47531 Orade Corp 2.976.07 Software Maintenance 47532 Orange County W inwater Works 16.77 Plumbing Supplies 47533 Orange Fluid System Technologies, Inc. 238.00 Mechanical Parts&Supplies 47534 Oxygen Service Company 2.145.60 Lab Specialty Gases 47535 OCB Reprographics 456.98 Printing Service-MO V26/00 47536 Pacific Bell 37.15 Telephone Services Page 5 of 7 EXHIBIT B Claims Paid From 09/16/02 to 09/30/02 Warrant No. Vendor Amount Description 47537 Pacific Bell Internet Services 324.07 Internet Service 47538 Pacific Mechanical Supply 2.210.61 Plumbing Supplies 47539 Pacific Parts&Controls 10.651.67 Electrical Parts&Supplies 47540 Paragon Steel 556.64 Metal 47541 Parker Supply Company - 2.736.00 Mechanical Parts&Supplies 47542 Patriot Video Productions 1.591.72 Video Services 47543 Probed 1,617.00 Installation&Configuration of Microsoft Project Server 47544 Hach do Penton Industries T76.87 Lab Pails&Supplies 47545 Power Electro Supply Co.,Inc. 922.34 Electrical Supplies 47546 Prins ry Source 177.25 Office Furniture 47647 Pumping Solutloni.Inc. 1,400.81 Pump Supplies 47548 R&R Instrumentation,In. 99.58 Instrument Supplies 47549 R.W.Beck 13,832.02 Professional Services Pi-90 47550 Rainbow Disposal Co. 2,300.12 Trash Removal 47551 Reallime Systems Corporation 22,410.00 Software Maintenance Agreement 47552 University of California.Irvine 2,270.00 O&M Training Registration 47553 RightAnswers,L.L.C. 10,700.00 Software Maintenance Agreement&License 47554 RBF Engineers 890.00 Engineering Services 2-24-1 47555 RPM Electric Motors 12,405.97 Motor Repairs 47556 San Diego Gas&Electric 390.00 O&M and Human Resources Training Registration 47557 Sears Industrial Sales 947.27 Mechanical Parts&Supplies 47558 Shamrock Supply Co., Inc. 2,321.74 Safety Supplies 47559 Sigma Chemical Co. 3,540.37 Lab Pads&Supplies 47560 Smardan Supply Company 105.38 Plumbing Supplies 47561 Sparkletls 1,329.36 Drinking Water/Cooler Rentals 47552 State Chemical Mfg.Co. 318.66 Janitorial Supplies 47563 Steven Enterprises,Inc. 312.57 Stationery&Office Supplies 47564 Strafe International,Inc. 5D5.46 Chemicals 47565 Sunset Industrial Parts 179.47 Mechanical Parts&Supplies 47566 Super Power Products 646.50 Janitorial Supplies 47567 SCAP 10,OW.00 Alr Emissions Testing Program -Biosolids Composting Facility 47568 SPX Valves&Control 4,886.17 Mechanical Parts&Supplies 47569 Telelrac,Inc. 245.00 Maintenance&Air Time Service Fees 47570 Tetra Tech, Inc. 13,777.09 Professional Services J-90 47571 Thermo Finnigan,L.L.C. 395.63 Lab Parts&Supplies 47572 Thompson Industrial Supply,Inc. 8,016.95 Pump Supplies 47573 Tonys Lock&Safe Service&Sales 17.78 Locks&Keys 47574 The Training Clinic 699.00 Human Resources Training Registration 47575 Tran Consulting Engineers 7,954.00 Engineering Services 546 47576 Transcal 464.37 Generator 47577 Td-County Sandblasting,Inc. 494.00 Graffiti Removal 47578 Truck&Auto Supply.Inc. 30.18 Automotive Supplies 47579 Teksystems 14.611.00 Temporary Employment Services 47580 US Filter Corporation 1.252.75 Service Agreement-Lab Purification System 47581 Ultra Scientific 7821 Lab Parts&Supplies 47582 Vallen Safety Supply Company 3.556.37 Safety Supplies Page 6 of 7 EXHIBIT B Claims Paid From 09/16/02 to 09/30/02 Warrant No. Vendor Amount Description 47583 Valley Detroit Diesel Allison 3,056.05 Inst.&Electrical Parts&Supplies 47584 Vapex,Inc. 6,250.00 Maintenance&Support Services J-71-8 47585 Verizon California 3,543.40 Telephone Services 47586 Veme's Plumbing - 100.00 Service Contract-Testing&Cart.Back0ow Devices at Pits. 1 &2&Pump Sta. 47587 Vortex Industries,Inc. 3,198.12 Door Repair 47588 V W R Scientific Products Corporation 3,957.33 Lab Pans&Supplies 47589 Walden&Associates 1,051.97 Professional Services-Big Canyon Trunk Sewer 47590 Water 3 Engineering, Inc. 20,623.28 Engineering Service J-67 47591 Weber Scientific 197.71 Lab Supplies 47592 Westport Aparalus DBA Breaker Supply 23.71 Electrical Pans&Supplies 47593 Wilmington Instrument Co., Inc. 611.50 Inst.Parts&Supplies 47594 Xerox Corporation 1,200.26 Fax Leases 47595 3E Company 13,035.00 Software Maintenance-MSDS Program 47596 Patrick B.Carnahan 299.84 Meeting/Training Expense Reimbursement 47597 Linda Losurdo 203.00 Meeting?raining Expense Reimbursement 47598 David A.Ludwin 1,248.73 Meeting/Trelning Expanse Reimbursement 47599 Kathleen T.Millca 164.00 Meeting/Training Expanse Reimbursement 47600 Jagadish C.Oruganti 745.00 Meeting?raining Expense Reimbursement 47601 Balachandna P.Rao 745.00 Meefing/Training Expense Reimbursement 47602 Matthew P.Smith 1,351.53 MestirgTraining Expense Reimbursement 47603 Llsa L.Tomko 385.85 MeetirgRrainirg Expense Reimbursement 47604 Ta leo G.Vilko 40.99 Meetin gri mining Expense Reimbursement 47605 Local Agency Formation Commission 300.00 Annexation Fees 47606 State of California 684.62 Application Fee&Staff Appreciation Day Expenses Total Accounts Payable-Warrants $ 7,600,566.62 Payroll Disbursements 27665-27790 Employee Paychecks $ 169,600.96 Biweekly Payru1109/18/02 27791-27791 Interim Paycheck 2.020.97 Termination Paycheck 76901-77373 Direct Deposit Statements 835,147.31 Biweekly Payroll 09/18/02 Total Payroll Disbursements $ 1,006,769.24 Wire Transfer Payments State Street Bank&Trust Co.of CA.N.A. 6,018.34 September Interest Payment on Series 2000 Certificates of Participation Total Wire Transfer Payments $ 6,018.34 Total Claims Paid 09116/02-9130/02 $ 8.613.354.20 Page 7 of 7 EXHIBIT B BOARD OF DIRECTORS Me bng oate To W.of Dir. v/zo/oz AGENDA REPORT Item Number em INumber 6 Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Lenora Crane, Executive Assistant SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. SUMMARY See attached listing. PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT ® This item has been budgeted. (Line item: I ❑ 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 N/A CEQA FINDINGS N/A ATTACHMENTS 1. Copies of Claims Paid reports from 10/01/02— 1 0/1 5/02 and 10/16/02— 10/31/02 M, Claims Paid From 10/01/02 to 1011W02 Warrant No. Vendor Amount Desertption Accounts Pavable-Warrants 47607 Orange County Sanitation District 9 52a,799.51 Payroll EFT Reimbursement 47608 Southern California Edison 88.416.91 Power 47609 Sunset Beach Sanitary District 61,262.38 Construction-J-73 Cooperative Projects Program 47610 Systime Computer Corp. 40,200.00 Professional Services-JD Edwards One-Wodd XE Implementation 47611 Airgas Safety 693.79 Safety Supplies&Equipment 47612 AT&T Universal Biller 2,795.55 Telephone Service 47013 American Telephone&Telegraph Corp. 285.49 Telephone Service 47614 AW WA 925.00 Lab Meeting Registration 47615 Court Order 626.20 Wage Garnishment 47610 Court Order 160.00 Wage Garnishment 47617 Consolidated Elect. Distributors,Inc. 250.87 Electrical Supplies 47618 Consumers Pipe&Supply Co. 12.41 Plumbing Supplies 47619 Dunn-Edwards Corporation 37.23 Paint Supplies 47820 Employee Benefits Specialists, Inc. 8,321.31 Reimbursed Prepaid Employee Medical&Dependent Care 47821 Court Order 525.00 Wage Garnishment 47622 City of Fullerton 449A3 Water Use 47523 Gerard Daniel Worldwide 122.03 Mechanical Parts&Supplies 47824 City of Huntington Beach 33.56 Water Use 47625 Intl.Union of Oper.Eng.AFL-CIO Local 501 3.260.67 Dues Deduction 47626 McMaster-Can Supply Co. 1.426.49 Mechanical Parts&Supplies 47627 National Bond&Trost 1.166.55 U.S.Savings Bonds 47628 Orange County CoastKeeper 1,000.00 Spunsorshlp-2002 Coastal Preservation Recognition Dinner 47629 Orange County Sheriff 46.00 Wage Garnishment 47530 OCEA 515.36 Dues Deduction 47631 Pacific Bell 1.194.26 Telephone Services 47632 Court Order 40.00 Wage Garnishment 47633 Court Order 296.00 Wage Garnishment 47634 Peace Officers Councll of CA 1,080.00 Dues Deduction 47036 PDSA,Inc. 499.00 Information Technology Training Registration 47636 R&R Instrumentation,Inc. 549.41 Instrument Supplies 47637 Radius Maps 275.00 Radius Map&Ownership Listings 47638 RS Hughes Co.,Inc. 285.26 Paint Supplies 47639 Shamrock Supply Co.,Inc. 114A1 Tools 47640 Court Order 721.50 Wage Garnishment 47641 Summit Steel 244.25 Metal 47642 Sunset Industrial Parts 100.19 Hose Repair 47643 Thompson Industrial Supply,Inc. 1,711.94 Mechanical Supplies 47644 The Unisouros Corporation 70.25 Office Supplies 47645 United Way 205.00 Employee Contributions 47646 Verizon California 1.329.63 Telephone Services 47647 Frank Chavez 411.61 Meeting/Training Expense Reimbursement 47648 Jean E.Tappan 142.68 Mesting/Tralning Expense Reimbursement 47649 Carolyn L.Thompson 126.07 Meeting?reining Expense Reimbursement 47650 Sonja A.Wassgren 867.72 Meeting/Training Expense Reimbursement Page 1 of 10 EXHIBITA Claim Paid From 10/01/02 to 10/15/02 Warrant No. Vendor Amount Description 47651 Boyd,Mark 1,955.94 Employee Computer Loan Program 47652 Colston,Jim 1.382.83 Employee Computer Loan Program 47653 Handy,Roy&Dell Computer Corporation 2250.00 Employee Computer Loan Program 47654 Losunlo,Linda 2,327.40 Employee Computer Loan Program 47655 Stuht,Mike&CompUSA 3.000.00 Employee Computer Loan Program 47656 UC Regents 95.00 Compliance Meeting Registration 47657 Veboah,Ernest 2,078.10 Employee Computer Loan Program 47658 A-Plus Systems 1,220.00 Notices 8 Ads 47659 Abatix Environmental Corp. 220.89 Hardware 47660 ABEL Pumps Corp. 801.43 Pump Supplies 47661 Air Liquids America Corp. 171.08 Specialty Gasses 47662 Airborne Express 7423 Air Freight 47663 Aigas-West 10.23 Lab Pads&Supplies 47664 Aigas Safety 52928 Safety Supplies 47665 American Airlines 4,656.00 Travel Services 47666 American Eagle System,Inc. 3,193.36 Computer Hardware/Software Supplies 47667 Analytical Products Group,Inc. 440.00 Lab Parts 8 Supplies 47668 Aquarium Doctor 146.94 Aquarium Services 47669 Aquatic Bioassay And Consulting Labs,Inc. 1,870.00 Toxicity Testing 47670 Armor Vac Sweeping Service 960.00 Vacuum Truck Services 47671 Ashtead Technology Rentals 23.25 Equipment Lease 47672 Atlantis Pool Care 250.00 Service Agreement-Admin.Bldg.Atrium 47673 Autodesk University/Enterprise Events 1,245.00 Engineering Meeting Registration 47674 APWA 85.00 Information Technology Training Registration 47675 American Telephone 8 Telegraph Corp. 36.17 Telephone Service 47676 AT&T Wireless Services-Airtime 3,614.43 Cellular Telephone Service 47677 Baker Tanks 6,762.89 Tank Rentals 47678 Basic Chemical Solutions 17276.77 Bleach 47679 Berendsen Fluid Power 92.47 Mechanical Supplies 47680 Biocycle 69.00 Subscription 47681 Boot Bam 129.29 Reimbursable Safety Stores 47682 Brinderson Corporation 11,186.00 Professional Services P7-95 47683 Brown 8 Caldwell 18.814.29 Engineering Services J-25-6 47684 California Automatic Gate 1.059.45 Service Agreement 47685 Martin Boyer Co.,Inc.rJo Cambridge Int. 6249.99 Workers Compensation Claims 47686 Camilo Engineers 23,290.49 Professional Services P2-60,J-87 8 SP-90 47667 Cathcart Garcia von Langan Engineers 9,418.78 Professional Services-Anaerobic Selector Study 47688 Ce112Ce11 1,055.72 Communication Equipment 47689 Charles P.Crowley Co. 8278.83 Mechanical Parts 8 Supplies 47690 Communications Supply Corp. 182.32 Electrical Pans&Supplies 47691 The Complete Line,L.L.C. 383.90 Stationery B Office Supplies 47692 Corex International,Inc. 3,140.00 Professional Services P2-60 47693 Consent Decree Library 21.00 Publication 47694 Consolidated Elect.Distributors, Inc. 12276.97 Electrical Supplies 47695 Consumers Pipe 8 Supply Co. 5.50 Mechanical Parts 8 Supplies 1 Page 2 of 10 EXHIBrA Claims Paid From 10/01/02 to 10/15102 Warrant No. Vendor Amount Description 47696 Cooper Energy Services 627A4 Engine Supplies 47697 Coordinated Wire Rope&Rigging 538.33 Wire Rope 47698 Corporate Express Imaging 486.39 Computer Supplies 47699 Corporate Express 3.104.94 Office Supplies 47700 Counterpart Enterprises, Inc. 126.89 Mechanical Parts&Supplies 47701 County Wholesale Electric Co. 892.12 Electrical Parts&Supplies 47702 Cynic Industries 16,373.40 Anionic Polymer Spec.No.9798-18 47703 CEM Corporation 1,869.43 Lab Equipment Maint.Service 47704 CEPA Company 1,450.00 Lab Equipment Malnf.Service 47705 CH2M HID 15.680.30 Professional Service J-40.6 47706 CRG Marine Laboratories.Inc. 5,176.00 Lab Analysis 47707 CWEA 120.00 Air Quality Meeting Registration 47708 CWEA Membership 92.00 Membership-Calif.Water Environment Assoc. 47709 Dapper Tire Co. 1.049.77 Truck Tires 47710 David's Tree Service 6,275.00 Tree Maint.Service 47711 De Guelle Glass Co.,Inc. 131.65 Safety Glass 47712 Del Mar Analytical 13,026.00 Biosolids Analysis 47713 Diamond H Recognition 376.90 Employee Service Awards 47714 DlgiPhoo 10.95 Photographic Services 47715 DIglTena 3.555.75 Client Access Software License-IBM AS400 47716 Dunn-Edwards Corporation 572.20 Paint Supplies 47717 E.Sam Jonas Distributors,Inc. 214.97 Electrical Supplies 47718 Ecology Control Industries 9,632.83 Hazardous Waste Disposal 47719 Employers Group Service Corp. 4.400.00 Human Resources Training Registration 47720 Enchanter,Inc. 3,600.00 -Ocean Monitoring MO 5-24-95 47721 Environmental Reseuroe Association 3,496.13 Lab Parts&Supplies 47722 Environmental Systems Research Inst. 10,667.25 Software License-ESRI Arclnfo 47723 ENRG 68.93 Operational&Maintenance Services-Compressed Natural Gas Stations 47724 ENS Resources,Inc. 4,000.00 Professional Services-Legislative Advocate 47725 FedEx Corporation 118.09 Air Freight 47726 First American Real Estate Solutions 425.94 Orange County Property Information 47727 Fisher Scientific Company,L.L.C. 5,143.40 Lab Parts&Supplies 47728 Flat and Vertical,Inc. 270.00 Concrete Cutting 47729 Fountain Valley Camera 16.32 Photo Supplies 47730 Frankrin Covey 288.12 Office Supplies 47731 Fry's Electronics 1,537.20 Computer Supplies 47732 Full Spectrum Anaylics 700.23 Instrument Repairs 47733 GE Supply 6,297.78 Electrical Parts&Supplies 47734 Ganahl Lumber Company 568.66 Lumber/Hardware 47735 George Yardley Co. 43.10 Electrical Supplies 47736 Government Finance Officers Association 105.00 Subscription 47737 W W Grainger,Inc. 2,862.75 Electrical Parts&Supplies 47738 Graphic Distributors 461.17 Photographic Supplies 47739 Graybar 1.760.06 Computer Hardware/Sofhvare Supplies 47740 Hell&Associates 19.603.64 Legal Services-NPDES Pemdt Page 3 of 10 EXHIBIT A Claims Paid From 10/01102 to 10115/02 Warrant No. Vendor Amount Description 47741 Harold Primmse Ice 74.00 Ice For Samples 47742 Hatch&Kirk,Inc. 301.65 Engine Generator Control Supplies 47743 Herb's Blackforest Bakery&Dell 47.26 Meeting Expenses 47744 HIM,Inc. 441.78 Mechanical Parts&Supplies 47745 Home Depot 25.66 Small Hardware 47746 Hopkins Technical Products 13.065.76 Pump&Pump Supplies 47747 Hub Auto Supply 160.07 Automotive Supplies 47746 HI Standard Automotive 219.81 Automotive Supplies 47749 klaxx 6,012.46 Lab Parts&Supplies 47750 Imaging Express 1,662.74 Printer Maintenance 47751 Imaging Plus,Inc. 2,506.39 Printing Service 47762 Industrial Distribution Group 2,806.74 Mechanical Parts&Supplies 47753 Industrial Metal Supply 570.05 Metal 47754 Information Resources 890.00 Human Resources Service 47756 Rob Rooter 4,805.00 CCTV Videoing of Trunkline Sewers 47756 Inorganic Ventures, Inc. 225.68 Lab Supplies 47757 Intralek Computer,Inc. 1,580.00 Network&Server Maintenance 47758 Invensys Systems,Inc. 3,342.46 Instrument Supplies 47759 J&B Auto Parts 764.25 Auto Parts&Supplies 47760 Jay's Catering 4,369.51 Meeting Expenses 47761 Johnstone Supply 620.55 Instrument Parts&Supplies 47762 J2 Printing Services 893.33 Printing 47763 Kensington Electronics 137.27 Electrical Supplies 47764 Lascemm 1.863.78 Computer SOHware/Hardware 47765 Linjer Company c/o Gerald Jones 4,580.96 Professional Service-DART MO 9-22-99 47766 Los Angeles County 1.038.50 Sewer Service Conn.Agreement MO 9123/98 47767 Lucci's 304.50 Meeting Expense 47768 M.J.Schiff&Associates,Inc. 17,862.98 Professional Services-Corrosion Study 47769 Manleys Boller,Inc. 10,680.00 Boiler Repair 47770 McMaster-Can Supply Co. 862.93 Mechanical Parts&Supplies 47771 Mechanical Seel Repair,Inc. 2,720.69 Mechanical Seal 47772 Midway Mfg&Machining Co. 955.00 Mechanical Repairs 47773 Mission Uniform Service 4,357.86 Uniform Rentals 47774 Moreland&Associates 7,156.60 Auditing Services MO 3-8-95 47775 Motion industries 1,331.80 Mechanical Parts&Supplies 47776 MAACO Auto Painting&Bodyworks 920.51 Vehicle Painting 47777 MBC Applied Environmental Sciences 1,420.00 Lab Analyses 47778 National Plant Services. Inc. 13,385.00 Vacuum Truck Services 47779 Neal Supply Co. 76.76 Plumbing Supplies 47780 Network Catalyst,Inc. 7,057.24 Computer Software/Hardware 47181 Newark Electronics 3.491.00 Electrical Parts&Supplies 47782 Ninyo&Moore Corporate Accounting 439.11 Professional Services-Materials Testing MO 6.24-98 47783 Nu-Way Least Engraving 2.253.90 Steel Tags 47784 NCG Porter Novelli,Inc. 151.98 Professional Services-Public Relations 47785 Office Depot Business Services Div. 2,041.58 Office Supplies a Pape 4 of 10 EXHIBIT A Claims Paid From 10/01/02 to 10115/02 ' Warrant No. Vendor Amount Description 47786 Omega Industrial Supply,Inc. 192.16 Janitorial Supplies 47787 OneSource Distributors,Inc. 34.54 Electrical Parts&Supplies 47788 Optic Software,Inc. 5,335.00 Software Llcense-Optio Fax Server 47789 Orange Coast Petroleum Equipment, Inc. 1,301.76 Fuel Pump Equipment 47790 Orange Fluid System Technologies, Inc. 207.11 Mechanical Parts&Supplies 47701 Oxygen Service Company 1.671.17 Specially Gases 47792 OCE-USA,Inc. 502.00 Scanner/PloBer Maintenance 47793 Paco Analytic Services 250.00 Lab Analyses of Wastewater&Blosolids 47794 Pacific Bell 17.64 Telephone Services 47795 Pad0c Health&Safety Consulting,Inc. 1,817.70 Professional Services-Industrial Hygiene Survey for Lab Acid Gases 47796 RH Phillips Co. 696.00 Notices&Ads 47797 Paci0c Mechanical Supply 3,396.81 Plumbing Supplies 47798 Pacific Pans&Controls 3,901.00 Electrical Supplies&Pans 47799 Voided Check - - 47800 Parkhouss Tire Co. 164.03 Time 47801 Pans Unlimited 643.90 Truck Supplies 47802 Perms Pure,Inc. 218.47 Filler 47803 Pon Supply 205.07 Foul Weather Gear 47804 Power Bros.Machine,Inc. 1.256.50 Mechanical Repairs 47805 Primary Source 8.237.42 Office Fumiture 47806 Print Management Group,Inc. 657.28 Printing Services 47807 Projects Partners 17,036.31 Temporary Employment Services 47808 Pumping Solutions,Inc. 733.30 Pumps 47809 PCS Express 110.00 Courier Service 41810 R.W.Beck 8,876.64 Professional Services P7-90 47811 R.L.Abbott&Associates 3,000.00 Kem County Biosolids Consulting Services 47812 Red Wing Shoes 200.85 Reimbursable Safety Shoes 47813 Regents of Univ.of California 20.62 Professional Services J-85 47814 Reliastar 8.953.00 Employee Basic Life Insurance Premium 47815 Rockhurst College.Continumg Education 652.81 Accounting Training Registration 47816 Ryan Herco Producle Corp. 451.87 Plumbing Supplies 47817 RJN Group,Inc. 9,697.50 Software Maintenance-CMMS 47818 Safety-Kleen 497.20 Service Agreement-Pans Cleaning,Fluids Removal&Installation 47819 San Diego Gas&Electric 390.00 O&M Training Registration 47820 Sancon Engineering,Inc. 4,850.00 Construction-Manhole Rehabilitation&Concrete Surfaces Repair 47821 Schwing America,Inc. 2,845.96 Pump Supplies 47M Scott Specialty Gases,Inc. 5,374.51 Specialty Gases 47823 Solon Name Plate Corp 82.26 BaMcade Tape 47824 Shepherd Machinery Co. 1,114.60 Truck Supplies 47825 Shimadzu Scientific Instruments,Inc. 491.29 Lab Parts&Supplies 47826 Shureluck Sales&Engineering 598.99 Mechanical Parts&Supplies 47827 Supelco,Inc. 135.42 Lab Parts&Supplies 47828 Smith-Emery Company 2,570.00 Professional Services P1-37&741 47829 SoOVlew Computer Products 1.277.00 Office Supplies 47830 So9Choice 13,977.42 Software Page 5 of 10 EXHIBIT A Claims Paid From 10/01/02 to 10/15/02 Warrant No. Vendor Amount Description 47831 South Coast Air Duality Management Dist. 270.89 Permit Fees-Annual Emission,Operation&Misc.Fees 47832 South Coast Envirenmental Co. 2.380.59 Can Gen Emissions Testing Service 47833 Southern California Edison 8,929.73 Power 47834 Spex Certiprep,Inc. 277.94 Lab Parts&Supplies 47835 State Board of Equalization 223.80 Underground Petroleum Storage Tank Fee 47836 Summit Steel 165.22 Metal 47837 Sunset Ford 139.00 Automotive Parts&Service 47838 Sunset Industrial Parts 235.54 Mechanical Parts&Supplies 47839 Symces-TSG 1.384.18 SCADA System Maintenance Agreement 47840 SAWPA 3.000.00 Professional Services-Santa Ana Watershed Project Authority 47841 Tennlnix International Co. 1.680.00 Pest Control 47842 Tetra Tech,Inc. 10,478.00 Professional Service-Ocean Monitoring Program 47843 Themro Elemental 11,791.00 Lab Equipment Software Agreement 47844 Thomas Gray&Assoc. 198.00 Biosolids Analysis 47845 Thompson Industrial Supply,Inc. 1,885.24 Mechanical Parts&Supplies 47846 ThyssenKrupp Elevator 1,280.00 Elevator Maintenance 47847 Time Warner Communication 40.47 Cable Services 47848 Todd Anderson 5.250-00 Professional Services J-85 47849 Tropical Plaza Nursery, Inc. 13,109.00 Contract Gmundskeeping MO 5-11-94 47860 Truck&Auto Supply,Inc. 267.21 Autom five Supplies 47861 Truesdell Laboratories,Inc. 2.010.00 Lab Services 47852 U.S.Metro Group,Inc. 24,785.00 Janitorial&Floor Maintenance at Plants 1 &2 47853 United Parcel Service 1,058.70 Parcel Services 47854 Defense Finance and Accounting 3,431.56 Professional Services J-85 47855 Verizon California 60.84 Telephone Services 47856 Veme's Plumbing 6.250.41 Service Contract-Relocation of Back0ow Device 47857 Village Nurseries 264.49 Landscaping Supplies 47858 Vision Service Plan 7,657.12 Vision Service Premium 47859 Vortex Industries,Inc. 257.00 Door Repair 47860 VWR Scientific Products Corporation 4.280.94 Lab Parts&Supplies 47861 The Wackenhut Corporation 18,617.48 Security Guards 47862 Walden&Associates 4,010.05 Professional Services-Big Canyon Trunk Sewer 47863 Wally Machinery and Tool Supply, Inc. 542.35 Mechanical Parts&Supplies 47864 Waste Markets Corp. 23,875.02 Malnt.Agreement-Grit&Screenings Removal&Digester Bed Mafl.Removal 47865 Water Systems Cleaning Co. 1,465.00 Cleaning Services-Pit. l Fume Scrubber No.9 47866 WEF 896.00 Membership-Water Environment Federation 47887 Xerox Corporation 15,511.99 Fax&Copier Leases 47868 Yellowstone Technologies, Inc. 5,500.00 Financial Information System Software Upgrade/Implementstlon 47869 Zee Medical 796.16 Safety Supplies 47870 Margate Construction,Inc. 8,045.00 Construction P2-85-1 47871 Jennifer M.Cabral 566.71 Meeting/rmining Expense Reimbursement 47872 John B.Falkenstein 409.96 Meeting/rmining Expense Reimbursement 47873 David P.Halverson 613.50 Meeting/Training Expense Reimbursement 47874 Deirdre E.Hunter 196.77 Meeting/Training Expense Reimbursement 47875 Brian K.Reed 315.88 MeelInglTraining Expense Reimbursement Page a o1 10 EXHIBIT A Claims Paid From 10/01/02 to 101116102 Warrant No. Vendor Amount Descripeon 47876 Marco Polo S.Velasco 439.50 Meeting/rraining Expense Reimbursement 47877 Morris C.1/ng 411.02 Meeting/Training Expense Reimbursement 47878 A&G Electropolish 165.19 Reconciliation User Fee Refund Program 47879 Acroburr,Inc. _ 3A7 Reconciliation User Fee Refund Program 47880 Air Industries Corporation 3,481.39 Reconciliation User Fee Refund Program 47881 All Metal Paint Stripping,Inc. Z91324 Reconciliation User Fee Refund Program 47882 Allied Pacific Metal Stamping 319.32 Reconciliation User Fee Refund Program 47883 Alloy Die casting 846.19 Reconciliation User Fee Refund Program 47884 Alloy Tech Eleclropolishing Intl. 30.72 Reconciliation User Fee Refund Program 47885 Alltek Circuit,Inc. 634.88 Reconciliation User Fee Refund Program 47886 Alpha Beta Markets 15,330.57 Reconciliation User Fee Refund Program(Subsequently Voided) 47887 Aluminum Precision 1,516A6 Reconciliation User Fee Refund Program 478B8 Amcor-Sunclipse,Inc. 3,550.18 Reconciliation User Fee Refund Program 47889 Amedmax Building Products,Inc. 485.97 Recondliaton User Fee Refund Program 47890 Anaheim Extrusion Co.,Inc. 1.106.18 Reconciliation User Fee Refund Program 47891 Aqua-Con 606.84 Reconciliation User Fee Refund Program 47892 Arrowhead Products 2,677.03 Reconciliation User Fee Refund Program 47893 Autp-Chlor System of Washington,Inc. 689.00 Reconciliation User Fee Refund Program 47894 APW Enclosure Systems 3,542.17 Reconciliation User Fee Refund Program 47895 APW Enclosure Systems,L.L.C. 3,895.28 Reconciliation User Fee Refund Program 47896 Basic Electronics,Inc. 479.75 Reconciliation User Fee Refund Program 47897 Baa Houston Co. 2,384.21 Reconciliation User Fee Refund Program 47898 Beckman Coulter,Inc. 19,882.13 Reconciliation User Fee Refund Program 47899 Boeing 11,699.58 Reoondliation User Fee Refund Program 47900 Bridgemark Corporation 82.10 Reconciliatbn User Fee Refund Program 47901 Bristol Industries 7,657.40 Reconciliation User Fee Refund Program 47902 Burlington Engineering, Inc. 326.44 Reconciliation User Fee Refund Program 47903 BI Technologies 360.86 Reconciliation User Fee Refund Program 47904 BP West Coast Products,L.L.C. 950.82 Reconciliation User Fee Refund Program 47905 Cambro Manufacturing 2.213.97 Reconciliation User Fee Refund Program 47906 Cannon Equipment West 2,517.26 Reconciliation User Fee Refund Program 47907 Caren Precision Engineering 880.00 Reconciliation User Fee Refund Program 47908 Central Powder Coating 686.98 Reconciliation User Fee Refund Program 47909 Ceradyne,Inc. 8,23329 Reconciliation User Fee Refund Program 47910 Cheek Engineering&Stamping 562.70 Reconciliation User Fee Refund Program 47911 Cherry Textron 16,553.09 Reconciliation User Fee Refund Program 47912 Criterion Machine Works 730.69 Reconciliation User Fee Refund Program 47913 Crockett Container Corp. 4,232A2 Reconciliation User Fee Refund Program 47914 Custom Enamelers,Inc. 711.84 Reconciliation User Fee Refund Program 47915 Dee Shin USA,Inc. 1,143.05 Reconciliation User Fee Refund Program 47916 Data Ate,Inc. 652.81 Reconciliation User Fee Refund Program 47917 Delphi Automotive Systems L.L.C. 14,706.51 Reconciliation User Fee Refund Program 47918 Derm Cosmetic Labs,Inc. 3,308.72 Reconciliation User Fee Refund Program 47919 Details,Inc. 2,210.44 Reconciliation User Fee Refund Program 47920 DRS Technologies 2,301.10 Reconciliation User Fee Refund Program Page 7 of 10 EXHIBIT A Claims Paid From 10/01/02 to 10/15/02 Warrant No. Vendor Amount Description 47921 Eaton Comoration/MSC Products 4.180.51 Reconciliation User Fee Refund Program 47922 Engravers Ink Company 30.57 Reconciliation User Fee Refund Program 47923 Enthone/Fry's Metals/Alpha Metal Div. 11,221.78 Reconciliation User Fee Refund Program 47924 Essex Group,Inc. 11,937.70 Reconciliation User Fee Refund Program 47925 Flexible Metal Hose Manufacturing 558.60 Reconciliation User Fee Refund Program 47926 Fullerton Foods/Oscar Mayer Foods Corp. 2,955.80 Reconciliation User Fee Refund Program 47927 Fullerton Plating 2,063.59 Reconciliation User Fee Refund Program 47928 Gardner Lithograph 789.16 Reconciliation User Fee Refund Program 47929 General Container Corp. 2.118.08 Reconciliation User Fee Refund Program 47930 Georgia Paci0c 16.974.45 Reconciliation User Fee Refund Program 47931 Gomtech Electronics 128.38 Reconciliation User Fee Refund Program 47932 Goodwin Company 7,391.13 Reconciliation User Fee Refund Program 47933 Gorilla's Polishing and Plating Corp. 272.46 Reconciliation User Fee Refund Program 47934 Graphic Packaging Corp. 1,132.47 Reconciliation User Fee Refund Program 47935 H Koch 8 Sons 2,347.67 Reconciliation User Fee Refund Program 47936 Hamilton Materials 2,235.79 Reconciliation User Fee Refund Program 47937 Harbor Truck Bodies 1,033.54 Reconciliation User Fee Refund Program 47938 The Hartwell Corporation 4,301.91 Reconciliation User Fee Refund Program 47939 High Tech Coatings SF 113.20 Reconciliation User Fee Refund Program 47940 Hightower Plating 8 Manufacturing Co. 4,171.56 Reconciliation User Fee Refund Program 47941 Hyatt Die Casting 8 Engineering Corp. 505.91 Reconciliation User Fee Refund Program 47942 Irvine Sensors Corp. 3,844.57 Reconciliation User Fee Refund Program 47943 ICN Pharmaceuticals 1.354.40 Reconciliation User Fee Refund Program 47944 IPC Cal Flex,Inc. 161.32 Reconciliation User Fee Refund Program 47945 ITT Cannon Electric 13,099.32 Reconciliation User Fee Refund Program 47946 ITT Jabsco Products 2.069.32 Reconciliation User Fee Refund Program 47947 J.R.&D.,Inc. 3.812.92 Reconciliation User Fee Refund Program 47948 J-Tron,Inc. 13A9 Reconciliation User Fee Refund Program 47949 Jefferson Smurfit Corp. 9,171.00 Reconciliation User Fee Refund Program 47950 Johnson Controls,Inc. 9.668.32 Reconciliation User Fee Refund Program 47951 KCA Electronics,Inc. 22,005.64 Reconciliation User Fee Refund Program 47952 Lam Lighting,Inc. 1,802.92 Reconciliation User Fee Refund Program 47953 Los Alamitos General Hospital 4,644.91 Reconciliation User Fee Refund Program 47954 M.S.Bellows 152.01 Reconciliation User Fee Refund Program 47955 Magnetic Metals Corporation 1.080.91 Reconciliation User Fee Refund Program 47956 Voided Check - 47957 Milbank West,Inc. 5,212.39 Reconciliation User Fee Refund Program 47958 Monogram Systems 1,535.19 Reconciliation User Fee Refund Program 47959 Newport Corporation 10,045.32 Reconciliation User Fee Refund Program 47960 Olympic Coating 9,277.14 Reconciliation User Fee Refund Program 47901 Orange Container 5,893.68 Reconciliation User Fee Refund Program 47962 Orange County Sanitation District 226.68 Petty Cash Reimb. 47963 Paoli Aerospace Corp. 1.754.33 Reconciliation User Fee Refund Program 47964 Payton Technology Corp. 4,862.34 Reconciliation User Fee Refund Program 47965 Pico Farad,Inc. 655.67 Reconciliation User Fee Refund Program Page 8 of 10 EXHIBIT`A Claims Paid From 10/01102 to 10115/02 Warrant No. Vendor Amount Description 47966 Pllkington Aerospace 11,385.62 Reconciliation User Fee Refund Program 47967 Piston Corp. 932.45 Reconciliation User Fee Refund Program 47968 Powderotat Services 118.41 Reconciliation User Fee Refund Program 47969 Powdercoat Services 309.83 Reconciliation User Fee Refund Program 47970 Precious Metals Plating Co, 21.24 Reconciliation User Fee Refund Program 47971 Precision Painting 1,526.71 Reconciliation User Fee Refund Program 47972 Precon,Inc. 109.64 Reconciliation User Fee Refund Program 47973 Revere Transducers 2,652.37 Reconciliation User Fee Refund Program 47974 Ricoh Electronics 4,718.84 Reconciliation User Fee Refund Program 47075 Santora Corporation 1,104.70 Reconciliation User Fee Refund Program 47976 Sanmina Corporation 2,346.07 Reconciliation User Fee Refund Program 47977 Santana Services 150.46 Reconciliation User Fee Refund Program 47978 Semicoa 279.13 Reconciliation User Fee Refund Program 47979 South Bay Chrome Sales 148.98 Reconciliation User Fee Refund Program 47980 South Coast Water Company 66.61 Reconclllation User Fee Refund Program 47981 St Jude Medical Center 3,804.15 Reconciliation User Fee Refund Program 47992 Superior Processing 102.44 Reconciliation User Fee Refund Program 47983 Taormina Industries,Inc. 142.57 Reconciliation User Fee Refund Program 47984 Taylor-Dunn Manufacturing 3.364.46 Reconciliation User Fee Refund Program 47985 Themwu Systems, Inc. 794.18 Reconciliation User Fee Refund Program 47986 Toyota Racing Development 1.437.45 Reconciliation User Fee Refund Program 47987 Troy Systems, Inc. 952.10 Reconciliation User Fee Refund Program 47988 United Circuit Technology 1.337.68 Reconciliation User Fee Refund Program 47989 UC Regents 360.00 08 M,Admin and Communications Meeting Registration 47990 Vendor, Inc. 7,45329 Reconciliation User Fee Refund Program 47991 West American Rubber Company 7.002.30 Reconciliation User Fee Refund Program 47992 Weyemauser Company 17.280.19 Reconciliation User Fee Refund Program 47993 XZX Electronics,Inc. 76.00 Reconciliation User Fee Refund Program 47994 Y K K(USA),Inc. 3,859.21 Reconciliation User Fee Refund Program 47995 Y2K Textile Co.,Inc. 1,374.45 Reconciliation User Fee Refund Program 47996 ADS Environmental Services,Inc. 62,060.00 Professional Services J-73-2 47997 Bell Land Surveying 31,421.74 Professional Surveying Services-Various Capital Projects 47998 Black&Veatch Corporation 185,604.93 Engineering Services Pl-76&P2-85 47999 Dell Direct Sales,L.P. 154,425.16 (100)Computers,(50)Monitors&(1)Notebook 48000 Della Dental 49,138.24 Dental Insurance Plan 48001 E.I.Du Pont De Nemours and Company 72,639.00 Painting Malnt.Services MO 4-22-98 48002 Envimnmenlal Engineering 8 Contracting 29.500.00 Professional Services-Fat,Oil 8 Grease Conlml Study,Phase 1 48003 Jamison Engineering Contractors,Inc. 67.651.07 Construction-Basin M Sludge Line Repair 48004 Kalser Foundation Health Plan 41,492.50 Medical Insurance Premium 48005 Kemlmn Pacific,Inc. 139,476.61 Ferric Chloride MO 9-27-95 48006 NRG Energy,Inc. 80,378.49 Chemicals 48007 Pacific Ford 60.866.04 (3)Ford 15-Passenger Commuter Vans 48008 Pioneer Americas,Inc. 182.243.60 Sodium Hypochlorite 48009 Science Applications Intl.,Corp. 110.283.55 Prof.Sm.J-85.NPDES Permit Application&Ocean Monitoring 48010 Synagro Technologies,Inc. 157,624.03 RaMduals Removal MO 3-29-95 Page 9 of 10 EXHIBIT A Claims Paid From 10/01/02 to 10/15/02 Warrant No. Vendor Amount Description 48011 SPEC Services,Inc. 55.590.94 Engineering Services J-33-1 48012 Tran Consulting Engineers 96.199.00 Engineering Services 7-21&1-17 48013 Tula RaneWagen Farms 106,024.96 Residuals Removal MO 3-29-95 48014 U.S.Peroxide 259.307.88 Hydrogen Peroxide 48015 The Yakima Company 105,206.65 Residuals Removal MO 3-22-00 48016 AdanWMallory Construction Co.,In. 69,668.46 Construction JAO 48017 MMC,Inc. 36,224.19 Const.-Ventilation Sys.Upgrades-Main St.Pump Sta. 48018 Coral Energy Resources,L.P. 96,755.32 Natural Gas 48019 SPS Technologies 26,279.10 Reconciliation User Fee Refund Program 48020 Dhamla Consulting 16.025.00 Technical Services Off-S0e Retreat-Training 48021 Air Products&Chemicals 25,758.02 O&M Agreement Oxy Gen Sys MO 8-8-89 Total Accounts Payable-Warrants $ 4217,407.63 Payroll Disbursements 27792-27893 Employee Paychecks $ 156,011.92 Biweekly Payroll 10/02/02 27894-27894 Interim Paycheck 895A3 Adjustment 77374-77839 Direct Deposit Statements 803.842.27 Biweekly Payroll 10/02/02 Total Payroll Disbursements $ 960.749.62 Whe Transfer Payments Chase Bank of Texas National Association $ 44.33928 September Interest Payment on Series 1993 Certificates of Participation Chase Bank of Texas National Association 118,356.99 Societe Generale September Swap Payment on 1993 Certificates of Participation Total Wire Transfer Payments $ 162.69627 Total Claims Paid 10/01/02.10115102 9 5,340,853.52 c Page 10 of 10 EXHIBIT A Claims Paid From 10/16/02 to 10/31/02 0 Warrant No. Vendor Amount Description Accounts Payable-Warrants 48022 American Express $ 40.132.45 Purchasing Card Program,Misc.Supplies&Services 48023 Conexant Systems, Inc. 47.389.59 Reconciliation User Fee Refund Program 48024 Employee Benefits Specialists,Inc. 53,565.02 Reimbursed Prepaid Employee Medical&Dependent Care 48025 Orange County Business Council 25,000.00 Membership 46026 Orange County Sanitation District 541,920.00 Paymll EFT Reimbursement 48027 World Citrus West 65,533.75 Reconciliation User Fee Refund Program 48028 Alrgas Safety 1,059.30 Safety Supplies&Equipment 48029 Allied Packing&Rubber, Inc. 83.01 Mechanical Pars&Supplies 48030 Anaheim Hills Auto Body 210.00 Reconciliation User Fee Refund Program 48031 American Telephone&Telegraph Corp. 60.73 Telephone Service 48032 Court Order 626.2D Wage Garnishment 48033 Circuit Center 136.99 Reconciliation User Fee Refund Program 48034 City of Huntington Beach 1,200.0D Permit Fees-Coastal Development 48035 Court Order 150.00 Wage Garnishment 48036 Consolidated Elect.Distributors.Inc. 2,005.47 Electrical Supplies 48037 California Special Districts Association 160.00 Administrative Services Meeting Registration 48038 CSMFO 100.00 Accounting Meeting Registration 48039 Electra-Bond 996.69 Epoxy Coating 48040 Employment Development Dept. 4,219.00 State Unemployment Tax 48041 Court Order 525.00 Wage Garnishment 4SD42 Franchise Tax Board 545.44 Wage Garnishment 48043 Gilmour Group clo Lippincott Co. 1.200.62 Hoses 48044 Industrial Metal Supply 254.50 Metal 48NS Industrial Threaded Products,Inc. 707.17 Mechanical Parts&Supplies 48046 Intl. Union of Oper. Eng.AFL-CIO Local 501 3,258.90 Dues Deduction 48047 JP Morgan Chase Bank 8.056.00 COP Trustee Services-1993 Refunding Certificates of Participation 48048 McMaster-Cart Supply Co. 765.15 Mechanical Parts&Supplies 48049 Midway Mfg&Machining Co. 11.610.56 Mechanical Pars&Supplies 48050 Motion Industries 17.58 Mechanical Parts&Supplies 48051 National Bond&Trust 1.056.55 U.S.Saving Bonds 48052 Newport Lido Medical Center 22,640.27 Reconciliation User Fee Refund Program 48053 Orange County Sheriff 45.00 Wage Garnishment 48054 OCDM Marketing 3,732.93 Mass Mailing Postage-Bushard Project 48055 OCEA 524.61 Dues Deduction 48056 Pacific Bell 68.38 Telephone Services 48057 Court Order 40.00 Wage Gamishment 48058 Paragon Steel 2.113.12 Metal 48059 Court Order 296.00 Wage Garnishment 48060 Peace Officers Council of CA 1,098.00 Dues Deduction 48061 Penick Partners 926.82 Reconciliation User Fee Refund Program 48062 PS Business Parks 2,963.78 Reconciliation User Fee Refund Program 48063 Rainbow Disposal Co.,Inc. 210.0D Reconciliation User Fee Refund Program 48064 Rockhurst College Continuing Education 395.00 Engineering Training Registration 48065 Sears,Roebuck and Company 474.94 Reconciliation User Fee Refund Program 48066 Shamrock Supply Co., Inc. 5,773.33 Mechanical Pens&Supplies Page 1 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 48067 Court Order 721.50 Wage Garnishment 48068 So.Cal.Gas Company 23,554.35 Natural Gas 48069 Southern California Edison 2,334.22 Power 48070 Slate Street Bank and Trost Co.of Ca. 4,760.50 COP Trustee Services-Series 2000 Certificates of Participation 48071 Super Power Products 646.50 Janitorial Supplies 48072 SMT Dynamics Corporation 460.00 Reconciliation User Fee Refund Program 48073 Daily Pilot 181.25 Notices&Ads 48074 The Unisource Corporation 252.74 Office&Stationery Supplies 48075 United Way 205.00 Employee Contributions 48076 Varco Systems 21,581.19 Reconciliation User Fee Refund Program 48077 Verizon California 2,340.09 Telephone Services 48078 Westamerica Graphics 2,890.38 Printing 48079 WEF 560.00 Membership-Water Environment Federation 48080 Nicolas J.Arhontm 122-00 Meefing/Training Expense Reimbursement 48081 Jeffrey Brown 1,372.83 MeetingfTmining Expense Reimbursement 48082 Fronk Chavez 1,189.60 Meeting/Training Expense Reimbursement 48083 Court Order 1.593.69 Meeting/Training Expense Reimbursement 48084 Jerry F.Evangelista 112.00 Meetingrrmining Expense Reimbursement 48085 Dionne Kardos 480.57 MeatinglTmining Expense Reimbursement 48086 Vladimir A-Kogan 1,349.10 Meeting/Training Expense Reimbursement 48087 Lirda Losurdo 172.00 Meeting/1'mining Expense Reimbursement 48088 Simon L.Watson 612.83 Meeting/Training Expense Reimbursement 48089 Charles F.Winsor 815.53 Meeting/Tmaing Expense Reimbursement 48090 Ernest N.Yeboah 586.15 Meell gTrainirg Expense Reimbursement 48091 Almatmn Electronics 79.98 Reconciliation User Fee Refund Program 48092 Aluminum Forge 838.33 Reconciliation User Fee Refund Program 48093 B.Braun Medical,Inc. 922.17 Reconciliation User Fee Refund Program 48094 Bridgford Foods Corporation 81.90 Reconciliation User Fee Refund Program 48095 BAF Industries 252.05 Reconcifalion User Fee Refund Program 48096 Chrome Technology,Inc. 78.95 Reconciliation User Fee Refund Program 48097 City of Tustin Water Service 2,223.01 Reconciliation User Fee Refund Program 48098 Dan Siwulec Communications Marketing 954.87 Public Notice Services&Postage 48099 Danco Metal Surfacing/Anomil Ent. 547.19 Reconciliation User Fee Refund Program 48100 Disneyland Resort 20,360.61 Reconciliation User Fee Refund Program 48101 El Toro Meat Strop 14,842.68 Reconciliation User Fee Refund Program 48102 Eleclmservioes 2000,In. 80.28 Reconciliation User Fee Refund Program 48103 Health Care Apparel Services 1,443.79 Reconoliatlon User Fee Refund Program 48104 Ideal Anodioing 1,125.76 Reconciliation User Fee Refund Program 48105 Integrated Aerospace,Inc. 111.71 Reconciliation User Fee Refund Program 48106 L&N Uniform Supply Co. 859.22 Reconciliation User Fee Refund Program 48107 Leach Corp. 127.81 Reconciliation User Fee Refund Program 48108 Los Angeles Times 910.09 Recondliialion User Fee Refund Program 48109 Margarelis Textile Service 10.164.74 Reconciliation User Fee Refund Program 48110 Mask Technology,Inc. 810.94 Reconciliation User Fee Refund Program 48111 Metal Powder Products 1,883.46 Reconciliation User Fee Refund Program 48112 Newport Fab,L.L.C. 827.24 Reconciliation User Fee Refund Program Page 2 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 48113 Pacific Quartz,Inc. 661.65 Reconciliation User Fee Refund Program 48114 Precision CirwOs West 41.20 Reconciliation User Fee Refund Program 48115 California Fineblankirg Corp. 848.91 Reconciliation User Fee Refund Program 48116 Prime Technologies,Inc. 516.05 Reconciliation User Fee Refund Program 48117 Printronix,Inc. 133.42 Reconciliation User Fee Refund Program 48118 Santa Ana Reg.Water Quality Control 500.00 Permit Certification 1-2-4 48119 South Coast Circuits N2 552-57 Reconciliation User Fee Refund Program 48120 South Coast Oil Corp 60.53 Reconciliation User Fee Refund Program 48121 Bratsk Corporation 468.25 Reconciliation User Fee Refund Program 48122 Steiner Corporation 515.58 Reconciliation User Fee Refund Program 48123 Stepan Company 16,141.00 Reconciliation User Fee Refund Program 48124 Toyota Racing Development 491.48 Reconciliation User Fee Refund Program 48125 UWMC Hospital Corp. 1,040.52 Reconciliation User Fee Refund Program 48126 Valle Circuits,Inc. 1,848.59 Reconciliation User Fee Refund Program 48127 Victory Clmuits,Inc. 57.09 Reconciliation User Fee Refund Program 48128 Weber Precision Graphics 485.97 Reconciliation User Fee Refund Program 48129 West Newport Oil Company 8,115.49 Reconciliation User Fee Refund Program 48130 Winonics 3,795.56 Reconciliation User Fee Refund Program 48131 AKM Consulting Engineers 47,092.93 Professional Services 741 48132 Black&Veatch Corporation 75.639.15 Engineering Services J-77 48133 Brown&Caldwell 126,215.41 Engineering Services P7-37&1-98 48134 Camillo Engineers 33,319.71 Engineering Services P2-66&J-39 48135 Communications Performance Group,Inc. 25,056.08 Professional Services-Hazardous Energy Control Project 45136 Coral Energy Resources,L.P. 100,653.6D Natural Gas 48137 Ciba Specialty Chemicals Corporation 62,084.69 Cationic Polymer 48138 DWG Associates 35.030.61 Professional Services-Oxygen Plant Replacement/Rehabilitation Assessment 48139 Irvine Technology Corporation 25,040.00 Temporary Employment Services 48M Kemiron Pacific,Inc 55,606.67 Ferric Chloride MO 9-27-95 48141 Lee&Ro,Inc 48,739.35 Engineering Services-5.49,5-50,5.51 &5-52 48142 Municipal Water Dist.of Orange County 55,563.19 Water Use Efficiency Program MO 9-22-99 48143 NetVersanl of Southern California 43,741.94 Human Resources Security System Improvements 48144 Northwest Industrial Scrub,Inc. 43,570.00 Professional Services-Cleaning Digesters®Pit.2 48145 Orange County Water District 74,733.39 GAP Water Use MO 10-23.96 48146 Parsons Infrastructure&Tech.Group 29,180.46 Professional Services-Strategic Plan for Asset Management 48147 Pioneer Americas,Inc. 63,373.33 Sodium Hypochlonte 48148 Projects Partners 26,336.95 Temporary Employment Services 48149 Southern California Edison 76,016A7 Power 48150 Synagro Technologies,Inc. 245,077.21 Residuals Removal MO 3-29-95 48151 Systems Computer Corp 40,200.00 Professional Services-JO Edwards One-Wodd XE Implementagon 48152 Tetra Tech,Inc. 27,049.2D Professional Services-7-37 48153 Tule Ranch/Magan Farms 108,689.40 Residuals Removal MO 349-95 48154 U.S.Peroxide 25,710.19 Hydrogen Peroxide 48155 US Filter/Envirex 74,991.81 Install(2)Chain&Flight Sludge Collectors 48156 Victor Buick-GMC Truck 37,395.25 (1)2-Ton 20D3 Ch wrolet/GM Truck 48157 Woodruff,Spradlin&Smart 89,332.11 Legal Services MO 7.26.95 48158 The Yaklma Company 37,383.34 Residuals Removal MO 3-22-00 Page 3 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 48159 California Bank&Trust 52,376.00 Construction J-33-1A,Retention 48100 Connolly-Pacific Company 1,810,252.00 Construction J-39 48161 Manuel Bros.,Inc. 46.125.00 Construction-Fiber Optic Cabling Extension at Pit,2 48162 Margate Construction,Ina 2,285,696.00 Constnlction P2.39,J-71.7&P1-37 48163 Southern Contracting Company 471.376.00 Construction J-33-1 48164 Fawrile Foods,Inc. 30,532.71 Reconciliation User Fee Refund Program 48165 Irvine Ranch Water District 67,684.38 Reconciliation User Fee Refund Program 48166 Orange County Sanitation District 33,243.47 Workers Comp.Reimb. 48167 A-Plus Systems 1.567.07 Notices&Ads 48168 AccuStandard,Inc. 1,035.15 Lab Parts&Supplies 48169 Air&Waste Management Assoc. 600.00 Air Quality Meeting Registration 48170 Airborne Express 101.80 Air Freight 48171 Airgas-West 9.90 Lab Supplies 48172 Airgas Safety 3284.34 Safely Supplies&Equipment 48173 Alhambra Foundry Co.,Ltd. 5.419.83 Manhole Frames&Covers 48174 American Red Cross 522.00 CPR Training&Misc.Supplies 48175 Amot Control Corporation 80.03 Mechanical Pars&Supplies 48176 Appleone Employment Service 14,875.00 Temporary Employment Services 48177 AMSA 575.00 Compliance Meeting Registration 48178 API Basoo,Inc. 1,255.50 Heal Exchanger 48179 API Fund For Payroll Education,Inc. 848.00 Accounting Training Registration 48180 American Telephone&Telegraph Corp. 212.73 Telephone Service 48181 AT&T Wireless Services-Airtime 164.00 Cellular Telephone Service 48182 AWSI 133.00 Department of Transportation Training Program 48183 Baker Tanks 2,626.89 Tank Rentals 48184 Ballantyne,Inc. 17,748.00 Temporary Employment Services 48185 Basic Chemical Solutions 8,499.86 Sodium Blsulfite 48186 Battery Specialties 808.13 Batteries 48187 Beach Paving,Inc. 975.00 Asphalt Repair 48188 Camel Financial,Inc.cJo Bearing Metal 301.54 Metal 48189 Bell Land Surveying 2.W3.55 Professional Surveying Services-Various Capital Projects 48190 Barendsen Fluid Power 218.88 Mechanical Supplies 48191 Beliereux Vitek,Inc. 1,027.75 Lab Supplies 48192 Boyle Engineering Corporation 474.59 Engineering Services 2-31 48193 Cal State University 50.00 Compliance Training Registration 48194 California Auto Collision 1,037.63 Vehicle Body Repairs&Painting 48195 California Coastal Coalition 1.000.00 Membership 48196 California Relocation Services,Inc. 303.75 Office Moving Services 48197 Southern California Marine Institute 1,160.00 Ocean Monitoring Vessel Support 48198 California Urban Water Conserv.Council 300.00 Annual Contribution-Education&Research 48199 California Woodworking Machinery 3,207.44 Mechanical Equipment 48200 Charles P.Crowley Co. 166.01 Mechanical Paris&Supplies 48201 Clarke Sales 485.39 Mechanical Pars&Supplies 48202 Communications Supply Corp. 268.20 Electrcal Parts&Supplies 48203 Compressor Components of California 1,248.00 Compressor Cleaning&Testing 48204 Computer Protection Technology,Inc. 6,334.07 Computer Mainl.Agreement Page 4 of 12 EXHIBIT Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 48205 Computer Sciences Corp. 6,860.32 Consulting&Lab Services Assay Pilot Project 48206 Consolidated Elect.Distributors,Inc. 5,729.97 Electrical Parts&Supplies 48207 Consumers Pipe&Supply Co. 2.691.20 Plumbing Supplies 48208 Cooper Energy Services 15.466.22 Engine Supplies 482D9 Corporate Express 3.196.37 Office Supplies 48210 Cost Containment Solutions 697.75 Worker's Comp.Services 48211 Counterpart Enterprises,Inc. 1,062.76 Mechanical Parts&Supplies 48212 County Sanitation Dists of Los Angeles 2,720.00 OBaclometry Lab Analyses 48213 County Wholesale Electric Co. 1,036.44 Electrical Parts&Supplies 48214 Culligan of Orange County 35.00 Maim.Agreement-Can Gen Water SoBner System 48215 Custom Control Sensors 426.19 Electrical Supplies 48216 CAPIO 175.00 Membership-California Association of Public Info.Officials 48217 CR&R, Inc. 1.890.00 Container Rentals 48218 CWEA Membership 276.00 Membership-Calif.Water Environment Assoc. 48219 CWEA Specialty Conference 120.D0 Air Quality Meeting Registration 48220 Del Mar Analytical 234.00 Biosolids Analysis 48221 Dell Direct Sales,L.P. 4.929.25 Software Upgrade 48222 Driver Alliant Insurance Service,Inc 807.00 2001-02 Excess Workers Compensation Ins.Additional Premium 48223 E.Sam Jones Distributors,Inc. 130.39 Electrical Supplies 48224 Edison ESI 2.584.63 Sound Board Replacement-Steam Turbine Generator 482.25 Elecea-Bard 2,472.07 Epoxy Applicatkn 48226 Element K Journals 89.00 Subscription 48227 Employee Benefds Specialists,Inc. 537.25 Reimbursed Prepaid Employee Medical&Dependent Care 48228 Enchanter,Inc. 4,500.00 Ocean Monitoring MO 5-24-95 48229 Environmental&Occupational Risk Mgmt. 1,2D0.00 Professional Services J-33-1 48230 Environmental Resource Association/ERA 2,124.90 Lab Pans&Supplies 48231 Environmental Science Associates 22,301.42 Professional Services J 40.5 48232 Pacific States Chemical,Inc. 8.022.52 Chemicals 48233 Ewing migalion Industrial 829.96 Plumbing Supplies 48234 Fmedco 227.80 Idenfification Signs 48235 FedEx Corporation 117.04 Air Freight 48236 Filarsky&Watt,L.L.P. 4,750.00 Professonal Services,SPMT Negotiations 48237 Fisher Scientific Company,L.L.C. 7,755.49 Lab Parts&Supplies 48238 Fbmax Products 817.43 Plumbing Supplies 48239 Fluid Components Intl c/o Ponkn Ind. 7,698.63 Instrument Parts&Supplies 48240 Fountain Valley Chevron Ado Wash 715.25 Truck Wash Tickets 48241 Franklin Covey 524.64 Office Supplies 48242 Fry's Electronics 215.49 Computer Supplies 48243 General Petroleum 12,157.32 Gasoline 48244 George T.Hall 1.059.43 Electrical Supplies 48245 Getinge Castle 516.00 Lab Supplies 48245 Goldenwest Fence Company 863.75 Construction P2-60 48247 W W Grainger, Inc. 3,783.77 Mechanical Parts&Supplies 48248 Graybar 16.916.32 Instrument Enclosures,Parts&Supplies 48249 Great Western Sanitary Supplies 89.99 Janitorial Supplies 48250 Westmark Sales,IncJGLI Intl./Hach Co. 3.378.00 Instrument Supplies Page 5 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 49251 Hach c/o Parton Industries 179.63 Lab Parts&Supplies 48252 American Sigma,Inc. 462.51 Lab Parts&Supplies 48253 Harold Primrose Ice 74.00 Ice For Samples 48254 Harrington Industrial Plastics,Inc. 115.35 Plumbing Supplies 48255 Hasco Oil Co.,Inc. 186.95 Lube Oil 48256 Hatch&Kirk,Inc. 2,699.84 Engine Generator Contrd Supplies 48257 Hilti,Inc. 4,909.70 Mechanical Parts&Supplies 48258 Home Depot 85.69 Small Hardware 48259 Hopkins Technical Products 42.72 Mechanical Pads&Supplies 48260 Horizon Technology 1,478.27 Lab Parts&Supplies 48261 Hub Auto Supply 37.77 Truck Parts 48262 Idexx 1,336.10 Lab Parts&Supplies 48263 Industrial Distribution Group 1,069.50 Mechanical Pans&Supplies 48264 Industrial Threaded Products,Inc. 14.96 Mechanical Parts&Supplies 48265 Information Handling Services 2,870.00 Software Maintenance Agreement 48266 Information Resources 250.00 Human Resources Service 48267 Inorganic Ventures,Inc. 231.95 Lab Parts&Supplies 48268 Inside CAL/EPA 635.00 Subscription 48269 Insight Direct USA,Inc. 11,150.70 (4)Printers 48270 Interstate Battery Systems 297.06 Batteries 48271 Irwensys Systems, Inc. 3,192.64 Instrument Supplies 48272 Iron Mountain 150.02 Bid Document Storage Fees-P1-37&J-39 48273 Iron Mountain Off-Site Data Protection 237.71 OBshe Back-Up Tape Storage for NT Server 48274 Irvine Ranch Water District 58.42 Water Use 48275 tsco,Inc. 651.30 Lab Parts&Supplies 48276 IBM Corp. 2,614.50 Maintenance Agreement-IBM 3570 Megstar Magnetic Tape System 48277 ISI,Inc. 1,663.80 Service Agreement-Communication Equipment 48278 J.G.Tucker and Son,Inc. 3.161.88 Instrument Supplies 48279 Jamison Engineering Contractors,Inc. 2,156.58 Construction-Repair 3"Waledine at Pit. 1 Admin.Parking Lot 48280 Jays Catering 655.72 Meeting Expenses 48281 Johnstone Supply 324.01 Mechanical Pans&Supplies 48282 Kalmar Promotions 658.75 Printing 48283 Kelly Paper 112.04 Paper 48284 Kfome Professional Staffing 23,980.41 Temporary Employment Services 48285 KL&P Marketing 304.29 Safety Incentive Items 48286 KW Communications Consulting 1,143.75 Professional Services-Community Outreach Program 48287 Lab Support 4,982.75 Temporary Employment Services 48288 Lessors in Leadership 3.696.00 O&M Training Registration 48289 Lifecom-Safety,Inc. 385.61 Safety Supplies 48290 Maintenance Technology Corp. 519.86 Mechanical Supplies 48291 Manatt,Phelps&Phillips,L.L.P. 15,D00.00 Strategic Planning&Advocacy 48292 Arthur Marcotte 1,267.15 Medical Insurance Overpayment 48293 MarVac Electronics 17.46 Electrical Pans&Supplies 48294 MassMulual Michel Financial Group 1,241.30 Executive Disability Plan Premium 48295 Matrix Service Corp. 8.5D3.00 Repairs&Maintenance-Lev Pressure Gas Holder at Plant 2 48296 Mc Junkin Corp. 37.60 Plumbing Supplies Page 6 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 40297 McMaster-Carr Supply Co. 2,739.91 Mechanical Parts&Supplies 48298 MCRay IndusMes.Inc. 4,495.40 Stainless Steel Tank 48299 Mission Uniform Service 4,302.28 Uniform Rentals 48300 MDS Consulting 1,890.00 Prof.Services-Surveying Various Capital Projects 48301 National Plant Services, Inc. 440.00 Vacuum Truck Services 48302 City of Newport Beach 9.37 Water Use 48303 Nextel Communications 3,428.58 Cellular Phones&Air Time 48304 The Norco Companies 312.00 Mail Delivery Service 48305 Norms Refrigeration 158.05 Electrical Parts&Supplies 48306 Northam Tool&Equipment Company, Inc. 952.32 Generator 48307 Nu-Way Laser Engraving 26.75 Steel Tags 48308 Once Depot Business Services Div. 1,552.13 Office Supplies 48309 OneSourca Distributors,Inc. 164.23 Electrical Parts&Supplies 48310 Orange County Hose Company 26.93 Hose 46311 Orange County Vector Control District 2.666.62 Past Control 48312 Orange Fluid System Technologies, Inc. 661.35 Plumbing Supplies 48313 Oxygen Service Company 2,013.43 Specialty Gases 48314 P.L.Hawn Company.Inc. 657.28 Electrical Supplies 48315 Pace Analytic Services 1,300.00 Lab Analyses of Wastewater&Blosolids 48316 Pacific Bell 1,224.42 Telephone Services 48317 Pacific Bell Internet Services 328.93 Internet Service 48318 Pacific High Reach,Inc. 3,456.46 Aerial Lift Rental 48319 Pacific Institute 100.00 Membership 48320 Pacific Mechanical Supply 45B.90 Plumbing Supplies 48321 Pacific Parts&Controls 3,416.34 Electrical Supplies 48322 Parker Motion&Controls Sales 215.26 Mechanical Parts&Supplies 48323 Parker Supply Company 9,557.36 Mechanical Parts&Supplies 48324 Parsons Engineering Science,Inc. 1,807.08 Engineering Services JA2 48325 Partners Consulting Services 23.340.00 Help Desk Consulting Services 48326 Parts Unlimited 361.63 Truck Supplies 48327 Paul Pill 4,575.00 Professional Services J-87 48328 Peed Art&Craft Supplies of California 72AI Graphic Supplies 48329 Peerless Wiping Materials Co. 536.06 Janitorial Supplies 48330 The Perkin Elmer Corp. 495.45 Lab Parts&Supplies 48331 Pixelpushem,Inc. 18,931.00 Professional Services-Design&Construct Internet Site 48332 Pre Padd Legal Services,Inc. 523.25 Employee Legal Service Insurance Premium 48333 PCS Express 220.00 Courier Service 48334 R.F.MacDonald Co. 2.676.83 Motor 48335 Rainbow Disposal Co. 2.300.12 Trash Removal 48336 Reallime Systems Corporation 10.999.97 Professional Services-Software Revision 48337 Regents of Univ.of California 2,070.49 Professional Services J-85 48338 Ryan Herco Products Corp. 725.99 Pump Supplies 48339 RBF Engineers 5.379.09 Engineering Services 2-24-1 48340 RM Controls 63.19 Instrument Supplies 48341 RPM Electric Moors 268.30 Motor 40342 RS Hughes Co..Inc. 419.16 Paint Supplies Page 7 of 12 EXHIBIT B Claims Paid From IW16/02 to 10/31/02 Warrant No. Vendor Amount Description 48343 Safety Storage,Inc. 1.608.89 Doors 48344 Safetycare,Inc. 237.05 Safety Video 48345 Sancon Engineering,Inc. 3.045.00 Construction-Ainvent Manhole Dewalering&Mineral Deposit Cleaning 48346 Santa Ana River Flood Protection Agency 1,400.00 Annual Was 48347 Schreiber Corporation - 7,500.00 3 MGD Fuzzy Filler Test Unit 48348 Schwing America,In. 100.07 Pump Supplies 48349 Science Applications Ing.,Corp. 4.557.51 Professional Services Pl-85 48350 Seal Beach Chamber of Commerce 220.00 Tent Rental 48351 Seavisual Consulting,Inc. 7,560.00 Professional Services-Ocean Oulfall Instrumentation 48352 Shamrock Supply Co.,Inc. 1,849.06 Safely Supplies 48353 Shimadzu Scientific Instruments,Inc. 1,293.00 Hazardous Disposal Service 48354 Shureluck Sales&Engineering 366.46 Mechanical Parts&Supplies 48355 Sigma-Aldrich, Inc. 668.75 Lab Parts&Supplies 48355 SoflChoice 4.226.28 Software 48357 South Coast Air Quality Management Dist. 5,150.00 Annual Emission,Operation&Misc.Permit Fees 48358 Southern California Edison 31 AS Power 48359 Sparkle6s 1,639,06 Drinking Water/Cooler Rentals 48360 Spey Ceniprep,Inc. 1.170.05 lab Parts&Supplies 48361 Stanley Steamer International,Inc. 1,534.55 Carpet Cleaning Services 48362 Steven Enterprises,Inc. 586.77 Stationery&Office Supplies 48363 Strata International,Inc. SWAS Chemicals 48364 Strategic Diagnostics,Inc. 915.94 Software 48365 Summit Steel 346.23 Metal 48366 Sunset Ford 362.16 Vehicle Supplies 48367 Sunset Industrial Pans 1,658.26 Mechanical Supplies 48368 Symcas-TSG 1,384.18 Maintenance Agreement-SCADA System 48369 SAWPA 3,000.00 Santa Ana River Watershed Group-Other Agencies Contribution 48370 SETAC 630.00 Compliance Meeting&Training Registration 48371 SPX Valves&Control 2,594.09 Valves 48372 Target Specialty Products 85.69 Insecticide 40373 The Orange County Register 144.96 Notices&Ads 48374 Thompson Industrial Supply,Inc. 491.76 Mechanical Supplies 48375 Daily Pilot 50.00 Notices&Ads 48376 The Trans Company 273.19 Electrical Supplies 48377 Tropical Plaza Nursery. Inc. 923.07 Contract Groundskesping MO 5.11-94 48378 Truck&Auto Supply,Inc. 24.27 Automotive Supplies 48379 Truesdell Laborelodes. Inc. 150.00 Lab Services 48300 TCH Associates,Inc. 7,125.28 lab Supplies 48381 Teksyslems 18,600.00 Temporary Employment Services 48382 US Filter Corporation 1,282.75 Service Agreement-Lab Purification System 48383 Undergmund Service Alert of So.Calif. 325.00 Underground Mileage Charges 48384 United Paroal Service 782.36 Parcel Services 48385 Defame Finance and Accounting 6,193.15 Professional Services J-85 48388 Universal Specialties, Inc. 1.065.37 Mechanical Parts&Supplies 48367 University of Washington 640.00 0&M Training Registration 48388 USC-TRG Conference on Blofitiration 350.00 Air Quality Meeting Registration Page 8 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amours Description 48389 The Vantage Group,L.L.C. 20,852.00 Temporary Employment Service 48390 Varian Associates,Inc. 1,038.88 Lab Parts&Supplies 48391 Verizon California 4,077.44 Telephone Services 48392 Vocam USA,L.L.C. 357.65 Safety Video 4B393 Vortex Industries,Inc. 374,10 Door Repair 48394 V WR Scientific Products Corporation 9,59B.73 Lab Pans&Supplies 48395 The Wackenhut Corporation 9,552.97 Security Guards 48396 Weber Scientific 169.50 Lab Supplies 48397 Westport Apamtus DBA Breaker Supply 128.68 Electrical Parts&Supplies 48398 Xerox Corporation 1,021.03 Copier Leases 48399 XESyslem,Inc 550.50 Office Supplies 48400 3T Equipment Company 211.80 Mechanical Parts&Supplies 48401 Shabbir S.Bassi 100.21 Meeling/fraining Expense Reimbursement 48402 Mark A.Esquer 164.00 Meetinglfraining Expense Reimbursement 48403 Ingrid G.Hellebrand 448.69 Meetingrriaming Expense Reimbursement 48404 Mike J.Henere 186.12 Meeting/7raming Expense Reimbursement 48405 John H.Lin 1,330.86 Meeting/Training Expense Reimbursement 48406 David A.LucW n 1,162.64 Meeting/Training Expense Reimbursement 48407 Michael D.Moore 309.00 Meeling/radning Expense Reimbursement 48408 Fred J.O'9den 710.65 Meelingrriaming Expense Reimbursement 40409 Simon L.Watson 175.00 Meeting?ralnirg Expense Reimbursement 48410 William F.Webster,Jr. 1.387.91 MeelingfTrainingt Expense Reimbursement 48411 Advance Tech Plating 51.85 Reconciliation User Fee Refund Program 48412 Air Industries 11.43 Reconciliation User Fee Refund Program 48413 Ambriz,Jose 1,559.56 Employee Computer Loan Program 48414 American Circuit Technology 529.03 Reconciliation User Fee Refund Program 48415 Anaheim General Hospital 100.03 Reconciliation User Fee Refund Program 48416 Black Oxide Industries 109.65 Reconciliation User Fee Refund Program 48417 Bright Armor Plating 499.78 Reconciliation User Fee Refund Program 48418 Burrows Ind.IMinuteman 3,013A1 Reconciliation User Fee Refund Program 48419 California Consolidated Water 7.830.55 Reconciliation User Fee Refund Program 48420 Calif.Consolidated Water Purification 1,693.52 Reconciliation User Fee Refund Program 48421 California Custom Shapes,Inc. 453.27 Reconciliation User Fee Refund Program 48422 Cargill,Inc. 3.442.50 Reconciliation User Fee Refund Program 48423 Century Laminators 2.544.35 Reconciliation User Fee Refund Program 48424 Copper Clad Mullilayer Product 2,191.43 Reconciliation User Fee Refund Program 48425 County of Orange-Auditor Controller 1.095.00 Sewer Service Fee Administration 48426 Crest Coatings 578.57 Reconciliation User Fee Refund Program 48427 CMAA 170.00 Engineering Meeting Registration 48428 Electronic Precision 1,521.47 Reconciliation User Fee Refund Program 48429 Employee Activity Committee 160.00 Meeting Expenses 48430 Future Technology 1,749.36 Reconciliation User Fee Refund Program 48431 Harry s Dye&Wash,Inc. 16,282.85 Reconciliation User Fee Refund Program 48432 Hunlington Gardens Center 107.77 Reconciliation User Fee Refund Program 48433 Imperial Plating 37.42 Reconciliation User Fee Refund Program 48434 Intec Products,Inc. 825.51 Reconciliation User Fee Refund Program Page 9 of 12 EXHIBIT 8 Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 48435 International Food Solutions,Inc. 2,323.81 Reconciliation User Fee Refund Program 48436 Kodak Processing Labs 2,813.09 Reconciliation User Fee Refund Program 48437 KCA Electronics,Inc. 10,059.35 Reconciliation User Fee Refund Program 48438 La Palma Intercommuniry Hospital 168.26 Reconciliation User Fee Refund Program 48439 Voided Check - - 48440 Micrometals,Inc. 11,980.27 Reconciliation User Fee Refund Program 48441 Orange County Sanitation District 1,851.10 Petty Cash Reimb. 48442 Packard-Hughes Interconnect 2,146.24 Reconciliation User Fee Refund Program 48443 Pepsi-Cola Bottling 4,4D5.22 Reconciliation User Fee Refund Program 48W Plegel Oil Company 224.01 Reconciliation User Fee Refund Program 4S445 Prima-Tex Industries 307.19 Reconciliation User Fee Refund Program 48446 Procter&Gamble 19,994.29 Reconciliation User Fee Refund Program 48447 Quality Aluminum Forge,Inc. 77.56 Reconciliation User Fee Refund Program 48448 RBC Transport Dynamics 2,074.66 Reconciliation User Fee Refund Program 48449 Scientific Spray Finishes 52.16 Reconciliation User Fee Refund Program 48450 Simpson,Albert 1,525.18 Employ"Computer Loan Program 48451 Speedy Circuits,FadlBy 1,108.44 Reconciliation User Fee Refund Program 48452 Sunclipse,Inc. 23,589.40 Reconciliation User Fee Refund Program 48453 SB Thomas 8,957.76 Reconciliation User Fee Refund Program 48454 Tayco Engineering 7,928.48 Reconciliation User Fee Refund Program 48455 Voided Check - - 48456 Villa Park Orchards Assoc. 5,596.74 Reconciliation User Fee Refund Program 48457 Western Yam Dyeing,Inc. 311.93 Reconciliation User Fee Refund Program 48458 Wild Rivers Waterpark 1,292.00 Reimbursable Employee Activity Expense 48459 Wineries 3,731.04 Reconciliation User Fee Refund Program 48460 Adams/Mallory Construction Co.,Inc. 104.950.60 Construction J-80,Retention 48461 Margate Construction,Inc. 82,504.00 Construction P2.85.1,Retention 48462 Orange Counly Sanitation District 537,461.52 Payroll EFT Reimbursement 48463 Orange County Water District 275,063.71 GWRS Joint Project J-36 48464 Southern California Edison 81,7D8.50 Power 48465 Airgas Safety 414.16 Safety Supplies 48466 Allied Packing&Rubber,Inc. 178.62 Mechanical Supplies 48467 AMSA 1,350.00 Source Control Training Registration 48468 American Telephone&Telegraph Corp. 42.33 Telephone Service 48469 AT&T Wireless Services-Airtime 3.732.83 Cellular Telephone Service 48470 California Industrial Supplies 331 Al Electrical Parts&Supplies 48471 Condition Monitoring Solutions 20,458A7 Rotalign Pro Laser Shaft Alignment System 48472 Consolidated Elect.Distributors,Inc. 224.09 Electrical Supplies 46473 Consumers Pipe&Supply Co. 489.73 Plumbing Supplies 48474 Corporate Express 2,571.14 Office Supplies 48475 OWEA Membership 92.00 Membership-Calif.Water Environment Assoc. 48476 Employee Benefits Specialists,Inc. 8,321.31 Reimbursed Prepaid Employee Medical&Dependent Care 48477 Franchise Tax Board 464.07 Wage Garnishment 48478 City of Huntington Beach 15,598.21 Water Use 48479 Imark Communications,Inc. 3.980.00 Information Technology Training Registration 48480 International Institute for Learning 90.17 Professional Services-RACI Diagram Wall Chart Page 10 of 12 EXHIBIT B r' Claims Paid From 101`16102 to 10/31/02 Warrant No. Vendor Amount Description 48481 Jamison Engineering Contractors,Inc. 12,015.00 Construction-Fire Closet with Fire Rated Doors for Nitrogen Tanks 48482 Johnson&Associates,L.L-C. 1,48.78 Professional Services-Compensation&Classification Study 48483 McMaster-Can Supply Co. 4,048.22 Mechanical Parts&Supplies 48484 Midway Mfg&Machining Co. 1.917.98 Mechanical Repairs 48485 MMC, Inc. 21.412.10 Consl.-Ventilation Sys. Upgrades-Main St.Pump Sir.,Retention 48486 National Bond&Trust 1.512.66 U.S.Saving Bonds Payroll Deduction 48487 City of Newport Beach 71.05 Water Use 48488 Orange County Sheriff 45.00 Wage Garnishment 48489 Orange Fluid System Technologies, Inc. 2,484.84 Plumbing Supplies 48490 OCEA 524.61 Dues Deduction 48491 Pacific Bell 18.44 Telephone Services 48492 R&R Instrumentation,Inc. 1,607.57 Instrument Supplies 48493 Reliastar 17,957.50 Employee Basic Life Insurance Premium 48494 Smardan Supply Company/Orange Coast 293.38 Plumbing Supplies 49495 Southern California Water 96.09 Water Use 48496 Summit Steel 574.86 Metal 48497 SAWPA 3.000.00 Santa Ana River Watershed Group-Other Agencies Contribution 48498 Thompson Industrial Supply,Inc. 339.60 Mechanical Supplies 48499 Union Bank of California 3,682.13 Banking Services 48500 The Unisource Corporation 8,163.91 Office Supplies 48501 United Way 205.00 Employee Contributions 48502 Verb= 3,068.03 Software Maintenance Agreement 48503 Verizon California 805.24 Telephone Services 48504 Xerox Corporation 161.63 Fax Machine 48505 Jose C.Ambriz 277.95 Meeting/Training Expense Reimbursement 48506 David Andrade 128.99 Meetingriraining Expense Reimbursement 48507 Jeffrey L.Armstrong 744.04 Meeting/Training Expense Reimbursement 48508 Brian Bingman 2,092.39 Meefing/Training Expense Reimbursement 48509 Thomas M.Blanda 1,250.84 Meeting/frainirg Expense Reimbursement 48510 Leandre P.Catacutan 972.98 Meeting?raining Expense Reimbursement 48511 David M.Chafe 355.91 Meetirg/fmining Expense Reimbursement 48512 George R.Crawford 489.93 Meelirg/fraining Expense Reimbursement 48513 Timothy D.Foley 244.10 Meeting/frainirg Expense Reimbursement 48514 Victoria L.Henn 104.64 Meeting?raining Expense Reimbursement 48515 Victor R.Hemlelin 256.70 Meeting/framing Expense Reimbursement 48516 Luis A.Marta 373.91 Meeting/fmining Expense Reimbursement 48517 Michael J.MCCusker 356.89 Meating?reining Expense Reimbursement 48518 Daniel R.Miranda 346.67 Meetingfrmining Expense Reimbursement 48519 Roy Pamw 363.58 Meeting/fraining Expense Reimbursement 48520 William F. Pierce 179.52 Meeting/fmining Expense Reimbursement 48521 Alan D.Ralph 388.17 Meeting/fmining Expense Reimbursement 48522 Michael Reideler 159.57 Meeting/fmining Expense Reimbursement 48523 Adnana Renescu 998.68 Meeting/Treining Expense Reimbursement 48524 Mahin Telobi 730.72 MeetingRreining Expense Reimbursement 48525 Mary S.Thompson 206.78 Meeling/fraining Expense Reimbursement 48526 Walter W-Williams 256.29 Meeling/fraining Expense Reimbursement Page 11 of 12 EXHIBIT B Claims Paid From 10/16/02 to 10/31/02 Warrant No. Vendor Amount Description 48527 Ken H.Wong 452.21 Meeling/fralning Expense Reimbursement 48528 Reid Metal Finishing 426.30 Reconciliation User Fee Refund Program 48529 Unocal Corporation 2,434.03 Reconciliation User Fee Refund Program Total Payroll Dlsbursemerds $ 9,560,270.69 Payroll Disbursements 27895-28025 Employee Paychecks $ 178.030.83 Biweekly Payroll 10/16/02 28026-28026 Interim Paycheck 7,693.64 Termination Paycheck 28027-28127 Employee Paychecks 100,293.12 Biweekly Payroll 10/30/02 28128-28129 Intedm Paychecks 567.64 Reissue Stale Dated Check&Adjustment 77840-78313 Direct Deposit Statements 824,641.46 Biweekly Payroll 10/16102 78314-78786 Direct Deposit Statements 843,047.56 Biweekly Payroll 10/30/02 Total Payroll Disbursements $ 2,014,274.25 Wire Transfer Payments Slate Street Bank&Trust Co.of CA,N.A. $ 247,764.00 October Interest Payment on Series 2000 Certificates of Participation Chase Manhattan Bank 75 575.23 Commitment Fee on Series 2000 Cedifcales of Participation Total Wire Transfer Payments 323.339.31 Total Claims Paid 10/16/02-10131/02 $11,897,884.25 Page 12 of 12 EXHIBIT B ` " -' BOARD OF DIRECTORS MeebngDate Tom.orDtr. lr/zoioz AGENDA REPORT iem Number Iem 9Number (a)(a) Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael D. White, Risk Manager SUBJECT: SUMMONS & COMPLAINT RE EMILIO ARISTON V. ORANGE COUNTY SANITATION DISTRICT. GENERAL MANAGER'S RECOMMENDATION Receive and file summons and complaint re Emilio Ariston v. Orange County Sanitation District, Orange County Superior Court Case No. 02CC16686, and authorize General Counsel to appear and defend the interests of the District. SUMMARY Please see attached memo dated 11/12/02 from General Counsel. BUDGET IMPACT ❑ 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 ALTERNATIVES CEQA FINDINGS ATTACHMENTS Memo from General Counsel. GGS:MW:BG Page 1 T LAW OFFICES OF WOODRUFF, SPRADLIN & SMART A PROFESSIONAL CORPORATION MEMORANDUM TO: Chair and Members of Board of Directors Orange County Sanitation District FROM: General Counsel DATE: November 12, 2002 RE: Emilio Ariston v. Orange County Sanitation District Orange County Superior Court Case No. 02CC16686 On November 6, 2002, the above-entitled litigation was served upon the District by District employee Emilio Ariston alleging discrimination and retaliation related to employment opportunities. This matter originates from charges of discrimination previously filed by Mr. Ariston in 1998 with the Equal Employment Opportunity Commission, who later referred the case to the Department of Justice for resolution. On September 16, 2002, the Department of Justice determined that it would not file suit and issued its "Right to Sue" letter to Mr. Ariston. It is recommended that the matter be referred to Office of General Counsel for defense of the District's interests. ,2 THOMAS L.WOODRUFF GENERAL COUNSEL TLW:oi cc: Mr. B.P. Anderson Mr. G.G. Streed Ms. L. Tomko Mr. M.D White Mr. R. Geggie mends a DRAFT MINUTES OF STEERING COMMITTEE MEETING Wednesday, October 23, 2002 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 23, 2002 at 5 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Thomas L.Woodruff, General Counsel Shirley McCracken, Chair Don Hughes Steve Anderson, Vice Chair Joan Irvine Smith Pat McGuigan, Chairman, OMTS Committee Ryal Wheeler Russell Patterson, Chairman, PDC Committee Mike Moore Brian Brady, Chairman, FAHR Committee Don Schultz North Eckenrode, Past Board Chair Bob Costin Randy Fuhrnan Directors Absent Jim Silva, County Supervisor STAFF PRESENT: Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services David Ludwin, Director of Engineering Bob Ooten, Director of Operations and Maintenance Sonja Wassgren, Sr. Admin.Analyst, Communications Jim Colston, Senior Regulatory Specialist Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) RECEIVE. FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 25, 2002 Steering Committee meeting were approved as drafted. (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken reported on the January 2003 CASA Mid-year conference that will be held in Palm Springs between January 15 and 18. There will be an Urban Runoff Ad Hoc Committee meeting on November 21. Chair McCracken recognized Russ Patterson's contributions as he leaves the Board next month. (6) REPORT OF THE GENERAL MANAGER A. Orange County Infrastructure Report Card General Manager Blake Anderson made a presentation on the Orange County Infrastructure Report Card, which was the subject of a roll-out on October 10. Sewers and wastewater received a C+. Taken separately, wastewater received a B+and sewers an overall grade of C-. Overall, the District is in good shape but the County's sewers are suffering from age and grease buildup. Chair McCracken suggested working with the cities to provide assistance. A coordinated effort will be required to correct some of the deficiencies. B. GW RS Agreement and Amended Budget This agreement is on the Board agenda for approval. Mr.Anderson reported that the JCC unanimously approved the agreement in September and in October all three working committees heard reports on the agreement and the amended budget. The PDC Committee forwarded the agreement to the full Board with a recommendation to approve it,though it took no action on the amended budget. Last Wednesday,the Water District Board approved the agreement on an 8-1 vote. He mentioned that start-up of the project is estimated to be Spring 2007 and that the fully-escalated budget with contingency funds is now estimated to be$453 million, up from the late 2000 estimate of$352 million. A detailed presentation will be presented at the Board meeting. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff did not make a report. (8) DISCUSSION ITEMS (Items A-E) A. Advocacy and grant-seeking activities in Washington. DC Mr. Anderson reported on the District's involvement in advocacy groups, mainly AMSA and CASA. In the last few years, our Washington representative, Eric Saperstein, has been working on several regional issues and grants. There is now a need for a far more larger effort to achieve our two major objectives: ensuring that EPA will give us reasonable time to achieve secondary treatment standards and receiving federal funding. Bob Ghirelli, Director of Technical Services, explained how we plan to move forward. The District will not seek a language change in the Clean Water Act during this session of Congress. Mr. Saperstein and John Freshman will be meeting with the Steering Committee at a special meeting on November 7,2002 between 3 and 5 p.m., prior to the PDC Committee meeting. They will discuss their plans on how to roll out these initiatives to the congress in the January through March time frame. Y Minutes of the Steering Committee Page 3 .r October 23, 2002 B. Status of Ocean Permit Application and Negotiation Process Bob Ghirelli and Jim Colston provided an overview of the draft application and the timeline for review. The first draft is being presented to the Directors to provide an opportunity to comment and make suggestions before approving the application in November and submitting the application to EPA in the early part of December. C. Proposed Principles of Agreement between SAWPA and OCSD Blake Anderson reported that SAWPA is still about$3 million in arrears for engineering work on the SARI protection and relocation project He announced that SAWPA has submitted a proposal letter that stated it would pay the outstanding invoices conditional upon our entering into negotiations for SAWPA purchasing the upper portion of the SARI line. There were nine deal points outlined and reviewed by Mr.Anderson and the general manager of SAWPA. These are being reviewed by staff. The Directors were asked to comment on this proposal, which would require moving flow from the SARI line to a new line through Yorba Linda. SAWPA would end up with sole responsibility for the upper portion of the SARI line and the District would be responsible for the new line. The Committee directed the general manager to put SAWPA on notice that they must be in complete compliance with the terms of the existing agreement and that their invoices are paid to our satisfaction before any further transfer of ownership discussions proceed. They also wanted to see a list of what obligations SAWPA has and which are outstanding. D. The Agenda Items scheduled to be reviewed by the Board's working committees in November were reviewed. Mr. Ghirelli reported that staff was prepared to make a report on the Huntington Beach Phase III study but the research team and the peer review panel have not submitted their findings and have indicated that it will be January before they are complete. The Directors directed staff to make the presentation when the information was complete E. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. There were no questions. (9) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. (10) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (11) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (12) CONSIDERATION OF UPCOMING MEETINGS There will be a Special Steering Committee meeting on Thursday, November 7 beginning at 3 p.m. The next Steering Committee meeting is scheduled for Wednesday, November 20, 2002 at 5 p.m. Y Minutes of the Steering Committee !� Page 4 October 23, 2002 r The next Board Meeting is scheduled for Wednesday, November 20,2002 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:22 p.m. in Closed Session, pursuant to Government Code Section 54956.9, to discuss an existing matter of litigation entitled; Orange County Sanitation District at al., vs. Kem County at al. Minutes of the Closed Session are on file with the Board Secretary. Confidential Minutes of the Closed Session held by the Steering Committee have been prepared in accordance with 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. There was no reportable action taken by the Steering Committee. At 6:40 p.m.,the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:40 p.m. Submitted by: Je Tappan S ring Committee Secretary GMVJbWuMISYN'i0 Cbm,bNl@IMIYLtOP SU'MSuaEx I � I DRAFT MINUTES OF SPECIAL STEERING COMMITTEE MEETING Thursday, November 7, 2002 A special meeting of the Steering Committee of the Orange County Sanitation District was held on Thursday, November 7, 2002 at 3 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Thomas Nixon, General Counsel Shirley McCracken, Chair Eric Sapirstein Steve Anderson, Vice Chair John Freshman Pat McGuigan, Chairman, OMTS Committee Larry Porter Russell Patterson, Chairman, PDC Committee Randy Fuhrman Brian Brady, Chairman, FAHR Committee Eileen Murphy Norm Eckenrode, Past Board Chair Mike Moore Chandra Johannesson Directors Absent Laura Ann Davick Jim Silva, County Supervisor STAFF PRESENT: Blake Anderson, General Manager Bob Ghirelli, Director of Technical Services Gary Screed, Director of Finance Sonja Wassgren, Communications Analyst Jean Tappan, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBUC COMMENTS Larry Porter and Eileen Murphy both asked the Committee members to continue towards full secondary treatment. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Shirley McCracken did not make a report. Minutes of the Special Steering Committee Page 2 _ November 7, 2002 (5) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson did not make a report (6) REPORT OF GENERAL COUNSEL Counsel Tom Nixon did not make a report. (7) DISCUSSION ITEMS (Items A-D) Before beginning discussion on the listed items, Blake Anderson said that staff would be presenting a review of activities here in California as well as Washington, DC since the July 17 decision to move to secondary treatment standards, what possibilities there are for federal funding of some of the efforts and how the context of the federal Clean Water Act and prior federal grant funding for wastewater treatment upgrades can be instructive on how best to proceed. He introduced Eric Sapirstein and John Freshman, our lobbyists in Washington, DC, who then gave brief biographical statements. Bob Ghirelli, Director of Technical Services, gave a brief overview of staff activities since July 17. The Engineering Department is reviewing all of the planned CIP projects and anticipated projects required to meet the new 30/30 level of treatment and will be presenting a final report to the Directors in March. The disinfection program is up and running. For the past month the regulatory goals have been met as well as our stated goal of meeting AB411 standards at the end of the ouffall. At the same time Operations is ramping up the level of secondary. The draft NPDES permit application was presented to the Directors for comment and the final application will be presented to the Board at its November 20 meeting before submitting to EPA the first part of December. Staff continues to meet with the regulators on the terms and conditions of the permit. The agreement should be finalized in May or June, after the CIP planning program Is completed. AB1969 was passed that changed the law to allow a 10-year schedule for construction of the necessary facilities without penalty as long as we adhere to the schedule. Staff is working on obtaining the same assurances from EPA. Mr. Ghirelli also mentioned that a key component will be to seek grant funds from EPA. Messrs. Sapirstein and Freshman will be assisting the District in this effort. They met with several departments today to get an overview of the ongoing initiatives. A. Washington Update Mr. Sapirstein reported that with the help of three members of the Orange County delegation (Cox, Rohrbacher and Sanchez) report language has been included in the EPA spending bill endorsing the course of action the District is taking and informing EPA that they should work with the District to avoid penalties as we move voluntarily towards meeting secondary treatment standards. Mr. Sapirstein said that the Clean Water Act never anticipated an agency moving away from a waiver voluntarily. B. Authorization and Funding Options for Secondary Treatment Mr. Freshman first addressed the concern expressed by members of the environmental community that our efforts might be directed towards amending the Clean Water Act(CWA) and somehow undercut it. Mr. Freshman made It very dear that the direction he has received from the Sanitation District is to not amend the CWA at this time. That is because of the positive assurances that we have received from EPA that punitive fines are not what they have in mind for the Sanitation District. EPA staff and counsel have acknowledged that the y Minutes of the Special Steering Committee Page 3 November 7, 2002 Sanitation District's move to secondary is voluntary and for this reason E4P intends to give the Sanitation District every consideration for a reasonable compliance schedule. Nevertheless, he stated that under the unlikely situation that negotiations for an administrative order or consent decree accompanying our secondary treatment permit go horribly against he interests of the citizens of Orange County, then under that condition and that condition alone we would seriously contemplate seeking a very narrow amendment of the CWA to accommodate our need for protection against enforcement fines as we transition to secondary treatment standards. He gave a brief history of the Clean Water Act, which in the beginning provided grants and then moved to a loan program. In the early years of the Clean Water Grant Program, the federal government provided 75%grants amounting to$3-to$5 billion per year. In California, the state provided a 12 yz%grant, which implied that the local authority contributed only 12lA%to the cost of these facilities. In the 1980s, the Grant Program was scrapped in favor of a loan program. The Sanitation District did not avail itself of this program because of the red tape and because we could secure loans in the market that were comparable to what was available through the state revolving loan program. Around the rest of the country this was also true. There wasn't a lot of interest in the federal financing program since the change because agencies have been able to find lower cost funding. In the 90s, a Coastal Cities program was created to make grants to agencies that embarked on large programs. For example, Los Angeles City and Los Angeles County Sanitation District received sizable federal grants to upgrade their facilities to full secondary treatment under this program. Today,the Sanitation District is one of the largest"stragglers"for federal funding. There an equity argument that we can pursue. Basically, it's now Orange County's turn to receive what most large agencies in the country have received in the last 30 years of federal clean water grants. C. Legislative Strategy for Pursuing Federal Fundina The States and Territorial Assistance Grants program is now In effect that helps agencies that have a significant capital need. These grants live in the VA HUD-Independent Agencies appropriation bill that Congress passes every year as part of the normal budgeting process.. Mr. Freshman mentioned that the District should begin with an incremental process building on prior grants as a long-term strategy. By demonstrating our involvement in regional water/wastewater/watershed management projects, we could make the persuasive argument for an ecosystem restoration program. As our representatives they would help develop a five- year plan that will require packaging a comprehensive water and infrastructure picture to present to EPA. Blake Anderson mentioned that the cost for these consulting services, staff and board member trips and other expenses for a well-coordinated campaign to receive federal funding is estimated at$200,000 per year. Assuming up to five years to achieve significant federal funding, this implies$1 million of out-of-pocket expenses over and above staff time to participate In the effort. The projects that we hope to get on the list could be over$50 million. Or not. The question before the Steering Committee is: Are we willing to commit up to$1 million, spent incrementally over the next several years, with the hope but not the assurance of receiving federal funding support for our CIP? Minutes of the Special Steering Committee `I Page 4 November 7, 2002 �I D. Next Steps Mr. Sapirstein indicated that it is likely that we can get grant funding. The first step is to get included on the list of eligible projects. This will require active participation by the directors and staff in Washington with our delegation. He and Mr. Freshman will be setting up meetings. They will put together briefing materials and develop a target list of administrators and representatives. An advisory motion was moved, seconded and approved to request staff to move forward with the consultants in developing a short-term strategy for securing grant funding. An action item will be on the November Steering Committee and Board meetings agendas. This will include an estimate of the amount of grant assistance available, and an authorization to establish a budget for this purpose for Calendar Year 2003 covering Fiscal Years 02-03 and 03-04 (8) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There was no other business discussed. (9) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (10) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (11) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, November 20, 2002 at 5 p.m. The next Board Meeting is scheduled for Wednesday, November 20, 2002 at 7 p.m. (12) CLOSED SESSION There was no closed session. (13) ADJOURNMENT The Chair declared the meeting adjourned at 4:40 p.m. Sub fitted by: Jea appan Stebdng Committee Secretary Q'Ixy.CeepaMeWaeNw Canm#IeeO2V.bN1l%035px41 MCNYpI1IWOr5petl.45L M4wlex0x STEERING COMMITTEE MNUng Date To Bd.of Dtr. 11/20/02 11/20/U2 AGENDA REPORT Iem Number Item Number 11(d Orange County Sanitation District FROM: Robert Ghirelli, Director of Technical Services Originator: Michael D. Moore SUBJECT: Federal Legislative Advocacy to Secure Federal Grant Money for Secondary Treatment GENERAL MANAGER'S RECOMMENDATION (1) Establish a budget of$200,000 for federal legislative advocacy; and, (2)Authorize the General Manager to enter into a Consultant Services Agreement with ENS Resources, Inc. for a one year period, effective January 1, 2003 through December 31, 2003, providing for professional advocacy services for a total amount not to exceed $180,000, in a form approved by General Counsel. SUMMARY On November 7, 2002, staff was directed by the Steering Committee to pursue federal grant money to help pay for secondary treatment facilities. Following a presentation by the District's Washington, D.C., lobbyists—Eric Sapirstein (ENS Resources, Inc.) and John Freshman (John Freshman & Associates)—the Committee asked that an agenda item be placed on the November Steering and Board meeting agendas to consider a one year contract extension with Messrs. Sapirstein (prime contractor) and Freshman (subcontractor)for professional services related to legislative advocacy on behalf of the District. The consultants are presently under contract to the District, and the present agreement expires on December 31, 2002. The proposed contract will extend the contract for one year. PROJECT/CONTRACT COST SUMMARY This one year contract with Messrs. Sapirstein and Freshman is proposed for a total not to exceed cost of$180,000. The contract budget is allocated as follows: Professional Services (Sapirstein and Freshman) $180,000 OCSD Direct Costs (Estimated) 10,000 OCSD Travel (Estimated) 10,000 TOTAL Budget $200,000 `Out of Town Travel Subject to District Approval MDM:wh G:x .diAagendaYka,e Agenda eeccda=02 edam Agenda FepornMOZgen,n(c),"S 9eewmea.dx rt md: +vuro2(»n) Pagel Due to the complexity of this project and the need to pursue funding over multiple funding cycles, this may end up being a multi-year effort of up to five years. This contract request is for one year at a total not to exceed cost of$180,000. If a contract extension is necessary to extend these services beyond 2003, staff will seek the approval of the Board of Directors. 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) ADDITIONAL INFORMATION Since September 2002, the consultants have been working for the District on two fronts: pursuing legislative language in EPA's budget bill and laying the groundwork for developing a strategy to obtain grant funding. The first element is nearly complete: legislative report language is contained in the draft budget bill stating Congress' intent that EPA take a non-punitive approach in its permit negotiations with the District. Our lobbyists will be working in the coming weeks when Congress reconvenes to ensure the report language is contained in the final budget bill. The process of obtaining federal funding assistance will involve working with stakeholders in the community, the Orange County congressional delegation, and agency representatives. The consultants propose to begin the process by pursuing a grant through EPA's State and Tribal Assistance Grant (STAG) program. This program provides specific set aside funding for wastewater and related public infrastructure planning, design, and construction assistance. These grants typically range in amount from several hundred thousand dollars to as much as several million. Historically, California projects have averaged as much as a couple of million dollars in any one year. However, in cases where overwhelming need has been demonstrated, amounts as high as $50 million have been appropriated. These STAG grants are provided directly to municipalities and agencies for water and wastewater projects without state involvement. Because the District is seeking a larger grant share than is typically provided through the STAG program, the consultants propose to seek support for a separate funding package. At the Steering Committee meeting the consultants described a plan to develop an umbrella funding package covering a variety of"Ecosystem Restoration Projects"that have significant capital needs: • Achieving secondary treatment standards • Disinfection Project • GWRS Project • Urban Runoff Diversion Project • Dairy Washwater Project • Santa Ana River Watershed Initiatives • Beach Contamination Source Investigation Projects MDM:M G Mq.OUbgenOakB mAwM ReprclWW28-W AgenE Reg Ml IDNIem 11(c)ENS Rewu,c¢ dm Re.zaa I111.m2mm Page 2 t • Cooperative Projects Program The timeline for developing this program is roughly along these lines: • November through January: Develop legislative initiative • February: Secure legislative sponsors and introduce initiative • February through March: Submit formal budget request for FY 04 funding assistance as part of STAG program • March through May: Develop congressional testimony in support of budget request • March through July: Meetings with congressional delegation, appropriations and authorizing committees to advocate program and funding requests as well as key Administration officials in support of District initiatives • July through September: Work with delegation and appropriations committees to secure funding assistance during committee consideration of funding and House and Senate floor consideration A conservative estimate of the capital need for these and other environmental stewardship projects is $2 billion over the next 20 years. Staff is confident that a portion of this capital need can be offset by federal grants. ALTERNATIVES This contract is not necessary if the Board of Directors decides it does not want to pursue federal grant funding to help pay for the cost of secondary treatment. Staff recommends the District continue to utilize the other general advocacy services of Mr. Sapirstein's firm on a retainer basis as It has for the past four years. The cost of this retainer agreement is $4,000 per month. CEQA FINDINGS N/A ATTACHMENTS N/A MDM:wh G:Y,fttl pentls\BovEF nO Pep Q=B rd Aqn Mp k$I OPIIem 11(yfNS Rewurces.dm ReWWa mt<roe(. ) Page 3 a i MINUTES OF THE OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE Orange County Sanitation District Wednesday, November 6, 2002— 5 P.M. A meeting of the Operations, Maintenance and Technical Services Committee of the Orange County Sanitation District was held on November 6, 2002, in the District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: Directors Present: Staff Present: Pat McGuigan, Chair Blake Anderson, General Manager Don Bankhead Bob Ooten, Director of Operations & Maintenance Debbie Cook Bob Ghirelli, Director of Technical Services Tony Kawashima Mark Esquer, Process Engineering Manager Anna Piercy Mike Moore, ECM Manager Tod Ridgeway Nick Arhontes, Collection Facilities Manager Paul Walker Penny Kyle, Committee Secretary Shirley McCracken, Board Chair Steve Anderson, Board Vice Chair Others: Directors Absent: Randy Fuhrman Jan Vandersloot James M. Ferryman,Vice Chair (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Jan Vandersloot complimented the District for increasing the level of secondary treatment and expressed concern on the increased number of odor complaints the District has received. (4) REPORT OF THE COMMITTEE CHAIR Chair McGuigan briefly discussed the disposal of discarded computer components, cell phones and batteries,which is referred to as e-waste. It is becoming increasingly difficult to safely dispose these components as landfills will no longer accept these items as they are considered hazardous materials. r Minutes of the Operations, Maintenance and Technical Services Committee Page 2 November 6, 2002 (5) REPORT OF THE GENERAL MANAGER The General Manager had no report. (6) CONSENT CALENDAR ITEMS a. The minutes of the October 2, 2002 Operations, Maintenance and Technical Services Committee meeting were approved as drafted and ordered filed. b. OMTS02-65 Receive and file Technical Services Monthly Report, which focuses on regulatory, biosolids and performance measures for the Technical Services Department. C. OMTS02-66 Receive and file Operations& Maintenance Monthly Report, which focuses on compliance,financial data and performance measures for Operations and Maintenance Department. d. OMTS02-67 Recommend to the Board of Directors to: (1)Approve Change Order No. 3 to the contract with Kemiron Pacific, Inc. for Purchase of Ferric Chloride, Specification No. C-147, in the amount of$500,000, Increasing the total contract amount not to exceed $3,035,000, for the period ending November 30, 2002; and, (2) Renew the contract with Kemiron Pack, Inc.,for Purchase of Ferric Chloride, Specification No. 0-147,for a one-year period, December 1, 2002 through November 30, 2003, providing for an additional unit rate increase of$97 per dry ton, increasing the total unit price to $426.69, Including sales tax and delivery, for an estimated annual amount of $5,120,280. Motion: It was moved, seconded and duly carried to approve the recommended actions for items specified as 6(a)through (d) under Consent Calendar. (7) ACTION ITEMS a. OMTS02-68 Recommend to the Board of Directors to approve Amendment No. 1 to the Agreement for Management of Biosolids with Tule Ranch/Magan Farms, extending the contract term for one year, January 1, 2003 through December 31, 2003,with four additional one-year options,for an annual amount not to exceed $3,804,000. Mike Moore, Environmental Compliance Manager, briefly reported on the need for the extension of the biosolids contract until the Long-Term Biosolids Management Plan is developed. The plan,when adopted and implemented, will provide the strategy for managing the District's biosolids for the next five to 15 years. Motion: Moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Operations, Maintenance and Technical Services Committee Page 3 November 6, 2002 b. OMTS02-69 Recommend to the Board of Directors to: (1)Approve use of Sancon 100 and Sancon 200 Series polyurethane coatings as the District's standard spray-on coating material for manhole and pump station wetwell repairs and rehabilitation; and, (2) Authorize the General Manager to enter into a sole source Services Agreement with Sancon Engineering II, Inc., to provide coating and application services of Sancon 100 and Sancon 200 Series on an on-call basis for one year, with four one-year renewable options,for an annual amount not to exceed $300,000. Motion: Moved, seconded and duly carried to recommend approval to the Board of Directors. (8) INFORMATIONAL ITEMS (9) REPORT OF DIRECTOR OF INFORMATION TECHNOLOGY The Director of Information Technology was not present. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE Bob Ooten, Director of Operations and Maintenance, reported the efforts to have all existing secondary facilities operational by January 2003 should be met. He advised the Increased level of treatment has resulted in a reduction of suspended solids from 51 mg/L to 39 mg/L, and reduced the biochemical oxygen demand from 72 mg/L to 64 mg/L. Mr. Ooten also reported that the quarterly ocean sampling is underway. The results to date are indicating the bacterial levels are non-existent to extremely low. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Bob Ghirelli, Director of Technical Services, reported that the ocean permit application would be agendized for the November 2&board meeting to seek authorization to submit the application to the EPA and RWQCB. It was reported that the Washington, DC lobbyist would be attending a special meeting of the Steering Committee on November 7m to discuss obtaining grants to assist in additional treatment costs. Mr. Ghirelli reported that the quarterly ocean monitoring samples recently collected are showing good results. He noted that the District is operating under a modified permit issued in July 2002 by the RWQCB, which allows for the disinfection of the wastewater. The modified permit requires that recreational water quality standards that must be met from the surface to the bottom of the water column three miles out from shore. The previous permit only required compliance with the top ten feet of water. Minutes of the Operations, Maintenance and Technical Services Committee Page 4 November 6, 2002 (12) REPORT OF GENERAL COUNSEL General Counsel was not in attendance. (13) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15) CONSIDERATION OF UPCOMING MEETING The next Operations, Maintenance and Technical Services Committee meeting is scheduled for December 4, 2002 at 5 p.m. (16) CLOSED SESSION There was no closed session. (17) ADJOURNMENT The Chair declared the meeting adjourned at 5:50 p.m. Submitted by: Penny M.Kyle Operations, Maintenanc and Technical Services Committee Secretary G:1wp.dtaladmhBS10MTS1110602 draft minutes.cm OMTS COMMITTEE Mt In9Date To-It eas- 11/6/02 11/20/02 AGENDA REPORT Item Numiter Item Number oKT902-67 12fe) Orange County Sanitation District FROM: Robert J. Ooten, Director of Operations and Maintenance Originator. Mark Esquer, Process Engineering Division Manager Mark Dubois, Purchasing Manager Barbara Collins, Senior Analyst SUBJECT: PURCHASE OF FERRIC CHLORIDE, SPECIFICATION NO. C-147 GENERAL MANAGER'S RECOMMENDATION 1. Approve Change Order No. 3 to the contract with Kemiron Pacific, Inc. for Purchase of Ferric Chloride, Specification No. C-147, in the amount of$500,000, increasing the total amount not to exceed $3,035,000, for the period ending November 30, 2002; and, 2. Renew the contract with Kemiron Pacific, Inc. for Purchase of Ferric Chloride, Specification No. C-147, for a one year period, December 1, 2002 through November 30, 2003, providing for an additional unit rate increase of$97 per dry ton, increasing the total unit price to $426.69, including sales tax and delivery,for an estimated annual amount of$5,120,280. SUMMARY • Staff has historically improved the performance of the primary clarifier by adding ferric chloride and polymer. Chemical addition improves Suspended Solids (TSS) removal from 63% to 70% and Biochemical Oxygen Demand (BOD)from 32% to 41%. • With the decision to increase the level of treatment, staff has increased the chemical addition to the primary clarifiers to further improve the removal of TSS and BOD, which has increased to 76% and 43% respectively. The improved removal reduces the final effluent TSS and BOD, increases the capacity of the secondary treatment system and reduces the production of biosolids. • Staff is requesting an increase to the ferric chloride chemical contract from $2,535,000 to $3,035,000 to pay for the increased level of chemical usage on the present contract. • Additionally, staff is requesting the establishment of next years contract at an estimated amount of$5,120,280 at a unit price of$426.69 including sales tax and delivery. The contract increase is due to the use of additional chemical and an expected increase in chemical unit price. Increase in Current Contract • The chemical contract will be exceeded as a result of turning up the treatment levels to achieve higher quality effluent, including chemical addition to the primary clarifiers in response to the July 17, 2002 Orange County Sanitation District Board of Directors' passing of a resolution requiring the District to treat wastewater to secondary treatment standards. • This increase was not budgeted in the contract with the current chemical vendor (Kemiron Pacific, Inc.). Therefore, staff needs to increase the contract amount in order to pay for chemical usage. • The District competitively bid ferric chloride under Specification No. C-147. Ferric chloride is used as a coagulant to enhance primary sedimentation. The contract was awarded to Kemiron Pacific, Inc. for an amount not to exceed $2,535,000 for the contract period of December 1, 2001 through November 30, 2002. • Staff is requesting an increase in the contract of$500,000 for a contract amount not to exceed $3,035,000 to ensure the highest level of primary treatment. Contract Extension • Kemiron Pacific, Inc. is the only vendor capable of supplying the chemical and the quantity of chemical required for advanced primary treatment at the District. • Purchasing staff has researched vendors throughout the United States and Canada to seek competitive bids. We could not find any other vendors at this time. • Kemiron Pacific, Inc. has requested about a 25% contract unit price increase or a $97.00 unit cost increase due to drastic increases in their costs for chlorine, which is part of the ferric chloride chemical. • Staff reviewed other major user's bids of ferric chloride, which is about twice the District's projected usage. The winning bid price from Kemiron Pacific, Inc. was $396 per dry ton for a usage of over 24,000 tons annually. • Based on the projected chemical feed rates associated with increased chemical addition to the primary clarifiers, the projected ferric chloride usage is 12,000 dry tons during the upcoming contract period. • In addition, the District must use this chemical in order to control sulfur in the digester gas, therefore we recommend approval of the new contract. • District staff has been discussing this issue with chemical vendors in the Midwest and East Coast in order to foster competition. To date, those venders have not been interested in developing markets on the West Coast. c:W AW' .nd.OWSSiPo2U'O]Y OWS Alnd.na0 W47.w .Peonc.d. R"W: IM7 Paget y PROJECT/CONTRACT COST SUMMARY • The current chemical unit price is $322 per dry ton, including tax and delivery. The approximate 1,555 dry ton usage increase will cost an additional $500,000,for a total contract amount of$3,035,000. • Based on the new chemical unit price of$426.69 and the projected usage of 12,000 dry tons during the upcoming contract period, the estimated expenditure is $5,120,280. The increase in the level of treatment accounts for$1,330,000 and the increase in unit price accounts for$1,255,280 for a total of$2,585,000 increase from the previous contract. • It is anticipated that a transfer of funds from other budget line items will cover the additional cost. Therefore, additional funding is not being requested at this time. • There are some possible offsets. BUDGETIMPACT ❑ This Rem has been budgeted. ® This item has been budgeted (Line item: 59 a si), but there are insufficient funds. ❑ This Rem has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None ALTERNATIVES At this time, using ferric chloride and anionic polymer to enhance primary clarifier performance is the only viable technology for optimum settling in the primary clarifiers. District staff continues to review other alternative chemicals for this application. The known alternative chemicals are more expensive than ferric chloride and do not offer control of sulfur in the digester gas. CEQA FINDINGS NA ATTACHMENTS NA G:FpAYYpvgtlO�WR9 peW Rapanstl381.Ne,mm�Patllcex •.e..a. +mwr Page 3 OMTS COMMITTEE Meeting Date Toed.dror. -� 11/6/02 11/20/O2 AGENDA REPORT Item Numb& Itm Number OMT502-69 iz(d) Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator. Layne Baroldi, Sr. Regulatory Specialist SUBJECT: Biosolids Management Contract Amendment GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 1 to the Agreement for Management of Biosolids with Tule Ranch/Magan Farms, extending the contract tens for one year, January 1, 2003 through December 31, 2003,with four additional one year options,for an annual amount not to exceed $3,804,000. SUMMARY Current Biosolids Management Operations: Presently, OCSD contracts for the services from the following three companies to manage its annual production of 200.000 wet tons of biosolids in several locations: • The Yakima Company in La Paz County, Arizona through use of air-dried biosolids at the La Paz County landfill as alternative daily cover and disposal at$35.00 per wet ton (managing 20% of OCSD's biosolids), • Synagro utilizing Class B biosolids land application on Tribal land in San Bernardino County and Arizona at$39.50 per wet ton (managing 15% of OCSD's biosolids) , and • Tule Ranch/Magan Farms utilizing Class B biosolids land application on OCSD's land in Kings County at$25.40 per wet ton and $27.35 per wet ton in Kem County (managing 65%of OCSD's biosolids). Proposed Blosolids Management Options: In anticipation of the Kenn and Kings counties' Class B biosolids land application bans on January 1, 2003, it is anticipated that OCSD's biosolids will be managed as follows: • The Yakima Company in La Paz County, Arizona through use of air-dried biosolids at the La Paz County landfill as alternative daily cover and disposal at$35.00 per wet ton (proposed to manage 20% of OCSD's biosolids), • Synagro in San Bernardino County and Arizona through Class B land application and composting and land application as Class A biosolids on primarily Tribal land at$39.50 per wet ton (proposed to manage 15%of OCSO's biosolids), • California Soil Products through chemical stabilization and land application as Class A biosolids at$32.70 per wet ton (proposed to manage 15% of OCSD's biosolids) (it is anticipated that California Soil Products will be in operation in early 2003), and • Tule Ranch through its several above-mentioned options at prices ranging from $29.25 to$38.75 per wet ton (proposed to manage 50%of OCSD's biosolids). G Wq.dla�d A W�2B M� Rep tMIOVm 12(d)Tw ftA Am Renwd. ,d/ =(�( Page 1 Tule Ranch/Magan Farms Contract Amendment No 1: r • Tule Ranch/Magan Farms biosolids management option has been providing OCSD with reliable Class B biosolids land application services in Kings and Kem counties since December 1996 and is OCSD's lowest cost biosolids management provider currently managing approximately 65% of OCSD's biosolids. • The Tule Ranch/Magan Farms contract with OCSD expires on January 1, 2003. • The July 2001 Carollo Engineers Short-tern Biosolids Management Plan recommended that the production of Class A EQ biosolids at Tule Ranch/Magan Farms be pursued as one of the recommended short-term alternatives to be implemented. • In order to provide OCSD with diversity and flexibility, the proposed Amendment includes the addition of five biosolids management options to the existing Tule Ranch/Magan Farms Class B biosolids land application contract. These additional biosolids management options are being provided to respond to the numerous regulatory developments that have occurred since the time of entering into the initial contract. • The costs per wet ton of biosolids for each of the management options are as follows: o $29.25 for Class B biosolids land applied on District's land in Kings County, o $31.75 for Class B biosolids land applied in Kern County, o $38.75 for Class B biosolids land applied in western Arizona, o $32.75 for Class B biosolids land filled in Kem County, o $34.00 for Class B biosolids land filled in La Paz County, Arizona, o $33.00 for Class A EQ biosolids land applied on District's property in Kings County, and o $35.00 for Class A EQ biosolids land applied in Kern County. • The legal, consulting, permitting, technical, chemical, transportation, fuel, water, monitoring, workers compensation insurance, and additional labor costs related to economic and regulatory compliance changes have increased biosolids management costs and significantly reduced biosolids reuse options. • The proposed Amendment tens will provide OCSD with sufficient management options to continue a program of recycling, diversity, and continued cost effectiveness. • OCSD's Long-term Biosolids Master Plan (Plan)(J-40-7) is being developed and will compare options and create a strategy for managing OCSD's biosolids for the next five to 15 years. The one-year term of the Amendment will not interfere with the installation or implementation of technologies recommended in the Plan. Cost Determination: • Staff has determined that the cost for each of the proposed biosolids management alternatives is reasonably related to services provided. • Transportation is the largest expense for each of these biosolids management alternatives. The industry standard for transportation cost for 25 tons of cargo utilizing a conventional diesel tractor-trailer is approximately $1.35 per mile. The round-trip distances for the proposed biosolids management sites are: 0 340 miles for the Kem County landfill 0 400 miles for the Kem and Kings County land application sites 0 540 miles for the La Paz County, Arizona landfill 0 600 miles (average)to western Arizona land application sites • Beyond transportation costs, each of the proposed biosolids management alternatives has additional associated costs for insurance, recordkeeping, permit fees and taxes, biosolids processing equipment,fuel, and maintenance (e.g., spreading, discing, drying, chemical stabilization, landfill tip fee, etc.), labor and burden, and monitoring and testing. GM dw�vMe Lff W2�W2 OMT$Awm RlMbN2�TJe W=W Re,W 1a 2 ON Page 2 • For example, under option 2, Class B biosolids land application in Kem County would 7- cost$21.60 per ton for transportation (400 miles multiplied by$1.35/mile, divided by 25 tons per truck load), spreading, discing, and labor costs of$4.25 per ton, monitoring, administrative, and recordkeeping costs of 2.00 per ton, insurances, permit, taxes, and miscellaneous costs of approximately$1.50 per ton. The total cost is approximately $28.85. Tule Ranch/Magan Farms'fee for this service is $31.75, leaving a profit margin of$2.40 per ton. • As a result of the regulatory developments,Tule Ranch/Magan Farms has made investments in vastly improved field operating and technical services crews, substantial capital costs in new equipment, and additional operating costs. The Class A EO Biosolids processing facility will cost Tule Ranch/Magan Farms approximately$700,000. • At the discretion of the District's General Manager, the $35.00 per wet ton fee for Class A EO biosolids land applied in Kem County would be subject to a 10% regulatory contingency fee to compensate Tule Ranch/Magan Farms for its reasonable costs incurred in excess of those contemplated at the time of entering into this Amendment for additional regulatory compliance costs for the Kem County Class A EO biosolids chemical stabilization processing facility. Cost Summary Stafrs estimated annual biosolids hauling costs (based on an annual production of 200,000 wet tons per year of biosolids) including the proposed amended Tule Ranch/Magan Farms contract for each of OCSD's biosolids management contractors is summarized in the table below. Company Contract Est. Tons Cost Estimated Management Option Processing End Managed per Annual Cost Offered Location Date per Week' Ton Synagro, 7/2005 600 $39.50 $1,232,400 Class B land application Tribal AZ, CA, NV Inc. Class B land application Private land,AZ Class A compost Tribal AZ,CA, NV Class A compost Private land AZ The 1/2012 750 $35.00 $1,365,000 Landfill cover La Paz County,AZ Yakima Co. Tule 1/2003 1900 $29.25 $3,458,000 Class B land application Kem&&Kings Co. Ranch/ to Landfill cover La Paz County,AZ Magan $38.75 Landfill disposal Kem County, CA Farms I Class A chem. stabilized Kem&Kings Co. CA Soil 3/2007 600 $32.70 1 $1,020,240 Class A chem. stabilized Los Angeles Products° Based on 200,000 tons of biosolids produced per year. Please note that tonnage allocations are expected to vary due to factors including inclement weather,material management issues,and regulatory developments. 2 Estimated annual cost based on an average cost of$35.00 per ton per the proposed contract amendment s Requires either a successful administrative appeal,a stay in the ordinance(s)or successful litigation °CA Soil Products is expected to begin operations in early 2003. The facility's maximum capacity is 300 tons per day. Long-term Blosollds Master Plan Entering into any long-term contract for biosolids management may be premature pending the development of OCSD's Long-term Biosolids Master Plan. As such, the Tule Ranch/Magan Farms proposed Amendment does not contain a provision for a"guaranteed minimum"amount of biosolids to be tendered by OCSD. OCSD can terminate or re-allocate biosolids to another contractor with minimal notice. G1rp UY,pmOebNf S�i00TN03 Oura RgwCa Pe{ab'01m T,/e PenNEx Page 3 • The OCSD has selected a joint proposal by CH2MHill, CDM, and Tetra Tech to prepare a Long-term Biosolids Master Plan (Plan). ' • The Plan will develop and compare options and develop a strategy for managing ` OCSD's biosolids for the next five to 15 years. • The Plan will Incorporate many existing studies and reports in order to tie together OCSD's solids handling treatment facilities to marketable biosolids products. • The final Plan should be by April 2003 and will be utilized to develop either a request for proposals or a bid for long-term biosolids management services. • The one-year term of the Amendment to the Tule Ranch/Magan Fars will not interfere with the anticipated recommendations of the Plan. PROJECT/CONTRACT COST SUMMARY Information is provided in the Cost Summary portion of the Agenda Report BUDGETIMPACT ® This item has been budgeted. (Line Item#86 Joint Operating Fund budget) ❑ 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 A Request for Proposals for a portion of our biosolids production would be premature at this time pending the recommendations OCSD's Long-term Biosolids Master Plan (J-40-7). No action would result in the lapse of the Tule Ranch/Magan Farms contract. A lapse would result in OCSD reallocating biosolids to its other contractors, potentially resulting in an increase in biosolids management costs of$500,000 per year, less geographical diversity(all of OCSD's biosolids would be diverted to the Colorado River portion of California, Nevada, and Arizona), and OCSD's land in Kings County would no longer be productive. Sister agencies are facing the same post-Class B Biosolids ban concerns. The City of Los Angeles has chosen to purchase approximately 4,000 acres in Kern County for$9,000,000, invested $20,000,000 in treatment process capital improvements in order to create a thermophilic (heated to high temperature) Class A EQ biosolids cake. The operation and maintenance cost for their biosolids is approximately$34 per wet ton not including capital investments. The County Sanitation District of Los Angeles County(LACSD)has a contract with San Joaquin Composting to create Class A EQ compost for approximately$35 per wet ton. LACSD is also working with a farmer in Kings County to permit a compost facility. If the site is permitted, it is anticipated that LACSD would buy approximately 14,000 acres for in excess of $30,000,000 and construct an open-air compost facility that would cost in excess of $10,000,000. Operations and maintenance costs for biosolids management at such a composting facility is expected to be in excess of$40 per wet ton excluding Investments. CEOA FINDINGS N/A G:Mp.Ote Wft%OMlS1 MOWS Ap aReryl-0Q2f TWe MnO d= Rewu 1M W ( n) Page 4 ATTACHMENTS N/A ADDITIONAL INFORMATION N/A G..xpAbkVa WMTS11 N002 Oxus AVw Repon%M.Tum RenMdtt R.A.& IDI3AO] (M) Page 5 OL OMTS COMMITTEE Meeting Date Tu90.of Dir. 11,06102 11/20/02 AGENDA REPORT Item Number Item Number OMT602-69 12(e) Orange County Sanitation District FROM: Robert J. Ooten, Director of Operations and Maintenance briginatod: Nick Arhontes, Manager— Collection Facilities Operations and Maintenance and Facilities Services Divisions $UBJECT: MANHOLE COATING SERVICES GENERAL(MANAGER'S RECOMMENDATION( 1. Approve use of Sancon 100 and Sancon 200 Series polyurethane coatings as the District's standard spray-on coating material for manhole and pump station wetwell repairs and rehabilitation; and, 2. Authorize the General Manager to enter into a sole source Services Agreement with Sanoon Engineering II, Inc. to provide coating and application services of Sancon 100 and Sancon 200 Series on an on-call basis for one year, with four one-year renewable options, for an annual amount not to exceed $300,000. SUMMAR)l • The District owns about 10,000 sewer manholes. About 4,500 of them on the regional trunk sewers are made of concrete and subject to corrosion. Of these, about 3,250 do not have corrosion-protective coatings or liners. Staff recommends standardizing on Sancon 100 and 200 Series polyurethane coatings for planned rehabilitation of corroded concrete surfaces as staff discovers them and for spot repairs of previously coated surfaces. • This manhole coating standardization is for the on-call work planned and scheduled by the Collection Facilities staff when needed repair is discovered during routine maintenance. • The District-standard in the Regional Trunk Sewer System is, with only a few exceptions in low corrosion exposure areas,to protect all new bare concrete manhole and pump station wet well surfaces from corrosion to extend asset life and performance. Concrete manhole and pump station repairs are done based on staff filling out a manhole condition assessment form as they perform routine maintenance. As corrosion of the concrete surface reaches a certain level, repairs are planned and scheduled. GAvy.d.aL nftl ad ABendf Rev QW2 Board A,.R.p ,111OZ11-121e1 GOnc.Ott Revised. W10W Page 1 • The recommendation to standardize on the Sancon 100 and Sancon 200 Series coatings was based on the following: 1. Repair coating systems have been used at the District for over 25 years 2. Staff has evaluated other coating systems that have failed 3. Sancon Engineering ll, Inc. (Sancon)is a qualified local contractor providing services for over 20 years 4. Sancon has developed superior proprietary products 5. Sancon is the only firm to guarantee products for up to 5 years versus the 1 year standard 6. The firm's prices are competitive. A proposed cost matrix for 2003 is attached. • The District will continue to provide test locations for other products and applicators as they become known to us. • Manhole coating repair work and costs have increased as follows: Calendar Year Repair Cost 1999 $ 10,000 2000 $ 42,000 2001 $175,000 2002 $250,000 2003 $300,000 (Estimated) 2004 $300,000 (Estimated) • Polyurethane coatings have proven to be the most successful type used by the District based on feedback from O&M and Engineering staff. • Local city and sewering agency manholes that are located upstream of District manholes that become affected by corrosion due to District sewers are currently repaired at no cost to the cities/agencies using these coatings and applicator. PROJECT/CONTRACT COST OUMMARYi • These services are budgeted in the O&M budget for the regional collection facilities. • A ceiling amount of$300,000 annually will allow us to continue to protect the District plants, collection facilities and upstream city/agency facilities adequately. • OCSD has performed coating services at no cost for cities such as Fountain Valley, Huntington Beach, Midway Cities SD, Garden Grove, Cypress and Buena Park when corrosion from OCSD's regional sewers has been shown to damage upstream city/sewering agency-owned facilities. • Other coating products have been tested and are short-lived due mainly to product application problems. This supplier has perfected the surface preparation and coating application process along with the coating formulation to provide long life. • For comparison purposes, the cost to replace an old, structurally failed manhole five feet in diameter and twenty feet deep with a new structure is about$45,000 including traffic control with a significant excavation and traffic disruption. To water blast, gunite concrete surface prep, and coat the same representative manhole experiencing premature concrete failure would be about$7,100 including traffic control for an approximate duration of two days. c:ry.m.�.ovmeoem mnmw,zom ama.w�.m•+.%11 a 120)�mc . d,� Page 2 • We feel that the coating process is an economical method that extends life and avoids more costly replacements. On new structures, we feel that installing PVC liners is desired. BUDGET)IIIIi ❑ This item has been budgeted. (tine item: ® This Rem has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ❑ Not applicable (information item) ADDITIONAL�NFORMATIONJ • The District has used Sancon Engineering II, Inc. over a 20-year period to perform high- quality services and repairs to the District's collection system. Sancon is a local company with sizable resources that can respond in a timely manner to perform emergency or routine maintenance and repairs to the District's facilities. • Sanoon's primary service to the District has been the installation of polyurethane linings to existing bare concrete collection system infrastructure as a protective barrier against acid corrosion,which R left unchecked, degrades concrete structures to the point of loss of reinforcing steel strength and possible collapse. Sancon began as a coating applicator 20 years ago, but developed a new line of specialty polyurethane coating, Sancon 100, that is applied to interior concrete surfaces. Sanoon manufactures and applies this product and has complete quality control over their material and work, enabling them to offer an unconditional 5-year guarantee on this product. Staff has not found anyone else in the industry that will provide this guarantee. • The District is committed to safe work practices. Sancon has in place a comprehensive safety program and permit required confined space entry program. The District has reviewed and approved both these programs. • The District's O&M and Engineering departments have also recently tested SanODn's newest material, Sancon 200, a polyurethane mortar lining. To date, evaluation has indicated excellent results. This product, property applied and not available from other sources, has the potential of many needed uses in a continuing effort to maintain the collection and treatment facilities. • The City of Huntington Beach, City of Oceanside and South Coast Water District have used Sanoon Engineering 11, Inc. as a sole source for emergency repairs and specialty maintenance to their collection systems. Sancon has performed work throughout the western region including Hawaii. • Considering Sanoon's performance and 20-year track record with the District, it is recommended that the District use their specialized coating services to maintain the collection and treatment facilities. cwv.auae.�mw.mszaozaaoz owrsnam�m•.•wnwas.s•Km.mc R...U: Wl, Page 3 • OCSD owns about 10,000 manholes. Of these 5,500 are local residential type manholes and generally not subject to acid attack.The remaining 4,500 are regional trunk and interceptor sewer manholes. Of these, based on current records 3,250 are unlined, 100 are polyurethane coated, 20 are a fiberglass liner type no longer made, 5 are of various epoxy types being tested, and 1,125 are PVC lined. ALTERNATIVES Specify unproven coating systems to be applied by this or other contractors that do not have the life-expectancy or guarantee of the product being recommended. CECIA PINDING0 Not applicable for maintenance and rehab type work. (ATTACHMENT$ Manhole Rehabilitation Pricing Matrix dated October 24, 2002 NJA:pjm G.Yx,AWt gendaA SVWPNp2 OWS Agenda Repm Wm , ammn.dx ReAe •,mree Page 4 Oc1.30. 2002 4:37PM SANCON No .9303 P. 2/2 Proposed OCSD MH Rehabilitation Cost Matrix for 2003 Sancon Engineering 11, Inc. Unit Cost per MH Diameter MH Rehab Work Performed 4' 5' 6' 7' Waterblast&Coat per vertical foot with Sancon 100(Baseline) $ 120.00 $ 130.00 $ 160.00 $ 170.00 Add concrete repairs (gunite)or Sancon 200 system per vertical foot as required_ $ 120.00 i $ 170.00 $ 175.DO $ 200.00 Add Bench Repairs per MH (Rebuild as Necessary $ 600.00 $ 700.00 $ 800.00 $ 900.00 Add Ground Water Infiltration Control per vertical foot $ 50.00 $ 55.00 $ 60.00 $ 65.00 Add Replacement of 24' F&C per MH $ 1,200A0 $ 1,200.00 $ 1,200.00 $ 1,2D0.00 Add Replacement of 36' F&C per MH $ 1.500.00 $ 1,5M.00 i $ 1,500.00 $ 1,500.00 dd gunile for severely deteriorated manholes with Sancon 200 system $ 100.00 $ 150.00 $ 165.00 1 $ 190.00 Item (Assume MH 10'Deep) Typical Total Cost for 10' deep MH of Each Diameter 4' 5' 6' 7' Waterblast+Sancon 100 (Baseline) $ 1,200.00 $ 1,300.00 is 1,600.00 $ 1,700.00 Waterblast+Gunite+ Sancon 100 or Sancon 200 system w/o gunite $ 2.400.00 $ 3,0001.021 $ 3,350.00 $ 3,700.00 Waterblast+Gunite+Bench +Sancon 100 or Sancon 200 w/o gunite $ 3.000.00 $ 3,700.00 $ 4,150.00 1 $ 41600.DD Waterblast+Gunite+Bench +Infiltration Control +Sancon 100 or Sancon 200 w/o gunite $ 3,5DO.00 I $ 4.250.00 1 $ 4,750.00 $ 5,250.00 Waterblasl+Gunite+Bench + Infiltration Control+Sancon 100 of Sancon 200 w/o 9unile+24'F&C $ 4,700.00 Waterblasl+Gunite+ Bench+ Infiltration Control+Sancon 100 or Sancon 200 w/o gunite+36'F&C $ 5,750.00 $ 6,250.00 $ 6,750.00 i sumed Typical Replacement of Existing MH(n street)using New PVC Lined MH $ 10,000.00 $ 12,000.00 $ 14,000.00 $ 16,000.00 Notes:(1) MH Rehab Pricing Matrix assumes 3 MH minimum per move-in (2)Does not include additonal costs for City permits/fees,heavy traffic control, night work or heavy volume flow control (3) Sancon 200 price typically equals price of moderately deteriorated manholes using gunite + Sancon 100 (In the event of very severely deteriorated manholes gunite pricing would be applicable in any case). SANCON 1 I ' DRAFT MINUTES OF PLANNING. DESIGN. AND CONSTRUCTION COMMITTEE MEETING Orange County Sanitation District Thursday, November 7, 2002, at 5 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, November 7, 2002, at 5 p.m., in the District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: PDC COMMITTEE MEMBERS: Directors Present: Russell Patterson, Chair STAFF PRESENT: Jerry Sigler,Vice Chair Blake Anderson, General Manager Patty Campbell Bob Ooten, Director of Operations & Alice Jempsa Maintenance Beth Krom John Linder, Construction Manager Norm Eckenrode, Past Board Chair Jim Herberg, Planning Manager Shirley McCracken, Board Chair Matt Smith, Engineering Supervisor Steve Anderson, Board Vice Chair Chris Cervellone, Engineering Supervisor Larry Gibson, Engineering Supervisor Directors Absent: Brian Bingman, Project Manager Mike Alvarez Sejal Patel, Project Manager Laurann Cook Tod Haynes, Engineering Supervisor Chuck Hodge, Project Engineer OTHERS PRESENT: Jean Tappan, Committee Secretary Randy Fuhrman Duane Jensen Larry Porter Jan Vandersloot Jess Yoder Tom Haid Jag Salgaonkar (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. 1 PDC Committee Minutes Page 2 November 7, 2002 (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Russ Patterson did not make a report. (5) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson did not make a report (6) REPORT OF THE DIRECTOR OF ENGINEERING Director of Engineering David Ludwin asked that staff make three informational presentations. John Linder reported on the status of the rehabilitation of the last of the three 36-inch force mains between Plant 2 and the Bitter Point Pump Station. Bids were opened on October 31 and the two lowest bidders were non-responsive. He asked the Committee members whether to go ahead and award the project to the third place bidder or reject all bids and re-bid the project. After discussion, the Committee recommended that staff present the project to the Board for award to the third low bidder. Mr. Ludwin described the highlights of the CIP and the steps underway to validate the projects included therein. He indicated that this validation process is an opportunity to look at cost savings and business management practices, estimate timing and prioritizing projects, and evaluating the impacts of secondary treatment. The process will allow them to break out the secondary treatment projects and monitor them. This same validation process will take place annually during the budgeting process. He explained the three steps in the validation process: 1) is the project needed;2) is the schedule appropriate;and is the project appropriate. He described the plans for full secondary and the impacts on existing projects. Jess Yoder, program manager for IPMC, the project management consultant, introduced the IMPC team leaders and described the activities to date and the process time line. Mr. Ludwin reported that a report will be presented to the PDC Committee monthly on the progress on this plan. At 5:30 p.m., Directors Anderson and Eckenrode left the meeting. Duane Jensen, Carollo Engineers, presented a video on the recently completed ouffall reballast project. The project was completed early and under budget. (7) REPORT OF GENERAL COUNSEL General Counsel was not present. PDC Committee Minutes Page 3 November 7, 2002 (8) CONSENT CALENDAR (Items a-g) a. RECEIVE. FILE, AND APPROVE MINUTES OF PREVIOUS MEETING Receive, file, and approve draft minutes of the October 3, 2002 Planning, Design, and Construction Committee meeting. b. CHANGE ORDER REPORTS Attached is the Monthly Change Order Report and the Report of Construction Contracts with Potential Change Orders over Five Percent(5`yo). This is an information only item. Action on change orders that require PDC Committee or Board approval will be taken separately. There are four change orders this month for PDC Committee approval. c. PSA AND ADDENDA REPORT Attached is the PSA and Addenda Report. This is an Information only item. Action on PSAs and Addenda that require PDC Committee or Board approval will be taken separately. There were no PSAs and no Addenda approved by the General Manager from September 20 through October 24, 2002. d. FACILITIES ENGINEERING CONSULTANT ACTIVITY REPORT Attached is the Facilities Engineering Consultant Activity Report. This is an information only item. e. SANTA ANA RIVER INTERCEPTOR RELOCATION AND PROTECTION STATUS REPORT Attached is the Santa Ana River Interceptor(SARI) Relocation and Protection Status Report. This is an information only item. f. PDCO2.77 Recommend to the Board of Directors to (1) Approve a budget amendment of$98,576 for Orange-Western Subtrunk Relief Sewer, Contract No. 3-25, for a total budget of$1,682,667; (2) Ratify Change Order No.2 to Orange-Western Subtrunk Relief Sewer, Contract No. 3-25, with Elser Constructors, Inc., authorizing an addition of$94,956 and a time extension of 17 calendar days, increasing the total contract amount to$1,279,146; (3) Ratify Change Order No. 3 for an Adjustment of Engineer's Quantities, authorizing an increase of$2,346, Increasing the total contract amount to$1,281,492; and (4) Accept Orange-Western Subtrunk Relief Sewer, Contract No. 3-25, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. PDC Committee Minutes Page 4 November 7, 2002 g. PDCO2-78 Recommend to the Board of Directors to (1)Approve a budget amendment of$587,216 for Scrubber Monitor and Control,Job No.J-71-7,for a total budget of$3,319,216; (2) Ratify Change Order Nos. 2 and 3 to Scrubber Monitor and Control, Job No. J-71-7, with Margate Construction, Inc., authorizing an addition of$651,210 and a time extension of 20 calendar days, increasing the total contract amount to$1,905,779; and (3)Accept Scrubber Monitor and Control, Job No. J-71-7, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. END OF CONSENT CALENDAR Motion: It was moved, seconded and duly carried to approve the recommended actions for items specified as 9(a)through 9(g) under Consent Calendar. (9) ACTION ITEMS (Items a-f) a. PDCO2-79 Recommend to the Board of Directors to approve Professional Services Agreement with Malcolm Pimle, Inc.for preparation of emission reduction study assessment in connection with Central Generation Automation, Job No.J-79, for an amount not to exceed $253,235. Matt Smith explained the need for the project. MOVED,SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Professional Services Agreement with Malcolm Pimle, Inc. for preparation of emission reduction study assessment in connection with Central Generation Automation, Job No.J- 79, for an amount not to exceed$253,235. b. PDCO2-80 Recommend to the Board of Directors to(1)Approve budget reallocation of$2,645,000 for Trickling Filter Rehabilitation and New Clarifiers, Job No. Pl-76,with no change in total project budget; (2)Approve plans and specifications for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, on file at the office of the Board Secretary;and (3)Authorize the General Manager to establish the date for receipt of bids for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76. Project Manager Brian Bingman described the scope of work and why it is necessary to increase the project budget. He outlined the project schedule. The funds will be transferred from the contingency amount. MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to(1)Approve budget reallocation of$2,645,000 for Trickling Fitter Rehabilitation and New Clarifiers, Job No. P1.76,with no change in total project budget; (2)Approve plans and specifications for Trickling Filter Rehabilitation and New Clarifiers, Job No. P7-76, on file at PDC Committee Minutes Page 5 November7, 2002 the office of the Board Secretary; and (3)Authorize the General Manager to establish the date for receipt of bids for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76. C. PDCO2-81 Recommend to the Board of Directors to approve Addendum No. 4 to the Professional Services Agreement with Parsons Engineering Science, Inc., for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, providing for changes in the Scope of Work for an additional amount of$140,667,for a total amount not to exceed $3,411,411. Larry Gibson explained the need for this addendum. MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Addendum No.4 to the Professional Services Agreement with Parsons Engineering Science, Inc., for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, providing for changes in the Scope of Work for an additional amount of$140,667,for a total amount not to exceed $3,411,411. d. PDCO2-82 Recommend to the Board of Directors to receive and file Final Interim Strategic Plan Update,Job No.J-40-8, dated September 2002, prepared by Camp Dresser and McKee, Inc. MOVED,SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to receive and file Final Interim Strategic Plan Update, Job No. J-40-8, dated September 2002, prepared by Camp Dresser and McKee, Inc. e. PDCO2-83 Recommend to the Board of Directors to approve Addendum No. 3 to the Professional Services Agreement with Black& Veatch Corporation for Effluent Pump Station Annex, Job No.J-77, providing for additional design engineering services for an additional amount of$304,000, increasing the total amount not to exceed $4,015,523. MOVED,SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Addendum No. 3 to the Professional Services Agreement with Black& Veatch Corporation for Effluent Pump Station Annex,Job No.J-77, providing for additional design engineering services for an additional amount of$304,000, increasing the total amount not to exceed $4.015,523. I. PDCO2-84 Recommend to the Board of Directors to authorize the General Manager to negotiate Addendum No. 3 with Fluor Signature Services for Phase III of the Space Allocation and Interior Renovation, Job No.J-84, providing for a detailed engineering design and preparation of plans and specifications. PDC Committee Minutes I; Page 6 November 7, 2002 David Ludwin revisited the need and scope of the project. A substitute motion was made to approve the action but eliminating the fitness center from the project. MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to authorize the General Manager to negotiate Addendum No.3 with Fluor Signature Services for Phase III of the Space Allocation and Interior Renovation,Job No. J-84, providing for a detailed engineering design and preparation of plans and specifications. (10) CLOSED SESSION There was no closed session. (11) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (12) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) FUTURE MEETINGS DATES The next Planning, Design, and Construction Committee Meeting is scheduled for Thursday, November 7, 2002 at 5 p.m. (15) ADJOURNMENT The Chair declared the meeting adjourned at 6:47 p.m. Submitted by: A� J 'Tappan P Committee Secretary a+w.mw.wwoL\zwzan�wiea�i i oroz cx w�,ern PDC COMMITTEE M•eUnpDet• Taea.mDlr. 11107Po2 11, 02 AGENDA REPORTItem Number Item Number PDCO2-77 INC) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bud Palmquist, Senior Engineer SUBJECT: ORANGE-WESTERN SUBTRUNK RELIEF SEWER CONTRACT NO. 3-25 GENERAL MANAGER'S RECOMMENDATION (1) Approve a budget amendment of$98,576 for Orange-Westem Subtrunk Relief Sewer, Contract No. 3-25, for a total budget of$1,682,667; (2) Ratify Change Order No. 2 to Orange-Western Subtrunk Relief Sewer, Contract No. 3-25, with Elser Constructors, Inc., authorizing an addition of$94,956 and a time extension of 17 calendar days, increasing the total contract amount to $1,279,146; (3) Ratify Change Order No. 3 for an Adjustment of Engineer's Quantities, authorizing an increase of$2,346, increasing the total contract amount to $1,281,492; and (4)Accept Orange-Western Subtrunk Relief Sewer, Contract No. 3-25, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. SUMMARY Backoround • Contract No. 3-25, includes the installation of 2,660 feet of 21-inch vitrified clay pipe (VDP) gravity sewer pipe, manholes, and appurtenant facilities in the City of Buena Park. • The contract was awarded to Elser Constructors, Inc. on December 19, 2001. This project was originally designed by NSB Lowry in 1990. The consultant went out of business and the design plans were updated by District staff to bring them up to current District and City of Buena Park standards. Contract Schedule Contract Start Date January 31, 2002 Original Contract Completion Date June 30, 2002 Total Number of Change Orders to Date 3 Current Contract Completion Date September 5, 2002 Actual Completion Date September 5, 2002 Days Subject to Liquidated Damages N/A Change Order No. 2 Content Item Description Amount Days Type No. 1 Replacement of ACP Waterlines $6,561 3 Changed Condition 2 Video Tape New Sewer Line $1,914 0 Omission 3 Repair of Manhole Interior $1,328 0 Changed Condition 4 Additional Traffic Loops $3,140 3 Changed Condition 5 Credit for Final Striping $ 3,850 0 1 Other 6 Waterline Break $40,863 5 Changed Condition 7 Paving Extras $45,000 6 Changed Condition Total Change Order No. 2 $94,9561 17 Note: Items 5 and 6 will be submitted to the City for reimbursement. After ratification the City has agreed to reimburse the District for the costs of Item 6 minus the credit for Item 5. Seethe attached Change Order for further information. Change Order No. 3 Item Description Amount Days Type No. 1 1 Adjustment of Engineers Quantities $2,346 0 Other Total Change Order No. 3 $2,346 0 Job Completion The contract is now 100% complete. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 1,159,990.00 Previously Authorized Changes $ 24,200.00 This Change (Add) (DedunE) $ 97,302.00 Change Orders to Date $ 121,502.00 Percentage Increase to Date 10.47% Amended Contract Price $ 1,281,492.00 Note: The total change order percentage would be 6.95% without Item 6 of Change order No. 2, R". V 1 2 BUDGETIMPACT ® This item has been budgeted. (Line Rem: CIP: Section 8—Page 17) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Staff requests a budget amendment of$98,576. The additional funds requested for this project provides for all Change Orders to date and added design staff costs. This project was designed in house, which accounts for the design staff incremental costs. All of the contingency dollars were moved to cover the construction contract. ADDITIONAL INFORMATION None ALTERNATIVES None CEOA FINDINGS This project was included in the Master Plan Environmental Impact Report that was certified on July 19, 1989 and the Notice of Determination was filed on July 20, 1989. The District has determined that supplemental environmental work will not be required for this project. . ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order No. 2 4. Change Order No. 3 BP:IC G:WgIobarAgenda Drell ReportsTDC1125 AR CO2-3 COA.doc R«aee: a 3 BUDGET INFORMATION TABLE ORANGE-WESTERN SUBTRUNK RELIEF SEWER CONTRACT NO. 3-25 � v ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS TR OS�,¢„ , SES'I'IPggT ¢� EIGlig7 , PROJECTRA5K " AUTHORIZED. PROJECT^ SUQOET REVISED gVXHORIZED AUTHORIZATION Tb JtkfRENp)T71RE ES'�NQFpsl, BUDGET°' BUDGET INGREASB BUDGET" �'O DATE `REGUEST .!q(THO TIO� �`b Al Project Development $ 4,000 $ 209 $ 4,209 $ 4,000 $ 209 $ 4,209 $ 4,209 100% Studies/Permitting $ 11,000 $ 372) $ 10.628 $ 11,000 $ 372 $ 10,628 IS 10628 100% Consultant PSA $ $ Design Staff $ 42.024 $ 115.000 $ 62.247 $ 177.247 ` $ 115,000 $ 62,247 $ 177,247 $ 177,247 100% Construction Contract $ 900,000 $ 1.220,000 $ 61,492 $ 1,281,492 "`:' $ 1,22D,000 $ 61,492 $ 1,281,492 $ 1.245,464 97% Construction Administration $ 81,613 $ 87.000 $ 60,776 4.. $ 87,000 $ 26,224 $ 60,776 $ 60,776 100% Construction Inspection $ 134,000 $ 148,325 " $ 134.000 $ 14,325 $ 148.325 $ 148.325 100% Contingency $ 90000 $ 25,000 $ 25,000 $ $ PROJECT TOTAL $ 1,113,637 $ 1,596,000 $ 98,576 $ 1,682,677 -„. $ 1.571,000 $ 111,677 $ 1,682,677 $ 1,646,639 98% Reimbursable Costs PROJECT NET IS 1,113,637 1 $ 1.596,000 1 $ 98,576 1 $ 1,682,677 $ 1,571,000 1 $ 111,677 1 $ 1,682,677 $ 1,646,639 98% cTmn. pbu,lg n bl.3-25r.3 •. CHANGE ORDER STATUS REPORT ORANGE-WESTERN SUBTRUNK RELIEF SEWER CONTRACT NO. 3-25 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED ITEM DATE COST TO DATE INCREASE (TIME TIME TO DATE CONTRACT Jan. 31, 2002 $ 1,159,990 $ 1,159,990 150 150 CO NO. 1' 9/10/2002 $ 24,200 $ 1,184,190 2.09% 50 200 CO NO. 2 Pending $ 94,956 $ 1,279,146 10.27% 17 217 CO NO 3 Pending $ 2.346 $ 1,281,4921 10.47% 1 0 1 217 -This change order was approved by the GM per Board Resolution No. 99-23 EDMS/Doc Cleaa/Clessn-emplace/Change OrderslChange Order Stator Report(003717854) Page 1 of 5 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Elser Constructors C.O. No.: Two 2 Date: November 20. 2002 Job: Oranae-Westem Subtrunk Relief Sewer Contract No. 3-25 Consultant: Staff Amount of this Change Order (Add)(Ded - ) $94,956.00 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 — REPLACEMENT OF ASBESTOS CEMENT PIPE (ACP) WATER LINES The Contractor replaced four (4) Asbestos Cement Pipe (ACP) waterlines crossing the District's trench at Station Nos. 8+35, 15+16. 17+88, and 25+40. There were three 8-inch lines and one 6-inch line that were replaced with Ductile Iron Pipe (DIP) as required by the City of Buena Park standards. Three of the water lines were shown in the profile of the design drawings, but were not identified as to the type of pipe. One of the lines was not shown in the profile and was not clearly marked on the contract drawings. None of these water lines had a basis of payment in the schedule of prices. This work was accomplished by the Contractor's Force Account pursuant to Section 10-6(B)2(b) of the General Provisions. ADDED COST THIS CHANGE ORDER ITEM: $ 6,561.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 3 Calendar Days ITEM 2— VIDEO TAPE NEW SEWER LINE This item is for labor, equipment, and material to perform CCTV Inspection of the new 21-inch sewer line. This is a District requirement to verify alignment and grade, and check for damaged or defective pipe. There was no basis of payment provided for in the contract documents (Schedule of Prices). This work was accomplished by the Contractors Force Account pursuant to Section 10-6(B)2(b) of the General Provisions, ADDED COST THIS CHANGE ORDER ITEM: $ 1,914.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 3- REPAIR OF MANHOLE INTERIOR This item is for labor, equipment, and material to repair exposed concrete on the inside of an existing manhole at Station No..0+41.55 with epoxy material and a T-Lock angle strip. During coring operations at this manhole the base thickness was found to be substantially thicker than that shown on the contract drawings, leaving part of the new 21-inch slubout inside the manhole exposed to corrosive gases. This item was accomplished by Contractor's Force Account pursuant to Section 10-6(B)2(b) of the General Provisions. (Reference FCO No. 5). ADDED COST THIS CHANGE ORDER ITEM: $ 1.328.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 2 of 5 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Elser Constructors C.O. No.: Two 2 Date: November20. 2002 Job: Oranoe-Western Subtrunk Relief Sewer. Contract No. 3.25 Consultant: Staff ITEM 4—ADDITIONAL TRAFFIC LOOPS This item is for labor, equipment, and materials to install fourteen (14) additional traffic loops. These loops were not disclosed on the contract drawings and the City revised the location and the number of required traffic loop detectors. This work was accomplished by Contractor's Force Account pursuant to Section 10-6(B)2(b) of the General Provisions. (Reference FCO No. 6) ADDED COST THIS CHANGE ORDER ITEM: $ 3,140.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 3 Calendar Days ITEM 5—CREDIT FOR FINAL STRIPING This item is for a credit received for the deleted scope of work from the contract for final striping. The City chose to install the striping, This credit will be used to offset the amount owed the District for Change Order Item No. 6 (waterline damage). This item was negotiated with the Contractor pursuant to Section 10-6(B)2a of the General Provisions. CREDIT COST THIS CHANGE ORDER ITEM: $ (3,850.00) TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 6—WATERLINE BREAK AT CRESCENT AVENUE & WESTERN AVENUE This item is for labor, equipment, and material costs incurred by the Contractor for damages due to a broken 6-inch fire hydrant lateral that crossed the Contractor's trench at Station No. 26+87. During excavation, the Contractor's excavator struck an undisclosed and unmarked fire service lateral that caused extensive damages to his trench and the adjacent areas. This resulted in delays, clean-up, restoration of the worksite, relocation of the 6-inch fire service line, and additional paving outside the trench limits. The City failed to correctly mark the subject 6-inch fire service lateral from a hydrant located on the south-west corner of Crescent and Western. District staff has requested reimbursement from the City of Buena Park. This work was accomplished by the Contractor's Force Account pursuant to Section 10-6(B)2(b) of the General Provisions. ADDED COST THIS CHANGE ORDER ITEM: $ 40,863.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 5 Calendar Days Page 3 of 5 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Elser Constructors C.O. No.: Two 2 Date: November 20, 2002 Job: Orange-Western Subtrunk Relief Sewer, Contract No. 3-25 Consultant: Staff ITEM 7— PAVING EXTRAS This item is for labor, equipment and material to install additional paving on Crescent Avenue, between Knott Avenue and Western Avenue in the City of Buena Park. The standard trench width for a 21-inch VCP pipe installed is approximately 5 feet, and the City of Buena Park's Standard Drawing No. 310 requires the Contractor to replace 12-inches of additional asphalt on each side of the trench. The Contractor was able to maintain a trench width of 5 feet for approximately 900 feet of pipe and for the balance of the project (approximately 1,600 feet) his trench width was 11 feet. The City directed the Contractor to extend his finish grind from lane line to lane line (approximately a 28 foot wide area) and to remove and replace base material outside his trench limits at numerous locations. This City requirement to rehabilitate the street surface to the nearest lane line would have been very difficult to anticipate and include as a separate Bid Item. The inside east and west bound lanes had numerous cracks that had been repaired with a bitumastic type material prior to the start of the job and as a result of the Contractors pipe laying construction, a significant number of these cracks had opened up into the base area. It is Staffs opinion that these cracks may have opened up for the following reasons: to begin with the condition of the street was marginal at best with obvious visual signs that the street had been repaired prior to the start of the project; due to the highly non cohesive nature of the soil in Crescent Avenue, this material may have migrated towards the District's trench area, thereby causing the adjacent street sections to settle and accentuate the crack opening problem; and there were two major utility corridors running parallel to the contractors trench where poor compaction may have contributed to the failed base areas outside the Contraclors trench. The Contractor took reasonable care to shore the trench and protect the pavement. The damage to the street was primarily due to the preexisting deteriorated street section and poor soil compaction above parallel utilities where failures occurred. This item was negotiated with the Contractor pursuant to Section 10.6(B)2a of the General Provisions. ADDED COST THIS CHANGE ORDER ITEM: $ 45,000.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 6 Calendar Days TOTAL ADDED COSTS THIS CHANGE ORDER $ 94,956.00 TOTAL TIME EXTENSION THIS CHANGE ORDER 17 Calendar Days Page 4 of 5 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 9272"127 CHANGE ORDER Contractor. Elser Constructors C.O. No.: Two (2) Date: November 20, 2002 Job: Orenae-Western Subtrunk Relief Sewer, Contract No. 3-25 Consultant: Staff 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 a 17 calendar day time extension is required for this Change Order, and 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 Date: January 31. 2002 Original Contract Time: 150 Calendar Days Original Completion Date: June 30, 2002 Time Extension this C.O.: 17 Calendar Days Total Contract Time Extension: 67 Calendar Days Revised Contract Time: 217 Calendar Days Revised Final Completion Due Date: September 5, 2002 Time Subject to Liquidated Damages: NIA Actual Final Completion Date: September 5, 2002 Original Contract Price $ 1,159,990.00 Prev. Authorized Changes $ 24, 200.00 This Change (Add) (Bedust) $ 94,956.00 Amended Contract Price $ 1,279,146.00 Page 5 of 5 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Elser Constructors C.O. No.: Two 2 Date: November20. 2002 Job: Orange-Western Subtrunk Relief Sewer, Contract No. 3-25 Consultant: Staff Board Approval Date November 20, 2002 ORANGE COUNTY SANITATION DISTRICT Recommended by: John D. Linder P.E. Engineering/Construction Manager Date Approved by: David A. Ludwin, P.E. Director of Engineering Date Accepted by: Elser Constructors Contractor Date Page 1 of 3 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX $127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Elser Constructors, Inc. No.: Three 3 Date: November 20, 2002 Job: Orange-Western Subtrunk Relief Sewer Contract No. 3-25 Consultant: Staff Amount of this Change Order(Add)(13edust) $ 2,346.00 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 —ADJUSTMENT OF ENGINEER'S QUANTITIES Add: Item Unit Description From To Diff U.P. Total 3 LF 21-inch VCP 2,658 2,664 6 $391 $2,346 TOTAL COST THIS CHANGE ORDER: $2,346.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 2 of 3 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Elser Constructors, Inc. No.: Three 3 Date: November 20. 2002 Job: Orange-Westem Subtrunk Relief Sewer, Contract No. 3-25 Consultant: Staff 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 time is required for this Change Order, and 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 Date: January 31, 2002 Original Contract Time: 150 Calendar Days Original Completion Date: June 30, 2002 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 67 Calendar Days Revised Contract Time: 217 Calendar Days Revised Final Completion Due Date: September 5, 2002 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: September 5, 2002 Original Contract Price $ 1,159,990.00 Prev. Authorized Changes $ 119,156.00 This Change (Add) (Deduct) $ 2,346.00 Amended Contract Price $ 1,281,492.00 Page 3 of 3 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Elser Constructors, Inc. No.: Three 3 Date: November 20, 2002 Job: Orange-Westem Subtrunk Relief Sewer, Contract No. 3-25 Consultant: Staff Board Authorization Date: November 20,2002 ORANGE COUNTY SANITATION DISTRICT Recommended by: John D. Linder, P.E. Engineering/Construction Manager Date Approved by: David A. Ludwin, P.E. Director of Engineering Date Accepted by: Elser Constructors, Inc. Contractor Date 4 PDC COMMITTEE Meeting Da Ta, of dr. 11/07/02 11/20/02 AGENDA REPORT Rem Number Item Number PDCO2-78 13(dl Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Umesh Murthy, Engineer SUBJECT: SCRUBBER MONITOR AND CONTROL, JOB NO. J-71-7 GENERAL MANAGER'S RECOMMENDATION (1)Approve a budget amendment of$587,216 for Scrubber Monitor and Control, Job No. J-71-7, for a total budget of$3,319,216; (2) Ratify Change Order Nos. 2 and 3 to Scrubber Monitor and Control, Job No. J-71-7, with Margate Construction, Inc., authorizing an addition of$651,210 and a time extension of 20 calendar days, increasing the total contract amount to $1,905,779; and (3) Accept Scrubber Monitor and Control, Job No. J-71-7, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. SUMMARY Background • Job No. J-71-7, Scrubber Monitor and Control, includes installation of 27 District furnished Vapex scrubber monitoring and control units. The purpose of this project is to optimize chemical usage in the scrubbers, thereby reducing odors and odor complaints. • Lee and Ro, Inc. prepared the plans and specifications and the contract was awarded to Margate Construction, Inc. on December 19, 2001. • Item No. 1 of Change Order No. 2 includes costs to install the Temporary Short-Term Ocean Outfall Bacteria Reduction facility. The District began considering the installation of temporary facilities for bacteria reduction during early spring 2002. By mid-June, the District learned that the Regional Water Quality Control Board was planning to place a bacteria reduction requirement during their regularly scheduled meeting on July 19, 2002 and that the requirement for disinfection would commence on August 12, 2002. • To accomplish this work within the time remaining (less than two months), the District included this work under the J-71-7 contract. This contract was selected as the contract included similar mechanical and electrical work at both plants. nm;:m: MGM. Page 1 • Margate Construction completed the necessary improvements on August 12, 2002 to allow the new facilities to be placed on line by the mandated date from the Regional Board. • All work has been completed by Margate Construction on a time and material basis and the facilities are now in full operation. Contract Schedule Contract Start Date February 18, 2002 Original Contract Completion Date July 27, 2002 Total Number of Change Orders to Date 1 Current Contract Completion Date July 27, 2002 Actual Completion Date August 16, 2002 Days Subject to Liquidated Damages 0 Change Order No. 2 Content Item Description Amount Days Type No. 1 Installation of Temporary Short-Term $632,579 20 Other Ocean Outfall Bacteria Reduction Facilities 2 Modifications to Vapex Panels and $21,131 0 Design Change Caustic Pump Controls Total Change Order No. 2 $653,710 20 Change Order No. 3 Content Item Description Amount Days Type No. 1 Adjustment of Engineer's Quantities ($2,500) 0 Adjustment of Engineer's Quantities Total Change Order No. 3 $2,500 0 Job Completion The contract is now 100% complete. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 1,163,500.00 Previously Authorized Changes $ 91.069.00 This Change (Add) (DBdUGf) $ 651,210.00 Change Orders to Date $ 742,279.00 Percentage Increase to Date 63.80% Amended Contract Price $ 1,905,779.00 • Page 2 Note: Item No. 1 of Change Order No. 2 includes costs in the amount of $632,579 for the installation of the temporary short-term ocean outfall bacteria reduction facilities. This work was not included in the original contract and the total change order percentage would be 9.43% without Item 1 costs. BUDGETIMPACT ❑ This item has been budgeted. (Line Rem: Section E, Page toe) ® This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Staff requests a budget amendment of$587,216. The additional funds requested for this project provide for the Change Order. Funds from contingency are reallocated to construction staff labor and Construction Contract. Please refer to the Budget Information Table. ADDITIONAL INFORMATION None ALTERNATIVES None CEOA FINDINGS This project was included in the Strategic Plan Environmental Impact Report certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order No. 2 4. Change Order No. 3 UM:dm:ba G:VMglobar,Agenda Draft RepodsNDCU-71-7 Board Agenda CO2 COA 11.2M2.dao R. aaooe Page 3 BUDGET INFORMATION TABLE SCRUBBER MONITOR AND CONTROL JOB NO. J-71-7 ORIGINAL CURRENT PRQPOSEO PROI�OSED l`F 7 S Tf�l1>§� }'*' 'ESTIMATED ESTIMATEb BUDGET PR�POSEO TOTAL PROJECTRASK AUTHORIZED PROJECT , REVISED QEQ AU7HDI TION I EIlP€ND{TURF EXPENDED' Q jX�J7�10RITATION BUDGET BUDGET INCRE m ''BUDGET 1T,D11TE REq E8T TO'OICTE. TO UATE(%)- DEdREASE r ,.-., r . Project Development $ 5,000 $ 5,000 It 5,000 $ 5,000 $ 51000 $ 5,000 t00% Studies/Pennitfing $ 101,000 $ 101,0001 $ 101,000 $ 101,000 $ 101,000 $ 101.0001 100% Consultant PSA $ 360,000 $ 360.000 $ 360,000 $ 359,951 $ 359.951 $ 325,000 so-/. Design Staff $ 34,000 $ 34,000 $ 34.000 ' $ 34,000 $ 34.000 $ 34.000 100% Consbuction Contract' $ 1,468.000 It 1,899.503 $ 619,213 $ 2,518.716 $ 1,899,503 $ 619,213 $ 2518.716 $ 1.899,503 75% Construction Administration $ 119,000 $ 205,500 $ 5,000 $ 210.500 $ 205,500 $ 5.000 $ 210.500 $ 202,000 96% Construction Inspection $ 41.000 $ 85.000 $ 5,000 $ 90,000 $ 85,000 It 5,000 $ 90,000 $ 78.000 87% Contingency $ 254,000 $ 41.997 $ 41,99 $ $ - $ 0% PROJECTTOTAL $ 2.382.000 $ 2,732,000 $ 587.216 $ 3,319,216 $ 2.689,954 $ 629,213 $ 3,319.167 $ 2A44,503 80% Reimbursable Costs 1 $ - $ $ - $ 0% PROJECT NET $ 2.332.000 $ 2,732,000 1 $ 587.216 $ 3.319,216 1 $ 2,689,954 S 629,213 $ 3,319J67 1 $ 2.644.503 80% Construction Contract costs includes District Furnished Equipment CHANGE ORDER STATUS REPORT SCRUBBER MONITOR AND CONTROL JOB NO. J-71-7 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED ITEM DATE COST TO DATE INCREASE TIME TIME TO DATE (CUMULATIVE) (DAYS) (DAYS) CONTRACT 2/18/2002 $ 1,163,500 $ 1,163,500 160 160 CO NO. 1 9/25/2002 $ 91,069 $ 1,254,569 7.83% 0 160 , bmP8.1�cU ;errME ' .e�y', §vu Fm¢ e iq' eaee a - a NOW EDMS OD3741982 - Page 1 of 4 W ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction. Inc. C.O. No.: Two 2 Date: November 20, 2002 Job: Scrubber Monitor and Control. Job Number J-71-7 Consultant: Lee and Ro Inc. Amount of this Change Order(Add) (Deduet)$653.710.00 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 —INSTALLATION OF TEMPORARY SHORT-TERM OCEAN OUTFALL BACTERIA REDUCTION FACILITIES This item is for labor, material, and equipment to construct the temporary short-tern ocean outfall bacteria outfall facilities. Work description is as follows: A. Plant 1 Bleach Station: Piping was installed from the three District furnished bleach tanks to two new bleach pumps and secondary clarifiers. Diaphragm pressure relief valves, gas relief valves and a calibration tank were also added. Two VFD controls were installed to the new bleach pumps. A prefabricated building including necessary electrical work was installed for the computer cabinet, flowmeters, and controls. B. Plant 2 Bleach Station: includes modifications to three existing pumps and associated piping, valves, and appurtenances. Also includes pump discharge piping and fittings from the bleach station to the clarifiers and headworks. C. Plant 2 Sodium Bisulphite Station: Two new pumps and associated piping, valves, and fittings were installed. Pump discharge piping was installed from the station to COBS. A prefabricated building including necessary electrical work was installed for the flowmeters, computer cabinet, and controls. D. Plant 2 Effluent Sampler Building: Rebuilt sampler station and modified necessary piping. Cost break down is as follows: Item Description Costs No. 1 Labor Cost $227,456 2 Materials Cost $284,140 3 Equipment Cost $19.931 4 Overhead, markup, profit, and bond $101.052 costs Total $632,579 Page 2 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Two 2 Date: November 20, 2002 Job: Scrubber Monitor and Control, Job Number J-71-7 Consultant: Lee and Ro, Inc. This change was on the critical path of the construction schedule and a time extension of 20 calendar days was necessary to complete work on this item. This work was not included in the contract documents and was accomplished by the Contractor's force account pursuant to Division 1 Section 40.13.2 of the General Requirements. Reference District's Field Change Orders No. 9 and Margate Construction Letter and Backups Dated September 16, 2002. ADDED COST THIS CHANGE ORDER ITEM: $632,579.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 20 Calendar Days ITEM 2—MODIFICATIONS TO VAPEX PANELS AND CAUSTIC PUMP CONTROLS This item is for labor, material, and equipment to perform the following work: A. Vapex panel modifications: Work included adding fuses to 27 Vapex units (terminal strips) and motor operated valves (MOV) to the make up water system. These changes required revisions to the I&C and As-built drawings. The additions were required to prevent tripping of the Vapex panels when the MOVs were being operated. Cost of this change is$14,948.00. B. Modifications to caustic pump panel at Scrubber I: This work included power and control wiring modifications at Scrubber I. These modifications were necessary because Scrubber I was converted to a bio scrubber during the time between design and construction. Cost of this change is $6,183.00. Item A was negotiated with the Contractor pursuant to Division 1, Section 40.6.1 of the General Requirements and Item B was accomplished by the Contractor's force account pursuant to Division 1, Section 40.B.2 of the General Requirements. Reference District's Field Change Order No. 7 and Margate Construction's Letter Dated July 26, 2002. ADDED COST THIS CHANGE ORDER ITEM: $21,131.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL COST THIS CHANGE ORDER: $653,710.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 20 Calendar Days Page 3 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Margate Construction. Inc. C.O. No.: Two 2 Date: November 20, 2002 Job: Scrubber Monitor and Control. Job Number J-71-7 Consultant: Lee and Ro. Inc. 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 a 20-calendar day extension of time is required for this Change Order, and 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 Date: February 18, 2002 Original Contract Time: 160 Calendar Days Original Completion Date: July 27, 2002 Time Extension this C.O.: 20 Calendar Days Total Contract Time Extension: 20 Calendar Days Revised Contract Time: 180 Calendar Days Revised Final Completion Due Date: August 16, 2002 Time Subject to Liquidated Damages: 0 Calendar Days Actual Final Completion Date: August 16, 2002 n Original Contract Price $ 1,163,500.00 Prev .Authorized Changes $ 91,069.00 This Change (Add) (9educt) $ 653,710.00 Amended Contract Price $ 1,908,279.00 n Page 4 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Maroate Construction, Inc. C.O. No.: Two 2 Date: November 20, 2002 Job: Scrubber Monitor and Control. Job Number J-71-7 Consultant: Lee and Ro. Inc. Board Authorization Date: November 20, 2002 ORANGE COUNTY SANITATION DISTRICT Submitted by: John D. Linder, Engineering and Construction Manager Date Approved by: David A. Ludwin P.E., Director of Engineering Date Accepted by: Margate Construction, Inc. Contractor Date EDMS 003741993 Page 1 of 3 -y ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor. Margate Construction Inc. C.O. No.: Three 3 Date: November 20, 2002 Job: Scrubber Monitor and Control. Job Number J-71-7 Consultant: Lee and Ro. Inc. Amount of this Change Order (Add) (Deduct) $(2 500..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 — ADJUSTMENT OF ENGINEER'S QUANTITIES Deduct: Item Unit Description From To Difference U.P. Total 3 Each Monthly Schedule Update 6 5 (1) $1,000 (1,000) 4 Each Time Impact Analysis 3 0 (3) $500 (1,500) Total (2,500) CREDIT THIS CHANGE ORDER ITEM: ($2,500.00) TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL CREDIT THIS CHANGE ORDER: ($2,500.00) TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 2 of 3 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Margate Construction, Inc. C.O. No.: Three 3 Date: November 20, 2002 Job: Scrubber Monitor and Control. Job Number J-71-7 Consultant: Lee and Ro, Inc. 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 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 Date: February 18, 2002 Original Contract Time: 160 Calendar Days Original Completion Date: July 27, 2002 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 20 Calendar Days Revised Contract Time: 180 Calendar Days Revised Final Completion Due Date: August 16, 2002 Time Subject to Liquidated Damages: 0 Calendar Days Actual Final Completion Date: August 16, 2002 n Original Contract Price $ 1,163,500.00 Prev . Authorized Changes $ 744,779.00 This Change (Add) (Deduct) $ (2,500.00) Amended Contract Price $ 1,905,779.00 n Page 3 of 3 ORANGE COUNTY SANITATION DISTRICT 108"ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor. Margate Construction. Inc. C.O. No.: Three 3 Date: November 20, 2002 Job: Scrubber Monitor and Control. Job Number J-71-7 Consultant: Lee and Ro. Inc. Board Authorization Date: November 20, 2002 ORANGE COUNTY SANITATION DISTRICT Submitted by: John D. Linder, Engineering and Construction Manager Date Approved by David A. Ludwin P.E., Director of Engineering Date Accepted by: Margate Construction, Inc. Contractor Date EDMS 003741999 ^1 PDC COMMITTEE MeletingD10 07 to T11/2o/odr AGENDA REPORT Item Number Item Number 700O2-79 13(e) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Julian Sabri, Project Manager SUBJECT: CENTRAL GENERATION AUTOMATION, JOB NO. J-79 GENERAL MANAGER'S RECOMMENDATION Approve Professional Services Agreement with Malcolm Pimie, Inc. for preparation of emission reduction study assessment in connection with Central Generation Automation, Job No. J-79, for an amount not to exceed $253,235. SUMMARY • Emissions of oxides of nitrogen (NOx) and hazardous air pollutants (Haps) from District's Central Generation System(CGS) engines do not meet future South Coast Air Quality Management District (SCAQMD) standards. • The Consultant will perform all investigations, evaluations, and analyses required to make a recommendation for emission control on the CGS engines. A report will be prepared documenting all the work performed and the basis for recommendations. • The Consultant will evaluate the options such as combustion modifications to the engine that may or may not require any additions or modifications to the existing engine equipment. • For each facility option identified, the Consultant will evaluate the following: 1. Regulatory Requirements and Compliance 2. SCAQMD permit requirements and costs 3. Operations and maintenance impacts 4. Economic Evaluation 5. Location of new emission control 6. Tie-ins to electric, gas, water, and other utilities 7. Staffing levels 8. Automation levels and requirements 9. Continuous Emissions Monitoring • The Consultant will recommend the two most promising alternatives, and based on that recommendation will create a master plan for the implementation of the emission control system. Page 1 PROJECT/CONTRACT COST SUMMARY e The authorization is within the project's budget for 2002/03. Funds will need to be reallocated from Construction Contract to Consultant Professional Services Agreement. The total budget of$2,964,000 will not change. See attached Budget Information Table. BUDGET IMPACT ® This item has been budgeted. (Line item: Section 8, Page 97) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project was included in the 1999 Program Strategic Plan Environmental Impact Report (EIR) which was certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. ATTACHMENTS 1. Budget Table 2. PSA Status Report 3. Staff Evaluation of Proposals to Provide Engineering Services JRH:jo GWglobaMgenda D2fl Rep MWDCU-79 AR 110702.d. Page 2 BUDGET INFORMATION TABLE Central Generation Automation JOB NO. J-79 179235 ORIGINAL :, OURRIA1'„ PGppv�,�yED ;PROPOSED FUNDS THIS: PROPOSED ESTIMATED ESTIMATED kPR0JEC.r,;frAS.1KAUTHSi<IZED' P JI=tl1". BUD ift REVISED AUTHORIZED AUTHORIZATION TOTAL EXPENDITURE EXPENDED BUDGET HODO& I R6ABE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE TO DATE(%) $ 32,000 $ 32,000 $ 32,000 $ 32.000 $ 32,000 100% Studles(PornnittIng $ 30.000 $ 30,000 $ 30,000 $ 30,000 $ 14,000 47% Consultant PSA $ 74,000 $ 179.235 $ 253,235 $ - $ 253,235 $ 253.235 $ 0% Design Staff $ 52,000 $ 52.000 $ - $ 62,000 $ 52,000 $ 39,000 75% Construction Contract $ 2.255,000 $ 179.235 $ 2,075,765 $ 8,000 $ - $ 8,000 $ 0% Construction Administration $ 129,000 $ 129,000 - $ 80,000 $ 80,000 $ 80,000 100% Construction In ectlon $ 133.000 $ 133,000 $ 80,000 $ 80.000 Is 80.000 1 100% .Contingenev $ 259,000 $ 259.000 PROJECT TOTAL $ - $ 2,964,000 $ - $ 2,964,000 , $ 230.000 $ 305,235 $ 535,935 $ 245,000 1 46% Reimbursable Costs 1 $ $ PROJECT NET $ - $ 2,964,000 1 $ - $ 2,964,000 11 $ 230.000 1 $ 305.235 1 $ 535.235 $ 245.000 1 46% 6:Ywp.dlalan&bsp csU331a�31IA Coral Award BIT Farm ReWsed W.4,2000 Professional Services Agreement Status Report Central Generation Automation Job No. J-79 Total Project Budget: $ 2,964,000 Consultant: Malcolm Pimie, Inc. Start Date of Project: Pending Date Addendum Description Cost Accumulated Costs Pending Original PSA l Emission Reduction Study $ 253,235 $ 253,235 CADowments and SeMVsWbdUly D=nnanbWrogecbU•79V•79_PSA Statue Repod.dx 10/17/02 Revised OUMS 4 CENTRAL GENERATION AUTOMATION CONTRACT NO. J-79 Staff Evaluation of Proposals to Provide Engineering Services The following interested consulting firths received Requests for Proposals: • Black&Veatch • Brown &Caldwell • Applied Utilities Systems • Malcolm Pirnie, Inc. • Power&Compression Systems Black&Veatch opted out of providing a proposal for this project. As a result,there were four responsive proposals received on September 10, 2002. Each member of an in- house review panel individually ranked the proposals. The review panel consisted of five members. Each proposal was graded from 1 to 10(10 being best) in five weighted categories described below: 1. Project Approach and Understanding of the Scope of Work(Weight: 10)— Rates the team's understanding of the Scope of Work included in the RFP and their approach to the work, methodology, and task breakdown. 2. Plan for Managing and Performing the Work (Weight: 6) —Rate the team's project management techniques and methods and procedures for performing the tasks. 3. Applicable Staff Qualifications (Weight: 6)—A comparison of the team's educational background and professional qualifications as they relate to the Scope of Work for this project. 4. Applicable Related Project Experience (Weight: 6)—Rates the team's overall total number of years experience and roles performing engineering services as it relates directly to the design and construction of this project. This also rates the team's recent experience on applicable projects as it relates directly to the design and construction support for this project. 5. Team Organization and Use of Subconsultants (Weight: 2)—Addresses the appropriateness of assignments to consultant staff and/or subconsultants to consultant teams. The written proposal rankings were compiled on September 26, 2002. The top two ranked firms were invited to interview on October 8, 2002and again individually ranked. The following summarizes their final ranking: 1. Malcolm Pimie, Inc. 1,282 Points 2. Brown & Caldwell 1,186 Points The following is a summary of how the evaluation team collectively viewed the top ranked consultant: Malcolm Pimie, Inc. Malcolm Pimie, Inc. had the highest-ranked proposal based on meeting the Orange County Sanitation District's requirements for understanding of the Scope of Work, project approach, management techniques, applicable project experience, team organization and use of sub-consultants. Malcolm Pimie's quality control and quality assurance (QA/QC) procedures were excellent. The staffs qualifications are good. The staff has the best similar and most recent project experience. The proposed project team, including sub-consultants, is well organized based on specialties and division of work. Fee Proposals After the final ranking of the proposals, the sealed fee proposals submitted by the two interviewed firms were opened. The two finalists fees were almost equal in fees(within 3%of each other). Staff recommends Malcolm Pimie, Inc. be awarded the Professional Services Agreement for Central Generation Automation,Contract No. J-79,for a total fee not to exceed $253,235 WDC:sa EDMS OD3742532 TABLE 1.0 CENTRAL GENERATION AUTOMATION, CONTRACT NO. J-79 STAFF EVALUATION OF PROPOSALS FOR CONSULTING SERVICES Firm Brown & Caldwell Malcolm Pirnie, Inc. Reviewer A 226 256 Reviewer B 282 290 Reviewer C 278 288 Reviewer D 188 204 Reviewer E 212 244 Total Score (2520 Points Maximum) 1186 1282 Average Score (360 Points Maximum) 237 256 Design Workforce Estimate (Man-hours) 1,927 1,662 Construction Workforce Estimate (Man-hours) N/A N/A Total Workforce Estimate (Man-hours) 1,927 1,662 Proposed Design Schedule (Weeks) 20 20 Proposed Fee, Not to Exceed $245,600 $253,235 PDC COMMITTEE Meeblg oaUt Tuetl.ofgir. Il107102 11/20/02 AGENDA REPORT lrem Number Jim Number MCO2-80 13(n Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Brian Bingman, Project Manager SUBJECT: TRICKLING FILTER REHABILITATION AND NEW CLARIFIERS JOB NO. P1-76 GENERAL MANAGER'S RECOMMENDATION (1)Approve budget reallocation of$2,645,000 for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, with no change in total project budget; (2)Approve plans and specifications for Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, on file at the office of the Board Secretary; and (3)Authorize the General Manager to establish the date for receipt of bids for Trickling Filter Rehabilitation and New Clarifiers, Job No. Pt-76. SUMMARY Background • The 1999 Strategic Plan identifies a need to rehabilitate the existing trickling filters and add new clarifiers. • OCSD retained Black& Veatch Corporation (B&V)to perform engineering services for the design and construction support for the trickling filters and new clarifiers. • The design phase is now complete. • The Engineers Estimate is greater than the construction contract budget. The current construction contract budget is $36,500,000. The final Engineers Estimate is $39,145,000. • Increase in the Engineers Estimate is mainly from the following items: 1. Excess soil which was initially thought to be kept on-site will have to be sent off- site. With all the projects in design now and in the near future, there will be no room for dirt storage. This increased the Engineers Estimate by $600,000. 2. Separate flow streams into each trickling filter including independent flow meters and controls to allow for individual operation. Individual operation will allow us to fine tune each trickling filter to optimize performance and maintain the best effluent quality possible. It will also enable us to treat flows from both the east, Primary Clarifiers 1-5, and west, Primary Clarifiers 6-31, side at the same time. This addition increased the Engineers Estimate more than $1,000,000. G:p y.geLemEel&vrE II,..ft� O03Q rd geeMe Rrp' 11 ION.I]III.PI.)8 Uoc R .a NIOM Page 1 3. Increased power building size to allow for future connection. With the expansion to full secondary treatment, space within the plants will be very limited. We will be able to more efficiently provide for future electrical load with the larger power building. This item increased the Engineer's Estimate approximately $450,000. 4. Redundant trickling filter ventilation system to guarantee proper air flow and continuous operation. Trickling filters, as with any aerobic biological process, require a constant supply of oxygen. This redundant ventilation system will dramatically increase the likelihood of a consistent flow of air through the trickling filters. This item increased the Engineer's Estimate by more than $300,000. 5. Increased pipe depth on trickling filter effluent line to allow for future full secondary pipe installation. This increased the Engineer's Estimate approximately$200,000. PROJECTICONTRACT COST SUMMARY No authorization of expenditures is being requested. The attached Budget Information Table shows a proposed construction contract budget increase of$2,645,000. Money will be move from contingency to cover the increase in construction contract. BUDGETIMPACT ® This item has been budgeted. (Line item:Section a, Page 70) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The existing trickling filters and clarifiers at Plant No. 1 have reached the end of their useful lives. Three of the trickling filters and the remaining clarifier were constructed in 1964. The fourth trickling filter was constructed in 1974. Black& Veatch Corporation (B&V) evaluated whether a complete rehabilitation of the existing facility or a new facility was more beneficial to the District. A new facility was recommended at the conclusion of the evaluation and agreed upon by the Board of Directors on December 19, 2001. An addendum was added to B&V's Professional Services Agreement for the design of a new trickling filter facility. The new facility includes the following items: • Two new trickling filters which are 166 feet in diameter and will hold twenty feet of plastic filter media • Two new 175 foot diameter clarifiers • A new Power Building 8 • Two effluent lines, one to the Groundwater Replenishment System and one to the interplant line • Primary effluent design capacity of 30 million gallons per day G.WWWYUgerG.o,M R.aN DCW1.15 SN lR.Ycubn 1IOM2. R.e ;vl a Page 2 • Design effluent quality of at least 20 mg/I for both Biochemical Oxygen Demand and 9 Total Suspended Solids ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project is included in the previously approved 1999 Strategic Plan Environmental Impact Report (EIR). The 1999 Strategic Plan (EIR) was certified on October 27, 1999, and the Notice of Determination was filed on October 29, 1999. ATTACHMENTS Budget Information Table BEB:jo G N,Bba��UN RepiISVOCPt.]6 BWpel Rea'euYm 11@@ Ox R-- a,ase Page 3 BUDGET INFORMATION TABLE TRICKLING FILTER REHABILITATION AND NEW CLARIFIERS JOB NO. P1-76 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTlTASK AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED AUTHORIZATION TOTAL EXPENDITURE EXPENDED BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE TO DATE(%) Project Development $ 13,000 $ 45,000 $ - $ 45,000 $ 42,000 $ 42,000 $ 53,535 127% Studies/Permitting $ 58,000 $ 45,000 $ - $ 45,000 $ 41,000 $ 41,000 $ 50,000 122% Consultant PSA $ 1.200.000 $ 4,114,479 1 $ - $ 4.114,479 $ 4,114.479 $ 4,114,479 1 $ 2,862,046 70% Design Staff $ 280,000 $ 308,000 $ - $ 308,000 $ 280.000 $ 280,000 $ 185,000 66% Construction Contract $ 13,100,000 $ 36,500,000 $ 2,645,D00 $ 39,145,000 $ Construction Administration $ 969,000 $ 1,753,000 $ - $ 1,753,000 $ Construction Inspection $ 528,000 $ 1.764,621 $ - $ 1,764,521 $ Contin ency $ 4,852,000 $ 5.470.000 $ (2.645.000) $ 2.825.000 $ PROJECT TOTAL $ 21.000,000 $ 50,000.000 $ - $ 50.000,000 $ 4,477,479 $ - $ 4,477,479 $ 3,170,581 71% Reimbursable Costs PROJECT NET 1 $ 21.000.000 1 $ 50,000,000 $ - $ 50,000,000 $ 4,477.479 1 $ - $ 4,477,479 $ 3,170,581 71% EDMSM-76/Agenda Repo"PorearaturmIAgenda Ra,WAgenda ReproNBudget Table for Addendum No 1 I� PDC COMMITTEE NeeUngDare To Bd.ofDir. ` 11/07/02 11/20/02 AGENDA REPORT Item Number Item Number PDCO2-81 ON) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Morris Ying, Engineer SUBJECT: ADDENDUM NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT WITH PARSONS ENGINEERING SCIENCE, INC., FOR AREA CLASSIFICATION STUDY IMPLEMENTATION PLAN, PLANT NOS. 1 AND 2, JOB NO. J-35-2 GENERAL MANAGER'S RECOMMENDATION Approve Addendum No. 4 to the Professional Services Agreement with Parsons Engineering Science, Inc., for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, providing for changes in the Scope of Work for an additional amount of$140,667, for a total amount not to exceed $3,411,411. SUMMARY • Addendum Nos. 1 and No. 2 were issued to cover an increase of the design effort required for this project. Since the final design phase started in May 2001, the project has become more complex due to added process control and instrumentation upgrades as part of the Orange County Sanitation District's (District) ongoing efforts to automate the facilities. • Addendum No. 3 has been issued to cover the construction support services to assist the District with the engineering support for the 34-month construction phase of the project. • The proposed Addendum No. 4 covers the additional costs incurred during the engineering design phase. During the detailed design, the Consultant became aware that the originally proposed budget was not adequate for all the required work items including evaluations to reduce construction costs. The detailed evaluations incorporated cost saving approaches which reduced the construction costs by over $3.6 million. In order to meet the demanding design schedule for this safety-related project, the Consultant elected to complete the work as rapidly as possible at risk, and to seek additional compensation after the construction bidding. After careful evaluation of the situation, the District finds that the additional effort was necessary for the completion of the project design and that it is proper to compensate the consultant for a portion of the increased design cost. R" .c: ermse Page 1 PROJECT/CONTRACT COST SUMMARY The total project budget for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, is $29,345,000. Authorization of an additional $140,667 is requested for the Consultant Professional Services Agreement (PSA), thereby increasing the total PSA authorization to $3,411,411. BUDGETIMPACT ® This item has been budgeted. (Line Rem: Section 8 — Page 140) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Transfer of funds is being requested from Contingency to Consultant PSA. The overall budget is not being increased. Please see the attached Budget Information Table. ADDITIONAL INFORMATION Background The Orange County Sanitation District's (District) action plan to comply with National Fire Protection Association (NFPA) 820, Standard for Fire Protection in Wastewater Treatment and Collection Facilities, resulted in the release of the initial Area Classification Study for both Plants. The preliminary engineering for the Area Classification Study for Plant Nos. 1 and 2, Job No. J-35, was completed in August 1999 by Brown and Caldwell. The report provided the basis for an implementation plan to make modifications to existing facilities to meet NFPA 820 requirements. In May 2000, the District issued a PSA to Parsons Engineering Science, Inc. for the final design of Job No. J-35. Addendum No. 4 with Parsons Engineering Science, Inc. consists of the following additional and reworks items: Value Added Design Efforts: This Rem involved evaluation of alternative design approaches to reduce construction costs. Many of these alternative design approaches were implemented reducing the construction costs to a level well below the estimates in the Project Study Report. As an example the original Preliminary Design Report called for the gas piping to remain in the tunnels and for the adjacent electrical equipment to be upgraded. The alternative design approach relocates the gas piping to a location above the tunnels allowing the existing electrical equipment to remain in place. This example and other changes to the design resulted in an estimated reduction in construction costs of $3 million. The additional effort incurred for this Rem was 1390 man-hours. w,+w:ernes Page 2 v ' Background Drawings: The consultant had to create background drawings which were to be provided by the Orange County Sanitation District (District), but were unavailable due to schedule slip of the District's document scanning project. The additional effort incurred for this item is 710 man-hours. Evolving Engineering Standards: This effort is to incorporate the latest Design Standards into the plans and specifications. The new requirements are not in the consultant's original Scope of Work. The new standards required changes to the instrumentation and control, as well as electrical control circuit design requirements. The additional effort for this item is 878 man-hours. Changing Field Conditions: During the design of the project, changing conditions necessitated redesign. Evolving control strategies and District standards impacted the Electrical and Control System design. The operational requirements of the plant required additional engineering and sequencing. The additional effort incurred forthese items is 246 man-hours. The total of the additional effort expended was 3,224 man-hours. The costs, with overhead, for the additional man-hours and related direct costs are $281,334, not including profit. Staff has negotiated additional fees equal to $140,667, which is 50% of the request Consultant's costs. Staff recommends approval of Addendum No. 4, which provides for additional design engineering compensation, increasing the contract amount $140,667 for a total amount not to exceed $3,411,411. ALTERNATIVES No alternatives to the mandated Area Classification Studies and Implementation Plan are available. This project is necessary to ensure compliance with OSHA safety requirements as defined by the National Electrical Code. CEQA FINDINGS This project is categorically exempt from CEQA. A Notice of Exemption was filed on November 30, 2001. ATTACHMENTS 1. Budget Information Table 2. Professional Services Agreement Status Report 3. Parsons' Letter Dated July 20, 2002 MCY:sa GlntgiobaMgenda Draft Repor TDQAR J-33 2 11072002.doc an+ma: aao� Page 3 el BUDGET INFORMATION TABLE Area Classification Study Implementation Plan JOB NO. J-35-2 ORIGINAL; CURRENT PROPOSED PROPOSED :FUNDS THIS- PROPOSED ESTIMATED ESTIMATED PROJECTITASK AUTHORIZED PROJECT ' !BUDGET REVISED AUTHORIZED, AUTHOR7ATIONL TOTAL EXPENDITURE EXPENDED BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE IODATE(%)` Project Development $ 131,911 $ 119.000 $ 119,000 $ 106.000 $ 106,000 $ 79,443 75% Studles/PermitUng $ 920,876 $ 797,000 $ 797,000 $ 682.000 $ 682,000 $ 666,770 98% Consultant PSA $ 2.825,000 $ 3.275,000 $ 140.667 $ 3,415,667 $ 3,270,744 $ 140.667 $ 3.411.411 $ 2,333,721 68% Design Staff $ 529,000 $ 569,000 $ 569,000 $ 638,000 $ 638,000 $ 407.374 64% Construction Contract $ 17,242,000 $ 19,800,000 $ 19,800,000 $ 14,066.442 $ 14,066,442 Constmcflon Administration $ 656.000 $ 656,000 $ 656,000 $ 656,000 $ 656,000 Construction Inspection $ 662.000 $ 662,000 $ 662,000 $ 662,000 $ 662.000 Contingency $ 4,952,000 $ 3,467,000 $ 140,667 $ 3,326,333 PROJECT TOTAL 1 $ 27,918,787 $ 29,346,000 $ 29,345,000 $ 20,081,186 $ 140,667 $ 20.221,853 $ 3,487,308 17% Reimbursable Costs PROJECT NET 1 $ 27,918,787 1 $ 29,345,000 1 $ 29,345,000 $ 20,081,186 $ 140,667 $ 20,221,853 1 $ 3.487,308 17% `Budget amount were revised by 6/26102 Board CnRleNetWIPRe be addegUW d J.3 2Meet Inf.Wn T$Ne20021107.A$ID$trid$ Professional Services Agreement Status Report Area Classification Study Implementation Plan Job No. J35-2 Total Project Budget: $29,345,000 Consultant: Parsons Engineering Science, Inc. Start Date of Project: May 24, 2000 Date Addendum Description Cost Accumulated Costs Area Classification Study Implementation 5124/00 Original PSA Plan for Plant Nos. 1 and 2 $2,255,680 $2,265.680 12/20/00 1 Test Digester Value Engineering $24,900 $2,280,580 1/21/02 2 Addition one utility PLC and six remote $24,900 $2,305,480 I/O's for Plant No. 2 6/26102 3 Construction Support Services $965,264 $3,270,744 Pending 4 Additional Design Effort $140,667 $3,411,411 EDMS 003741M. 10/31/02 Revised 1211&01 m� - PARSONS V 100 West Walnut Street•Pasadena.Calitomle 91124•(626)440-200)•F. (626)440.2630•wxw."mmns.c= July 20, 2002 Mr. Morris Ying, Project Manager Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Subject: Purchase Order Number 100720 Area Classification Studies Implementation Plan Project J-35-2 Request for Additional Compensation Dear Mr. Ying, The purpose of this letter is to request additional compensation for the execution and delivery of the design for the Area Classification Study Implementation Plan, Plant Numbers 1 and 2, Job J-35-2. The Parsons/Lee&Ro team was awarded the work to design the modifications and produce construction bid documents for the purpose of bringing Plant Numbers 1 and 2 into compliance with the National Fire Protection Association(NFPA) 820, Standard for Fire Protection in Wastewater Treatment and Collection Facilities, 1999 edition. During the course of perforating the work, the Parsons/Lee&Ro design team performed additional work for which we are requesting compensation. Attached is a description of the work performed and the associated hours consumed performing that work. Parsons/Lee&Ro are requesting compensation for the actual costs (direct burdened labor and overhead,without profit) in the amount of two hundred eighty one thousand three hundred and thirty-four dollars($281,334)for this work. Because of the safety sensitivity of the J-35 project, Parsons/Lee&Ro continued to perform the work necessary to complete the detail design and support the bidding process, rather than initiating a change order request and the interruption to the work the processing of a change order would cause. The design team also did not cut corners and expended significant efforts to identify and design solutions more effective than many presented in the Preliminary Design Report thus reducing the construction costs and saving the District over 3 million dollars. The efforts of your staff in working with us in pursuing these alternative approaches should be commended. Mr. Mortis Ying,Project Managaer Orange County Sanitation District Page 2 of 2 July 20,2002 We are available to discuss any aspect of our requested change order. Please contact the undersigned at(626)440-6227,or our project manager,Ken Fredianelli at(626)440-6110. Sincerely Kenneth J.Deagon Office Manager cc: With Attachment(2 pages) OCSD L. Gibson Parsons K. Fredianelli D. Kasper Project File Lee&Ro S.Ro f J-35-2 Project Area Classification Study Implementation Plan Parsona/Lee&RO Request for Change Order Detailed Back Up Information July 20,2002 The document is an attachment to a letter dated July 19, 2002 sent to the District requesting additional compensation for detail engineering design work performed by Parsons/Lee&Ro for the J-35-2 project. Listed below is a description of the additional work performed with back up information including an accounting of the associated hours consumed in performing the additional work: Each of the incrementally occurring revisions imposed upon the Parsons/Lee&Ro design team were executed in good faith, in keeping with the District's desire to expedite the execution of this safety sensitive project. In the mutual interest of attempting to preserve the project schedule, Parsons/Lee&Ro consciously decided to continue to perform the design revisions without stopping work and requesting additional funding. Background: The negotiated value of the Professional Services Agreement (PSA) executed for the design also included improvements to structures and equipment within the target areas of the plants, such as natural gas piping re-routing and upgrades to existing electrical gear. Ultimately, the construction bids demonstrated the value the team brought to the project by validating the savings in capital improvements even with a scope of work that is expanded from the original cost estimate produced during the study phase. The District's original scope of design for the J-35 project was estimated to be $18,242,000. The 100% design produced by Parsons/Lee&Ro resulted in an engineer's estimate of$17,100,000. The lowbidder quoted $14,600,000 to construct the design, a $3,642,000 saving over the District's original estimate. During the design the Parsons/Lee&Ro team expended efforts beyond the original scope and budget. Despite the additional costs, the design team continued to produce a quality product for the District, without interruption, through and including the bid phase. Parsons/Lee&Ro understand the importance of keeping the safety sensitive J-35-2 project schedule moving forward. Instead of requesting additional money at the time the causes were identified, Parsons/Lee&Ro consciously decided that the potential schedule impact to the J-35-2 project that a Board approved change order would have caused would not be in keeping with the District's best interest by resulting in a potential delay of at least 3 months. The primary areas resulting in additional efforts are documented below: Page I of 2 { I Value Added Design Efforts t The scope of work for J-35-2 project was difficult to define and during design work negotiations, it was agreed that Parsons/Lee&Ro would look for alternative designs that provided a construction cost savings over the modifications recommended in the J-35 Preliminary Design Report. As a result of cost saving approaches, the construction cost was reduced by approximately$3.6 million at the expense of an increased design effort. 1,390 hours Background Drawings The nature of the J-35-2 project is such that the scope of work affects nearly every operating part of both Plants 1 and 2. In order to convey the scope of work on drawings, Parsons/Lee&Ro proposed to make maximum use of existing drawings as backgrounds for the new work to be shown on, thereby minimizing the amount of hours needed to generate those backgrounds reducing the project overall costs. Photographic images were also used wherever possible. Those images were electronically placed onto CAD drawings and some of the work was electronically drawn on top of those photos. At the time the J-35-2 project design was starting, the District was in the process of converting existing hardcopy drawings into electronic format. Unfortunately, multiple drawings were not available electronically when needed necessitating development of the required backgrounds from"scratch." 710 hours Evolving Engineering Standards After submittal of the 60%design documents by Parsons/Lee&Ro,the District's engineering standards continued to evolve. In order for the new facilities to be consistent with the District's new Standards, the design team accommodated those changes by revising the design that had already been largely completed.The changes were associated with instrumentation and controls and electrical control circuit design requirements. 878 hours Changing Field Conditions During the design, several changes to existing plant facilities necessitated redesign and revision of documents. Some of the revisions caused cascading impacts to other completed design drawings and documents. For instance a change to an electrical control circuit potentially affects the MID, instrument loop/tagging drawings, conduit and wiring drawings and material take offs performed in support of estimating efforts. 246 hours Total 3,224 hours Page 2 of 2 PDC COMMITTEE Meetng Date ro Bd.or Dlr. Il/07/02 11/20/O2 AGENDA REPORT Item Number Item Number PDCO2-82 13(h) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Jim Burror, Engineer SUBJECT: INTERIM STRATEGIC PLAN UPDATE, JOB NO. J-40-8 GENERAL MANAGER'S RECOMMENDATION Receive and file Final Interim Strategic Plan Update, Job No. J-40-8, dated September 2002, prepared by Camp Dresser and McKee, Inc. SUMMARY • Since adoption of the Strategic Plan in 1999, significant developments have taken place that will impact the Orange County Sanitation District's (District) operations such as: bans on land application of Class "B" biosolids, persistent beach warnings and closures, urban runoff diversions to sanitary sewers, final design of the Groundwater Replenishment System, lower than projected wastewater flows, and elevated influent ammonia concentrations. • These changes required the District to revisit the 1999 Strategic Plan and provide the Board of Directors, the Public, and District staff with necessary information to determine the appropriate level of treatment for our Ocean Discharge Permit application. • The Draft Interim Strategic Plan Update report was used to develop the Staff Report for the Board of Directors at the June 19, 2002, Special Board Meeting. • The June 19, 2002, Special Board Meeting, Staff Report and accompanying presentation included information related to the five key issue areas. They were: 1. Ocean Monitoring Data and Studies 2. Treatment Alternatives 3. Financial Considerations 4. Regulations and Permitting 5. Public Input • On July 17, 2002, the Board of Directors voted 13-12 in favor of implementing full secondary treatment. • Camp Dresser and McKee, Inc.'s final report contains all the detailed analyses developed for the level of treatment decision. The final report also incorporates the Board of Director's vote on level of treatment and the comments received during the review period and at the June and July Board meetings. 1 PROJECT/CONTRACT COST SUMMARY d No new authorization of expenditures is being requested at this time. See the attached Budget Information Table for more information. BUDGETIMPACT ® This item has been budgeted. (Line item: Board approved budget on 10/24/01.) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) No new authorization of expenditures is being requested at this time. A budget breakdown is included in the attached Budget Information Table for this project. ADDITIONAL INFORMATION The Interim Strategic Plan Update report will serve as a starting point for the planning, design, and construction of full secondary treatment facilities at the Orange County Satiation District (District). There are several on-going efforts that will refine the Interim Strategic Plan Update related to disinfection, biosolids management, and odor control. These on going projects are the Effluent Pathogen Reduction Alternatives, Job No. J-40-8; the Long Range Biosclids Management Plan, Job No. J-40-7; and the Comprehensive Odor Control Assessment (Odor Control Master Plan), Job No. J-71-4. A full Strategic Plan Update, Job No. J-40-9, will be prepared as full secondary treatment planning occurs. The full Strategic Plan Update, Job No. J-40-9, will document the detailed planning of full secondary treatment and include the assessment of other District needs for the collection system and impacts from future regulations. Finally, the executive summaries from the Interim Strategic Plan Update report and the Staff Report to the Board of Directors are attached for additional information. ALTERNATIVES Four alternative treatment levels were presented at the June 19, 2002 Special Board Meeting. The Board of Directors voted 13-12 in favor of implementing full secondary treatment. CEQA FINDINGS None required at this time. CEQA documentation will be developed as part of the implementation of full secondary treatment, as necessary. ATTACHMENTS 1. Budget Information Table 2. Interim Strategic Plan Update Executive Summary 3. Staff Report - Interim Strategic Plan Update, Job No. J-40-8 Executive Summary JB:sa WntglobaMgenda Draft Rep0nSXPDCU40-8 AR.A 2 BUDGET INFORMATION TABLE INTERIM STRATEGIC PLAN UPDATE JOB NO. J-40-8 ORIGINAL CURRENT PROPOSEDPROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTR BUDGETABK AUTHORIZED PROJECT REVISED AUTHORIZED'. AUTHORIZATION TOTAL EXPENDITURE EXPENDED BUDGET BUDGET � INCREASER BUDGET TO DATE REQUEST AUTHORIZATION TO DATE TO DATE(%) DECREASE Project Development 0% StudleslPermlt6n 0% Consultant PSA $ 350,000 $ 627340 $ 627,340 $ 627,340 $ 627,340 $ 594,313 95% Design Staff $ 80,000 $ 80.000 $ 80.000 $ 80,000 $ 80,000 $ 59.209 74% Construction Contract 0% Construction Adminlslration 0% Construction Inspection 0% Contingency $ 10,000 0% PROJECT TOTAL 1 $ 440,000 $ 707,340 1 1 $ 707.340 $ 707,340 $ 707.340 $ 653,522 92% Reimbursable Costs I I I I I I I I I 1 0% PROJECTNET 1 $ 440,000 $ 707,340 1 $ 707,340 $ 707.340 1 1 $ 707,340 1 $ 653,522 92% GMtgbbaMgenda Drab RepW MP=jJd0,s BIT I"a Q SISID WftII Ielwp.dwenMf..mbudpel table c Fa m Re zwl Cd.4,2000 Executive Summary ESA Introduction The Orange County Sanitation District(District)is the public agency responsible for wastewater collection,treatment and disposal for the majority of Orange County, California. The District services residential,commercial and industrial customers in an area of about 470 square miles,which includes 21 cities,three special districts,and portions of unincorporated Orange County. The District's service area is shown in Figure ES-1. The District operates and maintains a 650-mile collection system,22 pump stations,two treatment plants(Plant Nos.1 and 2),two discharge otrtfalls (one primary outfaR and one emergency discharge outfall),and one emergency weir outlet to the Santa Ana River. The District is currently preparing an application for a new ocean discharge permit because the District's current permit will expire in June 2003. The District's current ocean discharge permit requires that the effluent meet a quality that ensures protection of the beneficial uses of the waters of California and complies with the Clean Water Act. The permit includes the 301(h)provision of the Clean Water Act, allowing less than for full secondary treatment based on an ocean discharge of sufficient depth,distance and dilution. This permitted effluent quality,which is rigorously monitored,has been achieved through a blended combination of advanced primary and secondary treated effluents. In preparation for the permit renewal process,the District sought to consider higher levels of wastewater treatment. Although the District has met the conditions of its current permit,and the combination of advanced primary and secondary treatment processes have consistently produced permit-quality wastewater effluent,the District is aware of concerns by some cities,legislative bodies,and members of local communities that a higher quality of wastewater released to the ocean would be preferred. The purposes of this Interim Strategic Plan Update project were: ■ To evaluate the advantages and disadvantages of several possible wastewater treatment alternatives;and, ■ To make relative comparisons between these alternatives. The resulting information was used by the District's Board of Directors to make a recommendation of level of treatment on July 17,2002. Four wastewater level of treatment alternatives were identified and evaluated as part of the project. These alternatives differed in the amount of secondary treatment(or alternative treatment)provided. These alternatives were developed to produce effluents that ranged between current permit conditions and traditional secondary treatment requirements. The four level of treatment alternatives are: CM ES-1 P bow mud s.�w�mzsf memtaa��vwu�wwa w.�sM+mn awm.r.a: .xeaw m.n. xw eh� 1` wwee axr. �� m;y nos arunox .xea �• { a.mawe y =eucx y� uxra•-, or Pin. I P1. No.3 1�aVaYy Lepend ov.a.r g Orange County Boundary =use^ — OCSD Service Area Boundary(471 sq.miles) Unincorporated Area S I\ nulovn. Source:OCSD Figure ES-1 cm Orange County Sanitation District Service Area i Executive Summary ■ Alternative A—Permit limits; ■ Alternative B-50/50 Blend; ■ Alternative C-Full Secondary Treatment;and, . Alternative D-Alternative Treatment. These four alternatives are described further in Section ES.6. The evaluation of alternatives included an assessment of required facilities; development of a capital improvement program(CIP)for each alternative;and an assessment of fee impacts to the community. The majority of the evaluations were completed using assumptions from the 1999 Strategic Plan;however,several key assumptions (such as flow projections)were updated specifically for this project. The District used a two-track process for the Interim Strategic Plan Update project.A technical track and a public participation track proceeded in parallel throughout the project;as technical information was developed,it was discussed with the public through a set of workshops. The District provided technical information and public input to the Board of Directors at a workshop on June 19,2002 The Interim Strategic Plan Update document was prepared prior to any Board decisions on the level of treatment. On July 17,2002,the Board resolved that the District will treat all wastewater discharges into the ocean to secondary treatment standards. ES.2 Public Participation Process As part of the process of developing its Interim Strategic Plan Update,the District sought the input,comments,and suggestions from the residents and businesses that are served by the District. The commitment to actively solicit public comments throughout this project represented a continuation of a relationship with the public that was established in the original Strategic Plan. This public process proved to be very effective in developing solid information on which the Board of Directors made their determinations and set the course for the District's future in 1999. The District established the concept of a Planning Advisory Committee(PAC)and a Rate Advisory Committee(RAC)during the development of the 1999 Strategic Plan. To capitalize on this experience,the District turned to these members to form a new Planning Advisory Committee(PAC2);the PAC2 membership was further broadened through an additional public outreach effort. The PAC2 members provided key support to the project: ■ They reviewed the technical output of the four treatment alternatives under consideration, CM ES-3 ..a,.q.ow e�m�sieorriwrew vnram.w�..y�,or.s�err+.� Execul"Summary ■ They helped to establish the performance measures and evaluation criteria that ' were used to evaluate the alternatives; ■ They provided input,comments,and observations regarding the benefits and problems that might be associated with each of the alternatives,and they provided input from other technical investigations that were occurring elsewhere;and, . They participated in the preparation of a Summary Statement for consideration by the Board of Directors that sought to fairly capture their comments,concerns, thoughts,and ideas. Workshops were the heart of the public participation process. Through a set of five workshops,the PAQ members learned about the project,their role,and the concerns of other members. They also were able to review the results of the technical development and were offered opportunities to express their opinions. Throughout the process,questions were raised and addressed,and for each workshop,minutes were prepared which included supplemental"feedback report" to respond to questions that could not be fully answered during the workshops. The PAC2 members identified 22 values that they wanted to use in thew assessments of the four level of treatment alternatives. Based on these 22 values,the District prepared a consolidated list of four overarching objectives and eleven major sub- objectives: - ■ Protect Public Health o Minimize risk of ocean-related health problems ■ Protect and Respect the Environment o Provide dean beaches and water,and avoid environmental degradation of water,air and land o Maximize efficient use of regional resources o Minimize odor impacts on the community ■ Provide Cost-Effective Services o Maximize reliability of system improvements o Maximize adaptability of system improvements o Minimize cost to ratepayers o Maximize economic/recreational benefits of dean beaches o Maximize resource value of by-products(e.g.,economic value of water, Mosolids and digester gas) cm ES-4 p P10CSMDSaIT gES2.Mrs al Original List of PAC2 Member Values Reorganized List(consolidated Into ob)ecdves(Sub-0blecdves) 1. Cost effective and responsible waste disposal Protect Public Health 2. No environmental destruction • Minimbe risk of oceamelated health problems 3. Amount of open space � —`—^'— — _ „ VWns 4 am 1e ' • _ _.. ___ 4. Protect public health and safety Protect and Respect the Environment S. Respect for the environment • Provide dean beaches and eater,and avid 6. Impact or benefits to the county's other water resources environmental degradation of water(ocean), air(emissions),and land(open space) 7. Provide clean beaches and clean water Wuu.z x s.r•wb+1 8. Certainty that means are effective in achieving benefits _ lie.,"tern.power.natural ize efficient use of gas and land i 9. Assure that other means that can be Implemented u " vxw e,u,em+s by agencies outside OCSD are addressed • Minimize odor impacts on community ^ 10. Impacts on air quality resulting from any new facilities to adjacent communities Provide Coal-Effective Services 11. Advance the level of coastal protection • Maximize reliability,of system improvements 12. Protectlmaximlze economic benefits resulting from clean beaches • Maximize adaptability of system improvements 13. Minimize pollution in ocean and on beaches Ve°110 t (fecal coliform count;viral content;BODICOD;OilfGrease; • Minimize mat to rare payers � Heavy metals,pesticides and hormones;TSS) ecelmmidmcreegonal 14, Consider the economic value of the water treated � • Maximize benefitsof dean beaches 15. Improve and maintain public perception of environmental V.W.12 sad 15 cleanliness • Maximize resource value ofbyprududs(i.e.,economic value of"ter,bioscitls and digester gas) s 16. Minimize use of imported water in Orange County vw..A md+r 17. Maximize resource value of perceived waste products ""• 18. Assure financial accountability Promote Integrated Regional Solutions J 19. Impacts on land and energy resu III ng from various levels • �yfze opportunities to regional sdutions 1 of treatment(e.g.,bicsolids) • Maximize opportunities for system and evaluation ed j 20. Provide for adaptability If assumptions are subject �. - - - - -"` ""`"' !' access of information for P b� P 1 d, analysis and evaluation to significant uncertainty 21. Provide a system simulation tool that provides holistic predictive _ results for various alternatives aol.a: 1z•Ca' 0WwmMmwa to eaw,W,y eeaumM•UgNtl wmmemuxasna 22. Complete comparison to secondary treatment w mww. evousednamaa,cdaazna.s +vn; Figure ES-2 cone Development of Objectives and Sub-Objectives for Alternatives Comparison Executive Summery ■ Promote Integrated Regional Solutions o Maximize opportunities for regional solutions o Maximize opportunities for systems modeling/web-based access of data for analysis and information The consolidation of the PAC2 member's values into the objectives and sub-objectives is shown in Figme ES-2. These objectives and sub-objectives were used to evaluate the four level of treatment alternatives. As a key part of the workshop process,the District prepared a Summary Statement to compile the technical information presented to the PAC2 members and the PAC2 objectives and sub-objectives. The Summary Statement was a tool that documented the technical and public outreach activities,and it enabled the PAC2 members to track and share comments on each level of treatment alternative. Most importantly,the Summary Statement included a narrative discussion of each alternative in which the relative advantages and disadvantages were summarized. The Summary Statement was a key component of the information package that was provided to the Board of Directors as they considered the level of treatment question and the future direction of the District. Several key PAC2 comments on the treatment alternatives are highlighted below. The complete PAC2 comments on the four treatment alternatives are presented in the Summary Statement(Appendix B): ' ■ There was a consensus at the May 15,2002 workshop that the Board of Directors should not consider Alternative A as a viable option. Among other disadvantages, it was considered unacceptable to offer a lower level of treatment than is currently provided. ■ The PAC2 indicated a preference for a combination of Alternatives C and D. This combination would achieve traditional secondary treatment effluent requirements (30 milligrams per liter of biochemical oxygen demand or BOD,and 30 mg/L total suspended solids or 1'SS)and would comply with the Clean Water Act without the 301(h) provision. The PAC2 also felt that the treatment of wastewater should provide for a clean ocean,be of a reasonable cost,should not adversely impact the environment (land,air,or water),and protect public health and safety.Respect for the wider region's environment-land use,air and water quality-should also be a consideration. The PAC2 felt that the use of secondary treatment,including but not limited to,the activated sludge process,could be cost-effective,and the inclusion of microfiltration or other alternative technology should also be explored. ■ It was suggested that Alternatives C and D should be based on the level of treatment provided,not a specific technology. ■ It was noted by some PAC2 members that Alternative D represented the most expensive choice,was an unproven method,and would require a permit based on CM ES-6 o:�uw.�wa..m cxamunrwaa==v rwne,.n.�..s�wE+ma..a�rao� Executive Summary the 301(h)provisions of the Clean Water Act,and consequently appears less favorable than Alternative C. ■ Some PAC2 members expressed that Alternative C is the only acceptable choice. It would remove more solids(than A and B) and would not require a permit based on the 301(h)provision of the Clean Water Act. ES.3 Updated Planning Assumptions A consistent set of assumptions provided an equal basis of comparison between the various level of treatment alternatives. For the purposes of this project,the 1999 Strategic Plan served as the source for most of the planning assumptions. However, several assumptions were revised based on changed conditions within the District All of the assumptions should be reviewed and refined when a new Strategic Plan is developed. The revised planning assumptions that were updated in this project included: ■ Flow Assumptions for New Projects: As part of the effort to generate updated flow projections,new projects within the District's collection system that were introduced established since completion of the 1999 Strategic Plan were identified. These projects included dry weather diversions,dairy washwater diversions,and water conservation activities. Current flows were estimated for the projects,were projected through 2020,and were incorporated into the updated flow projections. ■ Updated Point Source Flow Projections: Updated point source flow projections were obtained from the Santa Ana Watershed Protection Agency(SAWPA) and the Irvine Ranch Water District(IRWD). Both agencies discharge wastewater into the District's wastewater collection system The updated point source flows were incorporated into the updated flow projections. ■ New Population-Based Wastewater Flow Projections: Using updated flow information,including recent flow data from the District,new wastewater flow projections were prepared. Population-based flow projections were calculated by multiplying the service population by the wastewater unit flow coefficient. The Year 2020 population projections provided by the Center for Demographic Research(CDR)for the 1999 Strategic Plan were compared with recent Year 2020 population projections from CDR.The 1999 Strategic Plan population data was used since the recent population projections were less than three percent lower than the 1999 Strategic Plan projections. The current unit flow coefficient was calculated at 104 gallons per person per day (gpcd). Six different projections of the unit flow coefficient through 2020 were evaluated,ranging from a rebound to the 1999 Strategic Plan projection of 125 gpcd(maximum projection) to maintaining the current unit flow coefficient of 104 gpcd (minimum projection). Following extensive discussions with the District,a linear rebound in the unit flow coefficient from 104 gpcd currently to 115 gpcd in Year 2020 was selected. The shape of this projection curve also was consistent with flow projection information provided by the Metropolitan Water District of Orange County(MWDOC)based on projected cm ES-7 ..n.+w ram�aumanos.+o�rwx�aE,mx.so...rf+ma+s...,mo Executive Summary water usage rates. The average dry weather flow(ADWP)and peak wet weather flow(PWWF) projections are summarized in Tables ES-1 and ES-2. Santa Ana River Interceptor(SARI)Flow Routing: Secondary effluent from Plant No. 1 will provide source water to the Groundwater Replenishment(GWR)System assuming Phase I begins operation in 2005. A portion of the wastewater that is tributary to Plant No. 1 includes flows from the SARI trunk;the SARI trunk flow,in turn,includes components from a number of commercial and industrial sources. Based on concerns expressed by the California Department of Health Services (DHS) about accepting treated SARI flows into the GWR System,options for diverting SARI flows to Plant No.2 and replacing the flows at Plant No.1 were investigated. A preliminary evaluation was completed for three potential options, and a detailed evaluation was completed for two preferred options,Options 1A and 1B. Option lA diverts all SARI flows(average dry weather and peak wet weather) to Plant No.2,whereas Option 1B only includes diversion of average dry SARI flows. Both options also include means to periodically divert flow that is normally tributary to Plant No.2 to Plant No.1 to provide adequate flows for the GWR System. Option IA was selected for the Interim Strategic Plan Update because it is a more conservative option. Plow projections to each plant were generated using SARI Option IA and are summarised in Table ES-3. ■ Air Quality Assumptions: Updated air quality assumptions for the Interim Strategic Plan Update included separate tracking of odor control costs,inclusion of volatile organic carbon(VOC) control for all new treatment facilities,and formaldehyde control for the engine exhaust from the District's Central Generation (CENGEN) facilities located at both Plant Nos.1 and 2. n Biosolids Assumptions: Biosolids management in the 1999 Strategic Plan was based on Class B biosolids production followed by off-site land application. Recent changes in local ordinances have been passed,or are being considered,that restrict Class B land application. Based on these recent regulatory changes,the District has launched a comprehensive long-term biosolids management plan. To provide flexibility in decision-making pending completion of the plan and to allow biosolids management costs and site layout needs in the Interim Strategic Plan Update to be identified,two biosolids management methods were incorporated into this project: ■ Hauling off-site, treatment to Class A,and land application.This method was assumed as the conservative basis of comparing the wastewater alternatives costs;and, ■ On-site heat drying.This method was used to allocate area requirements on the Plant Nos. 1 and 2 site layouts because this method has greater land requirements. cm ES-8 .:�o�.a.ce,...s«m�mmmiwaegmov franc w..wvn»�+wa.s..w.eo� ' Executive Summary Table ES-1 Population-Based Flow Projections Average Dry Weather Flow(ADWF) Unear Rebound o/Unit flow Rate bom 104 gpcd In 2001 to 115 gpcd in 2020 Flow(mgd) Flow sonata 20011 2005 2010 2D15 202D Distrltl Fmwa with Water Conservation Unit Flow C"Mcknt(9Ptd) 104 106 109 112 115 Flow' 221 241 255 267 276 -water Contention' 0 3 -a -12 -15 Subtotal-District Flows with Water Consomation 227 237 247 255 263 Point sour"Flows •Irvin Ranoh Water OMMd(IRWD) 6 11 13 15 17 •Sarda Arse Wammhed Protection Agency(SAWPA)° 7 11 17 23 30 •Dry Weaftr Diversions° 1 4 6 S 10 t Dairy Washewter Pilot Pmgmm(DW WPP)' 1 1 1 1 1 -Inlll"Ilon Redudlon' 0 0 0 0 0 Subtotal-Point Source Flows 15 27 37 47 53 Total ADWF-District and Point Source Flows 242 264 284 302 321 Notes: mgd=mimon ,nNna pwday 9pod'Peers M Masan per day 'IRWO.WSAWPA6 ammua00on. DaMd llowa vrem eatlmdea Dom 2Mldda. 'eamed an 1M Sunlepk PMn Popubdon proloWwa.MI PopMeten nearly extapobled hom Z000 and 2(105 Pnedee n PmPo&na, 'TdMI ReplwnmeM PM.;Pm)edmre Iweed on data horn M."Weron Wake 04M of Orange ComN(MWDOC). 'As..Michelson Pon le nd espanded; .Jeolens horn II 'Pr ,OrInary loepmfedlone horn SAWFA 'Dry e1ea0ar dil ram msumed m 1.0 m 4mgd In 2Ua6 and 10 nlRd In 20N. 'Mulmum fbw horn DW WPP&ersmlu Is 1 mgd. 'No aeOMkauwned roalnflmeeon m0udiontlWlp dryemMeribv pedalo Whmmd mMlnflm mdudngdryeeamer Pow dwsmnb demonnmmtl On Emyumuanvdh eie CoopereWe Proleds PmpmmR IMlflrsOpn m0uctlon sharp oe Irmpomlm Inn alum floc Dmledbns. Cm e:Vhgge Lexlrem PieNNmaA112'EaoWs9umueaalYEL1 NESIYL4,TegeES1 ES-9 EaccuGve Summery Table ES-2 Population-Based Flow Projections Peak Wet Weather Flow(PWWF)' Umpar Rebound in Unit Flow Rate from 104 gpcd in 2001 to 115 gped in 2020 Flow(mg5) Fbw Sou ce 3001 3005 2010 3015 2020 AdJ.W ADWF TMADWP-Dhak1 nd Paint Sauce Fb (h TabW MI) 242 Z89 294 302 321 +Webcom .wn' 0 4 e 12 15 -Sere Ana W.wm Prda n Ag.ncy(MWPA)' -1 -11 -12 -23 n WeNMr Divenloma -1 J $ $ -10 -Dal WaakxeW Plot ram DWwPP)' .1 .1 -1 -1 -1 AOus1MA WF 2M 3R L." 2 2p5 PWWF AOusM ADWF X3 513 511 590 e20 650 PWNFAd.a nb ♦SAWPA' r 11 17 24 30 -WeMWlhervailon2 0 < -0 -12 -15 -In UWMow(W)Reduction' 0 .10 -20 -30 40 SYMo I-PWWF AAusenanb T J .11 -15 -25 TO IPWWF 52D 551 Ste 502 525 0e 11 PWWF PeaMng FacWm ZIS 2.09 L0e 1.99 1.94 Nabs: rape=mabn eaove Pw aav LPN 5ealpk Ran TM1 L9BI.Section 3.1.Pape 15,PWWF wa lakWleU lm Ye Sbale9s Mn as lu` RK4F=(ADWF wPo wWNe,crosarvnttnl-2I-xNN k ftrvUM-N2W:Ibn TM1Y WIWF oakWalln wda aOjvsleE M IMNhn 5balepb Plan Male Pb'M as IWwve: pa1yF v(ADWF.wyei[wuwvelim.S4WPA.Oay WeelNnMMMa DaYy WatMalw Plol ROPLnf22�5n WPA.xNN[tlwbKtlM-N bEWM '.vav mAiervMkn enxls aammea aoee ire same onADWF am PvnvP ram. mmeIva.wewmwnalmnmlpwed.wabaampwea Nue oerao nears r weauM.na.. '34WPA flan am aaEINM M1om IM IeeFeOADWF sbae NB apxb tr9uWvl aN M atl(M b pecks. 511WPAADWF wdsaVpU Ma tln tlL RYWF Wre W[a 54WOA flan wa mlatO mallV P1YWF rnraflMa. Y5ry Wealem DNeabn eM DW WR+Ibx2 an EbcatlLueO<'➢nlp RWIF lmtldoM. Tlwelve,ae0e Ibxa art eaNJde hdn Ms WNed ADWF. in ub leer so-alepb wn.N mauanrl vas eemnaled m 4o mp4 N mm eaeaa m Ire tnpememalmv oI proaasea mmnae mvmvem ma Pkk ma Wppbp vaPame fen NemeNNeb OawNaSva PryMaPrepbm). NO In vmcuoawa.aswmepm2aol.vleN was eabaaba lw mbne lean ashy llreNMbryNetlan. 'Overt PVNIF pMlnp hGlan IMub water wlueMlbn,N IeCuclbn,mtl IMaa aanra IW assumakm, COM clawrw.rs.ommanaaowaaE>Aawsmmmiee.cs�.a lsa s.la Esa ES-10 f Executive Summary Table ES-3 SARI Flow Routing Options 1Aand I Summary of Flows Option 1A Selected O lion Option 18 Flow Year Year 2005 2010 2015 2020 2005 2010 2015 2020 ADWF m d SARI flow diverted to Plant No.2 44 52 59 67 44 52 1 59 67 Plant No.2 Bow diverted to Plant No.1 10 24 36 50 10 24 36 50 Plant No. 1 120 140 158 177 120 140 158 177 Plant No.2 144 144 144 144 144 144 144 144 Total 264 284 302 321 264 284 302 321 PWVVF m SARI flaw diverted to Plant No.2 79 89 97 104 0 0 0 0 Plant No.2 flow diverted to Plant No. 1 0 it 27 38 0 0 0 0 Plant No. 1 239 252 285 308 318 340 355 374 Plant No.2 317 317 317 317 233 239 247 261 Total 551 579 602 625 551 579 602 625 PWWF Peaking Factors Plant No.1 1.99 1.87 1.8 1.74 2.65 2.43 225 2.11 Plant No.2 2.2 22 2.2 2.2 1.62 1.66 1.72 1.74 Notes: 'Flow projections are based on a linear rebound of the unit cow rate tram 104 good(2001)to 115 good In 2020less SeNon 3A.2 for daueloRnenl of ADWF pmjectiom). °See Section 3.4.3 for development of PNWF invIecdons. Ciasasa ES-11 V'.grvge WumV SanOWdllP]¢wfl)pc'paeV FbWFvamrva5unmaMFaaY'.Ya Sunmvry Mc m Cost Estimating Assumptions: The capital cost estimates and operation and - maintenance(O&ivi)cost estimates developed for the 1999 Strategic Plan were used as the basis for the capital and O&M costs for this project. The costs were updated using the District's most current cost factors and were adjusted to the current year. The District's most current cost factors are: ■ A 30 percent contingency cost factor for all projects; ■ A 35 percent project-related cost factor(engineering,legal,environmental, permitting,and general administration services)for treatment facilities costs; and, ■ A 25 percent project-related cost factor for collection piping costs. Costs developed for the 1999 Strategic Plan were escalated using the Engineering News-Record construction cost index for Los Angeles (ENRLA CCI)of 7,227 for December 2001;the January 1998 ENRLA CCf of 6,663 had been used for the 1999 Strategic Plan. m GWR System Phases and Flow Requirements: The most recent GWR System flows were included in this project Only GWR System Phase I was considered for the purposes of malting relative comparisons between alternatives and developing site layouts. ESA Disinfection Treatment Technologies In March 2002,the Districts Board of Directors deected that all wastewater be disinfected prior to discharge based on results from the Districts ongoing ocean monitoring program. This program detected bacteria often associated with wastewater at shallower depths than previously seen Even though this bacteria did not exceed any applicable beach or ocean water quality standards,the Districts Board decided to implement disinfection. For the purposes of this project,it was necessary to perform a preliminary evaluation of disinfection options to select a representative, long-term disinfection option for each of the four wastewater level of treatment alternatives being considered. The disinfection technologies evaluated were sodium hypochlorite(bleach),ozone, and ultraviolet(UV)radiation The disinfection technologies considered as part of this preliminary evaluation were determined to be representative for the purposes of developing capital and O&M costs,facilities footprints and an implementation timeline. The actual long-term disinfection methods that will be selected for implementation at Plant Nos.1 and 2 will be determined as part of the Effluent Pathogen Reduction Alternative Plan Study that is currently underway. The technical data used for this preliminary evaluation was based on recent bench-scale testing to define dosing rates. The dosing rates were used to develop planning level estimates for costs,facilities footprints,and environmental impacts. CM ES-12 Pwar.waa.owuavmemnymv r.rr,.or.wm.,ra,r.s�n.� Executive Summery Based on the results of the evaluation,the present worth costs for bleach disinfection for the four wastewater alternatives are significantly lower than that of either ozone or UV radiation. Bleach disinfection would require the least amount of space at Plant No.1 (based on meeting chlorine contact time in the interplant pipelines) and would require the greatest amount of space at Plant No. 2. Based on this information,bleach was selected as the representative disinfection option for all cost estimating purposes as well as for the Plant No. 2 site layout for each of the four wastewater treatment alternatives being evaluated. However,to ensure an appropriate amount of space is allocated for the permanent long-term disinfection alternative,the footprint for LTV radiation was used for all Plant No.1 site layouts. ESS Toxicity Issues The District has been evaluating effluent toxicity issues since August 1999. The District's evaluation has indicated that long-term baseline toxidty appears to be increasing,and that effluent toxicity appears to be caused by a synergistic effect between ammonia and hardness. In addition,toxicity is anticipated to increase in the future when the GWR System project begins operation. Reduction of ammonia toxicity using nitrification was incorporated into the wastewater alternatives analyses to determine what impacts ammonia reduction would have on the District's facilities. The costs for nitrification were not included in the alternatives evaluations,but possible nitrification facilities footprints were ,.., incorporated on the site layouts. The actual methodology for nitrogen removal will be determined by the District in a more focused subsequent evaluation,as noted below. Several recommendations were made for managing effluent toxicity: ■ Continue investigating the effects and interactions of ammonia,hardness and chlorination/dechlorination on toxicity to determine the required effluent ammonia concentration to ensure compliance with toxicity limits. ■ Conduct further evaluation/investigation of toxicity issues including(1) additional studies to evaluate chemical contaminants in the various other influent sources to determine if they affect effluent toxicity,and(2)a further evaluation of the reduced dilution ratio caused by lower effluent flows to the outfall. ■ Work with the Orange County Water District(OCWD)to develop a Nitrogen Management Plan to ensure that ammonia is managed effectively within the District's treatment plants and in sidestream(including those from the GWR System project)to minimize potential negative affects on effluent ammonia- toxicity,and to determine the most cost-effective and practical technologies or other approaches to reduce ammonia in the effluent. CM ES-13 >�w Cauq aw otuuxueoear�ye.enx vanE.ww,&mr+Ne+®e.*&,miay me Executive Summary ■ Work collaboratively with OCWD,other ocean dischargers,and the State regulatory agencies to develop a strategic plan for dealing with ammonia toxicity in ocean outfalls. ES.6 Wastewater Treatment Alternatives Four wastewater level of treatment alternatives were evaluated in this Interim Strategic Plan Update. The four alternatives differ on the amount of secondary treatment,or alternative treatment,provided. These alternatives were developed to produce an effluent quality that ranged between Ocean Plan requirements and traditional secondary treatment effluent requirements (30 mg/L BOD and 30 mg/L TSS). The four wastewater treatment alternatives are as follows: ■ Alternative A-Permit Limits: Wastewater treatment processes to produce an outfall effluent(after secondary effluent is diverted to meet GWR System Phase I requirements) that meets the California Ocean Plan and the 301(h)provisions of the Clean Water Act,the District's current discharge pernut limit ■ Alternative B-50/50 Blend: Wastewater treatment processes to produce an outfall effluent(after secondary effluent is diverted to meet GWR System Phase I requirements) that is a blend of 50 percent advanced primary treatment effluent and 50 percent secondary treatment effluent. As with Alternative A,this alternative would be permitted under the California Ocean Plan and the 301(h) provisions of the Clean Water Act. ■ Alternative C-Full Secondary Treatment. Wastewater treatment processes to produce an effluent that meets secondary treatment standards (30 mg/L BOD and 30 mg/L TSS)of the Clean Water Act. • Alternative D-Alternative Treatment. Wastewater treatment processes to produce an outfall effluent(after secondary effluent is diverted to meet GWR System Phase I requirements) that is a blend of secondary treatment effluent and effluent from an alternative advanced primary effluent treatment process. For this project microfiltration was used as a representative alternative advanced primary effluent treatment process. Microfiltration design criteria were developed based on the District's ongoing evaluation of advanced primary effluent microffltration using a demonstration-scale testing unit. A set of comparison tools was developed for the project,included defining performance measures;quantifying the performance parameters for each alternative; and establishing objectives and sub-objectives for the purposes of making comparisons between alternatives. The comparison tools were developed based on public input during workshops with the Planning Advisory Committee(PAC2). CM ES-14 Y"4w9.CMY Sn CMA36.1 W 111PWtm�PFNEutin SumwMa®Y.a 9mm✓/C% ExecUM,e Summary ES.7 Evaluation of Wastewater Treatment Alternatives The alternatives were evaluated through the Year 2020 using a spreadsheet model called the"Facilities Model",which was developed by CDM for the 1999 Strategic Plan. The Facilities Model is a static model that calculates the number of process facilities and the associated costs related to these facilities for different flow schemes. The model allowed staff to change flow and operation characteristics and to see the impacts on the facilities required and the related capital and operation and maintenance costs. The Facilities Model was updated for this project using the revised planning assumptions and new treatment processes,such as disinfection, discussed previously. The Year 2020 results from the Facilities Model were summarized,including estimated influent and effluent quality,a summary of the existing and additional facilities required,and a summary of the alternatives"performance',based on the evaluation criteria developed in conjunction with the PAC2. The number of facilities required for nitrification was estimated as well as the number of facilities required for ultimate flow conditions. Ultimate flows were developed as part of the land-use based flow projections prepared for the 1999 Strategic Plan.In addition,site layouts for Plant Nos.1 and 2 were included for each alternative for Year 2020,as well as for ultimate flow conditions,to ensure that the required facilities could be accommodated at each site. The facilities required for nitrification were also shown on the site layouts. rn The performance parameters for each alternative,based on the selected performance measures,are summarized in Table ES-4. The number of additional facilities required for each alternative for both Plant Nos.1 and 2 is summarized in Table ES-5. ES.8 Updated Capital Improvement Programs The District's Capital Improvement Program(CIP)identifies the annual expenditures required to implement its planned capital projects. In the 1999 Strategic Plan,a CIP was developed based upon the Board's selected alternative(Scenario 2). Since 1999, the District has updated its OF every yew as part of its budgeting process. For this Interim Strategic Plan Update project an updated capital improvement program(UCIP)was developed for each of the four wastewater alternatives to allow comparison of alternatives. In addition,the UCIPs were used as the bases for determining the potential rate impacts of each alternative. The UCIPs were developed from a"Baseline CIP". This Baseline CIP included rehabilitation and renovation projects,support projects,and special studies that were currently planned and would proceed regardless of the level of treatment selected. The Baseline CIP also included flow-based projects that were far enough along to allow the assumption that they were"existing"facilities. Projects which addressed increased flow and level of treatment,which were determined from the Facilities Model runs,were then added to the Baseline CIF for each alternative. 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'seem•0mma nuro44 mmpm.n m.a lamxmm.a.aw.a.l,n'..gnmXnma.�m,vuaa nlmm,. vpmrwmweMammraw.aye.mewam[.aum.nama...q..m"m"m="aaaw wq.wXmem«.a..rwamn,wenMwarva[raaia.,mmomo,x,wargwela..wm,mquuonral..m...lmwyr.a4ann. •Owrp,negmtlemrooYwealnM axm®mmmq Meaxym„e,rlmnx baa.a..osaam.4maemmb.mx.mMm..Mmam.«x4usmmV.hmn4la4aa atl Wn4brtlM. •axgmnYm MnYmiMbmlalloenneNaA[grlememin.tl4,MmuWnNhmWMam MIUXCCW MmW PMnep.lamaVxmM1May4.anangswlMelm4a.mabwIMLIMYof Wa.n.plmMmnm IMn.wX p4nxpW YnPivmmYPMlm.bmpeenwvN{,OmwmXv.A mer mgama4aNmxinM1m•npuMermen0YIX6a. 'bXmm[etlevwemm�p«nnee:.e.n NevnenMxl.npialvMmne[am leebrp•.MMW aaxMm4vYM1.M,Po.Wtlq[P4nlllwl "Onenmm�emmoe mme.Maeee.em NeeunMu.l..namrymnmue Nela MgMW[9 4MMMmg I OlIa h4. 'bXuezenauromm�prton nM.em Neeumnr der Pe YsmMa p.MMM.X.fJM Mab.IgnMll..lq.rmnl 'bn.men u ewf mmmpahv,ma[en n.eumarem mr XeenanWe yNMeM.aEV 4rMM.4a mrs.n� ns. ov.ane�nwew,nruu.s.na.[ni-[.wmu.revs a+elawurruY-r.aum.rreu EsecWive Summery Teblo ESB Sum ma of Fatal Ra ulremenb Component All A AR a ABC Alto Year 2020 Year MM) Year 2020 Year 2020 Flows Plnnf I Fier Plans I Met PMnf Plwf Mae I PMnf No.1 i No.2 No.1 has 2 N0.1 Ns.2 ties N0.2 Mfluordasslewaarflow a r7 1" m 1 tat to l 1" m 1 tee SMeetream Blass(wdWMg OCWD Wokxwall) 2A 1 2.8 2.5 : 2.9 2.8 3.0 2.4 1 2.8 TnWingellarfloa (rage) W i WA 30 WA W I WA 7i0 WA Twkling fl0arflow to OCWD raid) 30 I WA 30 1 WA 30 WA W WA Assailed sledge now (m tl e3 I W 107 91.0 182 14].0 BJ l 73.0 WI Ina estiseleE Mud ,flow mace o 0 0 o D o 0 0 Memerix Trealment(MF)pmtluMflow fto 0 1 0 0 1 0 0 0 fig 55.4n Pdmary Effluent to ouBM(mgd) 782 l B03 0a.3 559 0.0 1 0.0 OA 1 0.0 Sewwa effluent um In m %Kuo Pi WA 0 WA 0 WA 0 WA 0 OCWD MF bwkwesll trey m tl 11.8 0 11.8 D 11.8 0 11.8 0 OCWD RO nsoact flees M ouWl d) Ms WA 17S NIA 17S WA 1].1 WA OCWD nu arum rasa Bed W..M demand m f08.3 I WA 108] WA IOU WA 108.3 WA Ou oM 1 TSS Was Emission W ocean (mlyr WA 17,072 WA 13,M WA I II.M WA 3,473 BODs Consonbatloa b ocee,(my0 WA 90 WA 89 WA 19 WA 40 BODs Concentration b OCWO(mga) WA 20 WA ?D WA 20 WA 20 TSS Conasntratlon to ocean mgA) NIA 51 WA m WA 19 WA 9 TSS Concentration to OCWD M910 WA 1 20 WA 20 WA 1 20 WA 20 NH3N Concentration to ocean mo WA 30 WA n WA 27 WA m Nli N Concentration b OCWD NIA 20 WA A WA 20 WA 22 Electricity usage mfllan Mail) 88.7 02.7 73.2 72.3 871 81.1 72.5 73.9 Cake wlMs to dl I month) 15,390 9,]BO 18,OBD 11,250 17.50) 12,721 15380 10310 Dlgestar Goa FroEuction mlllbn flMnooth 88.9 81S 9/2 M MA 853 BOB 87.1 TofN AtltlNonel IInOe Nectlotl Becemdeas 0 10 -0 1 0 .0 0 0 1 0 Headwmhs m m 0.- 0 D i 0 0 1 0 0 I 0 Gaclow ibara 2 0 2. 1 0 2 0 2' 0 prinot,r Madkmm 3 1 0 3 1 0 3 1 0 3 1 0 •r' Tat*Krq fllles r9heWlletee 0 1 WA 0 f0A 0 WA 0 WA. TdM01n flOer WnYon 0 1 WA 0 Not 0 ! NIA 0 W AMheMtl S✓ggg American beetne dit d elr 0 0 0 0 3 B 0 0 Bloemm 0 D 0 0 1 3 0 0 Secoadam,tlarBlers 0 0 8 1 0 u IB 0 0 DAF bake 0 0 0 0 2 1 0 0 Digests. 3 0 a 0 5 2 3 1 0 Malin Mnb 0 I 0 0 0 1 0 0 0 Bell Mler possess 2 I 0 2 0 3 1 0 2 1 0 Cmkeetaelah 13a1s 1 1 2 1 1 2 2 1 1 1 VOC cwbol•AMWeMd Carbon volts a 1 1 B 1 18 11 7 S Chemical Blme ,Tanks 5 I 2B a 25 3s I 2f 2e Chemical Fead Psalms 7 3 T 1 3 7 Chicane Correct Tanks 0 7 0 7 0 T 1 0 1 5 ABemstso Txaseenl onts(MF) 0 1 0 0 0 0 i 0 1 11 10 All lesion for Wckaaeh Beat 0 I 0 0 0 0 1 0 1 3' 3 SscerMa clarifies fa Mosses],Beat 0 i 0 0 0 0 0 1 5 S. SARI Fare f1calting Yes WA Yea I NIA Yes I WA Ce IMI Coal lMl3oea E110.63 3161.B4 E422M 114k9l,Mnual OBM Cost(5m0 02.2 ES/.7 Me.Prexal W"ofmos al Cost bra11ons 37783058 ToMI PrexntWorth CON 3atllllma 3887 $1.010 $1, No1x Genre W'.Bee enatliw•Avumpllw W Nolas•dawmml for d.WW wmmenle. 'Mhmugh 3ematlw were.reedwbeeMMFbedweN,nmre new bpemlulmNOd du,bmNbkeeelbn bosh CeWW 0 Pbnl No.1 g.e, 3 aearsw02nea).roe Wbb max eWnelree etlWmd. 'AM"h 5 exaMNry dMgeat cam Needed!Issue MF W6nsh cent,1 areas labs mxWMw don 0 aveOwloaemnNrydeXflx co mltyM PMM No.20.0.a beans or 18 laid).Il amebks 3of tel txbwem eWudes. tlnduex 1 addPbxlMww,lea NNmI Ne.1 eM 17 wdibral Names Retort Nml No.2 b PaMa hWm classroom IetltlYes eats IM add9wW ooamtlerylnwenlledlose as uM rdet,eM construct.from=03.2013. 4aduars l,adflbxlelwp,Wk 0 Plant Nol are 19 teasers slates Mass at Narl No.2b P,Aaa Monm dvNaswn I.WU.s vier a, ¢ddilnwl ePamalM Easlment le W tes-.W.dxbn and coelmWm ham 200.1-2013. P.10rmpn Csmtyeen 7.1-a WFars,Rp -.E15 W,TeW IQI W 410021102W ExeculW Summary were added to the UCIPs using a"constructed by" target date and estimated design and construction durations. Project scheduling for each UCIP was adjusted to minimize peaks in yearly expenditures. Mitigation programs were then developed,as needed,to allow operation under the revised schedules. The resulting capital expenditures for Alternatives A,B,C,and D are shown in Figures ES-3,ES-4,ESS, and ES-6,respectively. ES.9 Rate Impacts The impacts on user rates were estimated for each of the four treatment alternatives. The rate impacts were evaluated using a financial model called the OCSD Financial Planning Tool(FPT).The FPT considers the UCIP for a treatment alternative,future growth projections,the terms of future revenue bonds,as well as other variables. Using internal recursive functions,the FPT calculated a bonding scenario,sewer service charges,and capital facilities capacity charges (connection fees)for residential, commercial,and industrial users that were required to meet the financial requirements for each alternative. Inputs to the FPT included wastewater flow projections,historical residential user information,UCIPs allocated by flow-related projects and projects associated with treatment of billable parameters(flow,BOD and TSS),annual O&M costs for each alternative,the District's background financial information,and the connection fee. Since historical data for commercial and industrial users was not available,it was � - assumed that growth in commercial and industrial connections occurred at the same rate as residential users. For each alternative the connection fee was held constant through Year 2020 at$1,820 per equivalent dwelling unit(EDU),the District's current connection fee. While connection fees typically increase over time,they were assumed to be constant in these analyses for simplicity of alternative comparison. The FFT calculated the number of future users;the required District reserve balance, the connection fees using the capital investment equalization method;and the residential,commercial,and industrial sewer service charges. Based on the current EDU service charge of approximately$80 per year,the estimated increase in the Year 2020 sewer service charge for each alternative is as follows: ■ Alternative A to increase by$73; ■ Alternative B to increase by$83; ■ Alternative C to increase by$115;and ■ Alternative D to increase by$119. The increase in EDU sewer service charges was incorporated into the overall evaluation of alternatives. CM ES-18 r.ipais Cvnry an oruaixnwwrngmov rwrmma smw,x.eaw s...ree. Executive Summary $400 ALTERNATIVE A $350 - --- - - - $300 $250 O V N _ 0 0 'a _ $200 o E m t2� 0 $150 - - - $100 $50 --- $0 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2003 2004 2005 2008 2007 2008 2009 2010 2011 2012 2013 20% 2015 2016 2017 2015 2019 2020 eNew Protects $4.4 $10.0 $19.5 $5.2 $8.8 $10.1 $4.7 50.5 SO.B 52.0 31.9 E3.6 57. E12.3 E8.7 57.5 E4.5 50.0 Demesne CIP $159.5 $247.8 3227R $241.8 $154.0 $78.3 $64.0 543.1 E31.7 523.9 E17.1 516.2 E14.1 538.2 528.5 584.8 $ZO.B 578.8 TOMI $183.9 $257.5 S245.7 $24GAIMA291 S88.3 1 589.1 1 543.5 532.3 328.0 $19.0 518.7 521.0 350.5 534.8 E72.1 525.4 318.8 Fiscal Year Ending Figure ES-3 Joint Treatment Works CM Capital Expenditures - Alternative A v w,.ndd coumy sen ES-3 end A. nd..as i.m.+m Executive Summary $400 ALTERNATIVE B $350 . $300 $250 — N U b N C v E 9 � $150 -- -- $50 $K FY FY FY FY 2F0Y FY FY FY FY FY FY FY FY FY. 58F4Y.8 E3260.9.9 32SF10e8Y 2004 2005 2006 2007 08 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 O New Projects 2 .7 113 117 E3.2 $5.1 $5.8 5E124.91 $33780 515.0 $ 070'0-0 0 1 $ 8 EB33.1 31 39 .13152 S2B5 6❑Baseline C 2A7.6S227224 4.0 4 6 317 Total 2.7.0 8 $257.5 $247.4 $250.3 S167.9 S95.7 S75.5 S43.5 532.5 527.1 E22.2 521.0 517.0 545.2 541.5 575.3 527.8 525.5 Fiscal Year Ending Figure ES-4 CDM Joint Treatment Works vwanae Gamy san su�r,,F,sme es4 and Append,x eo uciesue Capital Expenditures - Alternative B Executive Summary $400 ALTERNATIVE C $350 $300 0 $250 0 U m 0 n = $200 (j E o V $150 ��. $100 $50 FY FY FY FY FY FY FY Fv • FY Fv FY Fv Fv FY FY FY FY FY 2003 2004 2005 2008 2007 20M 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 [❑ wProl ecls 5.12.8 52 .] $ 165..2 E9 5E 461 5317 59 517.1 2 31140..11 E12.2ineCIP E1595247.627 $ 785 8 352236..85 556194..78 5E260.8.9 E¢16.8 ctal $163.9 1$257.5 1$246.7 IS246.8 13170.0[$103.71 $04.9 1 $89.1 1 389.E 1 $99.5 1 $80.7 1 521.4 52/.2 E50.9 550.3 $84.3 1 $27.5 1 $16.8 Fiscal Year Ending Figure ES-5 L. Joint Treatment Works r�om�ye cmmv se�aamzsnsosmrme.m,m sm,.,e,yr�w,-ess.�a 4ox�ai.eo meies.aa Capital Expenditures - Alternative C Execu"Summery $400 ALTERNATIVE D $350 -- - -- -----.. $250 - - - - --- . . - - --- --- - ------------- - ---- 0 O V y^� R C q $200 F $150 $100 a $50 $0 FY FY FY FY FY FY FY FY , FY FY FY FY FY FY FY FY FY FY 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201$ Nis 2020 o New ROlem $4.3 $9.9 S19.2 $7.7 $28.2 529.5 S2B.9 588.3 578.6 579.4 $81.3 $2.7 $5.1 $9.2 $9.6 59.2 510.7 $5.1 OBaseline CIP $159.5 $247.6 S227.2 $241.6 5154.0 578.3 564.E 543.1 531.7 523.9 $ 77.1 St3.2 514.1 538.2 5286 384.6 520.9 516.E Total $183.9 VS7.5 $248.4 $249.3 $180.2 5107.8 S93.8 $109.3 $1073 5103.3 578.5 317.8 5192 547.4 538.0 573.8 531.6 521.9 Fiscal Yar Ending Figure ES-6 CDM Joint Treatment Works oIa� I,Un E"..b . E A, Capital Expenditures -AlternativeD Executive Summary ES.10 Recommendations As a result of the work performed under the Interim Strategic Plan Update project,a variety of near-term and long-term recommendations were identified that the District should consider as it moves forward with implementation of the level of treatment decision to be made by the Bond: Near-Term Recommendations-to be completed within 12 months. ■ Continue toxicity investigations and prepare a Nitrogen Management Plan ■ Complete the Biosolids Management Plan ■ Complete the disinfection study ■ Conduct dry weather and wet weather flow monitoring,and identify potential reasons for recent stagnant per capita flow increases ■ Develop operational flexibility approaches ■ Review differences between historic and projected new connection data • Improve public outreach efforts Long-Term Recommendations-to be started within 12 months and completed within 36 months. ■ Perform the Santa Ana River Interceptor(SARI) Flow Routing Project • Continue advanced treatment investigations • Complete a new Strategic Plan ■ Develop a new Planning Advisory Committee and Rate Advisory Committee in anticipation of the next Strategic Plan ■ Continue dry and wet weather flow monitoring One of the major recommendations presented above is completion of a new Strategic Plan. The Strategic Plan should be started once the Districts Board has made a decision regarding level of treatment. The new Strategic Plan should include a review and refinement of the entire set of planning assumptions made as part of the 1999 Strategic Plan. The Strategic Plan would include many different items,but most notably,the Strategic Plan would develop a new CIP for the selected level of treatment. The new CIP would be flow-based to ensure that the capital improvements are constructed when completely necessary. CM ES-23 n.a.ge mq s.�m.mxa®.vaw�r`ow.ae..aimm.roa.aw a..�wrnee Executive Summary . As the District moves forward with the consideration and implementation of the recommendations in this Report,it is important to recognize that all of this work is integrated with the District's overall activities and operations. Therefore,in that context,the implementation of the recommendations must be undertaken as part of the District's program Management work The most critical element of the implementation will focus on the need to accommodate changes in the projected per capita flow value. The ability of the District to forecast future flows,on a regular basis,will be essential in all of its capital improvement plan implementation as well as ensuring that the financial requirements to support the plan are reasonable and manageable. CM ES-24 �m ta.wan oa�esode=r�.�+r�rma..sm+v+.�+.a�.ra. July 9, 2002 STAFF REPORT Interim Strategic Plan Update, Job No. J-40-8 Executive Summary and Staff Findings Since adoption of the Strategic Plan in 1999, significant developments have taken place that impact the Orange County Sanitation District's (District) operations and capital planning such as: chronic beach warnings and closures due to high indicator bacteria levels, lower than projected wastewater flows, final design of the Groundwater Replenishment System, urban runoff diversions to sanitary sewers, and bans on land application of Class "B" biosolids. These changes require the District to revisit the 1999 Strategic Plan and provide the Board of Directors, the community, and District staff updated information to determine the appropriate level of treatment for the District's ocean discharge. This level of treatment will be incorporated into the Ocean Discharge Permit application due in December 2002. District staff developed an approach to outline the full implications of the level of treatment decision that addresses five key issue areas. These are: 1. Ocean Monitoring Data and Studies 2. Treatment Alternatives 3. Financial Considerations 4. Regulations and Permitting 5. Public Input Issue Area 1: Ocean Monitoring Data and Studies Summary The Ocean Monitoring Data and Studies summarized as the "Huntington Beach Investigation" indicate that there is no connection or correlation between offshore bacteria with speck contamination events, spatial patterns or overall levels of bacteria at the beach. The investigation report has been reviewed and accepted by an independent scientific review panel. Also, further analysis is ongoing and the independent scientific review panel will review any new findings or results. Furthermore, as noted by the scientist at the May 15, 2002, Special Board meeting, these studies have not proven that the outfall can not contribute bacteria to the local beaches. In addition to the ocean studies, a number of on-shore investigations have found other sources that could be contributing bacteria to the local coastal nearshore waters. To assist in reducing the contamination problems, a number of sewers have been repaired and storm drains have been diverted to the sanitary sewers. Also, a number of Page 1 of 8 July 9, 2002 improvements are still outstanding and some additional storm drain diversions have been recommended. Issue Area 2: Treatment Alternatives Summary The findings for the Treatment Alternatives are summarized in Exhibit A, "Alternatives Evaluation Table -Attachment 1" and Exhibit B, "Alternative Summary Tables - Attachment 3"to the Draft Interim Strategic Plan Update prepared by Camp Dresser & McKee, Inc. (CDM) in June 2002. These tables summarize the technical and financial impacts of the four treatment alternatives for consideration by the Board of Directors. Three of the four treatment alternatives presented (A, B, and D) require the District to maintain use of the Section 301(h) provisions in the Clean Water Act (CWA). Section 301(h) in the CWA is also known as the "waiver" provisions from the requirement to meet full secondary treatment. These provisions recognize that some wastewater dischargers release treated wastewater to the deeper parts of the ocean where wastewater is assimilated with few, if any, impacts on ocean water quality. As presented, Treatment Alternative C does not require the use of Section 301(h) in the CWA. A second Planning Advisory Committee (PAC2) was utilized to develop the criteria for comparing the four alternatives. These criteria are contained in Exhibit A and were derived from the PAC2 members values contained in Exhibit C, "Development of Objectives and Sub-objectives for Alternative Comparison -Attachment 2" from the Draft Interim Strategic Plan Update. The PAC2 inputs are summarized in a their "Summary Statement", in Attachment 1 for the Board of Directors to review. This document is also considered part of the Public Input process summarized below. Under Alternatives C and D, conventional activated sludge and microfittration were used in this analysis to develop costs and treatment layouts, respectively. Although, there are a number of other potential treatment technologies that could be employed, in combinations, to eliminate the need for the use of Section 301(h) in the CWA. Thus, If a higher level of treatment is to be employed at the District, District staff recommends that the Board of Directors charge District staff with meeting the full secondary treatment limits of the CWA without directly specifying the use of a particular technology. Finally, all the treatment alternatives include provisions for disinfection, participation in the Groundwater Replenishment System (GWRS) project, continued urban runoff diversions, and funding for upgrading biosolids treatment to produce Class "A" biosolids. Issue Area 3: Financial Considerations Summary The Financial Considerations for the treatment alternatives are also summarized in Exhibit A. In general, residential user fees increase as the level of treatment increases. A similar percentage of increase can also be estimated for commercial and industrial Page 2 of 8 Onnp.Eounry 4nlM111m q.Me1 abf. Im.xuaW.Wgm wnupa.0 AWIYb.Evtlua.n is W. w i ...Mw w wIu .�� IM/ .�� ,_ Yr � w I ww� .Y.i �� �� .T• IYwn .wM� I �w�w�wM IYIYY.1. Orange County Sanitation District- Interim Strategic,Plan Update EXHIBIT AMemedvas Summary PMxem.Maabx:oveRALL EXHIBIT B Oa/eetlwa5uayafxlMe <hemelMR M" e1Ma mellwC nemm'Ane A . .a PxmN Llmlq 6bIIL a4ntl FullJaenaa AnemaWeTMMNIII In..rM..NMaa vV aralriVlY rWaa16•J.111 JJI eeMMYga Mrl eal9Ma iJl eeemWi.r NraeMRNnI Mmllnue rlakgoman gyYMblgarlw.r.nyy qd sn"I'mmWgwa.m.M`d EnWaaipf lealRar.vne WMq r.M!ee rearm Praelem: 4W IIMeYFtla1 ti Jinq$ . avvvkv Fdx FgMl -Nyr MrMd.91.w iewarelq wfna. iwFln.IgrFFr PM.1 Mtl Rxgcl M.Engmnm<n I vlo.xa.r L.Fa»a Flew .o�a< p<m.,a+� -M WrlrNvn�WelOgmrOun J •M ellamurwf mwlLWpna Dour iss= B mp'L Ja anelMWea meF LMemMM.n PHnb BDD loou!la Pla^Iw aOD. %enWBOD +K a.ngn.W T55151 mrytlo �R.marMI, TSS(3 .A. Mu,(.IM) �� -RM-Mmuh) wl!olp A— .a mwe TSS 19 myLopMaM. Reeaxaxn(h) r.Tss rd vFb °°arss Doef Mw�xUveaJ9t(nlwewF!w "D rolrpUre 0Dt(nlwwFlw 0� Iv R00 8 Tss or 00D Tss(dnCme1w 00) l.a flrwn aormaaN i4ae emerMandnmwAsy Ve.Menaa pepnpY- -L<aa smneKNhMI MV/apm AYIMo.mrl Lees ronn Vutlu. laws MlvYnehontimYbtlrk( c Orel page, lApe emisemel.mn duuXetlm a Fn't-du, UWYWn -Lava anl.amf hFn GMNtla MOMrlemrnlvWa dnrniul efdi. ImEloPr.vaou) m�and.II.Sm IdMaN mpeOv". 'Lax uSU1.We ameW ( men. nd' w s) virou MnmveearlFtluxd Ieprel leeWOe De.w.Ix.WMr.nerval revere uxP i4dMr Fr%wade on W Wtll M- Flptlem Manemoliwa new yaee.ww�:'.i Prop.I: Rpoofa awRp ill's ame peo nliaGMY Eeaw eni MxmueproverlY.l i.wereioM..mireludlfy perylx .... .v-rt .eliedlM eroux IL m We4b Mee' eyeNmimpavemsMe enen.ne pxan Mas ennnam pxm "Lw.F reYeWaY nereueIN Wnx lulwy ufeq YNrvaf bsalmvY letlaclvje. .Lw mdeeM/r anweam ab..eylrlew�eu.lM w.ro MYMva ypledyyq peryyegyy ee.yyaly Ve.VnMl. Mvgkye.E Nw«v>:<ok'xean'mmC..ob eyexn Ynponmree #be peMWeb eNram Cavfuee 1m W0NYxlp opammnWou�W rve f<cvgaY+e�:r-.m: YHeiamov, Mm.m Wave oval e/WMyy pxeMlN llprw aem!xrm wsl iewF a¢vtlenmawt iw,F OrM1Omm4 III—.mn to {."On a�C TS51Mwol mflf. NgvBOD an TSJmrvrvM a.b: 1yx190prMTssmMrel mau, relepinelf 'LeeeLer o'mm'neoropYOm Mp N(fs EmdM,erryyN ptlwN00 madam: low Oio.alMa re NFwI mnW : 1.fypMV06M w.ia uvd r< MIa"v gWWDBM yp,mFNe nivosu we.savae.ae.r..ana rma .Ml an.-M.:r.f.u,ew aMe McIF a awla Ma.un¢. dWMg9d tlx WX.lr. Frl..tm el va wllan .rdvMY e.M.l 11eyylFgd oLw,Mali dra..M, xYoaan Mw rmvu.fel aC. n!u oaY Pui, P. vIr Mvimue rewurw veWe FinaMW Mfe baWMe!o-muse 4"oeusemy.Madgeb. . -Plewa w. Ales Wlwxaee IN eYpoh+[I leuax: arn.ua (ia walrt.CIcvalue of ylo-L mseudewvrmlp Pia Mor.gaarmlr p as rMc earn,on Opnler 9-) 1p ;b— aM Mm oeinem v, CPoN.tlm ,IMMm Ines.m,mvu's.htbns .Mum¢x reMgro mma IedrW Mmmue cTorwegeW Poles, gmiMpMbrpcal .Lxa upW riMde lvalx. lm�.pl avJWWb reomel wMme MpWe reorrul pgwa PFede Mu ze cpppluMlaWlr ay.l.m mOD.lmph:ltr MenFNIM..MF iM xme Nwla q gyMuneee awe ara.e Msiow.n O Relewre,MW O Nod .vv ORWympfwea Q MMrna4w B w PMwmero Me. N.1 AallLeele to SU>OMl - Attachment 3 Orange County Sanitation District Interim Strategic Plan Update ProcsaevenuW.mwRrcsNorsxaawloPsh.n�lw e.Memrmeaumwyevowna Alternative Summary Tables vhOCSDlae3a17ISumShabmenllpne3(afterWa Wp6)tah 2-MLSub(bjDevMrapol EXHIBIT Original List of PAC Member Values Reorganized List(Censoedated Imo 0blectivewsu"bjectives) 1. Cost effective and responsible waste disposal ' Protect Public Health 2. No environmental destruction • Minimize risk of ocean-related health problems W..4 end to 3. Amount of open space ^��—` -�^�� -•` xi `^"'• _ 4. Protect public health and safety Protect and Respect the Environment 5. Respect for the environment • Provide dean beaches and water,and avoid @ 6. Impact or benefits to the county's other water resources environmental degradation of water(ocean), air(efirm ),and land(open space) 7. Provide clean beaches and clean water veins 2.3,d,2.antl 11 8. Certainty that means are effective in achieving benefits • Maximize efficient use of regional resources 9. Assure that other means that can be Implemented b vial.:water,11,aft power,natural gas,and lend) by agencies outside OCSD are addressed • Minimize ador impacts on community 10. Impacts on air quality resulting from any new tacllitles vdn 1e to adjacent communities 11. Advance the level of coastal protection Provide Cost-Effective Services 12. Protect/maximize economic benefits resulting from • Maxixi Bize reliability of system improvements clean beaches • Maximize adaptability of system improvements 18. Minimize pollution In ocean and on beaches Vdn 30 (fecal coliform count;viral content;BODICOD;OIIIGrease; • Minimize cost to rate payers Heavy metals,pesticides and hormones;TSS) *Ma 1 and to 14. Consider the economic value of the water treated - • • Maximize economiorecreational benefits of dean beeches 15. Improve and maintain public perception of environmental vole a xW 15 cleanliness • Maximize resource value of byproducts(i.e.,economic 16. Minimize use of imparted water in Orange County value of water,Nosolids and digesler gas) veins 14 eM 17 17. Maximize resource value of perceived waste products 18. Assure financial accountability Promote]integrated Regional Solutions 19. Impacts an land and energy resulting from various levels • Maximize opporlunilies for regional solutions of treatment(e.g.,blosolids) Wns 20, Provide for adaptability if assumptions are subject - —` - -- •---- — - • mbb➢1a2eed accesssniies for system maddirhg/ to significant uncertainty S vtnm 21. Provide a system simulation tool that provides holistic predictive results for various alternatives No.; 22. Complete comparison to secondary treatment i 0"meve annient deasmmroenebjadin— !2. "CamplNaamperbonromm�daryaeshnenL'Aeeme,ireCrepeznlx ,�, ..,.......•.. -. .... ... .... .... . .. .�,-, a.. NmmndeM xaiN wID barompwadrodhenAmelAne. Attachment 2 Orange County Sanitation District Interim Strategic Plan Update soam Development of Objectives and Sub-Objectives for Alternatives Comparison July 9, 2002 users. Large or high strength dischargers who operate under permit are charged separate rates for wastewater flow and content measured as Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS). The BOD and TSS rates also increase as the level of treatment increases. Yet, the financial impact will be unique to each of these users based on individual mixes of wastewater flow, BOD and TSS. Finally, the District will be required to increase user fees, as additional treatment is needed, under all options. Reserves should not be depleted to avoid rate increases, nor should District financial policies be modified without careful considerations for other fiscal impacts. Issue Area 4: Regulations and Permitting Summary Regulations and Permitting for the District requires that a new Ocean Discharge permit draft application be submitted by December 2002. To meet this deadline requirement of the U.S. Environmental Protection Agency (EPA) and the Regional Water Quality Control Board (RWQCB), a draft application is currently being prepared. The application for Treatment Alternatives A, B, C, and D could be very similar, despite the differences in treatment options. This is because the implementation period for any new facilities will be beyond this new permit cycle of five years. It is anticipated that any new facilities for a level of treatment higher than Alternative A or B will take 11 years to plan, design, and construct. Regardless, District staff needs direction from the Board of Directors in early summer to have enough time to complete the draft application by October 2002. Also, with a higher level of treatment, District staff needs direction on whether or not to continue the use of the 301(h) provisions until the full secondary treatment facilities are operational. If the District discontinues the use of the Section 301(h) provisions now, District staff will need to negotiate interim compliance permit conditions and a compliance schedule as part of the permit application process. If no direction is given to District staff in early summer, staff will continue developing an application that includes continued operation under the Section 301(h) provisions of the CWA for the next permit cycle. The latest direction can be given to staff to avoid processing multiple application is late summer. Issue Area 5: Public Input Summary The District has received hundreds of letters, e-mails, and telephone calls, the majority reflecting opposition to the District's use of the Section 301(h) provisions in the CWA. Opposition has also been expressed toward the current level of treatment, currently at 50-percent advanced primary and 50-percent secondary blended effluent. Regardless, the correspondence received does reflect a vast number of opinions from residents, businesses, and environmental groups. Page 3 of 8 July 9, 2002 In addition, two public opinion polls were conducted between June 2001 and April 2002 to gauge awareness of, and opinions about, ocean water quality, District operations, and District rates. Results of these two polls are summarized within this Staff Report. The second Planning Advisory Committee (PAC2) was formed for developing, reviewing, and providing input on the level of treatment decision. The PAC2 was comprised of representatives from businesses, residents, environmental groups, and local cities within the District's service area. The group met five times from November 2001 through May 2002. The PAC2 Summary Statement is contained in Attachment 1. Although there was no consensus as to what level of treatment the Board of Directors should select for the future, it is important to note that there was a group consensus that Alternative A, Ocean Plan Permit Limits, is an unacceptable treatment level for the District. Alternative A is the currently adopted treatment level, and the "Preferred Alternative" of the District. Regardless, the District has continued to operate at the 50- percent advanced primary and 50-percent secondary blended effluent treatment level. Board of Directors Level of Treatment Options for Consideration Each treatment level alternative, as presented in this Staff Report and the Draft Interim Strategic Plan Update Report prepared in June 2002 by CDM, will require different implementation measures. The treatment alternative requiring the least amount of Board action is Alternative A— Ocean Plan Permit Limits. This is because it is the current District adopted "Preferred Alternative"for treatment and thus would require minimal future decisions to implement. This "Preferred Alternative" does include participation with the GWRS project. The remaining options would require resolutions, CEQA certifications, possible revisions to rates, etc. to be updated prior to implementation of a Capital Improvements Program (CIP). The following summarizes the issues associated with implementation of the four treatment options: Alternative A— Ocean Plan Permit Limits 1. Existing resolutions and CEQA certifications are in place — No change required. 2. Prepare an Ocean Discharge permit application for current planned facilities and level of treatment for October 2002 Board consideration. This includes provision for 301(h) discharge limits and participation in the GWRS project. 3. Continue investigating toxicity and ammonia management with the implementation of the GWRS project and point source urban runoff diversions. Altemative B—Blended Discharge of 50% Primary and 50% Secondary Effluent 1. Revise and/or replace Board resolutions to establish this level of treatment as the "Preferred Alternative." 2. Revise the current CIP and rate structure. Page 4 of 8 July 9, 2002 3. Change the certified CEQA treatment"Preferred Alternative" to this level of treatment. This will require the issuing of a "Statement of Overriding Considerations." This statement will note that despite the additional impacts caused by this treatment alternative as compared to Scenario 2 of the 1999 Strategic Plan, water quality concerns outweigh other environmental concerns. 4. Prepare an Ocean Discharge permit application for revised planned facilities and revised level of treatment for October 2002 Board consideration. This includes provision for 301(h) discharge limits and participation in the GWRS project. 5. Present a detailed plan for treatment implementation program for Board review and approval with the next budget cycle. 6. Continue investigating toxicity and ammonia management with the implementation of the GWRS project and point source urban runoff diversions. Alternative C—Full Secondary 1. Revise and/or replace Board resolutions to establish this level of treatment as the "Preferred Alternative." For this alternative, District staff asks that the Board establish treatment performance goals consistent with secondary treatment, as defined by the CWA. District staff is not seeking a treatment technology specific alternative. This would allow the emerging technologies and combinations of existing technologies to be employed to best meet the District's needs: environmentally and economically. This would also allow the District to potentially reduce some of the currently estimated costs and potential impacts as new facilities are designed and constructed in the future. 2. Revise the current CIP and rate structure. 3. Change the certified CEQA treatment"Preferred Alternative" to this level of treatment. This will require the issuing of a "Statement of Overriding Considerations." This statement will note that despite the additional impacts caused by this treatment alternative as compared to Scenario 2 of the 1999 Strategic Plan, water quality concerns outweigh other environmental concerns. 4. As described above the District has two options for processing is Ocean Discharge permit application: A. Prepare an Ocean Discharge permit application for revised planned facilities and revised level of treatment for October 2002 Board consideration. Option 4A would include the District reapplying for approval of the present 301(h) discharge limits through the next permit cycle. This option would allow the District to operate under the CWA as it gears up for full secondary treatment. Following this procedure would avoid the District being immediately declared Page 5 of 8 July 9, 2002 in violation of the CWA. It is anticipated to take about 11 years, or two permit cycles, to implement the full secondary treatment, which is consistent with the City of Los Angeles's timeframe for full secondary treatment implementation. -or- B. Prepare an Ocean Discharge permit application for revised planned facilities and revised level of treatment for October 2002 Board consideration. This option would not include an application requesting approval of the provision for 301(h) discharge limits. This option could require the District to operate outside the CWA, or operate under an administrative order, as it gears up for full secondary treatment. Again, it is anticipated that it will take about 11 years, or two permit cycles, to implement the full secondary treatment. 5. Present a detailed plan for treatment implementation program for Board review and approval with the next budget cycle. 6. Continue investigating toxicity and ammonia management with the implementation of the GWRS project and point source urban runoff diversions. Alternative D—Alternative Technologies 1. Revise and/or replace Board resolutions to establish this level of treatment as the "Preferred Alternative." 2. Revise CIP and rate structure. 3. Change the certified CEQA treatment"Preferred Alternative" to this level of treatment. This will require the issuing of a "Statement of Overriding Considerations." This statement will note that despite the additional impacts caused by this treatment alternative as compared to Scenario 2 of the 1999 Strategic Plan, water quality concerns outweigh other environmental concerns. 4. Prepare an Ocean Discharge permit application for revised planned facilities and revised level of treatment for October 2002 Board consideration. This includes provision for 301(h) discharge limits and participation in the GWRS project. 5. Present a detailed plan for a treatment implementation program for Board review and approval with the next budget cycle. 6. Continue investigating toxicity and ammonia management with the implementation of the GWRS project and point source urban runoff diversions. 7. (Optional) Combine Alternative D with Alternative C and set the effluent limit for the District at Full Secondary Treatment, as described under Alternative C, Item 1, above. Page 6 of 8 July 9, 2002 Issues Related to Section 301(h) of the Clean Water Act Maddox Bill (AB1969) This Bill would modify the State's Water Code to require full secondary treatment of the District's discharges. As of June 11, 2002, this bill has been approved by the State's Assembly, has passed through Senate's Environmental Quality Committee, and will be heard after August 1, 2002 by the Senate's Appropriations Committee. Also, the bill requires the District and its ratepayers to accept the full cost burden of the mandated legislation. Finally, Blake Anderson continues to update the Board of Directors on progress of this proposed legislation. City of Los Angeles and LACSD These agencies, after a lengthy and costly negotiation with the EPA and RWQCB for a modified permit, elected to go the full secondary treatment. They subsequently withdrew their applications for operation under Section 301(h) in the CWA. This resulted in negotiated "Consent Decrees"with EPA, approved by the Federal District Court. These allowed them to continue to discharge blended primary and secondary effluents until the new secondary treatment facilities could be constructed. Others in similar situations included the City of Watsonville, and the City and County of San Francisco. LACSD paid fees and fines the following related to its clean water act violation: • $500K Penalty • $200K Attorney's Fees for Interveners • $1 M Water Recycling • $1.2M Household Hazardous Waste Program The City of Los Angeles paid fees and fines the following related to its clean water act violation: • $625K Penalty • Up to $3.3M for Santa Monica Bay Study • Requirement to hire additional treatment plant operators City of San Diego The City of San Diego electively gave up the opportunity to amend its original application which had received tentative denial in the 1980's. After, San Diego realized the billions of dollars it would cost to achieve full secondary treatment together with the lack of adverse ocean impacts associated with the longer, deeper ocean outfall they had constructed and put into operation in the early 1990's. San Diego requested and obtained Congressional legislation that allowed the City to apply for a modified Ocean Page 7 of 8 July 9, 2002 Discharge permit under the provisions of 301(h) in the CWA. The City's 1995 application cost of$1 million dollars to compile and was approved in record time in late 1995 after a six month technical review allowing discharge of only advanced primary treatment. In 2001, the City applied for renewal which received tentative approval from EPA and was approved by the California Regional Water Quality Control Board, San Diego Region in April of 2002. The California Coastal Commission did not certify the proposed permit for compliance with provisions of the Coastal Zone Management Act, but has agreed to reconsider its consistency determination after the Governor, the State Water Resources Control Board, and the State Resources Board all expressed concerns. Goleta Sanitary District The Goleta Sanitary District applied for renewal of its Ocean Discharge permit in 2001 and received tentative approval in 2002 by the RWQCB Staff. In April 2002, the Central Coast Regional Water Quality Control Board directed Staff to prepare findings not to approve the new Ocean Discharge permit. The proposed Resolution of Findings will be considered at a Regional Board Meeting in July 2002 and, if adopted, is likely to be appealed to the State Water Resources Control Board if the Board acts to disapprove the permit. Initially, the RWQCB Staff had recommended approval of the use of the Section 301(h) provisions in the CWA and found no technical basis for not approving the permit. Testimony presented by various opposition groups alleged a number of potential concerns, but no there was evidence to show violation of standards or any impact to existing beneficial uses of the ocean. The appeal process should take a year to 18 months. City and County of Honolulu This marine discharger was involved in multi-year litigation over its permits. Honolulu did prevail and continues to discharge less than full secondary effluent to the ocean. Regardless, they had to settle the lawsuit in such a manner that they had to spend over $10 million dollars to conduct scientific studies to demonstrate that there were no harmful effects related to its ocean discharges. Because of the studies, upgrading to provide enhanced primary treatment with disinfection and some reclamation was the outcome of the recommendations by the independent scientists. Page 8 of 8 PDC COMMITTEE tneeang Dace To Btl.UDir. 11p/o2 a/2o/a2 AGENDA REPORT Item Number Item Number PDCD283 130) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Robyn A. Wilcox, Project Manager SUBJECT: EFFLUENT PUMP STATION ANNEX, JOB NO. J-77 GENERAL MANAGER'S RECOMMENDATION Approve Addendum No. 3 to the Professional Services Agreement with Black & Veatch Corporation for Effluent Pump Station Annex, Job No. J-77, providing for additional design engineering services for an additional amount of$304,000, increasing the total amount not to exceed $4,015,523. SUMMARY Background • The Effluent Pump Station Annex (EPSA)will replace the existing Foster Booster Pump Station with a new pumping facility that is capable of providing adequate backup capacity to the existing Ocean Outfall Booster Station (OOBS) during excess flow events and routine maintenance. The EPSA structure will house 3-120 million gallons per day (mgd) pumps. Two of these pumps will provide a firm backup capacity of 240 mgd, which is half of the nominal capacity of the existing ODES facility. The third 120 mgd pump will serve as a backup for these two units. • The EPSA is being designed to accommodate the pumping of secondary treated water exclusively through the 78-inch ouffall during excess flow events. The EPSA facility will also have the ability to provide backup for half of the OOBS facility during high flow occurrences and routine maintenance of the COBS facility and pump to either the 120"or 78" outfall. • The EPSA project will also construct a Standby Power Facility (SPF)which will allow OOBS or the new EPSA pumping facility to remain in operation should these facilities experience the loss of electrical power. The SPF facility was originally designed to provide enough power to support a maximum pumping capacity of 480 mgd (comparable to high flow capacity). This aspect of this project had reached a 60% completion. However; upon recent review Of Orange County Sanitation District policy and revised flow projections and overflow risks with respect to power loss, it was decided to provide power for 240 mgd which translates to the average daily flow requiring pumping through the ouffall system. Staff also decided to provide design provisions for expansion of this facility should future needs necessitate it. Page 1 Addendum No. 3 with Black & Veatch Corporation consists of several additional work items as shown in the following table and outlined below: Item Additional Work Items Request Money per Number Work Item 1 Downsizing of Standby Power Facility $126 500 2 Additional Fire Protection Measures $33 500 3 Additional Landscaping $6 000 4 Security,Telephone and Public Address Systems $33,000 5 S ecificat!on Updates/RWQC13 permitting Charges $20 000 8 Instrumentation & Controls Upgrades $83 000 Total Request for Additional Work Items $304.000 ADDITIONAL INFORMATION 1. Downsizing of Standby Power Facility (SPF): This item includes the cost for revision of the design to downsize the SPF. As this facility had reached the 60% design phase, it will require that the Consultant and Subconsultant(s)do extensive renovation of the existing plans to provide design for the smaller facility to include: • Deleting north generator room and extending the east wall of the south generator room to the east to match the existing edge of the electrical room. • Resizing the south generator room to house five generators and installing three generators as part of this project and design provisions (i.e., pad, conduit, circuit breaker and controls)for a fourth generator to be installed as part of the P2-66 Headworks Project. Space and minimal provisions will allow the installation of a fifth unit in the future. This project will not provide a circuit breaker or controls at this time for this fifth unit—only space and below grade conduit to facilitate its future installation. • Redesigning the building's appurtenant systems (HVAC, Fire Protection, etc.) for five generators. • Redesigning the electrical system to support four generators, with only cabinet sections and circuit breaker being provided for the fourth P2-66 generator. Resizing the ampacity of the switchgear for five generators. Similarly, resizing the feeders to the Ocean Outfall Booster Station and Effluent Pump Station Annex facilities to handle this decreased capacity. Page 2 Cost for this Rem is estimated at$128,500 to redesign the facility and update the associated contract documents (drawings, specifications, soils report, control narrative, and other Instrumentation and Controls (I&C)submittals, including the Equipment& Instrument Database (EID) and SCADA Access Tool (SAT). A fee break down by discipline is as follows: Architectural $ 11,000 Civil $ 10,500 Geotechnical $ 2.500 I&C $ 14,000 Mechanical (HVAC/Plumbing) $ 16,500 Structural $ 25,000 Mechanical (Piping) $ 15,500 Electrical $ 33,500 Total Item 1 Cost $128,500 2. Additional Fire Protection Measures: This Rem covers the expense associated with provision of additional Fire Protection measures in keeping with the City of Huntington Beach (CHB) Fire Department. As the original design for all facilities was in compliance with the National Fire Protection Agency's 820 fire code provisions, the Orange County Sanitation District (District)did not require automated fire protection sprinklers in its original design. However, after extensive review with CHB Fire personnel, Staff elected to install the fire sprinklers but with the special provision that control interlocks will also be added to prevent the sprinklers from engaging in the SPF Generator Room while the generators are operating. The addition of automated fire sprinklers with control interlocks to the design is beyond the original design scope. The District has also requested that smoke dampers and duct mounted smoke detectors be added to all ductwork with flow exceeding 2,000 cubic feet per minute (dm). Further, the District has requested that plans and riser diagrams for the system be developed in addition to updating the District's performance-based master specification. Estimated cost for this item is $33,500 and is broken down as follows: Fire Protection System $13,500 Fire Sprinkler Interlock Devices $ 8,000 Duct Smoke Detectors/ Interlocks $12,000 Total Item 2 Cost $33,500 3. Landscaping: This Rem covers additional landscaping provisions as required by CHB. As CHB administers the Coastal Development Permit for the State of California, Staff deemed it necessary to provide additional landscaping for this project to ensure that we do not encounter any obstacle to obtaining our Coastal Development Permit. Cost for this additional work is estimated at$6.000. Page 3 4. Security. Telephone, and Public Address Systems: This item includes the installation of security, telephone, and public address systems. The original scope did not include any of these items as it was thought that Orange County Sanitation District (District) personnel would install them through other means after this project is completed. However, with current revisions to the standard master specifications, these items are to be provided by this project's design. In addition, provision of these items will require a rather extensive redesign to the buildings and the associated contract documents (drawings, specifications, control narrative, and other Instrumentation and Controls (I&C) submittals, including the Equipment & Instrument Database and SCADA Access Tool. Estimated costs for this item are estimated at $11,000 for each building or$33,000 for all three structures. 5. Specification Updates / RWQCB Permitting Charges: This item requires implementation of extensive updates to the Division 3 (Concrete) Specifications. After the review of Design Submittal #2 (DS2),the District further revised the Concrete Division Specifications. Integration of these upgrades into the DS2 documents is estimated at$8,000. Also, revisions have occurred recently to the requirements for RWQCB permitting. These changes require the Consultant to prepare a Storm Water Permit and make several provisions for spill prevention. To implement these revisions, cost is estimated at$12,000. Combined costs for this item is $20,000. Instrumentation & Control Upgrades: This item envelops the modifications that have been requested by the District to incorporate extensive changes not covered in the Revision "D" I&C Standards required by the current scope. However, as this project has progressed and more appropriate design measures have been identified, 1&C has identified the following modifications which are beyond the Revision "D" Standards. These additional District requests involve revisions to the contract documents for the following items: • P&ID: Implementation of newly issued P&ID border. Modifications to District Baseline P&IDs. Estimated cost is $6,400. • Interposing Relay: Request for Size One Relays. Cost is estimated at$5,500. • MOV Inputs: Request for use of electronic actuators and provision of additional signal points. Cost is estimated at$4.600. • Schematic Line Number Cross References: Request to update the schematic drawings to show cross references for all lines leaving and entering the drawing. • Fiber Optic Schematic: Update District's plant-wide fiber optic schematic to reflect the new fiber optic runs. Cost estimated at $6,000. • Hardwire Signals to PEPS VFD: Revision of design to show hardwired signal between PEPS VFD and the JB-4 Connection Box weir gate. Involves field Page 4 , investigation, revisions to P&IDs and revision of previously designed ductbanks to accommodate the additional signals. Cost is estimated at $5,600. • Remote 1/0 Panels: Coordination of switch, relay and equipment in the cabinet, schematic diagrams, plan/section drawings, and resolution of Orange County Sanitation District (District) preference for a 10-slot chassis. Cost is estimated at$16,500 for this item. • MCC Remote 1/0 Panel: District has requested the MCC to have a two panel layout in addition to all the revisions required for coordination of switch, relay and equipment in the cabinet, schematic diagrams, plan/section drawings, and resolution of District preference for a 10 slot chassis. Estimated cost for this item is $8,000. • Analog Output Module: District preference is for a single source power requirement that is shared by a four channel module. Cost is estimated at $2,500 for this item. • Fiber Optic Transmitters: Revise contract documents to reflect the District's preference for Medicon optic receivers. Cost for this item is $2000. • QA/QC for Addendum Items: Additional QA/QC for all additional requested items. Cost for this item is estimated at$19,500. Total cost for this item is $83,000. As design of this project has progressed, the necessity for several out-of-scope items has evolved. Staff recommends the inclusion of these items in the overall design of this facility. Staff has negotiated all costs with Black &Veatch (B&V) after extensive review and discussion and has found them to be reasonable to perform the work. PROJECT/CONTRACT THE ADDITIONAL COST SUMMARY Authorization of an additional $304,000 is being made under the "Consultant Professional Services Agreement" and an additional $13,000 under the "Studies/Permitting" budget as indicated in the attached Budget Information Table. The additional $13,000 is to cover the extra Supplemental EIR preparation and permitting issues that have been necessary for this job. BUDGETIMPACT ® This item has been budgeted. (Line item: FY 2000-01, Section 8, Page 95, Capital Improvement Program, Ocean Outfall Systems, Effluent Pumping station Annex, Job No. J-77) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Transfer of$317,000 from the contingency budget is being requested with no change to the overall project budget. The total project budget is $50,827,000. Page 5 I ALTERNATIVES No Alternatives are proposed. CEQA FINDINGS The Rehabilitation of Foster Pump Station (FPS)was included in the 1999 Strategic Plan EIR. The EIR was certified on October 27, 1999, and a Notice of Determination was filed on October 29,1999. A supplemental EIR has been initiated to update the Program EIR to reflect replacement of FPS rather the rehabilitation indicated in the Strategic Plan. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report RW:jo:sa G:WglobaMgenda Draft Repoft\PDCV-77 AR for Addldoc Page 6 BUDGET INFORMATION TABLE EFFLUENT PUMP STATION ANNEX JOB NO.J•77 OPUOINAL CURRENT PROPOSED PROPOSED FUNDS THIS ESTIMATED- ESTIMATE PROJECTRA8K AUTHORIZED PROJECT: , itBUDGET .REIIISED AUTHORIZED TO 'AUTHORIZATION PROPOSEDTOTAL EXPENDITURE D BUDGET BUDGET , INCREASE BUDGET' t DATE ' REQUEST ' AUTHORIZATION TO DATE EXPENDED TO Project Development $ 100,000 $ 2,000 $ 2,000 $ 1,756 1,756 1,756 100% StudlestPermiUl $ 24,000 $ 37,000 $ 13,000 50.000 $ 37 000 111 13,000 60,000 48,614 97% Consultant PSA $ 2.500.000 $ 3.208.000 304 000 $ 3 512 000 $ 3,711.523 S 304.000 S 4.015.523 $ 2 550 340 64% Damon Staff $ 1 901 000 $ 720,000 $ 720 000 720 000 $ 720 000 $ 200 334 28% E ion $ 19 078 000 $ 37 004 000 $ 37 004 000 $ 8 085 onation $ 1698 000 $ 1 645 000 $ 1 645 000 $ B 359 onn $ 369000 $ 1311000 $ 1311000 n $ 2 678 000 S 7 000 000 $ 317 000 $ 6 683 000 T TOTA $ 28.346.000 $ 50,827,000 1 $ 50.827.000 1 $ 4.470.279 $ 317,000 $ 4.787,279 $ 2,817,488 59% Raimbumble Costs PROJECT NET 1 $ 28,346.000 1 $ 60,827,000 $ 50.827,000 $ 4,470,279 $ 317,000 $ 4,787.279 $ 2,817,488 59% EMS M742121 f77 903 BIT Professional Services Agreement Status Report Effluent Pump Station Annex Job No. J-77 Total Project Budget: $50,827,000 Consultant: Black& Veatch Engineers Start Date of Project: May 25, 2000 Date Addendum Description Cost Accumulated Costs 5125/00 Original Effluent Pump Station Annex, Job No. J-77 $2,208.810 $2,208,810 PSA 8127/01 Addendum Provide Additional Preliminary and Final Design $1,273,113 $3,481,923 #1 Work, & Addition of Emergency Backup Power and Structure. 5122/02 Addendum Provide Additional Scope Items to include I&C $229,600 $3,711,523 #2 Upgrade, Utility Location, Demolition of FPS, 42" Siphon, 96" BFV Replacement, and North Entry Gate Modification. Pending Addendum Provide Additional Scope Items to include $304,000 $4,015,523 #3 Redesign of SPF; I&C Upgrades; Fire Protection; Additional Landscaping; Security, Telephone, and PDA Systems; and, Specifications Upgrades. J-77 PSA Status Rpt B&V EDMS 003742122 C.XRIeNe1W IPV-77 PSA SUMS Report B&V.eec 10/10/02 Revised O5/14/98 PDC COMMITTEE MeenogDate Tosa.orDr. urmro2 11zo1oz AGENDA REPORT Item Number Item Number PDCU2-34 13n1 Orange County Sanitation District FROM: David Ludwin,Director of Engineering Originator: Sejal Patel, Engineer SUBJECT: SPACE ALLOCATION AND INTERIOR RENOVATION JOB NO. J-84 GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to negotiate Addendum No. 3 with Fluor Signature Services for Phase III of the Space Allocation and Interior Renovation, Job No. J-84, providing for a detailed engineering design and preparation of plans and specifications. SUMMARY • The purpose of this project is to provide much needed space for our Staff and align space use with how we are organized, while improving lighting, parking, meeting areas, and the filing and storage system. • In March 2001, the Orange County Sanitation District(District) awarded the Professional Services Agreement(PSA)to Fluor Signature Services (Fluor)for Phase I of the Space Allocation and Interior Renovation, Job No. J-84. Phase I provided a Needs Assessment to define and outline the project through Staff involvement, participation, and survey. This work was completed in July 2001 and reported to the Planning, Design and Construction Committee in October 2001. • Based on Fluor s excellent performance and qualifications for Phase I of the Space Allocation and Interior Renovation, Job No. J-84, in October 2001, the District amended the existing PSA by awarding Addendum No. 1, amending Fluor's existing PSA for Phase II work. Phase II provided detailed conceptual design. In June 2002, Addendum No. 2 was awarded to include conceptual design work for the Board Room and the restructured Engineering Department, and additional furniture inventory. This work was completed in June 2002. • The preliminary construction cost estimate is $8.8 million, including the new furniture cost. The estimate includes the construction of a new building for Information Technology Department and the relocated Finance Division, a centralized multi-purpose meeting/eating area, the renovation and expansion of the existing Administration Building, and common area modifications including landscaping and parking. • Fluor has satisfactorily completed Phase I and Phase II of this project. It is in the best interest of the District to retain the same firm for Phase III because they have a deep technical understanding of the challenges ahead. G\vy.0labgaMa,BcaN 1genLLa Regxts,1003 aaaN Rpen4 Reports\110NIem 1]G)Flua tlec Rnensetl. a„ova Page 1 • Fluor Signature Services has provided an excellent approach, methodology, and facilitation all through Phase I and Phase 11, and has established excellent working relationships with the Orange County Sanitation District's (District) staff. • The General Manager is seeking authorization to negotiate Addendum No. 3 to Fluor's existing Professional Services Agreement (PSA). • Following fee negotiations, authorization to proceed with Addendum No. 3 for Phase III will be requested at the subsequent Planning, Design, and Construction Committee and the Board Meetings. The estimated engineering cost is $900,000. PROJECT/CONTRACT COST SUMMARY See PSA Status Report and Budget Information Table. No budget revision is being requested at this time. Below is the table summarizing current problems, solution, benefits, and construction costs: PROBLEMS SOLUTION BENEFITS COST Information New building for Provides permanent $2,737,000 Technology Information offices for 46 Department, in Technology and Information cramped and Finance Staff— Technology Staff, distributed facilities; 29,000 sq. ft. computer server Staff is currently and staging areas, located in the old training facilities and Control Center meeting rooms; 20 (originally Finance Staff will constructed in the also be relocated to 1940's as a pump this building station and modified into a building in the 1950's) and "temporary"trailers within the process area built in 1996 Lack of centralized Renovated Consolidate $2,122,000 Engineering Staff— Administration Planning, Project approximately 70 Building Management Office, Engineering Staff in and Engineering "temporary"trailers and Construction staff for efficiency, increased collaboration and teaming v:M GIauGmNBw,E/yenN Reryti3042& WP li0 11lon—IMIt.F1WA% +�- •,� Page 2 PROBLEMS SOLUTION BENEFITS COST Lack of centralized Move Finance Staff Source Control $516,000 Source Control Staff to the new building inspection team will —approximately 13 to allow all Source join with office Source Control staff Control Staff in the engineers and are located in the Administration administration staff shop area Building for better communication and collaboration No lunch room for Centralized Provides a place for $622,000 Administration Staff Lunch/Multipurpose staff to eat, Room in the new collaborate, and building—3,239 sq. hold meetings ft. Insufficient and Provide 72 Better organization $800,000 unsafe parking— additional parking and extension of Staff are now spaces in front of parking lots; Added parking along the Administration parking spaces for interior roadways Building and along visitors; Safer Within the flow of the North Perimeter driving conditions heavy truck traffic Road; improved and pedestrian landscaping walkways through improved roads Inefficient use of Renovate and Reconfiguration of $858,000 space— reconfigure existing space to troublesome Administration provide efficiently movement of foot Building spaced work areas traffic through work with proper filing, areas storage, and meeting areas BUDGETIMPACT ® This item has been budgeted. (Line item: 147, Budget FY2002-02) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The existing office space and facilities are inadequate for the long-term need of the Orange County Sanitation District. The existing Administration Building was reconfigured approximately ten years ago, long before many of the programs that are so familiar to us today were in existence. G:by.ErenB \&V,E RgnN RapMs\TWR BwN ApmEa Repon¢\110Ntem 1Jp).FluaAac Ravaa:&14M Page 3 l� Historically as the Orange County Sanitation District's (District) administrative staff needs grew, the personnel were accommodated in existing facilities wherever space was available, or temporary trailers were added to address the specific need. This has resulted in inefficiency in space utilization and de-centralization of individual divisions and departments. There are several staffing issues that need to be addressed. The 46 staff members of the Information Technology Department are currently housed in "temporary"trailers in the treatment process area and in a aging and decrepit 50 year old building; the Source Control inspectors, now housed in shop area, need to move to the Administration Building to allow more efficient work coordination with the rest of the Source Control staff; the Engineering and Construction staff facilities at Plant No. 1 are also in trailers. There are also storage and parking problems that need to be tackled. Source Control Division is short of storage area for files, documents, reports, and correspondence. The Accounting Division needs to move its storage area from the Control Center to the Administration Building to allow more space for the Operations & Maintenance staff, and to access the stored material promptly. Parking has been a problem in the recent past within the Administration front and rear parking lots. Employees and visitors are not able to find parking. ALTERNATIVES The District could consider issuing a Request for Proposal for design services to other prospective firms, or stopping this project altogether. CEQA FINDINGS CEQA requirements will be considered and an appropriate CEQA action will be taken to address Job No. J-84 during the design phase. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report SP:sa WwpAtalagenda\Board Agenda ReportM2002 Boats Agenda Re9orts\1102Uwn 130I.FIuor.doc G'.AVAMb Wda\aftfflN R9pylsQ=aWN AWn ft x \110Nem 139).A p Raw.:flnM Page 4 BUDGET INFORMATION TABLE SPACE ALLOCATION & INTERIOR RENOVATION JOB NO. J-84 k ORIGINAL CURRENT, PROPOSED PROPOSED' FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECUTASKI AUTHORIZED PROJECT; `:BUDGET ' REVISED? t AUTHORIZED AUTHORIZATION i -. TOTAL ERPENbITURE EXPENDED BUDGET - BUDGET IRCREASE . BUDGET ` -TO DATE REdUE5T AUTHolum 10N TO DATE Tb DATE(,4 Project Development $ 3,200 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20.000 100% Studies/PerrNtling $ 40,0001 $ 40,0001 $ 40.000 $ 40,000 $ 25,000 63% Consultant PSA $ 156,800 $ 1,129000 $ 1,129000 $ 463000 $ 463,000 $ 430,000 93% Desl n Staff $ 37,300 $ 355.000 $ 355,000 $ 355,000 $ 355,000 $ 87,000 25% ConsWction Conbacl $ 8,815,000 $ 8815000 ConsWcBon Administration $ 268000 $ 268.000 ConsWction Ins action $ 347 000 $ 347,000 Contingency $ 47,000 $ 2,000,000 $ 2,000000 PROJECTTOTAL $ 244,300 $ 12.974.000 1 $ 12,974,000 $ 878,000 $ 878,000 $ 662,000 64% Reimbursable Costs PROJECT NET $ 244,300 $ 12,974,000 1 1 $ 12.974,000 1 $ 876,000 $ 878,000 $ 562,000 64% EDMS 003733692 Professional Services Agreement Status Report Space Allocation and Interior Renovation Job No. J-84 Total Project Budget: $12,974,000 Consultant: Fluor Signature Services Start Date of Project: March 26, 2001 Accumulated Date Addendum Description Cost Costs March Original PSA Phase I — Needs Assessment, to define $156,800 $156,800 2001 (Phase 1) and outline the project for implementing interior renovation, incorporating the current spacing needs, and a vision to change the culture/environment at Plant No. 1. October Addendum 1 Phase II — Conceptual Design for site $272,000 $428,800 2001 (Phase 11) improvements, architectural concepts, interior renovation and space utilization. June 2002 Addendum 2 Expands Phase II Scope of Work by $34,200 $463,000 (Phase 11) adding: • Boardroom Conceptual Design • Furniture Inventory for Information Technology • Program addition of Construction Management and PMO Pending Addendum 3 Phase III - Detailed Engineering Design $900,000 $1,363,000 (Phase 111) and Preparation of Plans and (Estimate) (Estimate) Specifications for Construction. EDM3003739030 The FAHR minutes of the meeting held November 13, 2002 were not available for this mailing . These minutes will be distributed at the November 20, 2002 Board of Directors meeting . Once the minutes are finalized , they will also be available on the District's website (www.ocsd.com). FAHR COMMITTEE Meebng Dam To So.of Dir. 11/13/02 11/20/02 AGENDA REPORT 1�niNanibef 1OeniNinbg FAHR02-95 14(c1 Orange County Sanitation District _ FROM: Gary Streed, Director of Finance Originator: Michael White, Controller SUBJECT: TREASURER'S REPORT FOR THE MONTH OF OCTOBER 2002 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurers Report for the month of October 2002. 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. Some funds are also deposited in the State of California Local Agency Investment Fund for liquidity. 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" portfolios. The District's extemal money manager is operating in compliance with the requirements of the District's Investment Policy. The District's portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Liquid Operating Monies and on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for of the Long-Term Operating Monies, there is an investment policy compliance issue pertaining to the holding of two securities that had an acceptable rating at the time of purchase but have since fallen below the minimum rating allowed by the investment policy. The District's investment policy requires a minimum rating of A3 by Moody's or A- by S&P,with at least a BBB rating in the event of a split rating, at the time of purchase. The first security is the holding of$1 million par of the Public Service Co. of Colorado corporate bond with an April 2003 maturity, whose rating with S&P has remained at BBB+ by S&P, but has fallen with Moody's from A3 to BAA1. PIMCO believes that the company has sufficient asset coverage to cover debt as well as the ability to issue first mortgage debt to meet its 2003 debt maturities, if required, and the District would suffer an unwarranted loss if this security was sold now. The second compliance issue pertains to the holding of a United Airlines (UAL)Asset Backed Security whose rating from Moody's has fallen twice, first from A3 to BA1, and then to BA3. Likewise, the rating from Standard & Poors has also fallen twice, first from A-to BBB, and then to BB. Although these ratings are less than what is required at the time of purchase, PIMCO believes, based on the financial strength of UAL and the G 1rq.EPoaOnNa&arE npnW FepartSmo2 Beam Pgm6 Repatsl IONvn IIcI Tmawsflrym.u¢ Page 1 v- underlying collateral of the security, that the District again would suffer an unwarranted loss if this security was sold. The District's investment policy does not require any action because of"credit watch" notices or the decline in credit standing. PIMCO will continue to monitor the credit very closely. Historical cost and current market values are shown as estimated by both PIMCO and Mellon Trust. The District's portfolios are priced to market ("mark-to-market") as of the last day of each reporting period. The slight differences in value are related to minor variations in pricing assumptions by the valuation sources at the estimate date. PROJECT/CONTRACT COST SUMMARY None. BUDGET IMPACT ❑ 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) ADDITIONAL INFORMATION Schedules are attached summarizing the detail for both the short-term and long-term investment portfolios for the reporting period. In addition, a consolidated report of posted investment portfolio transactions for the month 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. Also provided is a summary of monthly investment balances and transactions within the State of California Local Agency Investment Fund (LAIF). These reports accurately reflect all District investments and are in compliance with California Government Code Section 53646 and the District's Investment Policy. Sufficient liquidity and anticipated revenues are available to meet budgeted expenditures for the next six months. The following table details the book balances of the District's investment accounts at month-end. A graphical representation of month-end balances is shown on the attached bar chart. G'.Wq.Ule"mV2Nv."iWP"R nft,T,"e R..QW2MkMEASRPTII I W2 he Page 2 Book Balances Estimated Investment Accounts October 31,2002 Yiaw(%) Y State or Calif. LAIF $ 18,054,840 2.49 Union Bank Checking Account 802.460 N/A Union Bank Overnight Repurchase Agreement 1,6441000 1.09 PIMCO—Short-term Portfolio 43,778,347 3.80 PIMCO-Long-term Portfolio 312.13M.016 5A0 Debt Service Reserves w/rmstees 35,678,750 4.82 Petry Cash 5.000 N/A TOTAL sd12.817 dti ATTACHMENTS 1. Monthly Investment Reports 2. Monthly Transaction Report MW:IC e:M9EIWmV]MxMI T MPNbnINy Tr-.�6TleE Rffl11302 Page 3 / 1 111 111 IN . • 1 1 1 1 1 1 / IIIIIIIIIIIIIIIIIIII iiiiiiiiiiiiiiiiim _ SWUM �IRIIIIIIIIIIII 11 111 111 // j/ I \\ '. 1 1 1 1 1 1 1 ■:ii'fii:::G >::raY:{: jj/ :�••: jj/ jj/ '. 11 111 1 / 1 .�:::�i:�:�:�Si:i■::�:�:�i>iiii:■� �i:::2;: :..! i..•: '� •::::■ 1 111 111 11 111 111 :::. ••■ ■{y:•}liii�:■:::::::::::::)::}:■:::::::::}:tip: y4W:r•.■J:'�f'•'::l!?•■ 1 1 1 1 1 1 1 :r:•... :�> r:.•: p.{!.L}' 1 . 0 ■ 11 / / 11 11 11 11 9 Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund October 31, 2002 Par Value Book Value Market Value Rate Yield Balance October 1,2002 $31,242,124 $31,242,124 $31,242,124 2.49 2.49 Quarterly Interest Distribution 112,716 112,716 112,716 2.49 2.49 Withdrawals: 1022002 (1,900,000) (1,900.000) (1,900,OD0) 2.49 2.49 10/92002 (3,300,000) (3,300,000) (3,300,000) 2.49 2.49 10/172002 (1,600,000) (1,600,000) (1,600,000) 2.49 2.49 10232002 (6,500,000) (6,500,000) (6,500,000) 2.49 2.49 Total Wdhdrawls (13,300,000) (13,300,000) (13,300,000) 2.49 2.49 Balance October 31,2002 $18,064,840 $18,054,840 $18,054,840 2.49 2.49 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2002) Page 1 of 2 Liquid Operating Monies(603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $44,153,483 • Mellon $44,159,991 Historical Cost: • PIMCO $44,463,608 • Mellon $44,466,932 15.1.2 MODIFIED DURATION Of Portfolio: 0.22 Of Index: 0.20 15.1.3 1%INTEREST RATE CHANGE Dollar Impact in/loss of 1%Change: $97 138 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: 63% 15.1.6 PORTFOLIO QUALITY Averse Portfolio Credit Quality: "AAA" 15.1.7 SECURITIES BELOW"A"RATING %of Portfolio Below"A": 2% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" No• 15.1.9 PORTFOLIO PERFORMANCE Total Raze of Return(%)by Portfolio Index Period: 1 Month: 0.12 0.14 3 Months: 0.55 0.42 12 Months: 2.23 1.94 Year-to-Date: 1.78 1.45 Commentary Interenrates at the shortsnd of the yield curse decreased duringthe month(3-month T-Bilk fell 10 basis points to 1.55%),while longer maturities increared(30-year Trenuriesrou 36 basis pointsto 4.99%). The Liquidpmtfolio nailed the benchmark by2 basis points duringthe month,butoulperfamed the benchmark by33 basis points year-to-dale. PIMCO's emphasis on higher yieldingsecuritiessuch w commercial paperand shomtemi notes enhuncedretums,but some short-term corporate issues ezperiencedprice declines as creditconcemsmounled. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INNESTMENTMANAGEMENTPROGRAM PIMCO'S PERFORMANCE MONITORING& REPORTING (for the month ended 31 October 2002) Page 2 of 2 *Compliance Issues: $1 million par of Public Service Co. of Colorado(744448BJ9),6.0%coupon, 4/15/2003 maturity, representing 2.3%of the portfolio holdings on a par basis, was purchased on 6/28/2002 with ratings of BBB+by S&P and A3 by Moody's. It was subsequently downgraded by Moody's from A3 to BAA 1 on 9/6/2002 while the S&P rating has remained unchanged. The District's guidelines require a minimum rating of A3 by Moody's or A-by S&P, with at least a BBB rating in the event of a split rating,at the time of purchase. The following points provide background information on the security as well as our basis for recommending holding the issue: • Public Service Co. of Colorado(PS Colorado)is an operating utility owned by XCEL Energy. While there are near-term liquidity risks at the parent company level,PIMCO does not foresee the same problems at the utility operating company level as PS Colorado has strong stand-alone credit metrics. • PS Colorado faces bank line maturities of$600 million in June 2003,which is two months after the April 2003 bond maturity. PIMCO believes the company has ample capacity to issue first mortgage debt to meet these maturities,if it were required. • PIMCO recommends holding this bond based on sufficient asset coverage to cover debt and the ability of the company to issue first mortgage debt to roll over its 2003 debt maturities, if needed. PIMCO will monitor the company's access to the capital markets and power markets very closely. • If the security was sold at the lowest price currently available(99.4894 per IFTC), the portfolio would realize a loss of$5,106 (approximately 1 basis point given the total portfolio value). However,as detailed above, PIMCO believes the bonds will pay off at par(100.0) at maturity next April. • PIMCO will continue to monitor the credit very closely. If anything changes that would prompt them to revise their recommendation or the security's inclusion within the District's portfolio, they will notify staff and take the appropriate action. G:MpOUNnV f01wMMTre,or MmILLIQ]MObY10.•TTdx v MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING&REPORTING (for the month ended 31 October 2002) Page 1 of 3 Long-Term Operating Monies(203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $317,777,863 • Mellon $317,782,237 Historical Cast: • PIMCO $304,554,291 • Mellon $304,713,263 1&1.2 MODIFIED DURATION Of Portfolio: 2.41 Of Index: 232 15.13 1%INTEREST RATE CHANGE Dollar Impact intloss oft%change: $7658446 15.IA REVERSE REPOS %of Portfolio in Reverse Repos: see attached schedule 0% 15.1.5 PORTFOLIO MATURITY %of Portfolio Maturing within 90 days: 12% 15.1.6 PORTFOLIO QUALITY Averalre Portfolio Credit Quality: AAA 15.1.7 SECURITIES BELOW"A"RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" Noe 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Rehm(%)by Portfolio Index Period: -0.02 -0.01 I Month: 2.17 2.13 3 Months: 5.86 5.60 12 Months: 6.92 6.47 Year-to-Date: • Three-month yields declined duringthe month(90day T-Bills fell 10 basis Prussian 1.45%)white longer mesuriliesincrcased(5-yem TrcssuryNaes rose 17 basis points to 2.73%). • The Ling-Term portfollo[called the benchmark by I basis points uring the mono,butoutperf rmed the benchmark by45 basis points year-to-de1<. • Portfolio duration was slightly longer than the benchmark,which had a reactive impact on performance as Interest rates increased on all but the shorter end of the yield verve. • A bro ider4han-index yield curve positioning deaacledfrom perfmmance. • Medprbaftsd securities added to performance as am seats outperf ened simikarduration Treasuries. • An underweight allocation to corporates was pmisiw for performance as the sector legged Treasuries. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 1002) Page 1 of 3 •Comnliance Issues: $1,600.000 par of United Airlines Pass-Through 2001-1-C(909317BC2),6.831%coupon,9/I/2008 maturity,representing 0.3%of the portfolio holdings-was purchased on 8/1012001;and subsequently downgraded by Moody's from A3 to BA I (on 9/182001)and S&P from A-to BBB(on 9/202001). The security was further downgraded by Moody's from BAl to BA3(on 12212001)and by S&P from BBB to BB(on 628/02). The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB rating in the event of a split. With respect to the UAL holding,PIMCO's recommendation for the issue has not changed,even in light of recant events. They are of the opinion that the spread, collateral,and issuer liquidity all point to continuing to hold the security. The following points provide basis for their recommendation: • foremost,PIMCO continues to believe that UAL will be able to avoid filing for bankruptcy. Almost all major US airlines have sufficient liquidity and unencumbered assets to survive today$bleak industry conditions. UAL is the second largest carrier in the world,and they believe that the company(and the industry)will survive. • Of all the major airlines,UAL's employees have the greatest incentives to provide labor concessions. Relative to its peers,UAL is unique in several aspects: employees own 55%of the company's stock,its pilots are the highest paid and its operating performance/management rank near the bottom. After having lost$2.1 billion in 2001 and$950 million through the first half of 2002,UAL has hit the point where changes are urgently required. • UAL employees have three sources of significant exposure in the event of a UAL bankruptcy filing:(1)Possibility that UAL will renege on its existing labor agreements;(2)Significant underfunding of UAL's employee post-retirement plan;and(3)Significant employee equity stake in UAL(55%of stock). These are powerful motivators to provide concessions and avoid bankruptcy. • In addition,the collateral underlying the bonds is good(very young planes,medium to high aircraft diversification,loan-to-value ratio is 60.75%,etc.). • Finally,PIMCO believes liquidation values continue to be much higher than reflected in current market prices. Current pricing levels overstate the risks. • If the security was sold in the lowest price currently available(40.787 per IDC),the portfolio would realize a loss of$947,408(approximately 30 basis points given the total portfolio value). However,w detailed above,PIMCO believes the fair market value of the issue is much higher than currently reflected in the market. This is a conservative loss estimate. Over the next month,PIMCO expects labor negotiations to remain intense,but believe that UAL will secure meaningful concessions from its labor groups to successfully restructure outside of bankruptcy. UAL's management will consider the recent Union offer and should reach a final agreement by mid-November,when the next debt payment is due. PIMCO will continue to monitor the credit very closely. If anything changes that would prompt them to revise their recommendation on the inclusion of the security within the portfolio,they will let us know to take appropriate action. Split Rated Securities Still In Compliance: •$4,500,000 par of Daimler Chrysler securities(cusip 233835AM9),maturing on December 16,2002,representing 1.4%of the portfolio holdings on a par basis. The securities were downgraded on 10/312001 by S&P from A-to BBB+;and now carry a Moody's rating of A3. The District investment policy requires a minimum rating of A3 by Moodys or A-by S&P,with at least a BBB rating in the event of a split rating. •$9,000,000 par of Ford Motor Credit securities(345397GV9,345397RV7,345397SJ3,345397SR5),maturing at various dates in 2003,2004,and 2005,represents 2.8% of the portfolio holdings on a par basis. The securities were downgraded on 1011 62 0 0 1 by S&P from A to BBB+;and now carry a Moodys rating of A3 after a further downgrade(from A2)on 1/162002. The District's investment policy requires a minimun rating of A3 by Moody's or A-by S&P,with at least a BBB in the event of a split rating. •$11,750,000 par of General Motors Acceptance Corp securities(370425QV5,37042 WE80,37042WZK0),maturing in 2003,represents 3.7%of the portfolio holdings on a par basis. The securities were downgraded on 10/162001 by S&P from A to BBB+;and continue to carry a Moodys rating of A2. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with in least a BBB rating in the event of a split rating. •. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 3/ October 2002) Page 3 of 3 •$3,000,000 par of Baltimore Gas&Electric securities(0591651)N7),maturing in 2012,represents 0.9°/a of the portfolio holdings on a par basis. The security was downgraded on 7/18/2002 by S&P from A to BBB+,but continues to carry a Moody's rating of A2. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB rating in the event of a split rating. •$3,500,000 par of Virginia Electric Power NT securities(cusip 927804EN0),maturing in 2006,represents 1.1%of the portfolio holdings on a par basis. The security was downgraded on 102 M002 by S&P from A-to BBB+,but continues to carry a Moody's rating of A3. The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB rating in the event of a split rating. G.uv,sdmlfrx122OIwM1,ITYearury MZm L-7098002-I0.RPT&c Q Mellon Trust-Sample Report PAGE: I NET ASSET SECTOR SUMMARY BASE: USD OCSF07511102 31-OCT-2002 FINAL Lf U1D OPER-P1MCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKETVALUE TOTAL GAINILOSS CASH&CASH EQUIVALENTS RECEIVABLES 999,818.89 999,818.89 2.26% 0.00 PAYABLES -262,339.29 ,262,339.29 -0.59% 0.00 TOTAL 737,479.60 737,479.60 1.67% 0.00 UNITED STATES COMMERCIAL PAPER-DISCOUNT 5,775,516.50 5,775,516.50 13.08% 0.00 U.S.GOVERNMENTS-LESS THN IYR 99,921.89 99,921.88 0.23% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS 4,542,699.61 4,542,699.61 10.29% 0.00 FNMA ISSUES-LESS THAN IYR 6,772,150.56 6,772,150.56 15.34% 0.00 FED HM LOAN BNK-LESS THAN IYR 4,022,587.36 4,022,587.36 9.11% 0.00 MUTUAL FUNDS 19,191.10 19,191.10 0.04% 0.00 TOTAL UNITED STATES 21,232,067.01 21,232,067.01 48.08% 0.00 TOTAL CASH&CASH EQUIVALENTS 21,%9,546.61 21,969,546.61 49.75% 0.00 FIXED INCOME SECURITIES UNITED STATES U.S.GOVERNMENTS 6,219,531.25 6,080,640.00 13,77% -138,891.25 U.S.AGENCIES 4,428,441.81 4,399,222.39 9,96% .29,219.42 OTHER GOVERNMENT OBLIGATIONS 99,921S8 99,999.00 0.23% 77.12 BANKING&FINANCE 8,385,333.79 8,279,473.28 18,75% -105,860.51 INDUSTRIAL 932,193.00 929,206.00 2.10% .3,987.00 UTILITY-ELECTRIC 2,050,320.00 2,021,260.00 4.58% -29,060.00 TOTAL UNITED STATES 22,115,741.73 21,808,900.67 49.39% -306,941.06 TOTAL FIXED INCOME SECURITIES 22,115,741.73 21,80000.67 49.39% -306,941.06 OTHER PORTFOLIO ASSETS PAYABLES,RECEIVABLES 381,644.10 381,644.10 0.96% 0.00 TOTAL 381,644.10 381,644.10 0.96% 0.00 07-Na 2002 10:25:27 Elecudw Workbench Q Mellon Trust-Sample Be port PAGE 2 BASE: USD NET ASSET SECTOR SUMMARY OCSFV7511102 31-OCT-2002 FINAL LIQUID OPER-PIMCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAIN/LOSS TOTAL OTHER PORTFOLIO ASSETS 381,644.10 381,644.10 0.86% 0.00 NET PORTFOLIO ASSETS 44A66932.44 44,159,99138 100.00% -306,941.06 07-Xa 2002 10:15:17 &wwi a Wwkkwh Q Mellon Trust-Sample Report PACE: • 1 BASE usD NET ASSET SECTOR SUMMARY OCSF07522202 31-OCT-2002 FINAL LONG TERMOPER-PIMCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAINRASS CASH&CASH EQUIVALENTS RECEIVABLES 3,127,612.50 3,127,612.50 0.98% 0.00 PAYABLES -37,199,687.50 -37,199,687.50 -1131% 0.00 TOTAL -34,072,075.00 -34,072.075.00 -10.72% 0.00 TOTAL SWITZERLAND 500,000.00 500.000.00 0.16% 0.00 UNITED STATES FED HM LOAN BNK-LESS THAN IYR 796,562.22 796,562.22 0.25% 0.00 OTHER U.S.GOVT OBLIGATIONS 2,898,359.72 2,888,359.72 0.91% 0.00 MUTUAL FUNDS 170,887.55 170,897.55 0.05% 0.00 TOTAL UNITED STATES 3,955,909.49 3,855,809.49 1.21% 0.00 TOTAL CASH&CASH EQUIVALENTS -29,716,265.51 -29,716,265.51 -935% 0.00 FIXED INCOME SECURITIES UNITED STATES U.S.GOVERNMENTS 134591,145.89 137,947,523.18 43.38% 3,256,377.29 INFLATION INDEXED SECURITIES 29,330,742.27 35,115,883.44 11.05% 5,785,141.17 U.S.AGENCIES 46,420,297.91 49,500,115.66 15.58% 3,079,817.75 GNMA SINGLE FAMILY POOLS 18,523,309.20 19,067,867.81 6.00% 544.558.61 GNMA MULTI FAMILY POOLS 7,290,253.56 7,467,199.10 2.35% 186,934.54 FHLMC POOLS 992,473.87 991,878.68 0.31% -595.19 FHLMC MULTICLASS 3,625,961 A3 3,709,420.77 1.17% 83.55934 FNMA POOLS 20,650,937.50 20,779,697.50 6.54% 128,750.00 COLLATERALIZED MORTGAGE OBLIGATI 3,359,664.21 3,637,704.19 1.14% 279,039.98 ABS:CAR LOAN 287,581.84 293,540.83 0.0941. 4,041.01 ABS:AIRPLANE RECEIVABLES 116M.000.00 651,584.00 0.21% -949,416.00 BANKING&FINANCE 30,690,594.50 30,760,010.00 9.68% 79,415.50 INDUSTRIAL 17,266,985.00 17,379,887.00 5.47% 112.902.00 UTILITY-ELECTRIC 11,627,710.00 12,068,370.00 3.80% 440,660.00 UTILITY-TELEPHONE 3,063,750.00 3,109,620.00 0.98% 45,970.00 TOTAL UNITED STATES 329,301,307.18 342,37Q281.16 107.74% 13,069,973.99 07-No 2002 10:27:43 Executire Wo kke ,h Q -- Mellon Trust-Sample Report PAGE 2 BASE (/SD NET ASSET SECTOR SUMMARY OCSF07522202 31-OCT-2002 FINAL LONG TERM OPER-P/MCO %OF UNREALIZED PORTFOLIO DISTRIBUTION COST MARKET VALUE TOTAL GAINR.OSS TOTAL FIXED INCOME SECURITIES 329,301,307.18 362,370,281.16 107.74% 13,04973.98 OTHER PORTFOLIO ASSETS PAYABLES/RECEIVABLES 5,128,221.76 5,128,221.76 1.61% 0.00 TOTAL 5,128,221.76 5,128,221.76 1.61% 0.00 TOTAL OTHER PORTFOLIO ASSETS 5,128,221.76 M28,221.76 1.61% 0.00 NET PORTFOLIO ASSETS 304,713,263.43 317,792,237.41 100.00% 13,068,973.98 07-Now2002 10:27:43 Execvlhr wwkbemb YLDANAL YIELD ANALYRID PADS 1 Mgn?511302 2002/10/31 REN DATE , 11/07/02 DISTRICTI LIQUID O SRATIM RUM TZAR , 11.17.09 PAR VALUE ITN AT CORREET MOODY MARRT TOTAL COST/ I TYPE SECURITY ID SECURITY DROCRIPTION MOR YIRW S-P PRICE MASMIT VALUE 9 TDTAI. ----------------- -----_---------_---------- ------- ------- -_--_ -------- ------------ ---------- CABS 6 CASE EQUIVALENTS 100,060.00 BTUDRNT LN ROOM AMR STN .000 1.464 P-1 99.922 99,921.89 .47 06387MS VAR AT 83/20/2003 W 09/29/02 A-11 99,921.99 .23 19,191.20 OPEYPOS TREASURY CASE WNT .ODD 1.517 AAR 100.000 19,192.10 .09 906003247 AAA 19,191.10 .04 1,736,000.00 FEDERAL BONN IS SR CONS DISC 1.664 .000 P-1 99.636 1,729,676.14 9.14 313384AQ2 HAT O1/13/2003 A-14 1,729,676.14 4.02 100,000.00 FEDBML WIR w RR CORE DISC 1.606 .000 P-1 99.664 99,664.00 .46 313384AR2 MAT 01/09/2003 A-14 99,664.00 .23 5,900,000.00 MURAL MAIL N1O "ON DISCOUNT 1.697 .000 1-1 $9.577 5,775,495.00 27.20 313589U43 MAT 12/24/2002 A-lh 3,775,495.00 13.42 2,200,000.00 PBDSRAL MMl IS RR CONS DISC 1.705 .000 P-1 99.493 2,193,247.22 10.32 313385Q41 MAT 11/22/2002 A-lF 2,193,247.22 5.20 I,5M,000.00 BECIDH DICKINSON DIM 1.707 .000 P-1 MORO 1,493,037.50 7.03 07560SM66 01/06/2003 1,493,837.50 3.47 1,000,000.00 FEDERAL RAIL IRO "aw D38C0DNT 2.726 .000 P-1 99.666 996,655.56 4.69 313589H41 HAT 11/06/2002 A-13 996,655.56 2.32 1,000,000.00 OOLOMAN /ACES W DIM 1.747 .000 P-1 19.623 1,793,214.00 9.44 36142=0 I1/22/2002 1,793,214.00 4.17 1,500,000.00 ROSSI CAR RA CR W DISC 1.751 .000 11.311 1,410,965.00 7.02 02501SNP7 01/22/2003 1,490,045.00 3.46 1,000,000.00 NATIONAL MIUL DISC 1.804 .000 F-1 91.760 997,600.00 4.69 63743DLD1 11/13/2002 997,608.00 2.32 4,560,000.00 F80ERAL WI® IN N1p CORP DIM 2.109 .000 P-1 19.621 4,542,499.61 21.39 313317605 HAT 12/12/3002 A-%+ 4,542,691.61 10.55 -------- ------- ------------`--- --------- CARS 6 CARD EQUIVAL6BTS 1.610 .010 21,232,067.01 109.00 21,232,067.01 49.13 4LWNIS IIRI,D ANALYSIS PADS 2 0 M7511102 2002/10/31 RON DATE f 11/07/02 DISIRIC21 LIODID OPERATING RON TINE 11.17.09 PAR VALUE ITN AT CONJURES! MOODY MRIET TOTAL C0ST/ 4 TYPE SR=MW ID SECURITY DESCRIPTION BOOR YIELD D-P PRICE SWEET VALUE 4 TOTAL FIRD 3RCONE BECURITIRS 11500,000.00 A56UCIATEB CORD NORTR OR HT .000 2.000 .1 99.995 1,502,520.00 6.82 046003"1 PLTG AT 05/O8/2003 DD 05/08/00 AA- 1,499,925.00 3.48 225,000.00 FEDe SAM NOR AWN NTH .000 1.712 AAA 100.046 124,96D.94 .53 3136POR6 VAR M 02/21/2003 DD O0/21101 AM 125,057.50 .29 100,000.00 STUDENT M MONITION ASSN STN .000 1.463 AAA 11.999 99,921.88 .45 06307MSD VAR RT O1/16/2002 ON 07/16/02 AAA 99,999.00 .23 1501000.00 PWIRAL PARE! CA BRB CONE NTN 1.664 6.300 AAA 103.962 155,796.00 .31 31331NN59 1.5504 00/19/2D03 DD O0/19/96 AAA 155,943.00 .16 100,000.00 FEDERAL EOID; M EE CONE BD8 1.664 5.729 AAA 103.430 103,311.00 .47 313IMSS2 5.9254 09/14/2003 DD 08/14/98 AAA 303,430.00 .24 1,500,000.00 FEDERAL OWR M BR CONE SON 2.714 1.363 AAA 100.104 11519,035.00 6.89 3133MM 6.305% 11/15/2002 DD 11/O9/00 AAA 1,502,820.00 3.49 1,000,000.00 IdWM ETANLET DO ME OW00340 1.)5) 6.949 AA3 104.646 2,045,350.00 4.17 G174SB0%4 9.1254 O9/15/2003 DO 09/10/00 AA- 1.040,460.00 2.42 466,000.00 RDEAAI. NAIL NTS AEON DEW 1.910 4.952 AAR 200.969 471,764.42 2.15 313S9HERG 5.0001 02/14/2003 DD 02/23/01 AAA 470,515.54 1.09 11000,000.00 FEDERAL BONE w NO CONE WE 1.851 4.944 AAA 101.125 1.013,250.00 4.63 3133HOGRI 5.000% 02/20/2003 DD 02/28/01 AM 11011,250.00 2.35 200,000.00 FEDERAL HATL NTG "ON ME 1.913 6.52E AAA 102.831 102,765.00 .47 31364CDD3 6.I10\ 05/21/2003 DD OS/21/96 AAA 102,831.00 .24 540,000.00 NBLid PROW 4 CD NT 1.949 3.012 •AI 102.682 560,601.00 2.54 949740CU5 7.200% 05/01/2003 OD 04/26/00 A4 554,482.80 1.29 600,000.00 NEAR STEARNS CO ONBUB 2.048 6.116 A2 101.370 615,904.00 2.70 023902036 1.200% 03/30/2003 DO 03/30/9B A 609,220.00 1.41 11000,000.00 PBILADOLPOIA ELM CO 1ST NTN 2.200 6.314 A2 102.131 1,027,680.00 4.68 717537MS 6.500% 05/01/2003 DD OS/01/93 A 2,021,310.00 2.37 400,000.00 BOATEENE BANCSWass IRA NUB 2.260 6.623 AA3 101.956 411,460.00 1.96 096650AE6 6.7504 03/15/2003 DO 03/15/93 A 407,424.00 .95 YLDNUL YI= AMMYBIS PA08 3 OC8Po1511102 2002/20/31 ROB MTB t 11/07/02 DISTRICT, LIam OPNMTIBD RON TIMB 1 12.17.09 PM 9AIA01 ITN AT CM MM MgODY MMWT TO COST/ 9 TYPB MCMITY ID UCMITI MSCBIPTIOM BOOA YIMLD 9-9 PRICB MAPRT TALDR 6 10TA4 510,000.00 PBUBML mm I8 BM CONE BDB 2.200 5.08E AAA 100.719 622,102.40 2.81 3133M M3 5.1258 01/13/2003 DD 01/12/01 AAA 614,305.90 1.63 195,000.00 F8D8RAL mm LM M mm ms 2.230 S.616 AM 100.213 199,594.20 .90 3133MM56 S.6600 01/13/2003 DD 01/13/90 AAA 196,585.35 .66 100,000.00 mmuz. mm Is M COMB BDB 2.296 5.S58 AAA 100.940 102,392.00 .66 3133M23D1 5.6201 02/23/2003 DD 02/23/98 AAA 100,940.00 .23 900,000.00 TOBCO COAP L IST 16O M 2.360 3.999 M 103.134 932,193.00 6.23 091490"1 8.2S06 05/15/2003 DD 05/15/93 A- 920,206.00 2.16 500,000.60 MBMIIS LYNCR A CO BOMD6 2.351 5.939 M3 I01.031 506,160.00 2.31 5901MM4 6.000% 02/12/2003 DD 02/12/98 Al 505,155.00 1.13 324,000.00 BAMBAI@ M CORD BOB BT 2.372 1.111 M3 102.730 336,312.00 1.52 066050527 6.875% 06/01/2003 DO 06/01/93 A 332,910.00 .71 1,000,000.00 8O MWLD FIN COAP SR MTB 2.500 1.656 AT 99.591 1,028,630.00 6.56 661812806 7.6231 01/IS/2003 W 01/14/93 A- 995,910.0D 2.31 6,000,000.00 D 8 TRRABORI Ib1R8 2.522 6.161 AAA 101.309 6,219,531.25 20.08 912021S1B 06.250% 02/15/2003 DD 02/15/13 AAA 6,000,640.00 16.13 505,000.00 mw OMD MILLI M BDB MTB 2.532 6.689 AM 102.103 519,058.30 2.36 066236M2 6.6250 04/25/2003 DD 04/15/13 A 515,620.25 1.20 250,000.00 WBHLDeOB LUFAIM 9TR 000318 2.616 3.025 M3 100.640 257,195.00 1.15 25766CB06 3.030% 12/19/2002 DD 12/13/99 M- 232,600.00 .59 600,000.06 BEAR BTBMBB COB IBC 2.62E 6.623 A2 101.912 620t292.00 2.80 073902MI 6.3509 04/15/2003 A 611,412.00 1.62 293,000.00 PITNBY FOM8 CR WM RT 2.323 9.639 M3 101.891 203,794.49 .90 726613MO 0.800% 02/25/2003 DD 02/12/91 M 196,630.33 .66 15,000.00 FBDSRM wo IA BRB COPE SD 2.351 5.820 AAA 103.094 15,630.85 .07 323M6006 6.0001 07/14/2003 DD 07/14/96 AAA 15,464.10 .06 2,000,000.00 FOBLIC m CO OF CO 3.066 6.000 MA1 99.995 2,022,610.00 6.SB 366660W1 6.000% D6/IS/2003 DD 04/20/99 BB81 999,950.00 2.32 150,000.00 mm III. LIME 3.107 6.339 AM 101.416 155,263.00 .69 59018MP9 6.833% 03/01/2003 A+ 152,124.00 .35 YLDANAL YIELD ARALYSIN PAGE , 4 O SFO7511102 2002/10/31 EUR DATE : 11/01/02 DISTRICTS LIQUID OPERATING RUN TM : 11.17.09 PAR VALUE YTM AT CORRRRT NODDY MARKET 10TAL FAST/ 8 ME SECDRITY ID EECORIT2 DESCRIPTION E00E YIELD E-P PRICE MARRT VALUE 9 TOTAL 200,000.00 DER W=R DISCOVER 6 DO 3.144 6.763 AA3 101.359 206,066.00 .92 24240VWS 6.9751 03/01/2003 Al 202,716.00 .47 400,000.00 NATURAL RORAL DITIS COOP PIN 3.240 7.267 Al 101.206 413,064.00 1.25 637432CR9 7.375% 02/10/2003 DD 02/10/00 A. 404,224.00 .94 T<)TA7. FIRD INCOR eECORITIEB 1.833 5.613 21,809, 0.17 100.00 21,80B,800.6) 50.65 ----------------- --------- TOTAL 1.164 4.217 43,347,808.74 100.00 43,040,867.6E 100.00 YLDANAL YIELD ANALYSIS PAGE 5 O SF07522202 2002/10/31 RUN DATE 11/07/02 DISTRICT: LONG-TERN GPEMTING RUN TIME 12.17.09 PAR VALUE YTN AT CEMENT MOODY M OORE TOTAL C08T/ 0 TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD B-P PRICE EMERY VALUE 9 TOTAI. _________________ _____________________________ _______ _______ ______ ________ ____________ _______-_ CASS 6 CASE EQUIVALENTS 000,000.00 FEDERAL ODER LN BE CONS DISC .000 .000 P-1 99.570 796,562.22 18.28 313384MO HAT 01/17/2003 A-1f 796,562.22 .23 2,900,000.00 FEDERAL RAIL ME OEM DISCOUNT .000 .000 P-1 99.599 2,090,359.72 66.31 313509879 MAT 12/11/2002 A-14 2,989,359.72 .83 500,000.00 CREDIT SUISSE M REPO .000 1.970 100.000 500,000.00 11.47 1939OF256 02.870% 11/01/2002 DD 10/31/02 300,000.00 .14 170,987.55 DMYFGB TREASURY CASH MGM .000 1.517 AAA 100.000 170,087.55 3.92 916095247 AM 170,897.55 .05 ________ _______ ________________ _________ TOTAL CASH 6 CASH EQUIVALENTS .000 .164 4e355.809.49 100.00 4,355,009.49 1.25 FIXED INTONE SECURITIES 31000e000.00 COMMIT TO PM rum BE, MTO .00O 5.345 AAA 102.906 3,079,607.50 .90 O1P0524C3 5.5001 12/01/2017 DO 12/02/02 AM 3,007,107.50 .89 15,000,000.00 COHNIT TX) PER FORK OP HIG .000 5.755 AAA 104.250 15,525,937.50 4.51 01P0604BO 6.000% 11/01/2017 DO 11/01/02 AAA 15.637,500.00 4.51 5,000,000.00 COMMIT TO PUR PNHA SF M'R7 .000 5.034 AM 102.844 5,125,000.00 1.50 OIPOS0686 6.000% 11/01/2032 DD 11/01/02 AAA 5,142,187.50 1.48 10,000,000.00 COMIT 1G PER GONE OP MTG .000 6.242 AAA 104.125 1O,381,875.00 3.04 O1N0626113 6.500% 11/15/2032 DO 11/01/02 ARE 10,412,500.00 3.00 900,000.00 BEAR STEAMS KIN 1 TR 00459 .000 2.045 A2 100.140 899,406.00 .26 07392SM4 MW RE 12/01/2003 DD 02/17/01 A '01,260.00 .26 41500,000.00 DAINLES, CMYBMR HA CORP HT .000 2.595 A3 100.031 4,491,345.00 1.31 233835AM9 PIRG RT 12/16/2002 DD 12/15/00 M 4,501,395.00 1.30 447,723.79 DISTRIBUTION VIM 99-1 M A4 .000 5.742 101.619 457,090.02 .13 25475HAD6 5.040% 10/17/2021 OD 03/18/99 455,330.62 .13 297,371.43 F=W RROUP IG4-0353 .000 7.326 AAA 102.374 304,898.64 .08 3128DSMA2 7.500% 10/01/2004 DD 03/01/99 AAA 304,431.03 .09 YLDARAL YIBLD AMLYBIB PAGE 6 OC8Y02522202 2002/20/31 0.W DATE 11/07/02 DISMICTC LO80-TBRA OPERATING ROR TIIM t 11.17.09 PAR VALUE YEN AT CURRENT IODOY MARMT TOTAL COST/ 4 TYPE KZCMITY ID MCGRITY McCRL lw ROOK YIELD 8-P PRICE MEESE VA WE A 2OTA9. I1500,000.00 MEISEL BOIM I9 BE CORE SEE .000 6.412 AM 111.031 ],99),625.00 2.43 3133NAM2 7.1254 02/15/2005 DD 02/OB/00 AAA 8,327,325.00 2.40 113,349.95 MHC GROVE I28-6064 .000 6.158 AM 103.022 114,8Y9.01 .03 31348SM3 1.3044 01/01/2020 DD 12/01/97 AAA 121,309.35 .03 11,150,000.00 PSD®ML Mm 191E ABBE MM .060 4.839 AM 108.500 11,521,271.30 3.59 3135982E1 5.2504 66/15/2006 OD 06/22/01 AAA 12,314,750.00 3.55 3,280,163.76 GEM POOL IOS69358 .000 6.229 AM 104.353 3,357,047.21 .99 3620000E3 6.500% 04/15/2032 DD 04/01/02 AM 3,422,959.43 .99 1851095.58 GEM I3 POOL /6003109 .000 7.101 AM 105.615 196,044.47 .05 36202DR23 7.500% 07/20/2031 DD 07/01/01 AM 195,480.83 .06 940,309.46 GOM 2I POOL 00003152 .000 2.101 AAA 105.615 990,935.40 .29 365020006 2.500% 10/20/2031 DD 10/01/O1 AAA 993,193.01 .29 507.221.B8 GRIM II POOL 00000395 .000 4.395 AAA 102.391 502,625.19 .15 36225CER4 VA0. RT 04/20/2030 DD 04/01/00 AAA 519,349.56 .15 4,477,725.44 M M II POOL 1080488E .000 4.393 AM 102.350 4,432,248.54 1.33 36225M2B 6.5005 05/20/2030 DD OS/01/00 AM 4,582,951.11 1.32 3,000,000.00 GTE NOR1E IRC ME 88R A .000 5.18E M3 103.654 3,063,750.00 .90 362337AD9 6.0004 01/1512004 DD 01/15/94 Al 3,101,620.00 .10 4,000,000.00 GENERAL MEE =a I92R 160615 .000 2.054 A2 99.156 3,990,440.00 1.14 37042MBO VAR RT 08/04/2003 M 08/03/01 BM 3,926,240.00 1.13 4,000,000.00 NABISCO INC ETS .000 6.071 A2 100.883 4,081,440.00 1.19 629527CM WM RT 02/01/2033 DD 02/22/90 A 4,035,320.00 1.16 - 5,000,000.00 VBILIP IO88ffi cos IRC RT8 .000 7.055 A2 106.310 5,263,000.00 1.55 218154CM 7.5091 04/01/2004 DD 04/01/97 A- 5,315,500.00 1.53 279,799.91 NMKIM AUTO M 99-3 M A_4 .000 6.345 AM 101.337 207,501.64 .00 24046MV6 6.4304 03/08/2004 DD 06/21/99 283,540.03 .08 3,B38,794.33 8M = DEW PERIN 2001-20C 1 .000 5.265 AAA 109.965 3,936,794.33 1.23 03162=70 6.340% 03/01/2021 AAA 4,121,330.19 1.22 2,902,566.19 BRA GTE PARS CTPS SBIC-PB 01 .000 6.056 AM 109.640 2,902,566.19 .92 0316419M 6.6400 02/20/2021 DD OS/21/01 OR 3,102,373.57 .92 YLDAMl, YIN= ANALY6i. PkM 1 MBF07522202 2002/10/31 RUN INTB 1 11/07/02 DISTRICTI LONG-TERN OPERATING RM TIMB 1 11.17.09 PAR VALUE YTN AT CURRENT HOODY MERRY TOTAL COST/ 9 TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD 8-P PRICE MARKET VAIXB 9 1DTAL 1,600,000.00 UNITED AIRLS PABBTBRU 01-1 C .000 16.774 B3 4D.120 1,600,000.00 .19 909313BC2 4.8311 09/01/2000 DD 09/22/01 A- 651,584.00 .19 20,000,000.00 U 8 ENSURE MY SUITS .000 5.444 AAA 114.B13 22,620,312.50 6.70 9229272JO 06.2508 02/15/2007 DD 02/15/97 AM 22,962,6DO.00 6.62 6,279,747.00 US TREASURY INPIATION INDEX NT .000 3.513 AAA 110.313 6,292,934.71 2.02 9128274YS 3.875% 01/15/2009 DO O1/15/99 AAA 9,927,377.31 2.00 74,500,000.00 U S MEMORY NOTES .000 6.034 AAA 111.875 80,879,062.50 24.34 1128276M 06.7506 OS/15/2005 DD 05/15/00 ARA 82,346,075.00 24.04 24,700,000.00 U 8 TREABURY NOTES .000 5.199 AAA 120.594 27,252,176.56 7.97 9128276N7 OS.7500 11/15/2005 DD 11/15/00 AAA 27,316,718.00 7.99 3,500,000.00 VIRNINIA 8L9C 6 PNR 01 MR A .000 5.317 A3 106.546 3,487,690.00 1.06 127804MO 5.750% 03/31/2006 DD 03/27/01 0B09 3,729,110.00 1.08 26,221,430.00 US TREASURY INPLATIOR INDEX NT 3.917 3.140 AAA 107.469 23,037,907.56 8.23 9120222M3 3.375E 01/15/2007 DD O1/15/97 AAA 20,188,506.13 0.13 1,400,000.00 BEARS. ROMUCK ACCEP CORD NEW 5.261 6.519 BARI 100.328 1,439,120.00 .41 8124ODGN6 6.540E 02/20/2003 DD 02/20/97 A- 1,404,312.00 .41 3,950,000.00 GMAC XTS 5.752 1.894 A2 98.052 3,918,760.50 1.13 3704250V5 VAR RT 09/18/2003 M 08/17/18 BBB 3,833,054.00 1.12 2,000,000.00 BASxRRB IN RY CUSP MORAL NT 5.001 1.844 Al 19.107 1,992,200.00 AS 066365M4 FLTO RT 05/11/2003 DD 05/12/10 A 1,998,140.00 .58 15,500,000.00 FEDERAL NAIL KING ABBE MOO 5.967 6.406 AAA 111.219 14,154,410.00 5.03 31359MPE1 7.1251 02/15/2005 M 02/14/00 AAA 17,238,945.00 4.97 3,000,000.00 EALTIEORE NAS 6 BLBC CO 6.011 6.719 A2 100.460 3,039,250.00 .98 059165M7 6.350% 12/15/2002 DD 12/20/00 ME. 3,014,040.00 .87 3,800,000.00 GENERAL MIEN AIDED ITS. 90562 1.203 1.122 A2 19.359 3,793,9SO.00 1.10 37042NLRO VAR RT 02/14/2003 M 02/14/00 BBB 3,735,642.00 1.09 1,623,244.00 FWAC MULTICLASS HTS SEe 33 A 6.316 4.553 AAA 100.967 1,624,173.43 .4I 3133=95 VAR RT 09/15/2032 DD 12/01/97 AAA 1,638,940.37 .47 1,255,541.37 GMA GTU RBMIC TR 2000-9 PN 6.320 2.295 AAA 200.451 1,25S,S46.37 .36 383764N29 VAR RT 02/16/2030 AAA 1,261,200.88 .36 YLOAML YIEW ANALYBIB PAGE B OCBF07522202 2002/10/31 RUN MTR 1 11/O7/02 DISTRICTI IORG-TBM OPERATING SON TIM t 11.27.09 PAR. VA2AE YTH AT CHORE" MOODY HAMST TOTAL COST/ E TYPE SECURITY 30 BCCDAITY OBBCRSPTION BOOR YIELD S-P PRICE MOOT VAlAE 9 TOTAL ---------------- --------------------------__ _______ _______ _______ _______ ____________ __________ 2,000,000.00 BRM STEARNS COB 1HC 6.330 6.623 M 101.912 2,031,960.00 .59 073902MI 6.350E 04/15/2003 A 2,038,240.00 .59 3,000,000.00 FORD NTR CR CO GLOBAL I.AHDMRR 6.350 2.039 A3 99.562 3,000,000.00 .86 345397M 0M RT 03/17/2003 DO 03/16/00 BM 2,956,860.00 .85 2,000,000.00 FORD MR CA CO GLOBAL HIS 6.351 1.999 A3 90.890 1,992,500.00 .57 345390R" MTO RT 02/13/2003 DO 02/13/99 BW 1,971r800.00 .57 10,615.49 OHM PODL 40500917 6.389 5.782 AAA 103.036 17,670.17 .00 36210SPA0 6.000E 04/15/2029 DO 04/01/99 AAA 19,318.41 .01 53.284.68 OHM POOL 40506636 6.399 5.982 AM 103.036 54,375.69 .01 36210YY90 6.000% 04/15/2029 OD 04/01/99 AAA 51,447.75 .02 682,193.01 OHM POOL 40503389 6.309 5.792 AM 103.716 647,540.90 .20 36210W55 6.000E 03/15/2029 DO 03/01/99 AAA 707,942.24 .20 22,657.14 GHM POOL $0499153 6.389 5.002 AAA 103.136 21.506.58 .00 31210=5 6.000E 02/15/2029 DO 02/01/99 AM 23,512.67 .01 5,969.93 OHM PWL 00416204 1.390 5.762 AM 103.776 5,661.11 .00 362108351 6.000E O1/15/2029 OD 02/01/11 AM 6,195.35 .00 757,816.46 OHM POOL 90496462 6.390 5.782 AM 103.7I6 711,333.58 .22 362101Mi4 6.000E O1/15/2029 DO 01/01/99 AAA 786,431.61 .23 205,651.33 GHM FOOL #0491103 6.390 5.782 AAA 103.716 195,206.14 .06 36210MY4 6.000E O2/15/2029 DO O1/01/99 AAA 213,416.70 .06 10,072.02 OHM POOL 00406720 6.390 5.709 AAA 103.029 17.154.30 .00 36210AW6 6.000E 12/15/2028 DO 12/01/98 AAA 10.764.OG .01 38,391.29 GNM POOL /0497343 6.390 5.179 AM 103.829 36,441.73 .DI 36210W45 6.000E 12/15/2026 DD 22/01"0 AAR 39,861.28 .01 34,113.00 GNM POOL /0469609 6.391 5.719 AM 103.829 32,380.71 .01 36109EXR8 6.000E 11/15/2028 DO 12/O1/98 AM 35,419.11 .01 41,360.01 GNM POOL /0467279 6.391 5.139 AM 103.829 31,259.70 .01 36209CC03 6.000E 18/15/2028 DO 10/01/98 AAA 42,943.68 .DI 71,730.74 CAM POOL 40457814 6.391 S.O79 AM 103.829 68,080.16 .02 3620B9553 6.000E 10/15/2028 DO 10/01/98 AM 74,477.31 .02 YcoMAL VICLD MMYs3s FA48 1 9 WSP07522202 2002/10/32 RM DAIS 11/07/02 DISTRICT, LONG-TMN OPERATING ROB TIRE i 11.17.09 PM PALOB YTR AT CURRENT BOODY BARMT TDH1G C06T/ 0 TM1PZ MCURITY ID MCURITY USCRIPTION BOOB YIELD B-P PRICE MARKET VALOR 0 TOTA7. 678,846.86 ONMA POOL #0467296 9.391 5.779 AM 103.929 644,374.10 .20 36209=12 6.000E 10/IS/2028 DD 10/01/90 AM 704,039.92 .20 760,742.94 ROM POW. 10465555 6.392 5.779 AM 103.929 722,111.47 .23 36209AE48 6.000% 09/35/2020 DD 09/01/98 AAA 709,871.79 .23 32,066.40 GRMA POOL 60483452 6.392 3.779 MA 103.629 30,457.01 .00 36209MBV3 6.000E 09/15/2028 M 09/01/99 MA 33,314.99 .01 003,650.01 GRM PODL #0465546 6.392 5.779 AM 103.029 762,839.65 .24 36209MT3 6.000% 08/15/2020 DD 08/01/99 AAA 834,421.77 .24 736,324.35 WHR PODL ON68339 6.392 S.779 AAA 103.829 690,932.09 .22 36209DW 6.0000 09/15/2029 DD 09/01/98 AM 764,S10.21 .21 40,835.89 GMP POW. #0428057 1.393 5.779 AM k03.821 30,762.20 .01 36207PTM9 6.0001 05/15/2029 DD 05/01/99 AM 42,319.50 .01 24,009.72 GM POOL 00468330 6.393 5.779 MA 103.029 32,202.66 .01 36209MP4 6.000E 05/15/2020 DD 05/01/10 AAA 35,311.95 .01 2,000,000.00 PRIM MISICLAM Mr Tit A6 4,496 4.279 AAA 103.524 2,000,689.00 .60 3133MM2 6.500E 09/25/2019 AAA 2,070,480.00 .10 2,819,536.46 FIRM MOLTICLAM CIP BRE 16208 6.491 5.665 AM I05.919 2,657,396.52 .07 3133T17A4 6.000E 11/15/2023 DD 11/01/93 AM 2,990,069.68 .86 11000,000.00 ORION" SB B.DCB HIS 6.625 2.078 AA1 100.092 1,000,000.00 .29 79540REM VAR RT 04/29/2003 M 04/29/00 M- 11000,930.00 .29 563,066.92 PB MMP IGS-0476 6.62E 6.972 AM 100.403 572,695.42 .16 3128DDM5 7.000E 62/01/2003 DD 02/01/90 AM 566,139.30 .16 183,101.23 GPM II POOL 0000062M 6.705 5.113 AM 100.905 698,044.06 .20 36225CC20 7.375E 06/20/2027 M 06/01/17 AAA 707,043.93 .20 2,000,000.00 NAME 6 MIRMA9 COB INC SR RT 9.717 6.241 A2 106.154 1,192,290.00 .62 571748MB 6.6251 06/15/2004 DD 06/14/19 AA- 2,123,060.00 .62 3,000,000.00 FORD MTR CR CO W.OBM IANDBARK 6.739 6.850 A3 97.B11 21995,080.00 .95 2453978/3 6.700E 07/16/2004 DD 07/16/99 BBB 2,934,330.00 .95 2,500,000.00 COOWIRYNIRE Rom LRB IRC MT 6.866 6.490 A3 103.552 2,418,400.00 .77 22237UMB 6.0501 06/15/2004 DD 06/24/91 A 2,638,800.00 .76 YLDANAL YIN= ANALYSIS PAGE 1 10 WS"7522202 2002/10/31 NON DATE : 11/07/02 DISTRICTS IONO-TBNN OWRATINO RUN TINE 1 11.17.09 PAR VALUE YTN AT CORRENT MOODY MARKET TOTAL C08T/ t TYPE BLCORITI ID 88C=" DESCRIPTION NOW TIEW 6-P PRICE HAUNT VALUE t TOTAL _________________ _____________________________ _______ _______ _______ ________ _--------_ _____----- 453,839.17 ONMA II POOL 00080023 6.992 6.409 AAA 103.376 411,355.90 .13 36225=9 VAR RT 12/20/2026 DD 12/01/96 AAA 469,160.78 .14 2,100,000.00 PEDNRAL NAIL MTO AWN DRRB 7.213 5.705 AAA 116.125 2,030,113.00 .71 31359M S 6.625t 09/15/2009 DO 09/01/99 AAA 2,430,625.00 .70 2,000,000.00 I/1B8 ISLAND LTO CO DW 7.512 7.974 SAM 104.144 2,152,250.00 .60 542672CV 0.260% 03/15/2023 DD 03/28/93 A- 2,082,800.00 .60 900,461.56 ORKYSTOAE BVCMO COMP PRA 695-7 7.564 7.193 AAA IC3.297 708,775.19 .24 398306AE4 7.430t 06/01/2003 DD 02/29/00 AAA 026,059.76 .24 2,000,000.00 PORD AMR CA CO NT 7.582 7.093 A3 95.169 965,170.00 .27 3453970V9 6.7500 05/15/2005 OD 05/24/93 BBB 051,690.00 .27 956,220.74 NNP/BUMTOON PAIDM 6000-11150 1.684 6.196 AAA 107.208 935,452.83 .29 302990=3 7.5001 12/01/2030 DD 10/21/99 AAR 1,025,144.04 .30 3,000,000.00 PACIPICORP SECD MTM #TR 00115 7.709 6.754 Al 100.070 2,950,530.00 .94 19512=5 7.3000 10/22/2004 D0 10/22/92 A 3,242,340.00 .94 1,600,000.00 ALL8TAT8 CORD RK NT 7.967 ?.WI Al 112.489 1,594,032.00 .52 02000MS 7.0751 05/01/2005 DD 05/01/00 Al 1,787,024.00 .52 _______ _______ ________________ _________ TOTAL PIAED INCOME BNCDRITINB 1.049 5.31E 329,301,307.10 100.00 342,370,291.16 18.76 ________ _______ _________________ --------- TOTAL 1.040 5.314 333,657,116.47 100.00 346,726,090.69 100.00 Q Mellon Trust- Sam le Report PAGE 1 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS PURCHASES CASH&CASH EQUIVALENTS LIQUID OPER-PIMCO 2,621.95 DREYFUS TREASURY CASH MGMT 01-Oct-2002 -2,621.95 996085247 01-Oct-2002 2,621.95 B 0.00 LIQUID OPER-PIMCO 2.621.95 DREYFUS TREASURY CASH MGMT 01-Oct-2002 -2,62L95 996085247 01-Oct-2002 0.00 FC 01-Oct-2002 0.00 LONG TERM OPER-PIMCO 201,344.01 DREYFUS TREASURY CASH MGMT 01-Oc1-2002 -201,344.01 996095247 01-0ct-2002 201,344.01 B 0.00 LONG TERM OPER-PIMCO 201,344.01 DREYFUS TREASURY CASH MGMT 01-Oct-2002 -201,344.01 996085247 01-Oct-2002 0.00 FC 01-Oct-2002 0.00 LONG TERM OPER-PIMCO 6,678.33 DREYFUS TREASURY CASH MGMT 02-Oct-2002 A678.33 996085247 02-Oct-2002 6,678.33 B 0.00 LONG TERM OPER-PIMCO 6,678.33 DREYFUS TREASURY CASH MGMT 02-Oct-2002 -6,678.33 9%085247 02-Oct-2002 0.00 FC 02Act-2002 0.00 07-Nov-1001 /0:29:18 Executive Workbench Q Mellou Trust-Sam le Report PAGE: 1 PORTFOLIO DETAIL OCSG000/0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHAREWPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LIQUID OPER-PIMCO 1,500,000.00 PITNEY BOWES INC DISC 04-Oct-2002 -1,498,996.67 72447TK74 10/18/2002 04-Oct-2002 1,498,996.67 B BANC OF AMERICA SEC LLC,SAN 0.00 LIQUID OPER-PIMCO 1,500,000.00 PITNEY BOWES INC DISC 04-Oct-2002 -1,498,996.67 72447TKI4 10/18/2002 04-Oct-2002 0.00 FC BANC OF AMERICA SEC LLC,SAN 04-Oct2002 0.00 LIQUID OPER-PIMCO 800,000.00 KRAFT FOODS INC DISC 04-Ott-2002 -799,461.78 5007MIKJI 10/182002 04-Oct-2002 799,461.78 B CREDIT SUISSE FIRST BOSTON C 0.00 LIQUID OPER-PIMCO 800,000.00 KRAFT FOODS INC DISC 04-Oct-2002 -799,461.78 5007M IKJI 10/18/2002 O4-0ct-2002 0.00 FC CREDIT SUISSE FIRST BOSTON C 04-Oct-2002 0.00 LONG TERM OPER-PIMCO 32,828.99 DREYFUS TREASURY CASH MGMT 08-Oct-2002 -32,828.99 9%085247 08-Oct-2002 32,928.99 B 0.00 LONG TERM OPER-PIMCO 32,828.99 DREYFUS TREASURY CASH MGMT 08-Oct-2002 -32,828.99 996085247 08-Oct-2002 0.00 FC 08-Oct-2002 0.00 LIQUID OPER-PIMCO 1,660,000.00 FEDERAL HOME LN MTG CORP DIS 08-Oct-2002 -1,655,024.61 313397S85 MAT 12/122002 08-Oct-2002 1,655,024.61 B GOLDMAN SACHS&CO,NY 0.00 07-Nov-1001 10.29:28 Executive Workbench Q Mellon Trust-Sample Report PAGE: 3 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LIQUID OPER-PIMCO 1,660,000.00 FEDERAL HOME LN MTG CORP DIS 08-Oct-2002 -1,655,024.61 313397S85 MAT 12/12/2002 08-Oct-2002 0.00 FC GOLDMAN SACHS&CO,NY 08-Oct-2002 0.00 LIQUID OPER-PIMCO 1,500,000.00 BECTON DICKINSON DISC 10.Oct-2002 -1,493,837.50 07589SN66 01/06/2003 11-Oct-2002 1,493,837.50 B GOLDMAN SACHS&CO,NY 0.00 LIQUID OPER-PIMCO 1,500,000.00 BECTON DICKINSON DISC 10-Oct-2002 -1,493,837.50 07588SN66 01/06/2003 11-Oct-2002 0.00 FC GOLDMAN SACHS&CO,NY 11-Oct-2002 0.00 LIQUID OPER-PIMCO 5,657.92 DREYFUS TREASURY CASH MGMT 11-0ct-2002 -5,65T92 996085247 11-0ct-2002 5,657.92 B 0.00 LIQUID OPER-PIMCO 5,657.92 DREYFUS TREASURY CASH MGMT II-Oct-2002 -5,657.92 996085247 II-Oct-2002 0.00 FC II-Oct-2002 0.00 LIQUID OPER-PIMCO 66,978.13 DREYFUS TREASURY CASH MGMT 15-Oct-2002 -66,978.13 996085247 15-Oct-2002 66,978.13 B 0.00 LIQUID OPER-PIMCO 66,978.13 DREYFUS TREASURY CASH MGMT 15-Oct-2002 -66,978.13 996085247 15.Oct-2002 0.00 FC 15-Oct-2002 0.00 07-No 2002 10.29:28 Executive Wwkbench Q Mellon Trust- Sam le Report PAGE.' 4 PORTFOLIO DETAIL OCS000010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 454,923.57 DREYFUS TREASURY CASH MGMT 15-Oct-2002 454,923.57 996085247 15-Oct-2002 454,923.57 B 0.00 LONG TERM OPER-PIMCO 454,923.57 DREYFUS TREASURY CASH MGMT 15-Oct-2002 454,923.57 996085247 15-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 15394.85 BSDT-LATE MONEY DEPOSIT ACCT 15-Oct-2002 -15,394.85 996087094 15-Oct-2002 15,394.85 B 0.00 LONG TERM OPER-PIMCO 63,515.13 DREYFUS TREASURY CASH MGMT 16-Oct-2002 -63.515.13 996085247 16-Oct-2002 63,515.13 B 0.00 LONG TERM OPER-PIMCO 63,515.13 DREYFUS TREASURY CASH MGMT 16-Oc1-2002 -63,515.13 996085247 16-Oct-2002 0.00 FC 16-Oct-2002 0.00 LONG TERM OPER-PIMCO 32,831.00 BSDT-LATE MONEY DEPOSIT ACCT 16-Oct-2002 -32,831.00 996087094 16-Oct-2002 32,831.00 B 0.00 LONG TERM OPER-PIMCO 32,831.00 DREYFUS TREASURY CASH MGMT 17.Oc62002 -32,831.00 996085247 17.Oct-2002 32,831.00 B 0.00 07-Now2001 10.29:28 ExoculAe Workbench Q Mellon Trust-Sample Report PAGE. 5 PORTFOLIO DETAIL OCS000010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOUDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LONG TERM OPER-PIMCO 32,831.00 DREYFUS TREASURY CASH MGMT 17.Oct-2002 -32,831.00 996085247 17-Oct-2002 0.00 FC 17-Oct-2002 0.00 LONGTERM OPER-PIMCO 800,000.00 FEDERAL HOME LN BK CONS DISC 17-Oc1-2002 -7%,562.22 313384AS8 MAT01/17/2003 18-Oct-2002 796,562.22 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 800,000.00 FEDERAL HOME LN BK CONS DISC 17-Oc1-2002 -796,562.22 313394ASS MAT01/172003 18-Oct-2002 0.00 FC MERRILL LYNCH PIERCE FENNER 18-Oct-2002 0.00 LONG TERM OPER-PIMCO 373,424.52 DREYFUS TREASURY CASH MGMT 21-Oct-2002 -373,424.52 9%085247 21-Oct-2002 373,424.52 B 0.00 TANG TERM OPER-PIMCO 373,424.52 DREYFUS TREASURY CASH MGMT 21-Oa-2002 -373,424.52 996085247 21-Oa-2002 0.00 FC 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 115,953.19 DREYFUS TREASURY CASH MGMT 23-Oct-2002 -115,853.19 996085247 23-Oct-2002 115,853.19 B 0.00 LONG TERM OPER-PIMCO 115,853.19 DREYFUS TREASURY CASH MGMT 23.Oct-2002 -115.853.19 9%085247 23.Oct-2002 0.00 FC 23-Oct-2002 0.00 07-Now20022 10,29:28 F. c.lf a Wa Ihemh Q — Mellon Trust- Sample Report PAGE- 6 PORTFOLIO DETAIL OCSG00010060 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATFJ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 10,833.33 DREYFUS TREASURY CASH MGMT 25-Od-2002 -10,933.33 996095247 25.Oct-2002 10,933.33 B 0.00 LONG TERM OPER-PIMCO 10,833.33 DREYFUS TREASURY CASH MGMT 25-Oct-2002 -10,833.33 996095247 25-Oct-2002 0.00 FC 25-Oct-2002 0.00 LIQUID OPER-PIMCO 167,412.64 DREYFUS TREASURY CASH MGMT 28-Oct-2002 -167,412.64 996095247 28-00-2002 167,412.64 B 0.00 LIQUID OPER-PIMCO 167,412.64 DREYFUS TREASURY CASH MOMT 28-Od-2002 -167,412.64 996095247 28-Oct-2002 0.00 FC 28-Oct-2002 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL HOME IN BK CONS DISC 2"ct-2002 -99,664.00 313384AH2 MAT 01/082003 28.Oct-2002 99,664.00 B MERRILL LYNCH PIERCE FEWER 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL HOME IN BK CONS DISC 28.Oct-2002 -99,664.DD 313384AH2 MAT 01/082003 28-0062002 0.00 FC MERRILL LYNCH PIERCE FENNER 28-Oct-2002 0.00 LIQUID OPER-PIMCO 1,736,000.00 FEDERAL HOME LN BK CONS DISC 28-On-2002 -1,729,676.14 313384AQ2 MAT OI/152003 28.Oct-2002 1,729,676.14 B BANC OF AMERICA SEC LLC,SAN 0.00 07-Afm-1001 10.29:28 Executive Workbench Q Mellou Trust-Sample Report PAGE 7 PORTFOLIO DETAIL OCS000010000 01-OCT-2002 -31-OCT-2002 OCSD-CONS0IJDA7ED SHARESIPAR TRADE DATEI AMOUNT/ SECURITY m TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LIQUID OPER-PBNCO 1,736,000.00 FEDERAL HOME IN BK CONS DISC 28.Oct-2002 -1,729,676.14 313384AQ2 MAT 01/15/2003 28-Oc1-2002 0.00 FC BANC OF AMERICA SEC LLC,SAN 28-0ct-2002 0.00 LONG TERM OPER-PIMCO 500,000.00 LEHMAN BROTHERS REPO 28.Oct-2002 -500,000.00 993986222 01.760%10/2W2002 DO 1028/ 28-Oc1-2002 500,000.00 B LEHMAN GOVT SECS INC,NY 0.00 LONG TERM OPER-PIMCO 500,000.00 LEHMAN BROTHERS REPO 28-Oct-2002 -500,000.00 9939813222 01.760%1029/M2 DO 10281 28.Oct-2002 0.00 FC LEHMAN GOVT SECS INC,NY 284Oct-2002 0.00 LIQUID OPER-PIMCO 100000.00 STUDENT IN MRKTNG ASSN STN 28-Oct-2002 -99,921.89 86387THU5 VAR RT 03202003 DD 09/19/ 29-00-2002 99,921.88 B RBC DOMINION SECS INC,(T002 0.00 LIQUID OPER-PIMCO 100,000.00 STUDENT IN MRKTNG ASSN SIN 28-OM-2002 -199.15 86387THU5 VAR RT 0320/2003 DD 09/19/ 29-Oct-2002 0.00 IB 0.00 LIQUID OPER-PIMCO 100,000.00 STUDENT IN MRKTNG ASSN STN 28-Oct-2002 -100,111.03 86387THU5 VAR RT 03202003DD09/191 29-Oct-2002 0.00 FC RBC DOMINION SECS INC,(T002 29-Oct-2002 0.00 LONG TERM OPER-PIMCO 24.44 DREYFUS TREASURY CASH MGMT 29-Oct-2002 -24.44 996085247 29-OU-2002 24.44 B 0.00 07-No 2002 /0:29:28 &ecmiw Workbench Q Mellon Trust-Sample Report PACE: 8 PORTFOLIO DETAIL OcsG"l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 24.44 DREYFUS TREASURY CASH MGMT 29.Oct-2002 -24.44 9%085247 29-Oct-2OD2 0.00 FC 29.0n-2002 O.OD LONG TERM OPER-PIMCO 500.000.00 LEHMAN CAT 2 REPO 29-Oa-2002 -500,000.00 "399C162 01.8000A 10/30/2002 DO 1029/ 29-W-2002 500,000.00 B LEHMAN GOVT SECS INC,NY 0.00 LONG TERM OPER-PIMCO 500,000.00 LEHMAN CAT 2 REPO 29-Oc1-2002 -500,000.00 99398CI62 01.800%10/30/2002 DO 10291 29-Oct-2002 0.00 FC LEHMAN GOVT SECS INC,NY 29.Oct-2002 0.00 LONG TERM OPER-PIMCO 25.00 DREYFUS TREASURY CASH MGMT 30-0a-2002 -25.00 996095247 30.Oct-2002 25.00 B 0.00 LONG TERM OPER-PIMCO 25.00 DREYFUS TREASURY CASH MGMT 30-Oc1-2002 -25.00 996085247 30-Oc1-2002 0.00 FC 30.Oct-2002 0.00 LONG TERM OPER-PIMCO 500,000,00 LEHMAN BROTHERS REPO 30-Oct-2002 -500.000.00 99399EO85 01.810%10/31/2002 DO 10/301 3D-Oct-2002 500,000.00 B LEHMAN GOVT SECS INC,NY 0.00 TANG TERM OPER-PIMCO 500,000.00 LEHMAN BROTHERS REPO 30-00-2002 -500,000.00 99398EO85 01.810%10/3 12 0 02 DO 101301 30.0a-2002 0.00 FC LEHMAN GOVT SECS INC,NY 30-Oa-2002 0.00 074 2001 10:19:18 Executive Workbench QIF Mellon Trust-Sam le Report PACE: 9 PORTFOLIO DETAIL OCSG00o10000 01-OCT-2002-31-OCT-2002 OCSD-CONSOL/DATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 25.14 DREYFUS TREASURY CASH MGMT 31.Oct-2002 -25.14 996085247 31-Oct-2002 25.14 B 0.00 LONG TERM OPER-PIMCO 25.14 DREYFUS TREASURY CASH MGMT 31.Oct-2002 -25.14 996095247 31-Oct-2002 0.00 FC 31-Oct-2002 0.00 LONG TERM OPER-PIMCO 500,000.00 CREDIT SUISSE FB REPO 31-Oct-2002 -500,000.00 9939SF256 01.8709%11/01/2002 DO 10/31/ 31-Oct-2002 500,000.00 B CREDIT SUISSE FIRST BOSTON C 0.00 LONG TERM OPER-PIMCO 500,000.00 CREDIT SUISSE FB REPO 31-Oct-2002 -500,000.00 99398F256 01.870%11/012002 DO 10/311 31-0ct-2002 0.00 FC CREDIT SUISSE FIRST BOSTON C 31-Oct-2002 0.00 FIXED INCOME SECURITIES LONG TERM OPER-PIMCO -6,000,000.00 COMMIT TO FUR FNMA SF MTG 21-Aug-2002 6,178,125.00 GIF0604AO 6.000%1 0/0 1120 1 7 DO 10/01/ 21-Oct-2002 -6,178,125.00 BC SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 305,983.55 FNMA POOL 00598427 21-Aug-2002 -315,067.44 31387YYY3 6.000%02/01/2017 DD 02/01/ 21-Oc1-2002 315,067.44 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 305,983.55 FNMA POOL80598427 21-Aug-2002 -1,019.95 31387YYY3 6.000%02/0 1 2 0 1 7DD02101/ 21-Oc1-2002 0.00 IB 0.00 07-No 2002 10.29:28 Executive Workbench Q Mellon Trust-Sample Re ort PAGE: 10 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 - 31-OCT-2002 OCSD-CONSODUATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COKPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 305,993.55 FNMA POOL80598427 21-Aug-2002 -316,087.39 31387YYY3 6.000%02/01/2017DD02/01/ 214)ct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21.Oct-2002 0.00 LONG TERM OPER-PIMCO 309,342.79 FNMA POOL#0598427 21-Aug-2002 -318,526.40 31387YYY3 6.000%02/012017 DD 02/01/ 21.0n-2002 318,526.40 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 309,342.79 FNMA POOL#0598427 21-Aug-2002 -1,031.14 31387YYY3 6.000%02/01/2017 DO 02/01/ 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 309,342.79 FNMA POOL 80598427 21-Aug-2002 419,557.54 31387YYY3 6.000%02/01/2017DD02/01/ 21.Oct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 305,481.81 FNMA POOL 00596626 21-Aug-2002 -314,550.80 31387WYX9 6.000%08/012016 DO 07/011 21.Oct-2002 314,550.80 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 305,491.91 FNMA POOLg0596626 21-Aug-2002 -1,018.27 31387WYX9 6.000%08/012016DD07/01/ 21-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 305,491.91 FNMA POOL 00596626 21-Aug-2002 -315,569.07 31387WYX9 6.000%08/012016 DO 07/011 21-Oct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 07.Nov.2002 10:29:28 Executive Workbench Q Mellon Trust-Sample Report PAGE- 11 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATPJ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PDACO 307,368.98 FNMA POOL 00596626 21-Aug-2002 -316,494.00 31387WYX9 6.000%09/012016 DO 07/011 21-Oct-20D2 316,494.00 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 307,368.98 FNMA POOL 00596626 21-Aug-2002 -1,024.56 31387WYX9 6.000%08/01/2016 DD 07/01/ 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 307,369.98 FNMA POOL80596626 21-Aug-2002 ,317,518.56 31387WYX9 6.000%08/01/2016 DO 07/01/ 21-Oct-2002 0.00 PC SALOMON BROS MG NEW YORK 21-Oc1-2002 0.00 LONG TERM OPER-PIMCO 330,773.73 FNMA POOL#0599427 21-Aug-2002 340,393.58 31387YYY3 6.000%02/012017 DO 02/01/ 21-Oct-2002 340,593.58 B SALOMON BROS INC.NEW YORK 0.00 LONG TERM OPER-PIMCO 330,773.73 FNMA POOL 90598427 21-Aug-2002 -1,102.59 31387YYY3 6.000%02/01/2017 DD 02/011 21.00.2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 330,773.73 FNMA POOL 00599427 21-Aug-2002 -341,696.16 31387YYY3 6.000%02/012017 DD 0210It 21-Oct-2002 0.00 PC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 386,547.73 FNMA POOL80580D52 21-Aug-2002 -399,023.37 31387CL90 6.000%07/012016 DD 07/01/ 21-Ou-2002 398,023.37 B SALOMON BROS INC,NEW YORK 0.00 07-Nw2002 10:29.18 4kccuttw Wo kbexb Q Mellon Trust-Sample Report PAGE. 12 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 386,547.73 FNMA POOL40580052 21-Aug-2002 -1,288.49 31387CL90 6.000%07/01/2016 DO 07/01/ 21-Oc1-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 386,547.73 FNMA POOL40580052 21-Aug-2002 -399,311.86 31397CL90 6.000%07/01/2016DD07/01/ 21-Oct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 306,627.12 FNMA POOL40598427 21-Aug-2002 -315,730.11 31387YYY3 6.000%02/01/2017DD02/01/ 21.Oct-2002 315,730.11 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 306,627.12 FNMA POOL40598427 21-Aug-2002 -1,022.09 31387YYY3 6.0001/.02/01/2017 DO 02/01/ 21-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 306,627.12 FNMA POOL40598427 21-Aug-2002 -316,752.20 31387YYY3 6.0001/602/01/2017 DO 02/01/ 21-Oct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 397,356.05 FNMA POOL#0580052 21-Aug-2002 -398,855,69 31387CL90 6.000-A 07/01/2016 DO 07/01/ 21-00-2002 398,855.68 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 387,356.05 FNMA POOL40580052 21-Aug-2002 -1,291.19 31387CL90 6.000OK07/01/2016UD07/01/ 21-Oct-2002 0.00 IB 0.00 07-Now2002 10.29.28 Execuliw Workbench Q Mellon Trust-Sample Report PAGE: 13 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LONG TERM OPER-PIMCO 387,356.05 FNMA POOL40580052 21-Aug-2002 -400,146.97 31397CL90 6.000°/a 07/01/2016 DD 07/01/ 21-Oa-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-W-2002 0.00 LONG TERM OPER-PIMCO 332,153.11 FNMA POOLN0596626 21-Aug-2002 -342,013.91 31387WYX9 6.000%0B/012016DD07/01/ 21-Oct-2002 342,013.91 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 332,I53.11 FNMA POOL#0596626 21-Aug-2002 -1,107.18 31387WYX9 6.000%08/012016 DD 07/01/ 21-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 332,I53.11 FNMA POOL#0596626 21-Aug-2002 ,343,121.09 31387WYX9 6.000%08/012016DD07/01/ 21-Ott-2002 0.00 FC SALOMON BROS ROC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 336,973.72 FNMA POOL40535945 21-Aug-2002 -346,977.63 31394WL24 6.000'%05/012016DD04/0l/ 21-Oct-2002 346,977.63 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 336,973.72 FNMA POOL#0535945 21-Aug-2002 -1,123.25 31384WL24 6.000%05/012016 DD 04/01/ 21-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 336,973.72 FNMA POOL00535945 21-Aug-2002 -348,100.88 31384WL24 6.000%05/012016DD04/01/ 21.Oct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 07-Now2002 10:29:28 Exemiw Workbench Q Mellon Trust-Sample Report PAGE: 14 PORTFOLIO DETAIL OCS0000/0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 302.955.41 FNMA POOL80596626 21-Aug-2002 -311,949.40 31387WYX9 6.000%08/01/2016DD07/01/ 21-Oc1-2002 311,949.40 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 302,955.41 FNMA POOL#0596626 21-Aug-2002 -1.009.85 31387WYX9 6.0000%08/01/2016 DD 07/01/ 21-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 302,955.41 FNMA POOL80596626 21-Aug-2002 -312,959.25 31387WYX9 6.000%08/01/2016DD07/01/ 21.Oct-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 389.406.29 FNMA POOL80580052 21-Aug-2002 -400,966.79 31387CL90 6.000%07/012016 DD 07/01/ 21-Oct-2002 400,966.79 B SALOMON BROS MC,NEW YORK 0.00 LONG TERM OPER-PIMCO 389,406.29 FNMA POOL80580052 21-Aug-2002 -1,298.02 31387CL90 6.000%07/012016DD07/01/ 21-Oc1-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 389,406.29 FNMA POOL80580052 21-Aug-2002 402,264.81 31387CL90 6.000%07/012016DD07/01/ 21-Oct-2002 0.00 PC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 307,539.02 FNMA POOLA0535945 21-Aug-2002 -316,669.08 31384WL24 6.000%05/012016DD04/01/ 21-Oc1-2002 316,669.08 B SALOMON BROS INC,NEW YORK 0.00 07-Now2002 10:29.28 - - - &m.lim Workbench Q Mellon Trust-Sample Report PAGE: 15 PORTFOLIO DETAIL OCSG000/0000 01-OCT-2002-31-OCT-2002 00D-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 307,539.02 FNMA POOL#0535945 21-Aug-2002 -1.025.13 31384WL24 6.000%05/01/2016 DD 04/01/ 21-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 307,539.02 FNMA POOL40535945 21-Aug-2002 -317,694.21 31384WL24 6.000%03/01/2016 DO 04/01/ 21.0ct-2002 0.00 PC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 382,043.96 FNMA POOL 00580052 21-Aug-2002 -393,385.79 31387CL90 6.000%07/01/2016 DO 07/01/ 21-OM-2002 393,385.79 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 382,043.86 FNMA POOL#0590052 21-Aug•2002 -1.273.49 31387CL90 6.000%07/01/2016 DO 07/01/ 21.OM-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 392,043.86 FNMA POOL#0580052 21-Aug-2002 -394,659.27 31397CL90 6.000%07/012016 DD 07101/ 21.Oct-2002 0.00 PC SALOMON BROS INC,NEW YORK 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 305,917.51 FNMA POOL#0535945 21-Aug-2002 -314,999.44 31384WL24 6.000%05/012016DD04/01/ 21-Oct-2002 314,999.44 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 305,917.51 FNMA POOL#0535945 21-Aug-2002 -1,019.73 31384WL24 6.000%05/01/2016DD04/0l/ 21-0ct-2002 0.00 IB 0.00 07-No 2002 10:29:28 Executive Workbench Q Mellon Trust-Sample Report PAGE: 16 PORTFOLIO DETAIL OCS000010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURrrY ID TRANSACTION DESCRIMON/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LONG TERM OPER-PIMCO 305,917.51 FNMA POOL80535945 21-Aug-2002 -316,019.17 31384WL24 6.000%05/012016 DD 041011 21.Oct-2002 0.00 FC SALOMON BROS MC,NEW YORK 21-0d-2002 0.00 LONG TERM OPER-PIMCO 384,177.72 FNMA POOLR0580052 21-Aug-2002 -395,593.00 31387CL90 6.0000/.07/012016 DO 07/01/ 21-0d-2002 395,593.00 B SALOMON BROS INC.NEW YORK 0.00 LONG TERM OPER-PIMCO 384,177.72 FNMA POOL 00580052 21-Aug-2002 -1,280.59 31387CL90 6.000%07/012016 DO 071011 21-00-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 384,177.72 FNMA POOL60580052 21-Aug-2002 -396,863.59 31387CL90 6.000%07MI2016 OD 07/01/ 21-0ct-2002 0.00 FC SALOMON BROS MC,NEW YORK 21-0ct-2002 0.00 TANG TERM OPER-PIMCO 308,513.81 FNMA POOLg0535945 21-Aug-2002 -317,672.91 31384WL24 6.000%05/012016DD04/01/ 21-Oct-2002 317,672.81 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 308,513.81 FNMA POOL80535945 21-Aug-2002 -1,028.38 31384WL24 6.000%05/01/2016 DD 04/011 21-0d-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 309,513.81 FNMA POOLM0535945 21-Aug-2002 -319,701.19 31384WL24 6.000%05/01/2016 DO 04/01/ 21-Od-2002 0.00 FC SALOMON BROS INC,NEW YORK 21-0ct-2002 0.00 07-Nw2= 10.29:28 EmwM Wwkbewh Q McOou Trust-Sample ft2rt PAGE /7 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 310,7A0.57 FNMA POOL80535945 21-Aug-2002 -319,450.84 31384WL24 6.000%05/012016 DO 04/01/ 21-OU-2002 319,450.94 B SALOMON BROS INC,NEW YORK 0.00 LONG TERM OPER-PIMCO 310,240-57 FNMA POOL80535945 21-Aug-2002 -1,034.14 31394WL24 6.000%05/012016DD04/01/ 21-Od-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 310,240.57 FNMA POOL#0535945 21-Aug-2002 -320,494.98 31394WI24 6.000%05/01/2016 DD 04/01/ 21-Oct-2002 0.00 PC SALOMON BROS INC,NEW YORK 21-OU-2002 0.00 LONG TERM OPER-PIMCO -7,000,000.00 COMMIT TO PUR GNMA SF MTG 28-Au9-2002 7,229,687.50 OIN0626A5 6.500%/0/152032 DD 10/01/ 23-Oct-2002 -7,229,687.50 BC BEAR STEARNS&CO INC,NY 0.00 LONG TERM OPER-PIMCO 8,0W,OW.0D COMMIT TO PUR GNMA SF MTG 2&Aug-2002 -8,262,500.00 OIN0626A5 6.500%.IO/MO32 DO 10/01/ 23-OU-2W2 0.00 PC WARBURG DILLON READ LLC,NEW 23-Och2002 0.00 LONG TERM OPER-PIMCO 131,703.21 GNMA POOLOO565085 28-Aug-2002 -136,024.72 36213UXN5 6.500%04/152032 DO 04/01/ 23-Oct-2002 136,024.72 B BEAR STEARNS&CO INC,NY 0.00 LONG TERM OPER-PIMCO 131,703.21 GNMA POOL 90565085 28-Aug-2002 -523.15 36213UKN5 6.500%04/152032 DD 04101/ 23-Od-2002 0.00 IB 0.00 07-No 2002 10.29.28 Emmli c Wo kbnxh Q Mellon Trust-Sam le Report PAGE: 18 PORTFOLIO DETAIL OCsc000l 0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESMAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINILOSS LONG TERM OPER-PIMCO 131,703.21 GNMA POOL#0565085 28-Aug-2002 -136,547.87 36213UXN5 6.500%04/152032DD04/01/ 23-Oct-2002 0.00 PC BEAR STEARNS&CO INC,NY 23-Oct-2002 0.00 LONG TERM OPER-PIMCO 999,900.60 GNMA POOL#0570519 28-Aug-2002 -1,032,709.94 3620ORYQ9 6.500%01/152032DD01/0l/ 23-0ct-2002 1,032,709.94 B BEAR STEARNS&CO INC,NY 0.00 LONG TERM OPER-PIMCO 999,900.60 GNMA POOL#0570519 2&Aug-2002 -3,971.83 3620ORYQ9 6.500%01/152032DD01/0l/ 23-Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 999,900.60 GNMA POOL#0570519 28-Aug-2002 -1,036,681.67 3620ORYQ9 6.500%01/15/2032DDOi/0l/ 23-Oct-2002 0.00 PC BEAR STEARNS&CO INC,NY 23.Oct-2002 0.00 LONG TERM OPER-PIMCO 4,999,501.72 GNMA POOL#0565085 28-Aug-2002 -5,163,547.97 36213UXN5 &500%G4/152032DD04/0I1 23-Oct-2002 5,163,547.87 B BEAR STEARNS&CO INC,NY 0.00 LONG TERM OPER-PIMCO 4,999,501.72 GNMA POOL#0565095 28-Aug-2002 -19,859.13 36213UXN5 6.500%0 411 52 0 3 2 DD 041011 23-00-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 4,999,501.72 GNMA POOL#0565085 28-Aug-2002 -5,183,407.00 36213UXN5 6.500%04/152032 DO 041011 23-Oct-2002 0.00 PC BEAR STEARNS&CO INC,NY 23.Oct-2002 0.00 07-,V v 2002 10:29:28 Executive Workbench Q Mellon Trust-Sample Report PAGE. /9 PORTFOLIO DETAIL OCS0000/0008 01-OCT-2002-31-OCT-2002 OCSDCONSOGDATED SHARES/PAR - TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 868,1%.99 ONMA POOL80570519 28-Aug-2002 -896,694.70 3620ORYQ9 6.500%01/152032DD01/01/ 23.Oct-2002 896,694.70 B BEAR STEARNS&CO INC,NY 0.00 TANG TERM OPER-PIMCO 868,1%.99 ONMA POOLN0570519 28-Aug-2002 -3,448.67 36200RYQ9 6.5000/.01/152032 DO 01/011 23.Oct-2002 0.00 IB 0.00 LONG TERM OPER-PIMCO 86811%.99 ONMA POOL80570519 28-Aug-2002 -900,133.37 3620ORYQ9 6.500%01/152032DD01/OI/ 23.Oct-2002 0.00 FC BEAR STEARNS&CO INC,NY 23-Oct-2002 0.00 LONG TERM OPER-PIMCO -5,000,000.00 COMMITTOPURFNMASFMTO 04-Sep-2002 5,100,000.00 0IF0606AS 6.000%10/012032 DO 10/01/ 15.Oct-2002 -51100,000.00 BC GOLDMAN SACHS&CO,NY 0.00 LONG TERM OPER-PIMCO -3,000,000.00 COMMIT TO FUR FNMA SF MTO 04-Sep-2002 3,063,750.00 0IF0524A7 5.500%101012017DD 10/01/ 21.Oct-2002 -3,063,750.00 BC MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 5,000,000.00 COMMIT TO FUR FNMA SF MTO 04-Sep-2002 -5,100,000.00 0IF0606AS 6.000%1 010 12 0 3 2 DD 10101/ 1S-Oct-2002 5,100,000.00 B GOLDMAN SACHS&CO,NY 0.00 LONG TERM OPER-PIMCO 5,000,000.00 COMMIT TO FUR FNMA SF MTO 04-Sep-2002 -5,100,000.00 0IF0606AS 6.000%10/012032 DO 10/01/ 15.Oet-2002 0.00 FC GOLDMAN SACHS&CO,NY 15.Oct-2002 0.00 07-No 2002 10.29.28 Eremt/w Wmkbewh Q Mellon Trust-Sample Report PAGE: 10 PORTFOLIO DETAIL Ocsc000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 3,000,000.00 COMMIT TO FUR FNMA SF MTG 04-Sep-2002 -3,063,750.00 0IF0524A7 5,500%10/01/2017 DD 10/01/ 21-Oct-2002 3,063,750.00 B MERRILL LYNCH PIERCE FENNER 0.00 LONG TERM OPER-PIMCO 3,000,000.00 COMMIT TO FUR FNMA SF MTG 04-Sep-2002 -3,063,750.00 0IF0524A7 5.500%10/012017 DID 10/01/ 21.Oct-2002 0.00 FC MERRILL LYNCH PIERCE FENNER 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 3,000,000.00 COMMIT TO FUR FNMA SF MTG 12-Sep-2002 -3,105,000.00 0IF0604AO 6.000%10/01/2017 DO 10/011 21-Oct-2002 0.00 FC LEHMAN GOVT SECS INC,NY 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -6,000,000.00 COMMIT TO FUR FNMA SF MTG 12-Sep-2002 6,210,000.00 0IF0604AO 6.000%10/012017 DO 10/011 21-Oct-2002 -6,210,000.00 BC BK OF AMER NATL TR&SVGS CT 0.00 LONG TERM OPER-PIMCO 6,000,000.00 COMMIT TO PUR FNMA SF MTG 12-Sep-2002 -6,210,000.00 0IF0604AO 6.000%10/012017 DO 10/01/ 21-Oct2002 6,210,000.00 B BK OF AMER NATL TR&SVGS CT 0.00 LONG TERM OPER-PIMCO 6,000,000.00 COMMITTO PUR FNMA SF MTG 12-Sep-2002 -6,210,000.00 0IF0604AO 6.000%10/012017 DO 10/01/ 21-Oct-2002 0.00 FC BK OF AMER NATL TR&SVGS CT 21-Oct-2002 0.00 LIQUID OPER-PIMCO 900,000.00 TOSCO CORP GTD I ST MTG BD 01-0nQ002 -932,193.00 991490AFI 8.250%05/152D03 DD 051151 04-Oct-2002 932,193.00 B CHASE SECURITIES,NEW YORK 0.00 07-Now2001 10.29:28 Executive WL kbnxh " Q Mellon Trust-Sample Report PAGE 2/ PORTFOLIO DETAIL OcsG000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LIQUID OPER-PIMCO 900,000.00 TOSCO CORP GTD 1ST MTG BD 01-Oct-2002 -28,668.75 891490AFI 8.250%05/152003 DO 05/15/ 04-Oct-2002 0.00 IS 0.00 LIQUID OPER-PIMCO 900,000.00 TOSCO CORP GTD IST MTG BD 01-0ct-2002 -960,861.75 891490AFI 8.250%05/152003 DO 05/15/ 04-Oct-2002 0.00 PC CHASE SECURITIES,NEW YORK 04-Oc1-2002 0.00 LIQUID OPER-PIMCO 1,000,000.00 MORGAN STANLEY DW MTN 8TRO03 02.Oc1-2002 -1,045,350.00 61745EQN4 7.125%0 9/1 52 0 0 3 DO 08/10/0 07-Ott-2002 1,045,350.00 B MORGAN STANLEY&CO INC,NY 0.00 LIQUID OPER-PIMCO 1,000,000.00 MORGAN STANLEY DW MTN 4TR003 02-Oct-2002 -10,291.67 61745EQN4 7.125%08/152003 DO 09110/0 07-0ct-2002 0.00 IB 0.00 LIQUID OPER-PIMCO 1,000,000.00 MORGAN STANLEY DW MTN 8TRO03 02-Oct-2002 -1.055,641.67 61745EQN4 7.125%08/152003 DO 08110/0 07-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 07-Oct-2002 0.00 LONG TERM OPER-PIMCO 5,000,000.00 COMMITTOPURFNMASFMTG 07-Oct-2002 -5,125,000.00 01F0606B6 6.00V1.11/012032 DO I I/01/ 14-Nov-20M 5,125,000.00 B GOLDMAN SACHS&CO,NY 0.00 LONG TERM OPER-PIMCO 3,000,000.00 COMMIT TO FUR FNMA SF MTG 08-Oct-2002 3,087,187.50 01F0524B5 5.500%11/012017 DO I I/01/ 19-Nov-2002 3,087,197.50 B MERRILL LYNCH PIERCE FENNER 0.00 07-Nov-1002 /0:19:18 Em.tAe Workbench Q Mellon Trust-Sample Report PAGE 11 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINILOSS LONG TERM OPER-PIMCO 2,000,000.00 COMMITTOPURGNMASFMTG IS-Oct-2002 -2,076,875.00 OIN0626B3 6.500%11/15/2032 DO 11101/ 20-Nov-2002 2,076,875.00 B CHASE SECURITIES,NEW YORK 0.00 LONG TERM OPER-PIMCO 8,000,000.00 COMMITTOPURGNMASFMTG 15-Oct-2002 -8,305,000.00 OIN0626B3 6.500%11/152032 DO I I/01/ 20-Nov-2002 8,305,000.00 B WARBURG DILLON READ LLC,NEW 0.00 LONG TERM OPER-PIMCO 6,000,000.00 COMMITTO PUR FNMA SF MTG 16-Oct-2002 -6,210,0X00 0IF0604B8 6.000%11/012017 DO I I/01/ 19-Nov-2002 6,210,000.00 B MORGAN STANLEY&CO INC,NY 0.00 LONG TERM OPER-PIMCO 6,000,000.00 COMMIT TO PUR FNMA SF MTG 16-Oct-2002 -6,211,875.00 0IF0604BB 6.000%11/012017 DO 11/01/ 19-Nov-2002 6,211,875.00 B BK OF AMER NATL TR&SVGS CT 0.00 LONG TERM OPER-PIMCO 3,000,000.00 COMMIT TO FUR FNMA SF MTG 16-Oc1-2002 -3,104,062.50 0IF0604BB 6.000%11/012017 DO II/01/ 19-Nov-2002 3,104,062.50 B LEHMAN GOVT SECS INC,NY 0.00 LIQUID OPER-PIMCO 1,000,000.00 FEDERAL HOME LN BK.CONS BDS 17-Oct-2002 -1,011,250.00 3133MDGE7 5.000%02282003 DO 0229/0 18-Oct-2002 1,011,250.00 B RBC DOMINION SECS INC,(TO02 0.00 LIQUID OPER-PIMCO 1,000,000.00 FEDERAL HOME LN BK CONS BUS 17-OM-2002 -6,944.44 3133MDGE7 5.000%02282003 DO 0212810 18-Oct-2002 0.00 IB 0.00 074 2002 10.29:28 Executive Workbench " Q Mellon Trust-Sample Report PAGE: 13 PORTFOLIO DETAIL OCS000010000 01-OCT-2002-31-OCT-2002 GCSD-CONSOLIDATED SHARESIPAR TRADE DATV AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINILOSS LIQUID OPER-PIMCO 1,000,000.00 FEDERAL HOME IN BE CONS BDS 17-00-2002 -1,019,194.44 3133MDGE7 5.000%02/292003 DD 0228/0 19-Oct-2002 0.00 FC RBC DOMINION SECS INC,(T002 lWa-2002 0.00 LIQUID OPER-P)MCO 100,000.00 FEDERAL NATL MTG ASSN MTN IS-Oa-2002 -102,765.00 31364CDD7 6.710%05212003 DO 052119 21-0a-2002 102,765.00 B MERRILL LYNCH PIERCE FENNER 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL NATL MTO ASSN MTN 184Oct-2002 -2,795.83 31364CDD7 6.710%0521/2003 DO 05/2119 21-00-2002 0.00 IB 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL NATL MTG ASSN MTN I8-0a-2002 -105,560.83 31364CDD7 6.710%05212003 DD 052119 21-0a-2002 0.00 FC MERRILL LYNCH PIERCE FENNER 21-0a-2002 0.00 LIQUID OPER-P1MCO 100,000.00 STUDENT LN MARKETING ASSN ST 28.Oct-2002 -99,921.89 86387THSO VAR RT 01/162003 DO 07119/0 29-0a-2002 99,921.88 B BBC DOMINION SECS INC,(T002 0.00 LIQUID OPER-PIMCO 100,000.00 STUDENT LN MARKETING ASSN ST 28-0a-2002 476.64 363STFHSO VAR RT 01/162003 DO 07/IM 29-0a-2002 0.00 IB 0.00 LIQUID OPER-PIMCO 100,000.00 STUDENT LN MARKETING ASSN ST 28-0a-2002 -100,398.52 96387FHSO VAR RT 01/162003 DO 07/IS/0 29-OU-2002 0.00 FC ABC DOMINION SECS INC,(F002 29-0a-2002 0.00 07-No 2002 10:19:18 &emttee Wmkbe h Q Mellon Trust-Sample Report PAGE. 24 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHAREWPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIMLOSS LONG TERM OPER-PIMCO 3,000,000.00 COMMIT TO FUR FNMA SF MTG 29.Oc1.2002 -3,079,697.50 0IF0524C3 5.500%12/012017 DO 12/01/ 17-De 2002 3,079,687.50 B MERRILL LYNCH PIERCE FENNER 0.00 LIQUID OPER-PIMCO 150,000.00 FEDERAL FARM CR BKS CONS MTN 31-OU-2002 -155,796.00 3133INW59 6.550%08/192003 DO 08/1919 01-Nov-2002 135,796.00 B ADVEST CO,HARTFORD 0.00 LIQUID OPER-PIMCO 150,000.00 FEDERAL FARM CR BKS CONS MTN 314)cb2002 -1,965.00 31331NW59 6350%09/192003 DO 08/1919 01-Nov-2002 0.00 I 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL HOME LN BK CONS BUS 31-Oc1.2002 -103,311.00 3133M55B2 5,925%08/142003 DD 011/14/ 01-Nov-2002 103,311.00 B ADVEST CO,HARTFORD 0.00 LIQUID OPER-PIMCO 100,000.00 FEDERAL HOME LN BK CONS BDS 31-Oc1-2002 -1,267.29 3133M55132 5.925%08/14/2003 DO 08/14/ 01-Nov-2002 0.00 IB 0.00 PAY UPS FIXED INCOME SECURITIES LONG TERM OPER-PIMCO 85,330.00 US TREASURY INFLATION INDEX 15-Jul-2002 -85,330.00 9128272M3 3.375%01/15/2007 DD 01/1S/ 15-Jul-2002 $5,330.00 PU 0.00 07-Nov-2002 10.29:28 aeculNe Workbench " Q Mellon Trust-Sample Report PAGE. 25 PORTFOLIO DETAIL ocsc000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO 85,330.00 US TREASURY INFLATION INDEX 15-1ul-2002 -95,330.00 9128272M3 3.375%01/152007 DD 011151 15-1ul-2002 0.00 FC 31-Oct-2002 0.00 LONG TERM OPER-PIMCO 20,406.00 US TREASURY INFLATION INDEX 15-Jul-2002 -20,406.00 9128274Y5 3.875%01/152009 DD 011151 15-Jul-2002 20,406.00 PU 0.00 LONG TERM OPER-PIMCO 20,406.00 US TREASURY INFLATION INDEX 15-Jul-2002 -20,406.00 9128274Y5 3.875%01/152009 DD 01/15/ 15-Jul-2002 0.00 FC 31-Oct-2002 0.00 LONG TERM OPER-PIMCO 13,997.77 FHLMC MULTICLASS CTF SER 162 01-Oct2002 -13,997.77 3133T17A4 6.000^/e 11/152023 DD 11/0119 01-Gct-2002 13,997.77 PU 0.00 LONG TERM OPER-PIMCO 13,997.77 FHLMC MULTICLASS CTF SER 162 01-Oct-2002 -13,997.77 3133T17A4 6.000%I I/152023 DD 11/0119 01-Oct-2002 0.00 FC 17-Oct-2002 0.00 SALES CASH&CASH EQUIVALENTS LIQUID OPER-PIMCO -959.320.20 DREYFUS TREASURY CASH MGMT 04-Oct-2002 959,320.20 996095247 04-Oct-2002 -959,320.20 S 0.00 07-N.w2001 10.29.28 Evecutire Workbench Q Mellon Trust-Sample Report VALE. 26 PORTFOLIO DETAIL ocsc000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LIQUID OPER-PIMCO -959,320.20 DREYFUS TREASURY CASH MGMT 04-Oct-2002 959,320.20 996085247 04-Oc1-2002 0.00 FC 04-Oct-2002 0.00 LIQUID OPER-PIMCO -950,921.67 DREYFUS TREASURY CASH MGMT 07-Oct-2002 950,821.67 996085247 07-Oc1-2002 -850.821.67 S 0.00 LIQUID OPER-PIMCO -850,821.67 DREYFUS TREASURY CASH MGMT 07-Oct-2002 850,821.67 9%085247 07-0ct-2002 0.00 FC 07.Oct-2002 0.00 LIQUID OPER-PIMCO -155,024.61 DREYFUS TREASURY CASH MGMT 08-Oct-2002 155,024.61 996085247 08-Oct-2002 -155,024.61 S 0.00 LIQUID OPER-PIMCO -155,024.61 DREYFUS TREASURY CASH MGMT 08-Oc1-2002 155,024.61 996085247 08-Oct-2002 0.00 FC 08-Oct-2002 0.00 LIQUID OPER-PIMCO -1,500,W0.00 PITNEY BOWES INC DISC 10-Oct-2002 1,499,495.42 72447TK34 10/182002 11.0M-2002 -1,499,996.67 S BANC OF AMERICA SEC LLC,SAN 498.75 LIQUID OPER-PIMCO -1,500,000.00 PITNEY BOWES INC DISC K-Oct-2002 1,499,495.42 72447TK34 10/18/2002 11-Oct-2002 0.00 FC BANC OF AMERICA SEC LLC,SAN I I-Oct-2002 0.00 07-Nw-2002 10,29.28 &ecutwe WWkbeuh Q Mellon Trust-Sample Report PAGE: 27 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -15,394.95 BSDT-LATE MONEY DEPOSIT ACCF 16-Oct-2002 15,394.95 996087094 16-0a-2002 -15,394.85 S 0.00 LONG TERM OPER-PIMCO -32,831.00 BSDT-LATE MONEY DEPOSIT ACCT 17-0ct-2002 32,831.00 996087094 17-0ct-2002 -32,931.00 S 0.00 LIQUID OPER-PIMCO -218,194.44 DREYFUS TREASURY CASH MGMT I8-Oa-2002 218,194A4 996085247 18-Oct-2002 -218,194.44 S 0.00 LIQUID OPER-PIMCO -218,194.44 DREYFUS TREASURY CASH MGMT 18-Oct-2002 218,194.44 996095247 18-0n-2002 0.00 FC 18-Oct-2002 0.00 LONG TERM OPER-PIMCO -796,562.22 DREYFUS TREASURY CASH MGMT IS-Oct-2002 796,562.22 996085247 18-Oct-2002 -796,562.22 S 0.00 LONG TERM OPER-PIMCO -796,562.22 DREYFUS TREASURY CASH MGMT IS-Oct-2002 796,562.22 996085247 18-Oct-2002 0.00 FC I8-Oct-2002 0.00 LIQUID OPER-PIMCO -103,560.83 DREYFUS TREASURY CASH MGMT 21-Oct-2002 105,560.83 996085247 21-Oct-2002 -105,560.83 S 0.00 07-Nw-2002 10:29:28 Ex9mow Workbench Q Mellon Trust-Sample Report PAGE, 28 PORTFOLIO DETAIL Ocsc000/0000 01-OCT-2002-31-OCT-2002 OCSACONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LIQUID OPER-PIMCO -105,560.83 DREYFUS TREASURY CASH MGMT 21-Oct-2002 105,560.83 996085247 21-Oct-2002 0.00 FC 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 485,138.28 DREYFUS TREASURY CASH MGMT 28-Oc1.2002 485,138.29 996085247 26-Oct-2002 485,138.28 S 0.00 LONG TERM OPER-PIMCO -485,138.28 DREYFUS TREASURY CASH MGMT 28-Oct-2002 485,138.28 996085247 28-Oct-2002 0.00 FC 28-Oct-2002 0.00 LIQUID OPER-PIMCO -2,000,000.00 FEDERAL HOME LN BK CONS DISC 28-Oct-2002 1,993,186.67 313385R65 MAT 12/02/2002 28-Oct-2002 -1,993,186.67 S GOLDMAN SACHS&CO,NY 0.00 LIQUID OPER-PIMCO -2,000,000.00 FEDERAL HOME LN BK CONS DISC 28-Oct-2002 3,566.11 313385R65 MAT 12/02/2002 28-Oc1-2002 0.00 IS 0.00 LIQUID OPER-PIMCO -2,000,000.00 FEDERAL HOME LN BK CONS DISC 28-Oct-2002 1,996,752.78 313385R65 MAT 12/02/2002 28-Oct-2002 0.00 FC GOLDMAN SACHS&CO,NY 28-Oct-2002 0.00 LIQUID OPER-PIMCO -200,509.55 DREYFUS TREASURY CASH MGMT 29-Oct-2002 200,509.55 996085247 29-Oct-2002 -200,509.55 S 0.00 07-Nov-1002 10.29.28 Er...liv Workbench - Q Mellon Trust-Sample Report PAGE. 29 PORTFOLIO DETAIL OCS000010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHAREWPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LIQUID OPER-PIMCO -200,509.55 DREYFUS TREASURY CASH MGMT 29-Oct-2002 200,509.55 996095247 29-Oct-2002 0.00 FC 29-Oct-2002 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN BROTHERS REPO 29-Oct-2002 500,000.00 9939BB222 01.760%10/29/2002 DO 10281 29-Oct-2002 -500,000.00 S LEHMAN GOVT SECS INC,NY 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN BROTHERS REPO 29-Om-2002 24.44 9939SB222 01.760%10292002 DO 10/28/ 29-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN BROTHERS REPO 29-Oct-2002 500,024-44 99398B222 01.760%10292002 DO 10291 29-Oct-2002 0.00 FC LEHMAN GOVT SECS INC,NY 29-Oct-2002 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN CAT 2 REPO 30-Oct-2002 500,000.00 9939SC162 01.800%10/302002 DO 10/291 30-Oct-2002 -500,000.00 S LEHMAN GOVT SECS INC,NY 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN CAT 2 REPO 30-Oct-2002 25.00 99398C162 01.800%101302002 DO 1029/ 30-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN CAT 2 REPO 30-Oct-2002 500,025.00 99398CI62 01.800%10/302002 DO 1029/ 30.Oct-2002 0.00 FC LEHMAN GOUT SECS INC,NY 30-Oc1-2002 0.00 07-Nov-2002 10.29.28 Eteculive Workbench Q Mellon Trust-Sam le Report PAGE: 30 PORTFOLIO DETAIL OCS000010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LIQUID OPER-PIMCO -287.17 DREYFUS TREASURY CASH MOMT 31-Oct-2002 297.17 996085247 31.Oct-2002 -287.17 S 0.00 LIQUID OPER-PIMCO -297.17 DREYFUS TREASURY CASH MGMT 31-Oct-2002 297.17 996085247 31-Oct-2002 0.00 FC 31-Oct-2002 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN BROTHERS REPO 31-0ct-2002 500,000.00 99398EO85 01.810%10/31/2D02 DO 10/301 31-Oct-2002 -500,000.00 S LEHMAN GOVT SECS DJC,NY 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN BROTHERS REPO 31-Oct-2002 25.14 99398EO85 01.810%1 013 1/20 0 2 DO 10/301 31-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -500,000.00 LEHMAN BROTHERS REPO 31-Oct-2002 500,025.14 9939BEOSS 01.810%10/31/2002 DD 10/301 31-Oct-2002 0.00 FC LEHMAN GOUT SECS INC,NY 31.Oct-2002 0.00 LIQUID OPER-PIMCO -1,000,000.00 FEDERAL HOME LN MTG CORP DIS 31-Oct-2002 998,122.22 313397N31 MAT 11/05/2002 01-Nov-2002 -998,122.22 S SMITH BARNEY INC,NEW YORK 0.00 LIQUID OPER-PIMCO -1,000,000.00 FEDERAL HOME LN MTO CORP DIS 31.Oct-2002 1,696.67 313397N31 MAT 11/05/2002 01-Nov-2002 0.00 IS 0.00 FIXED INCOME SECURITIES 07-Nov-1001 10:29:28 Executive Workbench Q Mellon Trust-Sample Report PAGE: 31 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 5,000,000.00 COMMIT TO FUR GNMA SF MTO 19-Sep-2002 -5,212,109.39 OIN0626AS 6.500%10/15/2032 DO 10/01/ 23-Oct-2002 5,164,06150 Sc GOLDMAN SACHS&CO,NY 48,046.88 LONG TERM OPER-PIMCO -4,999,501.72 GNMA POOL 00565085 19-Sep-2002 5,211,589.96 36213UXNS 6.500%04AV2032 DO 04101/ 23.Oct-2002 .5,163.547.87 S GOLDMAN SACHS&CO,NY 49,042.09 LONG TERM OPER-PIMCO -4,999,501.72 GNMA POOL 00565095 19-Sep-2002 19.959.13 36213UXN5 6.500%04/15/2032 DO 04/01/ 23.Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO 4,999,50L72 GNMA POOL80565085 19-Sep-2002 5,231,449.09 36213UXN5 6.500%04/15/2032 DO 04/01/ 23.Od-2002 0.00 FC GOLDMAN SACHS&CO,NY 23.Oct-2002 0.00 LONG TERM OPER-PIMCO -5,000.000.00 COMMIT TO FUR FNMA SF MTO 07.Oct-2002 5,143,359.37 OIF0606A8 6.000%10/01/2032DD 10/011 15-Oct-2002 -5,100,000.00 S GOLDMAN SACHS&CO.NY 43,359.37 LONG TERM OPER-PIMCO .5,000,000.00 COMMIT TO FUR FNMA SF MTO 07-Oct-2002 5,143,359.37 0IF0606A8 6.000%10/01/2032 DO 10101/ 15-Oct-2002 0.00 FC GOLDMAN SACHS&CO,NY 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -3,000,000.00 COMMIT TO PUR FNMA SF MTO 08-Oct-2002 3,094,687.50 0IF0524A7 5.500%10/01/2017 DO 101011 21.Oct-2002 -3,063,750.00 S MERRILL LYNCH PIERCE FENNER 30,937.50 07-N.v-2001 10:29:28 EwcuBw Workbench Q Mellon Trust-Sample Report PAGE: 32 PORTFOLIO DETAIL Ocsc000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -3,000,000.00 COMMIT TO PUR FNMA SF MTG 08-Oct-2002 3,094,687.50 0IF0524A7 5.500%10/012017 DO 10/011 21.Oct-2002 0.00 FC MERRILL LYNCH PIERCE FENNER 21-Oct-2002 0.00 LONGTERM OPER-PIMCO -8,000,000.00 COMMIT TO PUR GNMA SF MTG 15-Oct-2002 9,316,250.00 OIN0626A5 6.500%10/15/2032 DO 10/01/ 23-Oct-2002 -8,262,500.00 S WARBURG DILLON READ LLC,NEW 53,750.00 LONG TERM OPER-PIMCO -8,000,000.00 COMMIT TO PUR GNMA SF MTG 15-Oct-2002 8,316,250.00 O1N0626A5 6.500%10/15/2032 DO 10/01/ 23-Oct-2002 0.00 FC WARBURG DILLON READ LLC,NEW 23-Oct-2002 0.00 LONG TERM OPER-PIMCO -868,196.99 GNMA POOLW0570519 15-Oct-2002 902,789.21 36200RYQ9 6.500%01/15/2032 DD01/0l/ 23.Oct-2002 -896,684.70 S CHASE SECURITIES,NEW YORK 6,104.51 LONG TERM OPER-PIMCO -868,196.99 GNMA POOLM0570519 15-Oct-2002 3,448.67 3620ORYQ9 6.500%01/152032DD01/0l/ 23-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -868,196.99 GNMA POOL80570519 15-Ott-2002 906,237.88 3620ORYQ9 6.5001/.01/15/2032 DO 01/01/ 23-Oct-2002 0.00 FC CHASE SECURITIES,NEW YORK 23.Oct-2002 0.00 LONG TERM OPER-PIMCO -999,900.60 GNMA POOLM0570519 15-Oct-2002 1,039,740.39 3620ORYQ9 6.500Yo01/152032DD01/0l/ 23-Oct-2002 -1,032,709.84 S CHASE SECURITIES,NEW YORK 7,030.55 07-Nov-1001 10:29..28 Executive Workbench Q Mellon Trust-Sam le Report PAGE.. 33 PORTFOLIO DETAIL OCS000010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -999,900.60 GNMA POOL 80570519 15-OU-2002 3,971.83 36200RYQ9 6.500%01/15/2032DD01/01/ 23.OU-2002 0.00 IS 0.00 TANG TERM OPER-PIMCO -999,900.60 GNMA POOL#0570519 15-0U-2002 1,043,712.22 36200RYQ9 6.500%01/152032 DD 01/01/ 23.00-2002 0.00 PC CHASE SECURITIES NEW YORK 23-0U-2002 0.00 TANG TERM OPER-PIMCO -131,703.21 GNMA POOL80565085 15-0cb2002 136,950.76 36213UXNS 6.500%04/152032 DO 04/011 23-Oct-2002 -136.024.72 S CHASE SECURITIES,NEW YORK 926.04 LONG TERM OPER-PIMCO -131,70311 GNMA POOL 80565085 15-OU-2002 523.15 36213UXN5 6.500%04/152032DD04/01/ 23-Oct-2002 0.00 IS 0.00 TANG TERM OPER-PIMCO -131,703.21 GNMA POOL 80365085 15.0U-2002 137,473.91 36213UXNS 6.300%04/15/2032 DO 04/01/ 23-0U-2002 0.00 PC CHASE SECURITIES,NEW YORK 23-0U-2002 0.00 LONG TERM OPER-PIMCO -305,993.55 FNMA POOL 00599427 16-Oet-2002 317,193.03 31387YYY3 6.000%02/012017 DD 02101/ 21.Oct-2002 -315,067.44 S MORGAN STANLEY&CO INC,NY 2,115.59 LONG TERM OPER-PIMCO -305,983.55 FNMA POOLN0598427 16-Oct-2002 1,019.95 31387YYY3 6.000%02/0 12 0 1 7 DO 02/01/ 21-Oct-2002 0.00 IS 0.00 07-No 2002 10.29,28 Erecufim Workbench Q Mellon Trust-Sample Report PAGE 34 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE DROVER COMPL DATE GAINMOSS LONG TERM OPER-PIMCO -305,983.55 FNMA POOL40598427 16-00-2002 318,202.98 31387YYY3 6.000%02/012017 DD 02/01/ 21-0ct-2002 0.00 FC MORGAN STANLEY&CO INC.NY 21-Ocb2002 0.00 LONG TERM OPER-PIMCO -3%627.12 FNMA POOL#0598427 16-On-2002 317,950.15 31387YYY3 6.000%02/012017 DO 02/01/ 21-Oct-2002 -315,730.11 S MORGAN STANLEY&CO INC,NY 2,120.04 LONG TERM OPER-PIMCO -306,627.12 FNMA POOL 90598427 16-Oct-2002 1,022.09 31387YYY3 6.000%02/012017 DO 02/01/ 21-0ct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -306,627A2 FNMA POOL90598427 16-OU-2002 319,972.24 31387YYY3 6.000'/.021012017 DO 02101/ 21-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-Oe62002 0.00 LONG TERM OPER-PIMCO -386,547.73 FNMA POOL#0580052 16-0n-2002 4K695.98 31387CL90 6.000%07/012016 DO 07/01/ 21-0ct-2002 -398,023.37 S MORGAN STANLEY&CO INC,NY 2,67261 LONG TERM OPER-PIMCO -386,547.73 FNMA POOL 90590052 16-OU-2002 1,299.49 31387CL90 6.000%07/012016 DD 071011 21-Od-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -386,547.73 FNMA POOL#0580052 16-00-2002 401,984.47 31387CL90 6.000%07/012016DD07/01/ 21-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21.Oct-2002 0.00 074 2002 10:29:28 Ece Wiw Workbench Q Mellon Trust-Sample Report PAGE: 35 PORTFOLIO DETAIL Ocsc000l0000 01.00T-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY 1D TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -387,356.05 FNMA POOL80580052 16-Oct-2002 401,533.89 31397CL90 6.000%07/012016DD07/0U 21-Oc1-2002 -399,955.69 S MORGAN STANLEY&CO INC,NY 2,679.21 LONG TERM OPER-PIMCO -397.356.05 FNMA POOL 80580052 16-Oct-2002 1,291.19 31387CL90 6.000%07/012016 DD 07/01/ 21-Oc1-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -387,356.05 FNMA POOL80580052 16.Oct-2002 402,825.08 31387CL90 6.000%07/012016DD07/01/ 21-Oct-2002 0.00 PC MORGAN STANLEY&CO INC,NY 21.Oct-2002 0.00 TANG TERM OPER-PIMCO -389,406.29 FNMA POOL80580052 16-Oct-2002 403,659.17 31387CL90 6.000%07/012016 DD 07/01/ 21.Od-2002 400,966.79 S MORGAN STANLEY&CO INC,NY 2,692.38 LONG TERM OPER-PIMCO -399,406.29 FNMA POOL M0580052 16-Oct-2002 1,298.02 31387CL90 6.000%07/012016 DD 07/0U 21.0ct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -399,406.29 FNMA POOLA0580052 16-0c42002 404,957.19 31387CL90 6.000%07/012016DD07/01/ 21-Oct-2002 0.00 PC MORGAN STANLEY&CO INC,NY 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -309,513.91 FNMA POOL80535945 16-OctQ002 319,805.90 31394WL24 6.000%05/012016 DD 04/01/ 21.Oct-2002 -317,672.91 S MORGAN STANLEY&CO INC,NY 2,133.09 07-No 2002 10:29,28 Execuaw Workbewh Q Mellon Trust-Sample Report PAGE- 36 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINILOSS LONG TERM OPER-PIMCO ,308,513.81 FNMA POOL#0535945 16-Oct-2002 1,02839 31384WL24 6.000%05/01/2016 DD 04/011 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -308,513.81 FNMA POOL#0535945 16-0ct-2002 320,834.28 31384WL24 6.000%05/012016 DO 04/01/ 21-00-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-OU-2002 0.00 LONG TERM OPER-PIMCO -310,240.57 FNMA POOL#0535945 16,00-2002 321,595.86 31384WL24 6.000%05/012016 DO 04/011 21-00-2002 -319,450.84 S MORGAN STANLEY&CO INC,NY 2,145.02 LONG TERM OPER-PIMCO -310,240.57 FNMA POOL#0535945 16-Ga-2002 1,034.14 31384WL24 6.000%0510I2016DD04/01/ 21-0ct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -310,240.57 FNMA POOL#0535945 16-00-2002 322,630.00 31394WL24 6.000%05/012016DD04/OI/ 21-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-OU-2002 0.00 LONG TERM OPER-PIMCO -336.973.72 FNMA POOL#0535945 16-Oc62002 349,307.48 31384WL24 6.000%05/012016 DD 04/011 21-OU-2002 -346,977.63 S MORGAN STANLEY&CO INC,NY 2,329.95 LONG TERM OPER-PIMCO -336,973.72 FNMA POOL#0535945 16-0c1-2002 1,123.25 31394WL24 6.000%05/012016 DD 04/011 21-Oct-2002 0.00 IS 0.00 07-No 2002 10:19.28 Eremd C Workbewh Q Mellon Trust-Sample Report PAGE, 37 PORTFOLIO DETAIL Ocsa000/0000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SNARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -336,973.72 FNMA POOL#0535945 16-Oc1-2002 350,430.73 31394WL24 6.000%05/01/2016DD04/01/ 21-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -382,043.86 FNMA POOL#0580052 16-Oct-2002 396,027.26 31387CL90 6.000%07/012016 DO 07/01/ 21-Oct-2002 -393,385.79 S MORGAN STANLEY&CO INC,NY 2,641.47 LONG TERM OPER-PIMCO -382,043.86 FNMA POOL#0580052 16-Oct-2002 1,273.48 31387CL90 6.000%07/012016DD07/01/ 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -382,043.86 FNMA POOL#0580052 16-Oct-2002 397,300.74 31387CL90 6.000%07/012016 DD 07/01/ 21-Oct-2002 0.00 PC MORGAN STANLEY&CO INC,NY 21-Ocb2002 0.00 LONG TERM OPER-PIMCO -394,177.72 FNMA POOL#0580052 16-0ct-2002 399,239.22 31387CL90 6.000%07/01/2016 DO 07/01/ 21-Oct-2002 395,583.00 S MORGAN STANLEY&CO INC,NY 2,656.22 LONG TERM OPER-PIMCO -384,177.72 FNMA POOL#0580052 I&W-2002 1,280.59 31397CL90 6.000%07/012016DD07/01/ 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -384,177.72 FNMA POOL#0580052 16-Oct-2002 399,519.81 31387CL90 6.000%07/01/2016 DO 07/01/ 21-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-Oct-2002 0.00 07-Nov-2002 10:29.28 Executive Workbench Q Mellon Trust-Sample Report PAGE. 38 PORTFOLIO DETAIL Ocsc000/0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINILOSS LONG TERM OPER-PIMCO -305,917.51 FNMA POOL90535945 16-Oct-2002 317,114.37 31384WL24 6.000%05/01/2016 DO 04/01/ 21-Oct-2002 -314,999.44 S MORGAN STANLEY&CO INC,NY 2,115.13 LONG TERM OPER-PIMCO -305,917.51 FNMA POOL#0535945 16-Oct-2002 1,019.73 31384WL24 6.000%05/01/2016 DD 04/011 21-0ct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -305,917.51 FNMA POOLN0535945 16-Oa-2002 318,134.30 31384WL24 6.000%05/012016DD04/01/ 21-Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -307,539.02 FNMA POOL#0535945 16.Oct-2002 318,795.43 31384WL24 6.000%05/012016DD04/01/ 21-Oct-2002 -316,669.09 S MORGAN STANLEY&CO INC,NY 2,126.35 LONG TERM OPER-PIMCO -307,539.02 FNMA POOL#0535945 16-Oct-2002 1,025.13 31384WL24 6.000%05/012016DD04/01/ 21-Oc1-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -307,539.02 FNMA POOL#0535945 16-Oct-2002 319,820.56 31384WL24 6.000%05/012016DD04/01/ 21.Get-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-00-2002 0.00 LONG TERM OPER-PIMCO -330,773.73 FNMA POOL80598427 16-Oct-2002 342,890.57 31387YYY3 6.0000/.02/01/2017 DO 02/01/ 21-Oa-2002 -340,593.58 S MORGAN STANLEY&CO INC,NY 2,286.99 07-Nov-1001 10.29.28 Ereculive Workbench -' Q Mellon Trust-Sample Report PAGE.- 39 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SRARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -330,773.73 FNMA POOL#0599427 16-OU-2002 1,102.58 31387YYY3 6.000%02/012017 DO 02/01/ 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -330,773.73 FNMA POOL 80598427 16-Oct-2002 343,983.15 31387YYY3 6.000%02101/2017 DD 02101/ 21-0ct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -309,342.79 FNMA POOL80598427 16-Oct-2002 320,665.22 31387YYY3 6,000%02/01/2017 DO 021011 21-OR-2002 -318,526.40 S MORGAN STANLEY&CO INC,NY 2,138.82 LONG TERM OPER-PIMCO -309,342.79 FNMA POOL N0598427 16-Oct-2002 1.031.14 31387YYY3 6.000'/e 0210 120 1 7 DO 021011 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -309,342.79 FNMA POOL#0598427 16-Oct-2002 321,696.36 31387YYY3 6.0005/o 02/012017 DO 02/01/ 21.Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -307,368.98 FNMA POOL40596626 16-Oc1-2002 318,619.16 31387WYX9 6.000%08/012016 DO 07/01/ 21.0c1-2002 -316,494.00 S MORGAN STANLEY&CO INC.NY 2,125.16 LONG TERM OPER-PIMCO -307,368.98 FNMA POOL80596626 16-OU-2002 1,024.56 31387WYX9 6.0000/.08/012016 DO 07/011 21-Oct-2002 0.00 IS 0.00 07-Now2001 I0:19.28 E- ecmim Wo kbemh Q Mellon Trust-Sample Report PAGE: 40 PORTFOLIO DETAIL OCS000010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOMDATED SHARESIPAR TRADE DATFJ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -307,368.98 FNMA POOL805%626 16-Oct-2002 319.643.72 31387WYX9 6.000%09/012016 DD 07/01/ 21.Od-2002 0.00 PC MORGAN STANLEY&CO INC,NY 21-Oct-2W2 0.00 LONG TERM OPER-PIMCO -332,153.11 FNMA POOL 00596626 16.Od-2002 344,310.43 31387WYX9 6.000%08/01/2016 DD 07/01/ 21.Od-2002 -342,013.91 S MORGAN STANLEY&CO INC,NY 2,296.52 LONG TERM OPER-PIMCO -332,153.11 FNMA POOL#0596626 16-00-2002 1,107.19 31387WYX9 6.000%09/01/2016 DD 07/0U 21-Oct-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -332,153.11 FNMA POOL80596626 16-Od-2002 345,417.61 31387WYX9 6.000%09/012016 DD 07/01/ 21-Oct-2002 0.00 PC MORGAN STANLEY&CO INC,NY 21-0d-2002 0.00 LONG TERM OPER-PIMCO -302,955.41 FNMA POOL80596626 16-Oct-2002 314,044.05 31387WYX9 6.000%08/012016DD07/01/ 21-Oct-2002 -311,949.40 S MORGAN STANLEY&CO INC,NY 2,094.65 LONG TERM OPER-PIMCO -302,935AI FNMA POOL#0596626 16.Od-2002 1,009.85 31387WYX9 6.000%08/012016 DD 071011 21-0d4002 0.00 IS 0.00 LONG TERM OPER-PIMCO -302,955.41 FNMA POOL#0596626 16.Od-2002 315,053.90 31387WYX9 6.000%08/012016 DD 07/01/ 21.0d-2002 0.00 PC MORGAN STANLEY&CO INC,NY 21-0d-2002 0.00 07-Nw2002 10:29:28 Eu=tM Wm bewh Q Mellon Trust-Sample Report PACE: 4/ PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSDLONSOLIDA7ED SHARES/PAR - TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATPI COST/ TRANSCODE BROKER COMPL DATE GAINILOSS LONG TERM OPER-PIMCO -305,491.81 FNMA POOL00596626 16.Oct-2002 316,662.92 31387WYX9 6.000%08/01t2016 DD 07/01/ 21-Oct-2002 -314,550.B0 S MORGAN STANLEY&CO INC,NY 2,112.12 LONG TERM OPER-PIMCO -305,481.61 FNMA POOL#0596626 164)d-2002 1,01827 31387WYX9 6.000%09/012016 DO 071011 21-00-2002 0.00 IS 0.00 LONG TERM OPER-PIMCO -305,481.81 FNMA POOL 00596626 I&Oa-2002 317,681.19 31387WYX9 6.000%0&1012016 DO 071011 21.Oct-2002 0.00 FC MORGAN STANLEY&CO INC,NY 21-0ct-2002 0.00 LONG TERM OPER-PIMCO -3,000,000.00 COMMIT TO PUR FNMA SF MTG 16-00-2002 3,108,867.19 0IF0604AO 6.000%10/0120/7 DD 10/01/ 21-00-2002 -3,105,000.00 S LEHMAN GOVT SECS INC,NY 3,967.19 LONG TERM OPER-PIMCO -3,000,000.00 COMMIT TO PUR FNMA SF MTG 16-00-2002 3,109,967.19 0IF0604AO 6.000%10/012017 DO 10/01/ 21.00.2002 0.00 FC LEHMAN GOVT SECS INC,NY 21-00-2002 0.00 LONG TERM OPER-PIMCO -6,000,000.00 COMMIT TO PUP,FNMA SF MTG 16.Oct-2002 6,221,484.38 0IF0604AO 6.000%10/012017 DD 10/01/ 21-Oct-2002 -6,210,000.00 S BK OF AMER NATL TR&SVGS CT 11,484.39 LONG TERM OPER-PIMCO .6,000,000.00 COMMIT TO PUR FNMA SF MTG 16-Oct-2002 6,221,494.39 0IF0604AO 6.000%10/012017DD 10/01/ 21.00-2002 0.00 FC BK OF AMER NATL TR&SVGS CT 21-00-2002 0.00 07-Nw 2002 10:29:28 Es wfw Wukbcwh Q Mellon Trust-Sample Report PAGE 41 PORTFOLIO DETAIL OcsG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SRARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO -3,000,000.00 COMMIT TO PUR FNMA SF MTG 29-Oct-2002 3,089,062.50 0IF0524B5 5.500'/11/012017 DO I I/01/ 19-Nov-2002 -3,087,187.50 S MERRILL LYNCH PIERCE FENNER 1,875.00 PRINCIPAL PAYMENTS FIXED INCOME SECURITIES LONG TERM OPER-PIMCO -2,749.10 FHLMC GROUP A78-6064 01-Sep-2002 2,749.10 31348SWZ3 6.384%01/01/2028 DO 12/01/ 01-Sep-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 32,841.50 FHLMC MULTICLASS MTG SER E3 01-Sep-2002 -32,841.50 3133TCE95 VAR RT 09/15/2032 DO 12/01/ 01-Sep-2002 32,876.49 PDC 34.99 LONG TERM OPER-PIMCO -693.26 WMP/HUNTOON PAIGE 8000-11150 01-Sep-2002 693.26 302998GE3 7.500%12/012030 DD 102119 01-Sep-2002 0.00 FC 02-Oct-2002 0.00 LONG TERM OPER-PIMCO -32,941.50 FHLMC MULTICLASS MTG SER E3 01-Sep-2002 32,841.50 3133TCE95 VAR RT 08/152032 DO 12/01/ 01-Sep-2002 32,976.49 PD -34.99 LONG TERM OPER-PIMCO -32,941.50 FHLMC MULTICLASS MTG SER E3 01-Sep-2002 32,841.50 3133TCE95 VAR RT 08/152032 DO 12101/ 01-Sep•2002 0.00 FC 16-Oct-2002 0.00 074 2002 10.29.28 &..it.Warkbewh Qji Mellon Trust-Sample Report PAGE: 43 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONGTERM OPER-PIMCO -1,450.82 GNMA POOLh0500917 01-Oct-2002 1,450.82 36210SPAO 6.000°A04/152029 DD 04/01/ 01-Oct-2002 -1,377.15 PD 73.67 LONG TERM OPER-PIMCO -1,450.92 GNMA POOL#0500917 01-Oct-2002 1,450.82 36210SPAO 6.000'/004/152029 DO 04/011 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -31.87 GNMA POOL80499153 01-Oct-2002 31.87 3621000E5 6.000%0 2/1 5 2 02 9 DD 02/01/ 01-Oct-2002 -30.25 PD 1.62 LONG TERM OPER-PIMCO -31.97 GNMA POOLM0499153 01-Oct-2002 31.87 3621000E5 6.0001/02/152029 DO 02/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -51.08 GNMA POOL80497343 01-Oct-2002 51.08 36210NP45 6.0001/e 1 2/1 5 202 8 DO 12/01/ 01-Oct-2002 48.49 PD 2.59 LONG TERM OPER-PIMCO -51.08 GNMA POOLW0497343 01-Oct-2002 51.08 36210NP45 6.0000/.12/152028 DO 12/011 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -16,509.96 CNMA POOL#0496461 01-Oct-2002 16,509.86 36210MQN4 6.0001A 01/152029 DO 01/01/ 01-Oa-2002 -15,671.47 PD 838.39 07-No 2002 10:29..28 Eteeuliw Wwkbewh Q Mellon Trust-Sample Report_ PAG£ 44 PORTFOLIO DETAIL OCSGOOOI0000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR - TRADE DATE/ AMOUNT/ SECURITY ID TRANSACr10N DESCRIMON/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LASS LONG TERM OPER-PIMCO -16,509.86 GNMA POOLN04%461 01-0d-2002 16,509.96 36210MQN4 6.0001/.01/152029DD01/OI/ 01-0d-2002 0.00 FC I5-Oct-2002 0.00 LONG TERM OPER-PIMCO -7.35 GNMA POOLN0496284 01-00-2002 7.35 36210MJ51 6.000%01/152029 DD 02/01/ 01.Oct-2002 -6.98 PD 0.37 LONG TERM OPER-PIMCO -7.35 GNMA POOLN0496284 01-0tt-2002 7.35 36210MI51 6.000%01/152029 DD 02/01/ 014)c62002 0.00 FC 15-0c62002 0.00 LONG TERM OPER-PIMCO -10,512.37 GNMA POOLN0503388 01-W-2002 10,512.37 36210VF55 6.000%03/152029DD03/01/ 01.OU-2002 -%978.34 PD 533.93 LONG TERM OPER-PIMCO -10,512.37 GNMA POOLN0503388 01Ad-2002 10,512.37 36210VF55 6.000%03/152029 DD 03/01/ 01-0d-2002 0.00 FC 15-Od-2002 0.00 LONG TERM OPER-PIMCO -892.26 GNMA POOL#0506636 01-Od-2002 89226 36210YY90 6.000%04/152029 DD 0"1/ 01-Od-2002 -846.95 PD 45.31 LONG TERM OPER-PIMCO -892.26 GNMA POOLN0506636 01.Od-2002 892.26 36210YY90 6.0000/.04/152029DD04/01/ 01-Od-2002 0.00 FC 15.Oc62002 0.00 07-No 2002 10.29:28 Executive Workbench Q Mellon Trust-Ssm le Report PAGE: 45 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GABWLOSS LONG TERM OPER-P1MCO -1,299.46 GNMA POOL#0491103 01-On-2002 1,299A6 36210FRY4 6.000%01/15/2029 DD 011011 01-0M-2002 -1,233A7 PD 65.99 LONG TERM OPER-PIMCO 4,299.46 GNMA POOL#0491103 01-0ct-2002 1,299.46 36210FRY4 6.000%01/152029 DD 01/0V 01-00-2002 0.00 FC 15-0a-2002 0.00 LONG TERM OPER-PIMCO .41.65 GNMA POOL#0483452 01-000-2002 41.65 36209WBV3 6.000%09/152028 DD 09/011 01.Oct-2002 -39.53 PD 2.12 LONG TERM OPER-PIMCO 41.65 ONMA POOL#0483452 01-Oct-2002 41.65 36209WBV3 6.0009/o 09/152028 DD 091011 01-Oct-2002 0.00 FC 15-Ott-2002 0.00 LONG TERM OPER-P1MCO -547.52 GNMA POOL#0486720 01.Oct-2002 547.52 36210AVM6 6.000%12/152028 DD 121011 01-Oct-2002 -519.72 PD 27.80 LONGTERM OPER-P1MCO -547.52 ONMA POOL#0486720 01-0ct-2002 547.52 36210AVM6 6.000Y.12/152028 DD 12/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -2,113.63 GNMA POOL#0469688 01-Oct-2002 2,113.63 36209EXR8 6.000%11/15/2028 DO I Ml/ 01-Oct-2002 -2,006.30 PD 107.33 07-No 2002 /0:29:28 &emltve Workbewh Q Mellon Trust-Sample Report PACE: 46 PORTFOLIO DETAIL OCS000010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAINILOSS LONG TERM OPER-PIMCO -2,113.63 GNMA POOL80469688 01-Oct-2002 2,113.63 36209EXR8 6.000%11/15/2028 DD 11/011 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -10,860.33 GNMA POOLND465546 01-Oct-2002 10,860.33 36209AET3 6.GM%08/15/2029 DD 08/01/ 01-Oct-2002 -10,308.93 PD 551.50 LONG TERM OPER-PIMCO -10,860.33 GNMA POOL80465546 01-Oct-2002 10,860.33 36209AET3 6.000%08/152028DD08/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -43,618.34 GNMA POOL80468339 01-Oct-2002 43,618.34 36209DHQO 6.000%08/152028 DO 08/01/ 01-0ct-2002 41,403.35 PD 2,214.99 LONG TERM OPER-PIMCO -43,618.34 GNMA POOL#0468339 01-00-2002 43,619.34 36209DHQO 6.000^h 0 9/1 512 0 2 8 DO 08/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -57.84 GNMA POOLN0468330 01-Oct-2002 57.84 36209DHF4 6.000%05/15/2028 DO 05/01/ 01-Oct-2002 -54.90 PD 2.94 LONG TERM OPER-PIMCO -57.84 GNMA POOLW0468330 01-Oct-2002 57.84 36209DHF4 6.000%05/152028 DD 051011 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 07-Nw-2002 10.29:28 Etteutive W6rkbewh - Q Mellon Trust-Sample Report PAGE. 47 PORTFOLIO DETAIL OCSG000/0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SRARESMAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -63.04 GNMA POOL80467279 01-Oct-2002 63.04 36209CCQ7 6.000°610/15/2028DD 10/01/ 01-Oct-2002 -59.84 PD 3.20 LONG TERM OPER-PIMCO -63.04 GNMA POOL80467279 01-Oct-2002 63.04 36209CCQ7 6.000%10/15/2023 DD 10/011 01-0c1-2002 0.00 PC 15-00-2002 0.00 LONG TERM OPER-PIMCO -788.60 GNMA POOL80457814 01-Oo-2002 788.60 36208QSB3 6.000%10/15/2028 DO 10/01/ 01-Oct-2002 -748.55 PD 40.05 LONG TERM OPER-PIMCO -738.60 GNMA POOL#0457814 01-Oct-2002 789.60 36208QSB3 6.000%10/15/2028 DO 10/01/ 01-Oa-2002 0.00 PC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -52.72 GNMA POOLN0438057 01-Oct-2002 52.72 36207PTN9 6.000%05/15/2028 DD 05/01/ 01-0ct-2002 -50.04 PD 2.68 LONG TERM OPER-PIMCO -52.72 GNMA POOL80438057 01-Oct-2002 52.72 36207PTN9 6.000%05/15/2028 DD 051011 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -32,344.86 FHLMC GROUP 8G5-0476 01-Oa-2002 32,344.86 3128DDQ55 7.000%02/01/2003 DO 02/011 01-Oa-2002 -32,851.29 PD -506.43 07-Nw-2002 10.29.28 Erecveive Wwkb.M Q Mellon Trust-Sample Report PACE: 48 PORTFOLIO DETAIL OCSGOW10000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRRTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAINRA)SS LONG TERM OPER-PIMCO -32,344.86 FHLMC GROUP#05-0476 01-0ct-2002 32,344.86 3128DDQ55 7.0001%02/01/2003 DO OW01/ OlOct-2002 0.00 PC 15-OM-2002 0.00 LONG TERM OPER-PIMCO -26,763.85 FHLMC GROUP#G4-0353 01-Oct-2002 26,763.85 3128DBMA2 7.500%10/012004 DO 03/01/ 01An-2002 -27,44131 PD -677A6 LONG TERM OPER-PIMCO -26,763.85 FHLMC GROUP#04-0353 01-0c62002 26,763.85 3128DBMA2 7.500%101012004 DO 03/011 01-0ct-2002 0.00 PC 15-0n-2002 0.00 LONG TERM OPER-PIMCO -19,064.23 GNMA 11 POOL#0080395 01-00-2002 19,064.23 36225CNM4 VAR RT 0420203ODD04/01/ 01-Od-2002 -18,891.46 PD 172.77 TANG TERM OPER-PIMCO -19,064.23 GNMA 11 POOL#0080395 01-Oct-2002 19,064.23 36225CNM4 VAR RT 04202030 DD 04/011 01-Oct-2002 0.00 FC 21-0ct-2002 0.00 LONG TERM OPER-PIMCO -14,984.48 GNMA It POOL#0003109 01.Oct-2002 14,884.48 36202DN23 7.500%07202031 DO 07/011 01.Oct-2002 -15,684.52 PD -800.04 LONGTERM OPER-PIMCO -14,894.48 GNMA 11 POOL 00003109 01-Oa-2002 14,984.49 36202DN23 7.500%07202031 DO 07/011 01-Oct-2002 0.00 FC 21-Oct-2002 0.00 07-No,2002 10..29:28 aemu Wti kb..k Q Mellon Trust-Sample Report PAGE.' 49 PORTFOLIO DETAIL ocsc000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -101,757.40 GNMA POOL#0569358 01-Oct-2002 101,757.40 362000QK3 6.500%04/152032 DO 04/011 01-Oct-2002 -104,142.34 PD -2,384.94 LONG TERM OPER-PIMCO -101,757.40 GNMA POOL#0569358 01-Oct-2002 101,757.40 362000QK3 6.500%04/15/2032 DO 04/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -1,173.84 GNMA POOL#0465555 01-Oct-2002 1,173.84 36209AE49 6.000%09/15/2028 DD 09/01/ 01-Oct-2002 -1,114.23 PD 59.61 LONG TERM OPER-PIMCO -1,173.84 ONMA POOL#0465555 01-Oct-2002 1,173.94 36209AE48 6.000%09/15/2028DD09/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -913.59 GNMA POOL#0467286 01-Oct-2002 913.59 36209CCX2 6.000%10/152029 DO 10/011 01-Oct-2002 -867.20 PD 46.39 LONG TERM OPER-PIMCO -913.59 GNMA POOL40467286 01-Oct-2002 913.59 36209CCX2 6.000^/e 10/152028 DO 10/01/ 01-Oct-2002 0.00 FC 15-Oct-2002 0.00 LONG TERM OPER-PIMCO -59,510.74 GNMA 11 POOL#0003152 O1-Oct-2002 59,510.74 36202DQD6 7.500°/a 10202031 DO 10/01/ 01-Oct-2002 -62,709.44 PD -3,198.70 07-N.w2002 10:29.28 Ececuti.Wwk&.h Q Mellon Trust-Sample Report PAGE: 50 PORTFOLIO DETAIL OCS000010000 01-OCT-2002 -31-OCT-2002 OCED-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -59,510.74 GNMA II POOL 40003152 01-Oc1-2002 59,510.74 36202DQD6 7.500%10/20/2031 DO 10/01/ 01-Oct-2002 0.00 FC 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -13,216.73 GNMA 11 POOL#0080023 01-Oc62002 13,216.73 36225CAZ9 VAR RT 1220/2026 DID 12/0119 01-Oct-2002 -13,435.63 PD -219.90 LONG TERM OPER-PIMCO -13,216.73 GNMA 11 POOL#0080023 01-Oct-2002 13,216.73 36225CAZ9 VAR RT 12/20/2026 DO 12/01/9 01-Oct-2002 0.00 PC 21-Oct-2002 0.00 LONG TERM OPER-PIMCO -23,724.36 GNMA 11 POOL e080088M 01-Oct-2002 23,724.36 36225CC20 7.375%0620/2027 DO 06/01/ 01-Oc1-2002 -24,243.33 PD -518.97 LONG TERM OPER-PIMCO -23,724.36 GNMA 11 POOL 8080088M 01-Oct-2002 23,724.36 36225CC20 7.375%06202027 DO 06/01/ 01-Oct-2002 0.00 PC 21-Oo-2002 0.00 LONG TERM OPER-PIMCO -122,785.41 GNMA 11 POOL 8080408X 01-Oct-2002 122,785.41 36225CN28 6.500%05202030 DO 05/01/ 01-00-2002 -121,538.37 PD 1,247.04 LONG TERM OPER-PIMCO -122,785.41 GNMA II POOL M080408X 01-Oct-2002 122,785.41 36225CN28 6.500%05/20/2030 DO 051011 01-Oct-2002 0.00 PC 21-Oct-2002 0.00 07-Now2001 10:19:18 Executive WNkbewh Q Mellon T1vet-Sample Report PAGE- 51 PORTFOLIO DETAIL OCSG00010W0 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESMAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAIN/LOSS LONG TERM OPER-PIMCO -32,638.50 FHLMC MULTICLASS MTG SER E3 01-Oct-2002 32,638.50 3133TCE95 VAR RT 08/152032 DO 12/01/ 01.0ct-2002 -32.673.27 PD -34.77 LONG TERM OPER-PIMCO -5,213.40 FHLMC GROUP#78-6064 01-Oct-2002 5,213.40 31348SWZ3 6.384%01/012028 DO 12/01/ 01.Oct-2002 -5,096.32 PD 127.08 LONG TERM OPER-PIMCO -2,118.31 GREYSTONE SVCNG CORP F14A#95 01-Oct-2002 2,119.31 39810#AE4 7.430%06/012003 DO 0229/O 01-Oct-2002 -2,087.36 PD 30.95 LONG TERM OPER-PIMCO -2,118.31 GREYSTONE SVCNG CORP FHA#95 01-Oet-2002 2,119.31 39810#AE4 7.430%06/012003 DD 0229/0 01.0U-2002 0.00 FC 28-Oct-2002 0.00 LONG TERM OPER-PIMCO -698.10 WMP/HUNTOON PAIGE#000-11150 01-Oct-2002 698.10 302998GE3 7.500%12/012030 DD 1021/9 01.Oct-2002 •692.94 PD 15.16 TANG TERM OPER-PIMCO -31,162.75 PREMIER AUTO TR 99-3 CL A4 08-Oct-2002 31,162.75 74046RFW6 6A30%03/082004 DD 062119 08-Oct-2002 -32,029.46 PD -866.71 LONG TERM OPER-PIMCO -31.162.75 PREMIER AUTO TR 99.3 CL A4 08.0n-2002 31,16175 74046RFW6 6.430%03/082004 DD 0621/9 08-Oa-2002 0.00 FC 08-Oa-2002 0.00 074 2002 10:29:28 Ema!/vs wa4bex# Q Mellon Trust-Sample Report PACE: S2 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATFJ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 45,823.93 DISTRIBUTION FML 99-1 CL A4 15-Oct-2002 45,823.93 25475MAD6 5.840%10/172011 DO 03/18/ 15-Oct-2002 46,793.37 PD -959.44 LONG TERM OPER-PIMCO 45,923.93 DISTRIBUTION FML 99-1 CL A4 15.Oct-2002 45,823.93 25475MAD6 5.840% 10/17/2011 DD 03/1 R/ 15.Oct-2002 0.00 FC 16-Oct-2002 0.00 LONG TERM OPER-PIMCO 45,601.33 GNMA GTD REMIC TR 2000-9 FH 16-0a-2002 45,601.33 38371-14NX9 VAR RT 02/162030 16-Oct-2002 45,601.33 PD 0.00 LONG TERM OPER-PIMCO 45,601.33 GNMA GTD REMIC TR 2000-9 FH 16-Oet-2002 45,601.33 3837H4NX9 VAR RT 02/162030 16-Oct-2002 0.00 FC 16-Oct-2002 0.00 MATURITIES CASH&CASH EQUIVALENTS LIQUID OPER-PIMCO -800,000.00 DUPONT DENEMOUR DISC 04-Oct-2002 798,394.67 26354BK43 10/042002 04-Oct-2002 -799,394.67 MT 04-Oct-2002 0.00 LIQUID OPER-PIMCO -1,500,000.00 USAA CAP CORP DISC 04-Oct-2002 1,498,414.17 90328BK42 10/042002 04-Oct-2002 -1,499,414.17 MT 04-Oct-2002 0.00 07-Now2002 10.29:28 Etecotiw Workbench Q Mellon Trust-Sample Report PAGE.. 53 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOL/DATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LIQUID OPER-PIMCO -1,500,000.00 FEDERAL HOME LN MTG CORP DIS 08-Oct-2002 1,496,631.25 313397J77 MAT 100/2002 OS-Oct-2002 -1,4%.631.25 MT 08-Oct-2002 0.00 LIQUID OPER-PIMCO -800,000.00 KRAFT FOODS INC DISC 18-Oct-2002 799,46L78 5007MIKJI 10/182002 18-0ct-2002 -799,461.78 MT 18-Oct-2002 0.00 FIXED INCOME SECURITIES LIQUID OPER-PIMCO -200,000.00 FED FARM CR BK CONS SYS MTN 07-Oct-2002 200,000.00 31331RD44 4.820%10/07/2002 DD 10/07/ 07-Oct-2002 -203,994.00 MT 07-0n-2002 -3,994.00 INTEREST LIQUID OPER-PIMCO 0.00 DREYFUS TREASURY CASH MGMT 01-Oct-2002 2,621.95 996095247 01-Oct-2002 0.00 IT 01-Oct2002 0.00 LONG TERM OPER-PIMCO 0.00 BSDT-LATE MONEY DEPOSIT ACCT 01-Oct-2002 0.08 996097094 01-Ott-2002 0.00 IT 01-Oc1-2002 0.00 LONG TERM OPER-PIMCO 5,000,000.00 PHILIP MORRIS COS INC NTS 01.0cF2002 187,500.00 718154CH8 7.500%04/01/20D4 DD 04/01/ 01.Oct-2002 0.00 IT 01-Oct-2002 0.00 07-Nov-2002 10.29.28 Executive Workbench Q Mellon Trust-Sample Report PAGE. 54 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002 -31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 0.00 DREYFUS TREASURY CASH MGMT 01-Oct-2002 13,843.93 996085247 01-Oct-2002 0.00 IT 01-Oct-2BB2 0.00 LONG TERM OPER-PIMCO 693.26 WMP/HUNTOON PAIGE p000-11150 02-Oct-2002 5,985.07 302998GE3 7,500%12/01/2030 DO 10/21/9 01-Sep-2002 0.00 IT 02-Oct-2002 0.00 LIQUID OPER-PIMCO 800,000.00 DU PONT DE NEMOUR DISC 04-Oct-2002 1,605.33 26354BK43 10/04/2002 04-Oct-2002 0.00 IT 04-Ou-2002 0.00 LIQUID OPER-PIMCO 1,500,000.00 USAA CAP CORP DISC 04-Oct-2002 1,585.83 90328BK42 10/04/2002 04-Oc1-2002 0.00 IT 04-Oct-2002 0.00 LIQUID OPER-PIMCO 200,000.00 FED FARM CR BK CONS SYS MTN 07-Oct-2002 4,820.00 31331RD44 4.820%10/07/2002 DD 101071 07-Oct-2002 0.00 IT 07.Oct-2002 0.00 LIQUID OPER-PIMCO 1,500,000.00 FEDERAL HOME LN MTG CORP DIS 08-Oct-2002 3,369.75 313397J77 MAT 10/09/2002 08-Oct-2002 0.00 IT 08-Oct-2002 0.00 LONG TERM OPER-PIMCO 31,162.75 PREMIER AUTO TR 99-3 CL A-4 08.Oct-2002 1,666.24 74046RFW6 6.430%03/09/2004 DO 06/21/9 08-Oct-2002 0.00 IT 08-Oct-2002 0.00 07-Now2001 10.29.28 Execulm Workbench Q Me11oD Trust-Sample Report PAGE., 55 PORTFOLIO DETAIL Ocs0000/0000 01-OCT-2002-31-OCT-2002 =&CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LIQUID OPER-PIMCO 600,000.00 BEAR STEARNS COS INC 15-Oct-2002 20,250.00 073902AHI 6.750%0411512003 15-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 2,000,000.00 BEAR STEARNS COS INC 15-Oct-2002 67,500.00 073902AHI 6.750%04115/2003 15-Oct-2002 0.00 IT 15-Oct-2002 0.00 LIQUID OPER-PIMCO 505,000.00 BANC ONE MILW NA SUB NTS 15-Oct-2002 16,728.13 064216AA2 6,625%04/15/2003 DO 041M 15-Oct-2002 0.00 IT 15-Oo-2002 0.00 LIQUID OPER-PIMCO 1,000,000.00 PUBLIC SVC CO OF CO 15-Oct-2002 30,000.00 744448B19 6.000%04/132003 DD 04/20/9 1S-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 547.52 GNMA POOL80486720 15-Oct-2002 93.10 36210AVM6 6.000%17J1512028 DD 12/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 1,299.46 GNMA POOL40491103 15-0a-2002 1,034.75 36210FRY4 6.000%01/152029DD01/01/ 01-Oa-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 7.35 GNMA POOLs0496284 15-Oct-2002 29.89 36210M151 6.000%01/15/2029 DO 02/011 01.Oct-2002 - 0.00 IT 15-Oct-2002 0.00 07-A( v 2002 /0:19.28 FmcuOve Workbench Q Mellon Trust-Sample Report PAGE..- 56 PORTFOLIO DETAIL OCSG0o0I0o0o 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAINILOSS LONG TERM OPER-PIMCO 16,509.96 GNMA POOLR0496461 15-Oct-2002 3,871.63 36210MQN4 6.0000/.01/15/2029 DO 011011 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 51.08 GNMA POOL#0497343 15-Oct-2002 192.21 36210NP45 6.000%12/15/2028 DO 12/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 26,763.85 FHLMC GROUP 404-0353 15-Oct-2002 2,025.85 3128DBMA2 7.500%10/01/2004 DO 03/01/ 01-Oct-2002 0.00 IT 15-0tt-2002 0.00 LONG TERM OPER-PIMCO 31.87 GNMA POOL 80499153 15-Oa-2002 113.45 3621000E5 6.000%02/15/2029DD02/01/ 01-Oct-2002 0.00 IT 15-Ga-2002 0.00 LONG TERM OPER-PIMCO 32,344.86 FHLMC GROUP 8G5-0476 15-Oct-2002 3,477.90 3128DDQ55 7.000%02/01/2003 DD 02/01/ 01-Oct-2002 0.00 IT 15.Oct-2002 0.00 LONG TERM OPER-PIMCO 1,450.82 GNMA POOL 80500917 15-Oa-2002 100.33 36210SPA0 6.000%04/15/2029 DD 04/01/ 01-0ct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 10,512.37 GNMA PGOLN0503388 15-Oct-2002 3,463.48 36210VF55 6.000%0 3/1 51202 9DD03/01/ 01.Oct-2002 0.00 1T I S-Oct-2002 0.00 07-No 2002 10.29:28 &ecuaw Workbeuh Q Mellon Trust-Sample Report PAGE.. 57 PORTFOLIO DETAIL Ocsc000l0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 892.26 GNMA POOLM0506636 15-Oct-2002 290.88 36210YY90 6.0000/04/15/2029 DD 04/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 2,749.10 FHLMC GROUP VM064 15-Oct-2002 664.18 31348SWZ3 6.384%0 1/0 112 0 2 8 DO 12/01/ 01-Sep-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 52.72 ONMA POOL 80438057 15-Oct-2002 204.44 36207PTN9 6000%05/15/2028 DD 051011 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 788.60 GNMA POOL#0457814 15.Oct-2002 362.60 36208QSB3 6.000'/.10/15/2028 DD 10/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 10,860.33 GNMA POOL 90465546 15-Oct-2002 4,072.55 36209AET3 6.0001%08/15/2028 DO 08/0U 01.Oct-2002 0.00 1T 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 1,173.84 ONMA POOLN0465555 15-Oc1-2002 3,809.59 36209AE48 6.000%09/152028 DD 09/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 63.04 GNMA POOL80467279 15.Oct-2002 207.12 36209CCQ7 6.000%10/15/2028 DD 10/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 07-Now2002 10.29.28 E:ec.dw Wvkbewh Q Mellon Trust-Sample Report PAGE' 58 PORTFOLIO DETAIL OCSG00010000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANSCODE BROKER COMPLDATE GAINILOSS LONG TERM OPER-PIMCO 913.59 GNMA POOL#0467286 15-Oct-2002 3,398.90 36209CCX2 6.000%10/15/2028 DO 10/011 01-00-2002 0.00 IT 15-0ct-2002 0.00 LONG TERM OPER-PIMCO 57.94 GNMA POOL#0468330 15-OU-2002 170.34 36209DHF4 6.000%05/152028 DD 05/01/ 01-Oct-2002 0.00 IT 15-W-2002 0.00 LONG TERM OPER-P1MCO 43,619.34 GNMA POOL#0468339 15-0d-2002 3,999.71 36209DHQO 6.000%08/152028DDOB/01/ 01-On-2002 0.00 IT 15-0ct-2002 0.00 LONG TERM OPER-PIMCO 2,113.63 GNMA POOL 90469698 15-Oa-2002 181.13 36209EXR8 6.000%11/152028 DD 11/01/ 01-0c1-2002 0.00 IT 15-0ct-2002 0.00 LONG TERM OPER-PIMCO 41.65 GNMA POOL#0483452 15-0ct-2002 160.64 36209WEV3 6.000%09/152028 DD 09/01/ 01-0ct-2002 0.00 IT 15-0ct-2002 0.00 LONG TERM OPER-PIMCO 101,757.40 GNMA POOL#0569358 15-On-2002 18,318.77 362000QK3 6.500%04/l5M32 DD 04/01/ 01-Oct-2002 0.00 IT 15-Oct-2002 0.00 LONG TERM OPER-PIMCO 45,601.33 GNMA GTD REMIC TR 2000.9 FH 16-00-2002 2,318.95 3837HINX9 VAR RT 02/162030 16-00-2002 0.00 IT 16-00-2002 0.00 07-No 2002 10.29:18 Ereeufiw WW/.^ h Q Mellon Trust-Sample Report PAGE, 59 PORTFOLIO DETAIL OCSG000/0000 01-OCT-2002-31-OCT-2002 OCSD-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY 1D TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GA04/LOSS LONG TERM OPER-PIMCO 45,823.93 DISTRIBUTION FINL 99-1 CL A4 16.Oct-2002 2,401.93 25475MAD6 5.840%10/172011 DD031181 15.Oct-2002 O.OD IT 16.Oct-2002 0.00 LONG TERM OPER-PIMCO 32,941.50 FHLMC MULTICLASS MTG SEE E3 16-Oct-2002 6,477.98 3133TCE95 VAR RT 09/152032 DO 12/01/ 01-Sep2002 0.00 IT 16-Oct-2002 0.00 LONG TERM OPER-PIMCO 13,997.77 FHLMC MULTICLASS CTF SEE 162 17-Od-2002 13,997.77 3133T37A4 6.000%11/152023 DO I IOU/9 01-Oct-2002 0.00 IT 17-0d-2002 0.00 LIQUID OPER-PIMCO 800,000.00 KRAFT FOODS INC DISC 18-Od-2002 538.22 5007M1KI1 10/182002 1"0-2002 0.00 IT I8-Oct-2002 0.00 LONG TERM OPER-PIMCO 14,884.48 GNMA U POOL#0003109 21-00-2002 1,249.88 36202DN23 7.500%07202031 DO 07/011 01.00-2002 0.00 1T 21-0d-2002 0.00 LONG TERM OPER-PIMCO 59,510.74 GNMA 11 POOL#0003152 21-Oct-2002 6,249,38 36202DQD6 7.5000/.10202031 DO 10/01/ 01.0ct.2002 0.00 IT 21-Oc1-2002 0.00 LONG TERM OPER-PIMCO 13,216.73 GNMA II POOL 80080D23 21-0d-2002 2,578.54 36225CAZ9 VAR ITT 1220/2026 DO 1210119 01-00.2002 0,00 IT 21-Od-2002 0.00 074ov-2002 10,29.28 Eeecutive Workbench Q Mellon Trust-Sample Report PAGE. 60 PORTFOLIO DETAIL GCS000010000 01-OCT-2002-31-OCT-2002 GG9D-CONSOLIDATED SHARES/PAR TRADE DATE/ AMOUNT/ SECURITY ID TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIN/LOSS LONG TERM OPER-PIMCO 23,724.36 GNMA II POOL M080088M 21.Oct-2002 3,165.99 36225CC20 7.375%0620/2027 DO 06101/ 01-Oct-2002 0.00 IT 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 122,785.41 GNMA II POOL N080408X 21-0M-2002 17,251.92 36225CN28 6.500%05/20/2030 DO 051011 01-Oct-2002 0.00 IT 21-Oc1-2002 0.00 LONG TERM OPER-PIMCO 19,064.23 GNMA 11 POOL 0080395 21-Oct-2002 1,973.57 36225CNM4 VAR RT 04202030 DD 04/01/ 01-Oct-2002 0.00 IT 21-Oct-2002 0.00 LONG TERM OPER-PIMCO 0.00 FHLMC MULTICLASS CTF TI I A6 25-Oct-2002 10,833.33 3133TDPV2 6.500%09/252018 01-Oo-2002 0.00 IT 25-Oa-2002 0.00 LONG TERM OPER-PIMCO 1,000,000.00 SALOMON SB HLDGS MTN 2Wct-2002 5,251.46 79548EEES VAR RT 0428/2003 DO 0428/ 28-Oct-2002 0.00 IT 28-Oct-2002 0.00 LONG TERM OPER-PIMCO 2,119.31 GREYSTONE SVCNG CORP FHA k95 28-Oct-2002 7,491.95 39810MAE4 7.430%06/012003 DO 02/29/0 01.Oc1.2002 0.00 1T 28-Oa-2002 0.00 LIQUID OPER-PIMCO 0.00 SHORT TERM FDS MT ADJ 31-Oct-2002 -287.17 990000P14 NET OF OVERNIGHT INTEREST 31-Oct-2002 0.00 CW 31-Oct-2002 0.00 07-N.v 20 1 /0:29:18 &x .me Workbench' Q Mellon Trost-Sample Report PAGE 6/ PORTFOLIO DETAIL OCS0000/0000 01-OCT-2002-31-OCT-2002 OCSO-CONSOLIDATED SHARESIPAR TRADE DATE/ AMOUNT/ SECURITY m TRANSACTION DESCRIPTION/ SETTL DATE/ COST/ TRANS CODE BROKER COMPL DATE GAIKILOSS LONG TERM OPER-PIMCO 0.00 US TREASURY INFLATION INDEX 31-Oct-2002 85,330.00 9128272MD 3.375%01/152007 DD 01/151 0.00 CD 31-Oct-2002 0.00 LONG TERM OPER-PIMCO 0.00 US TREASURY INFLATION INDEX 31-Oct-2002 20,106.00 9129274YS 3.875%01/152009 DO 01115/ 0.00 CD 31-Oct-2002 0.00 074 2002 /0:29.28 &emfh.Wwkbencb FAHR COMMITTEE MeletinggDaLe T 5d.ofDi sAGENDA REPORT Item Number Item Number FAHR02-99 14 d Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: QUARTERLY INVESTMENT MANAGEMENT PROGRAM REPORT FOR THE PERIOD JULY 1, 2002 THROUGH SEPTEMBER 30, 2002 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period July 1, 2002 through September 30, 2002. SUMMARY Section 15.0 of the District's Investment Policy includes monthly and quarterly reporting requirements for the District's two investment portfolios. These two funds, the "Liquid Operating Monies," and the "Long-Term Operating Monies" are managed by PIMCO, the District's external money manager. The ongoing monitoring of the District's investment program by staff and Callan Associates, the District's independent investment advisor, indicates that the District's investments are in compliance with the Districts adopted Investment Policy and the California Govemment Code, and that overall performance has tracked with benchmark indices. In addition, sufficient liquidity and anticipated revenues are available for the District to meet budgeted expenditures for the next six months. The District's portfolios do not include any reverse repurchase agreements or derivative securities. PROJECTICONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Une item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) c 1.9.1.1,"da0.16 A,N" Re..QO02B IdA,.Repalll IOZ0dm 11(dl 0.1e1y mys,Ren,MpRr.att R—" d stone Page 1 ADDITIONAL INFORMATION Performance Reports The Quarterly Strategy Review, prepared by PIMCO, and the Investment Measurement Service Quarterly Review, prepared by Callan Associates, are attached for reference. Also attached are Long-Term and Liquid Operating Monies Portfolio Characteristics Charts that depict the sector diversification and credit quality of the Districts portfolios, as of June 30, 2002 and September 30, 2002. The Liquid Operating Monies portfolio, with an average maturity of 90 days, consists entirely of cash equivalent investments such as U.S. Treasuries and corporate discount notes. Portfolio Performance Summary The following table presents a performance summary of the Districts portfolios as compared to their benchmarks for the period July 1 through September 30, 2002. Porifolio Performance Summary Quarter Ended September 30,2002 Liquid Operating Monies %) Long-Term Operating Monies(%) Total Rate Total Rate of Return Senchmarkln Return Benchmark" 3 Months 0.43 OA3 3.43 3.44 6 Months 1.05 0.87 640 6.59 9 Months 1.55 1.31 6.62 6.48 12 Months 2.25 1.97 6.93 6. Since inception 30 Sept 95 5.11 4.71 6.93 6. Market Value S44.IM 17. Average Quality -AAA- -AAK Current Yield(%) 3.5 5.7 Estimated Yield to Maturity(%) 1.9 2.7 Quarterly Deposits(wMdravak) .OM 60.0)M Estimated Annual Income 41.M 16.4M (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/GovL 1-5 Year Bond Index Market Recap PIMCO reported that Treasury Bonds gained during the third quarter as investors sought a safe haven amid anxiety about sluggish global growth, the integrity of corporate accounting and governance practices and a potential U.S. war with Iraq. Treasury yields fell as much as 147 basis points, with the 10-year yield plunging to 3.59 percent, its lowest level in more than 40 years. Fueled by the Treasury rally, the broad U.S. bond market, represented by Lehman Aggregate Bond Index, returned 4.58 percent while riskier assets such as stocks and high yield debt continued to struggle. Growth in Europe was practically non-existent and Japan's economy remained moribund in the third quarter. That left U.S. consumers, bolstered by the lowest G"xy.Elal V`AHmIFAHR2W21N2 ApenEa Rep W-99.Ous Ml Inwb 1M,naE Rehs•0. azasa Page 2 a mortgage rates in three decades, zero interest rate car loans and rising real wages, as the only significant source of demand anywhere in the world. Concern about a so- called "double dip" recession in the U.S. therefore centered on the risk that weakness in the corporate sector would infect consumer confidence and discourage spending. While unemployment remained relatively low at just under 6 percent, applications for jobless claims climbed as companies laid off worker to trim costs and boost cash flow. Such efforts by companies to rehabilitate their credit quality did little to reassure corporate bond investors. The corporate bond market virtually shut down during July, recovered in August but then had another difficult month in September. A stream of bad news from high profile issuers reinforced risk aversion among lenders already bruised by accounting scandals. Negatives included the bankruptcy of U.S. Airways, a rating downgrade at major telecom lender J.P. Morgan Chase, a multi-billion dollar default by Conseco and the potential for energy pipeline firm El Paso to face penalties tied to the California energy crisis. Treasuries continued their outperformance from the prior quarter as the appeal of high quality, liquid assets proved irresistible. The following is a summary of fixed income sector performance: • Mortgages trailed Treasuries nominally and underperformed modestly on a like- duration basis, but held up better than corporates. The decline in Treasury yields pushed mortgage rates down as well, with current coupon FNMA's hitting an all- time low of 5.35 percent. However, lower mortgage rates sparked a surge in prepayments and market volatility, driving yield premiums relative to Treasuries about 70 basis points wider than their tightest levels in the prior quarter. GNMAs, explicitly backed by the U.S. Government, outperformed their conventional counterparts. Less prepayment sensitive lower coupon mortgages outpaced higher coupons. • As noted, corporates lagged well behind Treasuries. The high-grade sector posted a positive absolute return, but high yield bonds, heavily weighted with struggling telecom and energy/pipeline credits, suffered a loss for the quarter. • Treasuries outpaced other developed markets as U.S. rates fell as much as 60 basis points more than rates in Germany and the U.K. The sharper fall in U.S. rates stemmed from Treasuries' appeal as a safe haven and the view among some investors that the U.S. recovery would slow down. Portfolio Results The Long-Tenn portfolio that PIMCO manages on behalf of the District turned in a 3.47 percent return overthe quarter, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 3 basis points. This portfolio's performance was due in part to the following factors: • Increasing duration during the quarter was positive for returns as rates fell; GLp.EIaNXMaYAMMFAIIPMOZR00I/gerW Fe�M1SMI.99.Q0�MY hn'lSlnenl M.B^e Ett n,„,w: ermsa Page 3 A broader-than-index yield curve structure was slightly • y' g y positive as yields fell most in g five and 10-year maturities tat are outside the benchmark; • Emphasis on low duration mortgages was negative as this sector under-performed Treasuries on a like-duration basis; • A corporate underweight was positive, but security selection of telecom and energy/pipeline issues hurt returns amid concern about weak profits and credit rating downgrades; • Modest holdings of real return bonds helped returns, outperforming comparable Treasuries as real yields fell. The Liquid portfolio that PIMCO manages on behalf of the District turned in a 0,47 percent return over the quarter, outperforming the three-month Treasury Bill Index by 4 basis points. This portfolio's performance was due in part to the following factors: • Near-index duration was neutral for returns as interest rates fell during the quarter; • Corporate exposure, especially telecom and energy/pipeline holdings, continued to detract from returns amid concern about weak profits and credit rating downgrades; • Holdings of high quality commercial paper and agency discount notes contributed to returns. Market Outlook PIMCO believes deflation will pose a greater risk to the global economy than inflation over the next year, as excess capacity restricts companies' pricing power while corporate and consumer debt levels remain high. Helping avert deflation in the U.S. will be the consumer/household sector, which will hold fast while the battered business sector heals. The modest U.S. recovery from 2001's recession will thus be sustained over the next year, with real GDP growth of 2.5 to 3 percent. Interest rates will be range-bound as the tepid recovery restrains upward rate pressure. The U.S. will drive global demand, with little help from weaker economies in Europe, Japan and the emerging markets. Key elements of PIMCO's cyclical forecast include: • Consumption will be sustained by housing wealth and homeowners' ability to monetize it, at least over a cyclical time frame. While the benevolent forces fueling the housing boom - low mortgage rates and easy access to refinancing/cash takeouts— have their limits and cannot last indefinitely, they will hold up long enough to support the ongoing rehabilitation of the U.S. corporate sector; • Corporate healing is progressing, though not yet complete. Layoffs, sharp cuts in business investment and inventory liquidation have helped repair balance sheets and narrow the financing gap, or the difference between companies' internal cash flow and their capital spending. The corporate sector will be less of a drag on growth over the next several months as companies temper their retrenchment; 6.Wp .'A.nd*TMaBAHPZlp2 2AWe a..wmsa.a.nanr InmN tMm Aft wawa:&MG Page 4 • The biggest risk, and a potential spark for deflation, is that corporations could prolong their retrenchment, spreading an "infectious thrift" into the consumer sector. Economic policymaking, especially by the Federal Reserve, will mitigate this risk. The Fed will not take back its substantial easing of the past year and will cut the federal funds rate If need be to sustain the recovery. U.S. fiscal policy will remain stimulative with existing tax cuts and deficit spending; • The wildcard is a potential war with Iraq, which would initially drag down growth via a negative shock to business and consumer confidence. The Fed would offset this deflationary effect as much as possible. • Europe will flirt with a "double dip" recession as its corporations are only beginning to retrench. Europe is also plagued by weak banks and insurance companies. Stagnation in Japan will continue, but its abundant trade surpluses and currency reserves will help it muddle along. PIMCO's Overall Strategy PIMCO will target duration near the index and use yield-enhancing strategies to add value since they foresee only modest shifts in rates. One such strategy is a focus on intermediate maturities, which also offers the potential for gains by "rolling down" the steep yield curve. The gains occur because issues get priced at progressively lower yields as they mature. Another way to boost income is to overweight mortgages, which provide yield premiums that compensate amply for the risk of duration extension should mortgage rates climb. Adding selectively to short-maturity corporates with attractive credit premiums will also enhance yield. PIMCO will retain existing telecom and energy pipeline holdings despite recent losses. These issues have strong asset coverages and should recover as the gradual improvement in corporate credit quality restores investors' risk appetite. PIMCO's portfolio strateav for the Long-Term Portfolio • Target duration modestly above the benchmark to take advantage of opportunities for incremental yield that persist under the present steep yield curve environment; • Retain exposure to maturities outside those in the index to capture value all along the yield curve; • Continue to emphasis mortgages to capture yield premiums that compensate for duration extension if mortgage rates climb; and • Retain telecom and energy pipeline credits, which have strong asset coverages and will recover as an improvement in overall corporate credit quality restores risk appetites. G:M .d.49 TMA AH•3gg =Agora necon0269.wennvImmM•nl M¢, A. area•: gamin Page 5 PIMCO's portfolio strategy for the Liquid Operating Portfolio • Maintain near-to slightly-above benchmark duration to pick up incremental yield as the shortrntermediate portion of the yield curve remains steep; • Continue to hold short-maturity corporate issues; corporates will benefit as lenders' appetite for risk is restored by rehabilitation of companies' balance sheets; and • Maintain holdings of high quality commercial paper and agency discount notes to add value and liquidity to the portfolio. Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. liquid Long4em guaner Operating Operating Ending Monies($M) Monies(7M) 31 Dez 01 43.4 354.3 31 Mar.02 43.6 355.8 30 June 02 43.9 366.1 30 Sept 02 44.1 317.8 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. PIMCO Report 2. Callan Report 3. Quarter End Portfolio Market Value Bar Chart 4. Long-Term and Liquid Operating Monies Portfolio Characteristics Charts (2) 5. Historical Yield Curve Graph G W ULN�Mx1FNHaFPHe[COS30o]Aperq+aegv4`➢P-99geMly Nralnertl YPe.aoc neee+.aaoea Page 6 Prepared by Finance, 11/4/2002, 2:46 PM OCSD Investment Management Program Quarter End Portfolio Values (Marked-to-Market) $400,000,000 - $350,000,000 $300,000,000 - $250,000,000 $200,000,000 $150,000,000 - $100,000,000 - $50,000,000 - ............... ............ $0 30 Sep 01 31 Dec 01 31 Mar 02 30 Jun 02 30 Sep 02 18 Liquid Operating Monies 0 Long-Term Operating Moniesj__ GAexce1.dtaWW2220\geggj\F inan ceWvestrngnntprogrann Portfolio Characteristics Orange County Sanitation District Liquid Operating Monies 100 - 1I I I I I 90 w1 6/3012002 Total Market Value($MM) 43.9 "A 80 :91=002 Quarterly Contributions($MM) 0.0 0.0 7060 5457 Estimated Annual Income($MM) 1.6 1.5 V 50 Estimated Duration(yrs)1 0.2 0.2 t se 40 Estimated Yield to Maturity(9o) 2.2 1.9 `0 30 2322 17 Average Maturity(yrs) 0.2 0.3 he 20 611 6 Average Quality AA+ AAA 10 0 0 0 2 0 0 0 0 0 0 0 AIM1 AAA M A Below BM BA B Before A1N1 100 100 — 90 Seclgra 06/302002 90 a ■6/3o2002 80 a9/3o/2002 a eo 75 Meturlh ■91302002 7 56 q J 0 510 a 50 g 40 a 27 40 8 30 2121 2621 30 21 as 20 X 20 10 no 0 0 0 0 0 O 0 10 1 3 6 0 0 0 0 0 53 GM Meg Cory Non OSS Emmging Other Net Cash 0-3mo 3-6 and Hmo 9-12mo 1-5 n Sr Yra Develop Markets M.Mket. a: : I II ! I II > 12 • 0 0 Government Futures 0.0 0.0 8-12 0 0 Money Markel Futures' 0.0 0.0 7-8 12 5 Credit Default Swaps-Purchased 0.0 OA 6-7 21 30 Credit Default Swaps-Written 0.0 0.0 5-6 8 3 Options Premiums 0.0 0.0 c 5 59 62 Mortgage Backed" 0.0 0.0 Average Coupon 3.8 3.5 Others 0.0 0.0 1 Measure of a bond portfolio's(or a boards)price sensitivity to changes in interest rates. A is a weighted maturity BI present value of all principal and interest payments. 2 Includes quality rating or cash equivalents backing futemalforwed Commilments. 3 Other includes YankeelEum bonds,convertibles S preferred stocks:Net Cash l Money Markets Includes T-Wls.STIF,CP,eAs and Ces,less amount to back bond allures,rprwmds pop unsettled bade.. 4 Mortgage-backed securities are categertaed by weighted average his. 5 Includes Eurodollar,Fed Funds.and T-bill futures.Due to the three-mcnth maturity of the Eurodollar futures contracts,the npminal value has been divided by lour. 6 securities delermirwtl by PIMCO to have potentially less stable duration characteristics,such as: IO If PO strips.Support-class CMOs,and Inverse Floater.. 7 Category includes securities verich derive their value how underlying interest rates,such as swaps,credd spreads,and non-U.S.denvaleves. Portfolio Characteristics Orange County Sanitation District Long-Term Portfolios _ 1 11 1 re 1000 Ilau Total Market Value($MM) 366.1 317.8 = 90 79 •e130/1002 j ■9 Quarterly Contributions ($MM) 0.0 -60.0 80 /302002V 70 Estimated Annual Income($MM) 15.6 16.4 60 Estimated Duration(yrs)t 2.0 2.5 0 50 Estimated Yield to Maturity(Ye) 3.5 2.7 IR 4a0a Average Malady,(yrs) 2.5 3.0 20 &13 1710 Average Quality AAA AAA 100 0 0 9 0 0 0 0 o 0 At?1 AM M A Below BM BA 9 BebwB A1IP1 100 Sseloy2 06I30R002 90 Ruled to so 091300002 so ■6'3012002 70 80 89 870 ■W3012002 > i� 60 > so 55 50i—M 5040 ' d0 32 J736 30se2015 15 as 30 2d 20 100 7 g 0 0 0 0 0 0 340 q ] 5 Goh MIg Carp Non USS Energies Other Net Cesh p 0 a a a cave, Merkels EquN 0-1 yet 1-3yn 3-5 tts 5-10 yre 1620tts 20s Y. ®0 > 12 0 0 Government Futures 0.0 0.0 8- 12 0 1 Money Market Futures' 0.0 0.0 7-8 11 12 Credit Default Swaps.Purchased 0.0 0.0 6-7 34 49 Credit Default Swaps.Written 0.0 0.0 5-6 5 14 Options Premiums 0.0 0.0 <5 50 24 Mortgage Backed' 0.0 0.0 Average Coupon 4.5 5.7 Other' 0.0 0.0 1 Measure of a bond portfolios(or a bore l forks sensitwily to changes in interest rates. It is a weishled melunty at present value of all principal and Interest Pay menm. 2 Other Includes Yank%/Eum bonds,coned iblas and municipal bards;'Not Cash Equivalent'equal cash equivalents less amount used to beck futures,forwards and unseated trades, 3 Includes Eurodollar,Fed Funds,and T-bill futures.Due to the thr%-mo ilh maturity of Eurodollar futures contracts,the nominal value has been ended M lour. 4 Securities determined by PIMCO to have potentially lase amble duration cherecledelks,such as: 10 3 PO Slops,Support class CMOs,and Inverts Floaters. 5 Category Includes securities which derive their value from underlying Interest roles,such as swaps,cretl)l spreads,and nOmU.Sdarivalives. Prepared by Finance, 11=002, 8:28 PM HISTORICAL YIELD CURVE 6.60 6.26 6.00 6.76 -- 6.26 6.00 4.76 4.60 4.26 4.00 s 3.75 — 3.60 3.25 - 3.00 2.75 2.50 — 2.26 2.00 1.76 1.60 �T-- E E s s s r N N O aJ A N M r-4-28-Mer-02 t28Jun-02 t303ep-02 ably Historical Yieldcurve.As 1 , i FAHR COMMITTEE mmum Date To So.aMr. 11/13/02 11/20/02 AGENDA REPORT Item Number Ran Number FAHR02-IM 1W.) Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources ORIGINATOR: James Matte, Safety and Health Supervisor SUBJECT: Safety Policy, Forklift Operation Policy GENERAL MANAGER'S RECOMMENDATION Approve SAFETY-POL 304, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. SUMMARY Article 25 of the General Industry Safety Orders,found in Title 8 of the California Code of Regulations requires that every employer who operates industrial trucks and forklifts establish, implement, and maintain an effective forklift operation program. The program shall be in writing and shall contain the elements defined in Article 25. This is a new program combining elements found in existing Safety and Health and Operations and Maintenance documents. The document presented for your review and adoption represents the districts written Forklift Operation Policy that conforms with the elements defined in Article 25 of the General Industry Safety Orders, Title 8 of the California Code of Regulations. PROJECT/CONTRACT COST SUMMARY Not Applicable BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION Policy required under Article 25, General Industry Safety Orders, found in Title 8 of the California Code of Regulations. ALTERNATIVES Not Applicable CEQA FINDINGS Not Applicable ATTACHMENTS Attachment 1- Forklift Operation Policy (SAFETY-POL-304) GY+9-NN�eMe`FAHRFIWIWOS2CU2 Aperga ReV s`P2.IOYSNe1Y Ri[Y YH 6x Page 2 ORANGE COUNTY SANITATION DISTRICT Safety and Health Division SAFETY-POL-304 Forklift Operation APPROVALS Approved by: Date: Director of Human Resources Approved by: Date: Manager,Human Resources Approved by: Date: Safety Supervisor PROCEDURE REVISION HISTORY Rev. Date Approval 0 11r2002 This document is controlled when viewed online. When downloaded and printed, this document becomes UNCONTROLLED, and users should check the Safety and Health public folder to ensure that they have the latest version. Respiratory Protection Program SAFETY-POL-304 Contents 1. Purpose............................................................................................... 3 2. Definitions........................................................................................... 3 3. Requirements ..................................................................................... 4 3.1 General Requirements ......................................................................................4 3.2 Forklift and Industrial Truck Operating Rules ...................................................5 3.3 Industrial Truck Pre-Inspections........................................................................6 3.3.1 Pre-Use Inspections.................................................................................6 3.4 Industrial Truck Maintenance ............................................................................7 3.5 Training of Industrial Truck Operators...............................................................7 3.5.1 Operator Training.....................................................................................7 3.6 Program Administration.....................................................................................8 3.6.1 Program Management and Review..........................................................8 4. References.......................................................................................... 8 5. Attachments ....................................................................................... 9 Rev. 0 Hard Copy Is Uncontrolled Date 11/2012002 2 of 9 g:\wp.dta\agenda\fahr\fahr2002\2002 agenda reports\02.100.1.doc Number. SAFETY-POL-304 Orange County Sanitation District • Revision Number: 0 Forklift Operation Date: 11/2002 Approved by: Lisa Tomko/Jeff Reed 1 . Purpose Employees at the Orange County Sanitation District (District) may be required to operate industrial trucks (forklifts) as a normal part of their duties. The District has developed this Forklift Operations Policy to ensure that only properly trained personnel operate industrial trucks. This policy also outlines the requirements for maintenance of industrial trucks. The purpose of this Forklift Operation Policy is to establish a program that will ensure employees are properly trained in the safe use of industrial trucks and associated equipment and that industrial trucks are properly maintained. This policy applies to industrial trucks owned or operated by the District. Section 3.1, General Requirements, applies to industrial trucks operated by Service Provider personnel. 2. Definitions Approved An industrial truck that is listed or approved for fire safety Industrial Truck purposes for the intended use by a nationally recognized testing laboratory using nationally recognized testing standards. Canopy An overhead protection or shield which covers the machine Guard/Overhead operator in a manner that will minimize the possibility of injury Guard from falling objects. Industrial Tow A powered industrial vehicle designed primarily to tow non- Tractor powered trucks, trailers or other mobile loads on roads or improved surfaces. Industrial A mobile power driven truck used for hauling, pushing, lifting or Truck/Forklift tiering materials where normal work is normally confined within a place of employment Load Backrest A device extending vertically from the fork carriage frame. Rev. A Hard Copy Is uncontrolled Dale 1/30/01 3 of 9 g:kwp.dta\agendaVahr\fah2002\2002 agenda reports\02-100.1.doc Respiratory Protection Program SAFETY-POL-304 y Extension ROPS Rollover Protection Structure 3. Requirements The required elements listed below are the elements of an industrial truck (forklift) program required by the California Occupational Safety and Health Administration (Cal-OSHA). Speck detail of each element may be found in specific industrial truck (forklift) program standard operating procedures, where applicable. 3.1 General Requirements Industrial trucks in service at the District shall be operated in accordance with the requirements outlined below. 1. All industrial trucks manufactured after June 26, 1998 shall be labeled as meeting the design and construction requirements of Part III, ASME B.56.1-1993, Safety Standards for Low Lilt and High Lift Trucks. 2. All industrial trucks manufactured before June 26, 1998 shall be labeled as meeting the design and construction requirements of Part III, ASME B.56.1-1993, Safety Standards for Low Lift and High Lift Trucks or Part II of the ANSI B56.1-1975 standard. 3. All industrial trucks shall have markings in accordance with 8 CCR 3650 (b). 4. All nameplates, model number, type designation and load capacity markings shall be maintained in a legible condition by the District (or Service Provider). 5. Major modifications and structural changes shall not be made to industrial trucks without prior written approval of the equipment's manufacturer. 6. Batteries shall be installed securely in racks, which are secured to the industrial truck. 7. Industrial trucks shall be equipped with a ABC rated fire Rev.0 Hard Copy Is Uncontrolled Date 11120/2002 4 of 9 g:\wp.dta\agenda\fahr\fah2002\2002 agenda reports\02-100.t.doc Respiratory Protection Program SAFETY-POL304 v SAFETY-SOP-304.2 Industrial Truck Operating Rules SAFETY-SOP-304.3 Pre-Use Inspection of Industrial Trucks SAFETY-SOP-304.4 Industrial Truck Maintenance SAFETY-SOP-304.5 Training of Industrial Truck Operators SAFETY-SOP-304.6 Program Administration SAFETY-POL-105 Hazardous Energy Control SAFETY-SP-105 Hazardous Energy Control Program 5. Attachments NONE Rev.0 Hard Copy Is Uncontrolled Date 11/2012002 9 of 9 g:\wp.dtatagendalfahrlfah2002t2002 agenda reports102-100.1.doc FAHR COMMITTEE MeeUng Dare To ad.of Dir. Il/13/02 11/20/02 AGENDA REPORT Item Number Item Number FAHR02-101 19(f) Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2002 GENERAL MANAGER'S RECOMMENDATION Receive and file the 2002-03 Financial Report for the First Quarter ended September 30, 2002. SUMMARY Attached in a separately bound document is the District's First Quarter Financial Report for the period ended September 30, 2002. This report is a consolidation of the financial accomplishments of the District through the through the first quarter of the 2002-03 fiscal year. Contained within the First Quarter Financial Report are budget summary reviews of the Joint Operating &Working Capital Funds, the Capital Improvement Program, the Revenue Areas, and the self-insurance funds. As indicated within the Overview Section of this report, 22.31 percent, or$14.59 million of the 2002-03 net joint operating budget of$65.42 million has been expended. Net cost has increased $3.17 million, or 27.7 percent in comparison with the same period last year primarily due to the increased level of wastewater treatment with full disinfection. The total cost per million gallons at September 30, 2002 is $661.25 based on flows of 22.07 billion gallons, or 239.91 million gallons per day. This is $55.70, or 7.77 percent below the budgeted cost per million gallons of$716.95. This shortfall is primarily due to expenditures being lower than budget by 10.76 percent, or$1.76 million. This expenditure shortfall is somewhat offset by the fact that flows are 4.04 percent lower than the budget estimate of 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A G:\vgglebpeMe\BwN Agana RepMsU'W2 B Apenft ReponaMONIpm 14IQ.FN dSl Rpa gm RMVE:Haze Page 1 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 N/A CEQA FINDINGS N/A ATTACHMENTS 1. 2002-03 Financial and Operational Report for the Quarter Ended September 30, 2002. G:Wy.a1a\aWndaYAHR1FAHR300=OO2 Agenda Rep W 101 Flnanaal Rq d[ Rerun: WOW Page 2 FAHR COMMITTEE Meeang Dale Toed.WDir. 11/13/02 11/20/02 AGENDA REPORT Item Number 1t Number FAHR02-102 14(g) Orange County Sanitation District _ FROM: Gary Streed, Director of Finance Originator: Michael White, Controller SUBJECT: ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL FINANCIAL REPORT(CAFR) FOR THE YEAR ENDED JUNE 30, 2002 GENERAL MANAGER'S RECOMMENDATION Receive, file and approve the District's Comprehensive Annual Financial Report(CAFR)for the year ended June 30, 2002, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. SUMMARY The District's independent auditors, Moreland &Associates, have completed their examination of the District's financial statements for the year ended June 30, 2002 and have again issued an unqualified opinion. Each year, the FAHR Committee reviews the results of the audit and the corresponding Auditor's report to the Committee. Michael Moreland, Partner, will attend the meeting to respond to any questions of Directors. This year, staff has again prepared the Comprehensive Annual Financial Report that includes the audited financial statements. For the last eight years, the District has earned the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA). This year's report will again be submitted to GFOA for their review in anticipation of another award. The Comprehensive Annual Financial Report, including the Auditor's opinion letter, the Auditor's Report to the Committee, the Auditor's Report on Compliance and on Internal Control Over Financial Reporting, and the Auditor's Appropriations Limit Report are attached. PROJECT/CONTRACT COST SUMMARY N/A 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) ADDITIONAL INFORMATION None. G:mq na'a9emmBwrO A9enEa Re�rts0003 2aar4 ApeMa FepwlsV IOZIIem LIBI GLF Ea RenSM P13098 Page 1 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Comprehensive Annual Financial Report for the year ended June 30, 2002. 2. Report on Compliance and on Internal Control Over Financial Reporting. 3. Auditors' Report to the FAHR Committee. 4. Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets. G1,g1.1.16.TAHRIFAHROMW2 A,mEa RepiISWDIW WA Eoc R..W .a .. Page 2 1201 DOVE STREET.SUITE W NE�Moreland 6�aaoc�afea J,� INS P20211�25CH CALIFORNIA 92fiH CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE.SUITE 250 SAN MARCOS,CA 92959 August 30,2002 p90�rsza990 The Board of Directors of the Orange County Sanitation District Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Basic Financial Statements Performed in Accordance With Government Auditing Standards We have audited the basic financial statements of the Orange County Sanitation District, (District) as of and for the year ended June 30, 2002, and have issued our report thereon dated August 30, 2002. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the District's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the District's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. I t Z)I DOVESiPEEr.SUIE I Moreland £>rr�aaociccled Joel. ( �'CA IFCRNIA 93� CcRmm)PUaIICACcouwA 5M RARCHERCS DRW SURE M SM MRRCM.CA 9N (r59)r5P3 August 30,2002 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District We have audited the basic financial statements of the Orange County Sanitation District, (District) for the year ended June 30,2002, and have issued our report thereon dated August 30, 2002.Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accented Auditing Standards and Government Auditing Standards Our responsibility as described by professional standards is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors,irregularities,or illegal acts,including fraud and defalcations,may exist and not be detected by us. As part of our audit, we considered the internal control of the District. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the District's compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Other Information in Documents Containing Audited Financial Statements Our responsibility for other information in documents containing the District's basic financial statements and our report thereon does not extend beyond financial information identified in our report, and we have no obligation to perform any procedures to corroborate other information contained in these documents. We have, however, read the other information included in the District's comprehensive annual financial report; and no matters came to our attention that cause us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or its manner of presentation, appearing in the financial statements. 1 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District August 30,2002 Page 2 Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. We will advise management about the appropriateness of accounting policies and their application. The significant accounting policies of the District are described in Note 1 to the basic financial statements. The District implemented GASB No. 34, Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments, GASB No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus, and GASB No. 38, Certain Financial Statement Note Disclosures. Other than GASB No's. 34, 37, and 38, no new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions during the year that were both significant and unusual,or transactions for which there is a lack of authoritative guidance or consensus. Management Judgments and Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based upon management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were the liabilities associated with general liability and workers' compensation claims. Management's estimate of the claims payable liabilities related to general liability and workers' compensation claims is based on reports prepared by third party administrators summarizing the estimated liability for workers' compensation and the reports prepared by District staff summarizing historical loss levels for general liability clams against the District. We evaluated the key factors and assumptions used to develop liabilities associated with general liability and workers' compensation claims recorded in determining that they are reasonable in relation to the financial statements taken as a whole. Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. An audit adjustment may or may not indicate matters that could have a significant effect on the District's financial reporting process (that is, cause future financial statements to be materially misstated). We proposed no adjustments that indicate matters that could have a significant effect on the District's financial reporting process. 2 The Finance, Administration and , Human Resources Committee of 4 the Orange County Sanitation District August 30,2002 Page 3 Disagreements With Management There were no disagreements with management on financial accounting, reporting or auditing matters that, if not satisfactorily resolved, would have caused a modification to our auditors' report on the District's financial statements. Consultation With Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Maior Issues Discussed With Management Prior to Retention We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the District's auditors. These discussions occurred in the normal course of our professional relationship, and our responses were not a condition to our retention. This information is intended solely for the information and use of the Committee, Board of Director and management of the District and is not intended to be and should not be used by anyone other than these specified parties. ,�0.�fr 3 -' 1201 DOVE STREET.SUITE M NEWORMoreland &�aoor ofea Jnv, (M)M`MuCH.CALIFORNIA 928� CERTRED PUBLIC ACCOUNTANTS 5M RANCHEROS DRIVE.SUITE 259 SAN MARCOS.CA 9MM (TB9)]523 August 30, 2002 The Finance,Administration and Human Resources Committee of the Orange County Sanitation District Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets We have performed the procedures enumerated below to the accompanying Appropriations Limit worksheet No. 6 (or other alternative computation) of the Orange County Sanitation District,(District)for the year ended June 30,2002. These procedures,which were agreed to by the District and the League of California Cities(as presented in the League publication entitled Article U11B Appropriations Limitation Uniform Guidelines),were performed solely to assist the District in meeting the requirements of Section 1.5 of Article XM of the California Constitution. The District's management is responsible for the Appropriations Limit worksheet No. 6 (or other alternative computation). This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently,we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted byresolution of the Board of Directors. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the Board of Directors. Finding: No exceptions were noted as a result of these procedures. The Finance,Administration t and Human Resources Committee of the grange County Sanitation District August 30, 2002 Page 2 2. For the accompanying Appropriations Limit worksheet No. 6, we added line A, last year's limit, to line E, total adjustments, and compared the resulting amount to line F, this year's limit. Finding: No exceptions were noted as a result of these procedures. 3. We compared the current year information presented in the accompanying Appropriations Limit worksheet No.6 to the other worksheets described in No. 1 above. Finding: No exceptions were noted as a result of this procedure. 4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet No. 6 to the prior year appropriations limit adopted by the Board of Directors during the prior year. Finding: No exceptions were noted as a result of this procedure. We were not engaged to and did not conduct an examination,the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet No.6(or other alternative computation). Accordingly, we do not express such an opinion. Had we performed additional procedures,other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year,as defined by Article XIH-B of the California Constitution. This report is intended solely for the information and use of the Board of Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parties. ORANGE COUNTY SANITATION DISTRICT APPROPRIATIONS LIMIT WORKSHEET#6 FY 2001 —2002 BUDGET AMOUNT A. LAST YEAR'S LIMIT $52,998,000 B. ADJUSTMENT FACTORS 1. Population% 1.73% 2. Inflation% 4.91% Total Adjustment% 6.72-/ C. ANNUAL ADJUSTMENT$ $3,561,000 D. OTHER ADJUSTMENTS: Assumed Responsibility-Booking Fees Property Tax Collections (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total 0 E. TOTAL ADJUSTMENTS $3,561,000 F. CURRENT YEAR LIMIT $56,559,000 i FAHR COMMITTEE MeedngDate TOBd.ofDtr. 11/13/02 11/20/02 AGENDA REPORT Item Number Rem Number FAHR02-103 14(h) Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: PER DIEM POLICY FOR AUTHORIZED TRAINING AND TRAVEL GENERAL MANAGER'S RECOMMENDATION Adopt a revised per diem policy for authorized training and travel providing for daily limits approved by the IRS for various locations in the United States. SUMMARY The District's current policy provides employees with up to $40 per day of travel for meals and incidentals, if the employee stays overnight away from home on District business. This total maximum is further limited to amounts not to exceed $6 for breakfast, $10 for lunch, $18 for dinner and $6 for incidentals. If the employee is away on District business but does not spend the night, the $6 is not earned and the individual meals can be reimbursed. The employee is reimbursed up to the individual limits, meal-by-meal, not exceeding the receipts that are returned. The District's current travel policy is defined by the IRS as an "accountable plan" because employees are required to report the time and place of the travel, the business purpose, and submit actual receipts for reimbursements or credits against advances. As an accountable plan, the travel expenses paid by the District are not reported as taxable income to the employee on Form W-2. Any expense incurred by an employee in excess of the amounts allowed under this policy can be deducted as a business expense on their tax return (Form 2106). There are two main problems that the existing policy causes: • The requirement to maintain receipts in order to receive reimbursements or credits against advances is too cumbersome. • The daily and individual meal maximum allotments are insufficient to cover the actual going rates. Staff recommends a revised policy that provides the employee the maximum travel allotment, maintains the non-taxable nature of the payments for meals and incidentals, and eliminates the considerable staff time used to collect, retain and audit receipts. • District would adopt the meal and incidental expense limits per IRS Publication 1542 as established by the U.S. General Services Agency. • These rates are subject to change by the IRS and would be automatically adopted by the District. • Current rates are $30/$34/$38/$42/$46/$50 based upon destination. • The entire payment would be allowed for a travel event equal to or longer than a normal day of work. • Meals provided by others, included in an event registration or not covered by the length of the travel day would be deducted. • Meals included in Flight would not be considered a full meal and would not be Y deducted. • The value of each meal is established by the IRS for each of the daily maximum amounts. PROJECT/CONTRACT COST SUMMARY This proposal would increase the maximum per diem authorization from $40 per day to $50 per day under the current IRS regulations. It would also decrease the authorization for some destinations to as low as $30 per day. The cost of this change is unknown, but there are three rates that are higher than the current rate and three that are lower. The differences in each direction exactly offset each other. Time saved by not accumulating, reporting and auditing receipts is expected to more than offset any additional per diem costs. 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) ADDITIONAL INFORMATION Please see the attached staff report. ALTERNATIVES Keep the current policy and limits. Adopt a different policy and limits from those discussed in the staff report. CEQA FINDINGS N/A ATTACHMENTS 1. Staff Report with attachments GGS:lc G:1W.ELLYyM•YNIFYNIfl200NIpl1Rb•RNKfbl.10].Va Mn PyM.Y.Ox G..•.e: vmui Page 2 September 3, 2002 STAFF REPORT Orange County Sanitation District Analysis of Travel Expenses Current Policv The District's current policy provides employees with up to $40 per day of travel for meals and incidentals, if the employee stays overnight away from home on District business. This total maximum is further limited to amounts not to exceed $6 for breakfast, $10 for lunch, $18 for dinner and $6 for incidentals. If the employee is away on District business but does not spend the night, the $6 is not earned and the individual meals can be reimbursed. The employee is reimbursed up to the individual limits, meal-by-meal, not exceeding the receipts that are returned. If meals are included in a meeting registration, substituted meals paid by the employee are not covered by the District. Meals provided by others are not covered by the District. Lodging is covered by the District without any maximum dollar limitation as long as the lowest available rate for a standard single occupancy room is obtained from the desired hotel. The District's current travel policy is defined by the IRS as an "accountable plan" because employees are required to report the time and place of the travel, the business purpose, and submit actual receipts for reimbursements or credits against advances. An exception to the submittal of receipts applies for automobile expenses and daily incidentals, where the District uses federally accepted per diem limitations (36.5 cents per mile effective January 1, 2002 for automobile expense reimbursements). As an accountable plan, the travel expenses paid by the District are not reported as taxable income to the employee on Form W-2. Any expense incurred by an employee in excess of the amounts allowed under this policy can be deducted as a business expense on their tax return (Form 2106). Issues with Current Pollcv There are two main concerns that many employees have regarding the existing policy. Analysis of Travel Expenses Page 2 of 5 _; September 3, 2002 • The requirement to maintain receipts in order to receive reimbursements or credits against advances is too cumbersome. • The daily and individual meal maximum allotments are insufficient to cover the actual going rates. Alternatives (1) To eliminate requiring employees to submit receipts and still not require the District to report paid travel expenses as taxable income to the employee, the District could: • Utilize the maximum per diem rates for specific localities published by the IRS as Publication 1542 as established by the U.S. General Services Agency (see Attachment for a copy of rates throughout the United States ). Each Travel Expense Reimbursement Request would require reviewing the chart when determining the proper reimbursement amount. In addition, the following table would be utilized to break down partial days or to deduct meals that were covered as part of registration fees, or to deduct meals provided by others: Federal Meals& Incidental Expense(M&IE) Rates (Code of Federal Regulations 301-11.18) Total Allowable M&IE Rate(Full Day)' $M L34 W $46 $M Breakfast $6 $7 $8 $9 $9 $10 Lunch 6 7 8 9 11 12 Dinner 16 18 20 22 24 26 Incidentals 2 2 2 2 2 2 'Based on the total allowable M&IE allowable for a particular city or county. • Utilize the maximum per diem rate under the optional high-low method. This method separates all reimbursements into just two categories, as follows: High Low Meals& Incidental Expenses $42 $34 IRS Revenue Procedure 200147 publishes a listing of approximately 50 locations throughout the United States where the high reimbursements may be used and the time of the year at each location where they may be used. (2) The District could continue to require receipts and establish its own travel expense limits thereby retaining non-taxable status. Analysis of Travel Expenses Page 3 of 5 September 3, 2002 (3) The District could also discontinue the practice of submitting receipts, establish its own limits, and make all M&IE taxable to the employee. Discussion of Options (1) Implement the Speck Locality Method of Per Diem Allowance, discontinue the practice of requiring the submittal of receipts, and maintain the nontaxable status of District travel payments to employees. Pros: (1) It would eliminate the need for employees to retain and submit receipts. (2) Increases per diem in some locations to $42, $46 or$50. (3) Allowable rates are determined by an outside agency. Cons: (1) Difficult to administer from both the employee and District perspective because the per diem amounts differ based on destination. (2) Reduces per diem in some locations to $30, $34 or$38. (3) Requires Board action. (2) Implement the High-Low Method of Per Diem Allowance, discontinue the practice of requiring the submittal of receipts, and maintain the nontaxable status of District Travel payments to employees. Pros: (1) It would eliminate the need for employees to retain and submit receipts. (2) It would increase the per diem in a few locations to $42. (3) Allowable rates are determined by an outside agency. Cons: (1) Although easier to determine than the Speck Locality Method, it would still be difficult to administer from both the employee and District's perspective because the per diem amounts differ based on 50 business locations and month of travel. (2) It would decrease the per diem in most locations to $34. (3) Requires Board action. (3) Implement the High-Low Method of Per Diem Allowance, but only utilize the "low" per diem amounts. This would eliminate the need to track exactly where employees incurred business expenses. This also would allow for the discontinuance of the practice of requiring the submittal of receipts, and maintain the nontaxable status of District Travel payments to employees. Pros: (1) It would eliminate the need for employees to retain and submit receipts. Analysis of Travel Expenses Page 4 of 5 September 3, 2002 (2) Ease in administration because the per diem amounts would always be the same no matter where the location of business took place. Cons: (1) It would decrease the per diem for all locations to $34. (4) Continue requiring receipts but adjust the maximum reimbursement amounts to reflect current industry travel expense standards. Pros: (1) Fairness in establishing reasonable reimbursement limits. This would allow for all business related expense amounts to be reimbursed subject to predetermined limits set by the agencv. (2) Ease in administration for the agency (all expenses would have to be supported by receipts). (3) Retains non-taxable status of travel payments. Cons: (1) This would continue to require employees to retain and submit receipts. (2) The Board would need to adopt increased rates established by staff. (5) Maintain or amend the existing Travel Expense Policy. Pros: (1) No new policies and procedures to be learned by employees and administrative staff. (2) Allocation of daily limit to speck meals could be changed. (3) Retains non-taxable status of travel payments. (4) Unreimbursed costs are tax deductible for employees. Cons: (1) Reimbursement of the daily and individual meal maximum allotments may be insufficient to cover the actual going rates of the industry travel expense standards. (2) This would continue to require employees to retain and submit receipts. (3) Reallocation of$40 would need Board approval. (6) Discontinue the practice of submitting receipts, establish our own limits, and make all M&IE taxable to the employee. Pros: (1) Easy administration for both employee and agency. (2) Fairness in establishing reasonable reimbursement limits. This would allow for all business related expense amounts to be reimbursed subject to predetermined limits set by the agency. Analysis of Travel Expenses v' Page 5 of 5 September 3, 2002 Cons: (1) Higher taxable income to employees. Only the amount of business expense that exceeds two percent of adjusted gross income is deductible on an employee's tax return. (2) The Board would need to agree with rates proposed by staff. (3) Requires reporting travel payments on annual W-2. Recommendation We recommend a policy that provides the employee or Director the maximum travel allotment, maintains the non-taxable nature of the payments for meals and incidentals, and eliminates the need to collect, retain and audit receipts. No Receipts Required • District would adopt the meal and incidental expense limits per IRS Publication 1542 as established by the U.S. General Services Agency. • These rates are subject to change by the IRS and would be automatically adopted by the District. • Current rates are $30/$34/$38/$42/$46/$50 based upon destination. • The entire payment would be allowed for a travel event equal to or longer than a normal day of work. • Meals provided by others, included in an event registration or not covered by the length of the travel day would be deducted. • Meals included in flight would not be considered a full meal and would not be deducted. • The value of each meal is established by the IRS for each of the daily maximum amounts. Telephone charges are in addition to the above. All business calls will be reimbursed, with no limit, when supported by receipts. Personal calls will be reimbursed up to $4.25 per day when supported by receipts. GGS:lc G1wp.dhXfin O0 ne\FAHRTFah2OOZSephTmwI Expense Malysls.0 Attachments 1. Policy No. C110.00 2. FY 2003 Domestic Per Diem Rates v Orange County Policy Number: C110.00 Sanitation District Effective Date: August 22, 2001 Subject: TRAVEL AND BUSINESS Supersedes: April 26, 2000 EXPENSES Approved by: Lisa L. Torl 1.0 PURPOSE 1.1 The purpose of this policy is to establish uniform guidelines and procedures for reimbursing employees for travel and business expenses. 2.0 ORGANIZATIONAL UNITS AFFECTED 2.1 This policy applies to all current employees regardless of their organizational unit. 3.0 POLICY 3.1 It is the District's policy to reimburse employees for travel and business expenses in accordance with the procedures of this policy. 4.0 PROCEDURE 4.1 The District will reimburse employees for reasonable travel and other expenses incurred in the course of representing the District on official business provided that approval is obtained in advance. All reimbursement claims for such expenses must be submitted on a Travel Expense Reimbursement torn with a "Daily Expense Breakdown"form,airfare itinerary and all required receipts attached. 4.2 Related documents and forms are listed in section 7.0. The forms are accessible through the District's Intranet websile at hitto No n r m rt Id7m mr ntm. 5.0 EXCEPTIONS 5.1 Exceptions to the policy must be indicated on the original"Request for Travel Expense Reimbursemenr form and an'Exceptions-Unauthorized Expenditures" memo signed by the Department Head with a full explanation attached to the package. 5.2 Business travel expenses incurred in excess of those described in this policy are not reimbursable. For example,if employees choose to drive instead of fly from Los Angeles to Phoenix,the total reimbursement will not exceed the amount that would have been incurred had air travel been used (e.g., mileage, lodging and meal expense reimbursements resulting from car travel cannot exceed the amount required if air travel had been used). Pagel of7 W 6.0 PROVISIONS AND CONDITIONS 6.1 GENERAL INFORMATION 6.1.1 "Requests for Travel Authorization"forms should be submitted,and reservations made,at least 21 days in advance to take advantage of discounted or reduced fares,etc. 6.1.2 The employee is responsible for completing the'Request for Travel Expense Reimbursement'form,and is responsible for submitting all receipts. 6.1.3 Original receipts are required for all reimbursable expenses regardless of the dollar amount. 6.1.4 A"Request for Travel Expense Reimbursement"form should be submitted within two weeks after the reimbursable business expense has been incurred. 6.1.5 Employees are to exercise every effort to minimize travel and meeting expenditures. When alternatives are available,the employee will utilize the least expensive alternative. 6.1.6 The designated travel coordinator will audit and finalize the-Request for Travel Expense Reimbursement"form,sign,obtain approvals and forward all necessary forms to the appropriate Division (Training/Accounting). 6.1.7 The approval level required on the"Request for Travel Expense Reimbursement-form is based on total expenses incurred. Employees cannot approve their own travel expenses. 6.1.8 Employees must have Department Head approval in writing before agreeing to appear on a panel or to give a presentation on behaff of the District. Failure to do so may preclude attendance. 6.2 LODGING 6.2.1 Lodging shall be in a hotel,motel or lodge.HoteUmotel rooms must be standard(single occupancy)rather than deluxe accommodations. The employee must pay lodging expenses directly and include the original detailed hotel receipt with the"Travel Expense Reimbursement"form before reimbursement will be made. Direct billings to the District for employee lodging will not be accepted unless the circumstances are unavoidable and written authorization from the General Manager's office is obtained in advance. Meals or other reimbursable charges on the hotel bill will be applied towards the daily reimbursement maximum. 6.2.2 Making Reservations-When making hotel reservations,always ask for the lowest available rate the hotel is offering (e.g.,government,season special),which may be lower than the conventiontconference rate. Page 2 of 7 v 6.2.3 Canceling Reservations-A traveler canceling the reservation must do so according to the hotel's policy in order to avoid charges. The District does not reimburse for non-canceled reservations, eaAv departure, or late cancellation charges unless approved by the Department Head via an "Exceptions-Unauthorized Expenditures"memo. 6.3 GROUND TRANSPORTATION 6.3.1 Employees must select the most economical, practical means of ground transportation that is appropriate for the particular site. The reimbursable distance for departures is the distance between the last stop(e.g., District or employee's residence)and the terminal,and for arrivals is the distance between the terminal and the first stop(e.g., District or employee residence).Automobile mileage reimbursement is given if an employee is required to use a personal vehicle for travel within the District's general geographical area,which includes Orange, Los Angeles,Ventura, San Bernardino,Riverside, San Diego, Imperial and Kern Counties. The District shall pay local transportation costs from the employee I s residence to the departure airport If the employee uses his/her personal vehicle,then mileage will be paid at the current IRS-approved rate. Alternate travel to a departing airport shall be by bus,shuttle or taxi only. 6.3.2 Reimbursement for personal auto usage for business will be calculated per the current Internal Revenue Service Guideline. This rate is subject to change. 6.3.3 Round-trip mileage expenses can be reimbursed when family chauffeuring is the most economical alternative. 6.3.4 District vehicles may not be used to transport non-District employees. 6.3.5 Travel while at the local destination may be by shuttle,bus or taxi,as needed. A rental car may be allowed. 6.3.6 Parking at the departure airport is reimbursable with receipts. 6.4 AUTO RENTALS 6.4.1 Rental Car Reservations-Employees should utilize either Worldview Travel or the Internet,whichever is mare cost effective,to secure rental car reservations. See Woddview Travel contact information in section 6.5.2.of this policy. Reservations made through the Internet require a certification statement from the employee that this is the most cost- effective solution. Expenses that are subsequently determined not to be cost effective will require the employee to reimburse the District. 6.4.2 Rented autos should only be used when no other means of transportation is economically feasible. Use of airport or hotel shuttles is encouraged. 6A.3 Class size-Intermediate or standard model, mid-size car(Class C),or the smallest size compatible with the specific need,are to be used. Exceptions must be explained on an'Exceptions-Unauthorized Page 3 of 7 W Expenditures"memo signed by the Department Head. The original copy of the car rental contract and receipt must be attached to the'Travel Expense Reimbursement"form. 6.4.4 Insurance—The District is insured or self-insured for damage to rental cars used on company business. ONLY the "Lou Damage Waiver Fee"is to be accepted and is reimbursable. Any additional insurance purchased for the rental car is not reimbursable. 6.4.5 Rental Contract-When completing the rental agency contract,sign for the District, not as an individual(i.e. Orange County Sanitation District, CA, by(your name). 6.4.6 Gas Surcharge—The District will not pay fuel surcharges. 6.4.7 Damage-In the event of damage to rental cars,all details of the event reported to the police and/or the rental firth must also be provided to the District Safety Division within 24 hours of the incident. 6.5 AIR TRAVEL 6.5.1 Airline Reservations-District staff should utilize either Worldview Travel or the Internet,whichever is more cost effective,to secure airline reservations. Reservations made through the Internet require a certification statement from the employee that this is the most cost- effective solution. Expenses that are subsequently determined not to be cost effective will require the employee to reimburse the District. 6.5.2 Contact information for Worldview Travel:All travel arrangements with Worldview Travel must be made through department/division designated travel coordinators. Business Worldview Travel Address District Travel Consultant 535 Anton Blvd.,Suite 160 Costa Mesa,CA 92626 Business Phone (714)540-7400 Business Phone 2 1-600.627-8726 Business FAX (714)979-6040 Email cherieCdworldview.com Web Page hftp:ltw .worldviewtravel.com 6.5.3 Frequent Flyer Miles-Employees who belong to frequent flyer programs are entitled to personally use all bonuses accrued by them on company business. Under no circumstances, however,may employees purchase more expensive tickets in order to accumulate frequent flier mileage or upgrade the class of service. First or Business Class upgrades may be used as long as the ticket still represents the lowest practical airfare. 6.5.4 Excess Baggage Fees—The District will not reimburse for excess baggage fees if not related to company business. This includes sporting equipment. 6.5.5 Alternative Airports-Allemative airports within close proximity(Los Angeles, Long Beach,and Ontario)must be used 4 the savings exceed$150. Page 4 of 7 V 6.5.6 Lost Ticket Application—Once an employee accepts a District paid ticket,he or she is responsible for it. If an employee loses a ticket,the replacement of the District-paid ticket and all related fees are the employee's responsibility. If aidine reservations were made through Woddview Travel,the employee must contact Woddview Travel immediately.requesting them to file a Lost Ticket Application with the airline. If and when the District is reimbursed,the employee will be entitled to the cost of the original ticket less any fees incurred. Employees must take extra precautions to avoid losing tickel(s),which result in extra fees and delays for refunds. 6.5.7 Unused Flight Tickets—Unused flight tickets purchased through Woddview Travel must be returned to division clerical staff within seven days of issuance. Clencal staff will retain the unused flight ticket for future District air travel by the same person. 6.5.6 Ticket Changes—The District will pay the additional fee to change a ticketed flight only if the travel is required by the traveleds supervisor and an*Exceptions- Unauthorized Expenditures"memo is completed,signed by the Department Head and submitted with the"Travel Expense Reimbursement"form. If the change is for the convenience of the traveler, no reimbursement will be allowed. 6.5.9 Flight Limitations—There should be no more than four(4)District Employees total per flight. 6.5.10 Saturday Night Stayover—The District may require a Saturday night stay-over if the stay-over results in significant cost savings to the District. In general, it is expected that business meetings that start on Tuesday or end on Thursday will notjushfy a reimbursement for Saturday night stayover. Saturday night stay-over expenses are reimbursable only if the sum of the airfare plus the expenses of the additional lodging,meals and incidentals resulting from the stay-over are less than the lowest available airfare without the stayover. 6.5.11 Flight Insurance—Flight insurance is not reimbursable. 6.6 MEALSRNCIDENTALS 6.6.1 On overnight stays,District employees are entitled to reimbursement up to$40 per day.Detailed receipts must substantiate out-of-pocket expenses.The daily maximum includes an allowance of$6 for incidentals. 6.6.2 When a training function or meeting does not involve overnight stay,the meal reimbursement shall not exceed the following maximums: (Breakfast:$6.00; Lunch: $10.00; Dinner:$18.00). Receipts are required for reimbursement. 6.6.3 Provided Meals-Meal expenses are not reimbursable if furnished as part of the event,provided by others,or included with airfare. 6.7 GROUP EXPENSE REIMBURSEMENT 6.7.1 When employees travel in a group,they should pay their own expenses. If this is not practical, one member of the group may pay. Expense reimbursement form shall include: Page 5 of7 e • Names of the individuals for whom the expense has been incurred • Department number to be charged • Circumstances involved Expenses for meals etc.cannot exceed individual maximums on an average per employee basis. 6.8 COMBINING BUSINESS AND PERSONAL TRAVEL 6.8.1 If an employee combines business and personal travel,the personal travel expenses will be paid directly by the employee. For trips in which the primary purpose is personal,the District pays only that portion of the trip directly related to business. 6.8.2 Business travel is based on actual business expenses incurred. Therefore,no adjustment is permitted between expense categories(e.g.. funding extra airfare expense in exchange for reduced lodging in a private home on a personal side trip). 6.8.3 In general, it is not appropriate for family members to accompany employees on business trips. Any costs incurred on behalf of family members are not reimbursable. 6.9 FOREIGN TRAVEL 6.9.1 Regardless of when expense reports are submitted,the exchange rate for converting foreign currency expenses into U.S. dollars will be the rate in effect at the time the U.S.dollars are converted to foreign currency and supported by receipts. 6.10 TELEPHONE CALLS 6.10.1 Business telephone calls and modem services are reimbursable with receipt. On overnight stays,a$4.25 per day allowance is provided for personal telephone calls. 6.11 CASH ADVANCE 6.11.1 Cash advances may be requested for overnight stays FOR EMERGENCY PURPOSES ONLY. The minimum request amount per trip is$100. The maximum request amount is$250 per trip. To receive a cash advance,the traveler is required to complete a"Request for Emergency Cash Advance forth,obtain proper signatures and submit the completed form to the Accounting Division. 6.12 NON-REIMBURSABLEEXPENSES 6.12.1 Expenses that are personal(not directly connected with District business)are not reimbursable unless there are extenuating circumstances approved by the General Manager. These include, but are not limited to the following: • Clothing and toiletries Page 6 of 7 J • Personal side trips,personal entertainment and personal trip insurance • Fees for use of recreational,health and gym facilities • Home maintenance,baby sitting and pet boarding expenses • Personal legal charges and traffic violations • Loss or theft of cash,travelers checks,travel tickets and credit cards • Loss,theft or damage to personal property such as luggage, auto and clothing • Medical expenses • Accident related costs resulting from an employee's business use of a personal auto • Tips exceeding 15% • Movies • Alcohol 6.13 AGENCY/VENDOR-REIMBURSED EXPENSES 6.13.1 When any meeting or training fees are to be reimbursed by an outside agency or vendor,the agency/vendor shall provide a letter to the employee stating exactly which expenditures will be reimbursed. The letter shall accompany the employee's reimbursement package. The designated travel coordinator shall prepare a letter to the agencylvendor listing all expenditures that the agencylvendor has agreed to reimburse and enclose a copy of the agencylvendor authorization letter and copies of all receipts. This letter Is copied to the employee and to Accounts Receivable in the Finance Department so that the payment can be credited to the proper account. 6.14 REIMBURSEMENT FOR NON-DISTRICT EMPLOYEES 6.14.1 Occasionally,the District requests others to travel either to the District or on behalf of the District. In those instances,the Department Head shall prepare a letter authorizing the travel. After completing the travel,the traveler submlts a detailed invoice along with a payment request voucher to Accounts Payable for processing. Acopy of the authorization letter shall accompany the payment request voucher. 7.0 RELATED DOCUMENTS 7.1 'Travel Expense Reimbursement"form 7.2 'Daily Expanse Breakdown"form 7.3 'Request for Travel Authorization"form 7.4 "Exceptions-Unauthorized Expenditures'memo 7.5 "Request for Emergency Cash Advance"forth 7.6 OCSD Administrative Standards and Procedures Guidelines, Section III-22, Travel and Training Page 7 of 7 V FY 2003 Domestic Per diem Rates (Effective October 1, 2002) - Mileage and Incidental Expense Fare er-- Stale I Destination/City CountyLocation Diem Rates CONUS,Standard rate: (Applies to all locations within CONUS (CONtlnentel United States) not specifically listed below o 30 encompassed by the boundary definition of a listed point.) AL Birmingham Jefferson 42 AL Decatur Morgan 34 AL Gulf Shores Baldwin 36 AL Huntsville Madison 38 AL Montgomery Montgomery 42 AL Tuscaloosa Tuscaloosa 34 AZ Casa Gourds Pinal 38 AZ CMnle Apache 38 All points in Coconino County not covered under Grand Canyon per AZ FNgstaN diem area 78 All points In the Grand Canyon National Park and Kaibeb National AZ Grand Canyon Forest within Coconino County 4fi AZ cayenM Navajo 34 AZ Phoeno/Swhsdele Maricope 46 AZ Tucson Pima County;Davis-Monlhan AFS 42 AZ Yuma Yuma 38 AR Hot Springs General 34 AR LIMB Rork Pulaski 38 CA Clearlake take 34 CA Contra Costa County Contra Costa 46 CA Death Valley Irryo 46 CA Fresrw Fresno 34 CA Kern County Kern County 42 Los Angeles;Orange and Venom Counties;Edwards AFB;Naval CA we Angeles Weapons Center and Ordinance Test Station.China Lake(excluders 5g Santa Monica,we below) CA Mammoth Lakes Mono 46 CA Merin County Mann 46 CA Merced Merced 34 CA Modesto Stanlslaus 38 CA Monterey Monterey 46 CA Nape Napa 46 CA Oakhurst Madera 42 CA Oakland Alameda 42 CA OntarlofBan owNMorville San Bemardino 42 CA Palm Springs RWarelde 46 CA Palo Alto Santa Clan 50 CA Point Areca/Gualala Mendocino 42 CA Redding Shasta 34 CA Sacramento Sacramento 46 CA San Diego San Diego 50 CA San Frenciaw San Francisco 5o CA IS.n Luis Obispo San Luis Obispo 42 CA iSan Mateoeiedwood City San Mateo 46 Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) ' Mileage and `Ineldental•EipenaePer tifate . Depial"anicity County Location Diem Rates CA Soma Sense Santa Barbara 42 CA Settle Gros Santa Cruz 46 CA Santa Monioa City limits of Santa Monka 42 CA Santa Rosa Sonoma 46 CA Sokno County Solaro;Travis Al,Face Bane 46 CA SOUK Lake Tahce El Dorado(am also Slalelire.NV) 48 CA San Jose/Sunnyvale Santa Clam so CA Tahoe City Placer 46 CA Truckee Nevada 46 CA Visalia Tulare 42 CA West Sacramento Y010 34 CA Yosemite National Park Mariposa 46 CO Aspen Paid. 46 CO Boulder Boulder 46 CO Colorado Springs El Paso 42 CO Codex Montezuma 34 CO Created Butte City limits of Crested Sure(sea Gunnison County) 46 CO Denver Denver,Adams.and Arapahoe Counties.flat portion of Westminster 46 kfcaled In Jefferson County,and two Tree in Douglas County CO Durango La Plata 42 Co Fool Collins Latimer(except Loveland) 38 CO Glenwood Springs Garfield 34 CO Grand Junction Mesa 34 CO Gunnison Gunnison(except Created Butte) 38 Co Jefferson County Jefferson 38 CO Loveland City limits of Loveland(see Latimer County) 34 co Montrose Monbese 36 CO Pueblo Pueblo 3B CO Stivenhome/Keystone Summit 42 co steamboat Spring$ Roua 42 CO Telluride San Miguel 46 CO Triidad Ws Animas 31 CO Vail Eagle 46 CT Bridgeponcanbury Fairfield 42 CT Hartford Hartford 42 CT Lakeville/Salisbury LarJtfield 42 CT Middlesex County Middlesex 34 CT New Haven New Haven 38 CT New LOndo VGrelon New London 36 CT PuaaMDanielson Windham 34 CT Skxrs/Mansfiald Tolland 34 DE Dover Kent 38 DE Lewes Sussex 42 DE Wilmington New Castle 38 Washington,DC(also the cities of Alexandra.Falk Church.and Fairfax.and are counties of Attinglon, DC Lomoun,and Fairfax,in Virginia;and the counties of Montgomery and Prince Georl In Maryland). 50 (See also Maryland and Virginia.) Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) _ .. 1111eage and Incidental Expense Per State D"U"tioN County Location Diem Rates FL Allamonta Springs Seminole 42 FL Bradenton Manatee 34 FL Cocoa Beach Bmvard 38 FL Daytona Beach Volusla 42 FL Fort Lauderdale aroeam 46 FL Fort Mysm Lee 46 FL Fort Pierce Saint Lucie 42 FL Fort wants,Beach okaloosa 42 FL Gainesville Alachua N FL Gulf Bmeze Santa Rosa 42 FL JacksonvlllwMayport Duval;Maypon Weal Station 38 FL Key West Monroe 48 FL Kissimmee Osceola 36 FL Lakeland Polk 38 FL Leesburg take ?4 FL Mlami Dado 46 FL Naples Collier 42 FL ocala Mahn 34 FL onerMo Orange 46 FL Paten Beach Palm Beach 46 FL Panama City Bay 42 FL Pensacola Esmmbia 34 FL Punta Gorda Charlotte 38 FL Sarasota Sarasota 42 FL sabtna Highlands 34 FL St.Augustine St.Johns 42 FL Swan Martin 42 FL Tallahassee Leon 38 FL TampWSL Petersburg Pinellas and Hillsborough 42 FL Vero Beads Indian Rive 34 GA Anent, Dougherly, 38 GA Ahern Clarke 38 GA Atlanta - Fulton 42 GA Clayton County Clayton 34 GA Cobb Count' Cobb 42 GA Cciumeus Muscogee 38 GA Conyers Rocelale 38 GA DeKalb County DeKalb 42 GA Dublin Laum. 34 GA Gemmed County GWrned 42 GA Savamleh Chatham 42 ID Boise Ada 42 ID Coeur CAlern Kootenai 38 ID Ketchum Blaine(except Sun Valley) 42 ID McCaig Valley 42 ID Sun Valley City limits 0 Sun Valley(see Stalae County) 42 IL Agora Kane(except Elgin) 3a IL Chicago Cook eta lake 53 IL Du Page County Du Page 42 L Elgin City limits of Bill.(sae Kane County) 34 IL RocMed Winnebago 34 IN Cammt Hamliton 42 Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) Mileage and incidental Expense Per State I Destinatiorif CRY County Location Diem Rates IN FL Wayne Men 34 IN Indianapolis Marion Countyr,FOR Benjamin Hanson 46 IN lafayatre Tippecanoe 34 IN MiOsgan City Le Porte 36 IN Nastwlne Brown 42 IN South Bend SL Joseph 36 IN ValpaaisNBurlington Beach Porter 38 IA Cedar Rapids Linn IA Des Moines Polk 34 KS JvCansas City/Overland Park Wyandoae and Johnson 42 KS Wichita SedgWa 42 KY co ington Kenton 42 KY Ledngten Fayette 34 KY Louisville Jefferson 42 KY Newport Campbell 34 LA Sawn Rouge East Sawn Rouge Parsh 42 LA Gonzales AmensIM Parish 38 LA take Charles Calcasieu Parish 38 LA New Odearsst.Bernard Orleans,SL BemeN.Plaquemine and Jameson Parishes 46 LA Shrevepon'Bon lar City Caddo 42 LA Slidell SL Tammarry 34 LA St.FanclaWle West Fascism 42 ME ass Nestor Hancock 42 ME Sam Segedehoe 38 ME Kennedmkligdery/Sanford York 42 ME PoNend cumterlaM 42 ME Rockport Wrox 46 ME wiseasset uncan 42 MD (For the counties of Montgomery and Prince Georges.see District of Columbia.) 50 MD AmropMla Anne Animal 46 MD Sediment Baltimore 46 MD Cambridge Dorchester 34 MD Columbia Howard 46 MD Frederick Frederick 34 MD Gasonville Guam Maros 42 MD Hartford County Hedord County 42 MD Ledngtan PaN St.Marys are CaNsit 38 LemardtovMLusby MD Ocean City Worcester 46 MD ISt.Michaels Tamil 46 MA Andover Essex 42 MA Boston Suffolk I 50 MA Cambridge Middlesex(exoNd Lowest 50 MA Falmouth City timhsof Fannouth 38 MA Hyannis Bamssble 42 MA Lowell City limits of Lowell(except Cambridge)(zee Middlesex County) 3S MA Manna's Vineyard Dukes 46 MA Nantucket Nantucket 46 MA New Bedford City limits of New Bedford(an Brlatd County) 38 MA Nonnempton Hampshire 38 MA Pidsfeltl Berkshire 42 ' Denotes separate cities r FY 2003 Domestic Per diem Rates (Effective October 1, 2002) - Mileage and incldentallixpYltbe`Per.1 State oelatimd,d city County"Location - Diem Rates MA Plymouth Plymouth 38 MA Quincy Norfolk 42 MA Springfield Hampden 38 MA Taunton 86SWI(except New Bedford) 34 MA Worcester Worcester 38 MI Ann Arbor Washumaw 42 MI Barden County Earned 34 MI Chmmnmbi Chadevo4 42 MI Detrett Wayne 50 MI East Lanning/lansing Ingham 42 MI Frankenmuth Begins. 34 MI Frankfort Senate 3/ MI Gaylord Otsego 38 MI Grand Rapids Kent 38 MI Halland Ottawa 38 MI Leland Leelanau 38 MI Mackinac Island Mackinac 46 MI MMIand Midland 38 MI Mount Pleasant Isabella 38 MI Muskegon Muskegon 34 MI Ontonagon Ontonagon 34 MI Petoskey Emmet 42 MI Ponear/rroy/Auburn Hills Oakland 42 MI Sault Ste Made Chippewa 38 MI South Haven Von Buren 38 MI Traverse City Grand Trenarae 46 MI Warren Macomb 38 MN Anoka County Anoka 38 MN Dakota County Dakota 3a MN Duluth St.Louis 42 MN MlnnespolslSt.Paul Hennepin County and Fort Snelling Military Reservation and Navy 50 Astronautics Group(Detachment BRAVO),and Ramsey County MN Rochester Olmsted 38 MS Bay St Louis Hancock 38 MS BlloxgGUBpoit Halls= 42 MS Robbeonville Tunics 34 MO Branson Taney 38 MO Hannibal Mahon 34 MO J.&.0.City Cole 34 MO Kansas City Jackson,Clay and Kansas City Intematlonal Airport 46 MO Osage Beach Camden 34 MO Platte Platte(except Kansas City Intonational Alrporl) 38 MO Springfield Green. 34 MO St.Louis St.Louis and St.Charles 50 MO St.RobeNFL Leonatdwaod Pulaski 34 MT Big Sky Gallatin(except West Yellowstone) 4 MT Pol.on/Kalispall Lake and Flathead 34 MT West Yellowstone City limits of West Yellowstone(see Gallatin County) 38 NE Omaha 113ouglas 42 NV lincIlLe Villago/Crystal Bay lCIty limits of Molina Village and Crystal Bay 42 NV Lee Vegas lClark County.Nettie AFe 42 Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) _ :: .. . . . . .. .. .,Mileage and Incidental ExPeiise Per. State Destination)City County London - Diem Rates NV Stanline Douglas(see also South Lake Tahoe,CA) 46 NH Concom Memmact 38 NH Comaay Catmll 42 NH Dome. Staffand 34 NH Nanorer/Sullhnm County Gmnon and Sullivan 38 NH Lamm Belknap 38 NH Mandnster Hillsborough 38 NH Newagton Rockingham Count•Pease MS(except PMamouN) 38 NH Portsmouth City limits of Portsmouth(see Rockingham County) 42 NJ ntic City Atlantic 46 NJ Cape May Cape May(except Ocean City) 46 NJ Chewy Moorestvvm Camden and Burlington 46 NJ Eatommen Monmouth County;Fad Monmouth;(except Freehold) 42 NJ Edison Middlesex(except Piscataway) 34 NJ Flemington Hunterdon 38 NJ Freehold City limits of Freehold(see Monmouth County) 38 NJ Mium, Cumberland! 34 NJ Newark Essex,Bergen,Hudson and Passaic 46 NJ 10=n City City limits of Ocean City(wee Cape May County) 42 NJ Pareppany/PicaBrney Moms 42 Arsenal o er NJ Pacdtawdy/Belle Mead Somerset ant Ciry Iimft of Piscatul 42 NJ PtincetoMmnnn Mincer 46 NJ Tom's River Ocean 42 NJ Union County Union 42 NM Albuquerque Bemarillo 42 NM Cloudctox otam N3U4 NM U.Crum. DonafAna NM ILw Alamos Los Alamos d NM Santa Fe Same Fe 46 NM Taos Tam 38 NY Albany Mb..y 46 NY The BrorWBmddymOueans The boroughs of Tin Bmnx,Brooklyn and Dumtn 46 NY Buffalo 6le J38 NY Glans Falls Warren NY mace Tompkins NY Kmpffm Ulster NY Lake Placid Essex NY endatu n The borough of Manhattan 50 NY Nassau CountylGreat Neck Nassau 46 NY Naga ,Falls Niagara NY HyaWPalisades Rockland 42 NY Owego Txga 34 NY Poughkeepsie Dutchess 42 NY Romastar Monroe 46 NY Smatoge Sp sings San doga 42 NY Staten Island Richmond 46 NY Suffolk County Suffolk 42 NY Symwse Onondaga 38 NY Tarrytown Westchester(except Wtge Plains) 46 NY WaledomRomulus Seneca 3a Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) -" •Mllmge and incldeMal Exgi4me Per;' State Destination,CIty Cou loeatlon '.".Diern Rates . NY Watkins Glen Schuyler 38 NY West Point Orange 38 NY While Plains City limits of White Plains(see Weslohester County) 46 NC Atlantic Beach Darkest 34 NC Chapel Hill Orange 42 NC Cherokee Swain 34 NC Fayetteville Cunno dand 38 NC Greensboro Guilford 42 NC Greenville Pit 34 NC Kill Devil Dare 42 NC Nev,Bemdiavelock Craven 38 INC Raleigh Wake 42 NC Research Triangle Durham 46 PBddDurhem NC Wilmington New Hanover 38 NC Winton-Salem Forsyth 42 OH Akron Summit 42 OH Bellevue Huron 34 OH Cambridge Guernsey 34 OH Cincinnati Hamilton and Warren 50 OH Cleveland Cuyahoga 46 OH Columbus Franklin 42 OH Dayton Montgomery,Wright-Patterson AFB 34 OH Fairborn Greene 38 OH Geneva Ashtabula 38 OH Hamilton Butler 38 OH Lancaster Fairfield 34 OH Pont CardandOak Harbor Ottavrd 38 OH Sandusky Erie 42 OH Toledo Lucas 34 OK Oklahoma City Oklahoma 42 OR Ashland Jackson 46 OR Beaverton Washington 42 OR Bend Deschutes 42 OR Clackamas Gadramas 38 OR Crates,lake Klamath 34 OR Eugene lane(except Florence) 42 OR Flosnce City limits of Florence(sae Lana Coumy) 38 OR Gold Beach Cunt 34 OR Lincoln CltyMewpm Lincoln 38 OR Portland Multnomah 42 OR Seaside Clatsop 38 PA Allentown Lehigh 34 PA CheskerMadnorlEssington Delavrare(except Wayne) 38 PA Easton Northampton 34 PA Ede Erie 34 PA Gettysburg Adams 38 PA Hanisburg Dauphin(except Hershey) 46 PA Hershey City limits of Hershey(see Dauphin(Iounty) 42 PA King of Psssian't. Montgomery 48 WashingtoN6ala Cynwyd PA Lancaster Lancaster 42 ' Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) lleage and Incidental Expense Per State Destination/City County Location Diem Rotas PA M ForyDare.aNe rr mingtowalley Cheats, 42 PA Mechanicsburg Cumbenael 34 PA Philadelphia, Philadelphia 50 PA Pittsburgh alegnony, 46 PA Reading Berks 42 PA Swanton Lackawanna 34 PA Wenninster Bucks County Havel Nr Devaepment Center 35 PA Wayne City limits of Wayne(we Delawam County) 46 RI East Greenwich Kent County,Naval Construction Battalion Comer,Davisviw 42 FNewton Nevgon 46 NOM Kingstw.n Washington Pmvldence Proidence 46 Man Nken 34 ChadesheuSeMeey County Charleston and Be"ley 42 Columbia Richland 34 Greenville Gre.1118 42 Hilton Head Beaufort 46 Myra.Beach Homy County;Myrtle Swch We 48 Carter Custer 34 SD Hot Stange Fall River 34 SD RaPid City Pennington 34 SD Sturgis Meade TN Akoa/Townwnd Blount 3d TN Gatlinburg sevler 42 TN Memphis Shelby 42 TN MUHrwebao Rutherford 34 TN Na,mAle Davidson 46 TN Williamson County Wlllamson 34 TX Nnaallo Porter 34 TX MingtoNGrepavice Tarrant 38 TX Austin Travis 42 TX Bryan Brazos(except Wiese Station) 34 TX Cotlage Sudden City limits of College station lees Bronx,County) 38 TX Corpus Chase Nueces 42 TX Dallas Dallas 46 TX El Paso El Paso 34 TX FM Dews Jeff Davis 34 TX Fon WOM City limits W Forl WOM 42 TX GaNesbn Galveston 46 TX Granbury Hood TX Houston Harris County;LA.Johnson Space Career and Ellington AFS. 46 TX K41oen Ball 34 TX Laredo Webb 34 TX McAllen Hidalgo 38 TX Pan. Colic 1 35 TX San mumit, Bexar I I M TX South Padre Island Cameron 36 TX Waw Mclennan 34 UT Builtrop Garfield 34 lJr Cedar Coy Iron 38 U7 Mwb Grand 3B Denotes separate cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) Mileage and lneideMarExPense�er State ' DesUnatloN C Cou 4oeagon Dlem Rates UT Oqd rutaytovDavia County Weber and Davis 38 UT Pam city summit 46 UT P. Wan 42 UT Salt Lake City Salt Lake 38 VT BurlingtoNSL Albans Chittenden mki Franklin 38 VT Manchester Bennington 46 VT Middlebury Addison 42 VT Montpelier Washington 34 VT WNW River Junction Windsor 34 (For the cities of Aknumcra,Fairfax,and Falls Church,and the counties of Arington,Fairfax,and VA Loudom.a.District Columbia.) 80 VA Charoresvllle• 46 VA Colonial Heights' 34 VA Dmwiddle County Dlnwiddle 34 VA Fredreksburg Spotsylvanlaand Stafford VA Hopewell 34 VA Lynchburg' 42 VA ManassasANoodbridge Prince William 38 VA Petersburg 34 VA Prince George County Prince George 34 VA Richmond' Chesterfield and Hen ico Counties 42 VA Roanoke' 38 VA Virginia Beach' Virginia Beach(also Norfolk,Portsmouth and Chesapeake)• 42 VA Wallops Island A=.& 38 Williamsburg(also Hamplon,Newport News.York County,Naval VA Williamsburg' Weapons Station.Yombvm)' 42 VA Wintegresn Nelson 46 WA macenes Skagit and Island 42 WA Bremerton loaap 38 WA lEverraft Snohomish(except Lynnewd) 42 WA IFnday Harbor San Juan 46 WA Lymumod City limits of Ly eavadd(sea Snohomish County) 38 WA Ocean Shores Greys Harbor 42 WA OlymptaRumwzter Thurston 42 WA Pon Angeles City limits o!Port Angeles(see Clallam County) 42 WA Pon Tovmsentl Jefferson 38 WA Seattle Igng 50 WA Sequin, Clallam(except Pod Angeles) 38 WA Spokane Spokane 42 WA Tacoma Pierce 34 WV Berkeley Springs Morgan 38 WV Cmdeston l(arawha 42 WV Marirtsbug8tedgesvee Berkeley 34 WV Morgantown Monongalia 38 WV Shepherdstown Jefferson 38 WV Wheeling Ohio 38 WI BmokBeM Waukesha 42 WI Green Say Brwm 38 WI Lake Geneva Walwonh 42 WI Lake Geneva lWalvanth 42 Denotes separeta cities FY 2003 Domestic Per diem Rates (Effective October 1, 2002) -- I MIh9evndincTdenW-Scpense PEri State .DastinatioNC County Location - Diem Rates WI Madison Dane 42 WI MlMaukea MiMeukee 46 WI Radm Racine M WI Sheboygan Sheboygan u WI SWrgeon say Door 442E WI Wisconsin Dens cd..M WY Cody nark 34 WY dads Teton 46 Denotes separate cities FAHR COMMITTEE Meeing Date TOBd.Or Dr. u113102 a/zo/oz AGENDA REPORT Item Numbe It Number Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Lisa L. Tomko, Director of Human Resources SUBJECT: AMENDED AND RESTATED AGREEMENT WITH THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM RE: ADDITIONAL RETIREE BENEFIT ACCOUNT GENERAL MANAGER'S RECOMMENDATION Approve Amended and Restated Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System (OCERS), providing for segregation of a portion of the ARBA funds to a trust fund for the benefit of current and future retirees, in a form approved by General Counsel. SUMMARY In 1995 OCERS and the District established the Additional Retiree Benefit Account (ARBA)to distribute excess OCERS earnings to retirees. The 1937 Retirement Act does not permit these earnings to be distributed to employees or to employers. The ARBA is a portion of the OCERS Unallocated Fund Balance and is available for OCERS to use to post"interest earnings"to the other funds if necessary. Over$160 million of these ARBA funds were so diverted on June 30, 2002 due to poor investment portfolio performance. A similar diversion is expected on December 31, 2002. Rather than to let the ARBA be more dramatically reduced or even depleted, OCERS has offered new agreements. These agreements would segregate some ARBA funds so that they would not be available for"interest earnings" in other accounts. This new fund would provide a cushion and a window for agencies to evaluate future funding in the event the ARBA were depleted. PROJECT/CONTRACT COST SUMMARY Current costs would be limited to staff time and services of General Counsel necessary to complete an Amended and Restated Agreement. These are expected to be minimal as the County and OCERS have already adopted an Agreement that could be used as a model or a template. r 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) ADDITIONAL INFORMATION The Orange County Employees Retirement System and the County of Orange entered into an agreement to use excess earnings in the OCERS Unallocated Fund Balance (UFB)to provide retirees with funds for health care insurance in 1992. A similar agreement was executed by the District in 1995. The monthly benefit is $10 for every year of service, with a maximum of$250 per month. The original agreements and the related MOUs with employee groups included a method to fund the benefit. This funding was to come from a simultaneous 1% salary increase and payroll deduction. In 1996, however, it was determined that the ARBA fund balance was increasing at such a rate that the additional funding was not required. Subsequent to the meet and confer process the Board and OCERS modified the 1995 Agreement to delete the 1%funding provision. The ARBA account continued to grow as a part of the UFB as OCERS experienced investment portfolio income exceeding the actuarial assumptions for the rest of the 1990s. In more recent years, however, the UFB has been used to make statutorily required "earnings" deposits into other OCERS funds. As of December 31, 2001, the balance in the combined ARBA accounts was $363 million. There were no other funds in the UFB. On June 30, 2002 when the "earnings" deposits were required, nearly half of the ARBA was used. The OCERS Chief Executive Officer has advised us that a similar need may exist at December 31, 2002. This would dramatically reduce the ARBA balance. OCERS has proposed establishing a new account for a portion of the remaining ARBA monies. This new account could not be used to make up for portfolio losses in the other accounts and funds. The County of Orange has already executed such an agreement. This new account would provide a more stable ARBA. It would only be used if there were not enough funds in the UFB to make the benefit payments. It would increase if the end of year UFB was above certain parameters. The District is not required to make any contributions to the new account. If the funds in the new account were to be used, the District would have time for the meet-and-confer process to determine future funding methods or to let the fund deplete. GM EWe Wd8YAHMFAHnW2VW2 Ape Redd sU-IN OCERSE R W W=1 Page 2 v ALTERNATIVES Continue the existing ARBA Agreement with funds available for other OCERS' purposes and no notification to the District if the account was being depleted. Continue the existing ARBA Agreement and adopt a funding method through the meet and confer process. Deposits would be available for other uses by OCERS. CEQA FINDINGS N/A ATTACHMENTS Preliminary draft agreement supplied by OCERS GGS:lc O Yxp.E101a90^W�F�HkffPHR300RW2 FPMa nep W-IU OCERS Erc ft w :WWI Page 3 Y.. AMENDED AND RESTATED AGREEMENT RE: ADDITIONAL RETIREE BENEFIT ACCOUNT This Amended and Restated Agreement re Additional Retiree Benefit Account ("Agreement')dated , 2002 is entered into as of the Effective Date, as defined herein, by and between , a public agency of the State of California("DISTRICT"),and the Orange County Employees Retirement System, a public retirement system organized and existing pursuant to the provisions of the County Employees Retirement Law of 1937,as amended ("OCERS"or the"retirement system"). DISTRICT and OCERS are sometimes referred to herein individually as"Party"and collectively as'Tarties." RECITALS A. OCERS provides and administers a program of retirement benefits for the employees and retirees of the County of Orange("County") and certain other public agencies located within the County that participate in OCERS, including DISTRICT,pursuant to Government Code Sections 31450, et seq. ("CERL')and other applicable law. B. DISTRICT and OCERS are parties to an ARBA Agreement, dated , concerning the funding of a[health)[supplementalj benefit program for retired employees of the DISTRICT who are members of OCERS, and their eligible beneficiaries(the"DISTRICT ARBA Agreement')and other matters. C. The County and OCERS have entered into an Amended and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account,dated August 27, 2002("County ARBA Agreement'),a true and correct copy of which is attached hereto as Exhibit A for reference. D. DISTRICT and OCERS wish to amend and restate the DISTRICT ARBA Agreement,to be consistent with the County ARBA Agreement, and to accomplish other objectives of the parties, as more particularly set forth herein. AGREEMENT NOW,THEREFORE, for good and valuable consideration,the existence and sufficiency of which the Parties hereby acknowledge, IT IS HEREBY AGREED AS FOLLOWS: 1. Recitals. The foregoing RECITALS are true and correct and are incorporated herein by this reference. 2. Amendment and Restatement of the ARBA ARreemenl. The Parties hereby agree to amend and restate the DISTRICT ARBA Agreement in this Agreement This Agreement is intended to and shall supercede the DISTRICT ARBA Agreement in its entirety. Upon this Agreement becoming effective,the DISTRICT ARBA Agreement shall be null and void and of no further force or effect. 10990:6318165.2 -1- 3. Intent of this Aareement. The intent of this Agreement is (a)to use a portion of DISTRICT Advance Reserves(as defined herein), as authorized by Section 31592.2 of CERL, to provide a source of funding to help defray the cost to the DISTRICT of providing [health][supplemental] benefit grants to its retired employees who are members of OCERS and their eligible survivors, and for reasonable expenses of administration of the benefit program, while minimizing employer contributions to the retirement system; and(b)to make the DISTRICT ARBA Agreement consistent with the County ARBA Agreement. 4. Definitions. The following terms shall have the following definitions in this Agreement. "Additional Retiree Benefit Account"or"ARBA"is a portion of the Unallocated Fund Balance(as defined herein)originally established by the ARBA Agreement, as defined in the County ARBA Agreement, comprised of the Members' Share of Transferable Funds(as defined herein)designated to help defray the cost to the County and other districts, including DISTRICT,of providing [health][supplemental] and other benefit grants to thew retired employees who are members of OCERS and their eligible survivors,and for reasonable expenses of the employers' administration of their benefit grant program. As of June 30, 2002 the balance of the Additional Retiree Benefit Account was approximately S "Employer Advance Reserves"is the reserve account in the retirement fund comprised of(a)the contributions made into the fund from time to time by the County and other employers, net of benefit payments, (b)the Employers' Share of Transferable Funds(as defined herein), (c)the County and Employer RMBR Accounts(as defined herein), and(d) accumulated investment earnings on all of the foregoing. "Employer Advance Reserves"has the same meaning as the"County Advance Reserves"as defined in the County ARBA Agreement. "DISTRICT Members' Share of ARBA"is that portion of ARBA held for the benefit of retired employees of the EMPLOYER who are members of OCERS and their eligible.survivors. "Effective Date"shall have the meaning set forth in Paragraph 14 of this Agreement. "Investment Account"shall have the same meaning as set forth in the County ARBA Agreement. "Net Applicable Assets" is the total book value of assets of the retirement system less the Unallocated Fund Balance(as defined herein),true payables(as determined from time to time by OCERS' actuary), the Investment Account, the ARBA, and reserves established by the Board of OCERS. "Net Unallocated Fond Balance"or"Net UFB"is the Unallocated Fund Balance(as defined herein) less amounts in the ARBA and other reserves, including the UFB Reserve (as defined herein),designated by the Board of OCERS. 1OM:63181651 -2- V "County and District RMBR Accounts"are those portions of the Employer Advance Reserves maintained exclusively for the purpose of providing a source of funding to help defray the cost to the County, the DISTRICT and other employers participating in OCERS of providing health and supplemental benefit grants to their retired employees who are members of OCERS and their eligible survivors,and for reasonable expenses of the County, and other districts' administration of their benefit grant programs. The DISTRICT's portion of the County and Employer RMBR Accounts shall be referred to herein as the"DISTRICT RM13R Account" "Unallocated Fund Balance"or"UFB"is the fund created by earnings of the retirement fund during any year in excess of(a)the total interest credited to contributions and reserves during such year,pursuant to Sections 31592 and 31592.2 of CERL, and(b)amounts determined by OCERS for deficiencies in interest earnings in other years, losses on investments and other contingencies, as provided in Sections 31592 and 31592.2. "Valuation Date"shall be the 31"day of December each year for which OCERS' actuary prepares an annual valuation for purposes of establishing employer and employee contributions into the retirement fund for the fiscal year commencing on the next following July 1. 5. Initial RMBR Transfer. As of the Effective Date,OCERS shall establish and maintain a DISTRICT RMBR Account as a sub-account of the Employer Advance Reserves, and shall transfer on its books the sum of S from the AR13A to the DISTRICT RM 3R Account. This sum is the amount determined by OCERS' actuary to represent three(3) years' projected costs of the portion of DISTRICT grants to be funded pursuant to this Agreement, under the DISTRICT's program of providing[health][supplemental]benefit grants to retired employees of the DISTRICT who are members of OCERS and their eligible survivors, plus reasonable expenses of the administration of the(health][supplemental]benefit program. The funds in the DISTRICT RM 3R Account shall be used exclusively for the purposes and in the manner set forth in Paragraph 10,below. 6. UFB Reserve. OCERS has established a policy of maintaining a reserve against deficiencies in interest earnings in other years, losses on investments and other contingencies, as provided in Sections 31592 and 31592.2,of five percent(5%)of the Net Applicable Assets(the"IJFB Reserve"). The Parties acknowledge that the Board of OCERS may change the percentage level of the UFB Reserve from time to time, and that in the event the level of UFB Reserve changes,the change shall have no effect on the other provisions of this Agreement. 10990:6319165.2 -3- 7. Transfers to Employer Advance Reserves and ARBA. a. As of the Valuation Date each year,OCERS shall determine,upon the advice of its actuary, if there is available Net UFB in excess of funds to be transferred into the DISTRICT RMBR Account as required under Paragraph 10b.,below. Such available funds shall be known as the"Transferable Funds." The Transferable Funds shall be divided in the manner set forth in Paragraph 7b.,below,resulting in the DISTRICT's Share of Transferable Funds and the DISTRICT Members' Share of Transferable Funds. OCERS shall transfer on its books the DISTRICT's Share of Transferable Funds to Employer Advance Reserves. OCERS shall transfer on its books the DISTRICT Members' Share of Transferable Funds to the DISTRICT Members' Share of ARBA. b. The DISTRICT's Share of Transferable Funds shall be determined in the following manner. (1) First,by multiplying the Transferable Funds by a fraction,the numerator of which is the amount of all employer contributions to OCERS during the ten (10)calendar years immediately preceding the Valuation Date, and the denominator of which is the total of all employer and employee contributions to OCERS made during the same period. The result shall be known as the"Employers' Share of Transferable Funds." The balance of Transferable Funds shall be known as the"Members' Share of Transferable Funds." (2) Second,by multiplying the Employers' Share of Transferable Funds by a fraction,the numerator of which is the amount of all employer contributions to OCERS made by the DISTRICT during the ten(10)calendar years immediately preceding the Valuation Date,and the denominator of which is the total employer contributions to OCERS made by the County,the DISTRICT and other participating districts during the same period. The result shall be the"DISTRICT's Share of Transferable Funds"and shall be distributed as set forth in Paragraph 7a, above. c. The DISTRICT Members' Share of Transferable Funds shall be determined by multiplying the Members' Share of Transferable Funds by a fraction,the numerator of which is the amount of all employee contributions to OCERS made by DISTRICT's employees during the ten (10)calendar years immediately preceding the Valuation Date, and the denominator of which is the total employee contributions to OCERS by the employees of the County, the DISTRICT and other participating districts during the same period. The result shall be the"DISTRICT Members' Share of Transferable Funds"and shall be transferred on OCERS' books as set forth in Paragraph 7a.,above. d. The remaining, untransferred balances of the Employers' Share of Transferable Funds and the Members' Share of Transferable Funds shall be held in separate sub- accounts of UFB, for the purpose of funding health and supplemental benefit programs administered by other districts participating in OCERS, pursuant to separate agreements to be entered into by and between such districts and OCERS. IOM:6318165.2 -4- 8. Transfers from AREA for Retiree [Healthl[Sunolementall Benefits. For each fiscal year in which the DISTRICT provides a program of[health][supplemental]benefits to retired employees of the DISTRICT who are members of OCERS and their eligible survivors, OCERS shall transfer on its books from ARBA into Employer Advance Reserves an amount, subject to availability, sufficient to pay for the portion of the [health][supplemental] benefit grants to be funded pursuant to this Agreement which the DISTRICT provides to retired employees of the DISTRICT who are members of OCERS and their eligible survivors,and for reasonable expenses of the administration of the[health][supplerrental] benefit program during that fiscal year. 9. Interest Creditine on Accounts. OCERS shall credit interest on AREA at the assumed rate of interest as established by OCERS from time to time,currently eight percent (8%)per annum;provided.however,that such interest is available for crediting from Net UFB. OCERS shall not credit interest on the DISTRICT RMBR Account. 10. DISTRICT RMBR Account: Shortfalls in ARBA. a. The DISTRICT RMBR Account shall be used by OCERS exclusively as a reserve against a deficiency in the DISTRICT Members' Share of AREA. To the extent that in any fiscal year,the DISTRICT Members' Share of AR13A is insufficient or unavailable to provide the full amount required to be transferred to Employer Advance Reserves pursuant to paragraph 8,above(an"ARBA Shortfall',OCERS shall transfer on its books an amount equivalent to the ARBA Shortfall from the DISTRICT RMBR Account to Employer Advance Reserves for the exclusive purpose as set forth in paragraph 8 above. b. As of each Valuation Date,on the advice of its actuary, OCERS shall maintain a balance in the DISTRICT RMBR Account not less than an amount determined by OCERS' actuary to represent three(3)ensuing fiscal years' worth of projected costs of the portion of the[health][supplemental] benefit grants provided by the DISTRICT to be funded pursuant to this Agreement,plus reasonable expenses of administration of the [health][supplemental] benefit program during those fiscal years(the`Safety Level.") In the event that the balance of the DISTRICT RMBR Account at any time is less than the Safety Level,OCERS shall transfer out of first available Net UFB sufficient funds to return the DISTRICT RMBR Account to the Safety Level. This transfer shall occur prior to the transfers referred to in Paragraph 7,above. 11. Shortfalls in Net Unallocated Fund Balance. As of June 30 and December 31 of any fiscal year, if OCERS' earnings are insufficient to credit the assumed rate of interest to all statutory reserves, such deficiency shall be made up at that time by transferring funds out of the UFB. If such transfer results in a Net UFB of less than three percent(3%)of Net Applicable Assets,then all employer contributions to OCERS shall be increased during the immediately following fiscal year by an amount which is the lesser of(a)the amount necessary to restore the Net UFB to three percent(3%) of Net Applicable Assets or(b)an amount equal to one-half of one percent(1/2%)of employer payroll subject to retirement contributions. 10990:6318165.2 -5- f 4 12. Further Actions. Each Party shall take all actions and do all things,and execute,with acknowledgment or affidavit if required,any and all documents and writings,that reasonably may be necessary or proper to achieve the purposes and objectives of this Agreement and the transactions contemplated hereby. 13. Termination Date, Renewal. a. The term of this Agreement shall be through and including December 31,2007,the second anniversary of the tri-annual actuarial valuation of the retirement system performed by the system's actuary as of December 31, 2001; provided, however, that this agreement may be terminated sooner than December 31, 2007 if either the governing body of the DISTRICT or the Board of Retirement of OCERS determines, in the sole and exclusive exercise of its duties,that it does not wish this Agreement to remain in force beyond the end of the calendar year in which such determination is made. In the event of such determination,the determining body or Board shall give the other not less than 60 days written notice in advance of the end of that calendar year of its desire for earlier termination, and this Agreement shall thereafter terminate effective at midnight on December 31 of that year. b. Following the effective date of termination, (i) all funds remaining in the DISTRICT RMBR Account shall remain in that account,without further credit for interest, and shall be used for the purposes and in the manner provided for under Paragraph 10 of this Agreement after termination of this Agreement for so long as they are available; (ii) all funds remaining in the DISTRICT Members' Share of ARBA shall be deemed to be Net UFB and there shall no longer be any funds designated as DISTRICT Members' Share of ARBA; and(iii) OCERS shall have no further obligation to transfer on its books any funds pursuant to this Agreement. c. Notwithstanding the foregoing subparagraph (a),the Parties may mutually agree to extend the term of this Agreement in such interval(s) and upon such terms as they may later agree upon in a writing executed prior to the termination of this Agreement. 14. Effective Date. This Agreement shall be effective as of the date on which all Parties have signed this Agreement. 15. Entire Aareement. This Agreement represents the Parties' entire agreement and constitutes the only existing and binding agreement between them with respect to the matters stated herein. This Agreement supersedes any and all prior agreements, representations,promises and understandings of any kind,whether oral or written, express or implied,between the Parties regarding the subject matters of this Agreement. Nothing herein is intended to nor shall affect any party's rights and obligations under CERL. In entering into this Agreement, each Party disclaims any reliance upon any representation, fact or opinion that is not otherwise set forth in writing in this Agreement. Each Party hereby waives any rules of interpretation or construction contained in California Civil Code§ 1654. 16. Survival. The terns and conditions of Paragraphs 6, 1 O.b., 11, 14, 15 and 17 of this Agreement shall survive its termination. 10990:6318165.2 -6- 0 17. Modification. This Agreement may not be modified, altered, amended or otherwise changed in any respect except by a writing duly executed and signed by each Party. 18. Authority to Execute Agreement. Each Party represents and warrants that the person executing this Agreement on its behalf as indicated below has full power and authority to do so. Dated: 12002 Dated: , 2002 BOARD OF RETIREMENT OF THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM By: By: Chair, Board of Retirement APPROVED AS TO FORM: APPROVED AS TO FORM: Dated: 12002 Dated: ,2002 ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM By: By: JulieE. Wyne General Counsel 10990:6318165.2 -7- FAHR COMMITTEE M-" Date Tusd.crwr. 11/13/02 11/ZO/02 AGENDA REPORT Item Number Item Number FAHR02-105 AM Orange County Sanitation District FROM: Gary G. Streed, Director of Finance SUBJECT: FINANCIAL CONSOLIDATION OF REVENUE AREA 7 GENERAL MANAGER'S RECOMMENDATION Approve the books and accounts of Revenue Area 7 be combined with those of the rest of the Orange County Sanitation District, except for Revenue Area14, and that future revenues, expenses and capital outlays be considered those of the consolidated Orange County Sanitation District effective July 1, 2003. SUMMARY The Directors took actions in 1998 and 2000 to consolidate the nine County Sanitation Districts into the Orange County Sanitation District. The financial books and records of Revenue Area 7 (RA7) and Revenue Area 14 (RA14) were not consolidated at those times. RA14 continues to be fully funded by the Irvine Ranch Water District and it is necessary to maintain separate accounting records in order to accurately charge them for operations, maintenance and capital improvements. The situation for RAT however, has changed. RA7 was not combined in 2000 because of some unique qualities and related changes that were being considered. These differences are now nearly resolved and it is appropriate to consider completing the consolidation process. PROJECT/CONTRACT COST SUMMARY There are minor administrative costs involved in changing the accounting for RAT These will be more than offset by the staff time saved in the future by not maintaining separate books and not preparing separate budgets for the area. There are no LAFCO, legal or other outside costs from this action. 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) ADDITIONAL INFORMATION Please see attached staff report ALTERNATIVES 1. Continue to maintain separate books and records for this area. 2. Defer this action until local sewers are transferred to another agency. CEQA FINDINGS N/A ATTACHMENTS 1. Staff Report GGS:Ic G 1,dlal gende6AHRTAHM002=2 AWnds RepMfWA105.ReMnue Mee)d% RemW WW1 Page 2 Op November 13, 2002 STAFF REPORT Completed Financial Consolidation of Orange County Sanitation District Including RA7 within the Financially Consolidated District Background In 1998 the nine County Sanitation Districts of Orange County consolidated to form the Orange County Sanitation District. This consolidation was the result of much study and debate and was intended to provide several benefits to our customers. They were expected to benefit from a more direct governance structure in which their elected representative would have a direct voting impact on matters before the Board. Each Director would have one vote per issue rather than one vote per represented district. They were expected to benefit from an improvement in service delivery as staff and financial resources could be directed throughout the service area without regard for artificial district boundaries. Finally, they were expected to benefit from the reduced number of governmental shadow agencies through a more easily understood and explained governance structure and resultant reduced costs of administration. This consolidation was the first step in providing truly regional service by a truly regional agency. A second step was taken in 2000 when seven of the nine former districts, now called revenue areas, voted to combine their books and records and to utilize a single financial plan. This step nearly completed the"regionalization" of the Sanitation District as the annual sewer service user fees and the connection fees(capital facilities capacity charges) could now be uniform throughout those areas,just as the service that was provided was uniform. This regional approach to fees is sometimes referred to as the "postage stamp"approach. The two revenue areas that did not combine their financial plans were RA7 and RA14. RA14 is the area that is also served by the Irvine Ranch Water District(IRWD). The area is unique in our service area in that It is served by two agencies with sewage treatment capability. It is nearly unique in two other areas: that the entire service area has only one water provider, and that we receive none of the ad valorem property tax. In this service area we bill the IRWD directly for the service area's share of operations and maintenance expenses as well as the capital improvement program. No change is proposed to this arrangement. The property owner/user receives one bill for sewer service, from IRWD, the sewage may go to either an IRWD facility or to an OCSD facility and the OCSD receives reimbursement for the full share of costs from the IRWD. Revenue Area 7 In RA7, however, the recommendation is different. Staff is recommending that RA7 combine its books and records with those of the other consolidated revenue areas and adopt a unified financial plan including sewer service user fees and connection fees. Revenue Area 7 includes parts of the cities of Tustin, Irvine, Orange, Newport Beach and Santa Ana as well as some major unincorporated areas. In 1986,then District No. 7 took over the responsibility for local sewer service from the Seventh and Seventieth Sewer Maintenance wf n Po i YAm n FniiMn vmm fAAJ "," n 11141MN?411 RA7 Inclusion - OCSD Consolidated Districts Page 2 of 3 i November 13, 2002 Districts which had been administered by the County. This action made District No. 7, RA7, unique amongst the Sanitation Districts as being the only one responsible for local sewer system maintenance, rehabilitation and replacement. Local sewer systems are generally owned and operated by a city, sanitary district or water district. This is the case in all of the other revenue areas and in some parts of RAT The areas generally and loosely described as the City of Tustin, Irvine Business Center and unincorporated areas comprise the former Sewer Maintenance Districts. Neither the cities of Tustin or Irvine nor the County of Orange own any local sewers. This area also includes the Tustin Air Base formerly owned by the U.S. Marines. Much of the area in the former Sewer Maintenance Districts receives water service from the Irvine Ranch Water District. This includes all of the Irvine Business Center, parts of Tustin, and parts of the unincorporated areas. The City of Tustin and the IRWD have agreed that IRWD will also provide water service to the Tustin Air Base as that area develops. As directed by the Board, staff has been working with the staff of IRWD to transfer the former Sewer Maintenance District service area from RA7 to RA14 in order to establish a single agency as the provider of water and local sewer service, to simplify the public's contact with utility providers and to remove local sewer service from the OCSD responsibilities. This pending transfer of facilities, assets, liabilities and property taxes was the major reason that RA7 was not included in the financial plan and program consolidation of 2000. Today the transfer is imminent. Draft agreements are in the review stage, conceptual agreement between staffs has been reached and only the financial details need to be finalized. A transfer that is fair and agreeable to both agencies will be brought to the Directors in the next couple of months. Recommendation With this transfer ready complete, it is time to once again consider the complete financial consolidation of the District to provide true regional sewer service in accordance with a regional "postage stamp"financial plan. The political consolidation is already complete; each of the 25 Directors votes equally on matters affecting RA7,just as they do for all other matters. For the past two years, the sewer service user fees and the connection fees in RA7 have been the same as those in the rest of the District. A review of a few statistical comparisons shows that including RA7 in the financially consolidated OCSD is appropriate. RA Net Assets Not Assets Not Assets SFR Total No. Per Capita Per MGD Per EDU Fee EDUs 7 $580 $3.60 $900 $87.50 102,400 1-13 380 4.00 1.000 87.50 787,700 Staff recommends that we move forward to include RA7 within the financially consolidated OCSD beginning with the 2003-04 fiscal year. This would include preparing a single budget for all of the consolidated revenue areas. RA14 would continue to pay its share through a direct billing to the IRWD for all flows that originate in their service area. Staff would continue to maintain the books of account separately for RA7 until the transfer of the former Sewer Maintenance District areas to RA14 is complete. This action does not order the transfer of those assets or the service responsibility. That will be the subject of a future agenda report. GGS:Ic FAHR COMMITTEE Meeting Dan! ToBd.ofDir. 11/13/02 11/20/02 AGENDA REPORT Item Numbs nen Numbs FAHR02-106 14(k) Orange County Sanitation District FROM: Lisa Tomko, Director of Human Resources Originator. Jan Collins, Senior Human Resources Analyst SUBJECT: 2002 NOVEMBER RECLASSIFICATIONS GENERAL MANAGER'S RECOMMENDATION Approve the reclassification of eight District employees and nine positions. SUMMARY According to Human Resources Policy and Procedure Number C10.10, reclassification requests are considered twice a year, during the annual budget process and again in November. Reclassification paperwork was submitted on a total of eighteen positions;fifteen of these positions have incumbents and three of these positions will be posted for promotional opportunities. Human Resources reviewed the justification for each position and spoke with the appropriate Department Head for concurrence. Human Resources is recommending that seventeen of the requests be approved (Attachment 1). Seven of the requests will result in classification changes for current employees effective immediately. These seven employees have met the four criteria outlined in the Reclassification Guidelines which are summarized below: 1. The incumbent has been in the position that has been reclassified for at least 6 months 2. The incumbent is qualified for the classification to which the position was classified 3. The incumbent has been performing the duties of the classification to which the position was classified for at least 6 months 4. The incumbent's classification is not being reclassified from a non-supervisory to a supervisory classification Ten of the requests will result in future reclassifications (minimum requirements and successful completion of tests must be achieved)or promotional opportunities (adhering to Human Resources Policy and Procedure B150.00). PROJECT/CONTRACT COST SUMMARY The annualized cost for the salary increases as a result of the reclassifications is $55.100. The additional cost for the remainder of FY02103(November 291°to June 30°i) is $32,100. BUDGETIMPACT ❑ This item has been budgeted. (Line item:Wages and Salary) ❑ 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 Employees will not be reclassified and their duties will be reviewed and adjusted to be consistent with their current classifications. Vacant positions will remain the same. CEQA FINDINGS N/A ATTACHMENTS 1. Reclassifications Submitted For November 2002 Cycle c`+roauav��rwmrwnzaoz�wz cyema neponsm-+asnmasasmwve� Page 2 RECLASSIFICATIONS SUBMITTED FOR NOVEMBER 2002 CYCLE FY02103 Employee Division Current Title Proposed Title Recommendation Costs Kardos, Dionne 130 Graphics Coordinator II Public Information Specialist Approve reclassifying employee to lower graded $0 position Four positions 420 Maintenance Worker Mechanic Approve upgrading of positions,employees will only $8,900 be reclassified once the minimum requirements are met and successfully completing all phases of testing Two positions 420 Mechanic Senior Mechanic Approve upgrading positions for posting as promotions $8,200 Three positions 420 Lead Collection Facilities Worker Lead Mechanic Approve upgrading of positions,employees will only $9,300 be reclassified once the minimum requirements are met and successfully completing all phases of testing One position 430 Senior Mechanic Lead Mechanic Approve upgrading position for posting as promotion $2,900 Tsai,Yu-Li 632 Scientist Senior Scientist Approve reclassifying employee $4,300 Christensen, Kelly 640 Principal Environmental Specialist Source Control Supervisor Denied,cannot be reclassified from a non-supervisory $0 position to a supervisory position per guidelines Gaworski,Tom 640 Senior Environmental Specialist Principal Environmental Specialist Approve reclassifying employee $3,500 Seiler, Merrill 640 Senior Environmental Specialist Principal Environmental Specialist Approve reclassifying employee $3,500 Tran, Jane 640 Associate Engineer III Engineer Approve reclassifying employee,has received PE $4,400 Rodriguez, David 820 Associate Engineer III Engineer Approve reclassifying position,employee to be $6,700 reclassified after performing duties of Engineer for at least 6 months Hinshaw, Ronald 860 Electrical Technician II CMMS Technician II Approve reclassifying employee $3,400 $55,100 g:ezcel:hr.540:redassifimdws nov2002 11/5/2002 )� MINUTES OF MEETING OF JOINT GROUNDWATER REPLENISHMENT SYSTEM COOPERATIVE COMMITTEE ORANGE COUNTY SANITATION DISTRICT AND ORANGE COUNTY WATER DISTRICT October 14, 2002, 5:30 p.m. Committee Chair Pickier called to order the Joint Cooperative Committee for the Groundwater Replenishment System at 5:45 p.m. on October 14, 2002 in the Boardroom at OCWD. Following the Pledge of Allegiance to the Flag, the roll was called and the Recording Secretary reported a quorum as follows: OCSD Directors OCWD Directors Norm Eckenrode,Vice Chair Iry Pickier, Chairman Shidey McCracken Phil Anthony Russell Patterson Larry Kraemer Brian Brady,Alternate No. 2 Kathryn Barr,Alternate No. 1 Laurann Cook,Alternate No. 3 Brett Franklin,Alternate No. 3 Staff and others in attendance were: OCSD OCWD Others Steve Anderson Directors Paul Brown, Bruce Chalmers, Dick Corneille Staff. Jan Debay —Camp Dresser& McKee Inc. Blake Anderson Wes Bannister Dave Mosher—Montgomery Watson Harza Jim Herberg Dennis Bilodeau Dennis MacLain—City of Huntington Beach Lisa Murphy Jerry King Mike Jouhad—City of Anaheim Bob Ooten Staff: John Collins-City Councilmen of Fountain Valley Wendy Sevenandt Virginia Grebbien Debra Bums— DDB Engineering Counsel: Steve Conklin Patrick Scanlon—So CA Water Co. Brad Hogin Joanne Daugherty Bob McVicker—MCWD Shivaji Deshmukh Annette McCluskey—Porter Novelli Bill Everest Bob Finn—Brown& Caldwell Jill Everhart Jim McKibben—Westin Engineering John Kennedy Heather Wells—Emerson/Westinghouse Clark Ids Heather Somers Larry Labrado Fred Bockmiller-Citizen Mike Markus Rafael Mujedego—Professor in Residence Mehul Patel Lily Pham Laura Thomas Ran Wildermuth Mr. John Collins, Fountain Valley City Councilmen, commended Wendy Sevenandt, OCSD Engineer, for the GW R System presentation that she gave last month at the Tri-State Conference in Laughlin, NV. CONSENT CALENDAR (ITEM NOS. 1 THROUGH 4) The Consent Calendar was approved upon motion by Director Eckenrode, seconded by Director McCracken and carried, as follows: - 1 - Joint GWR System Cooperative Committee Minutes ; October 14, 2002 `� 1. Minutes of the September 16, 2002 Joint Cooperative Committee approved as mailed, with Director Kraemer abstaining. 2. Award of Process Control System Pre-Selection Contract Recommend approval at the October 16 OCWD Board Meeting and the October 23 OCSO Board Meeting: A. Approve Emerson/Westinghouse Process Controls Inc. as the process control system (PCS) supplier for the Groundwater Replenishment System based on lowest calculated present worth life cycle cost of $2,369,916; and B. Approve a Pre-Selection Agreement between OCWD and Emerson/Westinghouse for engineering services in the amount of $312,110, and a pricing structure for PCS equipment to be procured under future contracts valued at $1,640,132 all for a total not to exceed $1,952,242; and C. Approve a Task Order between OCWD and Emerson/Westinghouse Process Controls Inc. to provide engineering services for the PCS design and standards development for a total amount not to exceed $312,110 (to be split equally). 3. Property Acquisition for Well Site — 1-31 Recommend approval at the October 16 Board the following: A. Authorize execution of Purchase Agreement with Huntington Beach Baptist Church for easement required for GWR System Well Site No. 31 in the amount of$255,000 plus escrow charges (to be split equally); and B. Authorize acceptance of Easement Deed and consent to the recordation thereof; and C. Authorize execution by the General Manager of any other documents necessary to convey legal title of such property to OCWD. 4. Award Of Contract No. GWRS-2001-3, Southeast Barrier Pipeline Proiect Recommend approval at the October 16 OCWD Board Meeting and the October 23 OCSD Board Meeting the following: A. Receive and file Affidavit of Publication of Notice Inviting Bids; B. Ratify issuance of Addendum No. 1 ; and - 2 - Joint GWR System Cooperative Committee Minutes October 14, 2002 C. Accept bid and award Contract No. GWRS-2001-3, Southeast Barrier Pipeline Project, to Mladen Buntich Construction Co., Inc., for the amount of$ 3,381,000 (to be split equally). MATTERS FOR CONSIDERATION 5. Proiect Schedule and Budoet Update Workshop OCWD General Manager Virginia Grebbien reported that a final refinement of the project schedule and an evaluation of strengths and weaknesses regarding the cost containment procedures and how the project will be completed with minimal cost. She reported organizational changes have been made within the project: 1) Mr. Paul Brown, Camp Dresser& McKee, Inc. has been assigned as principal in charge; 2) OCWD Associate General Managers Bill Everest, will focus his attention on design issues and Mike Markus will serve as program manager focusing on cost and schedule. She reported that an organizational chart is in the process of being developed and will be distributed upon its completion. OCSD General Manager Blake Anderson noted the project is at the 60% design point and that both Boards will soon consider the amended new budget and the O&M Agreement. He restated the purpose of the project, which began over seven years ago and it now is time the Boards to move forward. Program Manager Mike Markus gave an update and presentation on project cost and schedule. He reported that project costs have escalated from $352 million to $427 million dollars since March 2001 due to escalation, contingency adjustments, changes in the scope and a refinement of the design from 30%to 60%. He noted that with escalation to midpoint of construction the figure is estimated at$453.9 million. He noted that a containment plan has been proposed and will be implemented to maintain cost control on the entire project. He reported that the cost estimates were evaluated at the 60% design level and that a contingency of 10% through design and 5% during construction was used for calculations. He noted that the Montgomery Watson Harza Team completed an independent review of the project budget. He also reported that a procedure will be implemented this month for established contract budgets and that the contracts cannot be changed unless approved by the construction program manager, the Management Advisory Team (MAT), this Committee and respective Boards. He stated that each contract will be assigned to a project engineer who will take ownership; be accountable for its budget; prepare a bi-weekly budget report; and submit the report to the construction project manager for budget status and potential changes. He reported that the construction project manager will issue a monthly report to the MAT and this Committee discussing status, changes, and issues. - 3 - Joint GWR System Cooperative Committee Minutes October 14,2002 lj Director Anthony requested that the escalated unit cost of$454 million (at midpoint of construction) be used for project cost. Director Patterson inquired what the unit cost of GWR System water would be. Ms. Grebbien responded that the unit cost, assuming power costs of 10 cents, would be about $500 per acre-foot; and 6 cents power costs would equate to be about $450 per acre-foot. Director Eckenrode stated that he recently attended an Urban Water Institute meeting and that the cost for MW D water will be $500 per acre-foot and projected to be $750 per acre-foot by the year 2020. Ms. Grebbien reported that MWD has replenishment water available until January; but that untreated non-interruptible water will be available next year. Director Eckenrode noted that only treated water can be used in the barrier. Mr. Markus then gave a report and presentation on the original schedule, and the situation today. He noted that there are two options to minimize delay and its impacts; individual-contracts and combined-contracts, which would both have a completion date of March 2007. He reported that staffs' recommendation is to adopt the combined- contracts option, which would have fewer contracts, potential cost-savings, elimination of Owner's risk for assignment of contracts, and reduces Owner's risk of ripple delay impacts. Director Patterson requested a pros and cons analysis of using a bonus as an incentive for early completion on construction contracts. Mr. Anderson noted that OCSD has used early completion bonuses on some of their construction contracts. INFORMATIONAL ITEMS 6. Water Education Research Foundation Outreach Studv Pulled from the agenda. 7. Public Information and Education Update - No comments. 8. Status Report Mr. Everest reported on the following: A. The City of Fountain Valley Traffic Committee denied the traffic signal at the new plant entrance at Ward and Falcon Streets. He reported that there is a need for additional outreach programs with neighboring residents. Director Cook stated that the neighboring residents' complaints originated from their lack of understanding of the project. She recommended more public outreach of the project to the neighbors. Director Anthony requested that copies of the traffic -4 - Joint GWR System Cooperative Committee Minutes Y October 14, 2002 study be made available and a complete presentation be given to the Committee. B. Funding for the Southeast Talbert Barrier has been approved by the State Water Resources Control Board for a $2,900,000 grant from the Water Recycling Construction Program and $100,000 loan from the State Revolving Fund Loan. C. Due to the second Monday of November being a federal holiday, a survey will be conducted to determine the next Committee meeting date. REPORT OF GENERAL MANAGERS— No comments. REPORT OF COUNSEL - No comments. DIRECTORS COMMENTS— No comments PUBLIC COMMENTS — No comments ADJOURNMENT Adjourned at 7:00 p.m. The next Joint Cooperative Committee meeting is to be determined. - 5 - BOARD OF DIRECTORS Meeting Dare To ad.of Dir. u/20/02 AGENDA REPORT ItemNumGer Hein Nllmbe 16 Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Tod Haynes, Engineering Supervisor SUBJECT: Rehabilitation of 36" Force Main B Between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R1 GENERAL MANAGER'S RECOMMENDATION (1) Approve plans and specifications for Rehabilitation of 36" Force Main B between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R1, on file at the Office of the Board Secretary; (2) Approve Addendum No. 1 to the plans and specifications for Rehabilitation of 36" Force Main B between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R11; (3) Declare the low bid submitted by Colich Construction, L.P., as non-responsive due to failure to provide complete submittals required, (4) Declare the second low bid, submitted by Doty Brothers Equipment Co., as non-responsive due to failure to provide complete submittals required; (5) Receive and file bid tabulation and recommendation; and, (6) Award a contract to Insituform Technologies, Inc., for Rehabilitation of 36" Force Main B between Bitter Point Pump Station and Junction Box, Contract No. 5-29-R1, for an amount not to exceed $1,552,470. SUMMARY • This project will rehabilitate the section Force Main B of the Pacific Coast Highway Force Main System between the Bitter Point Pump Station and the Junction Structure adjacent to the Santa Ana River. • The project will also rehabilitate a short section of the siphon under the Santa Ana River, place a section of an adjacent Force Main C into standby service, and abandon an unused force main in the area. • Sealed bids were received on October 31, 2002. Summary information on the 5-29-R1 budget and bids are as follows: Project Budget: $1,959,000 Construction Budget: $1,740,000 Engineer's Estimate: $1,700,000 Low Responsive Bid: $1,552,470 High Bid: $1,568,100 Number of Bids: 4 • The apparent low bid, submitted by Colich Construction L.P., was not responsive. Two pipe liner submittals were required with the bid. This bidder only provided one submittal and it was incomplete. The specifications state that failure to fully complete and provide the mandatory submittals shall render the bid non-responsive. GW dW��Apm R"pvb 2B MFpeMa Re�lslf fONem t6 S39RI Mc FW W:•,oA, Page 1 • The second low bid, submitted by Doty Brothers Equipment Co., was not responsive. Two pipe liner submittals were required with the bid. The bidder only provided one submittal. The specifications state that failure to fully complete and provide the mandatory submittals shall render the bid non-responsive. • The bid irregularities were reviewed with General Counsel, who advised that the first and second low bids were non responsive. General Counsel recommended that the Orange County Sanitation District could reject all bids or award the project to Insituform Technologies, Inc. The Director of Engineering discussed the issue at the Planning, Design and Construction Committee on November 7, 2002, who concurred that the project should be awarded to Insituform Technologies, Inc. • The Director of Engineering recommends award of the construction contract to Insituform Technologies, Inc.,for an amount not to exceed $1,552,470. Insituform Technologies, Inc. provided both of the required submittals with the bid. PROJECT/CONTRACT COST SUMMARY Authorization of$1,552,470 for the construction contract is being requested. This authorization is within the project's budget for FY2002/03. Please refer to the attached Budget Information Table for more information. BUDGET IMPACT ® This item has been budgeted. (Line item FY 2002103:section e, Page 21) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) The lowest responsive bid amount is $187,530 below the construction contract budget. The excess funds are transferred to the project contingency fund. The original project number and title listed in the 2002/03 budget were revised via a job plan. ADDITIONAL INFORMATION The information provided below was presented at the September 2002 Planning, Design and Construction Committee meeting. There are three parallel force mains in this area of the Pacific Coast Highway Force Main System between the Bitter Point Station and the Junction Structure adjacent to the Santa Ana River. The ductile iron pipe force mains were constructed at different times in the late 1980s. They are designated Force Mains A, B, and C. This proposed contract will line Force Main B completed in 1989. Force Main C failed adjacent to the Junction Structure in January of 2001 and, in response, a section was slip lined on an emergency basis. The sewage was contained c:,..y.meegendae agenda Rep S=02e rd•geode eeddmMOVm +es29sie« R<.em: vmne Page 2 in the pipe and there was no spill. Force Main A failed adjacent to the Bitter Point Pump L Station in November 2001. This failure resulted in a spill to the Newport Slough. In response, the force main was completely renovated between an isolation valve near the Pump Station and the Junction Structure on an emergency basis. After completion of the Force Main A repair, staff investigated the condition of Force Main B and Force Main C between the Junction Structure and Bitter Point Pump Station. The section of Force Main C slip lined in 2001 was in good condition. The rest of the force main to Bitter Point Pump Station was intact. However, the pipe crown is corroded in an unlined section. The rest of the force main is lined and the liner is failing at the joints. Corrosion was observed behind the liner failures. Force Main B is lined and also has liner failures at the joints with the associated corrosion. There are also intermittent liner failures between the pipe joints on this force main. Staff and General Counsel are investigating the cause of the ductile iron pipe liner failures. There is a possibility of manufacturing defects where the manufacturer may have responsibility. All three force mains (A, B, and C) will be required to accommodate long term flow projections for the system. This project for the renovation of Force Main B and the recent emergency renovation of the adjacent Force Main A provide sufficient capacity for the next five years. Force Main C will be shut down and preserved in a standby mode in case of an emergency. Force Main C may require rehabilitation in the future to meet long term flow projections. An alternative routing for the existing force main system between the Bitter Point Pump Station and Plant No. 2 is being considered by staff. This alternative would replace existing Force Mains A, B, and C in this section with a new system routed along the Pack Coast Highway. This proposed atemative will eliminate conflicts the existing system has with future projects, eliminate future renovations on this section of the existing system, and would have operational advantages over the existing system. This alternative will be submitted to the Board of Directors for consideration in the near future. If approved, the project will take several years to design and construct. Staff is also investigating the balance of the Pacific Coast Force Main System, upstream of the Bitter Point Pump Station, to determine if other areas are corroding and in need of repair or replacement. ALTERNATIVES Do not move forward with the proposed recommendation. Rely on the existing force main until the proposed new force main routed along the Pacific Coast Highway can be designed and constructed. The new force main will be proposed to the Board in the near future. However, if this alternative is approved by the Board, it will take several years to design, permit, and construct the project. c�rym.�.u�meomaneam mw w.�waw,„mum�,esmn,.mc Page 3 Staff does not recommend this alternative. There have already been two recent failures Y on adjacent ductile iron force mains. There is a risk that the corroded force main will fail before the proposed alternative is completed. CEQA FINDINGS This project is not included in a previously approved Master Plan/EIR. The project is exempt per CEQA Guideline Sections 15301(b)(d), 15302(c), 15303(d), and 15304 for Collections Facilities Engineering Projects. The Notice of Exemption was filed on August 6, 2002 with the County of Orange. ATTACHMENTS 1. Budget Information Table 2. Bid Tabulation TH:sa G:\ry.4bNgenpal&wy Apvp Rvw,Q.2 fimN Ag¢nN ReRort511IOTM1em 16.S14g1 E¢ RPna y: W. Page 4 BUDGET INFORMATION TABLE Rehabilitation of 36" Forcemain (B) between Bitterpoint Pump Station and Junction Box Contract No. 5-29-R1 ORIGINAL CURRENT PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTITASK AUTNORIZED PROJECT= IBIUI "E REMISED AUTHORIZED AUTNORI7ATION� .' TOTAL EXPENDITURE EXPENDED BUDGET BUDGET. (NCREASE ' BUDGET TO DATE RECIUET AUTHORIZATION TO DATE TO OA7E(%) Piroject Development $ Studies/Pemli8in9 $ 1,000 $ 1,0001 $ 1,0001 $ 1000 $ 676 68% Consultant PSA $ 42,000 $ 60.000 $ 60,000 $ 60,000 $ 60,000 0% Desi nStaff $ 58000 $ 39.000 $ 39.000 $ 39,000 $ 39.000 $ 13,254 34% Construction Contract $ 1,740,000 $ 1,740,000 It 187530 $ 1,552,470 $ 1.552470.00 $ 1,552,470.00 Construction Administration $ 56,000 $ 56,000 $ 56,000 $ 56.000 $ 58000 0% ConstNCtion Inspection $ 63,000 $ 63.0001 $ 63000 $ 63.000 $ 63,000 0% lContingency $ 187,530 $ 187,530 PROJECT TOTAL $ 1,959,000 $ 1.959,000 $ 1,959,000 $ 219,000 $ 1.552.470.00 $ 1,771.470 $ 13.930 1% Reimbursable Costs PROJECT NET 1 $ 1,959,000 $ 1,959,000 1 1 $ 1,959,000 1 $ 219,000 $ 1,552,470.00 1 $ 1,771,470 $ 13,930 1% EONS 00374VW &M-RI eud,81 lnbr IW TON.(BIT)3 F.Ra Oct 4.TOOO 4) Date: October 31, 2002 11:00 a.m. ADDENDUM NO. 1 BID TABULATION REHABILITATION OF 36" FORCEMAIN (B) BETWEEN BITTERPOINT PUMP STATION & JUNCTION BOX JOB NO. 5-29-R1 Engineer's Estimate: $1,700,000 Construction Contract Budget: $1,700,000 CONTRACTOR TOTAL BID 1.COLICH CONSTRUCTION $ 1,410,527.00 2.DOTY BROS. EQUIPMENT CO. $ -1,473,491.34 3.INSITUFORM TECHNOLOGIES, INC. $ 1,552,470.00 4.ARB, INC. $ `1,568,100.00 5. $ 6. $ 7. $ 8. $ 1 have reviewed the proposals submitted for the above project and find that the first and second apparent low bids are non-responsive, and that the third low bid is a responsible bid. 1, therefore, recommend award to Insituform Technologies, Inc. in the bid amount of$1.522,470.00 as the lowest and best bid. *Corrected amount. (ARB, Inc.) incorrect total was $1,578,000.00 *Corrected amount. (Doty Bros. Equipment C correct total was $1,473,491.84 _i David A. Ludwin, P.E. Director of Engineering DAL:TH:sa EDMS003742618 Revised 05119/98 OCSD • P.O.Box 8127 • Fountain Valley,CA 92728-8127 • (714) 962-2411 BOARD OF DIRECTORS Meeting Date I Toad.or Dir. 11/zo/oz AGENDA REPORT Item Number Ism Number v Orange County Sanitation District FROM: Robert P. Ghirelli, Director of Technical Services Originator: James Colston, Senior Regulatory Specialist SUBJECT: Authorize Submission of NPDES Permit Renewal Application GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to submit the Ocean Discharge Permit Application to the Environmental Protection Agency, Region IX, and the California Regional Water Quality Control Board, Santa Ana Region, consistent with Resolution No. OCSD 02-14, Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean. SUMMARY • On October 23, 2002, staff provided the Board with the draft final National Pollutant Discharge Elimination System (NPDES) Permit renewal application. The application is due to the Environmental Protection Agency, Region IX, and the California Regional Water Quality Control Board, Santa Ana Region, by December 6, 2002. • Since the October 23, 2002 meeting, staff has made the following changes to the application: 1) Added a reopener clause to the Letter of Transmittal to account for effluent and flow changes due to the Groundwater Replenishment System; 2) Added Appendix M, Initial Dilution; and 3) Made technical and grammatical corrections to the application and appendices. • The application reflects the July 17m, 2002 decision of the Board of Directors to meet the secondary treatment standard of the Clean Water Act as expeditiously as possible. The application does not seek renewal of the Clean Water Act section 301(h) modification from secondary treatment. Compliance with the Clean Water Act Ocean Discharge Criteria as well as much of the section 301(h) requirements is demonstrated in the application in order to provide a transition from the current level of treatment to the secondary treatment standard. • The General Manager seeks authorization to submit the application, as presented to the Board and with any final editing, to the regulators to meet the December 2002 deadline for renewal of the District's ocean discharge permit. A final, signed copy of the application will be available to the Directors and public upon submission to the EPA and RWQCB. JC:wh G.W,AWl gma VWMAgmdd Rehab OWB-,d Agenda R.p 111=T 17.NPDE3Pemt.dx Reasedt 1111M Page 1 PROJECT/CONTRACT COST SUMMARY N/A BUDGET IMPACT ® This item has been budgeted. (Line item: ciP Budget) ❑ 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 N/A CEQA FINDINGS N/A ATTACHMENTS N/A Jc:M G\m. Wl gendal rdA da Rep s1 29aaN AgenW ReNa IONIe RNPOES P—Wm Ramos: II112ro2 Page 2 „ 3 1 NIA - All w ORANGE COUNTY SANITATION DISTRICT, _ _���• gCALIFORNIA AWN 4 u• � ,` 4 �4 "v i Comprehensive Ann vial Report � � forthc FiscalYear En 0, 2002 r r r r ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2002 d r r r Prepared By: Department of Finance r Accounting Division Michael D.White, CPA r Controller r (THIS PAGE LEFT INTENTIONALLY BLANKS L I4� W I� IJ �I 4�f1 IWI 41 J ORANGE COUNTY SANITATION DISTRICT Comprehensive Annual Financial Report Table of Contents For the Year Ended June 30,2002 EM INTRODUCTORY SECTION: Letterof Transmittal..................................................................................................................... I GFOA Certificate of Achievement............................................................................................... Vill .. CSMFO Certificate of Award ....................................................................................................... bt Boardof Directors........................................................................................................................ X OrganizationChart.........................._........................................................................................... )it Mapof Service Area..................................................................................................................... X1 FINANCIAL SECTION: Independent Auditors'Report............................................................................._....................... 1 r Management's Discussion and Analysis—Required Supplementary Information....................... 3-8 Basic Financial Statements: Statementof Net Assets...................................................................................................... 10 Statement of Revenues,Expenses,and Changes in Net Ass....................................... 11 �. Statement of Cash Flows.................................................................................................... 12 Notes to Basic Financial Statements................................................................................... 1328 Supplementary Information: Combining Statement of Net Assets................................................................................... 28 Combining Statement of Revenues, Expenses,and Changes In Net Assets .................... 29 Combining Statement of Cash Flows.................................................................................. 30 Schedule of Changes in Net Assets by Activity and Revenue Area.................................... 31 STATISTICAL SECTION: Expenses by Type-Last Ten Fiscal Years................................................................................_ 33 Revenues and Gross Capital Contributions by Source-Last Ten Fiscal Years......................... 34 Property Tax and User Fee Levies and Collections-Last Ten Fiscal Years............................... 38 Assessed and Estimated Actual Value of Taxable Property- LastTen Fiscal Years.............................................................................................................. 38 Property Tax Rates-Direct and Overlapping Governments- LastTen Fiscal Years.............................................................................................................. 37 PrincipalUsers............................................................................................................................. 37 Ratio of Annual Debt Service for Bonded Debt to Total Expenses—Last Ten Fiscal Yeas....... 38 Bond Coverage- Last Ten Fiscal Years...................................................................................... 39 Computation of Direct and Overlapping Debt.............................................................................. 40 Demographic Statistics-Last Ten Fiscal Years.......................................................................... 41 Property Value and Construction-Last Ten Fiscal Years........................................................... 42 Estimated Populations Served by the Orange County Sanitation District.................................... 43 Insurancein Force....................................................................................................................... 44 Comparison of the Volume of Wastewater Treated With Revenues and Expeneas- �' Last Ten Fiscal Years............................................................................................................. 48 Biosolids Produced-Last Ten Fiscal Years......................................................._....................... 48 MiscellaneousStatistics............................................................................................................... 47 �t L L L L �I (THIS PAGE LEFT INTENTIONALLY BLANK) L lU Irl . L L L L W 'WI W L II � I Introductory Section 5 o a. c o ` o � i � i �� .i r y Y r r r r r r V r ORANGE COUNTY SANITATION DISTRICT p24 August 30, 2002 1 -p141962-2411 The Board of Directors of the inaao�e•ae1122i Orange County Sanitation District, 'ilcan<.m van'.CA, Orange County, California 92728.8127 snsst Md.: Submitted herewith is the Comprehensive Annual Financial Report of the Orange County Sanitation 1844 Ellis Avenue District, Orange County, California for the fiscal year ended June 30, 2002. This report includes the Tounaeln van',cA financial position and activity of the three individual revenue areas, as described within the Governmental 9279e-701e Structure below, as of June 30, 2002 and was prepared by the Accounting Division of the District's Finance Department. Responsibility for both the accuracy of the data, and the completeness and faimess of the presentation, stnnn.r including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed nwnde data is accurate in all material respects and is reported in a manner designed to present fairly the financial • position and results of operations of the District. All disclosures necessary to enable the reader to gain an Must understanding of the District's financial activities have been included. Angles. The report presented herewith consists of three parts: (1) an introductory section consisting of a letter of area transmittal, awards received for the prior year's Comprehensive Annual Financial Report, a listing of the Been nark cites- Board of Directors, an organization chart, and a map of the individual revenue areas; (2) a financial Fountain vanrr section consisting of the independent auditors' report, Management's Discussion and Analysis of the Folrarmn Financial Statements, basic financial statements, and supplementary financial statements and schedule of cngean Basra the individual Revenue Area Funds; and 3 a statistical section consisting of pertinent financial and �anenpran Beach ( ) 9 Irvine nonfinancial data that presents historical trends and other information about the District. La Habra A Parma Included within the accompanyingfinancial statements are all of the organizations, activities,and functions Loa am each 9 Newywx Beach controlled by the District's Board of Directors in accordance with the Governmental Accounting Standards orange Board Statement Number 14, `The Financial Reporting Entity'. For the purpose of this evaluation, control Recent. was determined by the Board's responsibility for: (1) adoption of the budget and user charges, (2) taxing Santa ane seal eaaah authority, and (3) establishment of policies. The reporting entity and its services are described in further S small detail in Note 1 of the financial statements. Tustin ✓as Park roroa Linda GOVERNMENTAL STRUCTURE .t, at 0'.n0. The Orange County Sanitation District encompasses the Northern section of Orange County. The District Sanitary Districts provides wastewater treatment for an area of the County covering 471 square miles and serving a population of approximately 2.3 million, or 79 percent of the County's population. The District was costa Mesa originally incorporated in 1954 as nine separate public corporations, or districts. In April of 1998, at the mdwey City District's request, the Board of Supervisors of the County of Orange passed Resolution No. 98-140 --tat., oi.triw, ordering the consolidation of these nine County Sanitation Districts into a new, single sanitation district, to be known as the Orange County Sanitation District,effective July 1, 1998. This action was recommended 1 .ee Ranch to the Board by the Local Agency Formation Commission in order to simplify governance structures, reduce the size of the Board, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. The boundaries of the nine previous districts had remained intact for the purpose of collecting sewer user fees at the previously established rate schedules, and were referred to as nine individual revenue areas through June 30, 2000. Effective July 1, 2000, all Revenue Areas, except Revenue Area 7 and 14, consolidated user fee rates and all enterprise fund accounting and budgeting activities. i To hated ire Public Heaal,and ane Ennronment mrough Excellence in Wastewater Systems' The District is managed by an administrative organization composed of directors appointed by the agencies or cities which are serviced by the District. Each of the three remaining Revenue Areas (the i Consolidated Revenue Area, Revenue Area 7 and Revenue Area 14) has its own budget and is u responsible for the construction and maintenance of its own collection system. All Revenue Areas, except Revenue Area 14 and the portion of the Consolidated Revenue Area previously known as Revenue Area 13, receive their own share of the one-percent ad valorem property tax levy. In addition, all Revenue Areas except Revenue Area 14, collect user fees from property owners. Revenue Area 14 receives all of its revenues from service charges to the Irvine Ranch Water District. I The purpose of the District's wastewater management program is to protect the public's health, preserve {„{ the beneficial uses of the coastal waters, and maintain air quality. The objectives of operating the treatment plants are to process and dispose of the treated wastewater and the separated solids in accordance with Federal, state, and local laws Including the Environmental Protection Agency. IU! The District sewerage system includes approximately 650 miles of sewers that convey wastewater generated within the District's boundaries to the District's two wastewater treatment plants, Reclamation Plant No. 1 located in the City of Fountain Valley, and Treatment Plant No. 2 located in the City of u Huntington Beach. Reclamation Plant No. 1 has a primary treatment capacity of 108 million gallons per day (mgd). Treatment Plant No.2's designed primary treatment capacity Is 186 mgd. Approximately 50 percent of the �•I advanced primary effluent also receives secondary treatment. Both plants are master-planned for a future primary and secondary treatment capacity of 240 mgd for a combined total of 480 mgd. Outflows of treated wastewater from the two plants are combined and discharged to the ocean off the (� Huntington Beach coast through an outfall pipe that is 120 Inches In diameter and approximately five miles long. The last mile of the outfall pipe is a diffuser that dilutes the wastewater with seawater in a ratio of 148 parts seawater to one part treated wastewater at an average depth of 185 feet. ECONOMIC CONDITIONS AND OUTLOOK LJ The U.S. economy currently is in a mild recovery from the recession of 2001. The Anderson Center for Economic Research at Chapman University is forecasting a continuing recovery in 2002 and for 2003, vdth real gross domestic product increasing 2.6 percent and 3.2 percent,respectively. Although Orange County itself managed to avert the recession, the national recession certainly reduced local job growth. The most recent national recession is the first one Orange County has endured without a L year-to-year loss in jobs over any quarter period. Orange County's job growth not only remained positive at 2.4 percent, but also outperformed the U.S., at 0.4 percent, by a considerable margin. Orange County created 29,000 jobs and is projected to add 21,000 this year and 39,000 in 2003. The unemployment rate for Orange County Increased from 3.0 percent in 2000-01 to 4.1 percent in 2001-02. I.I The resiliency of the Orange County economy during the recent recession is due in large part to the performance of construction and defense spending. During the 1990-91 recession,both of these dropped sharply by 40 percent and 15 percent, respectively. This time around, construction did not decline as sharply,at 15 percent,and defense spending rose markedly, up 30 percent. The fact that Orange County weathered the recessionary storm fairly well is also reflected in its taxable sales activity. At its lowest point, taxable sales grew at a 1.9 percent annual rate in the second quarter of last year. Although that growth rate was down from a cyclical high of 11.8 percent only a year earlier in the second quarter of 2000, It is a significant accomplishment for Orange County's taxable sales to have ILII remained positive during a national recessionary period. In 2002 and 2003, Chapman University is also LJ It forecasting taxable sales to grow at average annual rates of 3.2 percent and 5.6 percent, respectively, down significantly from a peak of 10.1 percent annual growth in 2000. Due to rising median family income and lower mortgage rates, Orange County's housing affordability index increased to a value close to 100. This suggests that median family income is roughly equal to the amount necessary to qualify for the purchase of a median-priced home in the county. Improvements in r median family income and lower mortgage rates are more than offsetting the negative impact of rising home prices. However, Chapman University is projecting that the future housing affordability index will decline to an index value around 90, or median income will fall 10 percent below the amount necessary to qualify to purchase a median-priced home, by the end of 2003. This drop in the housing affordability index m is expected as a result of the projected increase of approximately 70 basis points In mortgage interest rates next year. r MAJOR INITIATIVES Level of Treatment As of June 30, 2002, the District discharged treated wastewater to the ocean under a permit issued by the Environmental Protection Agency and the Sate of California. The current discharge permit includes a waiver under the 301(h) provisions of the Clean Water Act, allowing for less than full secondary treatment based on an ocean discharge of sufficient depth, distance and dilution. This permitted effluent quality, which is rigorously monitored, has been achieved through a blended combination of advanced primary and secondary treated effluents since 1994. r In July 1999, the Huntington Beach shoreline was closed to the general public because of health considerations due to elevated bacterial counts in the surf zone. In attempting to isolate the cause of the beach contamination, the District, along with a number of other public agencies, is working together to find the root of the problem. A $5.1 million study to determine whether the effluent discharge plume was actually the underlying cause of the shoreline contamination was conducted in 2001-02. Independent scientists conducted the research. Their work and conclusions were reviewed by a team of other independent scientists not associated with the study. All told, there were more than nine institutions or firms of scientists participating in this project. These scientists gave an interim report in May 2002. Although they found no substantial evidence connecting the beach bacterial contamination with the plume r from the ocean outfall, they could not rule out the outfall plume as a contributor to the beach closure. On July 17, 2002, the Board of Directors Approved Resolution No. OCSD-14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean". This resolution establishes the District's policy to treat all wastewater discharges into the ocean to secondary treatment standards thereby providing for continued public safety, marine ecosystem protection and water reclamation opportunities. Increasing the preferred level of treatment to full secondary with disinfection would almost fully eliminate the bacteria from the wastewater that is released into the ocean. In implementing this policy, District staff was directed to immediately proceed with the planning, design, and implementation of treatment methods that will allow the agency to meet Federal Clean Water Act secondary treatment standards with the expressed purpose of eliminating the permit waiver received under Section 301(h) of the Federal Clean Water Act. In conjunction with the above action, District staff was directed to expeditiously negotiate permit terms and conditions that will accomplish the inter-related goals of achieving secondary treatment standards, eliminating the need for a Section 301(h) Clean Water Act Permit, and minimizing the risk of enforcement liability during the transition period from the present effluent treatment standards to secondary treatment standards. _ The District estimates that it will take approximately eleven years and additional capital improvement costs of$271 million to reach secondary treatment discharge standards. In the interim the District will operate the plants to maximize available secondary treatment and to reduce effluent biochemical oxygen demand iii and suspended solid discharges below currently allowed limits. Each year the current 50 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in service over the next eleven years. Ir Once full secondary standards are achieved, it is estimated that the operafing cost of processing the increased level of biosolids will grow from approximately$10 million to$20 million per year. W Groundwater Replenishment System The District and the Orange County Water District(OCWD)are currently developing a joint project that will be the largest water reclamation project in the nation. In March 2001,the District and OCWD entered into W an agreement to design and construct Phase 1 of the "Groundwater Replenishment System" (GWRS). GWRS is a joint effort by the two agencies to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. The cost of this project is to be W paid equally (50 percent shares) by each agency. The GWRS is planned for three phases, Phase 1 will produce approximately 72,000 acre-feet per year of recycled water by June 2007, Phase 2 will increase the total capacity to 112,000 acre-feet by the year 2010, and Phase 3 will increase the total capacity to 145,600 acre-feet per year by the year 2020. Fallowing the completion of Phase 1, the GWRS will have W the capacity to divert up to 100 million gallons per day of flow from the District's ocean discharge thereby deferring construction of a new ocean outfall at an estimated cost of$170 million. As of June 30, 2002, the total estimated cost of GWRS Phase 1 was$402.4 million. Of this amount, up to W $34.5 million may be reimbursed through grants from the U.S. Environmental Protection Agency, the State Bureau of Reclamation, and the State Water Resources Control Board. The District's estimated gross and net share is $201.2 million and $184.0, respectively. Costs incurred by the District through June 30, W 2002 total$10.3 million. Biosolids Program W The District currently land applies its entire biosolids residuals of approximately 195,000 wet tons per year in Kings, Kenn, San Bernardino, and San Diego counties and in Arizona through contracts with three biosolids management service providers. Riverside, Kem, and Kings County recently enacted biosolids V ordinances eliminating land application of Class B biosolids by January 2003. Class B biosolids reuse options and capacifies for the management of District biosolids are becoming insufficient as a result of this legislation. W In response to these regulatory developments, the District developed a short-term biosolids management plan that analyzes several different technologies so that the District could maintain its policy of providing environmentally sound biosolids management with an emphasis on multiple, independent reuse L, alternatives. As a result of this plan, the District has reviewed several Class A biosolids technology options and has entered into a biosolids management contract with California Soil Products for the production of a Class A chemically stabilized biosolids product. California Soil Products should be V producing this Class A product by October 2002. A long-term biosolids management program will be developed that will be based on relationships with host communities and farmers willing to continue accepting Class B biosolids and producing Class A biosolids products. W Asset Management In June 2001, the District began the initial development of a strategic level Asset Management (AM) Improvement Program that will follow with the eventual implementation of specific AM improvement V projects over a period of years. AM provides for the systematic planning, acquisition, deployment utilization control, and decommissioning of capital (infrastructure) assets. It integrates policy (strategic- level) management, system/network (mid-level) management, and operations level management into one W focus. AM is all about maximizing the life cycle assets of public infrastructure while continuously delivering the desired level of customer service. In short, AM focuses on the optimal stewardship of community W IV u assets. Being the third largest wastewater treatment facility on the West Coast, the District has a net capital asset value of$874 million as of June 30,2002 and anticipates the investment of approximately$2 billion in new capital assets over the next two decades. r The scope of work for the strategic planning effort includes: • A strategic level review of current asset management practices; • A defined scope and set of assumptions for a desired asset management improvement program; An assessment and gap analysis relative to the desired asset management improvement program; • A strategic plan for the effective deployment of an asset management improvement program; and A framework plan that would identify the implementation planning requirements for the next phase of implementing asset management The completion of strategic planning effort is expected by the end of the 2002 calendar year with the issuance of the District's Asset Management Strategic Plan and Framework Analysis Report. Three-year and ten-year targets have been established for implementation of AM within the organization. r SERVICE EFFORTS AND ACCOMPLISHMENTS In November 2001, the District received two awards from the Santa Ana River Basin Section of the California Water Environment Association: Plant of the Year was received by the District's Plant No. 2 for Treatment Facilities Discharging over 10 million gallons a day and the District received the award for Engineering Achievement on the design of the Plant No. 1 Primary Clarifiers and related facilities. In August of 2002, the District was notified that it had earned the Achievement of Excellence in Procurement Award for 2002. This award was created in 1995 to recognize organizational excellence in public procurement. The annual award is earned by those organizations that demonstrate excellence by obtaining a high score based on standardized criteria. The criteria is designed to measure innovation, professionalism, productivity, and leadership attributes. Only 74 organizations have achieved this national award. ACCOUNTING AND BUDGETARY CONTROLS r The District's accounting records are maintained on the accrual basis. In developing and evaluating the District's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: "0 (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1)the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. We believe that the District's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Each year the District's Board of Directors adopts an annual operating plan. A joint works budget is first prepared that identifies the specific capital projects and operating activities to be undertaken by the District during the year. Upon adoption, District's staff allocates the joint works budget proportionately to each of _ the individual Revenue Areas and obtains individual Revenue Area budget approval. The budgetary level of control, the level at which expenses cannot exceed budget, is exercised at the individual District, or fund level. The District has adopted a Uniform Purchasing Policy that identifies the agreed upon purchasing standards. v 1 W I W CASH MANAGEMENT The District's investment portfolio, except for the District's debt service reserves, investments with the L State Local Agency Investment Fund, and overnight repurchase agreements of idle cash within the District's general bank account, are managed by an outside money manager, Pacific Investment Management Company (PIMCO), who performs the daily investment activities, and by Mellon Trust, who serves as the District's independent custodian bank. This externally managed portfolio consists of a short term investment pool of$43,358,000 at June 30, 2002 that has maturities out to 180 days, and a long- term investment pool of$363,113,000 that has average maturities out to 2.5 years. Investments of this externally managed investment portfolio consist of U.S. Government securities, corporate bonds, commercial paper, and money market mutual funds. Investments of the District's debt service reserves W totaling $35.6 million consist of bank investment contracts of$35.0 million with JPMorgan Bank and State Street Bank, maturing on August 1,2013, and$0.6 million in open-ended mutual funds. I Investment earnings for the year were $28,073,000, a decrease of$11,795,000 from the prior fiscal year W total of$39,868,000. This decrease is attributable to both lower cash and investment balances and lower yields earned on investments over the prior year. Cash and investment balances declined in FY 200"2 from the prior year by $11.3 million from $476.6 million to$465.3 million, or 2.4 percent, while the yields W earned on investments declined from 8.77 percent to 5.96 percent during this same time period. Investment income includes changes in the fair value of investments. Increases or decreases in fair value u during the current year do not necessarily represent trends that will continue; nor is it always realistic to realize such amounts, especially in the instance of temporary changes in the fair value of investments. In 1998, the District conducted an in-depth review of its reserve policy. This review included a survey of v<, the reserve policies of 23 other public agencies as a tool to assist in the evaluation of the underlying economic assumptions supporting the District's reserve policy. As of June 30, 2002, the District's designated retained eamings totaled $465 million, and have been earmarked for the following specific purposes in accordance with the District's reserve policy: Designated For Cash Flow Contingency $ 70 million Designated For Self-Insurance 57 million Ir Designated For Capital Improvements 220 million Designated For Debt Service Requirements 35 million Designated For Rate Stabilization and Future CIP 83 million I W Total Designated Retained Earnings $4fi5 million i V RISK MANAGEMENT For the year ended June 30, 2002, the District was self-insured for a portion of workers' compensation La and property damage. The self-insured portion for workers' compensation is $500,000 per person per occurrence with outside excess insurance coverage to $25 million. The self-insured portion for property damage covering fire, flood, and other perils is $25,000 per occurrence with outside excess insurance coverage to $300 million for fire, flood, and other perils. The District is self-insured for all property u damage from the perils of earthquakes. The District also maintains outside comprehensive boiler and machinery insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $100,000. The District is insured for general liability up to $25 million per occurrence with a self-insured portion of$100,000. u District management believes that there are no outstanding claims as of June 30, 2002 that would materially affect the financial position of the District. W W vi INDEPENDENT AUDIT An audit of the books, financial records and transactions of the District is conducted annually by independent certified public accountants. The District selected the accounting firm of Moreland & Associates, Inc., to perform the audit for the year ended June 30, 2002. The auditors' report on the District's basic financial statements and supplementary information is included in the financial section of this report This report renders an unqualified opinion on the District's basic financial statements for the year ended June 30, 2002, r CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING _ The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Orange County Sanitation District for the District's comprehensive annual financial report for the year ended June 30, 2001. This was the eighth consecutive year that the District has received this award. In order to be awarded a Certificate of r Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. r A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate. ACKNOWLEDGMENTS This report could not have been accomplished without the dedicated services of the Accounting Division staff, and I would like to especially express my appreciation to Julie Matsumoto who assisted in its preparation. I would also like to thank the District's Boards of Directors, the General Manager, and the Director of Finance for their interest and support in cenducling the financial operations of the District in a responsible and progressive manner. Respectfully submitted, ��4eAa .. Michael D. White, CPA Controller vii Certificate of _ Achievement for Excellence - in Financial Reporting Presented to Orange County Sanitation District, California - For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2001 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. EDP =4Of MfF'c� W C uxGhs e �/spo t Pr siden[JQ rviuc G' �Faecutive Director ,� viii I ! 1 I 1 1 I I I I I I 1 I 1 1 I I I California Society of L41unicipal finance OTPeers Certificate of Award Outstanding Financial Reporting 2000-2001 Presented to the x Orange County Sanitation District This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared. February 21, 2002 Char,Professional&Technical Standards Committee 41, Dedicated to Excellence in Municipal Financial Management W ORANGE COUNTY SANITATION DISTRICT Board of Directors As of June 30, 2002 W AGENCY ACTIVE DIRECTOR ALTERNATE DIRECTOR Cites: W Anaheim Shirley McCracken Tom Daly Brea Roy Moore Marry Simonoff �. Buena Park Jerry Sigler Jim Dow Cypress Anna L. Piercy Tim Keenan W Fountain Valley Laurann Cook Larry Crandall Fullerton Don Bankhead Jan Flory Garden Grove Mark Leyes Bruce Broadwater Huntington Beach Debbie Cook Connie Boardman Irvine Beth Krom Greg Smith La Habra Steve Anderson Steve Simonian La Palma Paul Walker Kenneth Blake W Los Alamitos Alice B. Jempsa Arthur DeBON Newport Beach Tod Ridgeway Gary Adams Orange Mike Alvarez Mark A. Murphy Placenta Norman Z. Eckenrode Constance Underhill Santa Ana Pat McGuigan Alberta Christy Seal Beach Patricia Campbell Paul Yost Stanton Brian Donahue David Shawver Tustin Tony Kawashima Tracy Worley Villa Park Russell Patterson Richard A. Freschi Yorba Linda John M. Gullixson Michael Duvall e. SanitaryMater Districts: Costa Mesa Sanitary District James M. Ferryman Arlene Schafer Yes Midway City Sanitary District Joy L. Neugebauer Grace Epperson Irvine Ranch Water District Brian Brady Darryl Miller County Areas: Member of the Board of Supervisors Jim Silva Chuck Smith W W W x W r ORANGE COUNTY SANITATION DISTRICT Organizational Chart June 30.2002 r eaumoF pRECi0R5 r EmFwi oa�ucauNsa Mxwa omcE r MYM6lMnpl MY4VlREKURC6 FlNWI£ IWOIUNTIp1 OPFMTIOISB IYINL/t ENtlNFHIWO NIDEMRQV4 TECMIROG MNMBNNI£ 5� OEY80fMEM r aMNSfMTM1E XUMNI FMNX£ INRMWTI[M p'QUnp13a TECIHVL Blpl®tlN3 fE11NCE4 RF Ka; aWNST m ITELIPKLOG MVMEWWCE fE1MCF4 NlRaffMTlp1 /JIMIHI$fMTlpl NDAINISTMipN MN1pSTMTICN NIMNISTMnON r C4WMATNMd b.10.0YFE ILpIW11NG CUfrdAER6 CWEGIION nMRONIEMM. RNNIN3 OEVflOn.IFMI HETwDM FI{RfIIEB LOMFIwiCf6 iRVNNG SUFfORI OfBUTNpI$6 MJIFTpUNG WVMENVICE r SYEIYf FURp/gNG6 FROCANpgNG %LUT10 aMRpIgB1lK P.NIa.'r NaLTN waRa10U9E 6WTNWF WtlMBWICE YIENL6 IMMC81alf fYfTBAt faiY1LF5 UBOMTgR' OFFlCE 1° xuuw FRacEss MWCESS souRof Enw�lraa RE80YAr6 CON!RN.R ENpNEH11NG M1INY CMSINUCflp1 INTaa+Nnpl r R W NO I oPaurlps '� FIANT No.z oPeunoxs r Ew xNxnarNCE 6 RJwai FR61CRp! r aECTWG`Ll 11151RIMENfNT1oN AWMENNNI.E r NROINUTYI SFfGltl PROTECTS r r r r %I r ORANGE COUNTY SANITATION DISTRICT See Map of Service Area fig, June 30,2002 ase n n r LOS ANGELES COUNTY LARGE. W r BREA as EG GG NLLERTON VOR9q LIMA 9 P IALEXT�A �, f3 IA VALMA BUENA ANAXEIM O Reas PARK CYGREss ANANEIR VARIA R LES STgHiON 'Re... � Res,AMTOS GAPUEN AEVE O r SEAL BFACN W iMINSTER MIDWAY SANTAANA CRY TusnX r EOUN. VA j RUN TIN IT / all B COSTq MESA ��^' OC No Plant NO.I IPVINE t -AG , EV RANCHO _ OCSO I—MANAGER- Plant No.2 ^' BE dr WLACX MsmN mw F `ABBBBBRs° owlaerrM. RID'YIe.EMW bql � �Om viElB XILLS B I, fNwY LAGUNA BGCM LAGG.A NIGUEL Legend SA A CAASTRANNO Orange County Boundary OCSD Service Area BAR.R01NT — Boundary pll.a miles) SAN L.EMENTE ED Unlcorporated Area xii Financial Section r r r r r r V r r. r� r w p n w' r C CD r 0 p r L r r L r IMI DOVE STREET.SUITE M Moreland &..docialea, r�Md j9�aR�2E5ACH CALIFORNIA 92650 11�1 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE.SUITE SAN MARCOS.CA 92059 (760)752-3390 August 30,2002 The Honorable Board of Directors of the Orange County Sanitation District Independent Auditors' Report We have audited the accompanying basic financial statements of the Orange County Sanitation District (District), as of and for the year ended June 30, 2002, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United Stales of America, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above presently fairly, in all material respects, the financial position of the District as of June 30, 2002, and the changes in financial position and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note I to the basic financial statements, the accompanying financial statements reflect certain changes required as a result of the implementation of Governmental Accounting Standards Board Statements w (GASB)Numbers 34, 37 and 38 for the year ended June 30, 2002. This results in a change in the District's method of accounting and a change in the format and content of the basic financial statements. In accordance with Government Auditing Standards, we have also issued a report dated August 30, 2002 on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The management's discussion and analysis identified in the accompanying table of contents is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain, limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the District.The introductory section,supplementary information,and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion,is fairly stated in all material respects in relation to the basic financial statements taken m a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly,we express no opinion on them. I %fen c, u u u u u u u (THIS PAGE INTENTIONALLY LEFT BLANK) u u u u u u u u u 2 u Management Discussion and Analysis June 30,2002 This section of the financial statements of the Orange County Sanitation District (District) is management's narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2002. The information presented here is to be considered in conjunction with additional information pmvided within the letter of transmittal located in the Introductory Section of this report. Financial Highlights • As of June 30, 2002, the assets of the District exceeded its liabilities by $974.0 million (net assets). Of this amount, $435.9 million (unrestricted net assets) may be used to meet the District's ongoing obligations to citizens and creditors. • The District's total net assets increased$27.0 million, or 2.9 percent over the year. • Net Capital Assets increased $28.1 million,or 3.3 percent over the prior year. • Unrestricted Net Assets declined$10.7 million, or 2.4 percent from the prior year. Overview of the Basic Financial Statements The District operates as a utility enterprise and presents its financial statements using the economic resources measurement focus and the full accrual basis of accounting. As an enterprise fund, the District's basic financial statements comprise two components: financial statements and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The Governmental Accounting Standards Board (GASB) has recently issued Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. ,. GASB Statement No. 34 establishes financial reporting for state and local governments, including special districts such as the Orange County Sanitation District. In accordance with GASB Statement No. 34, the District's financial statements include a statement of net assets, statement of revenues, expenses and changes in net assets, and a statement of cash flows. The statement of net assets includes all of the District's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to District creditors (liabilities). It also provides for the basis for computing rate of return, evaluating capital structure of the District and assessing the liquidity and financial flexibility of the District. Prior to GASB Statement No. 34, this information was reported in the balance sheet with three major sections, a listing of assets, liabilities, and equity. The equity section, previously consisting of"contributed capital" and'retained earnings", has now been replaced with the "net asset" section that includes`net assets invested in capital assets, net of related debt", net assets restricted for debt service", and 'unrestricted net assets". Contributed capital under the old reporting model was made up mostly of sewer connection fees received prior to July 1, 2000 that were recorded directly to equity and did not flow through the statement of revenues, expenses, and changes in retained earnings. These fees are now recorded as non-operating income within the statement of revenues, expenses, and changes in net assets and flow to the statement of net assets as _ unrestricted net assets. The statement of revenues, expenses, and changes in net assets accounts for the current year's revenues and expenses. This statement measures the success of the District's operations over the past year and can be used to determine the District's creditworthiness. It also highlights the District's dependency on property tax revenues in supplementing user fees and other charges for recovering total costs. The final required financial statement is the statement of rash flows. The statement reports cash receipts, rash payments, and net changes in cash resulting from operations and investments during the reporting period. 3 V Net Assets L As previously stated, net assets increased $27.0 million, or 2.9 percent to $974.0 million in FY 2001-02 over the prior year. In comparison, net assets increased $28.4 million, or 3.1 percent to$947.0 million in FY 2000-01 over FY 1999-00. (Dollars in thousands) Percentage June 30, June 30, Increase Increase 2002 2001 (Decrease) (Decrease) Assets ., Current and other assets $ 504,957 $ 510,524 $ (5,567) -1.1% Capital assets, net 874,006 845,945 28.061 3.3% Total assets 1,378,963 1,356,469 22,494 1.7% u Liabilities Long-tens debt outstanding 364,909 378,992 (14,083) -3.7% v Other liabilities 40,080 30,516 9,564 31.3% Total liabilities 404,989 409,508 (4,519) 4.1% v Net assets: Investment in capital assets, net of related debt 501,997 463,935 38,062 8.2% Restricted 36,071 36,468 (397) -1.1% Unrestricted 435,906 446,558 (10.652) -2.4% Total net assets $ 973,974 $ 946,961 $ 27,013 2.9% v Capital assets, net increased $28.1 million, or 3.3 percent, due primarily to the continuing capital improvement program that includes construction of the Groundwater Replenishment System (GWRS). GWRS is a 50/50 joint cost sharing effort of the Orange County Sanitation District and the Orange County ,r Water District to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier at a total project cost of$402.4 million. The District incurred $6.2 million in construction during 2001-02 for this project that has a projected completion date in 2006- I O7. W Another major project underway is the construction of 16 new primary clarifiers at Plant No. 1 that will add 96 million gallons per day of primary treatment rapacity. In 2001-02, $9.0 million of the estimated $75.5 million construction cost for this project was incurred with completion expected in FY 2006-07. See page 6 for the Schedule of Capital Assets and a listing of the other major capital additions for FY 2001-02. Other liabilities increased $9.6 million, or 31.3 percent, due primarily to the $4.9 million, or 44.1 percent increase in the current portion of long-term debt over the prior year. Net assets invested in capital assets, net of related debt increased $38.1 million, or 8.2 percent over the d, prior year primarily as a result of the $28.1 million increase in net capital assets over the prior year, as referred to above, as well as the$10.1 million decline in the net outstanding debt issued to acquire capital assets due to debt payments. L IV L 4 LA r Changes in Net Assets The increase in net assets for FY 2001-02 was $27.0 million, a reduction of 5.0 percent from the prior year's increase. r (Dollars in thousands) Percentage r June 30, June 30, Increase Increase 2002 2001 (Decrease) (Decrease) r Revenues: Operating revenues $ 80,005 $ 73,254 $ 6,751 9.2% Non-operating revenues 81,975 87,446 (5,471) -6.3% r Total revenues 161,980 160,700 1,280 0.8% Expenses: Operating expense other than r depreciation and amortization 68,563 62,320 6,243 10.0% Depreciation and amortization 46,990 44,188 2,802 6.3% Non-operating expense 22,014 18,011 4,003 22.2% Total expenses 137,567 124,519 13,048 10.56/6 Income before capital r contributions 24,413 36,181 (11,768) -32.5% Capital contributions r (distributions), net 2,600 (7,753) 10,353 133.50% Increase in net assets 27,013 28,428 (1,415) -6.0% Beginning net assets 946,961 918,533 28,428 3.1% r Ending net assets $ 973,974 $ 946,961 $ 27,013 2.9% As previously stated, an enterprise fund is used to account for the operations of the District, which is financed and operated in a manner similar to private business enterprises. This allows the District to determine that the costs (expenses, including depreciation and amortization) of providing wastewater management services on a continuing basis are financed or recovered primarily through user charges. Sources of Revenue Functional Expenses June 30,2002 June 30,2002 r 8% 10% 17% ❑Collections 17% r 0 User Fees ■Treatment& ■Taxes Levied 60% Disposal ❑Interest 34%(431% ❑Depreciation& ❑Other Amortization ❑Interest 26% Expense 5 Sewer service fees are evaluated annually based primarily on budget requirements for total operation, maintenance and capital expenditures for providing wastewater management services. Property tax revenues are dedicated for the payment of debt service. I i In 2001-02, operating revenues increased $6.8 million, or 9.2 percent over the prior year, reflective of the �+ $7.0 million, or 9.7 percent increase in service charges. The increase in service charges is primarily due to (1) the increase in percentage of total property tax and user fees collected by the County to the total levy from 96.38 percent in 2000-01 to 98.16 percent in 2001-02, (2) the increase in residential and non- L residential construction of$3.28 billion during 2001-02, and (3) the increase in the average sewer user fee rate of 3.3 percent over the prior year. The 6.3 percent decrease in non-operating revenues includes an$11.8 million, or 29.6 percent decline in �+ investment and interest income, offset somewhat by a$3.2 million,or 44.0 percent increase in connection fees and a $2.7 million, or 7.1 percent increase in property tax revenues. This decrease in investment and interest income is attributable to both lower cash and investment balances and lower yields earned on investments over the prior year. Cash and investment balances declined in FY 2001-02 from the prior year by $11.3 million from $476.6 million to $465.3 million, or 2.4 percent, while the yields earned on investments declined from 8.77 percent to 5.96 percent during this same time period. The $3.2 million j increase in connection fees and the $2.7 million increase in property tax revenues is reflective of the �+ continuing upturn in the real estate market as total assessed valuations have also increased over the prior year by 8.2 percent. Of the 10.0 percent increase in operating expense before depreciation and amortization, collection L system operating activities increased 24.3 percent, or$3.1 million, while treatment and disposal operating expenses increased by only 6.38 percent,or$3.1 million. I Salaries and wages expenses declined $3.3 million, or 41.6 percent within the collection activities while u increasing $2.2 million, or 7.5 percent within the treatment and disposal activities. The net decline of$1.1 million is offset by increases to salaries and benefits capitalized within the capital improvement program. Including salaries and benefits capitalized in capital pmjects, total District salaries and benefits were $43.6 million, up$3.5 million, or 8.8 percent from the prior year. Supplies, repairs and maintenance services increased $3.8 million (from $5,337,185 to $9,164,056), or L 71.7 percent over the prior year due primarily to repair costs of a force main within the collection system. The 22.2 percent,or$4.0 million increase in non-operating expense is comprised of$3.8 million in capital L grants to member agencies, a $3.7 million, or 4,190.0 percent increase in other non-operating expense, somewhat offset by a 19.6 percent, or $3.5 million reduction in interest expense. The $3.8 million in capital grants to member agencies consists of funding that was provided forthe repair and replacement of I local sewers owned and maintained by member agencies in order to reduce rainfall induced inflow and L.I infiltration into the District's treatment facilities. The District trunk sewers comprise roughly three percent of the overall length of sewers in the District's service area. The remaining 97 percent are private and local agency owned smaller diameter sewers and laterals. L+ The $3.7 million increase in other non-operating expense is attributable to the obsolescence of unusable inventory and expensing capacity rights that have expired. V The$3.5 million reduction in interest expense is the result of the favorable decline in the daily and weekly interest rates on the District's variable rate certificates of participation debt program that fell from just L under three percent in FY 2000-01 to 1.54 percent in FY 2001-02. The $10.4 million increase in net capital contributions over the prior year is primarily attributed to the FY 2000-01 $9.0 million capital distribution to the Irvine Ranch Water District (IRWD) that was an agreed ! upon reduction in the amount of reserves IRWD was to have on deposit with the Orange County Sanitation District. L 6 L Capital Assets At June 30, 2002, the District had a net investment of $874 million in capital assets. This amount represents a net increase(including additions and deletions)of$28.1 million,or 3.3 percent over the prior year. Schedule of Capital Assets .. (Net of Depreciation and Amortization) (Dollars in thousands) .+ Percentage June 30, June 30, Increase Increase 2002 2001 (Decrease) (Decrease) Land $ 10,399 $ 10,399 $ - 0.0% Construction in Progress 177,713 144,805 32,908 22.7% Sewage collection facilities 244,721 234,766 9,955 4.2% Sewage treatment facilities 333,717 342,371 (8,654) -2.5% Sewage disposal facilities 54,646 56,895 (2,249) -4.0% General and administrative facilities 52,810 56,709 (3,899) -6.9% Capital assets, net 874,006 845,945 28,061 3.3% Major capital asset additions for the current fiscal year included the following: . $9.0 million on the construction of 16 Additional Primary Clarifiers at Plant No. 1 .. . $6.2 million on the design of the Ground Water Replenishment System . $5.9 million on the construction of the Replacement of Back Bay Trunk Sewer . $5.4 million on the Solids Storage and Truck Loading Facility . $3.1 million on the Long Term Permanent Monitoring Program . $2.9 million on the Rehabilitation of Digesters at Plant No.2 . $2.8 million on the Headworks Improvements at Plant No.2 . $2.5 million on the Plant Reirwention/Automation Project . $2.5 million on the Standby Power and Reliability Modifications . $2A million on the Scrubber Monitoring&Control Project . $2.2 million on the Rehabilitation of Trickling Filters m The District's F'Y 2002-03 capital budget forecasts spending of$154.4 million with a total CIP budget-to- completion of $1.9 billion. More detailed information about the District's capital assets is provided in r Notes 1 and 3 of Notes to the Financial Statements. Debt Administration .. At June 30, 2002, the District had $376.0 million outstanding in certificates of participation (COP), a net decrease of $10.1 million, or 2.6 percent from the prior year. This decrease is due to the installment •+ payments made by the District as no new long-term debt was issued. The District maintains an Aa3 from Moody's Investor Services, an AA/A-1 from Standard and Poor's Corporation, and an AA from Fitch. The District's long-range financing plan is designed to maintain these high ratings. Over the next ten years, the District is projecting an additional $1.34 billion in future treatment plant and collection system capital improvements. In accordance with the District's long-term 7 W debt fiscal policy, 50 percent of these improvements will be funded through current revenues with the L other 50 percent being funded through the issuance of new COP debt. In 2002-03, the District plans to issue $280 million of new COP debt as a reimbursement for capital L improvements constructed over the past three years, and a share of those to be constructed over the next two years. A total of$895 million in COP debt issuance is being proposed over the next ten years with a new issuance scheduled for every other year. These financings are needed early in the 20-year capital improvement program because the bulk of the construction is scheduled during the next ten years. W Economic Factors and Next Year's Budgets and Rates V • The unemployment rate within the County of Orange is currently 4.1 percent, which is an increase from a rate of 3.0 percent a year ago. W • Inflation for Orange County in 2002-03 is projected to be 2.5 percent based on the 2001 pmjected percentage change in consumer price index obtained from the November 2001 Economic and Business Review report prepared by Chapman University. W • Projected rate of return on investments was decreased from the 8.8 percent earnings rate in FY 2000-01 to 5.0 percent for FY 2002-03. All of these factors were considered in preparing the District's budget for FY 2002-03. The District user fee schedule was increased by 9.4 percent for FY 2002-03 over the prior year. The rate per single-family residence increased $7.50 per year from $80.00 to $87.50. These rate increases were necessary to finance the District's cash flow needs as treatment and disposal costs alone increased 24.9 percent due to the addition of disinfection treatment and other operating requirements. Requests for Information The financial report is designed to provide a general overview of the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, Orange County Sanitation District, P.O. Box 8127, Fountain Valley, CA 92728-8127. u W W V W W W 8 I W ORANGE COUNTY SANITATION DISTRICT BASIC FINANCIAL STATEMENTS d 9 ORANGE COUNTY SANITATION DISTRICT Statement of Net Assets June 30,2002 (With Comparative Data for June 30,2001) 2002 2001 V Current assets: Cash and cash equivalents $ 149,889,829 $ 70,450,598 Investments 279,796,096 370,059,084 u Accounts receivable, net of allowance for uncollectibles 9,211,697 4,585,296 Accrued interest receivable 3,629,425 6,292,956 Due from other governmental agencies 3,090,263 1.310,363 r, Connection fees receivable 1,460,201 379,858 Property tax receivable 1,066,242 1.019,497 Inventories 4.261,509 4,914,011 Prepaid and other assets 903,427 893,001 v Total current assets 453,308,689 459,904,734 Noncurrent assets: Restricted: Cash and rash equivalents 551,400 1,019,810 Investments 35,013,427 35,048.427 Accrued interest receivable 505,919 399,890 Unrestricted: Capital assets, net 874,005,916 845,945,309 Deferred charges 1,956,177 2,068,982 Excess purchase price over book value on acquired assets, net 9,455,656 10,113,365 Other assets,net 4,166,023 1,968,998 r, Total noncurrent assets 925,654,518 896,564,781 Total assets 1,378,963,207 1,356,469,515 Current liabilities: Accounts payable 13,958,885 11585937 Accrued expenses 6,205,859 4:209:883 Retentions payable 964,054 299,893 Interest payable 3,266,440 3,268,881 Deposits 47,139 300,929 u Current portion of long-tens obligations 15,638,321 10,851,060 Total current liabilities 40,080,698 30,516.583 u Noncurrent liabilities: Noncurrent portion of long-term obligations 364,908,824 378,991,764 Total liabilities 404,989,522 409,508,347 s. Net assets: Invested in capital assets,net of related debt 501,997,165 463,935,151 y Restricted for debt service 36,070,746 36.468,127 Unrestricted 435,905,774 446,557,890 Total net assets $ 973,973,685 $ 946,961,168 u W See Accompanying Notes to Basic Financial Statements. 10 L. ORANGE COUNTY SANITATION DISTRICT Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2002 (With Comparative Data for the Year Ended June 30, 2001) r 2002 2001 Operating revenues: Service charges $ 79,609,023 $ 72,565,948 Permit and inspection fees 395,931 688,061 Total operating revenues 80,004,954 73,254,009 Operating expenses other than depreciation and amortization: Salaries and benefits 35,628,682 33.733,942 Utilities 4,967,535 5.523,535 Supplies, repairs and maintenance 9,164,056 5,337,185 Contractual services 13,933,729 12,914,639 Directors'fees 146,014 90.059 Meetings and training 724.158 710,638 Other 3,999,043 4,009,813 Total operating expenses other than depreciation and amortization 68.563.217 62.319,811 Operating income before depreciation and amortization 11,441,737 10,934.198 Depreciation and amortization 46,332,349 43,530,118 Amortization of excess purchase price over book value on acquired assets 657,709 657,709 Operating loss (35,548,321) (33.253,629) Non-operating revenues: Property taxes 41,139,450 38,410,936 Investment and Interest income 28,073,413 39,867,702 Connection fees 10,560,167 7,331,611 Other 2,202,455 1,835,400 Total non-operating revenues 81,975,485 87,445.649 r Non-operating expenses: Interest 14,406,429 17,922,853 ,r Capital grants to member agencies 3,837,510 - Other 3.770,753 87,897 Total non-operating expenses 22,014,692 18,010,750 r Income before capital contributions 24,412,472 36,181,270 Capital contributions from other agencies 2,600,045 1,271,179 i° Capital distributions to other agencies (9,023,859) Change in net assets 27,012,517 28,428,590 Total net assets-beginning 946,961,168 918,532,578 Total net assets-ending $973,973,685 $946,961,168 See Accompanying Notes to Basic Financial Statements. 11 ORANGE COUNTY SANITATION DISTRICT W Statement of Cash Flows For the Year Ended June 30,2002 (With Comparative Data for the Year Ended June 30,2001) 2002 2001 Cash flows from operating activities: Receipts from customers and users $ 76.603,626 $ 77,039,619 LW Payments to employees (36,026,686) (33,612,688) Payments to suppliers (27,208,290) (23,055,737) Net cash provided by operations 13,368,650 20,371,194 Cash flows from noncapital financing activities: W Connection tees 9,479,824 8.009.035 Proceeds from property taxes 41,092.705 38.350.696 Grants to member agencies (3,837,510) W Net cash provided by noncapital financing activities 46,735,019 46,359,631 Cash flows from capital and related financing activities: Additions to property,plant and equipment (83.857.457) (69,751,180) Disposal of property,plant,and equipment 3.531.584 954,582 W Additions to other assets (4,147) (3.984) Disposal of other assets 4,147 3,984 Interest paid (13,146,377) (17,835,811) Proceeds from certificates of participation Issuance 206,688.688 W Certificates of participation issuance costs - (595,944) Principal payments on certificates of participation (10,370,000) (178.090.000) Payment to refunding escrow agent 14,427,734) Capital distributions (9,023,859) W Proceeds from capital contributions 1,780,490 1,056,763 Net man used by capital and related financing activities (102,001,751) (61,024,495) Cash flows from Investing activities: W Proceeds from the sale of investments 1.779.710.290 1,060,462,556 Purchases of Investments (1,687.990,859) (1,132,004,853) Interest received 29,209,472 30,316271 Net cash provided(used)by Investing activities 120,928,903 (41,226,026) W Net increase(decrease)in pan and cash equivalents 78,970,821 (35.519.696) Cash and cash equivalents,beginning of year 71,470,408 108,990,104 Cash and cash equivalents,end of year $ 150,441,229 $ 71.470.408 y Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (35,548,321) $ (33,253.629) Adjustments to reconcile operating loss to net cash provided by operations: y Depredation and amortization 46.990.058 44,187,827 Other nonoperaling revenues 2.185.427 1,636,400 Other nonoperaling expenses (911,733) (87,897) (Increasoydeaease In operating assets: W Accounts receivable (4,626.401) 1.950.210 Due from other governmental agencies (960.354) Inventories 652,572 (191,705) Prepaid and other assets (10.420) (227,383) W Inaease/(deaease)In operating liabilities: Accounts payable 2,372,848 5.278,342 Accrued expenses 1.995.976 81.970 Retentions payable 664,161 (128,197) W Deposits _ (253,790) 38.972 Arbitrage payable 587.390 153,000 Compensated absences 192.960 44,850 Claims and judgments 38,193 889,434 W Net cash provided by operations $ 13,368,650 $ 20,371,194 Nompsh Activities: Unrealized gain on the fair value or investments $ 1.421,443 $ 7.999.509 W Disposal of assets wlih no cash effect 2.841,992 - Debt issuance cost-underwriter's fee - 549.453 Debt proceeds deposited to escrow - 11,361,858 See Accompanying Notes to Basic Financial Statements. 12 W ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2002 (1) Summary of Significant Accountina Policies Reporting Entity The Orange County Sanitation District(District)is a public agency which owns and operates certain wastewater facilities in order to provide regional wastewater collection, treatment, and disposal services to approximately 2.3 million people in the northern and central portion of the County of Orange, California. The District is managed by an administrative organization comprised of directors appointed by the agencies and cities which are serviced by the District. The District's service area was originally formed in 1954 pursuant to the County Sanitation District Act and consisted of seven independent special districts. Two additional districts were formed and additional service areas were added in 1985 and 1986. These special districts were jointly responsible for the treatment and disposal facilities which they each used. In April of 1998, the Board of Supervisors of Orange County passed Resolution 98-140 approving the consolidation of the existing nine special districts into a new, single sanitation district. This action was taken in order to simplify the governance structures, reduce the size of the District's Board of Directors, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes. Pursuant to the Resolution and Government Code Section 57500, the predecessor special districts transferred and assigned all of their powers, rights, duties,obligations, functions and properties to the District,including all assets, liabilities, and equity. r Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of two of the previous districts have been maintained for the purpose of collecting sewer user fees at the previously established rate schedules and are known as Revenue Area No. 7 and Revenue Area No. 14. The boundaries of the other seven districts have been consolidated .. and are collectively referred to as the Consolidated Revenue Area. The District utilizes joint operating and capital outlay accounts to pay joint operating and construction costs of the revenue areas. These joint costs are allocated to each revenue area based on gallons of sewage flow. The accompanying financial statements present the District and its blended component unit, the Orange County Sanitation District Financing Corporation. The Corporation is a legally separate entity although in substance it is considered to be part of the District's operations. The District is considered to be financially accountable for the Corporation which is govemed by a board comprised entirely of the District's board members. There is no requirement for separate financial statements of the Corporation; consequently, separate financial statements for the Corporation are not prepared. The Corporation had no financial activity during the fiscal year ended June 30, 2002, other than principal and interest payments on certificates of participation which were issued in prior years(see Note 4). The District is independent of and overlaps other formal political jurisdictions. There are many governmental enttes, including the County of Orange, that operate within the District's jurisdiction; however, financial information for these entities is not included in the accompanying financial statements in accordance with the provisions of Governmental Accounting Standards Board (GASS)Statement 14. Measurement Focus and Basis of Accounting The District operates as an enterprise activity. Enterprise funds account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the Board of Directors is that the costs (expenses, including depreciation and amortization)of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. (Continued) 13 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements V June 30,2002 Basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Enterprise funds are accounted for on the Bow of economic resources measurement focus and use the accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when Incurred, regardless of the timing of v related cash Bows. The District applies all GASS pronouncements cumentiy in effect as well as Financial Accounting Standards Board Statements and Interpretations,Accounting Principal Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB .� pronouncements. Operating Plans Each year, District staff prepares an annual operating plan which is adopted by the Board of ` Directors. The annual operating plan is used to serve as a basis for monitoring financial progress, estimating the levy and collection of taxes,and determining future service charge rates. During the year, these plans may be amended as circumstances or levels of operation dictate. W Cash Equivalents Investments with original maturities of three months or less are considered to be cash equivalents. Investments All investments are stated at fair value (the value at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation ,r sale). Changes in fair value that occur during the fiscal year are reported as part of Investment and interest income. Investment and interest income includes interest earnings and realized and unrealized changes in fair value. Accounts Receivable Accounts receivable is shown net of the allowance for unoollectibles which was $271,141 at June 30, 2002. Any unbilled sewer service receivables are recorded at year-end. Inventory Inventory is stated at cost,which approximates market, on a weighted-average basis. Property, Plant and Equipment Outlays for property, plant, equipment, and construction in progress are recorded in the revenue area which will use the asset. Such outlays may be for individual revenue area assets or for ai,,, revenue area's share of joint assets. Property, plant and equipment are recorded at cost, except for assets acquired by contribution, which are recorded at fair market value at the time received. Cost includes labor; materials; r outside services; vehicle and equipment usage; allocated indirect charges such as engineering, purchasing, supervision and other fringe benefits; and certain administrative and general expenses. Net interest costs are capitalized on projects during the construction period. There were no capitalized interest costs during the fiscal year ended June 30, 2002. Amortization of previously capitalized interest was$893,900 during the fiscal year ended June 30, 2002. Depreciation of plant and equipment is provided for over the estimated useful lives of the assets r using the straight-line method. The District generally follows the guidelines of estimated useful lives as recommended in the State of California Controller's Uniform System of Accounts for Waste Disposal Districts,which range from 3 to 75 years. The following are estimated useful lives for major classes of depreciable assets: Sewage collection facilities—50 years, Sewage treatment W facilities —40 years, Sewage disposal facilities — 40 years, and General plant and administrative facilities—11.5 years. 14 (Continued) u ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 .. Amortization Amortization of the excess purchase price over the book value of assets acquired is provided using the straight-line method over an estimated useful life of 30 years. Discounts and deferred charges on the certificates of participation are amortized to interest expense over the respective terms of the installment obligations based on their effective interest rates(note 4). Restricted Assets Certain assets are classed as restricted because their use is limited by applicable debt covenants. Specifically, the assets are restricted for installment payments due on certificates of participation or are maintained by a trustee as a reserve requirement for the certificates of participation. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first,then unrestricted resources as they are needed. Compensated Absences .. The District's employees, other than operations and maintenance personnel, are granted vacation and sick leave in varying amounts with maximum accumulations of 200 hours and 560 hours for vacation and sick days earned but unused, respectively. Operations and maintenance personnel " accrue "Personal Leave" at a rate of between 60 and 200 hours per year depending on years of service. Personal leave can be accumulated up to a maximum of 400 hours. Vacation and sick leave benefits and personal days are recorded as an expense and liability when earned by eligible employees. In determining the estimated sick leave liability at June 30 of each year, the District assumes that all employee's accumulated sick leave balances will ultimately be paid out at 35 percent of the ending balance. The distribution between current and long-term " portions of the liability are based on historical trends. Claims and Judgments The District records estimated losses, net of any Insurance coverage under its self-insurance program when It is probable that a claim liability has been incurred and when the amount of the loss can be reasonably estimated. Claims payable includes an estimate for incurred but 'tl unreported claims. The distribution between current and long-term portions of the liability are based on historical trends. Property Taxes The County is permitted by State law (Proposition 13) to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed value no more than two percent per year. The District receives a share of this basic levy, proportionate to what was received in the 1976 to 1978 period. v. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two Installments which become delinquent after December 10 and April 10. The County bills and collects the property taxes and remits them to the District in installments during the year. Property tax revenues are recognized when levied to the extent that they are available to finance current operations. The Board of Directors has designated property tax revenue to be used for the annual debt service requirements prior to being used as funding for current operations. (Continued) 15 uv ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2002 u Connection Fee Revenue Connection fees represent fees received from developers and residents to join new or to extend existing trunk sewer systems in excess of the cost to connect. These fees may be used for operating or capital purposes. Capital Contributions Capital contributions consist of charges to certain special districts and agencies for their agreed- upon share of additions to capital assets. Operatino and Non-operating Revenues and Expenses Operating revenues and expenses result from collecting, treating, and disposing of wastewater and inspection and permitting services. The District's operating revenues consist of charges to customers for the services provided. Operating expenses include the cost of providing these services, administrative expenses, and depreciation and amortization expenses. All revenues and expenses not meeting these definitions and which are not capital in nature are reported as non- operating revenues and expenses. Self-Insurance Plans For the year ended June 30, 2002, the District was self-insured for portions of workers' compensation, property damage, and general liability. The self-insurance portion of workers' compensation is $500,000 per person per occurrence with outside excess insurance coverage to $25 million. The self-insured portion for property damage covering fire, flood, and other perils is $25,000 per occurrence with outside excess insurance coverage to $300 million for fire, flood, and other perils. The District is self-insured for all property damage from the perils of earthquakes. The r, District also maintains outside comprehensive boiler and machinery insurance with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $100,000. The District is substantially self-insured for general liability coverage with a $100,000 self-insured deductible, but has excess general liability coverage to$25 million per occurrence. There were no significant changes in insurance coverage during the fiscal year ended June 30, 2002 except for(1) earthquake coverage which at June 30, 2001 had a self-insured deductible of r, $25 million per occurrence, with deductibles of 5 percent per unit of insurance, and (2) the self- insurance portion of workers' compensation was $300,000 per person per occurrence with outside excess insurance coverage to the statutory limit at June 30, 2001. During the past three fiscal years there have been no settlements in excess of covered amounts. Claims against the District are processed by outside insurance administrators. These claims are charged to claims expense based on amounts which will ultimately be paid. Claims incurred but not yet reported have been considered in determining the accrual for loss contingencies. District management believes that there are no unrecorded claims as of June 30, 2002 that would materially affect the financial position of the District. V Deferred Compensation Plan The District offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The plan permits all employees of the District to defer a v portion of their salary until future years. The amount defamed is not available to employees untl termination, retirement, death or for unforeseeable emergency. The assets of the plan are held in trust for the exclusive benefit of the participants and their beneficiaries. Since the plan assets are rr administered by an outside party and are not subject to the claims of the District's general creditors, in accordance with GASS Statement 32, the plan's assets and liabilities are not included within the District's financial statements. (Continued) 16 W ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements `tl June 30,2002 s, New Accounting and Reporting Requirements The District is required to newly apply three GASS Statements for the fiscal year beginning July 1, 2001. The new Statements are 1)Number 34, "Basic Financial Statements—and Management's Discussion and Analysis — for State and Local Governments," 2) Number 37, "Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments: Omnibus," and 3)Number 38, "Certain Financial Statement Note Disclosures" These Statements require that the difference between assets and liabilities be reported as net assets, not equity; that a Management's Discussion and Analysis (MD&A) Section precede the basic financial statements; and that plant assets be Capitalized and depreciated over their estimated useful lives. Since the District has historically capitalized its assets and recorded depreciation, the only significant changes made by the District in order to Comply with the new requirements are the MD&A Section, changes in the names of financial statements, and reporting the details of net assets. Reclassifications Certain reclassificafions have been made to the prior year data to conform to the current year's presentation. (2) Cash and Investments The District follows the practice of pooling cash and investments of all funds except for cash held .. by fiscal agents. Interest income earned on pooled Cash and investments is allocated to the various funds based on month-end cash and investment balances. Interest income from cash and investments of funds excluded from pooled cash and investments is recorded directly to the related fund. Deposits Deposits in banks are maintained in financial institutions which provide deposit protection on the bank balance from the Federal Depository Insurance Corporation. The California Government Code requires California banks and savings and loans to secure local government deposits by pledging government securities equal to 110% of the deposits or by pledging first trust deed mortgage notes equal to 150%of the deposits. Deposits are categorized herein, in accordance with Governmental Accounting Standards Board ,r (GASB) Statement No. 3, to give an indication of the level of credit risk assumed by the District at year-end. Category 1- Insured or Collateralized with securities held by the District or by its agent in the District's name. Category 2- Collateralized with securities held by the financial institution's trust department or agent in the District's name. Category 3- Uncollateralized or collateralized but the pledged securities are not held in the District's name. (Continued) 17 L+ ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 Investments V Statutes authorize the District to invest in obligations of the U.S. Government, state and local governmental agencies, negotiable certificates of deposit, bankers acceptances, commercial paper, reverse repurchase agreements, and a variety of other investment instruments which are allowable under the California Government Code section 53600 at seq. Investments are categorized herein, in accordance with GASB Statement No. 3, to give an indication of the level of credit risk assumed by the District at year-end. Category 1- Insured or registered, or securities held by the District or its agent in the District's r name. Category 2- Uninsured and unregistered, with securities held by the purchasing financial institution's trust department or agent in the District's name. r Category 3- Uninsured and unregistered, with securities held by the purchasing financial Institution's trust department or agent but not in the District's name. W The District invests in overnight repurchase agreements in order to maximize the yield on funds on deposit as a result of outstanding checks. At June 30. 2002, the District's total demand cash bank balance amounted to $1,314,766, of which $943.000 was invested in overnight repurchase agreements. Investments Not Subject to Categorization u Investments in the California Local Agency Investment Fund (LAIF) and the Orange County Investment Pool (OCIP) are not categorized, as GASB Statement No. 3 does not require categorization of investment pools managed by another government. Also,cash held by trustees is 6 w not categorized because the underlying assets of the funds are invested within open-ended mutual funds. Decisions regarding these investments are made by fiscal agents for the District who are acting in accordance with agreements entered into with the District. All such investments are not V required to be categorized under interpretive guidelines issued by me GASB. The District is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of y California. The fair value of the District's Investment in this pool is reported in the accompanying financial statements at amounts based upon the District's pro-rata share of the fair value provided by LAW for the entire LAIF portfolio(in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. The management of LAW has indicated to the District that as of June 30, 2002 the amortized cost of the pool was $47,756,784,469 and the fair value of the pool was $47,889,555,193. Included in LAIF's investment portfolio are collateralized mortgage W obligations, mortgage-backed securities, other asset-backed securities, and floating rate securities issued by federal agencies, government-sponsored enterprises,and corporations. W W (Continued) 18 W ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 A summary of deposits and investments as of June 30, 2002,is categorized as follows: June 30,2002 Carrying Amount Bank Deposits: Unrestricted Restricted Balance Category Demand cash accounts $ (391.537) $ - $ 371,766 2 Bank investment contracts: -with JPMorgan Chase Bank - 4.325,000 4,325,000 3 -with State Street Bank&Trust 30.688,427 30,688,427 3 Total Deposits (391,537) 35,013.427 $ 35,385.193 m Investments: Repurchase agreement 943.000 - 3 Cash and investments with LAIF 22,60,798 - N/A U.S.government securities 224,242.178 - 1 Commercial paper 6,482,910 - 1 Corporate bonds/notes 87,840,489 1 Mutual funds 87,905.087 - N/A .. Cash and investments held with fiscal agents-mutual funds 551,400 NIA Total Investments 430,077.462 551,400 Total Carrying Amount $ 429,685,925 $ 35.564,827 Cash and cash equivalents and investments as reported on the ,. statement of net assets: Cash and cash equivalents $ 149,889,829 $ 551,400 Investments 279.796,096 35,013,427 $ 429,685.925 $ 35.564,827 ,e Although the bank investment contract with State Street Bank and Trust is classed as category 3, the depositor, AIG Matched Funding Corporation, is required to pledge collateral in an amount equal to 103%of the amount of the investment contract if the long-term unsecured, unsubordinated debt securities of AIG fall below a S&P rating of"AA-"or below a Moody's rating of"AaK At June 30, 2002, the U.S. Government Securities investments included mortgage-backed securities totaling $96,252,860, and the U.S. Government Securities and Corporate Bond investments included floating-rate notes totaling$43,278,209. m (Continued) 19 r L ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements W June 30,2002 I (3) Property.Plant. Equipment and Construction in Proaress W Capital asset activity for the year ended June 30,2002 is as follows: Balance at Balance at W June 30,2001 Addilions Deletions June 30,2D02 Capital assets not depreciated: Cast: Lard $ 10,398.596 $ 23.284 $ (23,285) $ 10,398.595 u Construction in progress 144,804,608 80,353.642 (47,445.308) 177,712,942 Total nondepreciable assets 155.203204 80,376,926 (47,468,593) 188,111,537 u Depreciable capital assets: Cost Sewage collection facilities 366,916,487 19,367,378 (81,051) 386,202.814 V Sewage treatment facilities 607,730.120 22.567,182 (2,623,794) 627,673,508 Sewage disposal facilities 90.161,861 351.235 (351,236) 90.161.860 General and administrative facilities 121,441.616 4,635,052 (3,660,878) 122,415,700 Subtotal 1,186,250,084 46.920,847 (6,716,959) 1,226A53,972 1m Accumulated depreciation: Sewage collection facilities (1 a2,150,234) (9,372,918) 41.468 (141,481,684) Sewage treatment facilities (265,359,119) (29,743.464) IJ46.448 (293,956.135) Sawage disposal facilities (33,266,635) (2,392,735) 143.295 (35516,075) General and administrative facilities (64.731,991) (5,202,430) 328,722 (69,605.699) Subtotal (495.507,979) (46,711,547) 1,659,933 (540,559,593) Net depreciable assets 690.742.105 209.300 (5,057,026) 685,894,379 Net capital assets $ 845,945,309 $ 80.586,226 $$ 52��25,619) $ 874,005,916 (4) Long-Term Debt 61 The following is a summary of the changes in long-term debt for the year ended June 30,2002: 1 lr Certificates Arbitrage Compensated Claims and of Payable Absences Judgments Participation Totals 16W Balance,July $ 456.500 $ 3,611,750 $ 1.695,434 $ 386,370,000 $ 392.133,684 Additions 587,390 3,595,835 260.950 - 4,444,175 Deletions - 3,402,885 222,757 10,370.000 13,995,642 Balance,June 30 1,043,890 3,804.700 1,733,627 376,000,000 382,582,217 W Due within one year 696,2D0 3,403,000 514,121 11,025,000 15,638,321 Unamortized discount - - 420,979 420,979 UnamoNzed deferred W amount on refundings - - - 1,614,093 1,614.093 Longterm amount $ 347.690 $ 401,700 $ 1.219,506 $ 362,939,928 $ 364.908,824 W Arbitrage Pavable The Tax Reform Act of 1986 (the Act) requires the District to calculate and remit rebatable arbitrage earnings to the Internal Revenue Service. Certain of the District's debt and interest W eamings on the proceeds thereof are subject to the requirements of the Act. The District's liability at June 30. 2002 is $1,043,890 with$696,200 to be paid in August 2002. (Continued) 20 W ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements " June 30,2002 Compensated Absences The District's policies related to compensated absences are described in Note 1. The District's liability at June 30, 2002 is $3,804,700 with an estimated $3,403,000 to be paid or used within the ® next fiscal year. Claims and Judgments Payable The District is self-insured in a number of areas as described in Note 1. The following is a summary of the claims and judgments payable as of June 30,2002 and 2001: s, 2001-02 2000-01 Claims and judgments payable at July 1 $1,695,434 $ 1,OO6,000 Claims incurred during the fiscal year 260,950 1,094,836 Payments on claims during the fiscal year (222,757) (395,402) Claims and judgments payable at June 30 1,733,627 1,695,434 Less: current portion (514,121) (481,060) Total long-term claims and judgments payable $1,219,506 $1214,374 Certificates of Participation ` The District issues certificates of participation in order to finance construction of the treatment facilities. Each certificate of participation represents a direct and proportionate interest in the semi- annual interest payments. Installment payments for the issues are payable from any source of r lawfully available funds of the District. Certificates of participation at June 30, 2002 are summarized as follows: Amount 1992 refunding certificates of participation $118,950,000 1993 refunding certificates of participation 43.250.000 2000 refunding certificates of participation 213.800,000 Total certificates of participation payable $376,000,000 Refunded Certificates of Participation 1986 Certificates of Participation On August 13, 1986, District Numbers 1, 2 and 3 completed the sale of $117,000,000 of ^" certificates of participation. In December 1992, the entire remaining principal balance of the certificates was refunded with a portion of the proceeds of the December 1992 refunding certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. The remaining outstanding certificates were called in full on August 1, 1996. 1990-1992 Series A Certificates of Participation On December 5, 1990, all Districts completed the sale of $100,000,000 of certificates of participation. On August 31. 2000, refunding certificates of participation were issued, and a portion of the proceeds (see below) was used to currently refund the remaining principal balance, at no call premium, of the 1990-92 Series A certificates on the call date of October 6, 2000. (Continued) 21 .e W ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 1990-1992 Series B Certificates of Participation y On May 1, 1991, District Numbers 1, 2, 3, 5,6, 7 and 11 completed the sale of $117,565,000 of certificates of participation. This Series was refunded as follows: • On December 3,1992, $38,350,000 of the outstanding principal balance of the certificates was refunded with a portion of the proceeds of the December 1992 refunding certificates of participation (see below)in a transaction accounted for as an in-substance defeasance. • On September 1, 1993, $39,740,000 of the outstanding principal balance of the certificates was refunded from the proceeds of the September 1993 refunding certificates of participation (see below) in a transaction accounted for as an in-substance defeasance. `. • On August 31, 2000, the remaining outstanding principal balance of $15,395.000 was refunded from the proceeds of the August 2000 refunding certificates of participation (see below)in a transaction accounted for as an in-substance defeasance. • All outstanding certificates were called in full with a two percent premium on August 1, 2001. v 1990-1992 Series C Certificates of Participation On September 1, 1992, District Numbers 1, 2, 3, 6, 7 and 11 completed the sale of r, $98,500,000 of certificates of participation. On August 31, 2000, refunding certificates of participation were issued, and a portion of the proceeds (see below) was used to currently refund the remaining principal balance,at no call premium,of the 1990-92 Series C certificates on the call date of October 6,2000. v Outstanding Cedifcates of Participation December 1992 Refunding Certificates of Participation On December 3, 1992, the District completed the sale of$160,600,000 of refunding certificates of participation. The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. Annual principal payments are due August 1, beginning August 1, 1993. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2002 reserve of $13,377,000 is held by the trustee, State Street Bank and Trust, (Note 2) and meets the reserve requirement. Additionally, AMBAC provides municipal bond insurance for the certificates. On October 1, 1992, the District and a brokerage company entered into an interest rate exchange swap agreement pursuant to which the District will pay a fixed Interest rate of 5.55 percent and receive a variable interest rate based on a tax exempt daily interest rate as determined by the remarketing agent on a notional amount of$160,600,000. This interest rate ., swap agreement is accounted for as a hedge, and the associated interest rate differential to be paid or received is charged to interest expense as interest rates change. The 20-year swap agreement matures on August 1,2013. W The certificates were issued to refund the remaining outstanding principal balance of the 1986 certificates of participation and $38,350,000 of the outstanding principal balance of the 1990- 92 Series B certificates of participation (see above). (Continued) 22 r Cy ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 September 1993 Refunding Certificates of Participation On September 2, 1993, the District completed the sale of$46,000,000 of refunding certificates of participation. The interest rate on the refunding certificates is adjusted by the remarketing d agent daily based on market interest rates. Annual principal payments are due August 1, beginning August 1, 1995.The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2002 reserve of $4,325.000 is held by the trustee, JPMorgan Chase Bank, (Note 2) and meets the reserve m requirement. On September 1, 1993, the District and a brokerage company entered into an interest rate exchange swap agreement pursuant to which the District will pay a fixed interest rate of 4.56 percent and receive a variable interest rate based on a tax exempt daily interest rate as determined by the remarketing agent on a notional amount of$46,000,000. This interest rate swap agreement is accounted for as a hedge, and the associated interest rate differential to be a, paid or received is charged to interest expense as interest rates change. The 22-year swap agreement matures on August 1,2016. The certificates were issued to refund $39,740,000 of the outstanding principal balance of the 1990-92 Series 8 certificates of participation(see above). August 2000 Refunding Certificates of Participation On August 31. 2000, the District completed the sale of$218,600,000 of refunding certificates of participation. The interest rate on the refunding certificates is adjusted by the remarketing agent daily based on market interest rates. The weighted average interest rate for the fiscal year ended June 30,2002 was 1.53%. Annual principal payments are due August 1. beginning August 1, 2001. The trust agreement for the cartificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2002 reserve of $17,311,427 is held by State Street Bank and Trust, the trustee, (Note 2) and meets the reserve requirement. The cartificates were issued to refund the remaining outstanding principal balance of the 1990- 92 Series A, B, and C certificates of participation (see above)and to reimburse the District for w improvements made to the wastewater system. Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation as of June 30, 2002.are as follows: Year Ending Estimated .. June 30, Principal interest Total 2003 $ 11,025,000 $ 11,928,388 It 22,953,388 2004 11,610,000 11,480,341 23,090,341 2005 12,040,000 11,005,040 23,045,040 2006 12,755.000 10,387,759 23.142,759 2007 13,465,000 9,723.924 23,188,924 2008-2012 80,095,000 36,991.886 117,086,886 2013-2017 120,010,000 17,522.632 137,532,632 2018-2022 99,500,000 4.259.355 103,759,355 2023-2027 7,900.000 961.771 8,861.771 2028.2031 7,600.000 215,834 7.815.834 Total $ 376,000.000 $ 114,476,930 $ 490.476.930 (Continued) 23 eb ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 (5) Net Assets The difference between assets and liabilities is reported as net assets. Net assets are classified as restricted, unrestricted, or invested in capital assets, net of related debt. Net assets at June 30, 2002 consisted of the following: June 30,2002 Invested in capital assets,net of related debt: r Capital assets,net of accumulated depredation $ 874.005,916 Outstanding debt issued to acquire capital assets,net of unamortized bond discount ` and deferred amount on refundings (373,964,928) Unamortized deferred charges of debt issued to acquire capital assets 1,956,177 Subtotal 501.997.165 Restricted by debt covenants for debt service on r certificates of participation 36,070,746 Unrestricted 435,905,774 r $ 973,973,885 (6) Pension Plan r The District participates in the Orange County Employee's Retirement System (OCERS), a cost-sharing multiple-employer, defined benefit pension plan which is governed and administered by a nine member Board of Retirement OCERS was established in 1945 under the provisions of r the County Employees Retirement Law of 1937, and provides members with retirement, death, disability,and cost-of-living benefits. OCERS issues a stand-alone comprehensive annual financial report which can be obtained from OCERS at 2223 Wellington Avenue, Santa Ana, California 92701. The payroll of employees covered by OCERS was $32,391,018 for the year ended June 30, 2002; $30,293.967 for the year ended June 30,2001;and$28.494,778 for the year ended June 30,2000. ,1 The District's total payroll was $36,387,839 in 2002;$34,309,332 in 2001;and$32,781,881 in 2000. Benefits r All District full-time employees participate in OCERS. Employees who retire at or after age 50 with ten or more years of service are entitled to an annual retirement allowance. The amount of the retirement allowance is based upon the member's age at retirement, the members "final compen- sation'as defined in Section 31462 of the Retirement Law of 1937, the total years of service under ` OCERS, and the employees' classification as a Tier I or Tier II member. Benefits fully vest on reaching five years of service. OCERS also provides death and disability benefits. r Contributions As a condition of participation under the provisions of the County Employees Retirement Law of 1937, members are required to contribute a percentage of their annual compensation to OCERS. Tier I and Tier II covered employees are required to contribute 4.89%-7.51%and 6.66%- 10.23%. respectively, of their annual compensation to OCERS. The District is required to make periodic (Continued) ` 24 u ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 contributions to OCERS in amounts that are estimated to remain a constant percentage of covered employees' compensation such that, when combined with covered employees' contributions, will fully provide for all covered employees' benefits by the time they retire. The contribution requirements for the years ended June 30, 2002, 2001, and 2000 were $3,253,979, $2,621,366, and $3.123,312, respectively. This total contribution consisted of$2,223,055 from the District and $1,030,924 from employees in 2002;$1,671,941 from the District and $949,425 from employees in 2001; and $2,301,017 from the District and $822,295 from employees in 2000. The District's p, contributions represented 6.9%, 5.5%, and 8.1% of covered payroll and employee contributions represented 3.2%, 3.1%, and 2.9% of covered payroll for the years ended June 30, 2002, 2001. and 2000, respectively. The District's contributions for the years ended June 30, 2002. 2001, and 2000 represented 4.03%, 3.42%, and 4.26% of total contributions required of all participating entities, respectively. (7)Transactions with Irvine Ranch Water District s Revenue Area No. 14 Revenue Area No. 14 was formed as a result of a negotiated Agreement between the District and Irvine Ranch Water District(IRWD)as of July 1, 1985. Pursuant to the Agreement, IRWD paid the District$34,532,000 for an initial 16,000,000 gallons per day capacity in the District's joint treatment facilities (with an ultimate collection capacity of 32,000,000 gallons per day), together with a pro-rats interest in real property based on flow of 32,000,000 gallons per day.The book value of the .. assets purchased by IRWD was determined to be $14,553,000 as of June 30, 1986. The excess of the purchase price over the assets'book value of$19.979,000 at June 30, 1986 is being amortized over the remaining 30-year useful lives of the joint assets of Revenue Area No. 14. As of June 30, 2002,$10,523,344 of the excess of purchase price over the assets'book value was amortized. IRWD entered into a separate agreement with Revenue Area No. 14 whereby IRWD agreed to annually fund payment of Revenue Area No. 14's proportionate share of the District's joint capital d outlay revolving fund budget requirements and certain capital improvements during the term of the agreement, which contribution amounted to$2,599,820 in 2002. Consolidated Revenue Area IRWD has entered into an agreement with the District to provide funding to the Consolidated Revenue Area for the construction costs of certain wastewater collection, transmission, treatment and disposal facilities to be used by IRWD (the "Downcoast Agreement"). No new funding r occurred in 2002. The agreement also provides that IRWD would not be required to pay connection fees related to development in the Downcoast Area (as defined in the Downcoast Agreement). r (8)Commitments In March 2001. the District entered into an agreement with the Orange County Water District, .. California, to design and construct Phase 1 of the"Groundwater Replenishment System" (GWRS). The cost of this project is to be paid equally(50 percent shares)by each agency. The GWRS is a joint effort by the two agencies to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. The GWRS is planned for three phases, Phase 1 will produce approximately 72,000 acre-feet per year of recycled water by June 2007, Phase 2 will increase the total capacity to 112,000 acre-feet by the year 2010, and Phase 3 will increase the total capacity to 145,600 acre-feet par year by the year 2020. Following the ,. completion of Phase 1, the GWRS will have the capacity to divert up to 100 million gallons per day of flow from the District's ocean discharge. (Continued) 25 � i ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2002 As of June 30, 2002, the total estimated cost of GWRS Phase 1 was $402.4 million. Of this kw amount, up to $34.5 million may be reimbursed through grants from the U.S. Environmental Protection Agency, the State Bureau of Reclamation, and the State Water Resources Control Board. The District's estimated gross and net share is $201.2 million and $184.0, respectively. Costs incurred by the District through June 30,2002 total $10.3 million. (9)Subsequent Event As of June 30,2002,the District discharged treated wastewater to the ocean under a permit issued 4 by the Environmental Protection Agency and the State of California. The current discharge permit - includes a waiver under the 301(h) provisions of the Clean Water Act, allowing for less than full secondary treatment based on an ocean discharge of sufficient depth, distance, and dilution. This permitted effluentquality, which is rigorously monitored, has been achieved through a blended combination of advanced primary and secondary treated effluents. On July 17, 2002, the Board of Directors Approved Resolution No. OCSD-14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean". This resolution establishes the District's policy to treat all wastewater discharges into the ocean to secondary treatment standards thereby providing for continued public safety, marine ecosystem protection, se and water reclamation opportunities. To implement this policy, District staff was directed to _ immediately proceed with the planning, design, and implementation of treatment methods that will allow the agency to meet Federal Clean Water Act secondary treatment standards with the ` expressed purpose of eliminating the permit waiver received under Section 301(h) of the Federal Clean Water Act. The District estimates that it will take approximately eleven years and additional capital v improvement costs of $271 million to reach secondary treatment discharge standards. In the interim,the District will operate the plants to maximize available secondary treatment and to reduce effluent biochemical oxygen demand and suspended solid discharges below currently allowed limits. Each year the current 50 percent secondary portion will increase incrementally as " operations change and new facilities are constructed and placed in service over the next eleven _ years. 1� w r U v 26 W ORANGE COUNTY SANITATION DISTRICT SUPPLEMENTARY INFORMATION ve a m 27 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Net Assets June 30,2002 With Comparative Totals for June 30,2001 W Revenue Revenue Consolidated Totals Area No.7 Area No.14 Revenue Area 2002 2001 kr Current assets: Cash and cash equivalents $ 8,907.856 $ 1,565.096 $ 139.416,877 $ 149,889.829 $ 70,450,598 Investments 16,628.101 2,921,532 260,246A63 279.796.096 370,059,084 Accounts receivable,net of allowance W for uncoleclibles 759,178 1,396.206 7,056,313 9,211,697 4.585.296 Accrued interest receivable 406,496 97.994 3.124,935 3,629.425 6,292,956 - Due from other governmental agencies 50.250 2,653,715 386,298 3,090,263 1,310,363 Connection fees receivable 33.690 - 1,426,511 1,460,201 379.858 4+ Property lax receivable 104,917 - 961,325 1,066,242 1.019.497 Inventories 477,289 115.061 3,669,159 4,261,509 4,914,081 Prepaid and other assets 101,180 24.394 777,853 903A27 893.001 Total current assets 27,468,957 8,773.998 417,065,734 453,308.689 459.904,734 Noncurrent assets: Restricted: W Cash and rash equivalents 42.659 - 508,741 551.400 1,019,810 _ Investments 2,708,811 - 32,304,616 35.013,427 35,048,427 Accrued Interest receivable 22,097 - 483.822 505,919 399,890 L Unrestricted: Capital assets,net 93,683,845 41.043.410 739,278,661 874,005,916 845.945.309 Defamed charges 158,303 - 1,797,874 1,956,177 2,068.982 Excess purchase price over book value on acquired assets,net - 9A55,656 - 9,455,856 10,113,365 W Other assets,net 693,431 88.430 3.384.162 4.166,023 1,968,998 Total noncurrent assets 97.309,146 50,587,496 777,757,876 925,654,518 896.664,781 Total assets 124.778.103 59,361,494 1,194,823.610 1,378,963.207 1.356,469,516 - Current liabilities: �. Accounts payable 1,455.240 390.861 12.112,784 13,958,885 11,585,937 Accrued expenses 660,824 157.476 5,387.559 6.205,869 4.209,883 Retentions payable 60,764 18,008 885,282 964,054 299,893 Interest payable 124,136 - 3.142,304 3,286,440 3.268.881 W Deposits 5,280 1.272 40,587 47,139 300,929 Current portion of long-term obligations 1.192,201 107,329 14,348,791 15.638,321 10,851,060 W Total current liabilities 3,488,445 674.946 35.917,307 40.080.698 30,516.583 Noncurrent liabilities: Noncurrent portion of 1r long-term obligations 30.286,759 44.421 334,577,644 364,908.824 370.991,764 Total liabilities 33,775,204 719,367 370,494.951 404.989.522 409,508,347 W Net assets: Invested in capital assets, 63,048,033 41,043,410 397,905,722 501.997,165 463,935,151 net of related debt 4 Restricted for debt service 2.773,587 - 33,297,179 38.070,746 36,468,127 Unrestricted 25,181,299 17,598,717 393,125,758 435.905,774 446,557,890 Total net assets $91.002,899 $58.642.127 $ 824,328,859 $ 973.973,685 $ 946,961,168 r Lr 28 W r ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in Net Assets by Activity and Revenue Area For the Year Ended June 30,2002 Revenue Revenue Consolidated Area No.7 Area No. 14 Revenue Area Totals Collection activities: Revenues and capital contributions: ,r Pemtit and Inspection fees $ 69,332 $ 31180 $ 160,002 232,514 Other revenues 94,420 9,141 57,042 160,603 Other capital contributions 225 2.599,820 2.600,045 Total revenues and capital contributions 163,977 2,612,141 217,044 2,993,162 r Expenses: Salaries and benefit 799,012 85,991 3,742,652 4,627,655 ,. Utilities 56,543 69.774 457.726 584,043 Supplies,repairs and maintenance 967.743 160.962 5,175.029 6.303,734 Contractual services 750.689 41,822 1,906.824 2.699,335 Directors'fees 16,121 16,133 113,760 146,014 r Meetings and training 944 932 6,530 8.406 Other expenses 411,093 62,098 4,527.871 5,001,062 Total expenses 3,002,145 437,712 15,930,392 19,370,249 r Net collection activities (2,838.168) 2,174.429 (15.713,348) (16,377,087) r Treatment and disposal activities: Revenues: Service charges 249,938 60.253 1,921,402 2,231,593 Permit and inspection fees 18,302 4,412 140,703 163,417 Investment and interest income 36,052 8,691 277,149 321,892 Other revenues 228,687 55,129 1,758,036 2,041,852 Total revenues 532.979 128,485 4,097.290 4.758.754 Expenses: Salaries and benefit 3.472.117 837,025 26,691,885 31,001,027 Utilities 490.951 118,354 3,774,187 4,383,492 '^ Supplies,repairs and maintenance 320.360 77,228 2.462,734 2,860,322 Contractual services 1,258,250 303,327 9.672,817 11234,394 Meetings and training 80,163 19,326 616.263 715,752 r Other expenses 310,098 74,756 2,383,860 2.768.734 Total expenses 5,931,939 1,430.016 45,601,766 52,963,721 r Net treatment and disposal activities (5,398,960) (1,301,531) (41.504,476) (48,204,967) Unallocated revenues(expenses): Service charges 8,324,262 1,780,453 67,272.715 77.377.430 .� Property taxes 3,864,876 - 37,274,574 41,139,450 Investment and interest income 1,561.505 267.872 25,922,144 27,751,521 Connection fees 855,616 9,704,551 10.560,167 Interest expense (894,128) (3,536) (13.508,765) (14,406.429) Capital grants to member agencies - - (3,837,510) (3,837,510) Depreciation and amortization (5,975.160) (3,055,B04) (37,959,094) (46,990.068) Total unallocated revenues(expenses) 7,736,971 (1,011.015) 84.868,615 91,594,571 Total change in net assets $ (500,157) $ (138,117) $ 27,650,791 $ 27.012,517 31 �i �l l� Li (THIS PAGE INTENTIONALLY LEFT BLANK) W 1� I8.1f k+l li l l L 32 j Statistical Section R � R �• T n• n R Q• r ORANGE COUNTY SANITATION DISTRICT .. Expenses by Type (Dollars in Thousands) Last Ten Fiscal Years $120.000 $110,000 AM $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30.000 $20,000 $10,000 1992-93 1993.94 1994-95 1995-96 199697 1997-98 1998 99 1999 00 2000-01 2001-02 ■Operating Expense ONon Operating Expense Operating Non-Operating Fiscal Personal Maint 6 Depr& Total Interest Total Non- Year Services Utilities Other Ac t Operating Expense Other(1) Operating 1992-93 $ 28.924 $ 7.235 $ 21.677 $ 27,950 $ 85,786 $ 11,799 $ 1,250 $ 13,049 1993-94 28,886 4,589 21,599 33,988 89,062 16,964 2.414 19,378 1994.95 29,399 3,180 27,369 34,087 94,035 23,941 826 24,767 1995.96 32,660 2,978 26,114 34.001 95,753 20,731 7,648 28.379 1996-97 31,523 3,744 22.861 35,284 93,402 21.237 1.497 22,734 1997-98 28,725 3,328 22.526 35,841 90,420 19,232 1,330 20,562 1998-99 26,809 3.320 22,546 42.492 97,167 18,359 70 18.429 1999-00 33,581 3,621 22,213 36,383 95,798 18.151 23.073 41,224 2000-01 33,734 5,624 23,062 44,188 106,508 17,923 Be 18,011 2001-02 35,629 4,967 27,967 46,990 115,553 14,406 7,609 22,015 nx Notes (1) - For FY 1999-00, Other Non-Operating Expense includes $22,994,647 for the loss on investment in the Orange County Investment Pool. Source: Orange County Sanitation District's Accounting Division. 33 ORANGE COUNTY SANITATION DISTRICT Revenues and Gross Capital Contributions by Source (Dollars in Thousands) Last Ten Fiscal Years as - r $94 r $70,786 r $47,192 r $23,596 $0. r 1992-93 1993-94 1994-95 1995-96 1996-97 1997-96 1998-99 1999-00 20 1 2001-02 OOperaling Revenue ■NomOperaling Revenue OContro exi Capitai Capacity Operating Revenue Non-Operating Revenue Rights a Permit a Total Capital Fiscal Service Inspection Total Property Connection Non- Contrib- Year Charges Fees Operating Taxes Interest Fees Other Operating utions 1992-93 $ 71,568 $ 456 $ 72,024 $ 31,054 $ 27,569 $ 3,842 $ 3.437 $ 65,902 $ 8,605 1993-94 73,400 540 73,940 35.854 33.226 5.745 8,751 83,576 8.459 _ 1994-95 72,909 240 73,149 27,286 18.500 6,577 4,408 66,771 15,587 1995-96 71.362 120 71,482 29,265 20,209 9,493 4,224 63,211 2,266 1996.97 64.923 258 65,181 28,193 20,958 9,687 3,390 62.228 12,876 1997-98 59.517 329 59.646 31.287 27,897 11,251 3,283 73.718 - 1998-99 69,453 423 69,876 32,836 17,944 8,751 3,332 62,863 141 1999.00 81,241 396 81,637 35,557 20,836 7,867 2,573 66,833 4,589 2000-01 72,566 688 73,254 38.411 39,868 7,332 1,835 87,446 1,271 2001-02 79,609 396 80,005 41.140 28.073 10.560 2,202 81,975 8,603 sa Source:Orange County Sanitation District's Accounting Division. 34 ORANGE COUNTY SANITATION DISTRICT Property Tax and User Fee Levies and Collections (Dollars in Thousands) Last Ten Fiscal Years $120.000 $10%000 $80,000 s6o.000 u0,00o $20,000 _ S0 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001.02 Metal Tax and User Fee Levy ■Total Tax and User Fee Collecton Current Total Tax %of Total Tax Tax and Percent of Delin- and User %of Total O/S Delinquen- Fiscal and User User Fee Levy quent Fee Collection Delinquen- cies to Tax Year Fee Levy Collection Collected Collection Collection to Levy ties Levy 1992-93 $92,926 $ 86,511 93.10% $ 2,152 $ 88,663 95.41 % $ 5,465 5.88% 1993-94 92.728 88,335 95.26 5,722 94,057 101.43 3.255 3.51 1994-95 91,562 86.294 94.25 2,239 88,533 96.69 2.942 3.21 .. 1995-96 91,844 90,479 98.51 586 91,065 99.15 1,710 1.86 1996-97 89,794 82,123 91.46 246 82,369 91.73 2.191 2.44 _ 1997-98 90,953 78,861 86.71 12 78,873 86.72 3.039 3.34 1998-99 98,557 92,089 93.44 1,597 93,686 95.06 2,069 2.10 1999-00 107,948 105,129 97.39 1,626 106,755 98.89 1,709 1.58 2000-01 105,890 100,247 94.67 1.807 102,054 96.38 1,958 1.85 2001-02 112,419 108,684 96.68 1,667 110,351 98.16 1,917 1.71 Source:Orange County Auditor-Controller's Office. 35 ORANGE COUNTY SANITATION DISTRICT Assessed and Estimated Actual Value of Taxable Property r (Dollars in Millions) Last Ten Fiscal Years sa $1a0,000 $160,000 r $140,000 $120.000 r $100,000 $80,000 as $60.000 $40.000 r $20,000 $0 r 1992-93 1993-94 1994-95 199596 1996-97 1997-96 1998-99 1999.00 2000-01 2001.02 ■Secured Properly Assessed Value 0 unsecured Property Assessed Value as Secured Property Unsecured Property Totals Estimated Estlmated Estimated Ratio of Total Fiscal Assessed Actual Assessed Actual Assessed Actual Assessedto Year Value Value Value Value Value Value EslimatedValue 1992-93 $122,510 $122,510 $4,687 $4,687 $127,197 $127,197 100% 1993-94 124,016 124,016 3,963 3,963 127.979 127,979 100 1994-95 123,626 123,526 3,871 3,871 127.396 127,396 100 1995-96 122,624 122,524 3,372 3,372 125,896 125,896 100 as 1996-97 122,304 122,304 3,247 3,247 125.551 125,561 100 1997-98 125,018 125,018 3,302 3,302 128,320 128,320 100 1998-99 131,295 131,295 3.394 3,394 134,689 134,689 100 r 1999-00 142,126 142.126 3,507 3,507 145,633 145,633 100 2000-01 155,544 155,544 3,778 3,778 159,322 159,322 100 Na 2001-02 169,357 169,357 4,066 4,066 173,423 173,423 100 as Source:Orange County Auditor-Controller's Office. r 36 r r ORANGE COUNTY SANITATION DISTRICT Property Tax Rates-Direct and Overlapping Governments (per$100 of asessed value) Last Ten Fiscal Years r Basic OCSD#11.1958 Fiscal Year 1%Lew Bond 18R Fund Total �+ 1992-93 1.00000 0.00013 1.00013 1993-94 1.00000 0.00019 1.00019 1994-95 1.00000 0.00019 1.00019 r 199596 1.00000 0.00018 1.00018 1996-97 1.00000 0.00010 1.00010 r 1997-98 1.00000 0.00010 1.00010 1998-99 1.00000 0.00020 1.00020 1999-00 1.00000 0.00000 1.00000 2000-01 1.00000 0.00000 1.00000 2001-02 1.00000 0.00000 1.00000 r Source:County of Orange Auditor-Controllers Office. r r ORANGE COUNTY SANITATION DISTRICT Principal Users For the Year Ended June 30,2002 r %to Total Service Service Charge r User Charges Revenue Disneyland,Inc. $417,759 0.52% r Stremicks Heritage Foods,LLC 397,103 0.50% Ali Apparel 394,300 0.50% Van Law Food Products,Inc. 269.384 0.34% ee House Foods America Corp. 244,030 0.31% Kimberly-Clark Woddwide,Inc. 228,142 0.29% Knotts Berry Farm Foods 226,962 0.29% r MCP Foods, Inc. 221,760 0.28% Nor-Cal Beverage Co., Inc.(Main) 184,230 0.23% ,,. John A Thomas 173,590 0.22% $2,757 260 4 46% r Source: Orange County Sanitation Dlstrids Accounting Division. r 37 .r ORANGE COUNTY SANITATION DISTRICT Ratio of Annual Debt Service for r Bonded Debt to Total Expenses (Dollars in Thousands) Last Ten Fiscal Years r r 60.0% r 50.0% 40.0% r 30.0% 1 V 20.0% 10.0% r 0.0% 1992.93 1993.94 199F95 1995-M 199e-97 1997-9e 1998-99 1999-00 2000,01 2001-0 Ratio of Debt Principal Total Debt Total Operating Service to Total ., Fiscal Year (1) Interest Service Expenses(2) Operating Expenses 1992-93 $ 6,075 $11,799 $17,874 $57.836 30.90% 1993-94 11,990 16,964 28,954 55,074 52.57 1994-95 9,670 25,439 35,109 59,948 58.57 1995-96 10,180 21,298 31,478 61,752 50.97 _ 1996-97 10,680 20,463 31.143 58,118 53.59 1997-98 11,320 20.008 31,328 54,579 57.40 1998-99 12,120 18.475 30,595 54,675 55.96 1999-OD 12,880 17.169 30,049 59,415 50.57 2000-01 13,790 16,690 30,480 62,320 48.91 r 2001-02 10,370 13,051 23,421 68,563 34.16 Notes r (1)- Excludes principal reductions due to advanced refunding. (2)- Excludes depreciation and amortization expense. r Source:Orange County Sanitation District's Accounting Division. 38 ORANGE COUNTY SANITATION DISTRICT .. Bond Coverage (Dollars in Thousands) Last Ten Fiscal Years 4.50 - 4.00 d' 3.50 3.00 Y 2.50 2.00 r 1.60 •,'l 1.00 en 0.50 0.00 01992-93 01993.94 01994-95 01995.96 01996.97 01997-9a ■199e-99 01999-00 11112000.01 02001-D2 Direct Net Revenue ,. Fiscal Gross Operating Avail. For Debt Service Reoulrements Year Revenue h) Expenses(2) Debt Service Principal(3) Interest Total Coverage(4) 1992-93 $137,926 $57,836 $80,090 $ 6,075 $11,799 $17,874 4.48 1993.94 157,616 55.074 102,442 11,990 16,964 28,954 3.54 1994-95 129.920 59,948 69,972 9,670 25,439 36,109 1.99 1995-96 134,693 61,752 72,941 10,180 21,298 31,478 2.32 1996-97 127,409 68,118 69,291 10,680 20,463 31,143 2.22 1997-98 133,564 54,579 78.985 11,320 20,008 31,328 2.52 _ 1998-99 132,739 54,675 78,064 12,120 18,475 30,595 2.55 1999-00 148,470 59,415 89,055 12.880 17,169 30,049 2.96 2000-01 160,700 62,320 98,380 13,790 16,690 30,480 3.23 2001.02 161,980 68,563 93,417 10,370 13,051 23,421 3.99 Notes (1) - Includes non-operating revenues and excludes capital contributions. (2)- Excludes depreciation and amortization expense. (3)- Excludes principal reductions due to advanced refunding. .. (4) - Coverage requirements per the certificate of participation indenture agreements range from 1.0 to 1.25. It Is the District's policy to be in compliance with all bond covenants, and the District has the ability to raise user fees by a vote of the Board of Directors. Source:Orange County Sanitation District's Accounting Division. 39 ORANGE COUNTY SANITATION DISTRICT L Computation of Direct and Overlapping Debt June 30,2002 2001-02 Assessed Valuation(Land&Improvements Only): $156.587,511,373(after deducting$16.836,068,748 redevelopment L Incremental valuation) %Applicable Debt 6/difl= Overlapping Tex and Assessment Debt (Based on redevelopment adjusted all properly assessed valuation of$163,709,116,695): U Orange County Teeter Plan Obligations 73.069% $ 91.500.655 Melmpollian Water District of Southern California 15.457 77,760.303 North Orange County Joint Community College District 98.843 134,611.770 Brea-Ounda Unified School OLslrid 97.722 16.841,837 1 Irvine and Laguna Beach Unified School Districts 99.960&3.253 975.319 u Newport Mesa Unified School Mead 99.998 39,999,200 Placentia-Yorba Linda Unified School District 98.484 44,315.633 Santa Ana Unified Scholl District 100.000 56,320.000 I � Anaheim Union High School District 100.000 91,999,603 L� School Districts 100.000 56,063,316 Cities Various 8.307.971 Irvine Ranch Water DisWct Improvement Districts Various 250,573,765 t Yonne Unda County Water District,I.D.Nos. 1 and 2 93,257&-100.000 5,951609 LW Special Dishlcts 100.000 BW:OD0 Bonita Canyon Community Facilities District No.9&1 100.000 44,775,000 Irvine Unified School District Community Facilities District No.86-1 99,997 105,681,829 Tustin Unified School District Community Facilities District No.88-1 and 97-1 100.000 133,155,000 Orange County Community Facilities District No.874 99 971 75,814,394 V Other Community Facilities Districts Various 226,470,099 Orange County Assessment Districts 100o00 119.956,088 City of Irvine,1915 Ad Bonds 100.000 720,601,022 1 City of Tustin 1915 Act Bonds 100o00 69,331,000 1y1. Other City 1915 Ad Bonds Various 29.394.730 Total Overlapping Tax and Assessment Debt $2,403.260.143 Direct and Overlapping Other Debt 1 Orange County General Fund Obligations 73.069% $ 742,199.933 Orange County Pension Obligation 73.069 98,360,002 Orange County Transit District Authority 73.069 5,776,104 Coast Community College District Certificates of Participation 99.523 16,236,971 South Orange County Community College District Certificates of Participation 33.982 15,076,114 Brea-Olinds Unified School District Certificates of Participation 97,722 32,795.503 Santa Ana Unified School District Certificates of Participation 97.758 43,211,598 Omer Unified School District Certificates of Participation Various 2B,D88,777 Anaheim and Fullerton Union High School District Certificates of Participation Various 33.086.531 ! School District Certificates of Participation Various 28,190,812 V City of Anaheim General Fund Obligations 99.097 696,497,868 City of Fullerton General Fund Obligations 100.000 40.048,934 Ciy of Huntington Beach General Fund Obligations 99.982 88,033,549 ! City of Irvine General Fund Obligations 100.000 58.765,000 City of Santa Ana General Fund Obligations 100.000 143,672,903 Other City General Fund Obligations Various 159,042,943 Orange County Sanitation District Certificates of Participation(1) 100.000 162,220,0DO Irvine Ranch Water Distract Certificates of Participation STAN 46.289.572 Municipal Water District of Orange County Water Facilities Corporation 70.379 37,790.004 Orange County Water District Certificates of PaNdpation 99248 212.50.216 Orange County Fire Authority 46.466 13,038,360 Other Special District Certificates of Participation 100.000 210.000 Total Gross Direct and Overlapping Other Debt $2.700,330,692 Less: Orange County Transit District Authority(80%self-supporting) 4,620,884 YY�L Orange County Water District Certificates of Participation(100%self-suppomng) 212.589,216 City of Anaheim self-suPporting obligations 655.189.644 Other City self-supporting obligations 990,870 MWOOC Water Facilities Corporation(100%self-supporting) 37,790,004 y Total Not Direct and Overlapping Other Debt $1.789,141,074 Gross Combined Total Debt(2) $5.103.590,835 Net Combined Total Debt $4.192.401.217 (1) Excludes camficates of participation supported by wastewater revenues. is, (2) Excludes lax and revenue anticipation notes.revenue,mortgage revenue and tax allocation bonds and non-horded capital lease obligations. Ratios to: Land&Improvement Assessed Valuation All Property,Assessed Valuation Tohl Overlapping Tax and Assessment Debt 1.39% WA I 1 Combined Direct Debt ($162,220,000) 0.10% 0.10% L Gross Combined Total Debt 3.26% 3.12% Net Combined Total Debt 2.68% 2.56% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6130102: $24.796.482 Source: California Municipal Statistics. 40 I i 61 ORANGE COUNTY SANITATION DISTRICT r Demograhic Statistics Covering The Entire County of Orange(1) Last Ten Fiscal Years (2) (3) (4) r Population Median (3) Public School (s) Fiscal Estimates Family Median Enrollment Unemployment Year (In Thousands) Income Age (in Thousands) Rate r 1992-93 2,557 $54,380 30.4 400 6.8% 1993.94 2,597 54,413 32.6 402 5.7% r 1994-95 2,641 55,507 32.9 412 5.1% 1995-96 2,624 57,106 31.9 422 4.1% 1996-97 2.632 59,629 32.2 443 3.2% .. 1997-98 2,615 60,000 30.4 458 2.9% 1998-99 2,776 61,812 31.8 471 2.6% 1999410 2,828 66,000 (6) 32.6 483 2.9% r 2000-01 2,880 71,200 17) 342 494 3.0% 200"2 2,940 not available not available 503 4.1% r r Notes and Data Sources (1) -The Orange County Sanitation District services 471 square miles or 59% of the total 799 square miles that make up the boundaries of the County of Orange. (2) -Data Source-Demographic Research Unit, California Department of Finance. (3) -Data Source-Center for Demographic Research,California State University, Fullerton. r (4)-Data Source-California Department of Education, Educational Demographics Unit. r (5) - Data Source - State of California, Employment Development Department as of June 30 of each fiscal year. (6) -Estimated number. (7)-Forecasted number. 41 W ORANGE COUNTY SANITATION DISTRICT Property Value and Construction W Covering The Entire County of Orange(t) (Dollars In Thousands) Last Ten Fiscal Years W Non- W Assessed Residential Residential Property Value(2) Constr. (3) Construction (3) Total Fiscal Calendar No.of Construction W Year Value Year Value Units Value Value(3) 1992-93 $178,534,134 1993 $ 496,724 6.410 $1,083.716 $1,580,440 W 1993-94 178.761,413 1994 560,558 12,644 1,745,301 2,305.859 1994-95 176,974,944 1995 582,712 8,300 1,295,297 1,878,009 1995-96 172,508,373 1996 760,809 10,207 1,528,835 2,289,644 W 1996-97 177,300,663 1997 1,079,687 12,251 2,007,084 3,086,771 1997.98 182,284,316 1998 1,529,698 10,101 1,864,084 3,393.782 1998-99 192,625.739 1999 1,614,422 12,348 2,262,492 3,876,914 W 1999-00 209,136,472 2000 1,762,142 12,367 2,210,775 3,972,917 2000-01 228,548,301 2001 1,349,607 8,647 1,905,321 3,254,928 2001-02 248,966,581 2002 (4) 1,205,783 9,687 2.073,618 3.279,401 W Notes and Data Sources (1) - The Orange County Sanitation District services 471 square miles or 59% of the total 799 square miles that make up the boundaries of the County of Orange. W (2)-Data Source-Orange County Auditor-Controller's Office. (3)-Data Source-"The Chapman University Economic 8 Business Reivew." W (4)-Forecasted numbers. W W W W W 42 W ORANGE COUNTY SANITATION DISTRICT Estimated Populations Served by the Orange County Sanitation District June 30,2002 Population as of January 1,2002 Anaheim 334,700 Brea 36,850 Buena Park 79,800 Costa Mesa 110,700 Cypress 47,250 r Fountain Valley 55,900 Fullerton 129.300 Garden Grove 168,600 Huntington Beach 194,600 Irvine 157,500 La Habra 60,700 La Palma 15,850 Los Alamitos 11.700 Newport Beach 72,500 r Orange 132,900 Placentia 48,300 Santa Ana 343,700 r Seal Beach 24,700 Stanton 38,100 Tustin 69,100 r Villa Park 6,175 Westminister 89,700 Yorba Linda 60.800 Subtotal City(1) 2,289,425 Estimated Population Served in Unincorporated Areas(2) 46,975 �,. 2,336,400 r r Data Sources: (1)Demographic Research Unit,California Department of Finance. r (2)Orange County Sanitation District Accounting Division. 43 W ORANGE COUNTY SANITATION DISTRICT Insurance in Force W As of June 30, 2002 W Type Insurer Deductible Limit All-Risk Property W Fire and Flood Multiple Carriers $25,000 per occurrence $300 million/occurrence $200,000 annual aggregate W Earthquake Not Applicable Not Applicable Self-insured W Boiler& Machinery CNA Insurance Co. $25,000 to $100 million/occumence $100,000 u Employee Dishonesty/ Hartford Fire, National Union $2.500 $1 millioMoss; Faithful Performance/ Fire, and Great American $4 million excess policy y Errors & Ommissions Insurance Companies Excess Great Lakes U.K. Insurance $100,000 $25 million/occurrence General Liability Company(first$10 million and annual aggregate layer); Kemper Surplus Insurance Company($15 million layer excess$10 million) W Travel &Accident Nationwide Life Insurance -0- $100,000/person; $500,000 aggregate per accident u Excess Workers' Compensation Employers Reinsurance $500,000 $25 million each accident, W Corporation Each Accident each employee W W W W Source: Orange County Sanitation District's Risk Management Office. W 44 W ORANGE COUNTY SANITATION DISTRICT Comparison of The Volume of Wastewater Treated r With Revenues and Expenses Last Ten Fiscal Years a+ Millions of Gallons of Waste- Treatment r water &Disposal Total Total Total Total Treated Cost per Operating Non-Operating Operating Non-Operating Fiscal Per Million Costs Costs Revenues Revenues Year Day Gallons (In Thousands) (In mousands) (In Thousands) (In Thousands) r 1992-93 232 $ 548.04 $85,786 $13,049 $72,024 $65,902 1993-94 231 508.03 89.062 19.378 73,940 83.576 r 1994-95 243 526.98 94,035 24,767 73.149 56.771 1995-96 237 553.25 95,753 28.379 71,482 63,211 1996-97 244 526.29 93,402 22,734 65,181 62.228 1997-98 254 465.75 90,420 20.562 59,846 73,718 1998-99 241 481.96 97.167 18.429 69,876 62.863 _ 1999410 241 500.75 95.798 41.224 81.637 66,833 2000-01 246 512.78 106.508 18.011 73,254 87,446 2001-02 234 563.09 115,553 22A15 80,005 81,975 r A 30-year master plan was completed in 1989 which projected wastewater treatment flows to increase from 275 r millions of gallons per day(mgd)in 1990 to 300 mild in 1995 and out to 400 mgd in the year 2020. In order to manage the anticipated increase in wastewater flows,the Districts initiated a$1.5 billion 30 year capital expansion plan. The new debt Increased interest expenses and the new facilities have increased depreciation expense. r Total expenses in 2001-02 increased$38.7 million,or 39.2 percent since 1992-93,primarily as a result of the expected increase in wastewater flows. Of this increase,depreciation expense represents 49.2 percent and debt service interest represents another 6.7 percent as a result of the capital facilities expansion and the financing associated with the expansion. As depicted from the chart above,actual wastewater treatment flows have steadily increased from 232 mgd in r 1992-93 to a high of 254 mgd in 1997-98,and after falling two consecutive years to 241 mgd,rose up to 246 mgd in 2000-01. In 2001-02,flows again retreated back to 234 mgd due to dry weather conditions. The master plan was revisited In 1999 and has become a strategic plan. It projects a$1.9 billion capital r expansion plan through the year 2020. Daily wastewater flow is expected to increase to 352 million gallons per day by 2020 after an emphasis on water conservation and the reduction of inflow and infltra8on. r r Source:Orange County Sanitation District. r 45 r ORANGE COUNTY SANITATION DISTRICT Biosolids Produced _ Last Ten Fiscal Years 45.000 _ 40.000 35,000 30.000 25.000 20.000 01992 93 1111993 94 111 1994-95 01995 96 01996-97 01997-98 ■1998-W 01999-00 1112000-01 1112001-02 Fiscal Year Tonnage 1992-93 41.964 1993-94 39,650 1994.95 40.228 1995-96 38,802 1996.97 39,387 1997-98 42,645 1998.99 41,023 1999.00 42,824 2000-01 42,014 2001.02 43.138 Source:Orange County Sanitation District's Environmental Compliance and Monitoring Division. 46 ORANGE COUNTY SANITATION DISTRICT Miscellaneous Statistics June 30,2002 District Organization: The Orange County Sanitation District is one consolidated district made up of three revenue areas which service unincorporated county areas and twenty-three cities and related special districts, as follows: Consolidated Revenue Area Revenue Area No.7 County of Orange(unincorporated areas) County of Orange (unincorporated areas) Cities: Cities: Anaheim Irvine Brea Orange Buena Park Santa Ana Costa Mesa Tustin Cypress Special District: Fountain Valley Costa Mesa Sanitary District Fullerton Garden Grove Huntington Beach La Habra La Palma Los Alamitos Revenue Area No. 14 Newport Beach County of Orange(unincorporated areas) Orange Cities: Placentia Irvine r Santa Ana Orange Seal Beach Tustin Stanton Special District: Tustin Irvine Ranch Water District Villa Park Westminster Yorba Linda .. Special Districts: Midway City Sanitary District Costa Mesa Sanitary District Governing Body: 25-member Board of Directors r Authorized Full-Time Equivalent Employees: 528 Operational Date: July 1, 1854 Authority: California Health&Safety Code Section 4700 at.seq. r Services: Wastewater collection,treatment,and disposal Service Area: 471 square miles Population Served: 2.3 million Total Miles of Trunk and Subtrunk Sewers: 650 miles Number of Pumping Stations: 21 Average Daily Flow(million of gallons per day): Plant 1 83 Plant 2 151 Total aA Source: Orange County Sanitation District's Accounting Division. 47 r �1 u (THIS PAGE INTENTIONALLY LEFT BLANK) I� WI IWI IWI +WI L L u 48 ORANGE COUNTY SANITATION DISTRICT, CALIFORNIA (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 06/30/02 First Quarter Ended September 30, 2002 Eli ir 1 i fs� ' '" a�®e < ; .. I-�/1 1� -- f _ E _ T 1 Orange County Sanitation District, California Table of Contents Section1 -Overview...................................................................................................................1 Section 2-Joint Operating Budget Review Chart of the Cost per Million Gallons by Department—Budget and Actual............................1 Chart of the Net Expenses by Major Category—Budget and Actual.....................................1 Divisional Contributions to Gallonage Charge.......................................................................2 Comparison of Expenses by Department..............................................................................3 .a Summary of Expenses by Major Category............................................................................4 Summary of Joint Operating Revenues by Line Item............................................................5 Summaryof Expenses by Line Item......................................................................................6 Summary of Expenses by Treatment Process......................................................................8 Chartof Staffing Trends........................................................................................................9 Section 3-Capital Improvement Program Review Capital Improvement Program Graphs by Type and Funding Source...................................1 Summary of Capital Improvement Construction Requirements - Current Year.....................2 Summary of Capital Improvement Construction Requirements - Project Life........................6 Section 4- Budget Review by Revenue Area Summary Budget Reviews -All Revenue Areas....................................................................1 Consolidated Revenue Area Budget Review.........................................................................2 Revenue Area No. 7 Budget Review ....................................................................................3 RevenueArea No. 14 Budget Review...................................................................................4 'r Section 5—Self Insurance Budget Review General Liability Fund Budget Review...................................................................................1 y Workers' Compensation Fund Budget Review......................................................................2 V 2002-03 First Quarter Report V W V Wi 1-I 1-I This Page Intentionally Left Blank V V v v V W r Overview " First Quarter Financial Report September 30, 2002 r The Finance Department is pleased to present the 2002-03 first quarter comprehensive financial report. This report provides the Directors, staff, and the general public with a r comprehensive overview of the financial condition of the District and reports on the status of all capital projects in progress. A summary of the sections contained within this report is provided below. r Joint Operating Budget Review: At September 30, 2002, 22.31 percent, or$14.59 million of the 2002-03 net joint operating budget of$65.42 million has been expended. r Net operating expenses increased by $3.17 million from the same period last year, primarily due to 1) increased salaries, wages, and employee benefits as a result of sixteen additional full-time equivalent employees, 2) increased costs of chemicals as a r result of disinfecting the effluent, and 3) decreased amount of salaries and wages being charged to capital projects and to the collection system. •+ The total cost per million gallons at September 30, 2002 is $661.25 based on flows of 22.07 billion gallons, or 239.91 million gallons per day. This is $55.70, or 7.77 percent below the budgeted cost per million gallons of$716.95. This lower cost per million gallons is due to net expenses being 10.76 percent or $1.76 million lower than the proportionate budget through September 30, 2002. This is slightly offset by flows being r 4.04 percent lower than the budgeted amount of 250 million gallons per day. Some of the significant joint operating results as of September 30, 2002 include: r • Salaries. Waaes and Benefits—Joint operating personnel costs were at 23.15 percent of budget through September 30 while staffing was 48 full-time equivalents (FTE's), or 8.47 percent below the total 567 FTE's approved in the 2002-03 budget. Net joint operating personnel costs are expected to be at or below budget at year- end. There are currently 41 positions being recruited. • Memberships— Membership expense totaled $125100, or 62.76 percent of the $199,300 budget as of September 30 because many of the District's memberships are paid in the first quarter of each year. These costs are expected to approximate r budget at year-end. r Training —Training expense totaled $43,900, or 5.52 percent of the $796,500 budget as of September 30 because many of the District's training programs are anticipated to occur in the latter part of the fiscal year. r Operating Expenses— Overall operating expenses totaled $2,382,300, or 17.65 percent of the composite $13,496,100 budget. These expenses are proportionately low through September mainly as a result of the disinfection of effluent (which comprises 52.84 percent of the composite operating expense budget) not starting until mid-August. r Section 1 - Page 1 r 2002-03 First Quarter Report r • Professional Services— Overall professional services totaled $392,100, or 16.84 percent of the composite $2,328,000 budget. Audit & Accounting and Software Program Consulting are both higher than the proportionate budget through r September 30 due to the timing of when the services are provided. Other professional services are in the planning or request for proposal stages. It is anticipated that the overall costs for this category will increase in the second and •- third quarters of the fiscal year. • Other Materials. Supplies. & Services—The composite cost for other operating r supplies and services totaled $391,800 or 10.97 percent of the $3,571,000 budget. These costs are proportionately low through September 30 due to the lower than anticipated increased cost of insurance premiums. It is expected that this overall r category will remain under budget throughout the the fiscal year. • Net Cost Allocation —Cost allocation totaled $4.2 million, or 19.33 percent of the r $22.0 million budget. The allocation of costs to capital projects is expected to increase throughout the rest of the year as the District focuses on the design of secondary treatment facilities. Comparison of First Quarter Cost per Million Gallon Results With Year-End Actuals (Budget) r Last Five Years r near ns r asus esB r sesw us wx r 5+2Th 5n Sw)5 bt•a i111 sap ua mm a25 I&M B4ffi am 21-02 U-93 1I Y. 1Y Yr 1.1 Y., Isl Yenr aN Annwl Oa ntl M a p eM W end M B= r As demonstrated in the preceding graph, the cost per million gallons at the end of the first quarter has been somewhat lower than at year-end for three of the last four years. The cost comparison for the first quarter of 2002-03 is consistent with this trend when compared with this year's budget. Section 1 - Page 2 Overview Section 2 - Page 1 provides a graphical comparison of each Department's actual contribution towards the gallonage charge through the first quarter of 2002-03 and as budgeted for 2002-03. Page 1 also provides a budget to actual graphical comparison of revenues and expenses by major category. More detailed information is provided at the following locations: Section 2 - Page 2 provides for the divisional contributions to the gallonage charge through the first quarter for the current and two prior years; Section 2 — Page 3 provides a comparison of expenses by department for September 30, 2000, 2001, and 2002; Section 2— Page 4 provides a summary of expenses by major category through September 30, 2002 and 2001; Section 2 — Page 5 provides a summary of joint operating revenues by line item through September 30, 2002 and 2001; Section 2 — pages 6 and 7 provide a summary of expenses by line item through September 30, 2002 and 2001; Section 2— Page 8 provides a summary of expenses by treatment process through September 30, 2002 and 2001; Section 2 — Page 9 provides staffing trends over the last five years including total positions authorized, actual positions filled, and vacant positions. Capital Outlay Review. $160.000.000 $140.000.000 — $120,000.000 $100.000,000 $80,OOD,000 $60.000,ODD _ $40.000.000 $20,000.000 SD _ 091=02 Actual Projecbd 2002A 2002-03 Capital Outlay capital Outlay Capital Outlay Caahflm Budget $15,990,200 $165.887,300 $154,420,300 As depicted by the preceding chart, total Capital Outlay expenditures totaled $15,990,200 or 10.26 percent of the projected capital outlay for 2002-03 as of September 30, 2002. Costs are proportionately low through the first quarter as many projects are still in the design phase or have experienced various delays, but they are expected to approximate budget by year-end. Section 3 - Page 1 provides a graphical presentation on the dollar amount of capital expenditures incurred for each process category and a graphical presentation on the dollar amount of capital expenditures incurred for each major capital improvement funding source. Section 1 - Page 3 i L. 2002-03 First Quarter Report For more detailed information, Section 3—Pages 2 through 5 provide a summary of the construction requirements of each project for the current year and Section 3—Pages 6 through 9 provide a summary of the construction requirements of each project over the I project life. L� Budget Review by Revenue Areas: At September 30, 2002, revenues from all Revenue Areas totaled $20.81 million, or 4.50 percent of budget. Tax allocations and subvention revenue, budgeted at $39.48 million, is at 6.27 percent of budget, or$2.47 million, and Other User Fees, budgeted at $86.33 million, is at 3.59 percent of budget, L or$3.10 million. Both of these revenue sources are proportionately low through the first quarter because most of the property tax apportionment and user fee receipts that are collected by the County through the property tax roll are not distributed to the L District until after the first quarter of each year. The capital assessment charge to IRWD is proportionately low at $0.41 million, or 10.82 percent of budget, as a result of the capital outlay costs being proportionately low as explained in the Capital Outlay Section. No sale of capacity rights, budgeted at $8.11 million, have been received. In addition, no debt has been issued as of September 30; therefore, no proceeds, budgeted at $280 million, have been received. V Conversely, connection fees, budgeted at $5.82 million, are at 37.61 percent of budget, or$2.19 million due to higher than expected building activity within the member cities. U Interest revenue, budgeted at$39.10 million, is at$12.64 million, or 32.34 percent of budget. This is due to both larger available cash balances and higher interest rate yields than were anticipated in the 2002-03 budget. L Expenses and outlays of all Revenue Areas totaled $48.01 million, or 17.53 percent of budget through the first quarter. The costs incurred related to capital improvement L projects are proportionately low at $15.99 million or 10.36 percent of budget, as previously explained in the Capital Outlay Section. COP retirement and interest j expense, budgeted at $39.00 million, are proportionately high at 35.97 percent of V budget, or$14.02 million, because the annual principal payments are due during the first quarter of the fiscal year. All other expenses are near the proportionate budget I through the first quarter. it Self-insurance Budget Reviews: The District is self-insured for portions of workers' L compensation, property damage, and general liability. Separate fund accounting is utilized for the recording of revenue and expenses incurred in managing these liability claims. The revenues to these funds represent individual Revenue Area contributions based on flows. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. The Self-Insurance Fund revenues totaled $618.400 or 20.65 percent of the L $2,995,000 budget at September 30, while total expenses were $627,400 or 21.72 percent of the $2,888,500 budget. L Section 1 - Page 4 j Y.I r Joint Operating Budget Review r Cost per Million Gallons by Department Budget and Actual September 30, 2002 r w� Ssso r egg s4so 8400 i! s$sa $mo l ttm f $150 r $100 $50 $0 Fv✓Wive Fnance Human Txhnlcal Engineenng Op moons$ IWormalion r Management Resources Services Mainlenance Technology ■Butlget■Actual Net Expenses by Major Category Budget and Actual (in thousands) September 30, 2002 350.0g0 $45,000 $40.003 835,0g0 330,I1fx1 $25,000 $20 0 $15000 $10000 $5"- Mill $4 Salae. Pnnlinoo Exwnino Pmlesslonal int,ng¢ Q.O.I @gygnu� — ,8.wlt P_Yh11gn1g0 ESpY➢'.45 Services Nk'n a M..I,ale. Batlef s iill@@II¢5.$ 5[g£ ■Butlga■AGual Section 2- Page 1 2002-03 First Quarter Report L Divisional Contributions to Gallonage Charge L For the Three Months Ended September 30, 2002-03 09/30/00 09/30/01 Annual 09/30/02 L Actual Actual Budget Actual Flow In Million Gallons 23,168.00 21.830.95 91.250.00 22,071.26 Flow in Million Gallons per Day 251.83 237.29 250.00 239,91 V General Manager's Department General Management Administration $ 15.77 $ 15.39 $ 17.43 $ 17.08 Administrative Services 9.19 9.68 9.04 Communications 8.24 5.70 6.74 6,56 Subtotal 24.01 30.28 33.85 32.68 Finance Department Finance Administration 16.37 16.13 3228 12.98 Lei Accounting 13.58 18.12 Wei17.20 Purchasing 8 Warehouse 10.78 13.34 14.57 14.17 Subtotal 4U-737 47.59 63.79 44.35 1 Human Resources Department V Human Resources Administration 12.75 12.90 6.82 SA9 Employee Development/Training - - 8.04 222 Safety and Health 11.44 5.97 11.49 7.67 Human Resources 7AII 5.32 a'r Subtotal 24.19 18.96 76 20.70 Technical Services Department Technical Services Administration 4.83 11.61 7.57 11.30 y Environmental Compliance 8 Monitoring 39.83 44.19 38.61 32.12 Environmental Sciences Laboratory 38.41 42.07 44.68 48.60 Source Control 28.81 3721 35.93 3420 I Subtotal 111.68 134.98 128.79 124.22 Ld Engineering Department Engineering Administration 3.56 527 6.81 6.10 Planning 11.97 14.97 12.58 9.78 taxProject Management Office 16.53 20.67 17.77 12AI Engineenrg and Construction 32.84 35.14 49.74 50.88 Subtotal 64.90 76.05 86.88 79.17 Operations 8 Maintenance Department V Operations 8 Maintenance Administration 6.11 3.10 6.00 4.98 O 8 M Process Engineering 9.64 10.29 16.38 15.14 Plant No. 1 Operations 72.64 94.25 107.33 102.94 Plant No.2 Operations 106.11 128.68 10022 163.19 V Mechanical Maintenance 8 Power Production 91.78 104.92 108.07 102.83 Instrumentation 8 Electrical Maintenance 57.52 60.56 68.89 66.12 Air Quality 8 Special Projects 12.37 14.32 17.02 15.98 Collection Facilities Maintenance 14.36 16.60 21.62 17.93 V Plant Facilities Maintenance 38.46 50.77 52.49 52.67 Subtotal 408.99 483,49 588.02 531.78 I Information Technology Department L Information Technology Administraton 7.98 6.55 631 722 Customer 8 Network Support 14.62 16.62 29.69 19.54 Programing 8 Database 10.22 11.90 14.68 11.97 Process Clrl Integration 10.06 11.11 14.35 14.25 Le Subtotal 42.88 46.18 65.03 52.98 Total Joint Operating Expenses 717.38 837.53 996.12 $85.68 Less: Cost Allocation (182.46) (277.64) 240,81 (192.48) y Net Joint Operating Requirements 534.92 559.99 755.31 893.40 Lass: Revenues (61.16) (36.46) (38.36) (32.15) Net Joint Operating Expenses $ 473.76 $ 523.53 $ 716.95 $ 661.25 L Section 2- Page 2 Joint Operating Budget Review Comparison of Expenses by Department For the Three Months Ended September 30, 2002-03 09/30/00 09/30/01 Year to Date Budget% Department and Division Actual Actual Budget OW30102 Realized General Manager's Department d General Management Administration It 365,338 $ 335,977 $ 1,590,600 $ 377,003 23.7D% Administrative Services - 200,714 883,200 199,593 22.60% Communications 190.892 124,333 614.600 144,730 23.55% Subtotal 556,230 661,024 3,088,400 721.326 23.36% G Finance Department Finance Administration 379.309 352,116 2,945,800 286.513 9.73% Accounting 314.616 395.641 1,545,600 379,065 24.56% ,d Purchasing&Warehouse 249.670 291,326 1,329,400 312,802 23.53% Subtotal 943,595 7,039,085 5,a20, 000 978,980 16.82% Human Resources Department Human Resources Administration 295.428 283.483 622,500 121.163 19.46% Employee Development/7mining - - 733,400 48.937 6.67% 48 130 Safety and Health 264.9 ,356 1,048.900 169,367 16.15% Human Resources 676,300 117,420 17.36% d Subtotal 560,376 413,839 3.081,100 456.887 14.83% Technical Services Department Technical Services Administration 111.928 251,321 691,1D0 249,442 35.09% Environmental Compliance&Monitoring 918,036 964,674 3.523.400 708,835 20.12% Environmental Sciences Laboratory 889.846 918,452 4,077,200 1,028,453 25.22% Source Control 667,385 812,258 3,278.900 754,849 23.02% Subtotal 2,587,195 2.946.705 11,570,600 2,741,579 23.69% s Engineering Department Engineering Administration 82.530 115,002 621,100 134.676 21.68% Planning 277.285 326.721 1,146,300 215.932 18.84% Project Management Office 382,918 451,188 1,621,700 273.840 16.89% Engineering and Construction 760,825 767,082 4,638.500 1,123,035 24.74% Subtotal 1,503.558 1.659,993 7,927,600 1.747,482 22.04% Operations&Maintenance Department w Operations&Maintenance Administration 141,587 67,647 547,6D0 109,987 20.08% O&M Process Engineering 223.334 224.665 1,494,600 334,163 22.36% Plant No.1 Operations 1.682,931 2.057,683 9.793.600 2,272,023 23.20% Plant No.2 Operations 2,458,271 2,808,953 17,357,100 3,380,836 19.48% Mechanical Maintenance&Power Production 2,126,253 2,290,425 9,679.100 2.269,875 23.46% Instrumentation&Electrical Maintenance 1,332.731 1,322.060 6.286.000 1.459,365 23.22% Air Quality&Special Projects 286.695 312.553 1,553,200 352.722 22.71% W Collection Facilities Maintenance 332.786 362,448 1,973,200 395,814 20.06% Plant Facilities Maintenance 891,020 1,108,341 4,789.700 1,162,544 24.27% Subtotal 9,475,608 10,554,775 53,474,300 11,737.129 21.95% Information Technology Department Information Technology Administration 184,818 142,937 575,600 159.256 27.67% Customer&Network Support 338,768 362,897 2,708,900 431.377 15.92% Programing&Database 236.718 259,885 1,339.800 264,139 19.71% Process CUI Integration 232,993 242,532 1.309.200 314.621 24.03% W Subtotal 993,297 1.008251 5,933,500 1,189,393 19.71% Total Joint Operating Expenses 16,619,859 18,283.672 9D,896,3D0 19.552,776 21.51% Less: Cost Allocation (4,226,770) (6,068.643) (21.974.900) (4,248.469) 19.33% G Net Joint Operating Requirements 12.393.089 12226,029 68,921,4D0 15,304,307 2221% Less: Revenues (1,417,030) (795.958) (3.500,000) (709,582) 20.27% Net Joint Operating Expenses $ 10.976,059 $ 11,429,071 $ 65.421.400 $ 14.594,725 22.31% Section 2-Page 3 a r 2002-03 First Quarter Report Summary of Expenses by Major Category r For the Three Months Ended September 30,2002 L Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2002-03 09/30/02 09/30/01 $ % Realized Budget Salary,Wages B Benefits $48.737,300 $11.281,844 $10.583,618 $ 698,226 6.60% 23.15% $37.455.456 r Administrative Expenses 850,800 216,555 208,952 7.603 3.64% 25.45% 634,245 y Printing B Publication 440.800 82,464 80.129 2,335 2.91% 18.71% 358,336 Training B Meetings 1,067,100 87.780 115,461 (27,681) -23.97% 8.23% 979,320 r Operating Expenses 13.496,100 2,382.281 1,591,421 790,860 49.70% 17.65% 11,113,819 Contractual Services 8,846,400 2.044.899 2.116,495 (71,596) -3.38% 23.12% 6,801,501 Professional Services 2.328,000 392.145 420.704 (28.559) -6.79% 16.84% 1.935,855 Research 8 Monitoring 1,466,900 391,912 536.518 (144,606) -26.95% 26.72% 1,074.988 r Repairs B Maintenance 5,927,700 1,265,109 1,021.994 243,115 23.79% 21.34% 4,662,591 Utilities 4.164,200 1.015,947 1,179.056 (163,109) -13,83% 24.40% 3,148,253 v Other Materials,Supplies, and Services 3,571.000 391,840 429.324 (37,484) -8.73% 10.97% 3.179,160 it Net Cost Allocation (21.974,900) (4,248,469) (6,058,643) 1,810.174 -29.88% 19.33% (17,726.431) Net J.O.Requirements 68,921,400 15,304,307 12,225,029 3,079.278 25.19% 22.21% 53,617,093 r Revenues (3,500.000) (709,582) (795,958) 86,376 -10.85% 20.27% (2,790,418) Net J.O. Expenses $65,421,400 $14.594.725 $11,429,071 $3,165,654 27.70% 22.31% $50,826.675 Gallonage Flow(MG) 91,250.00 22,071.26 21.830.95 240.31 1.10% r Gallonage Flow(MGD) 250.00 239.91 237.29 2.62 1.10% Gallonage Flow($'a/MG) $716.95 $661.25 $523.53 $137.72 26.31% r r r r r Section 2-Page 4 r r Joint Operating Budget Review r Summary of Joint Operating Revenues by Line Item For the Three Months Ended September 30, 2002 e. Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) r Description 2002-03 09/30/02 09/30/02 Budget 09/30/01 $ % Inter District Sewer Use $ 1.300,000 $270.630 20.82% $ 1,029.370 $314.447 $ (43,817) -13.93% Wastehauler 450,000 137,102 30A7% 312,898 111,519 25,583 22.94% Sludge Disposal 800,0D0 204,0D0 25.50% 596.000 168,g00 35.100 20.78% CNG Sales 200.000 66.684 33.34% 133,316 79.646 (12.962) .16.27% Other Sales - 3.972 WA (3,972) 19 3,953 20805.26% r Rents 8 Lasses 25,000 4,790 19.16% 20,210 4,971 (181) -3.64% General Non-Operating 125,0W (10.488) -8.39% 135,488 59.449 (89.937) -117.64% Power Sales 600,000 32,892 5.48% 567,108 57,007 (24,115) -42.30% Total $3,500.000 $709.582 20.27% $2,790,418 $ 795,958 $ (86,376) -10.85% r r r r Section 2 -Page 5 r 2002-03 First Quarter Report Summary of Expenses by Line Item V For the Three Months Ended September 30,2002 Expense %Expense Expense Increase Increase W Budget Through Through Remaining Through (Decrease) (Decrease) Description 2002-03 09/30/02 09/30/02 Budget 09/30101 $ % Salaries.Wanes 8 Benefits Salaries S,Wages $ 39.385,100 $ 9.218,174 23.41% $ 30.165.926 $ 9.094.480 $ 123.694 1.36% r Employee Bonefrls: Retirement 3.930,200 797,262 20.29% 3,132,938 410.079 387,183 94.42% `a Group lnsumncas 4,815,100 1,104,211 22.93% 3.710,989 959.356 144,825 15.10% Tuition Reimbursement 152,300 18.432 12.10% 133.868 20.914 (2.482) .11.87% Uniform Rental 86,300 18.767 21.75% 67.533 19,361 (594) -3.07% Workers'Compensation 343,000 124,988 36A4% 218,002 79,398 45,600 57.43% ,r Unemployment Insurance 25.300 0.00% 25,300 WA Total Benefits 9,352.200 2.063,570 22.07% 7,288,530 1.489,135 574.532 A58% Salaries,Wages 8 Benefits 48,737,300 11.281.844 23.15% 37.465,456 10.583.618 898,228 8.60% Mail.supply,8 Services AdminisiretNo Expenses Memberships 199,300 125,078 62.76% 74.222 89.720 35,358 39.41% W OMce Exp-Supplies 140.100 24.294 17.34% 115,806 26,492 (2,198) -8.30% Of oa Expense-Other 98,500 21.574 22.36% 74,926 15.183 6,391 42.09% Small Computer Items 262,700 36,816 14.57% 215,884 50.843 (14.027) -27.59% Minor Furniture B Fixtures 162,200 8.793 5.42% 153,407 26.714 (17.921) -67.08% ri Printing 8 Publication Repm-In-House 315,800 64.195 20.34% 251,404 49,940 14,258 28.55% Printing-Outside 70,300 9,052 12.88% 61.248 19,791 (10.739) -5426% Notices 8 Ads 42,900 8,729 20.35% 34.171 9,890 (1,161) .11.74% r Photo Pmmssing 12,000 487 4.06% 11,513 508 (21) -4.13% Training&Meetings Meetings 270,000 43,841 16.20% 228,759 45.676 (1,836) -4.02% Training 796.500 43,939 5.52% 752.561 69.785 (25,846) -37.04% Operating Expenses Chemical Coagulants 1,777,300 424.034 23.86% 1.353.286 343,979 80,055 23.27% 1r Sulfide Control 1.890,000 582,695 30.83% 1,307.305 429,103 153.592 35.79% Odor Control 1,533,500 383,326 25.00% 1,150.174 494.745 (111,419) .22.52% Disinfection 7,132,000 717,248 10.06% 6.414,762 14.641 702,507 4798.90% Chemicals-Cogan Oper. 15.000 - 0.00% 15,000 SOS (686) -100.00% Miscellaneous Chemicals 12,8D0 2,432 19.30% 10.168 2,855 (423) A4.82% Gasoline,Diesel 8 Oil 311.200 59,452 19.10% 251.748 97,637 (36.185) -39.11% Tools 141,100 33.574 23.79% 107.526 39.181 (5,607) -14.31% BOW.Paints 8 Jan.Supplies 47,900 10,759 22.46% 37,141 10,474 205 2.72% l" Lob Chemicals 3 Supplies 345,500 93.279 27.00% 252.221 90,876 2.403 2.64% Other Opeatmg Supplies 254,000 75.482 29.72% 178,518 67,986 8,118 12.05% Property Tax Fees 36.000 - 0.00% 36,000 (22) 22 .100.00% rr Contractual Services Solids Removal 6.222.000 1,579,525 25.39% 4.642.475 1,778,569 (199.044) -11.10% Other Waste Disposal 641,000 92.840 14.48% 548,160 63210 29,630 46.88% Groundskeeping 223,80D 46,958 20.99% 176,832 32.6% 14.310 43.52% Janitorial 370.000 65,050 17.58% 304,950 40.755 24,295 59.61% Outside Lab SerAces 184.800 24,797 13.42% 160,003 24.807 (to) -0.04% Oxygen Plant Oper 326,000 77,516 23.85% 247.484 75.118 2.398 3.19% v Temporary Services 292.800 81,462 27.82% 211,338 45,120 36.342 80.55% Security Services 245.WD 47.604 19.43% 197,396 12,074 35,530 294.27% Other 342,000 29,137 8.52% 312.863 44.184 (15,047) -34.05% (Continued) Section 2-Page 6 Joint Operating Budget Review m Summary of Expenses by Line Item For the Three Months Ended September 30, 2002 m Expense %Expanse Expcnso Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2002-03 09130tD2 09/30/02 Budget 09130101 $ _/, Confined. Professional Services Legal 490.000 119.043 2429% 370,957 103.821 15,222 14.66% Audit B Accounting 75,000 36.922 49.23% 38.078 36.559 363 0.99% Engineering 195,600 32,564 16.65% 163,036 26.532 6,032 22.73% Enviro Scientific Consultlig 366,000 47.374 12.94% 318,626 114,9D0 (67,526) -58.77% FIS Support 225,000 7.740 3.44% 217,260 40,049 (32,309) -80.67% Software age,Consulting 160,000 62,8D9 39.26% 97.191 29.686 33,123 111.58% rr Energy Consulli g 50,0D0 - 0.00% 50.000 - - WA Advocacy Efforts 169,000 10,000 5.92% 159.000 10,000 - 0.00% Industrial Hygiene Services 45,000 1.815 4.D4% 43.182 - 1.818 WA Labor Negotiator,Services 100,000 8.313 8.31% 91,687 1283 7,030 547.93% a Other 452,400 65.562 14A9% 386,838 67,574 7.688 1328% Research 8 Monitoring Environmental Monilaring 8BO,400 162.992 18.51% 717,408 293,583 (130,591) d A8% W Air Quality Monitoring 115,000 - 0.00% 115.000 4.607 (4,687) -100.00% Research 471,500 228,920 48.55% 24ZSBD 238,248 (9.328) -3.92% Repairs 8 Maintenance .e Materials 6 Services 4.353,800 1,092B72 25.10% 3260,928 911.463 181,409 19.90% Svc.Mtc.Agreements 1,573,900 172.237 10.94% 1,401,663 110.631 61.706 55.83% utilities .+ Telephone 182.100 35,549 19.52% 146,551 31,031 4,518 14.56% Diesel For Generators 10,000 2.815 28.15% 7.185 1.403 1,412 100.64% Natural Gas 1.640,100 364,003 22.19% 1276,097 556,472 (192,469) -34.59% Power 1,187,DD0 342,349 28.84% 844,551 307.019 35.330 11.51% Water 1,145,000 271231 23.69% 873,769 283,131 (11.900) -4.20% Other OperaUng Supplies Outside Equip Rental 76,600 8,328 10.87% 68272 19,713 (11.385) -57.75% Insurance 2.625,000 229AS6 8.74% 2.395,544 251,679 (52223) -18.54% Freight 66,700 15.830 23.73% 50.870 11,377 4,453 39.14% Misc.Operating Expense 246,800 49,167 19.92% 197.633 43,782 5,385 12.30% r AOMD Operating Fees 18Q50D 79,397 47.12% 89,103 64.907 14A10 22.17% General Manager Contlngency 293.900 - 0.00% 293,900 - - WA Prior year reappropriation 30.700 - 0.00% 30.700 - - WA Other Non-Oper Expense 62,8W 9.662 15_39% 53,130 7,786 1.876 24.09% Metre,Supp,B Serv. 42,159.000 6,270.932 19.62% 33,885,068 7.700.054 570,B78 7.41% r Total Expenditures 9D,896,300 19.552,776 21.51% 71,343.524 18,283,672 1,289,104 6.94% Less:Cost Allocation (21.974,900) (4,24BA69) 19.33% (17.728,431) (6,D58,643) 1,810,174 -29.88% r Net J.O.Requirements 68.921,400 15,304,307 2221% 53.617.093 12,225,029 3.079278 25.19% Less: Revenues (3,500,000) (709,582) 2027% (2,790,418) (795,958) 06,376 -10.85% Net J.O.Expenses $ 65.421.400 $ 14,594.725 22.31% $ 50.826,675 $ 11.429.071 $ 3,165,654 27.70% Section 2-Page 7 2002-03 First Quarter Report Summary of Expenses by Treatment Process For the Three Months Ended September 30,2002 W Increase Increase Actual Actual (Decrease) (Decrease) 09130102 09130101 $ % V Treatment Process: Preliminary Treatment $ 1,264,068 $ 1,212,839 $ 51.229 4.22% V Primary Treatment 1,374.303 889,638 484.665 54.48% Secondary Treatment 844,284 604,758 239.526 39.61% u Cryogenic Plant(Plant 2) 153.436 12l,352 32.084 26.44% Effluent Disposal 125,202 100,503 24,699 24.58% r Solids Handling 6.107,982 4,905,552 1,202,430 24.51% v Cogeneration 1.911.876 1,893,291 18,585 0.98% Utilities 376,179 226,437 149,742 66.13% r Electrical Distribution 162,454 110.501 51,953 47.02% Miscellaneous Buildings 1,128.144 892.630 235,514 26.38% r Air Quality 438.070 309,447 128,623 41.57% Laboratory 1,418.309 958,081 460,228 48.04% .. Net Joint Operating Requirements 15.304,307 12.225,029 3,079.278 25.19% Less: Revenues (709,582) (795.958) 86,376 -10.85% Net Joint Operating Expenses $ 14.594,725 $ 11,429,071 $ 3,165,654 27.70% r, W Y�I 1-1 lutl Section 2- Page 8 Joint Operating Budget Review r Staffing Trends Full Time Equivalents September 30, 2002 r r 600 r r 5t0 r r aso 6I3011999 8/302000 6I302001 6/30/2002 9130/2002 III Actual EVacant At September 30, 2002, the total head count was 526 employees, or a full time equivalency of 518.75. Section 2 -Page 9 2002-03 First Quarter Report L i 1✓ L L L L L L This Page Intentionally Left Blank L L I . L.1 61 6 LL 6 L i 61 L Section 2 - Page 10 L CIP Review Capital Improvement Program By Type and Funding Source For the Three Months Ended September 30, 2002 W64 NI Pnlnury m $]BB,)BB 22y NeetlwMb SJ63,09J 53]&9B9 2% SBanM1ry P.Tee, Tteaanenl "0.2% p% YI,MB,D% VASI000 GdlMlone BMb Henanp 6 F.d Miee 9% ppeyyl 1p% N06051 E9u1pmm 3% $1VIM OtlprC tra $1.1M319 WIaIM Prgacle WNa, 1% Mm.Oemenl 1 Wgeds]% $J,11527$ $590 04 IXeen M9.11 MlxNlaneoua8 SyelemF 2J% Supw".N e% $4600.591 .."Sy9ems $48ap5 117,10 11% Ptaess PIen1 RBICIBtl pulomellon speaal ptolacla a% Total Capital Improvement Expenditure- $15,990,215 $e,a5as52 Repiacemen0 Rehaemiabon a6% $3,551,260 $1,095,02i Imp..d Suppod Tmelmem — 7% 22% $$,523,279 nadinwal capauy 31% Total Capital Improvement Expenditure-$15,990,215 Section 3- Page 1 2002-03 First Quarter Report L Summary of Capital Improvement Construction Requirements-Current Year L For the Three Months Ended September 30,2002 2002.03 2002-03 2002-03 Cashflow Actual at Projected V Budget W30/02 Outlay Collection Svstem Imarova.ant Protects Callocllona L Santa Ana Trunk Samar Rehab. $ - 6 2,140 3 10,000 Carbon Cnyn Sewer and Pump Sm.Abandonment 343.000 5,301 343.000 Santa Me River Interceptor Realignment and Prot. 821,000 49.116 821000 L Replacement of Miller-Holder Trunk Sewer Siphon 161,000 4.979 161:000 Orsm;aWeetem Subuunk Relief Seeer 119,000 346,671 350,000 Rehabilitation of the Magnolia Trunk Sewer 1,180,000 1,180,000 Rehabilitation of the Seal Beach Pump Station 175.000 175,0m Rehabilitalk n of tire Wesuide Pump Station 193.000 3,021 193.000 Ir Lining of 36'NPTB FM(June Box to 2nd An9ta R.) 1,959,000 13,930 1.959.000 Relocation of Lido Pump Station 139,000 11 139.000 Big Canyon O6eita Sewer Rehabilitation 103.000 3,171 103,000 y Big Canyon Trunk Samar Replacement 96,000 1,930 95,000 Replacement of Back Bay Trunk Saver 464,000 (200.888) 464,000 Replacement of the Bitter Paint Pump Station 392,000 8,483 3:2,000 L Replacement of the Rocky Point Pump Station 1,165,000 6,791 1.15.000 Rehabilitation of the 14th Street Pump Station 374,000 20,337 374,000 Rehabilitation of the'A'Street Pump Station $58,000 40,850 868,000 Rehabilitation of the Say Bridge Pump Station 350,000 1.152 350,000 L Rehabilitation of the Crystal Cove Pump Station 168.000 3.792 158,000 Abandonment of AS Trunk,Wetaon and Cal.Savers 95,000 6,050 95,000 Abandonment of AS Trunk Smears-Watson St 851,000 1,281 651.000 Abandonment of AS Trunk Sewers-Adirgton Or 545,000 661.052 700,000 Abandonment of AS Trunk SevrersCalifornle St 3,000 82 3,0oo Newland Street Inlereplor Sevier Protection 144,000 2,796 144,000 Warner Avenue Rekei Sever 1,319,000 14,410 1,319,000 PCH But Yard and HB Sevier Abandonment 378,000 - 376,000 L Rehabilitation of the Edinger Pump Station 252.000 8,322 252.000 Busham Trunk Sever Rehabilitation 7,505,000 164.459 7,5051000 Facilities Enginoedng Projects-Collections 300,000 - 300.000 Additional Chagas to CIP Closed at 5130Al2 26.108 30,000 Subtotal-Coliseums 20243,000 1,202,587 20,658,000 Revenue Area 7 Covey Lane Pump Station Abandonment 91,000 8,214 91,000 La Sunflower Interceptor Manhole Rehab, 20,000 885M 90,000 Lamm Heights Subtrunk Sreet Rehabilitation 270,000 - 270.000 College Ave Pump Station Parallel Fame Main 349,000 7,400 349.000 Ld GIetaPRedhll Trunk Server ReIcation-Phase 1 662,000 - 562,000 Gisler-Redhill Trunk Improvements,Reach"A" 1.573.000 9,622 1,573,000 Glaler-RWhill System Improvements.Roan'B" 855,000 10,029 $58.000 I j Tustin Tmnk Improvements 53,000 - 53,000 v Orange Trunk Improvements 1.214.000 1,831 1.214.000 Weal Trunk Improvements 13,000 - 13,000 L Gleler-RsdhllMorm Trunk Improvements 3,067.000 39,156 3,057,000 Replacement of the College Ave Pump Station 176.000 - 176,000 Rehabilitation of the MacArthur Pump station 52.000 - 02.000 Rehabilitation of the Michelson Pump Station 3g000 - 30.000 Modifications to the Main Street Pump Station(28%) 124.880 542 124,880 L Additianel Charges to CIP Closed at 6/30102 1,362 5,ow Subtotal•Revenue Are.7 8,562,880 160,692 8,637,680 b Section 3 -Page 2 V CIP Review aw Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30,2002 20024)3 2002-03 2002-03 r Cash0ow, Actual at Projected Budget 09/30/02 Cloudy Revenue Area 14 Modlficallons to Me Main Street Pump Burden(72%) 321,120 1,395 321,120 r Additional Charges to CIP Closed at 6130IO2 Sol 2,000 Subtand-Revenue Area 14 321,120 1,98a 323,120 Total Collection System Improvement Projects 29,127,000 1,371,265 29,629,000 an Treatment a Disposal Prolocts Callecaons Facilities Tmnk Sewer Mapping Project 768.000 94.561 755.000 Replacement of the Ellis Ave Pump Station 1400,000 20.983 1,400,000 Subtoal-Collections Facilities 2,168,000 115,544 2,188,000 m Heedworks Grit Auger Replacement 56,000 3.062 56,000 PLC Programming and Integration 496,000 3,475 495,000 Sunflower Drive Replacement 177.000 20,090 177,000 Headworks Rehabllltation/Refurbishmenl 75.000 447 75,000 Headwvdcs Improvements at Plant No.2 4,980,000 341,712 4,980,000 Subtotal-Hoadworks 5.784,000 368,786 5,784,000 re Primary Treatment Facilities Modi0catbns for Odor Control 307,000 9.107 307.000 Pri.Clarifiers 16,31 S Related Facilities 30,649.000 3,454,944 30.549.000 .a Primary Treatment Rehab/Refulb 20,000 - 20.000 Circular Clarifier Drive Replacement/Upgrade 271,000 98,160 271,000 Sludge Density Meter Upgrades 403,000 2,260 403.000 Sludge Level Measurement Device Installation 205,000 - 205A00 sr Subtotal-Primary Treatment 31,755,000 3,564471 31,755,000 Secondary Treatment e. Trickling Filler Rehabilitation and New Clutters 900,000 269,809 900,000 Activated Sludge Plant Rehebg0atian - 450 1,000 Sec Treat Monitoring a Cnbl Sys Upgrad 369.000 63.759 369.000 Secondary Plant Rehabilitation 60.000 6,780 60.000 s., Oxygen Plant ReplacemenORehabllltagon Assess 190.000 3.864 190,000 Activated Sludge Aeration Basin Selector Study 500,000 15.658 500,000 AS Clarifier Equipment Replacement 370,01)0 2723 370.000 Computer Modeling of Activated Sludge System 85,000 - 85,000 Subtoal-Secondary Treatment 2,474,OO1) 353,043 2,475,000 Solids Handling S Dlgesflon we Cambering Belt Press Rebuild 103,000 44.314 103,000 New Belt Filtrate Clarifier 47,00(1 - 47.000 Rehabilitation of Digesters at Plant No.2 271,000 293.507 300.000 Solids Storage and Tmck Leading Facility 3.514,01)0 1,262,%9 3,514,000 Digestion d Dewatedng Rehob.IRBfuIDlshment 56,000 187 56.000 High Rate Digester Mu Pumps Mach.Seale 72,000 2,369 72,000 Deaatedng Bell Press,Rebuild 126,000 23,114 126,000 Sludge Grinder Replacement 25,000 - 25,000 Desl9Nlmtall Ultrasonic Sludge Treatment Process 732,000 - 732,000 Subtotal-Solids Handling S Digestion 4,946,000 1,626,060 4,975,000 Section 3-Page 3 r 2002-03 First Quarter Report Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30,2002 200243 2002-03 2002-03 Crisham Actual at Projected Budget 09/30/02 Oullay Oman Outlall Systems Immsti9etion and Repair of Ocean Oulfall 5,746,000 1.283,720 5,746,000 Outfall Flow Meter Replacement 428,000 161,754 428,000 W Peak Flow Management 608,000 101,633 808,W0 Effluent Pumping Station Annex 2,306,000 356,890 2,506,000 Sham Term Outlall Bacteria Reduction 4.800,000 827.637 4,800,000 r HB Shorellne Conlaminwtion Invastigation Phase III - 208,141 210,000 NPDES Penh Renewal 1,17SAW 175,503 1,176,000 Subtotal-Ocean OuUalf Systems 15,463,000 3,115,278 15,673,000 1-I U61Ily Systems Electrical Power System Studies 922,000 24.976 922,000 Sunday Power and Rellabllity,Modifications 4,161,000 1.620.180 4,161,000 Cable Trey Improvements at Plants 182 458,000 1.473 453,000 1itl Central Generstkn Auomation 2,638.000 9.452 2.638.000 Plant 1 SBkV SubMation 150.000 - 150,000 Gas Compressor Addition at Ram No.2 392,000 409 392,000 Utilities Rehabilitation ad Refurbishment 868,000 16,021 ma.000 Fuel Station Replacement at Plant No.2 324.000 - 324.000 Electrical Equipment Refurtishment and Protection 89,000 - Beim Phone System Upgrade Plants 1 8 2 10.000 - 199.000 v Rehabllialion W I-me Pressure Gas Holder 422.000 - 422,000 IndoorlOutdoor Lighting Study 137,000 - 137.000 Plant 1 Plant Water VFD Replacement 730,000 730,000 Subtotal-Utility Systems 11,490,000 1,680,591 11,490,000 W Odor Control Related Projects Facilities Mdl8calfons for Odor Control 63.000 3,112 63.000 r Fadities Modifications for Odor Control 1,047,000 8.936 1.047.000 Smolder Monitm and Control Project 224,000 91,552 224,000 RehablRation of Odor Control Facilities 200,000 7.153 200,000 Chemical Facility Mds.at Plant No.1 82,000 16,747 82,000 Subtotal-Odor Central Related Projects 1,616,000 127.W0 1,616,000 Plant Automation 8 Compulerlea0on Power MunOadng and Control Systems Plant RaimmmonlAulomatkm Prolact 2,088,000 258,41" 2.088.000 Document Management 10.000 7.537 10,000 Data Integration 306,00D 73.4% 306,000 k,s Strategic lnformanch ArchitecWre(SIA) 70,001) - 70,000 CMMS Programming 62,0011 6,074 62,000 Intramet Application Devalpment 96,000 6.528 9a0W Voior-Data Building Rewiring 50,000 4,414 50,000 �+ Internet E-mail Browsing(Weltlte) 155,0W 3.057 165.000 Source Control Programming 367,000 94,675 367,000 Geographic Information System 45,000 4,447 45,WD Field Filter Optic uvereaea 50,000 21.924 50.000 SCADA Communications-Ethernet Study 147,000 - 147,000 SCADA Graphics Tagging Update 185,OW 2,198 185,000 Financial Information System Upgrade 1.408.000 1041656 1,405,000 y,r Information Technology Classier Recovery 302,000 - 302,0110 Network Equipment Upgrade 1,150,000 99,972 11159,000 Subtotal-Pont AutomaUan B Computerization 6.502,000 687,382 6.502,000 W Section 3-Page 4 W CIP Review Summary of Capital Improvement Construction Requirements•Current Year For the Three Months Ended September 30,2002 2002-03 2002-03 2002-03 eb Cashfiow Actual at Projected Budget 09130/02 Cuddy Proem Related Special Projects Effluent Pathogen Reduction Alternatives Plan 280,000 93,067 280.000 Standard SpeGBcatlons Revisions and Updates 14,000 436 14.000 Plant O S M Manual and SOP Project-Phase 1 580.000 939 580,000 1-12L3ntwaa Energy Coneol Procedures 380,000 65,207 380.000 m Asset Management Platinum 967,000 43,189 967.000 Corrosion Management 287,000 145 287.000 Special Projects - 281452 300.000 Subtotal•Process Related Special Projects 2508000 464435 2,808.000 Miscellaneous&Support Projects Continuous Feed Chemical Treatment Facility 451,000 - 451.000 Facilities Englnewmg Pmjects-Joint a00,000 90,541 900,000 Facilities Engineering Pmjects-Plant 1 800.000 39,776 g00,000 Facilities EnSirmamlg Pmjecls-Plant 2 900.000 54,410 901 Interim Fac Recent S End Data Syst Maint Services 210.000 22,272 210.000 s, Area Classification Studies 6,623,000 20,400 6.623,000 Supplement No.1 to Me 1999 Strategic Plan EIR 308,000 7,245 30 Wa Lang Range Bime fills Management Plan 222,000 7.165 222,000 Strategic Plan update 106,000 4.021 106.000 s ModMcalmns la Existing Mach Systems 388,000 - 388,000 WAC Equipment Replacement at Plants No.1 and 2 80,000 102,727 105,000 Space Allocation and trader Renovation 336.000 47,685 330.000 tebonubry Rehabilitation 6,000 - 6,0m �a Tenant Improvements to Rebuild Shop 7,000 - 7,000 Landscape and ligation at Plant No.2 535,000 6,041 535.000 esomity,System Improvements 400,000 40.931 400.000 r Small Cap,Equip.Replacement Project 500.000 115.760 500.000 Wamhouse Reinvention Project 296,000 1,023 296,000 Process Safety Management Compliance Program fili 60,000 Plume Modeling 121.000 497 121,000 0 S M Utuary Flowing S Shelving 64,000 S4.000 Subtotal-Miscellaneous B Support Projects 13,413,DD0 550.494 13,438,000 Water Management Projects, `t Oroundwater Replenishment System 15,540.000 S64,847 15,540,00g Water Consemalion 504,000 83,700 504,000 Coop Projects,Inflow/Inflt.Reduction 6,181.000 6,181.000 ,r tang Term Permanent Mentioning Prognum 839,000 201.772 839.000 Subtotal-Water Management Projects 23.064.000 1.1W.319 23.064.000 Additional Charges to CUP Completed at W30102 378,986 400.00D m Total 7reaenent and Disposal Projects 121,183,000 14,212.869 122.148.000 w Capitol Equipment Purchases 4,110,300 406,061 4,110,300 Total Collections and Treatment S Disposal Projects and Capital Equipment Purchases $151420300 $ 15,990.213 $155.087.30D Section 3- Page 5 2002-03 First Quarter Report Summary of Capital Improvement Construction Requirements-Project Life W For the Three Months Ended September 30,2002 Current Total Approved June 30,2002 Year Projected Remaining W Project Accumulated Projected Cost at Future Budget Cost Cost June 30 2003 Budget Conectlon Svetom Improvement Prolects Colloc6orrs W Santa Ana Trunk Sewer Rehab. 3 7,494,000 3 393,450 $ 10.00D 3 403,450 $ 7,090,660 Carbon Cnyn Some and Pump SM.Abandonmel8 3,584,000 163,437 343,000 526.437 3.057.563 Santa Am River Interceptor Realignment and Prot. 86,747,000 1.726,656 $21.000 2,547.656 M,199,344 w„ Abandonment of the E dsOng SARI In SA River 8.456.000 151 - 151 8,455,849 Replacement of Miller-Holder Trunk Serer Siphon 1.619,000 1,211,651 161,000 1.372.651 246.349 Orange-Western Subtrunk Relief Sewer 1,596.000 1.320.400 360.000 1,570,400 (74.400) Rehabilitation of 0w Magnolia Trunk Sewer 26.667,000 - 1,180.000 1,180.000 25,487,000 W Rahabllbation of Me Seal Beach Pump Station 3.645,000 - 175.000 175,000 3.470.000 Rehabilitation of Me Weslside Pump Station 1,803,000 173.657 193,000 365.657 1.436.343 Lining of 36'NPTB FM(Junc Box to 2nd Angle PI.) 1,959,000 1.959.000 1.959,000 - W Rebca9on of Lido Pump Station 3.656.D00 147.040 139,000 286,040 3.399.960 Big Canyon OBsim Sewer Reh dellttatlon 3.435.000 24,635 103.000 127.635 31307,365 Big Canyon Trunk Sewer Replacement 810,000 - w woo 96,000 714.000 Replacement of Beck Bay Trunk Sewer 7.264,000 6,369.48D 464,000 6,833,480 430,620 r Replacement of Me Bitter Point Pump Station 4,882,000 261.464 392,000 653.464 4,M11,536 Replacement of Me Rocky Point Pump Station 5.775,000 134.013 1,165,000 1.299.013 4,475.987 Rehabilitation of the 14M Street Pump Station 4,493.000 675,103 374,000 1.049.103 3.443,897 Rehabilitation of Me'A'Street Pump Station 4,596.000 1,005,549 958,000 1.863.549 2.732,451 W Rehabilitation of Me Bay Sedge Pump Station 1.816,000 127,126 350,000 477,126 1.338.874 Rehab0ltallon of Me Crystal Cove Pump Station 933,000 113.122 15S.ODO 271,122 661,878 Abandonment of AS Trunk,Watson and Cal.Sewers 384,000 268,M3 95,ODD 363.643 20.457 V Abandonment of AS Trunk Sewere-Wallon St 1,2oll 47 651,ODD 651,047 548,953 Abandonment ofAS Trunk Sexars-Adinglon or 1,/30.000 7.400 700,060 707,400 422,600 Abandonment of AS Trunk SexersCallfomW St 1.086,000 826 3.000 3.826 1,054,174 Newland Street lntemptor Sewer Protection 144.000 7.016 144.000 151,016 (7,016) W Warner Avenue Relef Se r 7.026.000 636.375 1.319.000 1.855,375 5,170,625 PCH Boat Yam and HB Sewer Abandonment 378,000 - 378.ODD 378,OW - Rehabili udim,of Me Edinger Pump Station 1.817,000 146,242 252.000 398.242 1.418.758 Bushed Trunk Sewer Rehabil'datlon 38,9M,OOD 1,861.802 7.505,000 9.366.862 29,617.138 W Facilities Engineering PmJecu-ColleGlona 5,400,00D - SOO,o00 300,000 5,100.000 Adtlilional Charges to CUP Closed 21 MO/02 M,779.816 20.031.191 30,000 20,061,191 2,718,625 Subtotal-ColleNons 261.51n).816 36.7211.438 20,668,000 57.394.436 200.176.350 W Revenue Area 7 Covey Lane Pump Station Abandonment 100,000 31,135 91,000 122,135 (22.135) Sunflower lntemeptor Manhole Rehab, 5,395,000 470.114 90.000 560.114 4,834,895 Lemon Heights Subbunk Steel RehabnUMuon 603.000 270.000 270,000 233.000 W College Ave Pump Station Parallel Fume Main 1,890,000 99.653 349.000 448,653 1,441,347 Gisler-Redhlll Trunk Sever Relocation-Phases 8DD.OM - 662,000 682,000 135.000 Gisler-Redhill Tmnk Improvements.Reach'A' 7,832.000 315.839 1,573,000 1.81B8,839 5,943,161 W Gisler-Redhlll System Improvements,Reach-8- 4.986,000 52.659 958,000 910,659 4,075.341 Tustin Trunk Improvements - 3,652.000 8.630 53,000 61,630 3.600,370 Orange Tmnk Improvements 5,840,0D0 272,370 1.214.000 1,486,370 4,353,630 West Trunk Improvements 497,000 2,049 13.000 15.049 481.951 W Gisler-RedhlllMOM Trunk Improvements 16,316.000 370.539 3.067,000 3,443.539 12.872.461 Replacement of the College Ave Pump Station 4,512.000 - 176.000 176,000 4.336,000 Rehabilitation of the MacAdhur Pump station 1.651,000 - 62.000 62,000 1.589,000 Rehabilitation of the Michelson Pump Station 918,000 379 30,000 30,379 887,621 Modifications to Me Main Street Pump Station(28%) 124,880 44D 124,850 125,320 (440) Additional Charges to CIP Closed at 6/30102 763,496 5.00D 768.4% (765,496) Subtotal-Revenue Anal 55,026.8W 2,393,303 8,637.880 11.031,183 43,995,697 W Section 3-Page 6 W CIP Review Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30,2002 Current Total m Approvod June 30,2002 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30.2003 Budget Revenue Area 14 Modifca6ons to the Main Street Pump Station(72%) 321,120 1.131 321,120 322.251 (1,131) Additional Charges to CIP Closed at 6/30M2 69,489 2,000 71,489 (71,489) Subtotal-Fleur enua Area 14 321,120 70.620 323,120 393,740 (72,620) Total Collection System Improvement Projects 31e,gia,s16 39,10,359 29,629,000 68,819,359 248,099.457 Treatment 5 Dap.sal Prolecta W Colleallona Facilities Trunk Sewer Mapping Project 1,709.000 811,965 768.000 1.579.985 129,015 Replacement of Me Ellis Ave Pump Station 27,100,000 52,780 1,400,000 1.452.780 25.647.220 Subtotal-Collections Faclll0ee 28.81M,000 864,765 2,168,000 3,032,765 25.T76.235 Hmdworkc Grit Auger Replacement 1.131,000 1.065.349 56.000 1,121,349 9,651 PLC Programming and Integration 500,000 5,055 496.000 501.055 (1,055) Sunflower Ddve Replacement 758.000 520,393 177.000 697.393 60,607 HeadxarYs Rehabilltation/Refurbish rant 11,M6,000 63.a21 75,000 138,821 11,207,179 Headworks Improvements at Plant No.2 160,130,000 3,694,529 4.980,000 8,674,629 161,456,471 W Subtotal-Headworks 173.865.000 5,349,147 5,784,000 11,133,147 102,731,853 Primary Treatment Facilities Modifications for Odor control 792.000 907.910 307.000 1.214.910 (422.910) W Pd.Cladfiers 16-31 8 Related Facilities 89,947,000 13,662,458 30,549,000 44,111,458 45,835,542 Primary Treatment Rehab(Refurb 11.904.000 454 20,000 20.454 11,863,546 Circular Clarifier Drive Replacement/Upgrade 3.103.000 78,334 271,000 349.334 2.753.666 W Sludge Density Meter Upgrades 800,000 3,824 403.000 408,624 393.176 Sludge Levat Measurement Device Installation 354,000 136 205,000 205,136 158,884 Subtotal-Primary Treatment 106,910,000 14,553,116 31,755,000 46.308.116 60.601,884 Secondary Treatment Trickling Filter Rehabilitation and New CladOers 50.000,000 2.905.681 900,000 3,805,581 46,194,419 ActNeted Sludge Plant Rehabilitation 12.a8Q000 12,366 1.000 13,366 12,936.634 Sec Treat Monitoring 8 chum Sys UOgrad 6,917.000 220.384 369,000 50.394 6,327,616 W Secondary Plant Rehabilitation 7,443,000 5,120 60,000 65,120 7,377,880 Oxygen Plant Replacement/Rehabilitae0n Assess 262.000 2,461 190,000 192.461 69,539 Activated Sludge Aeration Basin Selector Study 950,000 38,560 500.000 538.580 411.420 W AS clarifier Equipment Replacement 450.000 242,704 370,000 612,704 (162704) Computer Modeling of Activated Sludge System 120,000 85,000 a5,Ue0 35,000 Subtotal-Secondary Treatment 78,992,000 3,427,196 2,475,000 5,902,196 73,089,804 solids Handling a Digestion Dewatering Belt Press Rebuild 528.000 616,954 103,000 719,954 (191.954) New Belt Filtrate clarifier 1.325.000 - 47,000 47,000 1.276.000 ReMbilllstion of Digesters at Plant No.2 14,654,000 14.025,502 300,000 14.325,502 328,495 W Solids Storage and Track Loading Facility 14,450.000 11.026,433 3,514,000 14.540.433 (90.4M) Digestion E Dammming Rehab.Meiurblshment 10,490.000 44 56.000 56.044 10.433.998 High Rate Digester Mix Pumps Mach,Seals 517,000 446,432 72.000 517.432 (432) W Dawutering Belt Press Rebuild 824,000 514,894 126.000 640.894 183,106 Sludge Grinder Replacement 224.000 198,997 25.000 223.997 3 Design/Instill Ultrasonic Sludge Treatment Process 2.800,000 732,000 732,000 1,W8,000 Subtotal-Solids Handling&Digestion 45,612,000 26,828.256 4.975.000 31,803,256 13,808.7" W Section 3-Page 7 W 2002-03 First Quarter Report r Summary of Capital Improvement Construction Requirements -Project Life For the Three Months Ended September 30,2002 Current Total Approved June 30,2002 Year Projected Remaining n.4 Project Accumulated Projected Cost at Future Budget Cast Cost June 30,2003 Budget Ocean Oulfall Systems Imestigatio i as Repair of Ocean Oueall 7.527.000 1.730.606 5.746,000 7,476.608 50.392 r Oudau Flow Meter Replacamenl 1,896.000 1,739,060 428,000 2,167.0s) 971.050) Feast Film Management 10,81[5,0110 539.390 M.000 1.347.390 9.467.610 Effluent Pumping Station An. 50,827,000 2,560.092 2,506,0D0 5.066,092 45.761 r Shod Term Outtall Bacteria Retlucdan 5250.000 723,975 /,800,000 5,523.975 (2)3,9]5) RB Shoreline Confaminatlon Investigation Phase III 5227.000 4.301,771 210,000 4,511.T71 715229 NPDES Permit Renewal 1512,000 sei 1.175,000 1,764,13211 =1129) Subtotal-Coast Outlall Systems 93.054.000 12,184,725 15,673.000 27,857,725 55.19695 r utility Systems Elecuial Power System Studies 3216,000 2,538,878 gao00 3.460,878 (244,878) Standby Pater and Relabiliy Modifiatigns 16237,000 9582.710 4,161,000 13,743.710 2,493290 Cable Trey Improvements at Plants 1 8 2 26.790,000 1A72,938 458,000 1.530.936 25251 Central Gererdtion Automation Zest.= 234.571 2.638,000 2.87ZW1 91.429 Plats 1 66kV Substation 4,315.000 - 150,000 150,000 4,165,000 r Gas Compressor Addition at Plant No.2 2.555,000 67,187 392.000 459.187 2,095.813 Wires Rehabilitation and Refurbishment 4,756,000 711737 868,000 1.561,737 3,174.263 Fuel Station Replacement at Plant No.2 425,000 - 324,000 324.000 102,000 Electrical Equipment Refurbishment and Protection 1,567.000 - a9,000 89.000 /,478.000 r Phone System Upgrade Plants 1 8 2 199,000 - 199,000 Igo.= - Rehab6itation of Low Pressure Gas!older 422,000 - 422,000 422,000 - IMoor/OutdoorLghtingStudy 137,000 - 137.000 137,000 Plant 1 Plant Water VFD Replacement 730,000 730.0110 730,000 Subtotal-Utility systems 64,314,000 14210,019 11 490,000 26,700,019 38.613,981 Odor Control Related Projects Facilities ModlSations for Odor Control 301.000 375.313 63.000 438,313 (137.313) r Facilities Modgations for Odor Control 2,909,000 567,537 1.047,000 1,614,537 1294,463 Scrubber Monitor and Control Project 2,382,ODD 2.610242 224,000 2,834242 (452242) Rehabilitation of Odor Control Facilities 29200.000 2,432 200.000 202.432 2B,997,568 `. Chemical Facility Mods.at Plan[No.1 4,536,000 4,505.440 82,000 4,587.440 (51.440) Subtotal-Odor Control Related Projects 39.3n,= 8,060,964 1.616.00D 9.676.964 29,651.096 Plats Automation 8 Computsrlration r Power Monitoring and Canhol Systems 3,728,000 24.1]] - 24,177 3.703.823 Plant ReinventiondAutomation Project 25,76Q000 11,706.550 2.088.000 13,794,550 11.965.450 Document Management 864,000 606,914 10.000 616.914 247,086 Data Integration 4,334.000 2.723.406 306.000 3,029,408 1,304,592 r Strategic Information Amhiteclure(SIA) 724.000 439205 70,000 509.205 214,795 CMMS Programming - 490.000 345,162 62.000 407,162 82.838 Intranet Ap liafion Development 300,000 90.962 as,= 188,962 111.038 Volce-Gala Build"Rawmng 109,000 730.276 50,000 780,276 (6712m) r taemet Email Browsing(Website) 370.000 197.037 155.000 352,037 17,963 Sound Current Programming L104,000 701,664 367,000 1,06a,664 35.336 Geographic laureation System 4.157.000 330292 45,000 375.292 3.781.708 r Field Fiber Optic Upgrades 229.000 545,036 50,ga0 595,036 (366,036) SCADA Communications-Ethemet study 1s8,000 310 147,000 147.310 10,690 SCADA Graphics Tagging Update 425000 43.070 1a5,000 228,070 196,930 Financial lnfomadon System Upgrade 2225,000 719.004 1,408.000 2.127,004 97,996 r Information Technology Disaster Recovery 332.000 32,912 302.000 334,912 (2.912) 149t *Equipment Upgrade 2.910,000 966.SU 1.159.000 2,125,934 784,066 Subtotal-Plant Automation B Computerization 48219.000 20,2p2,913 6,502.000 26,704,913 21414,087 Section 3-Page 8 W CIP Review Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30,2002 Current Total m Approved June 30,2002 Year Projected Remaining Project Accumulated Projected Cost Future Budget Coat Cost June 30.2003 Budget ice Process Related Special Projects Effluent Pathogen Reduction Marretves Plan 650,000 19,272 280,000 299.272 350.728 Standard Specifications Revisions and Updates 200,000 464,452 14.000 478,462 (278,452) Plant O&M Manual and SOP Project-Phase 1 4.000,000 16,153 580.000 596.153 3,403,947 r7 Hazardous Energy Control Procedures 1.190.000 329.108 380,000 709.108 480,892 Asset Management Program 1.027,000 Sal 067,000 1.051.290 (24.290) Corrosion Management 313.000 287,000 287.00D 26.000 Special Project 11,515,000 3,543,094 300,000 3,843.094 7,671,900 Subtotal-Process Related Special Projects 18.895.000 4.456.369 2,808,000 7,264,369 11,630,631 Miscellaneous&Support Projects ec Continuous Feed Chemical Treatment Facility 451.000 451,000 451.000 - FadlWes Engineering Project-Joint 18,200,01)D 1.767,038 900,000 2.667.035 15,532,962 Fadlitlas Engineering Protects-Plant 1 18,20D,000 468,146 900,000 1,368,146 16,831.854 Fadllties Engineering Projects-Plant 2 18.200.000 1,475,522 900,000 2,376,622 15.824.478 vz Interim Fee Record&Eng Data Syst Maim Sanicee 628.000 346.804 210,000 556,804 71.196 Area Claeeilicallon Studies 29,345.000 3.5D2,216 6,623.000 10.125.218 19,219,782 Supplement No.110 Me 1999 Strategic Plan EIR 432,000 167,8S4 3o8,000 475.884 (43,884) Long Range Biesolids Management Plan 492.000 10.413 222,000 232,413 259,587 Strategic Plan Update 3A78,000 - 106,000 106,000 3,312,000 Modifications In Eslsting Mach Systems 2,694,000 265,571 388,000 653,571 2.040,429 HVAC Equipment Replacement at Plants No.1 and 2 1.316,000 1.232,570 105.000 1.337.570 (21,570) Space Nicer lan and Interior Renovation 12.974.000 652.896 336.000 888.898 12.085.102 Laboratory Rehabilitates 1,033,000 6.000 6,000 1,027,000 Tenant Improvements to Rebulid Shop 321.000 - 7.00D 7,000 314.000 Landscape and Initiation at Place No.2 810.000 174,a68 535.ODO 709.868 100.132 m Security System Improvement 1,100,000 860.668 400,000 1.250.656 (160,658) Small Cap,Equip.Replacement Project 3,000,000 1,223.307 500,000 1,723.307 1,276,693 Warehouse Rainventtn Project 500000 71,313 298,000 367.313 232,667 Process Safety Management Compliance Program 60,000 60.000 60.000 - '� Plume Modeling 242,000 120.990 121.000 241.990 10 O&M Library Flooring&Shelving 1".000 64,000 64.000 80.000 Subtotal-Miscellaneous&Support Project 113,060,000 12240.200 13,438,000 25,678200 87,951,800 Water Management Projects Groundwater Replenishment System 201.208.000 10.316.369 15,540,000 25.8661369 175,349,631 Water Conse.ficm 4,644,000 2.198.092 ao1,000 2,702.D92 1.941.908 Comp Pmjwo,mfloWgngll.Reduction 142,676,000 5,181.000 6,181.000 135,496,000 Long Tom Permanent Monitoring Program 7.074,000 3.348.734 839.000 4,187.734 2,886,256 Subtotal-Water Management Project 355,600,000 15,863,195 23,064,000 38,07.10 316,672.805 G Additional Charges to CIP Completed at 6130101 53,212.000 18,316,405 400,000 18,716,405 34.495,595 Total Treatment and Disposal Projects 1.210.470.000 156,557,270 122148,M 278,705,270 931.764,730 .� Capitol Equipment Purchases 4,110,300 4,110.301) 4,110,300 Total Collections and Treatment&Disposal Project and capital Equipment Purchases $1.531,499,116 $195,747629 $155.867,300 $361,634,929 $1.179.864.187 Section 3 -Page 9 2002-03 First Quarter Report " V ICY This Page Intentionally Left Blank Section 3 -Page 10 Budget Review by Revenue Area r All Revenue Areas Operating and Capital Facilities Budget Review For the Three Months Ended September 30,2002 Operatina Budoet Review m 2002-03 Year-To- Remaining Year-To-Date Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocalions/Subventions(Share of 1%) $ 39,481,000 $ 2,474,620 $ 37.006,380 6.27% Other User Fees 86.325,000 3,095.030 83,229,970 3.59% Connection Fees 5,824,000 2,190.429 3.633,571 37.61% Sale of Capacity Rights 8,105.000 - 8,105,000 0.00% Capital Assessment(IRWD) 3,759.000 406.840 3,352,160 10.82% Debt Proceeds 280,000,000 - 280,000,000 0.00% Interest&Miscellaneous Revenue 39.101,000 12,644,278 26456,722 32.34% Total Receipts $ 462,595,000 $ 20,811,197 $441,783.803 4.50% CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 125,293,000 $ 14,618,950 $110,674,050 11.67% Collection Activity Capital Improvements 29,127,D00 1,371,265 27,755,735 4.71% .d COP Retirement and Interest Expense 38,995,000 14,024,886 24,970,114 35.97% Share of Joint Works Operating Expenses 65.421,400 14.594.725 50,826,675 22.31% Revenue Area Operating&Other Expenses 15,135,000 3,404.170 11.730,830 22.49% Total Disbursements $ 273,971,400 $ 48.013,996 $225,957,404 17.53% ® Capital Facilities Budget Review Balance Adjustments Transfer to Balance 07101102 &Additions Fixed Assets 09130/02 CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 39.269,237 $ 1.371.265 $ - $ 40,640.502 Share of Joint Works Treatment Plant CIP 138,443,705 14,618,950 - 153,062,655 Subtotal 177,712,942 15,990,215 193,703,157 PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 10,398,595 - - 10,398,595 Collection Lines and Pump Stations 386,202,814 - - 386,202.814 Treatment Facilities 627,673,508 - - 627,673,508 Disposal Facilities 90,161,860 - - 90,161,860 General Plant and Administrative Facilities 122,415,790 - - 122,415,790 Subtotal 1.236,852,567 1,236,852.567 r Total Property,Plant&Equipment&CIP $1,414,565,509 $ 15.990,215 $ - $1,430,555,724 Section 4-Page 1 r 2002-03 First Quarter Report Consolidated Revenue Area Operating and Capital Facilities Budget Review W For the Three Months Ended September 30, 2002 u Operating Budget Review 2002-03 Year-To- Remaining Year4o-Date W Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions(Share of 1%) $ 35,700,000 $ 2,220,318 $ 33,479,682 6.22% Other User Fees 73,424.000 1,930,164 71,493,836 2.63% ` Connection Fees 5,096.000 2.020.228 3,075,772 39.64% Sale of Capacity Rights 7.067,000 - 7,067,000 - Capital Assessment(IRWD) - Debt Proceeds 220,000.000 - 220,000,000 O.OD% Interest&Miscellaneous Revenue 34,858,000 11.782.479 23,075,521 33.80% W Total Receipts $ 376,145,000 $ 17,953,189 $358,191,811 4.77% CASH DISBURSEMENTS: r Share of Joint Works Capital Improvements $ 109,256.000 $ 12,636,621 $ 96,619,379 11,57% Collection Activity Capital Improvements 20,243.000 1,202,587 19,040,413 5.94% COP Retirement and Interest Expense 34,988,000 13,118,706 21.8692% 37.49% Share of Joint Works Operating Expenses 57,047,500 12,633,054 44,414,446 22.14% ` Revenue Area Operating&Other Expenses 11,655,000 3.026.283 8,628,717 25.97% Total Disbursements $ 233,189,500 $ 42,617,251 $190,572,249 18.28% Capital Facilities Budget Review �+ Balance Adjustments Transfer to Balance 07101/02 &Additions Fixed Assets 09130/02 W CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 35,729,658 $ 1,202,587 $ - $ 36.932,245 Share of Joint Works Treatment Plant CIP 119.670,737 12,636.621 132,307.358 W Subtotal 155,400,395 13,839,208 189,239,603 PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 7,542,629 - 7.542.629 Collection Lines and Pump Stations 310,019,037 - - 310,019,037 Treatment Facilities 542.563,682 - - 542.563.682 Disposal Facilities 77.938.898 - - 77,938,898 General Plant and Administrative Facilities 105,831,371 - 105.831.371 W Subtotal 1,043,895,617 - 1,043,895.617 Total Property, Plant& Equipment&CIP $1,199.296,012 $ 13,839,208 $ - $1,213,135,220 W W Section 4- Page 2 W Budget Review by Revenue Area Revenue Area No.7 Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2002 Operating Budget Review 2002-03 Year-To Remaining Year-To-Date Budget Date Budget %of Budget CASH RECEIPTS: ,.. Tax Allocations/Subventions(Share of 1%) $ 3,781,000 $ 254,302 $ 3,526,698 6.73% Other User Fees 9.460.000 290,844 9,169,156 3.07% Connection Fees 728.000 170,201 557,799 23.38% Sale of Capacity Rights 792,000 - 792,000 - �' Capital Assessment(IRWD) - - - - Debt Proceeds 60,000,000 - 60,000,000 0.00% Interest 8 Miscellaneous Revenue 3,715,000 745,944 2,09,056 20.08% Total Receipts $ 78,476,000 $ 1,461,291 $ 77,014,709 1.86% he CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 12,241,000 $ 1,529,142 $ 10,711,858 12.49% Collection Activity Capital Improvements 8,884,000 166,692 8,717,308 1.88% COP Retirement and Interest Expense 4,007,000 905,180 3,100,820 22.61% Share of Joint Works Operating Expenses 6,411,300 1,210,658 5,200.642 18.88% Revenue Area Opembng 8 Other Expenses 2,994,000 307,027 2,686,973 10.25% Total Disbursements $ 34,537,300 $ 4,119,699 $ 30,417,601 11.93% �+ Capital Facilities Budget Review Balance Adjustments Transfer to Balance 07/01102 8 Additions Fixed Assets 09/30102 CONSTRUCTION IN PROGRESS: Collection Activity Construction In Progress $ 3,389,046 $ 166,692 $ - $ 3.555,738 Share of Joint Works Treatment Plant CIP 14,481,213 1.529,142 - 16,010,355 Subtotal 17.870,259 1,696,834 19,566,093 PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 2.348.125 - - 2,348,125 Collection Lines and Pump Stations 46,786,035 - - 46,786,035 Treatment Facilities 65,652,565 - - 65,662,566 Disposal Facili5es - 9,431,092 - - 9,431.092 General Plant and Administrative Facilities 12,810.241 12,810,241 Subtotal 137,028.058 - 137,028,058 Total Property,Plant 3 Equipment S CIP $154,898.317 $ 1,695,834 $ $156,594,151 m Section 4-Page 3 V 2002-03 First Quarter Report Revenue Area No.14 Operating and Capital Facilities Budget Review For the Three Months Ended September 30,2002 y Operating Budget Review 2002.03 Year-To- Remaining Year-To-Date W Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions(Share of 1%) $ - $ - $ - N/A Other User Fees 3.441,000 874,022 2,566,978 25.40% v Connection Fees - - - N/A Sale of Capacity Rights 246,000 - 246.000 0.00% Capital Assessment(IRWD) 3,759,000 406,840 3,352,160 10.82% Debt Proceeds - - - N/A Interest&Miscellaneous Revenue 528,000 115,865 412,145 21.94% W Total Receipts $ 7,974.000 $ 1.396,717 $ 6,577,283 17.52% CASH DISBURSEMENTS: Share of Joint Works Capital Improvements $ 3,796,000 $ 453,187 $ 3,342.813 11.94% Collection Activity Capital Improvements - 1,986 (1,986) N/A COP Retirement and Interest Expense - - - N/A Share of Joint Works Operating Expenses 1,962,600 751,013 1.211,587 38.27% r Revenue Area Operating&Other Expenses 486,000 70,860 415,140 14.68% Total Disbursements $ 6,244,600 $ 1,277.046 $ 4,967.554 20.45% Capital Facilities Budaet Review Balance Adjustments Transfer to Balance 07101102 &Additions Fixed Assets 09/30102 y CONSTRUCTION IN PROGRESS: Collection Activity Construction in Progress $ 160,533 $ 1,986 $ - $ 152,519 Share of Joint Works Treatment Plant CIP 4,291,765 453,187 - 4.744,942 V Subtotal 4,442,288 455,173 4,897,461 PROPERTY,PLANT&EQUIPMENT(at cost): Land and Property Rights 607,841 - - 507.841 Collection Lines and Pump Stations 29,397,742 - 29,397,742 Treatment Facilities 19.457,261 - - 19,457.261 �.. Disposal Facilities 2,791,870 - - 2.791,870 General Plant and Administrative Facllities 3.774.178 3,774,178 Subtotal 55,928,892 - 55,928,892 Total Property,Plant&Equipment&CIP $ 60.371,180 $ 455,173 $ $ 60,826,353 it y Section 4-Page 4 y Self Insurance Review General Liability Fund Budget Review For the Three Months Ended September 30,2002 Percent Actual of Budget Remaining Actual 2002-03 Through Through 2002-03 Through Increase Budget 09/30102 09130102 Budget 09130/01 (Decrease) W Revenues: W In-Lieu Premiums $1,900,000 $475,000 25.00% $1,425,000 $ 311,625 $ 163,375 Interest B Miscellaneous 80,000 15.105 18.88% 64,895 18.691 (3,586) W Allocation from Other Funds 500,000 467 0.09% 499,533 13,074 (12,607) Total Revenues 2,480,000 490,572 19.78% 1,989,428 343,390 147,182 W Expenses: Benefits/Claims 300.000 8,551 2.85% 291.449 2,619 5.932 W Contractual Services 3,500 - 0.00% 3,500 300 (300) r Legal Services 450.000 83,205 18.49% 366,795 40,886 42.319 Protesslonal Services 5.000 711 14.22% 4,289 682 29 Supplies&Other - NIA - - - Service Department Allomdon 1,559,000 389,214 24.97% 1,169,786 389,715 (501) W Subtotal 2,317,500 481,681 20.78% 1,835.819 434,202 47,479 Excess Loss Policy 112,000 47,464 42.38% 64,536 27.978 19,486 Total Expenses 2429,500 529,145 21.78% 1,900,355 462,180 66,965 Excess Revenue(Expenses) 50,500 (38,573) -76.38% $ 89,073 (118,790) 80,217 W Beginning Reserves 629.500 301,883 1,154,388 852,505 Ending Reserves $ 880,000 283 370 $1,035,598 $(772.288) r r W W W Section 5-Page 1 W 2002-03 First Quarter Report " Workers'Compensation Fund Budget Review W For the Three Months Ended September 30, 2002 Percent r Actual of Budget Remaining Actual 2002-03 Through Through 2002-03 Through Increase Budget 09/30/02 09/30/02 Budget 09/30/01 (Decrease) Revenues: In-Lieu Premiums $500,000 $125.000 25.00% $375,000 $79,400 $ 45,600 e. Interest&Miscellaneous 15,000 2,877 19.18% 12.123 8,010 5,133 Total Revenues 515,000 127,877 24.83% 387,123 87,410 40,467 Expenses: er Benefits/Claims 250,000 64.754 25.90% 185,246 89,126 (24,372) Contractual Services 25,000 6,250 25.00% 18,760 6,249 1 Legal Services 25,000 1,575 6.30% 23,425 8.370 (6,795) Professional Services 35,000 2,466 7.05% 32,534 1,640 826 W Supplies&Other - - N/A - - - Service Department Allocations 89,000 5,964 6.70% 83,036 6,744 (780) Subtotal 424,000 81.009 19.11% 342,991 112,129 (31,120) Excess Loss Policy 35.000 17,273 49.35% 17,727 9,624 7,649 Total Expenses 459,000 98,282 21.41% 360,718 121,753 (23,471) Excess Revenue(Expenses) 58,000 29,595 52.85% 28 4 (34,343) 83,938 Beginning Reserves 157,500 79.645 109,742 (189,387) Ending Reserves $75,399 25 449 r v u W W Section 5-Page 2 Orange County Sanitation District, California (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley,California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018 OCSD 9/30102 STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for theRegular Board Meeting of Orange County Sanitation District to be held on /�Zet� , 200 iwas duly posted for public inspection in the main lobby of the Districts' offices on IM � ly, 200 Q 1pX IN WITNESS WHEREOF, I have hereunto set my hand this el day of Penny M. Kyle, Secretary Board of Directors Orange County Sanitation District ` G:\WP.DTAXADMIN%BS�FORMSIAGENDA CERTIFICATION.DOC i MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, November 13,2002,5:00 p.m. A meeting of the Finance,Administration and Human Resources Committee of the Orange County Sanitation District was held on November 13, 2002, at 5:00 p.m., in the Districts Administrative Office. (1) The roll was called and a quorum declared present, as follows: - FAHR COMMITTEE MEMBERS: STAFF PRESENT: Directors Present: Blake P. Anderson, General Manager Roy Moore,Vice Chair Gary Streed, Director of Finance Brian Donahue Mike White, Controller Mark Leyes Greg Mathews,Assistant to the General Joy Neugebauer Manager Shirley McCracken, Board Chair Lisa Arosteguy, Human Resources Supervisor Steve Anderson, Vice Board Chair Jan Collins, Sr. Human Resources Analyst Jim Matte, Safety& Health Supervisor Directors Absent: Bob Gaggle Penny Kyle,Committee Secretary Brian Brady, Chair John M. Gullixson OTHERS PRESENT: James W. Silva Thomas L. Woodruff, General Counsel Steve Filarsky, Special Labor Counsel Don Hughes Toby Weissert Mike Moreland Greg Giles (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. Vice Chair Moore announced that Item 15, Closed Session,would be considered immediately following public comments. The remaining items listed on the agenda would be considered following the reconvening of the Committee in regular session. (3) PUBLIC COMMENTS There were no public comments. d Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 November 13, 2002 (15) CLOSED SESSION The Committee convened in Closed Session at 5:10 p.m. pursuant to Government Code Section 54957.6 to discuss and consider Agenda Item No. 15(a)(1). Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordance with Califomia 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. There was no reportable action taken by the Committee re Agenda Item No. 15(a)(1). RECONVENE IN REGULAR SESSION:At 5:26 p.m.,the Committee reconvened in regular session. (4) REPORT OF THE COMMITTEE CHAIR The Vice Chair had no report. (5) REPORT OF THE GENERAL MANAGER Blake Anderson reported that formal signing of the Joint Operating Agreement for the Groundwater Replenishment System took place the prior evening at a meeting of the Joint Cooperative Committee. Mr. Anderson provided a brief update on negotiations for the$3 million still owed the District by SAWPA. Due to action taken by the Steering Committee regarding SAWPA's proposal on the SARI Line,staff has stopped the environmental review work in order to get SAWPA to focus attention on the outstanding payment issues. He was informed that SAWPA's board met In closed session on November 12. It is possible litigation could arise from this issue. General Counsel and staff have compiled a list of all issues related to receivables with SAWPA for the past 20 years, which will be provided to the SAWPA board of directors. It was reported that although the FAHR Committee is generally dark in January, a meeting might be required to discuss meet and confer issues. Mr.Anderson also announced that the Ad Hoc Committee re Urban Runoff meeting scheduled for November 21"has been cancelled. (6) REPORT OF DIRECTOR OF FINANCE The Director of Finance had no report. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources was not present. The representing Human Resources Supervisor had no report. (8) REPORT OF GENERAL COUNSEL General Counsel had no report. 9 Minutes of the Finance, Administration and Human Resources Committee Meeting Page 3 November 13, 2002 (9) CONSENT CALENDAR ITEMS a. The Chair ordered that the October 9,2002 minutes for the Finance,Administration and Human Resources Committee meeting be deemed approved, as mailed. b. FAHR02-95: Receive and file Treasurers Report for the month of October 2002. C. FAHR02-96: Receive and file Certificate of Participation (COP)Monthly Report. d. FAHR02-97: Receive and file Employment Status Report as of October 31,2002. e. FAHR02-98: Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR02-99: Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1,2002 through September 30, 2002. g. FAHR02-100: Recommend to the Board of Directors to approve SAFETY-POL 304,as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. h. FAHR02-101: R eoommend to the Board of Directors to receive and file the 2002-03 First Quarter Financial Report for the period ending September 30,2002. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 9(a)through (h) under Consent Calendar. Director Joy Neugebauer abstained on Item 9(a). END OF CONSENT CALENDAR (10) ACTION ITEMS a. FAHR02-102: Recommend to the Board of Directors to receive,file and approve the District's Comprehensive Annual Financial Report(CAFR)for the year ended June 30, 2002, prepared by staff and audited by Moreland and Associates, Certified Public Accountants. Mike White, Controller,gave a presentation on the issued CAFR and briefly described changes contained in this report from prior annual reports due to the implementation of GASB 34. Mike Moreland of Moreland&Associates, Inc., Certified Public Accountants, reported that the District had earned a clean opinion on the audited statements. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. v Minutes of the Finance,Administration and Human Resources Committee Meeting Page 4 November 13, 2002 J. FAHR02-103: Recommend to the Board of Directors to adopt a revised per diem policy for authorized training and travel providing for daily limits approved by the IRS for various locations in the United States. Gary Streed, Director of Finance, briefly reported on the difficulties with the existing per diem policy and described the per diem policy staff would like to implement. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. C. FAHR02-104: Recommend to the Board of Directors to approve Amended and Restated Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System, providing for segregation of a portion of the ARBA funds to a trust fund for the benefit of current and future retirees, in a form approved by General Counsel. Gary Streed, Director of Finance, described current practices with the ARBA funds, and responded to Directors questions. He further advised there would be no additional cost to implement the recommended agreement. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR02-105: R ecommend to the Board of Directors that the books and accounts of Revenue Area 7 be combined with those of the rest of the Orange County Sanitation District, except for Revenue Area 14, and that future revenue, expenses and capital outlays be considered those of the consolidated Orange County Sanitation District effective July 1, 2003. Gary Streed, Director of Finance,gave a brief report describing past practices with the former County Sanitation District No. 7, and responded to Directors' questions regarding funding costs. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. Director Mark Leyes opposed. e. FAHR02-106: Recommend to the Board of Directors to approve the reclassification of eight District employees and nine positions. Lisa Arosteguy, Human Resources Supervisor, gave a brief report on the recommended reclassifications. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. Minutes of the Finance,Administration and Human Resources Committee Meeting Page 5 e November 13, 2002 (11) INFORMATIONAL PRESENTATIONS There were none. (12) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for December 11, 2002 at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:22 p.m. Submitted by. 01 dlz Penny M. C e FAHR Co ittee Secrete GANp.dlalagendaTAHRTAH Minutes%111302 FAHR WnuW .dw t - 1 JY1 EMIY Q I •+Y Ly ��v.uv Y b „E Yil November 20, 2002 MEMORANDA TO: Board of Directors FROM: Bob Ooten Director of Operations & Maintenance SUBJECT: Level of Secondary Treatment and Disinfection Progress Attached you will find data on the progress staff has made and the impact on the final effluent by turning up the level of treatment. Historical trends for final effluent percent of secondary treatment for biochemical oxygen demand (BOD) and total suspended solids (TSS) are shown. In addition, current data on the month's BOD, TSS and disinfection effectiveness is shown on a schematic of the treatment system. The data shows that the increased level of treatment is reducing the final effluent BOD and SS and that the disinfection system is providing significant and consistent bacterial reduction. Additional information has been provided in the General Managers Board letter and staff will be posting this and other data on the effectiveness of the level of treatment increases and disinfection on the Web in the month of December. If you have any comments, questions or would like additional data, please call me at 714-593-7020. RJO:pjm G:twp.dtaWm18101FINALVRJO18OARD LetteBV.M102J02 Board Packet Cover Letter.doc Attachments (2) 0CS0 0 RO,I 9122 0 Fouatal VWW.CA 927284127 0 (714)962-2411 1� Orange County Sanitation District Operational Treatment Levels Revision 11127102 Final Effluent Percent Secondary Treatment 65% Winter 2002 Goal a 64% pma ................................_...._.__...__..........-___----.__""_-_-._..................._E7X..68 Monthly Average 98% as% ._.........._._..__....._.........._..........__.........._.___....____.W%_ .._..... m 56x szx 5p% SI% 1 T" a 51% _ aslc vt 1 Y2. tl1 an I�'m" < p �..�. bx Jul Aug S9 O! Nw�L Dec Jan Feb Mar Apr May Jun Jul mg Sep Ocl 2.1 2W3 Total Suspended Solids (TSS) Biochemical Oxygen Demand (BOD) IN in Final Effluent wm in Final Effluent IN ap 1998 Permit Limit=100 ppm ........................... .— ..... .............._. ..__..._..._. 90 ..................................................._---..---..--- _-------- ----- ------- ap _..._. t n 71 ee 71 M ro ro ap as a n ap 1998 PormS Limit=W ppm 90 al ...e2 et a1 . ... r.... M....as.....aZ... �8....µ_. !� �..... ... ..... 50 _ ___ __ __ ___ S7 b .............................................................._...... . . ............... .... .. ap ..........................._..._........... ................... y 30 Secondary Standard Goal=30 ppm Secondary Standard Goal=30 ppm w ..... .._ -- ---- .. ..... . . _____........ _....__...... 2p ..___- __. ._..._...__..... _... .. .__... .... to ................................................................................. m ............_.._._........_._...._._.....__......__......................................_.......... . p p Jul AN Sep Otl Nw cap Jab IN aln Ap Mq Jul Jb Aug Sep ON Jul Aug Sap ON Nw Dec Jn FM My Ap L1ey Jul Jul JaN Sb Oq ,w ]0g2 2W1 2002 Orange County Sanitation District Operational Treatment Levels Last Fiscal Year 2001-02 Progress to Secondary Standards Ending June 2002 Month: November 2002 47% �.. :. 39% Ocean Pipeline Ocean Pipeline 17.1-7 wafer Dialnfacllon a Mixed Mixed Deahlodnatlon 53% 61% o�s»:�w.lxmn Secondary Final Effluent: Secondary BOD = t: Bacteria Retluction: 99.9%+ Goal: 99.7% Reduction TSS = 50 mg/L Chlorine Level Ocean Discharge Daily Maximum: 0.126 mg/L Permit Limit: Permit Limit— Daily Maximum 1.45 mg/L BOD = 100 mg/L (Average of Eight Samples) TSS = 60 mglL Final Effluent: Final Effluent Goal: BOD= 59 mg/L BOD = 30 mg/L TSS = 37 mg/L TSS = 30 mg/L f t Final Effluent Results Enterococci MS-2 Total Coliforms Fecal Coliforms EnterococcUt00ml by Enterolert Coliphage Date MPN/100mL MPN/100mL by Membrane Filtration MPW100ml PFU/t00mL 8/12/2002 800,000 200,000 6,000 8/13/2002 500,000 30,000 8,000 8/14/2002 500,000 230,000 1,800 8/15/2002 300,000 40,000 1,490 8/16/2002 500,000 80,000 4,800 8/19/2002 300,000 50,000 1,900 8/20/2002 900,000 220,000 4,800 8/21/2002 900,000 900,000 10,000 9,700 8/22/2002 500,000 130,000 5,800 8/23/2002 500,000 140,000 1,600 8/24/2002 300,000 170,000 1,500 8/25/2002 600,000 170,000 1,300 8/26/2002 170,000 80,000 6,200 8/27/2002 900,000 170,000 7,600 8/28/2002 80,000 80,000 2,500 3,200 8129/2002 50,000 8,000 200 8/30/2002 23,000 13,000 345 8/31/2002 300,000 50,000 960 9/1/2002 80,000 80,000 520 9/2/2002 30,000 23,000 460 9/3/2002 $0,000 13,000 560 9/4/2002 80,000 30,000 1,200 9/5/2002 80,000 4,000 220 9/6/2002 >1600000 >1600000 TNTC 977/2002 1,400,000 500,000 16,000 9/8/2002 500,000 240,000 540 9/9/2002 >1600000 1,600,000 >40000 9/10/2002 3,000,000 1,100,000 110,000 9/11/2002 5,000,000 1,100,000 110,000 33,000 9/12/2002 300,000 240,000 --- 5,794 9/13/2002 50,000 11,000 --- 173 9/14/2002 80,000 17,000 --- 428 9/15/2002 50,000 7,000 --- 452 9/18/2002 1,700,000 1,100,000 --- >24192 9/17/2002 110,000 7,000 --- 373 9/18/2002 500,000 50,000 --- 2,987 16,400 9/19/2002 80,000 23,000 --- 1,222 9/20/2002 110,000 17,000 --- 134 9/21/2002 30,000 8,000 --- 216 9/22/2002 50,000 2,000 --- 612 9/23/2002 1,300,000 220,000 --- 6,131 9/24/2002 130,000 130,000 --- 345 9/25/2002 130,000 30,000 --- 1,860 5,200 9/26/2002 30,000 4,000 --- LA 9/27/2002 13,000 4,000 --- 41 9/28/2002 17,000 4,000 --- 107 Final Effluent Results Enterococcl MS-2 Total Coliforms Fecal Coliforms Enterococcl/100ml by Enterolert Coliphage Date MPN/100mL MPN/100mL by Membrane Filtration MPN/100ml PFU/100mL 9/29/2002 30,000 4,000 --- 41 9/30/2002 22,000 4,000 --- 31 10/1/2002 30,000 4,000 --- 74 10/2/2002 23,000 8,000 --- 97 10/3/2002 8,000 <2,000 --- 52 9,200 10/4/2002 24,000 3,000 --- 52 10/5/2002 900,000 110,000 --- 4,884 10/6/2002 30,000 8,000 --- 160 10/7/2002 13,000 3,000 --- 20 10/8/2002 17,000 2,100 --- 85 10/9/2002 28,000 4,000 --- 158 104,000 10/10/2002 50,000 11,000 --- 121 10/11/2002 13,000 3,000 --- 63 10/12/2002 17,000 3,000 --- 160 10/13/2002 30,000 13,000 --- 72 10/14/2002 80,000 5,000 --- 107 10/15/2002 13,000 1,300 --- 98 10/16/2002 1,700 <200 --- 10 10/17/2002 1,300 200 --- 31 10/18/2002 900 70 --- 30 10/19/2002 2,200 140 --- <10 10/20/2002 800 <200 --- <10 10/21/2002 500 20 --- <10 10/22/2002 1,700 500 --- 61 10/23t2002 2,400 300 --- 30 10/24/2002 3,000 800 --- <10 10/25/2002 700 40 --- 20 10/26/2002 2,200 40 --- 10 10/27/2002 5,000 170 --- <10 10/28/2002 800 80 --- 31 10/29/2002 3,000 3,000 --- 52 10/30/2002 3,000 500 --- 393 10/31/2002 5,000 300 --- 20 11/1/2002 3,000 80 --- 20 11/2/2002 >160000 22,000 --- 278 11/3/2002 50,000 1,300 --- 41 11/4/2002 5,000 230 --- 52 11/5/2002 30,000 3,000 --- 63 11/6/2002 17,000 3,000 --- 41 11/72002 1,700 500 --- <10 11/8/2002 5,000 110 --- 10 11/92002 5,000 70 --- 30 11/10/2002 1,100 130 --- 30 11/11/2002 8,000 40 --- 31 11/12/2002 1,700 230 --- 41 11/13/2002 3,400 800 --- 31 Final Effluent Results Enterococci MS-2 Total Colitorms Fecal Coliforms EnterococcV100ml by Enterolert Coliphage Date MPN/100ml- MPN/100mL by Membrane Filtration MPN/100ml PFU/100ml- 11/14/2002 1,400 70 --- 31 11/15/2002 300 20 --- 20 11/18/2002 5,000 70 --- <10 11/17/2002 2,300 130 --- 10 1 Ill 8/2002 3,000 3,000 --- 20 11/19/2002 80 80 --- <10 Note: numbers in bold type are final results LA: Lab Accident ORANGE COUNTY SANITATION DISTRICT gV.7AaD Ara i ez- ,he..: (714)962-2411 November 12, 2002 mailing addrnn P.m Sm,8127 Fountain valley,ca Ms. Janet Y. Hashimoto 9272E-B127 Manager, Monitoring and Assessment Office eminent address: United States Environmental Protection Agency, Region 9 toaira Annual Fountain Valley,CA 75 Hawthorne Street( "R-2 ) 92708-7018 San Francisco, CA 94105 RE: Public Communications and Outreach for Secondary Treatment Implementation nd.mber Ms. Hashimoto: Agencies Thank you for taking the time to visit the Orange County Sanitation District(OCSD) on Cities Wednesday, September 25. At that meeting we discussed our plans for Involving the Mahalm various stakeholders in the planning and implementation of our move to secondary era, treatment standards. OCSD is committed to keeping our stakeholders informed of our even.P,rk progress as we make a timely transition to secondary treatment standards. cypress Fountain Valley Berton In order to ensure and validate OCSD's commitment to a timely transition, a peer review Garden Grave Humington Bench Panel is currently being assembled by the National Water Research Institute (NWRI)to Irene provide an independent, third party review of the process and planning that OCSD staff L.Padme and consultants will soon undertake to determine a practical timetable to achieve Loa he �aam rt� secondary treatment standards.The panel will consit of academics, technical experts Newp.rt Beach and individuals that have practical experience in similar projects of this size and scope. Orange More information on the panelists and their background experience will be made wOr°rean ge sent,Aoa available by NWRI and Its executive director Ron Linsky once that plan has been seal on sconton solidified.We would like to invite your recommendations for experts EPA believes should Amide sit on this panel. Villa Perk limbe Linda Monthly updates regarding the progress toward achieving to secondary treatment C...te a1 ur.age standards will be given to our board of directors through the monthly OCSD steering committee and board of directors meetings. The committee meetings are held In a public ganitary nistmats forum and members of the environmental community regularly attend. In addition, the cn.ta ones. general manager provides updates on progress through monthly informational letters to WO-ol,sty . the board.This letter Is mailed out to the board of directors, city managers and other Water ol.trict. officials and is available on our website at www.orsd.com. Beginning December 1, 2002 OCSD will launch a new and improved Website. Special features were added to the site Irvine Ranch so that the OCSD can more effectively communicate with the public. These include: a general manager's message available online and As email subscription, subscription services for regular topic updates such as secondary treatment plans, biosolids, urban runoff and other topics of interest. 'To Rotes the Public Health and the Environment thmugh Emellence in Wastewater Systems- - I Ms. Janet Y. Hashimoto Page 2 November 12, 2002 Active participation will be needed from all community stakeholders during the process of obtaining a new ocean discharge permit, ramping up secondary treatment capacity, achieving secondary treatment standards and the completion of OCSD's 20-year$1.9 billion Capital Improvement Program. We are continuing to evaluate the best methods of communications among OCSD and our community stakeholder groups and are committed to providing effective and timely information to the public we serve. If you have any questions, please contact me at 714/593-7400 or Sonja Wassgren, OCSD's principal public information specialist, at 714/593-7122. Sincerely, Robert P. Ghirelli, D.Env. Director of Technical Services