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Home My WebLink About2004-11-17 SANI1a/O�ON ORANGE COUNTY SANITATION DISTRICT 9 November 10, 2004 phone: (7141 962-2411 fax: NOTICE OF MEETING (714)962-0356 www.ocsd.com mailingOBo 8127 BOARD OF DIRECTORS PO. Box 8127 Fountain Valley, ORANGE COUNTY SANITATION DISTRICT 92728-8127 street address: 10844 Ellis Avenue Fountain Valley,CA 92706-7018 WEDNESDAY, November 17, 2004 — 7:00 P.M. Member Agencies e DISTRICT'S ADMINISTRATIVE OFFICES Cities 10844 Ellis Avenue Anaheim Fountain Valley, California 92708 Brea Buena Park Cypress Fountain Valley Fullerton Garden Grove The Regular Meeting of the Board of Directors of the Orange County Sanitation Huntington Beach District will be held at the above location, time and date. Irvine La Habra La Palma Los Alamitos y Newport Beach _ Orange ✓w/�' Placentia /� Santa Ana E�yard Secret ry Seal Beach Stanton Tustin Villa Park Yorba Linda County of Orange OMTS COMMITTEE - Wednesday, December 1, 2004 at 5:00 p.m. Sanitary Districts Costa Mesa PDC COMMITTEE - Thursday, December 2, 2004 at 5:00 p.m. Midway City Water Districts FAHR COMMITTEE - Wednesday, December 8, 2004 at 5:00 p.m. GWR SYSTEM STEERING COMMITTEE - Monday, December 13, 2004 at 5:30 p.m. @OCWD STEERING COMMITTEE - Wednesday, December 15, 2004 at 5:00 p.m. io maintain world-class leadership in wastewater and water resource management. BOARD MEETING DATES Board Meeting *December 15, 2004 January 26, 2005 February 23, 2005 March 23, 2005 April 27, 2005 May 25, 2005 June 22, 2005 *July 20, 2005 August 24, 2005 September 28, 2005 October 26, 2005 *November 16, 2005 *Meetings are being held on the third Wednesday of the month HAdeptladminlBSlAgenda12004 Meeting Notices1MN11.2.doc ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE:11/17/04 TIME: 7:00 p.m. 1 � (SIMONIAN) .................... ANDERSON................... (WILSON) ........................ BANKHEAD................... ✓ ,t1 (FRESCHI) ....................... BORTLE ................. ..... (AMBRIZ).......................... CAVECCHE................... —,� (GARCIA) ......................... CHRISTY..................... ✓" _� Al (CRANDALL) .................... COLLINS ......................—,� �✓ 7- (BROADWATER) ............ DALTON....................... el-, (KAWASHIMA) ................. DAVERT...................... �/ &I css- Z (SHAWVER) ................... DONAHUE.....................� (WILSON)......................... DUVALL...................... (DICKINSON) ................... ECKENRODE................. ]' (SCHAFER)...................... FERRYMAN................... ✓" COERPER) ...................... GREEN....................... (POE)................................ JEMPSA...................... (SHEA) (DOW) .............................. MARSHALL.................. CL (HERNANDEZ)................. MC CRACKEN............... (SWAN) ............................ MILLER .........................� ,✓ (BEAUMAN) ..................... MOORE........................ ✓ _� (EPPERSON) ................... NEUGEBAUER.............. (KEENAN) ........................ PIERCY........................ (WEBB) ............................ RIDGEWAY................... ✓ (SMITH, CHUCK) ............. SILVA........................... ✓ d `/ (HERMAN)........................ WALKER....................... ✓ d /� (ANTOS) .......................... YOST .......................... ✓ �/ STAFF: Anderson ✓ L �,,�a,l GLIa t�'�" Beekman Ghirelli Kovac ✓ 7 ttc� i�tie��= _ Kyle udwin Miles ,✓ Ooten Streed ✓ Tomko �✓ OTHERS: Woodruff Nixon 11/17/04 H:\dept\admin\BSOIRECTOR\Directors Roll Call.doc SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT BOARD MEETING NAME ORGANIZATION/FIRM leaseprint) leaseprint) �✓ a 9-z A �Nzc�V v 1141 .411 6�� 444,� f� H:\WP.DTA\ADMIN\BS\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 meeting for distribution. DATE: -1 1 - t-7- 09 AGENDA ITEM NO. NAME: (please print) J-k Vl/, `&/I —L _0— HOME ADDRESS: �'() �� y (number/street) UJ C_�O-) �� (city/zip code) TELEPHONE: (L4 2-fj 14'225` -' o-7� f REPRESENTING: \�\w16 �tJ. (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 g'ven to the Board Secretary prior to the meeting for distribution. DATE: l -7 AGENDA ITEM NO. /* NAME: (please print) 'IV I �� HOME ADDRESS: — �� =''��' (numb- str et) (city/ 'p code) TELEPHONE: REPRESENTING: ` (self/n me 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) HOME ADDRESS: %%�/�/ �- ��✓�'i• � � /i (number/street) (cit�r/zip code)-' TELEPHONE: REPRESENTING: r :; (self/name of organization) k MINUTES OF THE OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE Orange County Sanitation District Wednesday, November 3, 2004— 5:00 P.M. A meeting of the Operations, Maintenance and Technical Services Committee of the Orange County Sanitation District (OCSD)was held on November 3, 2004, in the District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: OMTS Directors Present: Staff Present: Carolyn Cavecche, Chair Bob Ghirelli, Director of Technical Services Anna Piercy, Vice Chair Bob Ooten, Director of Operations & Maintenance Don Bankhead Patrick Miles, Director of Information Technology Doug Davert Nick Arhontes, Manager of Regional Assets and Cathy Green Services Tod Ridgeway Penny Kyle, Committee Secretary Paul Walker Jim Burror Steve Anderson, Board Chair Sonja Wassgren OMTS Directors Absent: Others: James M. Ferryman, Board Vice Chair Phil Luebben (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Cavecche had no report. Minutes of the Operations, Maintenance and Technical Services Committee Page 2 November 3, 2004 (5) REPORT OF THE GENERAL MANAGER The General Manager was not present. (6) CONSENT CALENDAR ITEMS a. The minutes of the October 6, 2004 Operations, Maintenance and Technical Services Committee meeting were approved as drafted and ordered filed. b. OMTSO4-53 Receive and file Technical Services Monthly Report, which focuses on regulatory, biosolids and performance, measures for the Technical Services Department. C. OMTSO4-54 Receive and file Operations & Maintenance Monthly Report, which focuses on compliance, financial data and performance measures for the Operations and Maintenance Department. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 6(a) through (c) under Consent Calendar (7) ACTION ITEMS a. OMTSO4-55 Recommend to the Board of Directors to approve a Memorandum of Understanding South Orange County Wastewater Authority for Phase 1 of the South Orange County Composting Facility for an amount not to exceed $69,637, to be shared equally with South Orange County Wastewater Authority, in a form approved by General Counsel. Jim Burror provided an overview of the project and the initial steps that must be taken before the development of this facility, which would be located in South Orange County. Motion: Moved, seconded and duly carried to recommend approval to the Board of Directors. b. OMTSO4-56 Recommend to the Board of Directors to approve Amendment No. 2 to the Consultant Services Agreement with Brown & Caldwell Consulting, providing for additional consulting services in connection with the Santa Ana Regional Water Quality Control Board's newly adopted Waste Discharge Requirements, for an additional amount of$730,000, to include a $100,000 contingency, increasing the total amount not to exceed $1,430,000, for the time period of January 1, 2005 through December 31, 2005, 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 3, 2004 (8) INFORMATIONAL ITEMS a. OMTSO4-57 Proposed North County Yard Facilities Nick Arhontes, Manager of Regional Assets and Services, reported there has been a need for Operations & Maintenance staff to have a more centralized facilities yard. Currently staff and equipment are based out of Plant 2 in Huntington Beach. The Source Control and Engineering departments have also expressed an interest in basing limited staff in a more centralized location. Staff is looking for a 4 Y2- 5 acre site, and a building of 25,000 square feet, and are working towards refining the costs and needs for the facility. (9) REPORT OF DIRECTOR OF INFORMATION TECHNOLOGY Patrick Miles, Director of Information Technology, reported an update on the District's information system security program and steps taken to have the information system certified by a leading information security firm would be provided at the following month's meeting. Staff has been working on the program for approximately one year, and new policies and procedures would be reviewed by the OMTS Committee. Mr. Miles noted the District has crossed the one millionth e-mail based on spam messages that are received per month, which has increased over 250%for the last three years. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE The Director of Operations and Maintenance had no report. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Bob Ghirelli, Director of Technical Services, reported the District's new ocean discharge permit became effective on October 31, 2004, and would be in effect for five years. The permit is essentially the same as before and includes the addition of full secondary treatment. The District is building facilities to meet secondary treatment standards but most of the facilities will not be completed until 2012. A consent decree has been negotiated with EPA and the State Regional Water Quality Control Board which allows the District until 2012 to meet the secondary treatment requirements with no penalties. A press release will be sent once the consent decree is filed with the courts. (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. Minutes of the Operations, Maintenance and Technical Services Committee Page 4 November 3, 2004 (14) FUTURE MEETING DATES The next Operations, Maintenance and Technical Services Committee meeting is scheduled for December 1, 2004 at 5 p.m. (15) CLOSED SESSION There was no closed session. (16) ADJOURNMENT The Chair declared the meeting adjourned at 5:35 p.m. Submitted by: Penny yle Operations, Mainten a and Technical Services Committee Secretary H:Adeptlagendal0MTS1200411104\110304 OTMS Minutes.doc > a MINUTES OF PLANNING, DESIGN, AND CONSTRUCTION COMMITTEE MEETING Orange County Sanitation District Thursday, November 4, 2004, at 5 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, November 4, 2004, 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: STAFF PRESENT: Directors Present: David Ludwin, Director of Engineering Alice Jempsa, Vice Chair John Linder, Construction Manager Alberta Christy Jim Herberg. Engineering Manager John Collins Matt Smith, Engineering Manager Norm Eckenrode Tod Haynes, Engineering Supervisor Beth Krom Jim Burror, Engineering Supervisor Patsy Marshall Jennifer Cabral, Public Information Specialist Steve Anderson, Board Chair Gail Garrett, Committee Secretary Directors Absent: OTHERS PRESENT: Brian Donahue, Chair Ralph Eberts Paul Yost Jim Ferryman, Board Vice Chair (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Committee Vice Chair Alice Jempsa did not make a report. (5) REPORT OF THE GENERAL MANAGER General Manager was not present. 6 . PDC Committee Minutes Page 2 November 4, 2004 (6) REPORT OF THE DIRECTOR OF ENGINEERING Director of Engineering David Ludwin reported on construction progress at the Bushard Intersections and street restoration, which will be completed end of November. He gave a summary progress report to date. Mr. Ludwin advised that revised submittal for the 108-inch pipe received from the pipe supplier is currently under review by District staff and its consultant. Mr. Ludwin informed that property damage complaints are being reviewed by a third party adjuster, David Morse. A brief summary was presented of overall liquidated damages that have been accruing since March of 2004. Mr. Ludwin informed that in December, staff will be requesting ratification of a unilateral change order for acceptable time delays. Analysis of the dewatedng and vibration study by the geotechnical consultant retained by General Counsel's office is proceeding. The consultant will provide a draft report next week which will be discussed in closed session at the next PDC meeting on December 2"d Beth Krom arrived at 5:25 p.m. Jennifer Cabral, Public Information Specialist, provided an update on the outreach activities for the Bushard project and the 14th and "A" Street Pump Station project. Fact sheets have been provided to schools, homeowners associations, and letters have been distributed to offer one-on-one meetings with residents to address individual concerns. Director Collins questioned whether the Bushard project resumption next year and the Ellis Pump Station construction will coincide. Tod Haynes, Engineering Supervisor, acknowledged that possibility. He also noted that staff is working with the Water District in coordinating their project with ours. Mr. Ludwin reported that the contractor has begun work on the emergency repairs to the SARI line. District staff gave a presentation to the Yorba Linda City Council and, with Director Duvall's support, will obtain the necessary permits. Rip-rap protection of the pipeline will be completed in late December. Staff is working with the Corps of Engineers, County of Orange, California Department of Fish and Game, and has notified the Bicycle Coalition of the project. John Linder, Construction Manager, presented the revised language and clarifications for Construction Change Order definitions. Director Krom noted that the request for language clarification was to identify cost accountability. Directors approved the changes. Alberta Christy arrived at 5:45 p.m. Action Item: Mr. Ludwin will have General Counsel approve the proposed language for change order definitions. (7) REPORT OF GENERAL COUNSEL General Counsel did not give a report. PDC Committee Minutes Page 3 November 4, 2004 (8) CONSENT CALENDAR (Items a-g) a. MOVED, SECONDED AND DULY CARRIED TO: Receive, file, and approve draft minutes of the October 7, 2004 Planning, Design, and Construction Committee Meeting. f. PDC04-89 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to ratify Change Order No. 5 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing a deduction of$308,378, decreasing the total contract amount to $5,198,580. g. PDC04-90 MOVED, SECONDED AND DULY CARRIED TO: Ratify Change Order No. 1 to Gisler-Redhill Trunk Improvements, Reach "A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7- 39; Gisler-Redhill/North Trunk Improvements, Contract No. 7-41; and City of Tustin Project Nos. 6106 and 6151,with ARB, Inc., authorizing an addition of$349,612 and 20 calendar days, increasing the total contract amount to $18,725,611. END OF CONSENT CALENDAR There were no items deleted from Consent Calendar. 9. INFORMATIONAL ITEM (Item a) a. PDC04-97 Future Orange County Sanitation Flow Projections for IRWD and SAWPA. Jim Herberg, Engineering Manager, reported on the OCSD Flow Projections based on service area population projections, and planned discharges from Irvine Ranch Water District (IRWD) and the Santa Ana Watershed Protection Agency(SAWPA), as well as Alternative Flow Assumptions for the year 2020. Mr. Herberg handed out a comparison document demonstrating the four Flow scenarios and Engineering's recommendation for Scenario 3. Director Collins requested that this informational item be moved to the Board as an action item at the November Board meeting. Chairman Anderson concurred. PDC Committee Minutes Page 4 November 4, 2004 10. ACTION ITEMS (items a-fl a. PDC04-91 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to ratify Change Order No. 10 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of$242,360, increasing the total contract amount to $31,911,805. There were questions and discussion regarding item 6 regarding the removal and replacement of old waterlines. These questions were addressed and explained by John Linder. b. PDC04-92 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Professional Services Agreement with Malcolm Pimie, Inc. for preparation of a Preliminary Design Report for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, for an amount not to exceed $2,219,330. C. PDC04-93 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Amendment No. 2 to the Professional Services Agreement with Camp, Dresser& McKee for Rehabilitation of Odor Control Facilities, Job No. J-71-8, providing for modifications to the scope of work for an additional amount of$645,674, increasing the total amount not to exceed $4,220,881. Director Marshall questioned using staff from the same company to conduct the value engineering effort, and suggested hiring independent consultants for future projects. The results of the value engineering will be reported to the PDC Committee at a future meeting. d. PDC04-94 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Amendment No. 7 to the Professional Services Agreement with Boyle Engineering Corporation for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, providing for additional engineering construction support services for an additional amount of $326,509, increasing the total amount not to exceed $2,345,920. e. PDC04-95 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Amendment No. 1 to the Professional Services Agreement with Fluor Enterprises, Inc. for Electrical Equipment Refurbishment and Protection, Job No. SP-81, providing for additional engineering services for an additional amount of$128,549, increasing the total amount not to exceed $214,049. f. PDC04-96 MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to approve Professional Services Agreement with Black &Veatch Corporation to provide an Energy Master Plan for the Treatment Plant Strategic Plan Update, Job No. J-102, for an amount not to exceed $1,894,660. PDC Committee Minutes Page 5 November 4, 2004 Jim Burror introduced Ralph Eberts, Project Manager with Black&Veatch. Chairman Anderson suggested that Southern California Edison should be contacted to determine the level of assistance that could be provided. (11) CLOSED SESSION There was no closed session. (11) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Director Christy announced she would not be attending the December Steering and Board Meetings. (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, December 2, 2004 at 5 p.m. (15) ADJOURNMENT The Chair declared the meeting adjourned at 7:00 p.m. Submitted by: 6'6�- 601A� Gail Garrett PDC Committee Secretary H:1dep11agenda\PDC\PDc Minutes Form.doc f. P r MINUTES OF FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE MEETING Orange County Sanitation District Wednesday, November 10, 2004, 5:00 p.m. A meeting of the Finance, Administration and Human Resources Committee of the Orange County Sanitation District was held on November 10, 2004, 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, Chair Gary Streed, Director of Finance/Treasurer Mike Duvall, Vice Chair Carol Beekman, Director of Communications & Patricia Bortle Administrative Services Bill Dalton Mike White, Controller Shirley McCracken Lisa Arosteguy, Human Resources Supervisor Darryl Miller Ann Sullivan, Human Resources Analyst Joy Neugebauer Dionne Kardos, Public Relations James W. Silva Penny Kyle, Committee Secretary Steve Anderson, Board Chair Lilia Kovac, Assistant Committee Secretary DIRECTORS ABSENT: OTHERS PRESENT: Jim Ferryman, Vice Board Chair Donna Carter Robbynn Lystrup Mike Moreland Nepa Shah (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR The Chair had no report. (5) REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, announced a reception would be held for Wes Bannister at 6:30 p.m. prior to the Board Meeting on November 17`h. He also encouraged directors to attend the Orange County Leadership Symposium that would be held on January 14-16, 2005. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 2 v 1 November 10, 2004 (6) REPORT OF DIRECTOR OF FINANCE/TREASURER Gary Streed, Director of Finance/Treasurer, referred to the Treasurer Report distributed that evening. He reported that rate adjustment hearing notifications have been sent to all permit users. (7) REPORT OF DIRECTOR OF HUMAN RESOURCES The Director of Human Resources representative had no report. (8) REPORT OF DIRECTOR OF COMMUNICATIONS &ADMINISTRATIVE SERVICES Carol Beekman, Director of Communications &Administrative Services, reported on the "Nerissa" christening that was held on November 6t'at the Newport Harbor Nautical Museum. 260 people and five Board members attended the event along with 34 employee volunteers who helped with the event. Lilia Kovac, Assistant Board Secretary, was introduced to the Directors. (9) REPORT OF GENERAL COUNSEL General Counsel was not present. (10) CONSENT CALENDAR ITEMS a. Approve minutes of the October 13, 2004, Finance, Administration and Human Resources Committee meeting, as corrected. b. FAHR04-93 Recommend to the Board of Directors to receive and file Treasurer's Report for the month of October 2004. C. FAHR04-94 Receive and file Certificates of Participation (COP) Monthly Report. d. FAHR04-95 Receive and file Employment Status Report as of October 21, 2004. e. FAHR04-96 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. f. FAHR04-97 Recommend to the Board of Directors to receive and file the Quarterly Investment Management Program Report for the period July 1, 2004 through September 30, 2004. g. FAHR04-98 Recommend to the Board of Directors to receive and file the 2004-05 First Quarter Financial Report for the period ending September 30, 2004. h. FAHR04-99 Recommend to the Board of Directors to receive and file the SWAP Report for the quarter ended September 30, 2004. MOTION: It was moved, seconded and duly carried to approve the recommended actions for items specified as 10(a)through (h) under Consent Calendar. END OF CONSENT CALENDAR t Minutes of the Finance,Administration and Human Resources Committee Meeting Page 3 November 10, 2004 (11) ACTION ITEMS a. FAHR04-100 Recommend to the Board of Directors to: (1)Approve the reclassification of two District employees and one position upgrade; and, (2) Approve the pay range placement of the Director of Communications and Administrative Services. Ann Sullivan, Human Resources Analyst gave a brief report outlining the employee re-classifications and position upgrade. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. b. FAHR04-101 Approve a one-time only non-base building payment for the Director of Technical Services in an amount not to exceed $7,948 for his service as Acting General Manager. Blake Anderson reported that Bob Ghirelli was the acting General Manager for approximately two months and did an extraordinary job. He was recommending the approval of a one-time only non-base building payment for the additional responsibilities. The Directors discussed the calculation to derive to the amount of the payment and expressed concern that the payment was somewhat excessive. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. C. FAHR04-102 Authorize the General Manager to solicit Requests for Proposal and subsequently award a Consultant Services Agreement for Phase 2 of the Corporate Identity and Public Awareness Project, Specification No. CS-2003-16213D, in an amount not to exceed $20,000. Carol Beekman, Director of Communications & Administrative Services introduced Donna Carter and Robbynn Lystrup of Johnson/Ukropina who reviewed the findings for Phase 1 of the Corporate Identity Program. The Directors concluded that the District should not make a change to its name or logo, nor add a tag line, but should develop an identity standards manual at an estimated cost of$5,00047,500. It was then moved, seconded and duly carried to recommend approval to the Board of Directors to proceed with no change in name or logo, no added tag line, and develop an identity standards manual at a cost estimated between $5,000 to $7,5000. Directors also requested that should a tag line be considered during the development of the identity standards, that the item be brought back to the FAHR Committee for consideration. Minutes of the Finance, Administration and Human Resources Committee Meeting Page 4 November 10, 2004 MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. d. FAHR04-103 Recommend to the Board of Directors to receive and file FY 03/04 Comprehensive Annual Financial Report. Mike White, Controller, provided a brief review of the new CAFR. Mike Moreland of Moreland and Associates reported there were no areas of concern discovered during their financial audit. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. (12) INFORMATION PRESENTATIONS a. FAHR04-104 Status and Impact of State Property Tax Shift for 2004-05 and 2005-06 Gary Streed, Director of Finance, reported the expected tax shift would be $16 million each year for two years. The FAHR Committee would be having a discussion on 2005-06 cash flows with the budget assumptions in December. (13) CLOSED SESSION The Committee convened in Closed Session at 6:31 p.m. pursuant to Government Code Section 54957.6 to discuss and consider Agenda Item Nos. 13(a) (1) and (2). 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. A report of the actions taken will be publicly reported at the time the approved action becomes final re Agenda Items Nos. 13(a)(1)and (2). RECONVENE IN REGULAR SESSION: At 7:05 p.m., the Committee reconvened in regular session. (14) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (15) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for December 8, 2004 at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 7:05 p.m. C Minutes of the Finance, Administration and Human Resources Committee Meeting Page 5 ' November 10, 2004 Submitted by: AUX Penny M. kyle FAHR Committee 4cretary H:\dept\agenda\FAHR\FAHR2004\1004\101304 FAHR Minutes.doc Orange County Sanitation District MINUTES BOARD MEETING OCTOBER 27, 2004 sA�rrrar�o o ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes for Board Meeting Page 2 E 10/27/04 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on October 27, 2004, 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 Steve Anderson, Chair Steve Simonian X James M. Ferryman, Vice Chair Arlene Schafer X Don Bankhead Leland Wilson X Patricia Bortle Rich Freschi X Carolyn Cavecche Steve Ambriz X Alberta Christy Mike Garcia X John Collins Larry Crandall X Bill Dalton Bruce Broadwater X Doug Davert Tony Kawashima A Brian Donahue David Shawver X Michael Duvall Keri Lynn Wilson X Norman Z. Eckenrode Judy Dickinson X Cathy Green Gil Coerper X Alice B. Jempsa Marilynn M. Poe X Beth Krom Christina Shea X Patsy Marshall Jim Dow X Shirley McCracken Bob Hernandez X Darryl Miller Peer A. Swan X Roy Moore John Beauman X Joy Neugebauer Grace Epperson X Anna L. Piercy Tim Keenan X Tod Ridgeway Don Webb X Jim Silva Chuck Smith X Paul Walker Lary Herman A Paul Yost Charles Antos STAFF MEMBERS PRESENT: Blake P. Anderson, General Manager; Penny Kyle, Board Secretary; Carol Beekman; Bob Ghirelli; Dave Ludwin; Patrick Miles; Bob Ooten; Gary Streed; Lisa Tomko; Mike Moore; Mike McCarthy; Rose Marsella; Paula Zeller; Mark Kawamoto OTHERS PRESENT: Thomas L. Woodruff, General Counsel; Brad Hogin; Phil Luebben; Don Hughes; Mike Bilyk; Brian Keating; Jim Willett; Kazumi Kuniyasu; Paul Higa; Ray Albert; Allen Shiroma; Art Sikat; Rick Hertel; Greg Woodside Minutes for Board Meeting , Page 3 10/27/04 3. MOVED, SECONDED AND DULY CARRIED: Receive and file minute excerpts from the following re appointment of active and alternate Directors, as follows: City/Agency Active Director Alternate Director Tustin Doug Davert Tony Kawashima PUBLIC COMMENTS Jim Willett, president of The Yakima Company, addressed the Directors requesting the District to honor the biosolids contract currently in effect with his company. General Counsel Tom Woodruff responded to comments made by Mr. Willett explaining the District was not in violation of its existing contract with The Yakima Company. Mr. Woodruff limited his comments regarding this issue due to possible litigation. REPORT OF THE CHAIR Chair Anderson welcomed back Director Don Bankhead from his knee surgery and Blake Anderson from his heart surgery. It was announced that Director Doug Davert was appointed to the OMTS Committee. The calendar for the working committees was reviewed for the month of November. The Cooperative Projects Grants Committee would be held on November 2"d at 11:30 a.m., and the Urban Runoff Ad Hoc Committee was scheduled to meet on Wednesday, December 1s', at 3:00 p.m. It was also noted that due to the Thanksgiving holiday, the Board of Directors regular meeting would be held on Wednesday, November 171h. Chair Anderson also reminded the Directors that the christening ceremony for the District's ocean monitoring vessel, "Nerissa", would be held on November 61' from 10:00 a.m. to 2:00 p.m., at the Newport Harbor Nautical Museum. REPORT OF THE GENERAL MANAGER Blake Anderson, General Manager, commended Bob Ghirelli, Director of Technical Services, for doing an outstanding job as Acting General Manager while he was out on medical leave. It was noted the District was the recipient of two awards: (1) Water Reuse Association 2004 Public Education Program of the Year for the Groundwater Replenishment System presented to Orange County Water District and Orange County Sanitation District; and (2) Environmental Protection Agency—2004 National Special Recognition Clean Water Act Award — Biosolids Exemplary Management with regard to Orange County Sanitation District's environmental management systems that were certified the prior year. Mr. Anderson referred Directors to talking points included in their meeting folder regarding federal funding for secondary treatment as requested by Director Christy the prior month. Bob Ghirelli then recognized employee Mike McCarthy for 25 years of service to the District. Minutes for Board Meeting Page 4 E 10/27/04 REPORT OF THE GENERAL COUNSEL Thomas L. Woodruff, General Counsel, reported the District received 50 claims for damages filed by the same law firm on behalf of property owners for$2 million each in connection with the Bushard Trunk Sewer project. The claims have been tendered to the construction company, Steve Rados, and their insurance carrier for handling. It was noted that a few weeks prior seven claims were submitted and the contractor's insurance company rejected four of them. Two of the claims are for alleged property damage 2.1 miles from the project. Claims will be closely monitored by District's staff to ensure there are no unreasonable rejections. APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held September 22, 2004, be deemed approved, as written. Directors Don Bankhead and Patricia Bortle abstained. 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 09/15/04 09/30/04 Totals $23,643,437.08 $12,735,711.95 Director Dalton abstained from discussion and voting on Warrant No. 64277. Director Green abstained from discussion and voting on Warrant Nos. 65344 and 65389. Director Davert abstained from discussion and voting on Warrant Nos. 65020, 65025, and 65396. Director Eckenrode abstained. Abstentions were pursuant to California Government Code Section 84308. CONSENT CALENDAR 9. a. MOVED, SECONDED AND DULY CARRIED: Receive and file Summons and Complaint, Orange County Transportation Authority v. Orange County Sanitation District, et al, Orange County Superior Court Case No. 04CC09849, re Complaint in Eminent Domain; and authorize the General Counsel to select Special Counsel to appear and defend the interests of the District. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Summons and Complaint, Southern California Edison Company v. Orange County Sanitation District and Steve P. Rados, Inc., Orange County Superior Court Case No. 04WL05251, re Complaint for Damages in connection with the Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4; refer to Contractor and Contractor's Insurer to defend and indemnify the District; and authorize the General Counsel to appear and defend the interests of the District in the event of Contractor's failure to appear and respond to the Complaint within the time required. Minutes for Board Meeting , Page 5 10/27/04 ' C. MOVED, SECONDED AND DULY CARRIED: Approve an "A" Street Pump Station Landscaping, Parking and Easement Agreement with the city of Newport Beach, in connection with Rehabilitation of"A" Street Pump Station, Contract No. 5-52, in a form approved by General Counsel. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. DRAFT STEERING COMMITTEE: A verbal report was presented by Director Anderson, Chair of the Steering Committee, re the October 27, 2004 meeting. Chair Anderson reported the General Manager updated the Committee on his meeting with SAWPA's Acting General Manager, Daniel Cozad. Mr. Cozad was also invited to attend the Steering Committee meeting that evening where he provided remarks to the Committee. Representatives from the Huntington Beach Visitors& Convention Bureau attended the meeting and requested that the District fund an advertising campaign to improve the image of Orange County beaches and water quality. The Steering Committee agreed that Chair Anderson would meet with the mayors of Huntington Beach, Newport Beach and Seal Beach to discuss the matter, and then assign a standing committee for consideration of staff recommendations concerning the issue. Blake Anderson, General Manager, briefed the Committee on the impact of the recent rainstorm. It was also reported that temporary repairs for the SARI line will occur as soon as the flow in the river subsides. The cost will be approximately$635,000. Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order the Steering Committee Minutes for the meeting held on September 22, 2004 to be filed. Non-Consent Calendar No items considered. 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on October 6, 2004 to be filed. OMTS Non-Consent Calendar No items considered. Minutes for Board Meeting Page 6 10/27/04 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Planning, Design and Construction Committee Minutes for the meeting held on October 7, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 1 for Anaerobic Selector Mixing Systems, Job No. SP-74,with DenBoer Engineering and Construction, Inc., authorizing an addition of$25,607 and a time extension of 237 calendar days, increasing the total contract amount to $470,607; and, (2) Accept Anaerobic Selector Mixing Systems, Job No. SP-74, as complete, and approve the Final Closeout Agreement. C. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 15 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$67,937 and 143 calendar days, increasing the total contract amount to $71,377,380. d. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 4 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing an addition of$47,616, increasing the total contract amount to $5,506,958. e. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 1 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3, with Morrow-Meadows Corporation, authorizing an addition of $205,903, increasing the total contract amount to $ 4,917,903. f. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 3 to Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, with J.R. Filanc Construction Company, Inc., authorizing an addition of$123,258, increasing the total contract amount to $33,075,853. g. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 1 to the Professional Services Agreement with SPEC Services, Inc. for Plant No. 1 Plant Water VFD Replacement, Job No. SP-94, providing for additional engineering services, for an additional amount of$26,384.58, increasing the total amount not to exceed $115,863.58. h. MOVED, SECONDED AND DULY CARRIED: (1) Approve time extensions to Cooperative Projects Grant Program contracts with the Cities of Anaheim (Contract Nos. 0202, 0301 and 0302)and Orange (Contract No. 0130); and, (2)Approve Orange County Sanitation District funding for Cooperative Projects for Fiscal Year 2004-05, totaling $2,386,537, as recommended by the Cooperative Projects Grant Committee. Minutes for Board Meeting Page 7 10/27/04 ' i. MOVED, SECONDED AND DULY CARRIED: Approve Professional Services Agreement with Dudek &Associates, Inc. for engineering services for the Rehabilitation of District Siphons, Contract No. 2-68, for an amount not to exceed $987,156. PDC Non-Consent Calendar No items considered. 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on October 13, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Receive and file Treasurer's Report for the month of September 2004. C. MOVED, SECONDED AND DULY CARRIED: Approve SAFETY-POL-402, Workers' Compensation Benefits and Leave Program, as provided for in Resolution No. OCSD 02-5, regarding the District's Injury and Illness Prevention Program Policy. d. MOVED, SECONDED AND DULY CARRIED: Approve SAFETY-POL-404, Early Return To Work Program, 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:. (1)Approve the Agreement to Terminate Collection of Sewer Connection Charges with the City of Westminster for the collection of capital facilities capacity charges, in a form approved by General Counsel; and, (2) Approve the Agreement for Collection of Capital Facilities Capacity Charges with the Midway City Sanitary District, in a form approved by General Counsel. f. MOVED, SECONDED AND DULY CARRIED: (1)Approve a Lease Agreement with Nautical Yacht Sales for the period of 21 months, commencing September 1, 2004 through May 31, 2006, at the rate of$5,000 per month for a portion of the site acquired by the District for the new Rocky Point Pump Station; and, (2)Approve an Office Lease Agreement with John R. Finnell on a month-to-month basis, commencing September 1, 2004, at the rate of$250 per month for a portion of the site acquired by the District for the new Rocky Point Pump Station. Minutes for Board Meeting Page 8 10/27/04 FAHR Non-Consent Calendar No items considered. 15. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Cooperative Committee Minutes for the meetings held on September 13 and 27, and October 11, 2004 to be filed. b. MOVED, SECONDED AND DULY CARRIED: Approve a Professional Services Agreement with Porter Novelli, providing for one year of additional services for the public information and outreach program for the Groundwater Replenishment System, Job No. J-36, for an amount not to exceed $615,000, to be equally cost shared with the Orange County Water District. GWRSSC Non-Consent Calendar No items considered. NON-CONSENT CALENDAR 16. Consideration to adopt Ordinance No. OCSD-25, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Fats, Oils and Grease Control Regulations Applicable to Food Service Establishments: Bob Ghirelli, Director of Technical Services, provided a brief report on comments received from the City of Tustin. Those comments requested the removal of Articles 8 and 9. General Counsel and staff agree those articles do not need to be included in the Ordinance. a. MOVED, SECONDED AND DULY CARRIED: Read Ordinance No. OCSD-25 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND DULY CARRIED: Introduce Ordinance No. OCSD-25, and pass to second reading and public hearing on November 17, 2004. 17. Consideration to adopt Ordinance No. OCSD-24, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Revised Table G re Permittee Charges for Use and Reaffirming All Other Charges: "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges; Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-22". Minutes for Board Meeting 1 Page 9 10/27/04 ' Public comments were received from Brian Keating of Kimberly Clark; Allen Shiroma of Jazz Semiconductor; Rick Hertel of House Foods; and Mike Bilyk of Vanlaw Food Products. They expressed concern over the increased rates their businesses would need to pay due to the revised rate structure. Gary Streed, Director of Finance, provided a brief report on the need for the Ordinance which incorporates a corrected calculation to assess the user fees for industries. Directors entered into lengthy discussion regarding the impact of the fees to local businesses and the commitment to move to full secondary treatment. a. MOVED, SECONDED AND DULY CARRIED: Read Ordinance No. OCSD-24 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND DULY CARRIED: Introduce Ordinance No. OCSD-24, and pass to second reading and public hearing on November 17, 2004. Directors Bankhead; Bortle; Christy; Dalton; Eckenrode; Marshall; and Walker opposed. 18. Dave Ludwin, Director of Engineering, requested that the cost for emergency repairs of the Santa Ana River Interceptor be amended to $635,000. It was noted that SAWPA is obligated to pay 76% of the costs for emergency repair. Some Directors expressed concerned that the need for emergency repairs was not disclosed earlier. MOVED, SECONDED AND DULY CARRIED: Ratify the use of the General Manager's emergency purchasing authority pursuant to Resolution No. OCSD 04-08, to take actions necessary for the Emergency Repair of the Santa Ana River Interceptor, Contract No. 2-41-3, in an amount not to exceed $635,000. 19. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9 AND 54956.8: The Board convened in closed session at 8:40 p.m. pursuant to Government Code Sections 56956.9 and 54956.8. 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 actions were taken re Agenda Item Nos. 19(a)(1), (2) and (3). RECONVENE IN REGULAR SESSION: At 8:59 p.m., the Board reconvened in regular session. ADJOURNMENT: The Chair declared the meeting adjourned at 9:00 p.m. Penny M. 1414k Secretary oq the Boa of Directors of Orange County Sanitation District HAdeptladmin\BS\Minutes1102704 minutes.doc Claims Paid From 09/01/04 to 09/15/04 Warrant No. Vendor Amount Description Accounts Payable-Warrants 64782 Southern California Edison $ 70,809.22 Power 64783 Airgas Safety,Inc. 1,523.61 Safety Supplies 64784 Alan Jeffery 745.75 Reconciliation User Fee Refund Program 64785 American Airlines 3,531.00 Travel Service 64786 American Chemical Society 264.00 Membership 64787 American Society for Quality 109.00 Membership 64788 Aquarium Doctor 105.44 Human Resources Aquarium Service 64789 American Telephone&Telegraph Corp. 1,604.26 Telephone Conference Services 64790 American Telephone&Telegraph Corp. 634.62 Telephone Service 64791 Bell Pipe&Supply Co. 562.59 Piping Supplies 64792 BMC:Business Machines Consultants,Inc 1,838.72 (1)Stapler/Slacker 64793 City of Tustin 631.25 Water Use 64794 Court Order 150.00 Wage Garnishment 64795 Compressor Components of California 15,513.71 Valves 64796 Consolidated Elect.Distributors,Inc. 8.13 Electrical Supplies 64797 Consumers Pipe&Supply Co. 840.19 Plumbing Supplies 64798 Cooper Energy Services 23,544.37 Engine Supplies 64799 County of Orange 182.14 Wage Garnishment 64800 Court Trustee 69.12 Wage Garnishment 64801 Danka Office Imaging 151.81 HP LaserJet Printer Repairs&Maint. 64802 Department of Child Support Services 188.50 Wage Garnishment 64803 DHL Express(USA),Inc. 18.80 Freight Services 64804 Employee Benefits Specialists,Inc. 9,688.15 Reimbursed Prepaid Employee Medical&Dependent Care 64805 Court Order 445.00 Wage Garnishment 64806 Executive Software 1,150.62 Software Maint.Agreement 64807 EDT Aktiengesellschaft 22,500.00 Mechanical Parts&Supplies 64808 FedEx Corporation 183.82 Freight Services 64809 Fisher Scientific 118.81 Lab Supplies 64810 Franchise Tax Board 50.00 Wage Garnishment 64811 Fry's Electronics 293.02 Computer Supplies 64812 G.E.Modular Space 377.13 Field Office Trailer at PII.1-Additional Costs 64B13 GBC(General Binding Corp) 47.47 Lab Parts&Supplies 64814 Haestad Methods 1,155.00 Software&Support 64815 Harbour Engineering Group 6,158.06 Impeller Liners 64816 City of Huntington Beach 17,962.62 Water Use 64817 Industrial Metal Supply 76.72 Metal 64818 Internal Revenue Service 300.00 Wage Garnishment 64819 Internal Revenue Service 200.00 Wage Gamishment 64820 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,890.54 Dues Deduction 64821 Kelly Paper 104.54 Paper 64822 MassMutual Michel Financial Group 1,302.07 Executive Disability Plan Premium 64823 McMaster-Carr Supply Co. 1.110.63 Mechanical Parts,Maintenance Materials&Tools 64824 Midway Mfg.&Machining Co. 8,526.38 Belt Press Repairs&Maintenance Service 64825 Court Order 225.00 Wage Garnishment 64826 National Bond&Trust 2.439.20 U.S.Savings Bonds Payroll Deductions 64827 City of Newport Beach 44.04 Water Use 64828 Orange Fluid System Technologies,Inc. 713.68 Plumbing Parts&Supplies 64829 Orco Construction Supply 142.76 Marking Paint&Tools H:ldeptT:n12101CRANEIFAHRIFAHR20041SEP71Claims Paid Report-091504.xis EXHIBIT A e MO/?c Page 1 of 9 912en004 Claims Paid From 09101/04 to 09/15/04 Warrant No. Vendor Amount Description 64830 OCEA 598.98 Dues Deduction 64831 Court Order 40.00 Wage Garnishment 64832 Parker Hannifin Corporation 756.71 Mechanical Parts&Supplies 64833 Court Order 296.00 Wage Garnishment 64834 Peace Officers Council of CA 1,584.00 Dues Deduction 64835 PenValve 18.99 Plumbing Parts&Supplies 64836 Primary Source Office Furnishings,Inc. 1,207.88 Office Supplies 64837 Pumping Solutions,Inc. 413.28 Pump 64838 Sancon Engineering,Inc. 15,545.00 Construction-Manhole Rehabilitation Program 64839 Santa Ana River Flood Protection Agency 1,400.00 Membership 64840 Smardan Supply Company 65.35 Plumbing Supplies 64841 Court Order 721.50 Wage Garnishment 64842 Southern Counties Lubricants 2,489.03 Hydraulic Oil 64843 Sparktetts 1,368.99 Drinking Water/Cooler Rentals 64844 Spex Certiprep,Inc. 1,092.17 Lab Supplies 64845 SBC 975.18 Telephone Services 64846 SKC-West,Inc. 1,255.29 Lab Parts&Supplies 64847 SPX Valves&Control 3,378.19 Valves 64848 Rand McNally Map&Travel Store 9,923.78 GIS Database&Map Viewer Software 64849 Thompson Industrial Supply,Inc. 2,441.61 Mechanical Supplies 64850 United Parcel Service 1,058.11 Parcel Services 64851 United Way 245.00 Employee Contributions 64852 US Equipment Co.,Inc. 1,082.04 Air Compressor 64853 Verizon 61.29 Telephone Service 64854 Verizon California 356.10 Telephone Services 64855 Sonja A.Wassgren 210.00 Meeting/Training Expense Reimbursement 64856 Wastewater Technology Trainers 350.00 Training Registration 64857 Western Tech Service Company 1,633.80 Chemicals&Detergents 64858 WEF 278.00 Membership-Water Environment Federation 64859 Court Order 597.50 Wage Garnishment 64860 Marc A.Brown 420.48 Meeting/Training Expense Reimbursement 64861 James L.Burror 131.00 Meeting/Training Expense Reimbursement 64862 Deirdre E.Hunter 365.40 MeetinglTraining Expense Reimbursement 64863 Michael D.Moore 220.00 Meeting/training Expense Reimbursement 64864 Adam A.Nazaroff 105.35 MeetinglTraining Expense Reimbursement 64865 Quynh D.Nguyen 512.75 MeetinglTraining Expense Reimbursement 64866 Fred J.O'Brien 889.07 Meeting/Training Expense Reimbursement 64867 Doug Rulison 210.30 Meeting/Training Expense Reimbursement 64868 Richard E.Schlegel,Jr. 751.43 Meeting/Training Expense Reimbursement 64869 Ann Tobin 131.00 Meeting/Training Expense Reimbursement 64870 Edward M.Torres 367.12 Meeting/Training Expense Reimbursement 64871 Charles F.Winsor 527.59 Meeting/Training Expense Reimbursement 64872 California Dept.of Fish and Game 127.25 Permit Fee-Stream/Lake Alteration Agrmt.for Malnt.Access to Santa Ana River Bed 64873 ADS Environmental Services,Inc. 47,917.50 Professional Services J-73-2 64874 AKM Consulting Engineers 25,297.31 Professional Services 7-39 64875 Black&Veatch Corporation 644,835.33 Engineering Services P1-76,J-71-3,P1-102&J-77 64876 BMC:Business Machines Consultants,Inc. 36,462.71 (1)Multifunctional Copier&Stapler/Stacker,Software,Supplies&Toner 64877 Carollo Engineers 463.422.37 Professional Services P2-66 64878 CH2MHill 49,737.82 Engineering Services J-40-7 H:IdeptUlnl2101CRANEIFAHRIFAHR2004lSEPTICIafms Paid Report-091504.xis EXHIBIT A fln121011c Page 2 of 9 9/28/2004 Claims Paid From 09/01/04 to 09/15104 Warrant No. Vendor Amount Description 64879 GHD,L.L.C. 58.155.00 Professional Services-Asset Management Program 64880 IPMC Go Parsons 882,034.00 Professional Services-Integrated Program Management 64881 Kaiser Foundation Health Plan 58.840.96 Medical Insurance Premium 64882 Kemiron Companies,Inc. 98,020.32 Ferric Chloride MO 9-27-95 64883 Lee&Ro,Inc. 60.864.74 Professional Services P2-47-3&5-52 64884 MWH Americas,Inc. 125,530.59 Professional Services P2-74 64885 NWRI National Water Research Institute 50,000.00 Membership 64886 Parsons Water&Infrastructure,Inc. 29,413.45 Professional Services J-35-1 64887 Pioneer Americas,Inc. 77,940.59 Sodium Hypochlorite 64888 Polydyne,Inc. 53,781.05 Cationlc Polymer MO 3-11-92 64889 SPEC Services,Inc. 72,525.96 Engineering Services J-83&J-33-1 64890 Tetra Tech,Inc. 48,654.15 Professional Services 7-37 64891 Tule Ranch/Magan Farms 159,569.71 Residuals Removal MO 3-29-95 64892 U.S.Peroxide,L.L.C. 67,121.54 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 64893 Mike PrIlch&Sons 118,110.59 Construction 6-13-3 64894 Steve P.Rados,Inc. 447,028.20 Construction 1-2-4 64895 Union Bank of California 49,669.80 Construction 1-2-4,Retention 64896 Abrasive Engineering Tool&Equip. 25.78 Repair&Maintenance Material 64897 Acoustical Material Services 805.29 Ceiling Tile 64898 Adamson Industries 1,547.72 Lab Parts&Supplies 64899 Airco Filter Service 89.41 Oil Filters 64900 Airgas Safety,Inc. 411.39 Safety Supplies 64901 American Fildelity Assurance Company 38.50 Employee Cancer Insurance 64902 American Machinery&Blade,Inc. 136.44 Saw Blades 64903 Analytical Products Group,Inc. 695.00 Lab Parts&Supplies 64904 Appliance Specialists 75.00 Dishwasher Repairs-Board Room Kitchen 64905 Ashbrook Corporation 2,241.36 Mechanical Parts&Supplies 64906 Aspen Publishers,Inc. 252.30 Subscription 64907 Piers Clark-Atkins Water 2,320.00 Engineering/Lab Testing-Anaerobic Baffled Reactor Pilot Plant 64908 Awards&Trophies Company 28.61 Plaques&Awards 64909 ACS Hydraulics,Inc. 794.62 Motor Repairs 64910 AT&T Universal Biller 5,791.67 Telephone Service 64911 AWSI 133.00 Department of Transportation Program Management&Testing 64912 Baker Tanks 13,005.00 Tank Rentals 64913 Bar Tech Telecom,Incorporated 6,683.93 Telephone Equipment Maint.&Service 64914 Barco Products Company 95.40 Parking Lot Safety Equipment,Supplies&Hardware 64915 Basic Chemical Solutions,L.L.C. 12,105.33 Sodium Blsulfte&Sodium Hydroxide 64916 BioMerieux Vilek,Inc. 1,079.00 Lab Supplies 64917 Boise Workspace 2.197.27 Modifications to Workstations-Environmental Compliance&Monitoring Div. 64918 Brinderson 404.00 Professional Services P2-79 64919 BEC-Building Electronic Controls,Inc. 303.32 Fire Alarm System Maintenance,Repair&Quarterly Inspection 64920 California Hazardous Services,Inc. 4,050.00 Filter&Transfer Diesel Fuel from Baker Tanks to UST 64921 Cambridge Isotope Labs 1,109.03 Lab Parts&Supplies 64922 Cameron Welding Supply 72.19 Welding Supplies 64923 Carl Warren&Co. 299.01 Insurance Claims Administrator 64924 Casual Gourmet 117.72 Meeting Expenses 64925 Cingular Wireless Equipment 36.19 Equipment&Tax on Free Phones 64926 Cole-Parmer Instrument Co. 455.81 Tubing 64927 Columbia Analytical Services,Inc. 870.00 Analyses of Wastewater,Industrial Wastewater&Biosolids H:Weptlfin12104CRANEIFAHRIFAHR2004%SEPTIClatms Pald Report-091504.xis EXHIBIT A finr2101tc Page 3 of 9 9/2812004 Claims Paid From 09/01/04 to 09/15/04 Warrant No. Vendor Amount Description 64928 Consumers Pipe&Supply Co. 1,357.60 Plumbing Supplies 64929 Coolant Management Services 742.21 Drilling&Cutting Fluid 64930 Cooper Cameron Corporation 379.80 Engine Supplies 64931 Corporate Express 2,809.56 Office Supplies 64932 County Wholesale Electric Co. 189.73 Electrical Parts&Supplies 64933 Cummins Cal Pacific,Inc. 1.907.15 Industrial Tank Heater 64934 California Special Districts Association 275.00 Training Registration 64935 Daniel Environmental,L.L.C. 8,620.00 Installation of Zero Leakage Damper 64936 Dapper Tire Co. 213.12 Truck Tires 64937 David's Tree Service 14,040.00 Tree Maint.Service 64938 Del Mar Analytical 1,994.00 Analysis of Biosolids and Wastewater 64939 Dharma Consulting 15,725.00 Professional Services-Strategic Planning&EMT Development 64940 Dionex Corporation 343.54 Lab Parts&Supplies 64941 Dunn-Edwards Corporation 145.95 Paint Supplies 64942 DLT Solutions,Inc. 7,012.37 Map Subscription&Web Support 64943 Eagle Aerial Imaging 9,394.25 Aerials on DVD&Software License 64944 Enchanter,Inc. 3,600.00 Ocean Monitoring&Outfall Inspection&Maintenance 64945 Environmental Engineering&Contracting 8,000.00 Prof.Serv.-Industrial Wastewater Operator Training&Follow-Up Audits 64946 Equapac 1,800.49 Hydrochloric Acid 64947 Fisher Scientific Company,L.L.C. 4,486.49 Lab Parts&Supplies 64948 Flo-Systems,Inc. 2,419.22 Pump Supplies 64949 Foodcraft Coffee&Refreshment Services 260.62 Meeting Supplies 64950 Fortis Benefits Insurance Company 24,919.59 Long-Term&Short-Tenn Disability Ins.Premium 64951 Fountain Valley Paints,Inc. 90.78 Paint Supplies 64952 Franklin Covey 668.86 Office Supplies 64953 G.E.Supply 1,022.15 Drip Proof Motor 64954 Ganahl Lumber Company 326.49 Lumber/Hardware 64955 Garratt-Callahan Company 294.16 Chemicals 64956 Giedich-Mitchell,Inc. 1,268.17 Pump Parts&Supplies 64957 Grainger,Inc. 633.81 Mechanical Parts,Supplies&Tools 64958 Great Western Sanitary Supplies 53.01 Janitorial Supplies 64959 Hach c/o Penton Industries 2,253.83 Lab&Inst.Parts&Supplies 64960 Harold Primrose Ice 74.00 Ice For Samples 64961 Harrington Industrial Plastics,Inc. 4,491.68 Plumbing Supplies 64962 High Impact Priority Training 510.00 On-Site Forklift Training 64963 Hill Brothers 20,064.02 Chemicals-Odor&Corrosion Control-Newport Trunkline 64964 History Associates,Inc. 4.887.34 Professional Services-Study of Records,Photographic Materials&Reports 64965 Hoerbiger Service,Inc. 222.01 Compressor Parts 64966 Home Depot 199.79 Misc.Repair&Maintenance Material 64967 Hub Auto Supply 516.33 Vehicle Parts&Supplies 64968 HDR Engineering,Inc. 6,025.61 Construction P2-82 64969 1.D.Industries,Inc. 102.00 Mechanical Parts&Supplies 64970 Industrial Distribution Group 1,558.04 Tools 64971 Industrial Threaded Products,Inc. 3,160.93 Fasteners 64972 Irvine Ranch Water District 3.90 Water Use 64973 ISA 2,520.00 Ins.&Elec.Maint.Div.Meeting Registration(Intn'I.Assoc.for Meas.&Control) 64974 ISEC,Inc. 4,045.00 Lab Parts&Supplies 64975 J&L Industrial Supply 517.20 Tools 64976 Jay's Catering 156.29 Meeting Expenses H:ldepllM121(1CRANEIFAHRIFAHR20041SEPnClaims Paid Report-091504.)ds EXHIBIT A fin1210nc Page 4 of 9 928/2004 y � Claims Paid From 09101/04 to 09115104 Warrant No. Vendor Amount Description 64977 John Bell Pool Service 310.00 Maintenance Services-Admin Bldg.Atrium Pond 64978 JWC Environmental 9,897.92 Upgrade Muffin Monster Grinder for Digester No.11 64979 Karcher Insulation,Inc. 378.48 Repair Boiler Insulation On Boiler No.2 64980 Kent Fluid Power Div.of AIT 102.55 Electrical Parts&Supplies 64981 Lab Safety Supply,Inc. 57.59 Lab Parts&Supplies 64982 La Motte Chemical Products 96.88 Lab Parts&Supplies 64983 Maintenance Technology Corp. 516.90 Mechanical Supplies 64984 Managed Health Network 950.94 Employees Assistance Program 64985 McJunkin Corporation 9,417.36 Mechanical Parts&Supplies 64986 McKenna Engineering&Equipment Co. 2,354.71 Mechanical Parts&Supplies 64987 McMaster-Carr Supply Co. 694.93 Mechanical Parts,Supplies&Tools 64988 Megger 1,165.23 Software 64989 Milltronics,Inc. 4,185.73 Electrical Supplies 64990 Mitchell Instrument Co. 335.71 Instrument Parts&Supplies 64991 MARMAC Field Services,Inc. 14,911.00 Professional Services P1-92 64992 National Plant Services,Inc. 440.00 Vacuum Truck Services 64993 Neal Supply Co. 5.50 Plumbing Supplies 64994 Ninyo&Moore Corporate Accounting 17.340.89 Professional Services-Materials Testing,Inspection&Geotechnical Engrg. 64995 The Norco Companies 180.48 Mail Delivery Service 64996 Oxygen Service Company 2,502.92 Specialty Gases 64997 OCB Reprographics 3,869.92 Printing Service-MO 1/26/00 64998 P.L.Hawn Company,Inc. 3,303.97 Electrical Supplies 64999 Pacific Blue Micro 9,854.27 CISCO Software Upgrade,SMARTNET Warranty&Phone Support 65000 Pacific Mechanical Supply 794.28 Plumbing Supplies 65001 PaintJob.00m 2,975.00 Paint Supplies 65002 Parker Supply Company 2,584.04 Mechanical Parts&Supplies 65003 Parkhouse Tire,Inc. 355.11 Tires 65004 Paul Pitt 5,054.43 Professional Services SP-74 65005 Peerless Wiping Materials Co. 560.30 Janitorial Supplies 65006 Perma Pure,Inc. 382.84 Filter 65007 Pre-Paid Legal Services,Inc. 433.55 Employee Legal Service Insurance Premium 65008 Primary Source Office Furnishings,Inc. 3,622.07 Office Furniture-Cubicle Panels 65009 Profit Techniques,Inc. 1,562.50 Professional Services-O&M Manager Coaching 65010 PCG Industries 3.175.00 Repair&Maintenance Service-Machine&Metal Spray Work 65011 PCS Express Inc. 122.00 Courier Service 65012 QAir California-Div.Pump Engineering 243.64 Filters 65013 Quinn Power System Assoc. 233.65 Hose 65014 R&R Instrumentation,Inc. 290.69 Instrument Supplies 65015 Red Valve Company,Inc. 653.63 Mechanical Supplies 65016 Reliastar 9,993.60 Employee Basic Life&Managers'Insurance Premiums 65017 Ricoh Business System 1,623.90 Color Copier Lease 65018 Rite In The Rain 236.71 Lab Parts&Supplies 65019 Rotork Controls,Inc. 2,542.62 Motor Valve 65020 RBF Engineers 18,353.63 Engineering Services 2-24-1,7-22-1 &7-38 65021 Safety Center,Inc. 600.00 Training Registration 65022 Sartorius Corporation 198.00 Lab Equipment Service 65023 Schwing America.Inc. 2,362.57 Pump Supplies 65024 Scottel Voice&Data Inc. 2,284.80 Telephone System Maintenance 65025 Seaventures 5,550.00 Ocean Monitoring Vessel H:ldept\Pn\2101CRANE\FAHRTAHR20041SEPT\Claims Paid Report-091504.xls EXHIBIT A firdMflc Page 5 of 9 9/2812004 Claims Paid From 09/01/04 to 09/15/04 Warrant No. Vendor Amount Description 65026 Shamrock Supply Co.,Inc. 1.502.97 Janitorial Supplies 65027 Shortridge Instruments,Inc. 59.41 Instrument Parts&Supplies 65028 Shureluck Sales&Engineering 1,136.93 Mechanical Parts&Supplies 65029 Sigma-Aldrich,Inc. 677.59 Lab Parts&Supplies 65030 Smardan Supply Company-Fountain Valley 23.11 Plumbing Supplies 65031 Smith Pipe&Supply 54.44 Mechanical Parts&Supplies 65032 Southern California Water 78.79 Water Use 65033 Southern Counties Lubricants 2,678.67 Engine Oil 65034 Sperling Instruments,Inc. 4,202.42 Flow Meter 65035 Specialized Environmental,Inc. 11,682.00 Construction 7-23-1 65036 Stanley Steamer International,Inc. 351.45 Carpet Cleaning Services 65037 Summit Steel 1,284.63 Metal 65038 Sunset Industrial Parts 605.78 Mechanical Supplies 65039 Super Power Products 775.80 Janitorial Supplies 65040 SBC 6,169.00 Telephone Services 65041 SCWMF 80.00 Meeting Registration-Environmental Compliance&Monitoring 65042 SPX Valves&Control 4,322.18 Valves 65043 Teletrac,Inc. 245.00 Monthly Air-Time Service Fee&Software/Hardware Maint.for Vehicle Tracking Sys. 65044 The Walking Man,Inc. 525.00 Public Notice Printing/Distribution-7-23-1 65045 Thomas V.Gerlinger 500.00 Lab Analyses 65046 Thompson Industrial Supply,Inc. 5,013.35 Mechanical Parts&Supplies 65047 Traffic Control Service,Inc. 283.38 Traffic Safety Equipment Rental 65048 Transcat 462.44 Electrical Supplies 65049 Tri-State Seminar On-the-River 360.00 O&M Meeting Registration 65050 Tropical Plaza Nursery,Inc. 3,635.00 Contract Groundskeeping MO 5-11-94 65051 Truck&Auto Supply,Inc. 23.08 Automotive Supplies 65052 TMV Systems Engineering,Inc. 13,781.25 Software Programming Services 65053 United States Postal Service 5.000.00 Postage 65054 Univar USA 653.42 Chlorine 65055 Urban Alternatives 7,636.00 Professional Services-Community Relations&Coaching Support 65056 UC Regents 295.00 Training Registration 65057 Varian Associates,Inc. 818.29 MS Workstation Upgrade 65058 Verizon California 792.95 Telephone Services 65059 Vision Service Plan-(CA) 9,507.60 Vision Service Premium 65060 Vossler&Company 196.35 Mechanical Supplies 65061 VWR Scientific Products Corporation 5,400.97 Lab Parts&Supplies 65062 The Wackenhut Corporation 5,761.59 Security Guards 65063 Waxie Sanitary Supply 148.73 Janitorial Supplies 65064 West-Lite Supply Company,Inc. 553.84 Electrical Supplies 65065 Weston Solutions,Inc. 12,600.00 Lab Analyses of Benthic Infaunal for Permit Required for Core Ocean Monitoring Program 65066 Xerox Corporation 44.77 Copier Leases 65067 Patrick B.Carnahan 645.41 Meeting/Training Expense Reimbursement 65068 Terry W.Krie 156.88 Meeting/Training Expense Reimbursement 65069 Deborah L.Lindel 549.90 Meeting/Training Expense Reimbursement 65070 Umesh N.Murthy 150.00 Meeting/Training Expense Reimbursement 65071 Edward M.Torres 532.89 Meeting/Training Expense Reimbursement 65072 David A.Usher 46.00 MeetingrTraining Expense Reimbursement 65073 CWEA-SARBS,Inc. 1,350.00 Training Registration 65074 Kavlokis,John 2.327.31 Employee Computer Loan Program H:ldeptUn1210lCRANEIFAHRIFAHR20041SEP"RClaims Paid Report-091504.4s EXHIBIT A finl210nc Page 6 of 9 9128r2oo4 1 I Claims Paid From 09101/04 to 09/15/04 Warrant No. Vendor Amount Description 65075 Orange County Sanitation District 952.26 Petty Cash Reimb. 65076 ARCS Foundation,Inc. 1,400.00 Technical Services&General Mgml.Admin.Meeting Registration 65077 HDR Engineering,Inc. 560.00 Professional Services SP-74 65078 American Express 47.879.03 Purchasing Card Program,Misc.Supplies&Services 65079 Dell Marketing,L.P. 29,724.72 (25)Desktop Computers 65080 Delta Dental 55,844.35 Dental Insurance Plan 65081 Orange County Water District 14,765,933.10 Joint GWRS Project J-36 65082 UBS Financial Services,Inc. 37,716.39 Remarketing Fee-Series 2000 A&B Refunding Certificates of Participation 65083 Orange County Sanitation District 25,096.26 Worker's Comp.Reimb. 65084 Ac roburr,Inc.#2 219.78 Reconciliation User Fee Refund Program 65085 Air Industries Corporation 1,444.14 Reconciliation User Fee Refund Program 65086 Airgas Safety,Inc. 5,939.58 Safety Supplies 65087 Amerimax Building Products,Inc. 3,598.93 Reconciliation User Fee Refund Program 65088 Anaheim Extrusion Co.,Inc. 6,034.82 Reconciliation User Fee Refund Program 65089 Anaheim General Hospital 11,610.65 Reconciliation User Fee Refund Program 65090 Aurora Pictures,Inc. 674,00 Safety Training Materials-Video 65091 APW Enclosure Systems 16,591.39 Reconciliation User Fee Refund Program 65092 APW Enclosure Systems,L.L.C. 5,985.15 Reconciliation User Fee Refund Program 65093 ARO Services 1,083.09 Reconciliation User Fee Refund Program 65094 American Telephone&Telegraph Corp. 184.78 Telephone Service 65095 Bruce A.Chapman 56.00 Meeting/Training Expense Reimbursement 65096 Circuit Tech,Inc. 299.79 Reconciliation User Fee Refund Program 65097 City of Brea-Water Division 1,002.00 Reconciliation User Fee Refund Program 65098 City of Stanton 1,212.00 Reconciliation User Fee Refund Program 65099 City of Yorba Linda 487.60 Reconciliation User Fee Refund Program 65100 Court Order 150.00 Wage Garnishment 65101 Consolidated Elect.Distributors,Inc. 703.37 Electrical Supplies 65102 Consumers Pipe&Supply Co. 535.97 Plumbing Supplies 65103 County of Orange 182.14 Wage Garnishment 65104 Court Trustee 69.12 Wage Garnishment 65105 Cytec Industries,Inc. 240.54 Anionic Polymer Spec.No.9798-18 65106 Department of Child Support Services 188.50 Wage Garnishment 65107 Don Wolf&Associates,Inc. 12.176.02 Instrument-Emissions Analyzer 65108 Edwards Lifescience,L.L.C. 6,092.75 Reconciliation User Fee Refund Program 65109 Employee Benefits Specialists,Inc. 9,773.15 Reimbursed Prepaid Employee Medical&Dependent Care 65110 Employers Group 7,400.00 Employee Assistance Program 65111 Court Order 445.00 Wage Garnishment 65112 Exxon Mobil Corp.#18-G6R 26.64 Reconciliation User Fee Refund Program 65113 FedEx Corporation 190.88 Freight Services 65114 Fisher Scientific Company,L.L.C. 862.43 Lab Supplies 65115 Fitch,Inc. 3,000.00 Annual Surveillance Fee for Series 2000 A&B Certificates of Participation 65116 Franchise Tax Board 50.00 Wage Garnishment 65117 Fry's Electronics 59.24 Computer Supplies 65118 City of Fullerton 1,025.00 Water Use 65119 Gayle Balazs 114.00 Claim Settlement 65120 Graphic Packaging Corp 255.37 Reconciliation User Fee Refund Program 65121 Hagemeyer North America 3,486.12 Prescription Safety Glasses 65122 Deirdre E.Hunter 201.11 Registration 65123 Industrial Threaded Products,Inc. 21.17 Fasteners H:\depllfn\210%CRANE\FAHRIFAHR20041SEPT\Claims Pa!d Report-091504.x!s EXHIBIT A Bn1210!!c Page 7 of 9 M812004 Claims Paid From 09101/04 to 09/15/04 Warrant No. Vendor Amount Description 65124 Internal Revenue Service 300.00 Wage Garnishment 65125 Internal Revenue Service 200.00 Wage Garnishment 65126 Intl.Union of Oper.Eng AFL-CIO Local 501 3,888.98 Dues Deduction 65127 J&B Auto Parts 125.90 Auto Parts&Supplies 65128 James'Tex"Climie 1,170.00 Marine Consulting-Ocean Monitoring Vessel Construction Inspection 65129 K.P.Lindstrom,Inc. 4,847.00 Environmental Consulting Services MO 12-9-90 65130 Mac&Associates,An Industrial Dist.Co 1,211.16 Check Valve 65131 Material Damage Appraisal of Long Beach 135.38 Vehicle Damage Appraisal 65132 McMaster-Carr Supply Co. 2,896.60 Mechanical Parts&Supplies 65133 Mission Uniform Service 4,854.42 Uniform Rentals 65134 Morgan,Kathlynn Frances Dees 225.00 Wage Garnishment 65135 National Bond&Trust 2,485.36 U.S.Savings Bonds Payroll Deductions 65136 Nextel Communications 1,413.45 Cellular Phones&Air Time 65137 Nu-Way Laser Engraving 913.54 Steel Tags 65138 The Orange County Register 6,374.20 Notices&Ads 65139 Orange Fluid System Technologies,Inc. 527.18 Plumbing Parts&Supplies 65140 OCEA 589.36 Dues Deduction 65141 Court Order 40.00 Wage Garnishment 65142 Court Order 296.00 Wage Garnishment 65143 Peace Officers Council of CA 1,584.00 Dues Deduction 65144 PenValve 46.42 Plumbing Parts&Supplies 65145 Restek Corp 200.00 Training Registration 65146 Sanmina Corp. 140.90 Reconciliation User Fee Refund Program 65147 Shureluck Sales&Engineering 19.28 Mechanical Parts&Supplies 65148 Smardan Supply Company 682.70 Plumbing Parts&Supplies 65149 Smith Pipe&Supply,Inc. 91.80 Plumbing Supplies 65150 Smith-Emery Company 6,063.53 Professional Services J-77,7-23-1,6-13-1 &P1-76 65151 Court Order 721.50 Wage Garnishment 65152 So.Cal.Gas Company 24,277.55 Natural Gas 65153 Southern California Edison 9,171.71 Power 65154 Southern Mgr Grp,Inc.c/o O'Connor 5,882.67 Valves 65155 Summit Steel 289.58 Metal 65156 Sunset Industrial Parts 99.13 Mechanical Parts&Supplies 65157 SBC 16.95 Telephone Services 65158 Thermo Electron Corp. 205.00 Training Registration 65159 Thompson Industrial Supply,Inc. 109.23 Mechanical Supplies 65160 Tilson&Associates,L.L.C. 3,000.00 Training Registration 65161 Times Community News 93.75 Notices&Ads 65162 Truck&Auto Supply,Inc. 53.34 Automotive Supplies 65163 The Unisource Corporation 153.17 Office Supplies 65164 United Parcel Service 32.00 Parcel Services 65165 United Way 245.00 Employee Contributions 65166 Universal Circuits,Inc. 2,149.28 Pest Control 65167 Varian Associates,Inc. 25.90 MS Workstation Upgrade 65168 Verizon California 2,5B4.31 Telephone Services 65169 VWR Scientific Products Corporation 11,464.29 Lab Parts&Supplies 65170 The Wackenhut Corporation 5,407.11 Security Guards 65171 Weston Solutions,Inc. 18.740.00 Lab Analyses of Benthic Infaunal 65172 Court Order 597.50 Wage Garnishment H:\deptlfin12101CRANEIFAHRTAHR20041SEPT\Claims Paid Report-091504.xts EXHIBIT A fin/210Ac Page 8 of 9 9/28/2004 Z 4 Claims Paid From 09101104 to 09/15104 Warrant No. Vendor Amount Description 65173 Yorba Linda Water District 3,913.28 Reconciliation User Fee Refund Program 65174 Fred J.O'Brien 906.82 Meetingfrraining Expense Reimbursement 65175 GeomAtrix Consultants,Inc. 1.386.98 Legal Services 1-2-4 65176 Kienow,Associates,Inc. 14,029.01 Legal Services 1-2-4 65177 Paul Freeman 1,092.77 Claim Settlement Total Accounts Payable-Warrants $ 19,690,030.42 Payroll Disbursements 34717-34809 Employee Paychecks $ 142,626.85 Biweekly Payroll 09/01/04 34810-34810 Employee Paycheck 300.00 Returned Direct Deposit-Closed Account 34811-34917 Employee Paychecks 148,762.17 Biweekly Payroll 09/15/04 34918-34919 Employee Paychecks 437.89 Adjustments 101913-102441 Direct Deposit Statements 985,394.33 Biweekly Payroll 09/01/04 102442-102976 Direct Deposit Statements 1,045,277.95 Biweekly Payroll 09115/04 Total Payroll Disbursements $ 2,322,799.19 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 723,532.24 Biweekly Payroll 09/01/04 OCSD Payroll Taxes&Contributions 747,562.28 Biweekly Payroll 09/15/04 JP Morgan Chase Bank 39,544.07 August Interest Payment on Series 1993 Certificates of Participation JP Morgan Chase Bank 119,968.88 Societe Generale August Swap Payment on 1993 Series Certificates of Participation Total Wire Transfer Payments $ 1,630,607.47 Total Claims Paid 09/01104-09115/04 $ 23,643,437.08 H:Ideptlfinl2101CRANETAHRTAHR2004ZEP'nClafms Paid Report-091504AS EXHIBIT A fin121011c Page 9 of 9 9128/2004 Claims Paid From 09/16/04 to 09130/04 Warrant No. Vendor Amount Description Accounts Payable-Warrants 65178 ADS Environmental Services,Inc. $ 57,908.70 Professional Services-J-73-2 65179 Basic Chemical Solutions,L.L.C. 29.163.45 Sodium Bisulfite&Sodium Hydroxide 65180 Blue Cross of California 321,589.45 Medical Insurance Premium 65181 Brown&Caldwell 70,500.43 Professional Services-P1-37,P2-41 &0&M Standards&Procedures Manual 65182 Camp Dresser&McKee,Inc. 107,893.39 Engineering Services J-71-8 65183 Carollo Engineers 30,352.01 Professional Services-Coordinated Commercial Enterprise Study&P2-60 65184 Voided Check - - 65185 Computational Systems,Inc. 47,653.52 (2)Machinery Vibration Analyzers&Speed Vue Lasers for Speed Sensor Kit 65186 Environmental Engineering&Contracting 117,103.15 Professional Services-Fats,Oil&Grease(FOG)Study 65187 Irvine Technology Corporation 28,228.00 Temporary Employment Services 65188 J R Filanc Construction 74,047.05 Repair&Maint.Services-Replace Packing for Scrubbers 5,6,8&D1,D2&D3 65189 JPL Compressor Service,Inc. 188,082.72 Replace Camshaft/Lobes-Engine No.2,Plt. 1 Cen Gen;&Overhaul Engine No.2,Plt.2 65190 Kemiron Companies,Inc. 90,954.83 Ferric Chloride MO 9-27-95 65191 Malcolm Pimie,Inc. 255,478.89 Professional Services J-79&P2-80 65192 Moreland&Associates 29,903.75 Auditing Services 65193 Pioneer Americas,Inc. 370,135.54 Sodium Hypochlorite 65194 Primary Source Office Furnishings,Inc. 26,294.08 Office Furniture&Accessories 65195 Sancon Engineering,Inc. 95,470.60 Construction-Manhole Rehabilitation Program 65196 South Coast Air Quality Management Dist. 33,901.37 Annual Emission,Operation&Misc.Fees 65197 Southern California Edison 142,576.68 Power 65198 Tule Ranch/Magan Farms 333,551.60 Residuals Removal MO 3-29-95 65199 Turblex,Inc. 62,689.99 Repair&Maint.Services-Turblex Blower 65200 Teksystems 31,879.00 Temporary Employment Services 65201 U.S.Peroxide,L.L.C. 162,889.93 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 65202 The Vantage Group,L.L.C. 25,720.00 Temporary Employment Service 65203 Woodruff,Spradlin&Smart 195,872.48 Legal Services MO 7-26-95 65204 ARB,Inc. 646,772.37 Construction 7-41 &7-39 65205 J F Shea Construction,Inc. 1,454,938.38 Construction J-35-1,J-77&J-71-3 65206 J R Filanc Construction 1,442,818.80 Construction P1-76 65207 Margate Construction,Inc. 1,328,154.49 Construction P1-37&J-67 65208 Morrow-Meadows Corp 423,654.00 Construction P2-47-3 65209 Olsson Construction,Inc. 195,585.00 Construction P2-82 65210 Paulus Engineering,Inc. 35,799.73 Construction 5-22-R1 65211 Southern Contracting Company 26,564.00 Construction J-33-IA 65212 Torrey Pines Bank 160,313.20 Construction P1-76,Retention 65213 Union Bank of California 71,863.45 Construction 7-36,Retention 65214 Ablaze Group,Inc. 7,250.00 On-Site Training-Crystal Reports 65215 Adams Services,Inc. 3,300.00 Repair&Maint.Services-Pump Out/Clean Baker Tanks 65216 Adamson Industries 515.91 Lab Parts&Supplies 65217 Advance Business Graphics 266.45 Printing Service-Business Cards 65218 Advanced Engine Technology Corporation 1,363.25 Prof.Serv.-Prepare Documentation for PEMS Recertification 65219 Agilent Technologies,Inc. 544.68 Lab Parts&Supplies 65220 Air Liquide America Corp. 420.55 Specialty Gases 65221 Airgas Safety,Inc. 5,070.40 Safety Supplies 65222 Alfa-Laval,Inc. 228.10 Electrical Parts&Supplies 65223 Alhambra Foundry Co.,Ltd. 4,808.34 Manhole Frames&Covers 65224 Allen Instruments&Supplies 102.36 Instrument Parts&Supplies 65225 Alta-Robbins,Inc. 52.66 Instrument Supplies H:\dept\fin12101CRANE\FAHR1FAHR2004\OCTOBER\Claims Patd Report•093004.xls EXHIBIT B fN21011c Page 1 of 8 10118A'004 y • w Claims Paid From 09/16/04 to 09/30/04 Warrant No. Vendor Amount Description 65226 American Airlines 2,244.30 Travel Services 65227 American Fisheries Society 68.00 Publication 65228 American Red Cross 12.00 CPR Training&Miscellaneous Supplies 65229 Analysts,Inc. 299.16 Testing Kits&Analyses 65230 Aquatic Bioassay And Consulting Lab 750.00 Whole Effluent Toxicity Testing 65231 Arizona Instrument 883.00 Instrument Repairs 65232 AssurX,Inc. 5,513.00 CATWEB Software Upgrades&Support 65233 ABB Automation,Inc. 2,002.47 Instrument Service Maint.-Controller Board 65234 ABB Automation,Inc. 383.05 Instrument Calibration Service 65235 ARB/PERP-Air Resources Board 180.00 Permit Fee-Statewide Portable Equipment Registration Program 65236 ASTD-OC-American Society for Training 515.00 Training Registration 65237 American Telephone&Telegraph Corp. 182.23 Telephone Service 65238 AT&T Wireless Services 4,153.64 Wireless Phone Services 65239 Baker Tanks 560.00 Tank Rentals 65240 Bar Tech Telecom,Inc. 1,296.95 Telephone Maint.-16 Port Digital Line Card for Pit.2 PBX System 65241 Basler Electric Company,Department 590 1.637.35 Electrical Supplies 65242 Bell Pipe&Supply Co. 187.29 Piping Supplies 65243 Biocycle 69.00 Publication 65244 Black&Veatch Corporation 1,212.95 Engineering Services P2-85 65245 Boiler and Steam Parts.com 1,138.80 Safety Valves 65246 Bondlcglstix,L.L.C. 2,800.00 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report Series 2003 COPs 65247 Bush&Associates,Inc. 6,680.00 Professional Services J-77,6-13-3&Surveying Services Various 65248 BC Wire Rope&Rigging 279.20 Mechanical Parts,Supplies&Service 65249 BMC:Business Machines Consultants,Inc 104.98 Office Supplies 65250 Caltrol,Inc. 910.59 Electrical Parts&Supplies 65251 Cardlock Fuel Systems,Inc. 16,672.61 Fueling District Vehicles at Local Gas Stations 65252 Carleton Engineers&Consultants,Inc. 1,115.25 Engineering Services-Air Quality 65253 Charles P.Crowley Co. 500.34 Pump Parts&Supplies 65254 City of Tustin 241.85 Water Use 65255 Coast Fire Equipment 383.12 Fire Extinguishers 65256 Cole-Parmer Instrument Co. 277.32 Lab Parts&Supplies 65257 Columbia Analytical Services,Inc. 885.00 Analysis Wastewater,Industrial Wastewater&Biosolids 65258 Compressor Components Of California 18,847.11 Compressor Repair&Maint.Service and Valves 65259 Computer Protection Technology,Inc. 249.78 Computer Maint.Agreement 65260 Computer Sciences Corp. 3,503.70 Consulting&Lab Services-Assay Pilot Project 65261 Consolidated Elect.Distributors,Inc. 5,272.18 Electrical Supplies 65262 Consumers Pipe&Supply Co. 533.60 Plumbing Supplies 65263 Cooper Cameron Corporation 2,385.79 Engine Supplies 65264 Corporate Express 9,741.87 Office Supplies 65265 Corporate Image Maintenance,Inc. 160.00 Custodial Services Spec.No.9899-09 65266 County Wholesale Electric Co. 1,035.76 Electrical Parts&Supplies 65267 Crane Veyor Corp. 1,939.32 Crane Repairs 65268 Culligan of Orange County 40.00 Maint.Agreement-Cen Gen Water Softener System 65269 Cytec Industries,Inc. 18,052.50 Anionic Polymer Spec.No.9798-18 65270 CEM Corporation 386.46 Lab Supplies 65271 CR&R,Inc. 2,237.23 Container Rentals 65272 CWEA Membership 97.00 Membership-Calif.Water Environment Assoc. 65273 David's Tree Service 280.00 Tree Maint.Service 65274 Del Mar Analytical 186.00 Analysis of Biosolids and Wastewater H:ldeptlfin12101CRANE\FAHRIFAHR2004\OCTOBER1CIa!ms Paid Report-093004.xls EXHIBIT B fird210Hc Page 2 of 8 10/18/2004 Claims Paid From 09/16/04 to 09/30/04 Warrant No. Vendor Amount Description 65275 Delta Contracting Corp. 6,314.00 Replacement of(13)Door Sets at Pit.2 65276 Dunn-Edwards Corporation 731.77 Paint Supplies 65277 DHL Express(USA),Inc. 13.42 Freight Services 65278 E.Sam Jones Distributors,Inc. 8.62 Electrical Supplies 65279 Easy Frame Sign Company,Inc. 484.88 Printing-Neighborhood Construction Meeting Signs 65280 Elect Air 38.24 Electrical Parts&Supplies 65281 Electra-Bond,Inc. 2,472.87 Repairs&Maintenance Services 65282 Employee Benefits Specialists,Inc. 603.05 Reimbursed Prepaid Employee Medical&Dependent Care 65283 Employers Group 3,600.00 Prof.Serv.-Succession Planning,Career Development&Customize Model Creation 65284 Employers Group 3,890.76 Membership 65285 Employment Development Dept. 5,110.00 State Unemployment Tax 65286 Environmental Control Systems&Products 3,880.00 Chemical/Odor Neutralizer for Cake Handling Facility at Pit.1 65287 Environmental Resource Association 1,527.79 Lab Supplies 65286 Environmental Resource Center 1,448.00 Training Registration 65289 Eqapac 954.10 Hydrochloric Acid 65290 Excel Door&Gate Company,Inc. 890.50 Door Repairs-Grit Bin Roll-Up Door at Pit.2 65291 Excel Partnership,Inc. 895.00 Training Registration 65292 ETI Systems 4,809.08 On-Site Transformer Testing 65293 FedEx Corporation 32.62 Freight Services 65294 Fisher Scientific Company,L.L.C. 13,226.48 Lab Parts&Supplies 65295 Fluor Enterprises,Inc. 3,716.43 Engineering Services J-84&SP-81 65296 Forensic Analytical Specialties 30.00 Asbestos Analyses&Microscopy 65297 Fountain Valley Paints,Inc. 338.84 Paint Supplies 65298 Frasco Profiles 271.00 Human Resources Background Checking 65299 Fred C.Gilbert Co. 136.20 Small Tools 65300 Fuller Truck Accessories 2,066.76 Truck Parts&Supplies 65301 G.E.Supply 24.79 Electrical Parts&Supplies 65302 Ganahl Lumber Company 120.73 Lumber/Hardware 65303 George T.Hall 172.88 Valve&Regulator 65304 Gerhardt's,Inc. 614.30 Instrument Repairs&Maint.Service 65305 Getinge Castle 6.384.42 Lab Parts&Supplies 65306 Gierlich-Mitchell,Inc. 3,229.07 Mechanical Parts&Supplies 65307 Goldenwest Window Service 3.120.00 Window Cleaning Service-Spec.#990015 65308 Grainger,Inc. 2,039.20 Electrical Parts&Supplies 65309 Graybar Electric Company 350.55 Electrical Parts&Supplies 65310 Guarantee Records Management 267.54 Off-Site Records Storage 65311 Hach Go Ponton Industries 777.93 Lab Parts&Supplies 65312 Harold Primrose Ice 74.00 Ice For Samples 65313 Harrington Industrial Plastics,Inc. 90.14 Mechanical Parts&Supplies 65314 Hill Brothers 17.641.85 Chemicals-Odor&Corrosion Control-Newport Trunkline 65315 HIM,Inc. 883.55 Mechanical Parts&Supplies 65316 Hoerbiger Service,Inc. 604.87 Valves 65317 Home Depot 751.06 Misc.Repair&Maintenance Material 65318 Hub Auto Supply 216.65 Vehicle Parts&Supplies 65319 Industrial Distribution Group 1,680.39 Mechanical Parts,Supplies,Tools&Paint 65320 Industrial Metal Supply 33.07 Metal 65321 Information Handling Services 2,495.00 Software Support-NFPA Data Pages 65322 Inorganic Ventures,Inc. 266.75 Lab Parts&Supplies 65323 Insight Investments 3,313.98 Tax Liability H:\dept\fn\210\CRANE\FAHR\FAHR2004\OCTOBER\Claims Paid Report-093004.xis EXHIBIT B fN210AC Page 3 of 8 10/18/,3404 q . . Claims Paid From 09/16/04 to 09/30/04 Warrant No. Vendor Amount Description 65324 Inleq Group 4,474.82 Professional Services-Contract Management System 65325 Interstate Batteries of Cal Coast 819.87 Batteries for Vehicles&Carts 65326 Irvine Ranch Water District 38.02 Water Use 65327 Isco,Inc. 4,247.25 Rechargeable Batteries&Base Assembly for Sampler 65328 J&B Auto Parts 33.56 Auto Parts&Supplies 65329 J.G.Tucker and Son,Inc. 2,413.60 Specialty Gases 65330 Jaeger Products,Inc. 8,454.58 Dewatering Scrubbers 10'Diameter Packing Support 65331 Jensen Instrument Co. 2,189.27 Instrument Parts&Supplies 65332 Johnson&Associates,L.L.C. 4,500.00 Professional Services-2004 Market Survey 65333 JPMorgan Chase Bank 11,183.00 Yearly Administration Fee for Series 1993 Refunding Certificates of Participation 65334 Kelly Paper 103.41 Paper 65335 Kforce,Inc. 17,836.01 Temporary Employment Services 65336 Lab Support 2,303.25 Temporary Employment Services 65337 LaMotte Company 41.06 Lab Parts&Supplies 65338 Lee&Ro,Inc. 16.595.04 Professional Services P2-47&5-54 65339 Living Leadership 2.457.00 Training Registration 65340 Lucci's Gourmet Foods,Inc. 305.82 Meeting Expense 65341 LC Resources 1,175.00 Training Registration 65342 LINJER 4,996.96 Professional Service-DART MO 9-22-99 65343 Maintenance Technology Corp 142.83 Repair&Maintenance Supplies 65344 Mandic Motors 250.00 Towing Services 65345 Mayer,Brown,Rowe&Maw,L.L.P. 5,000.00 Professional Services-Legislative Advocacy 65346 McCrometer,Inc. 2,633.91 Instrument Parts&Supplies 65347 McMaster-Carr Supply Co. 3,993.23 Mechanical Parts,Tools and Repair&Maintenance Supplies 65348 Medlin Controls Co. 1,765.23 Instrument Supplies 65349 Mesa Laboratories,Inc. 841.00 Repair,Calibrate&Install Heating Unit 65350 Michael Asner Consulting 9,433.74 Professional Services J-40-7 65351 Mission Uniform Service 1,623.01 Uniform Rentals 65352 MJK Construction 16,693.67 Underground Storage Tank Remediation at Blower Building,Pit. 1 65353 National Plant Services,Inc. 3.387.50 Vacuum Truck Services 65354 National Seminars Group 790.00 Training Registration 65355 Neal Supply Co. 81.46 Plumbing Supplies 65356 Ninyo&Moore Corporate Accounting 1,302.00 Professional Services-Materials Testing,Inspection&Geotechnical Engrg. 65357 Nu-Way Laser Engraving 507.65 Steel Tags 65358 NAFA,Inc. 830.00 Membership 65359 NCMA 100.00 Membership 65360 NRDC Publications Department 5.00 Publication 65361 O C Tanner Recognition Company 1,750.32 Employee Service Awards Program 65362 Omnimark Instrument Corp 598.95 Instrument Repairs&Calibration 65363 The Orange County Register 95.94 Notices&Ads 65364 Orange Fluid System Technologies,Inc. 419.98 Plumbing Parts&Supplies 65365 Oxygen Service Company 2,493.28 Specialty Gases 65366 OCB Reprographics 162.11 Printing Service-MO 1/26/00 65367 01 Analytical 614.18 Lab Supplies 65368 P.L.Hawn Company,Inc. 1,508.77 Electrical Supplies 65369 Pacific Bell Internet Services 328.86 Internet Service 65370 Pacific Mechanical Supply 189.64 Plumbing Supplies 65371 Parker Supply Company 3,783.84 Mechanical Parts&Supplies 65372 Parsons,Inc. 23,422.88 Engineering Services J-42 H:ldept\fin12101CRANE\FAHR\FAHR200410CTOBER%Claims Paid Report-093004,xis EXHIBIT B PrV21011c Page 4 of 8 10118/2004 Claims Paid From 09/16104 to 09130104 Warrant No. Vendor Amount Description 65373 Paul Pitt 4,988.70 Engineering Services SP-74 65374 PenValve 695.28 Plumbing Parts&Supplies 65375 Polydyne,Inc. 23,643.49 Cationic Polymer MO 3-11-92 65376 Power Design 8.490.70 Electrical Supplies 65377 Power Measurement Ltd. 1,616.25 Instrument Repairs&Mafnt.Service 65378 Precon Products 586.17 Concrete 65379 Profit Techniques,Inc. 437.50 Professional Services-O&M Leadership Coaching 65380 Project Management Institute 154.00 Membership 65381 Public Treasury Institute 47.50 Publication 65382 Pulse,Inc. 1,725.82 Computer Hardware/Software 65383 Pumping Solutions,Inc. 4,779.57 Pumps&Pump Supplies 65384 PCG Industries 1,870.00 Repair&Maintenance Services 65385 PVF Sales,Inc. 475.88 Plumbing Parts&Supplies 65386 Q Air-Calif.Div.Pump Engineering 129.71 Pump Supplies 65387 R&R Instrumentation,Inc. 1,456.01 Instrument Supplies 65388 R.L.Abbott&Associates 6,000.00 Kern County Biosolids Consulting Services 65389 Rainbow Disposal Co. 2.816.57 Trash Removal 65390 Reliastar Bankers Security Life Ins. 10,948.69 Employee Life Ins.Premium,Short-Term Disability&Cancer Ins.Payroll Deductions 65391 RemedyTemp,Inc. 1,700.22 Temporary Employment Services 65392 Resource Building Materials 245.27 Cement 65393 Retrofit Parts&Components,Inc. 135.34 Mechanical Parts&Supplies 65394 Rockwell Engineering&Equipment Co. 8,707.14 Pump 65395 Roto Rooter-N.O.C.#11 746.50 CCTV,Inspection&Unclogging of Sewer Laterals 65396 RBF Consulting 18,723.60 Engineering Services 7-40,7-38&7-22-1 65397 RD Instruments 1,424.28 Lab Parts&Supplies 65398 RMS Engineering&Design,Inc. 17,310.00 Engineering Services-2004-05 Facilities Engineering Program 65399 Schwing America,Inc. 2.190.50 Pump Supplies 65400 Science Applications InU. 11,732.45 Professional Services-Support to Deploy Coastal Monitoring Buoy 65401 Seaventures 3.700.00 Ocean Monitoring Vessel 65402 Skalar,Inc. 452.33 Lab Supplies 65403 SkillPath Seminars 189.00 Training Registration 65404 Sloan Electric Company 16,488.78 Motor Repairs 65405 Smardan Supply Company 41.38 Plumbing Parts&Supplies 65406 Smith Pipe&Supply,Inc. 320.20 Plumbing Parts&Supplies 65407 Southern California Edison 34.83 Power 65408 Sparkletts 1,553.39 Drinking Water/Cooler Rentals 65409 Sparling Inst.,Inc. 2,811.62 Flow Meter 65410 Spex Certiprep,Inc. 144.02 Lab Supplies 65411 Summit Steel 2,036.67 Metal 65412 Sunset Ford 11.56 Auto Parts&Service 65413 Sunset Industrial Parts 459.12 Mechanical Supplies 65414 Super Chem Corporation 1,209.55 Chemicals 65415 Technical Service Group,Inc. 1,381.60 SCADA System VAX Service Agreement 65416 SCAP 30.00 Environmental Assessment&Environment Science Lab Divisions Meeting Registration 65417 Teledyne Electronics Tech. 94.99 Instrument Parts&Supplies 65418 Terminix International 3,010.00 Pest Control 65419 Tetra Design,Inc. 16,942.59 Professional Services J-88 65420 Tetra Tech,Inc. 7,423.72 Professional Services 11-22 65421 Thompson Industrial Supply,Inc. 3,433.44 Mechanical Supplies H:\dept1fn12101CRANEIFAHRIFAHR20041OCTOBER1Clalms Paid Report-093004.xis EXHIBIT B fiN21011c Page 5 of 8 10/1812J04 Claims Paid From 09/16/04 to 09/30/04 Warrant No. Vendor Amount Description 65422 ThyssenKrupp Elevator Corporation 2,235.50 Elevator Maintenance 65423 Time Motion Tools 167.24 Tools 65424 Tony's Lock&Safe Service&Sales 24.25 Locks&Keys 65425 Townsend Public Affairs 5,000.00 Legislative&Executive Advocate for Grant Funding 65426 Traffic Control Service,Inc. 566.77 Traffic Safety Equipment Rental 65427 Southern California Trane Service 65.36 Electrical Equipment Service Contract 65428 Tri-State Seminar On-the-River 550.00 Training Registration 65429 Tropical Plaza Nursery,Inc. 1,015.00 Contract Groundskeeping MO 5-11-94 65430 Truck&Auto Supply,Inc. 153.94 Automotive Supplies 65431 Tustin Unified School District 3,974.00 Construction-Relocation of Block Wall On OCSD Easement to Allow Manhole Access 65432 Voided Check - - 65433 Union Bank of California 15,365.16 2003 Annual Administrative Fees 65434 United Parcel Service 1.241.91 Parcel Services 65435 US Equipment Co.,Inc. 1,441.60 Filters 65436 Vapex,Inc. 3,221.00 Instrument Parts&Supplies 65437 Varian Associates,Inc. 760.85 Instrument Parts&Supplies 65438 Verizon California 3,734.26 Telephone Services 65439 Veme's Plumbing 475.00 Service Contract-Testing&Cert.Backtiow Devices at Pits.1 &2&Pump Sta. 65440 Vocam USA,L.L.C. 801.48 Video 65441 VWR Scientific Products 2,303.12 Lab Supplies 65442 The Wackenhut Corporation 19,632.10 Security Guards 65443 Water 3 Engineering,Inc. 6,503.88 Engineering Services J-67 65444 Waxie Sanitary Supply 431.77 Janitorial Supplies 65445 Welding Training Solutions,Inc. 5,400.00 Training Registration 65446 West Coast Switchgear,Inc. 12,660.00 Electrical Repair&Maintenance-Vacuum Breakers&Shutters 65447 Western States Control 787.38 Electrical Parts&Supplies 65448 WEF-Registration Dept. 780.00 Training Registration 65449 WEF 531.00 Membership-Water Environment Federation 65450 Xerox Corporation 848.59 Fax&Copier Leases,Supplies,&Maintenance 65451 Yokogawa Corp.of America 425.84 Instrument Parts&Supplies 65452 Zee Medical 457.53 Safety Supplies 65453 California Bank&Trust 2,952.00 Construction J-33-1A,Retention 65454 LH Engineering Co. 14,480.69 Construction 5-54 65455 Orange Community Bank 21,732.00 Construction 132-82,Retention 65456 Paulus Engineering,Inc. 11,743.82 Construction 5-22-Rl 65457 ASTD-OC-American Society for Training 300.00 Training Registration 65458 Dean M.Carrico 56.00 Meeting/Training Expense Reimbursement 65459 James E.Colston 459.55 Meeting/Training Expense Reimbursement 65460 Ingrid G.Hellebrand 1,550.05 Meeting/Training Expense Reimbursement 65461 Deirdre E.Hunter 381.71 Meeting/Training Expense Reimbursement 65462 Penny M.Kyle 150.00 Meeting/Training Expense Reimbursement 65463 Michael D.Moore 166.00 Meeting/fraining Expense Reimbursement 65464 Edmund L.Pendleton 92.00 Meeting/Training Expense Reimbursement 65465 Rory Rea 240.00 Meeting/Training Expense Reimbursement 65466 Roya Sohanaki 150.00 Meeting/Training Expense Reimbursement 65467 Simon L.Watson 147.13 Meeting/Training Expense Reimbursement 65468 Michael I.Zedek 212.90 Meeting/Training Expense Reimbursement 65469 CCAC-City Clerks' Association of CA 200.00 Administrative Services Division Meeting Registration 65470 Orange County Sanitation District 603.09 Petty Cash Reimb. H:ldeptlfin12101CRANE\FAHR%FAHR200450CTOBER1CIaIms Paid Report-093004.xis EXHIBIT B fN210ft Page 6 of 8 10118/2004 Claims Paid From 09/16/04 to 09/30/04 Warrant No. Vendor Amount Description 65471 Thompson,Robert 1,124.87 Employee Computer Loan Program 65472 AMSA 29,089.00 Membership(Assoc.of Metropolitan Sewerage Agencies) 65473 City of Fountain Valley 26,506.32 Water Use 65474 MJK Construction 89,659.17 Underground Storage Tank Remediation at Blower Building,Pit.1 65475 Sancon Engineering,Inc. 27,150.00 Construction-Manhole Rehabilitation Program 65476 Synagro Technologies,Inc. 528,549.99 Residuals Removal MO 3-29-95 65477 Waste Markets Corp. 35,035.20 Maint.Agreement-Grit&Screenings Removal&Digester Bed Mat'I.Removal 65476 South Coast Air Quality Management Dist. 61,868.58 Permit Fees-Annual Emission,Operation&Misc.Fees 65479 AccuStandard 50.26 Lab Parts&Supplies 65480 Airgas Safety,Inc. 2,111.56 Safety Supplies 65481 Awards&Trophies Company 52.13 Plaques&Awards 65482 ASTD-OC-American Society for Training 300.00 Training Registration 65483 American Telephone&Telegraph Corp. 91.73 Telephone Service 65484 California Rebuild America Coalition 5,000.00 Membership 65485 Communications Performance Group,Inc. 21,749.82 Prof.Servs.-Emergency Response Plan&Hazardous Energy Control Procedures 65486 Consumers Pipe&Supply Co. 136.53 Plumbing Supplies 65487 County of Orange-Auditor Controller 1,221.00 Encroachment Permit 65488 County of Orange-Auditor Controller 647.50 Encroachment Permit 65489 CA-NV Section,AW WA 450.00 Employee Development/Training Division Meeting Registration 65490 CR&R,Inc. 315.00 Container Rentals 65491 CW EA Membership 194.00 Membership-Calif.Water Environment Assoc. 65492 DAC 5.500.00 Disclosure&Dissemination Services for 1992, 1993,2000 A&B,and 2003 Bond Issues 65493 FedEx Corporation 113.31 Freight Services 65494 Fisher Scientific Company,L.L.C. 2,721.34 Lab Supplies 65495 Franchise Tax Board 50.00 Wage Garnishment 65496 Fry's Electronics 205.23 Computer Supplies 65497 Full Spectrum Analytics 600.00 Instrument Repairs 65498 Hamlet USA,Inc. 266.63 Plumbing Parts&Supplies 65499 City of Huntington Beach 15.285.40 Water Use 65500 Industrial Threaded Products,Inc. 217.51 Mechanical Parts&Supplies 65501 Konnie K.Gallery 60.88 Frames 65502 McJunkin Corporation 158.17 Freight Services 65503 McMaster-Carr Supply Co. 3,243.90 Tools 65504 Motion Industries,Inc.CA 55 401.38 Repairs&Maintenance Materials 65505 National Plant Services,Inc. 900.00 Vacuum Truck Services 65506 National Technology Transfer,Inc. 2.249.90 CCTV Sewedine Inspection 65507 New Horizons CLC of Santa Ana 1,675.00 Training Registration 65508 City of Newport Beach 25.57 Water Use 65509 Pacific Mechanical Supply 232.23 Plumbing Supplies 65510 Partners Consulting Services 19,680.00 FIS On-Site Support-One Worid XE Migration Project 65511 Prodata 295.00 Software Maint. 65512 Public Resources Advisory Group 7,500.00 Financial Advisory Services 65513 Restek Corp. 200.00 Training Registration 65514 City of Seal Beach Finance Dept. 238.88 Water Use 65515 Shureluck Sales&Engineering 665.58 Mechanical Parts&Supplies 65516 Smardan Supply Company-Fountain Valley 114.34 Mechanical Parts&Supplies 65517 Snap-On Tools 55.24 Tools 65518 Southern California Edison 16.00 Power 65519 Southern Counties Lubricants 1.298.34 Engine Oil H:ldeptlfin12101CRANEIFAHR\FAHR2004\OCTOBER1CIaims Paid Report-093004.xls EXHIBIT B ftN210Ac Page 7 of 8 10/181U)04 Claims Paid From 09/16/04 to 09/30/04 Warrant No. Vendor Amount Description 65520 Summit Steel 1,128.09 Metal 65521 Super Chem Corporation 487.63 Chemicals 65522 SBC 968.97 Telephone Services 65523 Thompson Industrial Supply,Inc. 7,782.05 Mechanical Parts&Supplies 65524 Time Warner Communications 40.47 Cable Services 65525 The Unisource Corporation 9,093.02 Office Supplies 65526 United Parcel Service 73.87 Parcel Services 65527 Verizon California 607.04 Telephone Services 65528 VWR Scientific Products Corporation 22.05 Lab Supplies 65529 YCA 1,200.00 Training Registration 65530 Aguilar,Rosa 1,450.00 Employee Computer Loan Program 65531 Aquarium of the Pacific 380.00 Reimbursable Employee Activity Expense 65532 County of Orange-Auditor Controller 75.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 65533 Myer,John&Dell 3,000.00 Employee Computer Loan Program 65534 Paul or Yolanda Lewanski 1,003.95 User Fee Refund Regarding Septic Tanks 65535 United States Treasury 20,990.44 Interest on Arbitrage Rebate Payment-Series 1992 COPS 65536 United States Treasury 5,666.30 Interest on Arbitrage Rebate Payment-Series 2000 A,COPs 65537 Court Trustee 69.12 Wage Garnishment 65538 Employee Benefits Specialists,Inc. 9,792.38 Reimbursed Prepaid Employee Medical&Dependent Care 65539 Franchise Tax Board 50.00 Wage Garnishment 65540 Internal Revenue Service 300.00 Wage Garnishment 65541 Internal Revenue Service 200.00 Wage Garnishment 65542 National Bond&Trust 2,485.36 U.S.Savings Bonds Payroll Deductions 65543 OCEA 598.61 Dues Deduction 65544 United Way 245.00 Employee Contributions 65545 U.S Postal Service(AMS-TMS) 5,000.00 Postage 65546 Government Finance Officers Association 525.00 Review Fee-Consideration of 2004 Distinguished Budget Presentation Award Total Accounts Payable-Warrants $ 10,441,997.35 Payroll Disbursements 34920-35246 Employee Paychecks $ 60,771.68 Interim Paychecks(Retro Payments,Termination&Corrections) 35247-35339 Employee Paychecks 159,265.34 Biweekly Payroll 09/29/04 102977-103511 Direct Deposit Statements 1,079,894.36 Biweekly Payroll 09/29/04 Total Payroll Disbursements $ 1,299,931.38 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 815,572.68 Biweekly Payroll 09/29/04 U.S.Bank 178,210.54 September Interest Payment for Series 2000,A&B Certificates of Participation Total Wire Transfer Payments $ 993,783.22 Total Claims Paid 09/16/04-09/30/04 $ 12,735,711.95 H:ldeptUin1210\CRANE\FAHR\FAHR2004\OCTOBERkCIaims Paid Report-093004.xis EXHIBIT B fin/21011c Page 8 of 8 10/18/2004 STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for the Regular Board Meeting of Orange County Sanitation District to be held on �1ti��f�� , 2004, was duly posted for public inspection in the main lobby of the Districts' offices on .., /)— / C) , 2004. IN WITNESS WHEREOF, I have hereunto set my hand this /� ~day of 2004. Penny M. K , Secret Board of Directors Orange County Sanitation District KOEMADMIMBS\FORMS\AGENDA CERTIFICATION.DOC �`uJNR SRNI)�))oy oN Cs ORANGE COUNTY SANITATION DISTRICT q i D rC i� Penny Kyle (2 copies no label) November 10, 2004 Board Secretary phone: (714)962-2411 To the Chair and Members fax: of the Board of Directors (714)962-0356 www.acsd.com Subject: Board Letter mailing address: P.O Box 6127 Fountain Valley.CA 92728-8127 The following are items that you may find interesting. If you need additional street address: information on any of the items, please call me. 10844 Ellis Avenue Fountain Valley,CA 92708-7018 Save the Date: January 14-16, 2005 for OCLS IV Mem Agencies Planning is now underway for the 4`h annual Orange County Leadership Symposium at the UCLA Conference Center in Lake Arrowhead. Sponsorship is anticipated from Cities the Sanitation District, OCFA, OCTA, OC League of Cities, LAFCO, TCA, the County CEO, and the City Managers Association as in previous years. We are seeking Anaheim sponsorship for the first time from water districts and the Orange CountyDepartment Brea Buena Park of Education. Approximately 75 attendees are expected, coming from the city Cypress councils, district boards and the county board of supervisors. The elected Fountain Valley Fullerton representatives of these bodies will be joined by their executive managers and a few Garden Grove key staff members. For the second year, the facilitator will be Dr. Eric Allenbaugh. Huntington Beach m We received rave reviews for the 2004 symposium and the planning committee Irvine y p P g Le Habra intends to deliver that same level of satisfaction in 2005. Dr. Allenbaugh is an author La Palma and lecturer who has provided consultation to corporations and public agencies Los Alamitos Newport Beach throughout the United States for more than 20 years. We are considering topics Orange such as re-enforcing leadership principles, moving key stakeholders from resistance Placentia to commitment, developing collective chemist within divergent groups, and Santa Ana P 9 chemistry 9 9 P Seal Beach coaching others to improved performance. Look for additional announcements of Stanton the symposium in the next two months. Last year, eight members of the Sanitation Tustin Villa Park District Board of Directors attended OCLS III. Yorba Linda County of Orange Labor Day Weekend Spill into the Santa Ana River Sanitary Districts Staff continues to investigate the causes of the September 4, 2004 spill into the Costa Mesa Santa Ana River. Staff has confirmed the volume of treated sewage discharged Midway City during the incident at 1.6 million gallons. This number was independently confirmed Water Districts by a team of outside experts hired by the District. The original estimate of 13,000 Irvine Panrh gallons was based on what we now know is inaccurate information because water level sensors were not calibrated correctly. Staff has proposed 41 corrective action items in four areas (communications, equipment, process and training): 26 are already in place, 7 are in the works, and the remaining 8 will be completed within 5 months to 3 years. To maintain world-class leadership in wastewater and water resource management. SNNI,,l/ON 0W = P 90, Board of Directors 'N M Page 2 November 10, 2004 The Regional Water Quality Control Board (RWQCB) inspector recently visited Plant 2 to review the events leading up to the spill. His inspection report recommends a penalty be assessed against the District. No dollar amount is indicated, but, based on other incidents that have occurred around the state over the years, we estimate the penalty amount could be up to several hundred thousand dollars. There are a number of mitigating factors that should influence the RWQCB's decision about the size of the penalty. Those factors include: the spill involved treated, disinfected sewage discharged through an approved outfall, District staff took prompt action, spills from the treatment plant are rare occurrences (the previous spill into the River occurred 30 years ago), and the District has a near spotless compliance record. A final report on the incident is in preparation and I will provide you with a copy of the report at the board meeting. I will notify you as soon as we hear anything from the RWQCB. Attached are the letter to the RWQCB and the list of corrective actions (Lessons Learned Recommendations Implementation Status). New Study Examines Swimming Associated Illness in Mission Bay During the summer of 2004, researchers investigated health outcomes from swimming at beaches in San Diego's Mission Bay that receive non-point runoff with animal waste as the primary source of contamination. While previous studies in California and around the world have examined illness rates at beaches where the contamination is known, or assumed, to be from humans, little is known about illness rates if the contamination is not from human sewage. Overall, illness rates were low with gastrointestinal illness and skin rash in five to twelve year old swimmers being the only significant health outcomes measured. The principal finding of this study was a lack of association of traditional bacterial indicators with health outcomes. This lack of association emphasizes the importance of research into alternative indicators, particularly at sites where non-point sources are prevalent. In short, we must know that bacteria are present and know whether the source is human or not. The study, led by Jack Colford, MD, Ph.D. from the University of California, Berkeley evaluated 8,790 swimmers at beaches throughout Mission Bay. The swimmers were interviewed on the day they were at the beach and again by phone 10 and 14 days later to determine whether they had become ill. Funding was provided by the California legislature and the project was managed by Stephen Weisberg, Ph.D., Director of the Southern California Coastal Water Research Project (SCCWRP). Charles McGee, (Environmental Science Laboratory, Microbiology Laboratory Supervisor) is on the technical advisory committee for this project. Dr. Weisberg will be at our December OMTS meeting to provide additional information on recent SCCWRP's microbiology research findings as well as other SCCWRP research activities. Attached is a copy of a San Diego Union Tribune article, which is also available electronically at http://www.signonsandiego.com/uniontrib/20041016/news 2m16swim.html. `oJ�R.I SAN1/,r'Oy i ifC,/N r u Board of Directors Page 2 November 10, 2004 Santa Ana River Interceptor(SARI) Emergency Repairs Efforts are underway to add base and rip rap rocks to protect two sections of the SARI that cross the Santa Ana River in Yorba Linda. Much of the riverbed has eroded away over the pipe since it was installed 30 years ago. A failure of any section of the SARI, especially during a heavy rain event, would be a major threat to downstream water quality and public health. The environmental and economic effects of failure of the SARI would be staggering. We have been coordinating this emergency work with the Regional Water Quality Control Board, the County of Orange, SAWPA, the U.S. Army Corps of Engineers, the City of Yorba Linda, the California Department of Fish and Game, and several other organizations to obtain the necessary permits. This will ensure that the emergency work will protect sensitive river habitat and meet our short-term engineering goals until a long-term decision can be reached that all affected parties can agree upon. Jamison Engineering and Contractors has already begun to mobilize the necessary equipment to begin this effort and is expecting to finish work at both sites by December 16, weather permitting. A summary of events that have occurred during 2004 is attached. I will provide you updates as the project progresses. Oh My Gosh! Coastkeepers Conclude Hard-to-Trace Sources are Responsible for Beach Pollution. File this under"as we have been saying since 1999", a 2'/2 year study by the Orange County Coastkeepers has concluded that hard-to-trace pollutants, such as animal waste and runoff from washing cars are polluting our waterways. See the attached article. Articles of Interest I have also included several additional published articles that you might find interesting. If you would like additional information on any of the above items, please call me. Blake P. Anderson General Manager BPA:99 H:\DEPT\ADMIN\GM\LETTERS TO THE BOARD\04\092204 BOARD LTR..DOC Attachments SANJI ORANGE COUNTY SANITATION DISTRICT r Phone: November 4, 2004 (714)952-2411 fax: (714)962-0356 www.ocsd.com Gerard J. Thibeault ma)ling address: California Regional Water Quality Control Board eo. ea:8127 Santa Ana Region Fountain Valley,CA 92728-8127 3737 Main Street, Suite 500 Street address: Riverside, CA 92501-3339 10844 Ellis Avenue Fountain Valley08-7,CA 18 SUBJECT: 90-Da Discharge of Effluent to the Santa Ana River Report s27o9aa1a Y 9 P Member Agencies The purpose of this letter is to provide follow-up information to the Regional Water Quality Control Board, Santa Ana Region (RWQCB) regarding the Cities discharge of treated effluent to the Santa Ana River from the Orange County Anaheim Sanitation District (OCSD) Treatment Plant No. 2 (Plant No. 2) that occurred Brea Buena Park on September 4, 2004. An initial letter to the RWQCB was sent on Cypress Fountain Valley September 13, 2004, and the staff indicated in that letter that a follow-up letter Fullerton would be sent within 90-days. OCSD staff has invested significant time and Garden Grove resources to investigate the cause of the incident, calculate the revised Huntington Beach Irvine treated effluent discharge volume, and to identify and implement to the extent La Habra possible the corrective actions to prevent this incident from reoccurring. La Palma Los Alamitos Newport Beach Orange Revised Volume Estimate Placentia OCSD hired Carollo Engineers as an independent expert to verify the volume Santa Ana Seal Beach discharged to the Santa Ana River at Discharge Serial No. 003, as identified Stanton in NPDES Permit No. CA0110604, and provide recommendations to prevent Tustin Villa Park a similar incident in the future. The report found that a discharge occurred at Yorba Linda this designated emergency outfall two times, from 3:00 p.m. to 3:13 p.m. and County of Orange from 3:16 p.m. to 3:33 p.m. on September 4, 2004. Based on this and other supporting information the estimated treated effluent volume that was Sanitary Districts discharged is 1,569,600 gallons. Costa Mesa Midway city The effluent discharged was a blend of primary and secondary treated Water Districts wastewater that would have normally been discharged through Discharge Irvine Ranch Serial No. 001 (the long ocean outfall). A detailed description of the Carollo Engineering report is enclosed as ADDENDUM TO THE INCIDENT REPORT OF SEPTEMBER 4, 2004 PLANT 2 UPSET. To maintain world-class leadership in wastewater and water resource management. 46,�tti 5 1�r C4 6 C 'M i Mi Gerard J. Thibeault Page 2 November 4, 2004 Corrective Actions From this incident OCSD had been given the opportunity to carefully consider the design, maintenance, and operations of its facilities to prevent a repeat of the discharge. OCSD staff has proposed 41 corrective action items and their detailed status can be found enclosed in the report. Twenty-six have been implemented, 7 are undergoing implementation, and the remaining 8 will be completed within 5 months to 3 years from now. These corrective action items have been categorized into four areas: Communications, Equipment, Process, and Training. Five items were considered critical as able to prevent the discharge, and these items have been expedited to prevent a similar incident from reoccurring. Mitigation of Discharge Although OCSD was not able to prevent the discharge from happening, staffs quick response to this incident was able to protect the public and environment from a more serious threat and prevent a long-term shut down of wastewater treatment facilities. The following is a brief discussion of efforts undertaken to mitigate the discharge and its impact. Despite numerous peak storm events over the last two decades and other short-term emergencies and power failures, OCSD has been able to treat and discharge ALL influent wastewater through the treatment works and deep ocean outfall. OCSD specifically designs and operates its facilities to maintain adequate treatment and disposal at all times including predictable emergency conditions. OCSD provides backup ocean outfall pumping, backup power generation, and process wastewater storage to prevent unintended discharges. At the time of the discharge to the Santa Ana River, OCSD was undergoing numerous efforts to maintain normal operations. These include the construction of the new Effluent Pumping Station Annex (EPSA), Energy Masterplan, New Plant No. 2 Headwork, High Flow Integrated Emergency Response Plan training, and numerous other projects and activities which enhance treatment reliability. OCSD is in the midst of a substantial capital improvement program, and this discharge in no way was the result of an effort to avoid costs or gain an economic advantage. dMj $AM I),,rIO � � N O, 0 ff Gerard J. Thibeault Page 3 November 4, 2004 The Discharge to the Santa Ana River is an authorized discharge point for emergency discharges under OCSD's NPDES permit. OCSD's facilities are specifically designed to overflow discharges to the Santa Ana River to avoid flooding of the treatment facilities that could result in long-term losses of wastewater process units. If onsite facilities were flooded from overflows, OCSD may have lost the ability to treat wastewater flows and discharge effluent to the long ocean outfall. Fortunately, the discharge was limited to a few minutes until power was restored to the effluent pumping system. Corrective actions include the improvement of the treatment system to further avoid discharges to the Santa Ana River while protecting the treatment plant. OCSD staff responded quickly to the incident including rapid mobilization of staff through the Incident Command System, immediate notification to the regulators and Health Care Agency, and the monitoring of the local beaches to help quantify any impacts from the discharge. It's important to note that the discharge was treated wastewater and not raw sewage. OCSD staff was unable to capture any of the discharge as the discharge occurred very close to the mouth of the Santa Ana River near high tide. The discharge flowed immediately into the ocean waters. OCSD staff worked with the Orange County Health Care Agency to assess the situation and conduct additional monitoring. As noted in the letter of September 13, 2004, OCSD staff conducted monitoring upcoast and downcoast of the river mouth immediately after the incident and on the Sunday and Monday following the incident. As stated before, only those samples taken at the river mouth indicated the obvious presence of treated wastewater. Closing OCSD remains committed to the public health and environment for Orange County residents and visitors, especially regarding the protection and enhancement of local beaches. This commitment was demonstrated with OCSD's recent decisions to upgrade its level of treatment and add effluent disinfection to the treatment system. OCSD staff is working diligently to avoid all unintended discharges and maintain the beneficial uses of local waters. OCSD staff is available if you have any questions regarding this incident. J�Y lANf aoW s n rH N Gerard J. Thibeault Page 4 November 4, 2004 While many staff members are working to address the incident, please contact Dindo Carrillo on my�staff at (714) 593-7476 for further assistance. Edward M. Torres Manager, Environmental Compliance Services DC/hh HAdept\ts16601cariIJod190-day SAR Discharge Letter(2).doc Enclosure(s) cc: B. Anderson B. Ghirelli B. Ooten V. Franciso S. Basrai D. Halverson D. Carrillo L. Honeybourne -OCHCA J. Colston D. Ludwin D. Cook M. Esquer Plant 2 River Discharge Incident Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes Communications Change the procedure for calling in the Division 860 staff authorized to operate 12kV equipment so that the A new list with call in C1 entire list is called if the on-call staff is Watson, Cook Completed instructions has been placed in not immediately reached. This will both Control Centers. allow quicker response to power emergencies. On-duty staff should start making call ins immediately after an incident that leaves the plant in an unstable New call-out response now directs Operations staff to condition. This will provide staff to C2 man phones and to respond to Cook Completed immediately call in emergency possible deteriorations in the response staff during unstable conditions. This is especially electrical conditions. important in power loss situations. Expand the notification list to include affected cities and other agencies such as City of Huntington Beach, Notification lists for the Cities of fire and police, and lifeguards. These Huntington Beach and Newport C3 notifications would make these Torres, Cabral 1/15/2005 Beach have been completed. agencies aware of the problem and Working on the notification list make sure they have the correct for the other affected cities. information to plan their own responses. Establish a procedure for the call-in C4 for the standby Power Plant operator Cook Completed during an electrical outage event Establish a procedure for the call- CSin/notification of the maintenance supervisors in the incident response Cook Completed procedures Cell phones provided vital Cingular and AT&T are communication links during the scheduled to merge equipment incident but the coverage was in December of this year. At C6 sometimes spotty. Evaluate other Castillon Completed that point, more cell sites will come on line and service providers or communication we'll have better coverage throughout means for better coverage. California. 1 of 7 Plant 2 River Discharge Incident Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes The advantages of an auto-dial notification system should be investigated rather than relying on individual calls by on-duty staff. The C7 initial moments of any incident Castillon 3/1/2005 require all the attention of the limited staff on duty and the automation of this step would free time for other activities. Add a separate phone line in the control rooms reserved for calls from Castillon to meet with Heinz staff responding to incidents. Other and Wade. Need procedures C8 callers quickly overwhelm the normal Castillon 3/1/2005 established so that staff calls phone lines and a separate line would facilitate response staff getting that number. needed information. Responding staff must check in with the incident commander before deploying to the field. This allows for resource coordination and assignment to priority activities. In This is already part of the ICS C9 this incident some staff arrived at the Esquer, Completed procedures. This part will be plant and went directly to where they Watson p highlighted during all future thought they could do the most good. training. This potentially resulted in a delay reconnecting to Edison and may have contributed to the eventual discharge to the river. Establish a check-list for operations C10 staff of the prioritites in case of power Cook Completed outgaes. 2 of 7 v Plant 2 River Discharge Incident Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes Equipment Replace the UPS in the PDF building with an industrial quality UPS and provide a source of standby power Esquer, The existing UPS will be E1 for the UPS. This will prevent the 11/15/2004 replaced with a more robust loss of monitoring and control that Watson UPS was experienced in several past power outages. Recalibrate the OOBS wet well level E2 sensors to read accurately from the Watson 11/10/2004 bottom of the well. E3 Add a level sensor to the box going Esquer, Cook 9/1/2005 To be done as a Facilities to the river from the OOBS wet well. Engineering Project Recalibrate the level sensors in the E4 Foster termination channel so they Watson 11/10/2004 can read levels over the weir. Change the level sensor in the overflow channel next to the Foster E5 termination channel from a sonic type Watson 12/15/2004 to a bubbler type to make level measurements possible even though water is water falling over the weir. E6 Correct the miss tagged level Watson Completed sensors E7 Installation of the Headworks UPS Watson, Completed transfer switch Esquer p Evaluate the feasibility of upgrading In progress under a current E8 the Cen-Gen starting air system Esquer 1/1/2007 Capital Improvement Project (Project-J-79-1) Recalibrate and adjust the air pressure regulator to allow the OOBS E9 wet well and Termination Channel Esquer 11/10/2005 level sensors to read to a range that extends to the top of the deck of the corresponding structure. Increase the frequency of El maintenance to a weekly test of Watson Completed Foster 3rd level power generation 3 of 7 Plant 2 River Discharge Incident Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes Process Establish procedures for using new P1 P1-37 basins for storage during flow Cook Completed emergencies. Implement a pressure relief system for the collections system to prevent dangerous manhole pop-ups in To be done as a Facilities P2 streets caused by back pressure. Esquer 9/1/2007 Perhaps with dedicated vents or with Engineering Project manholes not located in the street such as in parkways. The outfall friction went down after the high quantity of pumping that occurred after the incident. Investigate the potential for The 10/14/04 high-flow event P3 scheduled periodic high quantity Cook, Esquer Completed reduced the friction factor. pumping to keep the outfall pipe clear. This would reduce energy costs for pumping and increase gravity flow in emergencies. Review the District standards for OOBS wet well level to see if a lower P4 normal operating level can be used. Esquer 1 2/2 012 0 0 4 This would provide additional time to respond to emergencies. The procedure for starting process loads when the plant is isolated from Edison needs to be reviewed and P5 staff trained. This will avoid Watson Completed overloading the available capacity of CenGen and the resulting generator tripping. Consider changing operating philosophy by limiting CenGen's The operating philosophy responsibility during power isolations from Edison to powering the OOBS during ablack-start is for Cen- Cook, Gen to power only GOBS. This P6 station only. Influent pumping power Completed is documented in the SOP for would come from the standby Esquer black-starts. The second part generators in the headworks. This would eliminate the potential for would come from the overloading the CenGen engines and implementation of E7 losing outfall pumping. Standby storage basins and other essential facilities and equipment P7 should not be locked out of service Cook Completed when contractors are not actively working on them. 4of7 Plant 2 River Discharge Incident : Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes Make the status of Edison power A computer is now installed in available in the plant and CenGen the Cen-Gen switch-gear room P8 control rooms so that 12kV Esquer, Completed which will allow the Plant Power electricians can be tasked with Watson p Operators to see the availability reconnecting to Edison power as of power at the 12kV Service soon as possible. Center Remove the bulkhead from the overflow line that runs from the P9 OOBS overflow channel to District Esquer 3/1/2005 5/6 trunk line. This will allow the line to operate as intended. Review pertinent capital projects to The Construction sequence of make sure water in/water out the on-going J-77 Project was P10 processes are not being Esquer Completed conducted. A similar review of compromised as part of the design or other projects such as P2-66 as part of the construction sequence. that impact water-in/out will be conducted prior to construction. The Foster Pump Station including the four standby generators are scheduled to be put permanently out of service in May 2005 as part of the The 3rd level generation at P11 Effluent Pump Station Annex(J-77) Esquer Completed Foster will not be taken out until project. The schedule and the the new generators are in construction sequence should be place. reviewed to see if the time with no outfall pumping backup could be shortened. A contractor inspected the Check the flap gates at both gates and removed some P12 locations for leaks when the tide is Watson Completed debris to ensure the gate does high and repair. not leak. Currently there is some minor leak. Correct the level of the Foster P13 overflow channel wall on master Esquer Completed drawings. Establish procedures for limiting P14 influent pumping during flow Cook, Esquer Completed This is part of the Operations emergencies to use the collection basic procedures. system for storage. 5of7 Plant 2 River Discharge Incident Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes Training Expand and clarify the list of Division 860 staff authorized to operate 12kV equipment by providing training so that responses are quicker. Train the T1 Power Plant Operators to reconnect Watson Completed to Edison. The size and complexity of the high voltage distribution system is expanding at both plants and electric power is essential for plant processes. Provide more training for PPG's on the capabilities of the engines and power distribution and switching. On-Going training is scheduled This training should include actual with the Plant Power Operators simulations of Edison power loss and and Electrical Supervision. T2 conducting black starts. The training Watson Completed Operations has started should include all shifts and be coordinated with Operations and scheduling training on third level generation with electrical staff. electrical maintenance staff so they will have a chance to practice the procedures as well. Off-shift Operations staff frequently do not get the same level of training Training has been scheduled T3 as the on-shift staff. Cook,Watson Completed and the electricians will provide Accommodations should be made to training twice a year. allow off-shift staff to participate in all training opportunities. Additional live practices of emergency situations should be conducted for electrical emergencies and other incidents and natural disasters. Though procedures are in Cook, Operations has started T4 place and reviewed on a regular Watson, Completed scheduling training on third level basis,nothing takes the place of Esquer generation with electrical staff walking through the response especially if the situation can be simulated and the equipment and staff tested. 6 of 7 Plant 2 River Discharge Incident Lessons Learned Recommendations Implementation Status # Task Res . Due Date Status Notes A computer has been installed Evaluate the feasibility of locating a so that the Pump Power computer in the cen-gen switchgear Watson, Operators can view the status T5 room for electrical SCADA to enable Castillon Completed of the power at the 12kV the Pump power operator to see the service center. Additionally, status of the power systems. they can see the status of the rest of the plant. Provide 12kV breaker training to PPOs. This will allow PPOs to close T6 the 12kV breaker in the event of a Watson Completed Edison Power blip without waiting for the trained 12kV staff from Division 820. 7 of 7 NOVEMBER 09, 2004 SANTA ANA RIVER INTERCEPTOR EMERGENCY REPAIRS, CONTRACT NO. 2-41-3 • On July 20, 2004 the District authorized RBF to conduct the District's annual topographic monitoring survey at critical locations within the Santa Ana River Bed. • Due to the Corps construction behind PRADO Dam, the Corps was unable to hold any water back thereby allowing all flows to pass through, creating high water levels within the low flow channel. This created some difficulty for the survey to be completed, however, District authorized RBF to complete an interim report of the completed work. • On September 14, 2004 RBF surveyors, while in the process of plotting the survey cross sections, alerted the District of the two areas with minimal soil cover over the pipeline. • District staff analyzed the erosion issues immediately and consulted with the USACOE and RDMD staff on the problem. On September 22, 2004, District staff along with members of the USACOE engineering staff visited the site to assess the existing conditions of the riverbed. A meeting was held at 1:00 pm on the same day with USACOE, RDMD, SAWPA, and OCSD at Prado Dam construction trailer where the findings were discussed in detail. It was decided at this meeting that an emergency action needed to be taken to fix the erosion problem. • On September 23, 2004 a conference call was held with senior management of OCSD, RDMD, USACOE, and SAWPA where the issues were discussed and the USACOE requested the OCSD prepare a letter declaring the needed repairs be considered under an emergency action item. • OCSD issued this letter on September 27, 2004 and, in addition, requested the engineering assistance from the USACOE. On the same day, USACOE, RDMD, SAWPA and OCSD staff met out in the filed and analyzed the two erosion areas to develop a strategy to design a repair method. • OCSD staff immediately authorized RBF to prepare an aerial topographic map of the two erosion areas from which base maps were prepared. While RBF staff were working on the development of the aerial survey maps, USACOE engineering, environmental, and regulatory staff were working on the development of a rip rap method of design to restore the cover over the pipeline at the two erosion areas. • On October 13, 2004 OCSD staff met with USACOE engineering, environmental and regulatory staff in Los Angeles and discussed the design details. • On October 15, 2004 the aerial topographic base maps were received from RBF and OCSD staff started on the preparation of the construction plans. • On October 18, 2004 OCSD consulted with Jamison Engineering and Contractors and requested the assistance of a biologist from Bonterra to field identify and tag trees to be removed and or trimmed for the staging areas. • On October 20, 2004 OCSD, RDMD, SAWPA, USF&WS, RWQCB, CADF&G(absent)and USACOE met at the PRADO Dam construction trailer and discussed the detailed design and the method of construction of the rip rap protection. At this meting all of the regulatory agencies agreed for the work to proceed immediately. • On October 22, OCSD staff completed the preparation of the construction plans which were distributed to staff members as well as the contractor. On this date the USACOE also issued the Regional General Permit 63 authorizing the construction work to proceed as designed. • The District has Contracted with Jamison Engineering and Contractors to complete the Emergency Repairs. • On November 2, 2004 District staff, at the request of the City engineer attended the Yorba Linda City Council and presented an overview of the project and requested an encroachment permit. • The Contractor started working on 11/02 at both Sites (MH 7—8) and (MH 30- 31) simultaneously as follows: 1) Area 1 (Between MH 30—31) Area 1 has been surveyed and pipeline was staked on 11/03 Access road has been staked with the assistance of the biologist on 11/03 Transportation permit will be obtained from City of Yorba Linda today 11/04 Grading commenced on 11/05 Trucks start hauling rocks to build staging area on 11105 Crane assembly started on 11/08 and will be completed on 11/09 Trucks started hauling Rip Rap rocks on 11/09 Placement of rip rap will commence on 11/10 and be completed by 12/16 2) Area 2 (Between MH 7—8) Access road grading and staging area preparation work started on 11/02 Area 2 has been surveyed and Pipeline was staked on 11/02 Access road has been staked with assistance from biologist on 11/03 Transportation permit was obtained from the City of Anaheim on 11/03 200 Tons of Base and Rip Rap rocks for preparation of crane staging area was delivered today 11104 Potholing of the pipeline on south side was completed on 11/03 with north side scheduled for 11/04 Roadway grading and staging area preparation commenced on 11/05 Crane assembly will commence and completed on 11/09 Trucks started hauling Rip Rap rocks on 11109 Placement of rip rap will commence on 11/10 and be completed by 12/16 • District Staff has obtained permits from USACE, County of Orange, RWQCB (exempt) and CADF & G. Staff has also been continuously coordinating with USF & WS. Bicycle Coalition has been contacted and informed of the project. In addition, staff has informed the Chino Hills State Park, Caltrans, California Highway Patrol, and the Citizens Advisory Committee, of the project. Contractor has obtained transportation permits from Cities of Yorba Linda and Anaheim • District Staff and Contractor are continuously coordinating with the USACE Prado Dam Operations to get information on daily and projected releases from Prado to plan their daily work activities within the riverbed. In addition, staff is also checking the daily weather forecast to help plan work activities ahead. HK: f ENVIRONMENT Pollution still streaming into.water Orange County CoastKeeper report shows runoff from hard-to-trace sources is largely responsible for the continuing problem. Alicia Robinson Daily Pilot November 7, 2004 NEWPORT BEACH — Orange County's streams are polluted by some easily traceable sources, such as dairy farms, and much of that has been stopped or reduced recently. But harder-to-trace pollutants, such as animal waste and runoff from washing cars, are still spoiling some waterways, a new report shows. Two-and a-half years of research and the work of more than 200 volunteers went into a report released this week by Newport Beach-based, water-quality watchdog Orange County CoastKeeper. The study collected data on streams in three counties including San Diego Creek and the Santa Ana River. Results show that pollution is coming largely from hard-to-trace, or "non-point," sources, Orange County CoastKeeper project manager Ray Hiemstra said. "The most important finding, as far as I'm concerned, is that these problems are still there despite a lot of the work that's been done on non-point sources," he said. "Everybody's going to have to pitch in to lower the pollution in these creeks because the big problems have been found and corrected in most instances." Funded by the California Environmental Protection Agency, the 2 1/2 -year study used volunteers, trained by CoastKeeper, to take water samples once or twice a month and test them for various kinds of pollution and bacteria. The volunteers also checked twice a year on the bugs and other aquatic life, which can indicate the health and content of water bodies. Testing was performed at 27 sites in three counties. Volunteers checked for bacteria, dissolved oxygen, ammonia and nutrients. The data confirmed that the Santa Ana River and San Diego Creek have poor water quality with high levels of bacteria and dissolved minerals, Hiemstra said. That's been shown by other studies, but the overall project is still valuable for various reasons, he said. Fixing the problems in San Diego Creek will likely cost hundreds of millions of dollars, so there's no such thing as too much data, Hiemstra said. And while the Santa Ana River has been greatly tested, the monitoring project also included creeks that haven't been studied before and creeks that are listed by the state Environmental Protection Agency as impaired but may no longer have the problems that got them on the list. "This program with the volunteer monitors is doing the monitoring that the state would like to do [but] for about half the price," he said. To clean up their creeks and coastline, cities and water agencies are trying a variety of programs and testing new technologies, and they're attacking pollution sources when they can find them, said Bob Ghirelli, director of technical services for the Orange County Sanitation District. "I think we understand now that the non-point-source pollution is probably the largest contributor of pollution to our coastal streams, rivers and the shoreline," he said. "What's really left is the urban runoff, non-point-source pollution that needs to be dealt with." Sanitation district officials have been discussing putting forward a ballot issue to charge residents a yearly fee that would pay for cleaning up runoff. Voters in the city of Los Angeles just approved a $500 million bond measure to pay for runoff improvements. "It takes money to pay for all these programs, and one of the big issues is how do you continue to pay for all these programs," Ghirelli said. Orange County supervisors organized a steering committee of water officials to address water quality issues, and the group plans to pursue a possible runoff clean-up fee, he said. In earlier discussion, the fee was expected to range from $25 to $50 a year per household. District launches research vessel Jeff Benson Daily Pilot November 6, 2004 The Orange County Sanitation District will officially christen its new $1.3-million ocean research vessel "Nerissa" today at the Newport Harbor Nautical Museum in Newport Beach. The district plans to use it to collect water samples and monitor the effects of wastewater discharge on the marine environment. The new vessel will protect local marine life by testing a 35-square-mile stretch of coastal waters, from Crystal Cove to Seal Beach. It will also test the wastewater discharge released 200 feet below the surface from an outfall pipe 4 1/2 miles off the coast of Huntington Beach, district spokeswoman Sonja Wassgren said. "I think the vessel itself is actually a testament to how the sanitation district is committed to protecting marine life," Wassgren said. "Our program is a national leader and this is one more way to solidify and show it." The Harbor Patrol will welcome the boat into port at an 11 a.m. invitation-only ceremony by spraying water from its fireboat's hoses, Wassgren said. There will be food, games, crafts and educational booths for children. The white, 58-foot boat will house the equipment the district uses to monitor the waters, including an echo sounder, radar, deck crane, VHF radio, a plotter with a global positioning system and a large instrument wench that can lower marine apparatuses to collect water samples, Wassgren said. The vessel will conduct three types of monitoring —core monitoring, regional studies and in-depth studies. Through core monitoring, crew members will take measurements and water samples so they can analyze data and see the effects of treated wastewater on marine life. The district will also work with other agencies to study water conditions from Point Conception in Santa Barbara County to Cabo Colnett in Mexico. "By comparing our monitoring results with other agencies in the Bight, it helps to get a regional perspective on what's happening in the ocean," Wassgren said. And the district will conduct special in-depth studies, such as wave transportation mechanisms, not addressed in routine monitoring, she said. Orange County Coastkeeper founder and executive director Garry Brown suggested the boat's christening at Newport Harbor Nautical Museum. "The water in front of Newport Beach and Huntington Beach is probably some of most studied and monitored water in the country," Brown said. "This boat is brand new and [specified] by the district to do the type of testing they do. Not only do they do the type of testing they did in past, but now they're doing even more testing. They'll have their own boat, and it allows them the flexibility to do their testing almost on call if something happens." The crew will test for pH, oxygen and bacteria levels at different water depths, Brown said. The crew will spend as much as 12 hours per day on the boat, where they will also be able to eat and sleep comfortably, Wassgren said. "It's a beautiful boat," Wassgren said. "It's all specifically designed to be a research vessel, and its custom designed and built to use the monitoring equipment we have. It gives us the flexibility we need and keeps the crew safe." When selecting from one of 640 names for their new ocean research and monitoring vessel, members of the Orange County Sanitation District's Environmental Assessment District ultimately decided on "Nerissa." In Greek mythology, Nerissa, the sister of a goddess, lived on the bottom of the ocean and rendered protection and assistance to the sailors who passed by. "The name just fits," Wassgren said. Daily Pilot October 28, 2004 'The OC' awarded with key to the city ■The popular TV show set in Newport Beach gets a place on the newly formed Walk of Fame at Balboa Pavilion. Deepa Bharath, Daily Pilot NEWPORT BEACH —They already have the key to prime-time television success. Tonight, cast members and producers of the Fox network's "The OC" will get a key to Newport Beach, the city that has provided the show with a backdrop, richly woven with drama and mystique. The show has lent fame and notoriety to this city, enhancing its image as a popular tourist destination, said Gail Ossipoff, spokeswoman for the Newport Beach Conference and Visitors Bureau. "This show has brought a lot of positive attention to the city," she said. "I was in New York City recently, and everybody was asking about this show. It's not just around here. It's across the country." The bureau is realistic about the content of the show, which portrays the action- packed lives of pretty, young, rich Newport Beach men and women, complete with sex, drugs, revenge and betrayal, Ossipoff said. "It's not a reality show," she said. "It's entertainment. You take it with a grain of salt just like 'Dallas' or'Beverly Hills 90210."' Newport Beach Mayor Tod Ridgeway, who has previously said the show is entertaining but an exaggerated version of the city, will present the key to cast members. Tonight's event, starting at 6:30 p.m., will also feature a "cement ceremony," where "The OC" will be immortalized on Newport's newly created Walk of Fame at the Balboa Pavilion, Ossipoff said. To top it off, the mayor will make a proclamation in appreciation of"OC Thursdays," drawing attention to the fact that the show will now air Thursdays instead of Tuesdays. The Balboa Fun Zone will be open from 7 to 9 p.m. courtesy of the show. The show's season premiere will be Nov. 4. Ridgeway was not available for comment on Wednesday, but his wife Kay said that as parents of a freshman in high school, they sense the show's popularity among local high school students. "A lot of local high school students watch the show and find it entertaining, on the cutting edge and very cool," she said. Her son and his friends are excited that the city is strengthening its relationship with the show, Kay Ridgeway said. Councilman Steve Bromberg said he feels almost neutral on the issue. He declined an offer last year, when he was mayor, to go on the "Sharon Osborne Show" and present "The OC" with a key to the city, Bromberg said. "At the time, I thought it wasn't representative of the city," he said. "I thought the show put us in a bad light." But since then, he has heard that the show had "gotten better," Bromberg said. "I haven't been watching," he added. "But if the Conference and Visitors Bureau thinks this is a positive things for the city, that's good." He won't be attending the event because of another commitment, Bromberg said. "I'm not boycotting it or anything though," he added with a laugh. - DEEPA BHARATH is the enterprise and general assignment reporter. She may be reached at (714) 966-4625 or by e-mail at deepa.bharath@latimes.com. Los Angeles Daily News Voter support seen for water runoff law By Rick Orlov and Kerry Cavanaugh Staff Writers Wednesday,November 03, 2004 - Los Angeles voters appeared to be giving their approval Tuesday to a$500 million bond issue that is supposed to pay for projects to reduce trash and waste that flow into city waterways and ultimately pollute the ocean. Measure O, which had to get two-thirds approval to pass, would pay for projects to meet more than 60 regulations to curb pollution in waterways under the federal Clean Water Act. A coalition of political, business, labor and environmental groups supported the ballot measure, which had no organized opposition. "We really don't have much of a choice," Mayor James Hahn said. "We are facing these federal mandates, and we need to have this bond approved or it's going to mean we have to cut other programs to clean up our water. "I think that's why so many people have come together to support this proposal." The measure would raise taxes on residential, commercial and industrial property in the city. It would add $34 a year for 24 years to the property-tax bill of a home valued at $350,000,officials said. George Kieffer,president of the Los Angeles Area Chamber of Commerce, said business groups felt the measure was important. "This is a quality-of-life issue, and we think Los Angeles can attract more businesses if we have a clean environment, one where we are taking care of problems like this." Supporters of the ballot measure argued that it is needed to clean up a city that has 7,300 miles of paved streets, either littered with trash or stained with motor oil and other toxic chemicals. "The problem is when it rains, all this flows down into the ocean and rivers and lakes," Councilman Eric Garcetti said. "And, if we do this, other cities can take action to clean their urban runoff." The measure would fund the purchase of screens to keep trash from storm drains, install equipment to divert bacteria-laden storm water into sewers and help pay for park projects and green space to collect runoff. Like other measures approved in recent years to win voter confidence, Measure O crates a citizens oversight committee with a requirement for regular audits to ensure that the projects are done on time and on budget. Measure O would generate funds to help pay the multibillion-dollar cost of implementing dozens of wastewater-pollution safeguards required by the federal Clean Water Act. Current storm-water fees generate $28 million annually, while implementing only the first five limits on pollutants in waterways will cost an estimated $541 million. Implementing the other regulations likely will require other sources of new revenue, officials said. Rick Orlov, (213) 978-0390 rick.orlov(a)dailmews.com http://www.latimes.com/features/outdoors/conditions/la-os-beach2novO2,1,697825O.stoty Beach report November 2, 2004 Los Angeles County Westward A+ Malibu Pier—50 yards east D Surfrider Beach—breach location F Topanga State Beach F Will Rogers—Temescal Canyon F Santa Monica Municipal Pier—50 yards south D Ocean Park Beach—Ashland Avenue C Venice—Windward F Venice—Topsail St. D Dockweiler—Imperial Highway A+ Manhattan Beach Pier A+ Hermosa Beach Pier C Redondo Municipal Pier F Palos Verdes Cove A+ Portuguese Bend Cove A+ Cabrillo—harbor side of lifeguard tower F Long Beach—3rd PI. F Belmont Pier—east side F Orange County Seal Beach—1st Street F Huntington State Beach—Brookhurst Street B Newport Beach Pier A+ Balboa—the Wedge A+ Laguna Beach—Main Beach F Monarch Beach—north F Salt Creek Beach A Dana Point—Dana Strand Beach A+ Doheny State Beach—south of San Juan Creek F Capistrano Beach—Camino Estrella A+ San Clemente—Poche Beach B San Clemente Beach—Avenida Calafia A+ San Diego County Oceanside—Harbor Beach A+ Oceanside Beach—Surfrider Way A+ Encinitas—Moonlight Beach B Ventura County Rincon—50 feet south of creek A+ Oxnard—Starfish Drive A+ Ormond Beach—Arnold Road A+ Point Mugu Beach D Source: Heal the Bay Water quality"dry grades" as of Oct. 25 for L.A. County, Oct. 26 for Orange and Ventura counties and Oct. 24 for San Diego County are based on samples'bacterial pollution levels in the surf zone. November 02,2004 07:40 PM US Eastern Timezone LADWP Board Approves Appointment of City Veteran as New General Manager LOS ANGELES--(BUSINESS WIRE)--Nov. 2, 2004—The Los Angeles Board of Water and Power Commissioners today voted to recommend approving the appointment of Ron Deaton as General Manager of the Department of Water and Power(LADWP). The City Council will have 45 days from receipt of the Board's action today to confirm Deaton's appointment. This appointment follows the resignation of David Wiggs.Wiggs, who had been on medical leave since February, announced his resignation on Oct. 28, effective Nov. 30. LADWP Board President Dominick Rubalcava said,"We are absolutely delighted to have the opportunity to have Ron Deaton as general manager. His wealth of information, knowledge and background with the City, LADWP, and the City Charter will insure immediate success. I look forward to working together with him and facing the challenges ahead." Deaton has served in the City's Chief Legislative Office since 1976. As chief legislative analyst, Deaton has been the legislative and financial advisor for the City Council since he assumed the top position in 1993. Leading a staff of 50 employees, Deaton provides analysis and recommendations to council on a broad spectrum of vital City issues. Under his leadership, the CLA office also has served as caretaker in five City Council Districts during periods when the elected offices were vacant. "I am very pleased and honored by the action of the commission today and truly excited about the opportunity to lead the DWP," Deaton said. "It means a great deal to me to have the confidence of Mayor Hahn and the DWP Commission as we enter a new era of increasing community outreach, expanding renewable power resources, and meeting the growing demand for water resources. I look forward to a discussion of these and other LADWP issues with the members of the Los Angeles City Council and the Council's Commerce, Energy and Natural Resources Committee as the confirmation process proceeds." Deaton added, "On a personal note, I must say I love the City of Los Angeles --and the most precious resource of the people of the City,the DWP." If confirmed by the City Council, Deaton's career will come full circle with the appointment as LADWP general manager. He began his City career at the LADWP in 1965 in budget preparation and market research. From 1968 to 1976, Deaton worked in the City Administrative Office, where he was responsible for budget analysis, management audit teams and water and power analysis. A graduate of California State University at Long Beach, with a B.A. degree in Economics, Deaton holds an MBA degree from the University of Southern California. He and his wife, Ellery, whom he met at LADWP, reside in Seal Beach. During today's Board meeting, Rubalcava thanked Henry Martinez, chief operating officer of the power system who most recently served as interim general manager. He also thanked Frank Salas, a 40-year veteran of LADWP who retired on Nov. 1, for serving as interim general manager earlier this year. "Henry and Frank are both owed a debt of gratitude for stepping in to lead the Department during a challenging period," Rubalcava said. Los Angeles Times: Cities Address Sticky Situation That Can Lead to Sewage Spills Page 1 of 3 http:/'/www.latimes.com/news/I ocal/state/la-me-grease2 nov02.1,7754156.story?colI=la-news-state Cities Address Sticky Situation That Can Lead to Sewage Spills Restaurants are facing a Dec. 30 deadline that bans depositing grease into O.C. sewers. By Sara Lin Times Staff Writer November 2, 2004 Three years after sewage spills caused a record number of beach closures in Orange County,cities and sanitation agencies are targeting the primary culprit: grease. Cities in much of the county are under the gun to meet a Dec. 30 deadline that bans restaurant owners and others from pouring cooking grease down the drain, where it can block pipes and send sewage into the ocean. From Yorba Linda to Newport Beach, 32 cities and water agencies in north and central Orange County are requiring restaurants, school cafeterias and hospitals—considered the biggest grease producers to stop using garbage disposals and instead mop leftover food residue and oil into trashcans. Large grease producers may have to install subterranean interceptor tanks to filter fats and oils out of wastewater. The aim is to eliminate the whitish goo that clings to the sides of sewer pipes, restricting water flow and eventually causing blockages and spills. Most of the beach closures are the result of contamination from sewage spills that flow into the ocean, either from drains or waterways. Beach closures are a financial hardship for coastal cities, emptying boardwalks and beachfront businesses after county health officials find poor water quality. In 1999, the water off Huntington Beach became so contaminated that miles of shoreline had to be closed during the height of summer. Since Orange County suffered 51 beach closures in 2001, the yearly number has been cut in half. So far this year, there have been 25 closures, according to Orange County Health Care Agency records. Some restaurant owners, however, think cities are targeting the wrong crowd. "We've been trained decades upon decades to keep grease from going down the drain," said Dan Marcheano, who owns the the Arches restaurant in Newport Beach. "Logic would tell you that I wouldn't want to deal with a plumber at 8 o'clock on a Friday or Saturday night." Marcheano thinks officials should put more effort into educating homeowners not to throw food and httn://www.latimes.com/news/local/state/la-me-erease2novO2,1,2311407,print.story?coll=l... 11/2/2004 Los Angeles Times: Cities Address Sticky Situation That Can Lead to Sewage Spills Page 2 of 3 grease into the sink. "If you have a restaurant that has 300 dinners on a Saturday night and you have 300 residences serving dinners on the table, those households will produce more grease going down drains than any restaurant," he said. Grease buildup in sewers has become such a nuisance in recent years that the Santa Ana Regional Water Quality Control Board in 2002 ordered local sewage collection agencies to come up with a sewer maintenance plan to help eliminate sewage spills. The grease ordinances being heard before city councils this fall are the result of that push. Although cities and water agencies that own sewer lines must write their own ordinances, the basic requirements are the same. Most call for new restaurants to install grease interceptors or grease traps— scaled-down versions of interceptors that sit above ground but aren't as efficient—while existing restaurants are evaluated on a case-by-case basis. Grease interceptors can cost anywhere from $5,000 to $40,000. Water from a kitchen sink flows into underground tanks where grease floats to the top and food residue sinks to the bottom. A pipe at mid- water level carries relatively grease-free water into the sewer. Almost every city plans to issue annual permits to food establishments with fees ranging from $15 to several hundred dollars to help pay for sewer upkeep. The average Outback Steakhouse or Claim Jumper restaurant can generate 5,000 gallons of grease in a month, said Ken Theisen, staff environmental scientist for the Santa Ana Regional Water Quality Control Board. "We're basically telling people we think grease-caused sewage spills are preventable, and they need to prevent as many of them as they can," Theisen said. Newport Beach has had an anti-grease ordinance in place for 10 years, but an even tougher law is set to go before the City Council next month. Officials are asking the city's 375 restaurants to pay renewable permit fees, with restaurants that have good track records getting discounts. The annual fees would range from as little as $15 up to $800. If a restaurant expands or changes its menu, owners might be required to install underground grease tanks, said Assistant City Manager Dave Kiff. Restaurants that need a grease interceptor but don't have the space will have to follow as many management practices as they can and pay annual fees of$700 to $800. City officials think restaurants are getting a fair offer. "We're saying that the mom-and-pop restaurants that produce grease will still have to clean those pipes somehow," Kiff said. Instead of having to spend$40,000 for an interceptor, he said, the city will charge a restaurant $700 to $800 to help pay for added sewer maintenance. If a restaurant appears to be following the rules and not producing much grease, the city "should lower the fees," Kiff said. The California Restaurant Assn. is pleased that cities are willing to be flexible rather than simply forcing every restaurant to install expensive grease interceptors. "We had a choice. We could work with them or we could be part of the problem," said Andrew Casana, http://www.latimes.com/news/local/state/la-me-grease2nov02,1,2311407,print.story?coll=l... 11/2/2004 Los Angeles Times: Cities Address Sticky Situation That Can Lead to Sewage Spills Page 3 of 3 regional representative for the association.To ensure compliance, cities are employing a variety of tools, including the standard plumbers' snake and remote-controlled sewer cameras. By looking at the pipes that connect a restaurant with the main sewer line, sanitation officers can tell if restaurant employees are still pouring grease down the drain. Standing in the kitchen of his restaurant one day last week, Marcheano said his staff had kept grease and food away from the sink since he became owner in 1982. A chef poured used oil from a frying pan into a bucket on the floor. A dishwasher emptied leftover food into a large plastic garbage can. Inside the sink, a metal colander caught any chunks he missed while the water passed through two more food debris filters under the sink. The food and grease buckets, Marcheano said, are emptied several times a day into a special garbage bin outside. He pays a contractor who specializes in grease-waste to empty that bin every two weeks. Good management, Marcheano said,has kept him from having to call a plumber because of a grease blockage for nearly a decade. If you want other stories on this topic,search the Archives at latimes.comlarchives. 'I MSReprints Article licensing and reprint options Copyright 2004 Los Angeles Times http://www.latimes.com/news/local/state/la-me-grease2novO2,1,2311407,print.story?coll=l... 11/2/2004 CALIFORNIA WATER ENVIRONMENT ASSOCIATION - CWEA � r IMP rvine Ranch Water District cleanup of pollutants that would The next step will be determining (IRWD) is moving forward otherwise flow to the bay and the which of the 31 sites will be designed with the design of the first ocean. The natural "technology" and constructed first. Some of sites, phase of the Natural Treatment used for this project has been used such as three existing basins within System (NTS) project. The project successfully at the San Joaquin the Quail Hill area of Irvine and the will use man-made wetlands to Marsh in Irvine, the Playa Vista existing flood control basin at remove sediment, nutrients, patho- Wetlands in Los Angeles County Trabuco and Jeffrey Roads in Irvine, gens and other contaminants from and other sites around the U.S. are expected to be planted with dry weather runoff in the San Diego vegetation and be on line in 2005. Creek Watershed and improve water Work on the design phase of the Work on other sites will take place quality in Upper Newport Bay. project began following certification gradually over the next five years. of the Draft Environmental Impact The project is expected to be the Report by the Irvine Ranch Water IRWD has taken the lead on this largest watershed-wide urban District Board of Directors in April project as a result of the success of its retrofit project for runoff treatment 2004. The certification followed San Joaquin Marsh project in in the nation. Wetlands plants such rigorous review of the DEIR and treating runoff from San Diego as bulrush and cattails and the the project Master Plan. Work on Creek. In that project, water is taken beneficial bacteria within the the federal certifications is now from San Diego Creek and allowed wetlands soils provide natural being completed. to spend 7-10 days flowing through a 104 SARBS I October 2004 1 www.cwea.org/sarbs Ali" A"'kAbL bo WATER FLOW PATHOGEN PHOSPHOR NITROGEN IY y lri 't series of ponds in constructed Loads (TMDLs), or limits of pollut- wetlands on IRWD property. Over ants that can flow to Upper New- half of the nitrates and tons of port Bay. While this project alone phosphorus and sediment are re- will not solve all of the watershed's moved during natural treatment. water quality problems, it is expect ed to make significant strides Initially, 71 possible sites within the toward meeting TMDL objectives 118-square mile watershed were stud- for San Diego Creek. .� m 61 ied during the master planning --i 1 process. The 31 best locations in More information about the NTS F_ terms of treatment effectiveness, project, including the full EIR and i ••. A. =� constructability, land availability and Master Plan, is available online at t cost were selected for the project. w«-w.naturaltreatmentsystem.org. �' �'��4,, The project has been developed in consultation with the County of r._..o •M�--�r- Orange and the cities within the watershed, which face tough regula- tions on Total Maximum Daily ko I www.cwca.org/sarbs October 2004 SARBS OS F' ORANGE COUNTY SANITATION DISTRICT Hf0 PERIOD: October 1, 2004—October 31, 2004 TO: PDC Committee FROM: David A. Ludwin, P.E. Director of Engineering STAFF CONTACT: Larry Rein CONSTRUCTION PROGRESS • Yorktown/Bushard Intersection: o Completed installation of 15-inch City sewer siphon, 60-inch RCP, north junction structure, and road restoration on north side of intersection. Work continues on south half of the intersection: 12-inch water line replacement, fiber optic cable installation and structure airline installation is to be completed. The estimated completion of the south closure work is the last week of November, 2004 • Bushard between Banning and South Hamilton: o Street restoration is nearly completed. Final asphalt cap and street striping is pending until Verizon completes installation of a new communication cable at this location. Discovered twelve cracked bells between Landfall and Hamilton, bell cracks epoxy repairs are in progress. The estimated completion is the last week of November, 2004. • Bushard between North Hamilton and Panacea: o Completed Hamilton street restoration on October 25, 2004. 109-inch pipe installation continues north of Hamilton intersection. The estimated completion of pipe installation is the week of November 15, 2004. The estimated completion of the work including road restoration is the middle of December, 2004. • Summary Progress to Date 0 108-inch Pipe: 6,444 ft of pipe have been installed. The alignment starts at Plant No. 2 Main Entrance on Brookhurst and continues north on Brookhurst to Banning, then turning west on Banning to Bushard, then turning north on Bushard. Pipe has been installed up to the Waterfront/ Bushard intersection (650-feet north of Hamilton/Bushard intersection) o Intersection work: Work at the following intersections with Bushard has been completed: Hamilton, Atlanta, Indianapolis, Adams, Yorktown (north side only) and Fountain Valley Channel Crossing. o City sewer work: 21/27-inch sewer was installed along Bushard between Banning and Atlanta. An 8-inch sewer was installed on Cape May Drive. o Plant No. 2 Work: Restoration of main entrance is completed and lining of existing 54-inch pipe inside Plant No. 2 is completed. o At the current rate of progress, project is projected to be completed in April, 2007. TECHNICAL/PROBLEM SOLVING ISSUES: • Submittals Reviews o A revised submittal was received on September 8, 2004 for the balance of the 108-inch pipe. This design is a replacement for the previous design that earlier pipe was manufactured to and OCSD said they would not accept for new pipe. OCSD asked for additional information on September 13, 2004 and Rados furnished a response to this request on September 17, 2004. OCSD requested additional information and a response to questions on September 27, 2004. On September 29, OCSD met with Rados and the pipe supplier and reached agreement on what needed to be revised in the pipe submittal. This revised pipe submittal was received October 6, and is under review. o A revised submittal for the 96-inch RCP was received September 22, 2004. The submittal is under review. COMMUNITY OUTREACH/ PUBLIC CONCERNS: • Construction Notifications o Bushard closure from Hamilton to Panacea for two months - distributed September 29, 2004 for road closure beginning October 2, 2004. • Letters o None • Neighborhood Meetings o None • Weekly Updates (5) o October 1, 2004 o October 8, 2004 o October 15, 2004 o October 22, 2004 o October 29, 2004 • Outreach Activities Summary to Date o Seven community meetings o Regular weekly web updates beginning July 2, 2004 ■ The latest web update was October 29, 2004 0 35 notifications were sent. • Approximately 97,000 pieces distributed • Property Damage Complaints o OCSD has received a total of 77 damage complaints. The complaints are being reviewed and processed by AIG (Rados insurer at the time the alleged damage occurred). David Morse &Assoc. has been hired by AIG as a third party adjuster to determine the validity of the claims. To date no additional claims have been settled or denied by AIG. David Morse is in the process of making second inspections in order to make recommendations to AIG. • Other Public Concerns Noted o Dust Control: The Contractor has been directed continuously to mitigate dust at the construction areas. o The Contractor has been directed continuously to not start work prior to 7:00 a.m. LEGAL ISSUES AND CONCERNS: • Homeowner Claims o 50 of the claimants are represented by legal counsel, Masry & Vititoe. Each of these claims are for unspecified damages and is in the amount of 2 million dollars. • Liquidated Damages o Overall project liquidated damages have been accruing from March 27, 2004 at the rate of$2,000 per calendar day for a total of$426,000. o Specific Site work liquidated damages were accrued for work on Adams Avenue from December 8, 2003 until June 22, 2004 at$1,200 per calendar day for a total of$237,600. o Specific Site work liquidated damages were accrued for work on Hamilton Avenue on October 14, 2004 at$1,000 per calendar day for a total of$1,000. o There are actual delays that are allowable per contract that will reduce liquidated damages. Staff was not able to reach an agreement with the Contractor on the number of delay days; therefore staff will be requesting ratification of a unilateral change order for the delays in December. • Summary to Date of Legal Issues o Rados has notified the District of claims for delay damages arising out of problems with the 108-inch pipe and of claims from its subcontractors and suppliers arising out of 108-inch pipe problems. The District has denied any responsibility for such damages. o Rinker has submitted a stop notice in the amount of$1,710,802 for 108-inch pipe manufactured but not paid for by the District. Rados has submitted a stop notice release bond covering 125% of Rinker's stop notice amount. Accordingly, the District need not withhold any monies for the Rinker stop notice. o Consultants o The pipe consultant retained by the General Counsel's office continues to assist staff and the General Counsel's office with technical issues and liability questions. o The geotechnical consultant retained by the General Counsel's office is proceeding with its analysis of the dewatering and vibration study to address allegations of damage to adjacent properties. The final report will be made available to the public for review. LR: Orange County Sanitation District .� Bushard Trunk Sewer Construction Project Weekly Status Update — October 1 , 2004 O� h iV�P ■ Installed 108-inch Pipe and eos Completed Intersection Structures Y 3 ® Current Construction Areas ELLIS AV Upcoming Construction Areas FOun AIN PLANT FOR MORE INFORMATION NO.' CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIELO AV Bass Or Current Yorktown/Bushard Installation of 60-inch Pipe. YORKT , AV Estimated start:September 27,2004. in N g H Bushard St.fully closed between Mid-Yorktown Ave i and Pettswood Dr Intersection. Pettswood or Y a O o m ADAMS AV INDIANAPOLIS AV W Upcoming 108-inch Installation Installation of 108-inch pipe. U W Estimated Start:October 4,2004. m Bushard St.will be fully closed between Mid- ATLANTAAV Hamilton Ave and Panacea Dr Intersection. Current Hamilton/Bushard Intersection Work Panacea or Installation of 108-inch pipe and removal and replacement of 12-inch waterline. H -ON AV Estimated Completion:October 4,2004. [BANNING rumbeat or South Closure:Construction will occur on the South side of Hamilton/Bushard intersection. Bushard fully closed between Drumbeat Drive and South-Hamilton Avenue intersection.Traffic on V Hamilton Ave was restored,but closure remains. A gC��iC CO ASTy� OCSD Gy PLANT �4 NO.2 Orange County Sanitation District Bushard Trunk Sewer Construction Project Weekly Status Update ! October 22, 2004 rrd. IF aV-!�P ® Installed 108-inch Pipe and 40 Completed Intersection Structures SFW r a Current Construction Areas ELLIS AV w Upcoming Construction Areas ° 'D F OIJN AiN PLANT FOR MORE INFORMATION NO.1 CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIE'_D AV YORKTOWN AV Current Yorktown/Bushard a � N Installation of 60-inch Pipe. °z 1_'t Start: September 27,2004. Pettswood Dr = a o Estimated Completion:Last week of November, 2004 o m Bushard St. fully closed between Mid-Yorktown Ave ADAMS AV and Pettswood Dr Intersection. INDIANAPOLIS AV ATLANTA AV Panacea Dr HAMILTON AV Current Hamilton/Bushard Installation of 108-inch pipe. Start: October 4,2004. Estimated Completion:Second week of December,2004 BANNING v Bushard St.fully closed between Mid-Hamilton Ave and Panacea Dr Intersection. Traffic on Hamilton will be restored Monday October 25, A 2004, but closure will remain from North-Hamilton �Cc Avenue and Panacea Dr intersection. 4STfU OCSD - -. --- - Cy PLANT W' NO.2 yty "A 11T•i Ti Orange County Sanitation District U - P Bushard Trunk Sewer Construction Project Weekly Status Update — October 29, 2004 �'��y4 rME cNy a�v Installed 108-inch Pipe and aoSF Completed Intersection Structures wy Current Construction Areas ELLIS AV Upcoming Construction Areas OcSD PLANT FOR MORE INFORMATION NO i CALL CONSTRUCTION HOTLINE (714) 378-2965 GARFIELD AV YORKTONJN AV Current Yorktown/Bushard N n Installation of 60-inch Pipe. a Start: September 27,2004. _ D Estimated Completion: Last week of November,2004 Pettswood Dr x a Y Bushard St.fully closed between Mid-Yorktown Ave 00 and Pettswood Dr Intersection. m ADAMS AV INDIANAPOLIS AV w i a x U r (Y W m ATLANTA AV Panacea Dr AV _ Current Hamilton I Bushard Installation of 108-inch pipe. Start: October 4,2004. Estimated Completion: Second week of December, 2004 Bushard St.fully closed between North-Hamilton Ave and Panacea Dr Intersection. BANNING V A 7C�FiC CO 4ST OCSD yTCy PLANT h4 NO 2 AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING November 17, 2004 — 7:00 P.M. Agenda Posting: 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. Items Not Posted: 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 because there is a need to take immediate action, which need came to the attention of the Board subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Board Secretary's office at (714) 593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five (5) days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955 (posted within 24 hours). 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 11/17/04 Page 2 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. 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). 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 C. Report of General Counsel 1. Receive and file General Counsel's 2004 Litigation Status Report. 7. If no corrections or amendments are made, the minutes for the regular meeting held on October 27, 2004 will be deemed approved as mailed and be so ordered by the Chair. (Minutes to be distributed at 11/17104 Board Meeting.) 8. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 10/15/04 10/31/04 Totals $7,664,711.58 $11,569,193.59 DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference. you are directed to the Register of Warrants as to all current contractors/vendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. 11/17/04 Page 3 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, staff member or member of the public in attendance. there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair, state their name, address and designate by number the item to be removed from the Consent Calendar. The Chair will determine if any items are to be deleted from the Consent Calendar. 9. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same. as follows: a. (1) Receive and file petition from Rene Bollen requesting annexation of 1.30 acres to Orange County Sanitation District, in the vicinity of Randall Street and Meads Avenue, in an unincorporated area of Orange County: and. (2) Adopt Resolution No. OCSD 04-27, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-45 — Bollen Annexation). b Ratify the purchase of an easement from the County of Orange Resources Management Development Department for the Effluent Pump Station Annex, Job No. J-77. in an amount not to exceed $7.500. in a form approved by General Counsel. END OF CONSENT CALENDAR 10. Consideration of items deleted from Consent Calendar. if any. 11/17/04 Page 4 COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on October 27, 2004 to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the November 17, 2004 meeting. C. Consideration of items deleted from Steering Committee Consent Calendar, if any. 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMTS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on November 3. 2004 to be filed. (Minutes to be distributed at 11/17104 Boarcl Meeting.) b. Approve Amendment No. 2 to the Consulting Services Agreement with Brown and Caldwell Consulting, providing for additional consulting services in connection with the Santa Ana Regional Water Quality Control Board's newly adopted Waste Discharge Requirements. for an additional amount of $730.000 to include a $100.000 contingency. increasing the total amount not to exceed $1.430.000 for the time period of January 1, 2005 thru December 31. 2005. C. Approve Memorandum of Understanding with South Orange County Wastewater Authority for Phase 1 of the South Orange County Composting Facility for an amount not to exceed $69,637. to be shared equally with South Orange County Wastewater Authority, in a form approved by General Counsel. OMTS Non-Consent Calendar d. Consideration of items deleted from OMTS Committee Consent Calendar, if any 13. PLANNING. DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning. Design and Construction Committee Minutes for the meeting held on November 4. 2004 to be filed. (Minutes to be distributed at 11/17104 Board Meeting.) 11/17/04 Page 5 b. Ratify Change Order No. 5 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing a deduction of$308,378, decreasing the total contract amount to $5,198.580. C. Ratify Change Order No. 1 to Gisler-Redhill Trunk Improvements. Reach "A". Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; Gisler- Redhill/North Trunk Improvements, Contract No. 7-41; and City of Tustin Project Nos. 6106 and 6151. with ARB. Inc.. authorizing an addition of $349.612 and 20 calendar days, increasing the total contract amount to $18,725,611. d. Ratify Change Order No. 10 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of $242,360, increasing the total contract amount to $31,911,805. e. Approve Professional Services Agreement with Malcolm Pirnie. Inc. for preparation of a Preliminary Design Report for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26. for an amount not to exceed $2,219,330. f. Approve Amendment No. 2 to the Professional Services Agreement with Camp, Dresser & McKee for Rehabilitation of Odor Control Facilities. Job No. J-71-8. providing for modifications to the scope of work for an additional amount of $645.674, increasing the total amount not to exceed $4.220.881. g. Approve Amendment No. 7 to the Professional Services Agreement with Boyle Engineering Corporation for Bushard Trunk Sewer Rehabilitation. Job No. 1-2-4, providing for additional engineering construction support services for an additional amount of $326,509. increasing the total amount not to exceed $2,345,920. h. Approve Amendment No. 1 to the Professional Services Agreement with Fluor Enterprises. Inc. for Electrical Equipment Refurbishment and Protection. Job No. SP-81, providing for additional engineering services for an additional amount of $128,549, increasing the total amount not to exceed $214,049. i. Approve Professional Services Agreement with Black & Veatch Corporation to provide an Energy Master Plan for the Treatment Plant Strategic Plan Update. Job No. J-102, for an amount not to exceed $1,894,660. PDC Non-Consent Calendar j. Concur with Staff recommendation to: (1) Revise the 1999 Strategic Plan Year 2020 flow projection for treatment capacity to provide 13 million gallons per day (mgd) of capacity for the Santa Ana River Watershed Project Authority: (2) Design Plant No. 1 Secondary Treatment Expansion, Job No. P1-102, for a first phase capacity of 60 mgd. with provisions to expand to 80 mgd in the future; and, (3) Establish a policy regarding the two contract agencies served by Orange County Sanitation District (OCSD), such that OCSD plans, designs, and constructs new facilities based on the adopted plans of the agency. J 11/17/04 Page 6 k. Consideration of items deleted from PDC Committee Consent Calendar, if any 14. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE (FAHR) FAHR Consent Calendar a. Order draft Finance. Administration and Human Resources Committee Minutes for the meeting held on November 10, 2004 to be filed. (Minutes to be distributed at 11/17104 Board Meeting.) b. Receive and file Treasurer's Report for the month of October. 2004. C. Receive and file the Quarterly Investment Management Program Report for the period July 1, 2004 through September 30, 2004. d. Receive and file the 2004-05 First Quarter Financial Report for the period ending September 30, 2004. e. Receive and file the SWAP Report for the quarter ended September 30, 2004. f. Adopt Resolution No. OCSD 04-28. Amending Resolution No. OCSD 98-33.. Amending Human Resources Policies and Procedures Manual, providing for: (1) Approve the reclassification of one Public Information Specialist position to Senior Public Information Specialist at pay range 76 ($5,266 — $6,582): and. (2) Approve the reclassification of one Associate Engineer III to Engineer at pay range 84 ($6,415 — $8,018); and, (3) Approve the upgrade of one Senior Engineer position to Engineering Supervisor at pay range 92 ($7,817 — $9.771): and. (4) Approve the pay range placement of the Director of Communications and Administrative Services at pay range 101 ($7,557 — $11,336). g. Approve a one time only non-base building payment for the Director of Technical Services in an amount not to exceed $7.948 for his service as Acting General Manager. h. Authorize the General Manager to solicit Requests for Proposal and subsequently award a Consultant Services Agreement for Phase 2 of the Corporate Identity and Public Awareness Project, Specification No. CS-2003-16213D, in an amount not to exceed $20,000. i. Receive and file FY 03/04 Comprehensive Annual Financial Report. FAHR Non-Consent Calendar j. Consideration of items deleted from FAHR Committee Consent Calendar, if any. 11/17/04 Page 7 NON-CONSENT CALENDAR 15. Ordinance No. OCSD-24, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Revised Table G re Permittee Charges for Use and Reaffirming All Other Charges: "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges; Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees relating to Industrial Charges. Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-22". a. Open meeting 1. Receive and file written comments, if any 2. Verbal report of Director of Finance 3. Verbal report of General Counsel 4. Directors' questions 5. Public comments b. Close meeting C. Discussion by Board of Directors d. Recommended actions: 1. Motion to read Ordinance No. OCSD-24 by title only and waive reading of said entire Ordinance. (The waiver of the reading of the entire Ordinance must be adopted by a unanimous vote of Directors present.) 2. Motion to adopt Ordinance No. OCSD-24, Adopting Revised Table G re Permittee Charges for Use and Reaffirming All Other Charges, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges: Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-22 (Requires two- thirds affirmative vote of the Board of Directors). 16. Ordinance No. OCSD-25, An Ordinance of the Board of Directors of Orange County Sanitation District. Adopting Fats, Oils and Grease Control Regulations Applicable to Food Service Establishments in the Tustin area: a. Open meeting 1. Receive and file written comments, if any 2. Verbal reports of staff 11/17/04 Page 8 3. Directors' questions 4. Public comments b. Close meeting C. Discussion by Board of Directors d. Recommended actions: 1. Motion to read Ordinance No. OCSD-25 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a unanimous vote of Directors present.) 2. Motion to adopt Ordinance OCSD-25, An Ordinance of the Board of Directors of Orange County Sanitation District. An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Fats. Oils and Grease Control Regulations Applicable to Food Service Establishments. 17. Closed Session CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters. pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation: (c) employment actions or negotiations with employee representatives: or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. a. Convene in closed session, if necessary 1. Confer with General Counsel re pending litigation. Santa Ana Watershed Project Authority v. Orange County Sanitation District. Orange County Superior Court Case No. 04CC06197, Government Code Section 54956.9. 2. Confer with General Counsel re pending litigation, Orange County Sanitation District v. Santa Ana Watershed Protect Authority. Orange County Superior Court Case No. 04CC0l 1345, Government Code Section 54956.9. 3. Confer with General Counsel - Anticipated Litigation. Government Code Section 54956.9(c): One (1) matter. 11/17/04 Page 9 4. Convene in closed session to confer with District's Negotiator, Blake P. Anderson, General Manager, re Executive Management Team Compensation and Benefit Percentage Adjustment (Government Code Section 54957.6). b. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session 18. Matters which a Director may wish to place on a future agenda for action and staff report. 19. Other business and communications or supplemental agenda items, if any 20. Future Meeting Date: The next Board of Directors regular meeting is scheduled for December 15, 2004, at 7:00 p.m. 21. Adjournments ................................................................................................................................................................................................................................................................................_.....- 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 banderson(a)ocsd.com t Board Secretary Penny Kyle (714) 593-7130 pkyle(a-)ocsd.com =. :Director/Engineering David Ludwin (714) 593-7300 dludwin a(�ocsd.com :Director/Finance/Treasurer Gary Streed (714) 593-7550 gstreed(c-�ocsd.coin :Director/Human Resources Lisa Tomko (714) 593-7145 Itomko(aDocsd.com :Director/Information Technology Patrick Miles (714) 593-7280 pmiles(aocsd.com Director/Operations& Maintenance Bob Ooten (714) 593-7020 rooten(a)ocsd.com :Director/Technical Services Bob Ghirelli (714) 593-7400 rghirelli(a�ocsd.com Director/Communications& :Administrative Services Carol Beekman (714) 593-7120 cbeekman(cDocsd.com :General Counsel Thomas L.Woodruff 714 564-2605 tiv✓awss-law.com ......................................................................... ...............................................5.........1................................ ��.._—��, .....,........................................... H:\dept\agenda\Board Agendas\2004 Board Agendas\111704 agenda.doc The Minutes of the regular meeting held by the Board of Directors on October 27, 2004 were not available for this mailing . These minutes will be distributed at the November 17, 2004 Board of Directors meeting . Once the minutes are finalized, they will also be available on the District's website (www.ocsd .com). BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/17/04 AGENDA REPORT Item Number Item Number 8 Orange County Sanitation District FROM: Gary Streed, Director of Finance/Treasurer 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. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference.. you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, YOU must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. SUMMARY See attached listing. PRIOR COMMITTEE/BOARD ACTIONS N/A ATTACHMENTS 1. Copies of Claims Paid reports from 10/01/04 — 10/15/04 and 10/16/04 — 10/31/04 H.\dept\agenda\Board Agenda Reports\2004 Board Agenda Reports\1104\Item 8.Claims Paid.doc Revised 06/04/03 a Claims Paid From 10/01104 to 10116104 Warrant No. Vendor Amount Description Accounts Payable-Warrants 65647 ADS Environmental Services,Ina E 67,161.39 Professional Services-J-73.2 66648 Black&Veatch Corporation 464,254.74 Engineering Services P1-76,P1-102,P2-85&5-68 65549 Brown&Caldwell 174,946.37 Professional Services 1132-90 65550 Bush&Associates,Ina 58,088.00 Professional Services 7-23,7-39,7-41 &11-22 66661 Certified Truck Bodies 26,937.50 Purchase&Installation of(1)Custom Service Truck Body 65552 Clemson University 29,153.06 Training Registration 65553 Electra-Band,Inc, 28,716.37 Epoxy Costing of Truck Loading Auger&Mier. Parts&Accessories 65554 Hill Brothers 343353.40 Chemicals-Odor&Corrosion Control-Newport Trunkline 65555 IPMC clo Parsons 947,434.00 Professional Services-Integrated Program Management 65556 JPL Compressor Service, Ina 62,422.19 Repair/Repl. Camshaft Lobes on#2 Engine,Pit. 1 Can Gen;and Overhaul#4 Engine,Pit.2 65557 Kemiron Companies, Inc. 84,101.07 Ferric Chloride MO 9-27-95 66668 Lee&Ro, Ina 144,039.84 Professional Services 5-61 &5-52 65659 Ninyo&Moore Corporate Accounting 39,616.93 Professional Services-Materials Teeting,Inspection&Geotechnical Engrg. 66560 Pioneer Americas,Ina 231,256.66 Sodium Hypochlorite 65661 Pciydyne,Ina 75,452.54 Cationic Polymer MO 3-11-92 65552 S. S. Mechanical Corp. 27,534.80 Const.-Remove/Replace 2e0'of Seamless Carbon Steel Piping,Valves&Pipe Insulation 65563 Sencon Engineering,Inc. 32,450.00 Ccnstrucficn-Manhole Rehabilitation Program 65564 Southern California Edison 79,084.98 Power 65555 SPEC Services,Ina 46,845.26 Engineering Services J-33-1,SP-94 66666 SPS Technologies 38,842.30 Reoondliation User Fee Refund Program 65567 Tran Consulting Engineers 52,083.60 Engineering Services 7-21 66568 Tule Ranch/Megan Farms 238,569.01 Residuals Removal MO 3-29-95 66569 U.S.Metro Group,Ina 26,785.00 Janitorial&Floor Maintenance at Plants 1 &2 66670 U.S.Peroxide,L.L.C. 143,464.86 Odor&Corrosion Control Treatment for Coll. Sys.;Hydrogen Peroxide&Ferrous Chloride 65571 Waste Markets Corp. 42,645.02 Maint.Agreement-Grit&Screenings Removal&Digester Bed Met'l. Removal 65572 Yale/Chose Materials Handling,Ina 130,513.46 (16)Taylor Dunn Electric Carts 66573 ARB, Inc 43,969.58 Construction 11-22 65574 Mike Prlic h&Sans 200,956.01 Construction 6-13-3&7-23-1 65575 Steve P Rados,Ina 327,722.40 Construction 1-2-4 65576 Union Bank of California 36.413.60 Construction 1-2-4,Retention 65577 A-Cal(Assam Calibration,Inc.) 200.00 Calibration of Instrumentation for Bushard Sewer Project 65578 Able Scale Repair 660.00 Ouarteriy Scale Inspection&Certification 65579 Absolute Standards,ina 405.00 Lab Parts&Supplies 66680 Ace Ergonomics 42.56 Ergonomic Foot Rest 66581 Acroburr Inc#2 209.68 Reconciliation User Fee Refund Program 65582 Agilent Technologies,Inc 88.64 Lab Parts&Supplies 65583 Air Industries Corporation 1,937.25 Reconciliation User Fee Refund Program 65564 Air Industries 5,611.64 Reconciliation User Fee Refund Program 65585 Airges Safety,Inc 2,64%06 Safety Supplies 65585 Alfs-Leval,Ina 2,997.75 Electrical Parts&Supplies 65587 Alhambra Foundry Co.,Ltd. 2,267.90 Manhole Frames&Covers 65508 Allied Pacific Metal Stamping 1,900.80 Reconciliation User Fee Refund Program 66589 Allay Die casting 1,289.30 Reconciliation User Fee Refund Program 65590 Aluminum Forge 826.77 Reconciliation User Fee Refund Program 65591 Amcor-Sundipse,Ina 5,999.06 Reconciliation User Fee Refund Program 65592 American Payroll Association 166.00 Membership H:ldept1Rn52101CRANEtiFAHRIFAHR2M1NOVEMBER%Oalms Paid Repot-101504A5 EXH I BIT A tln►21011c Page 1 of 11 1142004 Claims Paid From 10/01/04 to 10116104 Warrant No. Vendor Amount Rescrlptlon 65593 American Water Works Assoc/Water Qualty 655.00 Lab Administration/Quality Assurance Division Meeting Registration 65594 Amerimax Building Products,Inc. 1,379.67 Reconciliation User Fee Refund Program 65695 Ametek Aerospace 659.44 Reconciliation User Fee Refund Program 66696 Amrican Air Filter,Inc. 1,481.05 Filters 65597 Anaheim Extrusion Co.,Inc 788.00 Reconciliation User Fee Refund Program 65598 Anaheim General Hospital 5,373.58 Reconciliation User Fee Refund Program 65599 Aqua-Con 823.54 Reconciliation User Fee Refund Program 65600 Aquarium Doctor 105.44 Human Resources Aquarium Service 65601 Arrowhead Products 9,891.29 Reconciliation User Fee Refund Program 65602 Autodeak University/Enterprise Events 1,295.00 Training Registration 65603 Awards&Trophies Company 147.22 Plaques&Awards 65604 AMSA 450.00 Training Registration 65605 API Fund For Payroll Education, Inc 78.00 Training Registration 66606 APW Enclosure Systems 4,978.93 Reconciliation User Fee Refund Program 65607 APW Enclosure Systems,L.L.C. 3,329.71 Reconciliation User Fee Refund Program 65608 ARO Services 270.33 Reconciliation User Fee Refund Program 65609 American Telephone&Telegraph Corp. 1,127.01 Telephone Conference Services 65610 American Telephone&Telegraph Corp. 93.21 Telephone Service 65611 AT&T Wireless Services 3,415.31 Wireless Phone Services 65612 AWSI 206.00 Department of Transportation Program Management&Testing 65613 Basic Chemical Solutions,L.L.0 10,666.32 Sodium Bisulfite 66614 Basic Electronics, Ina 139.73 Reconciliation User Fee Refund Program 65615 Battery Specialties 364.24 Batteries 66616 Baez Houston Co. 1,026.59 Reconciliation User Fee Refund Program 65617 Bearing Inspection,Inc 1,141.24 Reconciliation User Fee Refund Program 65610 Beckman Coulter,Inc 10,517.85 Reconciliation User Fee Refund Program 65619 Bermingham Controls 519.97 Valves 65620 BloMerleux Vitek,Inc. 4,060.96 Lab Parts&Supplies 65621 Bodycote Lindberg Corp. 324.64 Reconciliation User Fee Refund Program 65622 Boeing-Anaheim 16,933.10 Reconciliation User Fee Refund Program 65623 Boeing Company,The 6,926.93 Reconciliation User Fee Refund Program 65624 Boiler and Steam Parts.com 975.00 Valves 65625 Brasstech,Inc. 5,617.55 Reconciliation User Fee Refund Program 65626 Brea Community Hospital 7,848.97 Reconciliation User Fee Refund Program 65627 Bridgemark Corporation 16.40 Reconciliation User Fee Refund Program 65628 Bristol Industries 2,691.39 Reconciliation User Fee Refund Program 65629 Burlington Engineering,Inc 1,207.70 Reconciliation User Fee Refund Program 65630 BAF Industries 1,781.19 Reconciliation User Fee Refund Program 65631 BI Technologies 3,319.04 Reconciliation User Fee Refund Program 65632 Cal-Glass,Inc 84.32 Lab Equipment Repairs 65633 California Auto Collision 564.56 Repairs to Vehicle 408 66634 California Relocation Services,Ina 187.50 Office Files Moving/Relocation Services 65635 CWEA-Membership 97.00 Membership 65636 Cambridge Isotope Labs 3,491.10 Lab Parts&Supplies 65637 Cambro Manufacturing 3,364.03 Reconciliation User Fee Refund Program 65638 Cannon Equipment West 763.72 Reconciliation User Fee Refund Program 65639 Caren Precision Engineering 2,070.50 Reconciliation User Fee Refund Program H:\deptlEnW MCRANEiFAHR4FAHR20041NOVEMBERkOsime Psld Report-101604.3de EXHIBIT A enn1(Mc Page 2 of 11 111a/2004 Cl alms Paid From 10101104to 10/16104 Warrant No. Vendor Amount Description 65640 Casual Gourmet 166.24 Meeting Expense-P2-79 66641 Catalina Cylinders 1,162.38 Reconciliation User Fee Refund Program 65642 Center for Creative Growth 2,500.00 Professional Services-0&M Management Coaching 65643 Central Powder Coating 1,040.04 Reconciliation User Fee Refund Program 65544 Chapman Hospital 2,667.58 Reconciliation User Fee Refund Program 65645 Circuit Tech, Inc. 17.16 Reconciliation User Fee Refund Program 65646 Cale-Parmer Instrument Co. 277.32 Lab Parts&Supplies 65647 Comm Vault Systems,Inc. 8,373.37 Annual Support&Maintenance for NOMP&Galaxy Software 65M Component Services International,L.L.C. 514.90 Toshiba Circuit Board Repairs 66649 Consolidated Elect. Distributors,Inc 1,710.40 Electrical Parts&Supplies 66650 Consumers Pipe&Supply Co. 277.18 Plumbing Supplies 65651 Cooper Camercn Corporation 1,670.61 Engine Supplies 65652 Corporate Express 3,176.14 Office Supplies 65653 Cortech Engineering 1,564.38 Pump Supplies 65664 County Wholesale Electric Co. 156.88 Electrical Parts&Supplies 65655 Criterion Machine Works 1,353.65 Reconciliation User Fee Refund Program 65656 Crockett Container Corp. 8,373.01 Reconciliation User Fee Refund Program 65657 Custom Enamelers,Inc 454.65 Reconciliation User Fee Refund Program 65658 COW Government,Inc. 297.41 Software Support&Maintenance 65659 CEM Corporation 241.00 Lab Parts&Supplies 65660 CEPA Company 1,220.00 Lab Equipment Maintenance&Certification-Fume Hoods 65661 CH2MHi11 7,267.23 Engineering Services J-40-7 65662 CMAA 225.00 Training Registration 66M CSI Ccmputdonal Systems 4,487.00 Training Registration 65W Dapper Tire Co. 367.42 Truck Tires 65665 Date Aire, Inc. 1,764.16 Reconciliation User Fee Refund Program 65666 Data Solder,Inc 61.74 Reconciliation User Fee Refund Program 66667 David's Tree Service 275.00 Tree Msint. Service 65668 Oecor Metal Finishing,Inc 812.611 Reconciliation User Fee Refund Program 65669 Delphi Automotive Systems,L.L.C. 10,925.80 Reoondlisticn User Fee Refund Program 65670 Derm Cosmetic Labs,Ina 408.20 Reconciliation User Fee Refund Program M71 Detection Instruments Corporation 435.21 Instrument Repairs&Calibration-Oda Lags 65672 E.I. Ou Pont De Nemours and Company 18,686.00 Painting Maint. Services MO 4-22-98 65673 Ducommun Aerastructurea 3,122.60 Reconciliation User Fee Refund Program 65674 Dunn-Edwards Corporation 46.98 Paint Supplies 66675 DGA Consultants,Inc. 11,503.00 Professional Services-CCTV Data Evaluation&Support 65676 Eaton Corporation/MSC Products 1,125.99 Reconciliation User Fee Refund Program 65677 Edinger Medical Group,Ina 615.00 Medical Screenings 66678 Electro Metal Finishing Corp. 95.06 Reconciliation User Fee Refund Program 65679 Employers Group 312.26 Training Registration 65660 Enchanter, Inc. 4,500.00 Ooeen Monitoring&Outfall Inspection&Maintenance 65681 Engravers Ink Company 38.72 Reconciliation User Fee Refund Program 65682 Essex Electric,Ina 2,377.42 Reconciliation User Fee Refund Program 65683 Excel Door&Gate Company,Ina 850.05 Installation of Receiver and Provide 2 Remote Transmitters for Ellis Gate Entrance 65664 Exquisite Design 43.60 Reconciliation User Fee Refund Program 65685 ENS Resources, Inc, 10,002.41 Professional Services-Legislative Advocate 05686 ESRI, Inc. 1,570.00 Training Registration Wdept1Rn12101CRANETAHRIFAHR2004140VEMSEMQalms Paid Report-101604.ids EXHIBIT A tinr21011a Page 3 of 11 1118/2004 Claims Paid From 10101/04to 10/16/04 Warrant No. Vendor Amount Description 65687 Fabrication Concepts Corporation 2,499.18 Reconciliation User Fee Refund Program 65688 FedEx Corporation 766.10 Freight Services 65669 First American Real Estate Solutions 2,600.00 On-Line Orange County Property Information 65690 Five Star Metals,Ina 358.40 Mechanical Parts&Supplies 65691 Foodcraft Coffee&Refreshment Services 735.93 Meeting Supplies 65692 Fountain Valley Rancho Hand Wash 841.70 Trudy Wash Tickets or Gasoline 65693 Franklin Covey 163.78 Office Supplies 65694 Pryor Seminars/Career Track 199.00 Training Registration 65695 Frederick Pump&Engineering 290.18 Pump Parts&Supplies 65696 Fry's Electronics 14.00 Computer Supplies 65697 Fullerton Plating 1,256.28 Reconciliation User Fee Refund Program M98 G.F.0.A 285.00 Training Registration 65699 Ganahl Lumber Company 131.99 Repairs&Maintenance Materials 65700 General Container Corp. 471.44 Reconciliation User Fee Refund Program 65701 George Yardley Co. 1,392.13 Solenoid Valve 65702 Georgia Pacific 5,697.92 Recondlistlon User Fee Refund Program 65703 Gilmour Group clo Lippincott Co. 1,130.84 Hoses 65704 Goldenwest Window Service 470.00 Window Cleaning Service-Spar.#990015 65705 Gamtech Electronics 208.33 Reconciliation User Fee Refund Program 65706 Gorilla's Polishing and Plating Corp. 132.20 Reconciliation User Fee Refund Program 65707 Government Finance Officers Association 50.00 Subscription 65708 Grainger,Ina 2,286.65 Mechanical Parts,Supplies&Tools 65709 Graybar Electric Company 4,978.75 Electrical Parts,Supplies&Repairs 65710 Great Western Sanitary Supplies 234.16 Lab&Janitorial Supplies 65711 H Koch&Sons 3,665.60 Reconciliation User Fee Refund Program 65712 Hach c/o Pcnten Industries 142.44 Lab Parts&Supplies 65713 Hamilton Materials 1,227.63 Reconciliation User Fee Refund Program 65714 Harbor Truck Bodies,Inc. 700.00 Reconciliation User Fee Refund Program 65715 Harold Primrose Ice 55.50 Ike For Samples 65716 The Hartwell Corporation 412.26 Reconciliation User Fee Refund Program 65717 Health Dimensions 800.00 Employee Health Fair 65718 Health Science Associates 3,706.80 Professional Services-Asbestos Study 65719 Hightower Plating&Manufacturing Co. 748.39 Reconciliation User Fee Refund Program 65720 Home Depot 349.36 Misa Repair&Maintenance Material 65721 Hopkins Technical Products 1,082.13 Pump Supplies 65722 Horizon Technology 1,149.11 Lab Parts&Supplies 65723 Hub Auto Supply 281.16 Vehicle Parts&Supplies 65724 City of Huntington Beach 34.85 Water Use 65725 Hyatt Die Casting&Engineering Corp. 1,485.29 Reconciliation User Fee Refund Program 65726 HI Standard Automotive 195.44 Automotive Parts&Supplies 65727 Independent Forge Co. 90.23 Reconciliation User Fee Refund Program 65728 Industrial Distribution Group 751.23 Mechanical&Paint Supplies and Lock 65729 Industrial Threaded Products,Ina _ 212.25 Mechanical Parts&Supplies 65730 Interstate Batteries of Cal Coast 860.06 Batteries for Vehicles&Carta 65731 Intratek Computer, Ina 2,340.00 Network&Server Maintenance 65732 Invensys Systems, Ina 1,386.43 Instrument Supplies 65733 Iron Mountain Off-Site Data Protection 272.50 Offsite Back-Up Tape Storage for NT Server H:ldeofnllMCRANEiFAHMFAHR2004wOVEMBER1Cletme geld Report-101604.ide EXHIBIT A enplane Page 4 of 11 1110n004 e, 1 L i e Claims Paid From 10/01104 to 10116104 Warrant No. Vendor Amount Description 65734 Irvine Sensors Corp. 7,304.40 Reconciliation User Fee Refund Program 65735 IPC Cal Flex,Inc 109.13 Reconciliation User Fee Refund Program 65736 J&B Auto Parts 29.95 Auto Parts&Supplies 65737 James"Tex"Climie 2,868.00 Professional Services-Nerisas Construction Progress&See Trials 65738 Jamison Engineering Contractors,Inc. 3,500.00 Installation of Flow Meter at Ycrbs Linda Pump Ste. 65739 Jays Catering 2,038.13 Meeting Expenses 66740 Jellco Container,Inc 1,772.58 Reconciliation User Fee Refund Program 65741 Jobs Available,Inc 138.00 Notioes&Ads 65742 Johnson Controls Inc 16.871.93 Reconclisticn User Fee Refund Program 65743 Johnstone Supply 17.61 Pump Parts&Supplies 65744 Karcher Insulation, Inc 4,352.52 Repairs&Maint Service-Repair Bailer Insulation on No.2 Boller 65745 Kenlen Specialities, Inc. 398.00 Reconciliation User Fee Refund Program 65746 Kirkhill Rubber 6,281.22 Reconciliation User Fee Refund Program 65747 Lam Lighting,Inc, 796.69 Reconciliation User Fee Refund Program 65746 Larry Welker Associates 9,316.25 Professional Services-NPOES Permit Reissue&Water Quality Regulatory Assistance 65749 Leech Corp. 360.80 Reconciliation User Fee Refund Program 65750 Liebert Cassidy Whitmore 232.00 Professional Services-Human Resource Policies&Procedures 65751 Lack N Stitch 5,538.45 Compressor Repair&Maint Services 65752 Lord&Sons, Inc 333.38 Mechanical Parts&Supplies 65753 Lucci's Gourmet Foods,Inc. 45.45 Meeting Expense 65764 LINJER 4,987.94 Professional Service-DART MO 9-22-99 65755 Magnetic Metals Corporation 2,457.04 Reconciliation User Fee Refund Program 65755 The Mathworks,Inc. 77.91 Software Maintenance-Matlab 65757 Mc Junkin Corp. 184.79 Valves 65758 Mead Westvaco Packaging 4,471.45 Reconciliation User Fee Refund Program 65759 Medlin Controls Co. 851.51 Instrument Supplies 65760 Midway Mfg&Machining Co. 12,926.95 Mechanical Parts&Supplies 65761 Milltronics clo RMB Engineering 490.26 Electrical Parts&Supplies 66762 Mission Uniform Service 3,005.86 Uniform Rentals 65753 Motion Industries, Inc.CA 55 1,629.04 Motor 65764 MARMAC Field Services,Inc, 2,316.95 Professional Services P1-92 65765 National Filter Media Corporation 43200.00 Filter Press Belts 65766 Neal Supply Co. 2.62 Plumbing Supplies 65767 The Norco Companies 179.68 Mail Delivery Service 65768 Nu-Teo Powder Coating 82.72 Reconciliation User Fee Refund Program 65769 NRG Thermal Services,L.L.C. 24,787.00 Construction J-79 65770 Office Depot Business Services Div. 6,337.24 Office Supplies 65771 Oracle Corporation 2,662.79 Software Maintenance&Support 65772 The Orange County Register 9,813.29 Reccnciliation User Fee Refund Program 65773 Orange Courier 927.08 Courier Services 66774 Orange Fluid System Technologies, Inc. 1,944.28 Plumbing Parts&Supplies 65775 Osterbsuer Compressor 62.58 Compressor Parts 65776 Oxygen Service Company 2,018.33 Specialty Gases 65777 OCB Reprographics 11,009.03 Printing Service-MO 1126/00 65778 P.L. Hawn Company,Inc 60.77 Electrical Supplies 65779 Pacific Mechanical Supply 72.06 Plumbing Supplies 65760 Pacific Parts&Controls 928.81 Sealer H:ldeptfn121MCRANE1FAHR1FAHR20441NOVEM13EROolme NId Repart-101604.Yls EXHIBIT A 8n/210Ac Page 5 of 11 111&2004 Claims Paid From 10/01/04 to 10/15104 Warrant No. Vendor Amount Description 65781 Pacific Utility Products 169.10 Reconciliation User Fee Refund Program 65782 Pacifica Aerospace Corp. 2,639.30 Reconciliation User Fee Refund Program 65783 Parker Supply Company 2,939.02 Mechanical Parts&Supplies 65784 Parsons Water&Infrastructure,Inc. 659.16 Professional Services J42 65785 PenValve 19.26 Plumbing Parts&Supplies 65786 Performance Machine,Inn 2,578.31 Reconciliation User Fee Refund Program 65787 Pico Farad,Inc 887.39 Reconciliation User Fee Refund Program 65788 Pllkington Aerospace 8,029.81 Reconciliation User Fee Refund Program 65789 Pixelpushers,Inc 5,020.00 Professional Services-Web-Based,On-Line Job Application 8 Tracking System 65790 Pleion Corp.#2 1,860.40 Reconciliation User Fee Refund Program 65791 Port Supply 1,413.10 Instrument&Electronic Part Supplies 65792 Poster Compliance Center 346.01 State Compliance Posters 65793 Praxeir Distribution,Inc. 30.78 Demurrage 65794 Precious Metals Plating Co. 235.80 Reconciliation User Fee Refund Program 65795 Precision Painting 2,170.00 Reconciliation User Fee Refund Program 65786 Precision Powdercosting, Ina 78.43 Reconciliation User Fee Refund Program 65797 Precon,Ina 374.49 Reconciliation User Fee Refund Program 65798 Private Label Laboratories 1,050.34 Reconciliation User Fee Refund Program 65799 Progressive Marketing 2,563.96 Reconciliation User Fee Refund Program 85800 Propipe 24,852.65 CCTV Sewerline Inspection-Tustin 65801 Prudential Overall Supply 1,280.19 Uniforms 65802 Pump Engineering 1,551.60 Pump Supplies 66803 PS Tek, L.L.C. 441.70 Mechanical Parts&Supplies 65804 Quality Aluminum Forge 59&34 Reconcilietion User Fee Refund Program 65805 Quality Aluminum Forge,Ina 447.22 Reconciliation User Fee Refund Program 65806 Rallmakers, Ina 134.49 Reconciliation User Fee Refund Program 65807 Raney Industries 4,360.00 Contract Service-Belt Press Equipment Modification 65808 Reid Metal Finishing 573.19 Reconciliation User Fee Refund Program 66809 Restek Corp 115.42 Lab Parts&Supplies 65810 Ricoh Electronics#2 7,409.98 Reconciliation User Fee Refund Program 65811 Rigiflex Technology, Ina 73.75 Reconciliation User Fee Refund Program 65812 Rack Industries 6.69 Reconciliation User Fee Refund Program 65813 RBC Transport Dynamics 1,464.54 Reconciliation User Fee Refund Program 65814 Santana Services 158.02 Reconciliation User Fee Refund Program 66815 Schwing America,Inc, 7.02 Pump Supplies 65816 Secretary of Stale 20.00 Filing Fee-OCSO Financing Corp. Statement of Infarmaticn/Domestic Ncn-Profit Corp. 65817 Select Circuits 242.68 Recancillatian User Fee Refund Program 65818 Semicoa 469.02 Reconciliation User Fee Refund Program 65819 Shamrock Supply Co.,Inc. 2,260.79 Concrete 65820 Shepard Brothers,Inc. 3,754.65 Reconciliation User Fee Refund Program 65821 Sigma-Aldrich,Inc. 598.81 Lab Parts&Supplies 65822 James W. Silva 521.46 Meeting/Training Expense Reimbursement 65823 SkillPath Seminars 199.00 Training Registration 65824 Snell Infrared 1,450.00 Training Registration 66825 South Bay Chrome Sales 309.69 Reconciliation User Fee Refund Program 65826 Spox Certiprep,Inc. 807.96 Lab Parts&Supplies 65827 Star Powder Coating 15.43 Reconciliation User Fee Refund Program H:Idept flnl2101CRANE�FAHRIFAHR2004SNOVEMBEMOlaima Paid Report•101 @04Ae EXH I BIT A On121 QAc Page 6 of 11 11181204 Claims Paid From 10/01104 to 10/16104 Warrant No. Vendor Amount Description 65828 Summit Steel 1,137.48 Metal 65829 Sunset Industrial Parts 1,930.65 Mechanical Supplies 65630 SBC 61.41 Telephone Services 65831 SOT North America,Ltd. 186.35 Acoustic Grease Gun Adapter 65832 SPX Valves&Control 478.48 Valves 65833 Taormina Industries,Inc. 4,772.29 Reconciliation User Fee Refund Program 65834 Taormina Industries,Inc.#4 114.85 Reconciliation User Fee Refund Program 65835 Taylor-Dunn Manufacturing 6,248.85 Reconciliation User Fee Refund Program 65836 Teletrac,Inc. 245.00 Monthly Air-Time Service Fee&Software/Hardware Maint for Vehicle Tracking Sys. 65837 Textron Aerospace 9,042.90 Reconciilation User Fee Refund Program 66838 The Walking Man,Ina 3,260.00 Public Notice Printing&Mailing Services 7-39,7A1 &7-38 66839 Thompson Industrial Supply, Inc 1,680.27 Mechanical Supplies 65840 Time Warner Communication 40.47 Cable Services 65841 Daily Pilot 100.00 Notices&Ads 65842 Tony's Lock&Safe Service&Sales 080.60 Locks&Keys 65843 Toyota Racing Development#2 2,227.26 Reconciliation User Fee Refund Program 65844 Traffic Control Service,Inc. 283.38 Traffic Safety Equipment Rental 65845 Transline Technology,Inc. 240.00 Reconciliation User Fee Refund Program 65848 Tropical Plaza Nursery,Inc 7,935.79 Contract Groundskeeping MO 5-11-94 65847 Truck&Auto Supply,Inc. 288.24 Automotive Supplies 85848 TMV Systems Engineering,Inc. 812.50 Software Services 65849 US Filter Corp. 14,621.97 Service Agreement-Lab Purification System 65850 U.S.Geological Survey 4,192.45 Professional Services-Huntington Beach Investigation 65851 U.W.M.C.Hospital Corp.-Anaheim 5,214.64 Reconciliation User Fee Refund Program 65852 U-Line 607.17 Hand Truck&Mist Supplies 65853 Ultra Scientific 542.96 Lab Parts&Supplies 65854 Underground Service Alert of So. Calif. 1,416.80 Membership 65856 The Uniscurce Corporsticn 187.39 Office Supplies 65856 United Circuit Technology 451.35 Reconciliation User Fee Refund Program 65857 Urban Alternatives 6,520.00 Prof. Serv. -Comm. Role. Consulting SuppartlCoscting Re Ellis Ave. Pump Ste. 66858 Varian, Ina 204.12 Lab Parts&Supplies 66869 Vasco Electro Fab, Ina#2 43.12 Reconciliation User Fee Refund Program 65860 Vendor,Inc 11,448.40 Reconciliation User Fee Refund Program 65861 Verizon California 1,354.49 Telephone Services 65882 Veme's Plumbing 2,896.00 Service Contract-Testing&Cart.Badkffow Devices at Plts. 1 &2&Pump Ste. 65863 Vista Paint Corporation 2,573.12 Reconciliation User Fee Refund Program 65864 VWR Scientific Products Corporation 6,049.12 Lab Parts&Supplies 65865 The Wackenhut Corporation 12,426.82 Security Guards 65866 Weather&Wind Instrument Co. 1,026.38 Wind Sock 65867 West American Rubber Company 10,258.60 Reconciliation User Fee Refund Program 65868 West-Lite Supply Company, Ina 1,108.23 Electrical Supplies 65869 Western State Controls 731.58 Electrical Parts&Supplies 65870 Weyerhouser Company 20,386.84 Reconciliation User Fee Refund Program 65871 WEF 1,188.00 Membership-Water Environment Federation 65872 Xerox Corporation 119.18 Fax&Copier Leases&Maintenance 65873 XZX Electronics,Inc. 220.00 Reconciliation User Fee Refund Program 65874 York International 331.11 Electrical Supplies hAdept fln121 MORANE1FAHRFAKR2(IGCNOVEM13MOelms Peld Repert-101504.bs EXHIBIT A ftr210Ac Page 7 of 11 1118/2004 Claims Paid From 10101/04to 10/16104 Warrant No. Vendor Amount Description 65875 YCA 1,200.00 Training Registration 66876 Zee Medical 225.07 First Aid Supplies 65877 Layne T. Baroldi 261.70 Meetingfrraining Expense Reimbursement 65878 Carol T. Beekman 1,048.00 Meetingffralnfng Expense Reimbursement 65879 Thomas M. Blands 368.92 Meeting/Training Expense Reimbursement 65880 Rebecca A. Brooks 429.00 Meeting/Tralning Expense Reimbursement 65881 Marc A. Brown 2,034.94 Meeting/Training Expense Reimbursement 65882 Pongsakdi Cady 265.75 Meeting/Tralning Expense Reimbursement 65883 George A Charette 47201 Meeting/Training Expense Reimbursement 66884 James E. Colston 1,130.54 Meeting/Training Expense Reimbursement 65885 Steven R. DeWilde 684.84 Meeting/Training Expense Reimbursement 65866 Peter M. Hass 613.16 MeetingfTraining Expense Reimbursement 65887 Jin H Kim 150.00 Meetingffraining Expense Reimbursement 65888 Larry E. Lazorek 434.60 MeetinglTreining Expense Reimbursement 65889 William J. Lloyd 412.23 Meetingffraining Expense Reimbursement 65890 David A. Ludwin 1,848.64 MeetingfrraInIng Expense Reimbursement 65891 Laura Maravilla 19.03 Meeting/Tralning Expense Reimbursement 65892 Robert 0.Michaels 796.38 Meeting/Tralning Expense Reimbursement 65893 Fred J. O'Brien 805.34 Meeting/Training Expense Reimbursement 65894 Gary A. Pons 1,417.48 Meeting/Training Expense Reimbursement 65895 Bushra R Pope 17.00 Meetingfrralning Expense Reimbursement 65896 Jeremy J. Saum 160.88 Meeting/Training Expense Reimbursement 65897 Richard E. Schlegel,Jr. 1,295,00 Meeting/Training Expense Reimbursement 65898 John W. Swindler 468.55 Meeting/Tralning Expense Reimbursement 65899 Robert C.Thompson 880.33 Meetingffralning Expense Reimbursement 65900 William F. Webster,Jr. 827.06 Meeting/Tralning Expense Reimbursement 65901 Paula A. Zeiler 384.39 Meetingffraining Expense Reimbursement 65902 APT US&C 200.00 Professional Services -Investment Policy Certification Program 65903 City of Brea 92.60 Meeting Expenses-Community Outreach Meeting Re Carbon Canyon 65904 County of Orange-Auditor Controller 180.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 65905 Orange County Sanitation District 1,649.26 Petty Cash Reimb. 65906 Brian K Reed 195.03 Meeting/Training Expense Reimbursement 65907 West Coast Life 2,983.00 Employee Life Insurance Premium 66908 American Express 25,397.96 Purchasing Card Program, Misc Supplies&Services 65909 Nor-Cel Beverage Company, Inc. 144,764.63 Reconciliation User Fee Refund Program 65910 Occidental Energy Marketing, Inc 174,073.68 Natural Gas-Can Gen 65911 Stremdcks Heritage Foods 97,011.75 Reconciliation User Fee Refund Program 65912 A&G Electropollsh 1,588.25 Reconciliation User Fee Refund Program 65913 Accurate Circuit Engineering 349.26 Reconciliation User Fee Refund Program 65914 Accurate Metal Fabricators, Inc 467.12 Reconciliation User Fee Refund Program 65915 Airges Safety 5,631.83 Safety Supplies 65916 Alta-Robbins,Inc 399.17 Instrument Supplies 65917 Aluminum Precision 513.80 Reconciliation User Fee Refund Program 65918 Artisan Nameplate and Awards Corp. 1,408.64 Reconciliation User Fee Refund Program 65919 AMSA 900.00 Training Registration 65920 American Telephone&Telegraph Corp. 28.08 Telephone Service 65921 Basin Marine, Inc. 7.76 Reconciliaticn User Fee Refund Program H:�dept fln12101CRAN MFAH RTAHR2004%NOVEM BERSClalms Paid Report-101604.x1e EXHIBIT A An/2112Ac Page 8 of 11 11/1/2404 p a, C o Claims Paid From 10/01104to 10/16/04 Warrant No. Vendor Amount Description 66922 The Boeing Company 22,347.03 Reconciliation User Fee Refund Program 65923 Brand Scaffold Rental&Erection,Inc 2,060.00 Scaffolding Access at Scrubbers 9&10 65924 California Custom Shapes,Inc 885.25 Reconciliation User Fee Refund Program 65925 Cameron Welding Supply 177.83 Welding Supplies 85926 CircuitAcoess,Inc 317.64 Reconciliation User Fee Refund Program 65927 Classic Plating,Inc 588.06 Reconciliation User Fee Refund Program 65928 Clough's Rhubarb 12,573.21 Reconciliation User Fee Refund Program 65929 Court Order 150.00 Wage Garnishment 65930 Columbia West Anaheim Medical Center 1,783.83 Reconciliation User Fee Refund Program 65931 Compressor Components Of California 3,792.80 Repair&Maintenance Service-Rebuild 32 Fuel Check Valves at Pit.2 Warehouse 65932 Consumers Pipe&Supply Co. 167.25 Plumbing Supplies 65933 Cooper Cameron Corporation 662.37 Freight 65934 County of Orange 182.14 Wage Garnishment 65935 Court Trustee 69.12 Wage Garnishment 65936 Crest Coatings#2 161.47 Reconciliation User Fee Refund Program 65937 CCDA Waters,L.L.C. 7,602.39 Reconciliation User Fee Refund Program 65938 Dell Computer 21,034.03 (5)Computers,(1)Server&Hardware 65939 Department of Child Support Services 188.50 Wage Garnishment 65940 Dhorms Consulting 15,000.00 Professional Services-Strategic Planning&EMT Development 66941 Diehl,Evans&Co.,L.L.P. 700.00 Training Registration 65942 Embee Inc#1 10.27 Reconciliation User Fee Refund Program 66943 Embee Inc#3 69.84 Reconciliation User Fee Refund Program 65944 Employee Benefits Spedalists,Inc 9,792,38 Reimbursed Prepaid Employee Medical&Dependent Care 65945 Court Order 445.00 Wage Garnishment 65946 Fisher Scientific Company,L.L.C. 2,017.74 Lab Parts&Supplies 65947 Franchise Tax Board 100.00 Wage Garnishment 65948 Fry's Electronics 366.64 Computer Supplies 65949 Garg-Oil Production,L.L.C. 475.46 ReoondlisUcn User Fee Refund Program 65950 Garratt-Callahan Company 1,926.57 Chemicals $5951 Gemini Industries 7,597.48 Reconciliation User Fee Refund Program 66952 General Ceramics,L.L.C. 1,819.01 Reconciliation User Fee Refund Program 65953 Global Environmental Network,Inc 608.00 On-Site Training-Traffic Control Safety Awareness 65954 Goglanisn Bakeries 5,100.03 Reconciliation User Fee Refund Program 65955 Gunther Athletic Service 89.48 Reconciliation User Fee Refund Program 65956 Harrington Ind. Plastics 183.35 Mechanical Parts&Supplies 65957 Harry's Dye&Wash, Inc 6,174.78 Reconciliation User Fee Refund Program 65958 Harte-Hanks Shoppers 1.111.75 Reconciliation User Fee Refund Program 65959 Herman Miller Workplace Resource 3,962.07 Office Furniture 65260 Ideal Uniform Rental Service 2,029.21 Reconciliation User Fee Refund Program 65961 Internal Revenue Service 300.00 Wage Garnishment 65962 internal Revenue Service 200.00 Wage Garnishment 65963 Intemational Food Solutions,Inc 5,465.02 Reconciliation User Fee Refund Program 65964 Intl. Union of Oper. Eng.AFL-CIO Local 501 3,929.98 Dues Deduction 65965 ICN Pharmaceuticals 779.76 Reconciliation User Fee Refund Program 65966 J.R 0.Operations TrusUH.B. Oil 207.67 Reconciliation User Fee Refund Program 65967 Johnstone Supply 39.70 Pump Supplies 65968 Kus Textiles,Inc. 492.63 Recondllabon User Fee Refund Program H:Idoptfn121MCRANE1FAHMFAHR101141NOVEMBER Oaims Paid Report-101604.xfo EXHIBIT A 90210nc Page 9 of 11 1102004 Claims Paid From 10101104 to 10/16/04 Warrant No. Vendor Amount Description 65969 Le Palma Intercommunity Hospital 8,019.62 Reconciliation User Fee Refund Program 65970 Llnco Industries, Ina 353.43 Reconciliation User Fee Refund Program 65971 Lerman Education Services 319.00 Training Registratian 65972 Mac&Associates,An Industrial Disk Ca 426.45 Pump Supplies 65973 McMaster-Carr Supply Co. 1,320.43 Mechanical Parts&Supplies 65974 Mlcrometals, Inc.#2 771.57 Reconciliation User Fee Refund Program 65975 Milltranics clo RMB Engineering 5C6.33 Mechanical Parts&Supplies 65976 Court Order 225.00 Wage Garnishment 65977 National Bond&Trust 2,485.36 U.S. Savings Bonds Psyrcll Deductions 65978 National Plant Services,Inc. 4,350.00 Vacuum Truck Services 65979 New Hermes,Inc. 17.63 Freight 65980 Nuevo Energy 1,972.35 Reconciliation User Fee Refund Program 66981 Orange Fluid System Technologies, Inc. 119.15 Plumbing Parts&Supplies 65982 OCEA 698.61 Dues Deduction 65983 Partners Consulting Services 22,020.00 FIS On-Site Support-One World XE Migration Project 65984 Court Order 296.00 Wage Garnishment 65985 Paulus Engineering,Inc. 19,570.00 Constructicn-Sewerline Road Repairs in Tustin 65986 Payton Technology Corp 7,109.83 Reconciliation User Fee Refund Program 65987 Peace Officers Council of CA 1,593.00 Dues Deduction 65986 Plctometry International Corp. 20,000.00 Software License&Training-Image Library 66989 Precon Products 58&17 Manholes 65990 Pumping Solutions,Ina 826.55 Pump 65991 Red Wing Shoes 174.12 Safety Shoes 65992 Court Order 721.50 Wage Garnishment 65993 So. Col. Gas Company 1,193.54 Natural Gas 65994 Southern California Materiel Handling 22,616.73 (1)Caterpillar Forklift 65995 Speedy Circuits,Facility#2 1,772.83 Reconciliation User Fee Refund Program 65996 State Board of Equalization 350.00 Annexation Fee 65997 Summit Steel 3,038.05 Metal 66998 SETAC 325.00 Lab Administration/Quality Assurance Division Meeting Registration 65999 Thomas V. Gedinger 500.00 Lab Analyses 68000 Toyota Racing Development 302.85 Recandliaticn User Fee Refund Program 66001 Troy Systems,Inc, 865.91 Toner 66002 Truck&Auto Supply, Inc. 592.33 Automotive Supplies 66003 U S Bank 3,957.00 Administrative Fees Re Series 20110 Certificates of Participation 66004 Ultra Pure Metal Finishing, Ina 246.84 Reconciliation User Fee Refund Program 66005 United Way 245.00 Employee Contributions 66006 Universal Alloy Corp. 496.53 Reconciliation User Fee Refund Program 66007 UOP,L.L.C. 208.42 Reconciliation User Fee Refund Program 68008 UWMC Hospital Corp. 21,927.73 Reconciliation User Fee Refund Program 66009 Veils Circuits,Inc. 1,898.92 Reconciliation User Fee Refund Program 66010 Verizon California 63.23 Telephone Services 66011 Verteq Process Systems 721.37 Reconciliation User Fee Refund Program 66012 VWR Scientific Products Corporation 218.18 Lab Parts&Supplies 66013 Wally Machinery and Tool Supply,Inc. 189.54 Mechanical Parts&Supplies 66014 Waxie Sanitary Supply 3,232.60 Mechanical Ports&Supplies 66015 Welding Training Solutions,Inc. 600.00 Training Registration H:NdepnAn12t01CRANEiFAHR�FAHR2004INOVEMHEMOsIme Paid Report-101504.x1s EXHIBIT A W21 Oft Page 10 of 11 1118l2004 v c � o Claims Paid From 10101/04 to 10116/04 Warrant No. Vendor Amount Description 66016 West-Llte Supply Company, Inc 7.98 Electrical Supplies 66017 Winonics 4,264.31 Reconciliation User Fee Refund Program 66018 Court Order 597.50 Wage Garnishment 66019 Todd A.May 131.89 Safety Supplies 66020 California Municipal Treasurers Assoc 50.00 Accounting Meeting Registration 66021 Local Agency Formation Commission 1,150.00 Annexation Fees 66022 Nicholas Natty 660.00 Attorney Services Re I.N.S Work Visa Petition Process 66023 Orange County Sanitadon District 14,944.44 Wcrkefa Ccmp. Reimb. 66024 State Board of Equalization 500.00 Annexation Fee 66026 State Board of Equalization 300.00 Annexation Fee 66028 Carol T. Beekman 718.34 Meeting/Training Expense Reimbursement Total Accounts Payable-Warrants $ 5,451,903.16 Payroll Disbursements 35340-35601 Employee Paychecks $ 60,906.13 Corrections&Retirement&Retro Payments* 35602-35714 Employee Paychecks 156,805.06 Biweekly Payroll 10/13/04 35715-35716 Employee Paychecks 448.70 Reissued Check&Retro Payment 103512-104053 Direct Deposit Statements 1,015,836.45 Biweekly Payroll 10/13/04 Total Payroll Disbursements $ 1,233,998.34 'Chedm 35340-36343 were Issued to September but not reported. Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 819,391.76 Biweekly Payroll 10/13/04 JP Morgan Chase Bank 45,781.91 September Interest Payment on Series 1993 Certfticates of Participation JP Morgan Chase Bank 113,638.41 Societe Generale September Swap Payment on 1993 Series Certificates of Participation Total Wire Transfer Payments $ 978,812.08 Total Claims Paid 10101104-10/16104 $ 7,664,711.58 H:ldept ffn1z10 GRANEtiFAHMFAHR2004WOVEMBER\Calms Paid Report-101504.xle EXHIBIT A t1n1210Ac Page 11 of 11 1118*004 C � Claims Paid From 10/18/04 to 10/31/04 Warrant No. Vendor Amount Description Accounts Payable-Warrants 66027 Air Products&Chemicals,Inc. $ 27,267.39 0&M Agreement Oxy Gen Sys MO 8-8-89 66028 Basic Chemical Solutions,L.L.C. 49,632.64 Sodium Biaulfite&Sodium Hydro)dde 66029 Black&Veatch Corporation 91,749.59 Engineering Services J-77&5-58 66MO Blue Cross of California 338,945.11 Medical Insurance Premium 66031 Boyle Engineering Corporation 44,120.41 Professional Services 1-2-4 66032 Brown&Caldwell 243,711.12 Professional Services 132-90 66033 CH2MHill 40,232.00 Engineering Services-Urban Runoff Study 66034 Delta Dental 55,298.71 Dental Insurance Plan 66035 Environments)Science Associate 32,664.55 Professional Services J-40-5&J-40-10 66036 Flo-Systems,Inc. 38,000.20 Submersible Dry Pit Pump with Submersible Motor 66037 Fortis Benefits Insurance Company 29,245.18 Long-Term&Short-Term Disability Ins.Premium 66038 GHD,L.L.C. 56,060.50 Professional Services-Implementation of Asset Management Strategic Plan 66039 Houston&Harris PCS,Inc. 39,783.03 Sewerline Cleaning-City of Tustin&Unincorporated County Property 66040 HDR Engineering,Inc. 27,262.23 Professional Services J-40-10,P2-82&SP-74 66041 Kaiser Foundation Health Plan 60.522.08 Medical Insurance Premium 66042 Kemiron Companies,Inc. 99,161.02 Ferric Chloride MO 9-27-95 66043 Malcolm Pimie,Inc. 45.855.20 Professional Services J-79 66W MDS Consulting 34,125.00 Professional Services 1-2-4 66045 MWH Americas,Inc. 133,856.51 Professional Services 132-74 66(A6 Pioneer Americas,Inc. 236,349.52 Sodium Hypochlodte 66047 Polydyne,Inc. 66,128.85 CiaticnIc Polymer MO 3-11-92 66048 Psomes 64,216.00 Professional Services SP-15-Geographic Information System 66049 Sanccn Engineering,Inc. 47,300.00 Construction-Manhole Rehabilitation Program 66050 Tran Consulting Engineers 54,239.10 Engineering Services 7-21 66051 Tule Ranch/Magan Farms 243,609.20 Residuals Removal MO 3-29-85 66052 Teksystems 35,693.00 Temporary Employment Services 66053 U.S. Pero)dde,L.L.C. 116,061.53 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 66054 ARB,Inc. 1,178,956.25 Construction 7-39&7-41 66055 J F Shea Construction,Inc. 1,936,333.47 Construction 132-85,J-77,J-35-1,J-35-2 66056 J R Filanc Construction 1,562,080.50 Construction P1-76 66057 Margate Construction,Inc. 382,434.93 Construction P1-37&J-67 66058 Clason Construction,Inc. 160,569.00 Construction P2-82 66059 Southern Contracting Company 72,346.00 Construction J-33-IA 66060 Torrey Pines Bank 173,564.50 Construction 131-76,Retention 66061 Union Bank of California 130,995.14 Construction 7-41,Retention 66062 Abrasive Engineering Tool&Equipment 25.86 Hardware 66063 Absolute Standards,Inc. 205.00 Lab Parts&Supplies 66064 Accounting Options,Inc. 103350.56 Temporary Employment Services 66065 AccuStandard,Inc. 567.75 Lab Supplies 66066 Acoustical Material Services 1,479.61 Ceiling Tile 66067 Advance Business Graphics 1,628.53 Forms 66068 Agilent Technologies,Inc. 872.78 Lab Parts&Supplies 66069 Airco Filter Service 2,057.42 Filters H:ldeptffn1210\CRANEIFAHR\FAHR2004WOVEMBEMCIatms Pa!d Repert-103104.YIs EXHIBIT B fln/210Ac Page 1 of 9 1118f2004 Claims Paid From 10/16104 to 10131104 Warrant No. Vendor Amount Description 66070 Airgas Safety,Inc. 1,571.07 Safety Supplies 66071 Airway Packing&Shipping,Inc. 237.05 Freight Charges 66072 Aico Products,Inc. 292.93 Janitorial Supplies 66073 Alhambra Foundry Co.,Ltd. 3.986.75 Manhole Frames&Covers 68074 American Red Cross 235.00 CPR Training&Miscellaneous Supplies 66075 American Training Resources,Inc. 537.31 Video-Forklift Safety 66076 Analysts,Inc. 589.58 Testing Kits 66077 Aquarium Doctor 105.44 Human Resources Aquarium Service 66078 Aquatic Testing Laboratories 1,000.00 Toxicity Testing 66079 Arch Wireless 1,592.60 Paging Service-Airtime,Service&Equipment 66080 Asset Management Solutions,L.L.C. 5,301.39 Professional Services-PeopleSoft Pilot Program for Fleet Services Stall 66081 AKM Consulting Engineers 7,963.20 Professional Services 7-36&7-41 -Trunk Sewer Improvements 66082 American Telephone&Telegraph Corp. 24.47 Telephone Service 66083 Baker Tanks 560.00 Tank Rentals 66084 Battery Specialties 979.64 Batteries 66085 Bell Pipe&Supply Co. 871.70 Mechanical Parts&Supplies 66086 BioMerleux Vitek,Inc. 558.65 Lab Supplies 66087 Bondlcgistix,L.L.C. 6,209.56 Prof.Serv.-Preparation of Interim Arbitrage Rebate Report-Series 2000"B"Series CON 66088 Brinderson 13,938.00 Professional Services 132-79 66089 C.S.U.F. Foundation 11,079.50 Membership-Center for Demographic Research 66090 California Auto Collision 2,447.99 Vehicle Repairs-V-478,V-525&V-486 66091 California Hazardous Services,Inc 4,200.00 Underground Storage Tank Cleaning 86092 Southern California Marine Institute 11,390.00 Ocean Monitoring Vessel Support 66093 Calply 755.00 Ceiling Tile 66094 Caltrcl,Inc. 6,894.59 Valves 66095 Cameron Welding Supply 163.51 Welding Supplies 66096 Cardlock Fuel Systems,Inc. 15,574.14 Fueling District Vehicles at Local Gas Stations 66097 Carleton Engineers&Consultants,Inc. 3,880.00 Engineering Services-Air Quality 66098 Carcilo Engineers 20,160.93 Professional Services 132-60&Coordinated Commercial Enterprise Project 66099 City of Fullerton 4,050.00 Manhole Grade Adjustments-City of Fullerton 66100 Cole-Parmer Instrument Co. 238.05 Lab Parts&Supplies 66101 Columbia Analytical Services,Inc. 600.00 Analysis of Wastewater,Industrial Wastewater&Biosolids 66102 Compressor Components of California 3,058.00 Compressor Repair&MainL Services 66103 Computer Sciences Corp. 12,933.12 Consulting&Lab Services-Assay Pilot Project 66104 Consolidated Elect. Distributors,Inc. 4,065.26 Electrical Supplies 66105 Consumers Pipe&Supply Co. 761.39 Plumbing Supplies 66106 Continental Exhibitions,Inc 725.00 Safety&Health Division Meeting Registration 66107 Cooper Cameron Corporation 1,093.13 Valves 66108 Corporate Business Interiors 3,976.01 Modifications to Cubicles at Human Resources Bldg. 66109 Corporate Express 2,102,42 Office Supplies 66110 Corporate Image Maintenance,Inc 160.00 Custodial Services Spec. No.9899-09 66111 Ccrtech Engineering 4,397.14 Pump Parts&Supplies 66112 Counterpart Enterprises,Inc. 1,782.20 Mechanical Parts&Supplies 66113 County Wholesale Electric Co. 351.60 Electrical Parts&Supplies H:Wepri6n\2104RANEIFAHRIFAHR2004WOVEMSEMOulms Pstd Report-108104.xls EXHIBIT B ennl one Page 2 of 9 11�912ao4 b � A Claims Paid From 10/16104 to 10131/04 Warrant No. Vendor Amount Description 66114 Cytec Industries,Inc. 7,495.93 Anionic Polymer 66115 California Special Districts Association 170.00 Training Registration 66116 CWEA Membership 388.00 Membership-Calif.Water Environment Assoc. 66117 CXtec 6,384.60 Computer Hardware 66118 David's Tree Service 1,075.00 Tree Maint.Service 66119 Del Mar Analytical 5,516.00 Analysis of Blosoiids and Wastewater 66120 Deli Computer 19.374.51 (2)Server Arrays&(8)Server Hard Drives 66121 Dunn-Edwards Corporation 13217.33 Paint Supplies 66122 DGA Consultants,Inc. 4,106.00 Professional Services-CCTV Data Evaluation&Support 66123 Ecology Control Industries 8,619.67 Hazardous Waste Disposal 66124 Elsevier Science 1,321.00 Publication 66126 Enchanter,Inc. 4,500.00 Ocean Monitoring&Outfall Inspection&Maintenance 66126 Environmental Microbiology Consulting 2,720.00 Lab Services-Research Primary Settlings In Pit.2 Basins 66127 Environmental Resource Association 1,461.60 Lab Parts&Supplies 66128 Equepac 2,024.80 Hydrochloric Acid 66129 ESRI,Inc. 2,331.00 Programming&Database Systems Division Meeting Registration 66130 FedEx Corporation 985.04 Freight Services 66131 First American Real Estate Solutions 658.00 On-Line Orange County Property Information 66132 Fisher Scientific 20,772.93 Lab Supplies 66133 Fluor Enterprises,Inc, 5,177.56 Engineering Services SP-81 66134 Fountain Valley Rancho Hand Wash 722.90 Truck Wash Tickets or Gasoline 66135 Franklin Covey 645.83 Office Supplies 66136 From Profiles 660.60 Human Resources Background Checks 66137 Frontline Management,Inc. 1,193.61 Controller 66138 Fry'a Electronics 224.05 Computer Supplies 66139 Full Spectrum Anaiytics 696.98 Instrument Repair&Maintenance Service 66140 Full Spectrum Anslytics,Inc. 782.10 Instrument Repair&Maintenance Service 66141 FT,Inc. 825.00 Forms-Accounts Payable Check Stock 66142 G. E.Supply 773.30 Electrical Parts&Supplies 66143 Genahl Lumber Company 96.98 Lumber/Hardware 66144 George T. Hall 53.88 Electrical Supplies 66145 George Yardley Co. 1,434.65 Lab Supplies 66146 Getinge Castle 908.50 Lab Equipment Maintenance&Service 66147 Gieriich-Mitchell,Inc 95.27 Mechanical Parts&Supplies 66148 Grainger,Inc. 1,161.60 Electrical Parts&Supplies 66149 Grating Pacific,Inc. 1,317.03 Welded Steel Grating 66150 Great Western Sanitary Supplies 100.03 Janitorial Supplies 66151 Guarantee Records Management 189.66 Off-Site Records Storage 66162 Hach c/o Pontan Industries 186.68 Lab Parts&Supplies 66153 Hach Company 427.02 Electrical Parts&Supplies 66154 Harold Primrose Ice 55.50 Ice For Samples 66155 Harrington Ind. Plastics 848.35 Mechanical Parts&Supplies 66156 Harrington Industrial Plastics,Inc 3,523.03 Mechanical Parts&Supplies 66157 Home Depot 935.84 Misc.Repair&Maintenance Material H:\daryfl4n12105CRANEiFAHRIFAHR2004WOVEMBERICialms Peld Report-10 IGO[s EXHIBIT B nn/Mft Page 3 of 9 111erim Claims Paid From 10/16/04 to 10/31/04 Warrant No. Vendor Amount Description 66158 Hopkins Technical Products 3,027.12 Valves 66159 Hub Auto Supply 661.02 Vehicle Parts&Supplies 66160 City of Huntington Beach 552.34 Water Use 66161 Industrial Distribution Group 5,793.52 Mechanical Parts&Supplies,Paint,Locke&Tools 881$2 Industrial Threaded Products,Inc. 1,073.27 Mechanical Parts&Supplies 66163 Innertine Engineering 2,324.01 Sewerllne Video Inspection-7-39 66164 Iron Mountain 86.06 Bid Document Storage Fees P1-37 66165 Irvine Ranch Water District 3.90 Water Use 66166 Irvine Technology Corporation 20,784.00 Temporary Employment Services 66167 Isco,Inc. 5,129.73 Controller Assemblies 66168 ISI,Inc. 1.663.80 Software Maintenance&Support 66169 J&L Industrial Supply 451.11 Mechanical Parts&Supplies 66170 Jays Catering 751.41 Meeting Expenses 66171 Kforce,Inc. 806.99 Temporary Employment Services 66172 Klenow Associates,Inc. 7,235.48 Legal Services 1-2-4 66173 Lab Safety Supply,Inc. 340.52 Lab Parts&Supplies 66174 Lee&Ro,Inc. 18,809.82 Professional Services 5-51 &5-52 66175 Lucci's Gourmet Foods,Inc. 37.50 Meeting Expense 66176 Lustre-Cal 621.75 OCSD Decals 66177 LINJER 5,029.06 Professional Service-DART MO 9-22-99 66178 Mac&Associates,An Industrial Dist.Co. 654.58 Valves 66179 Managed Health Network 955.80 Employee Assistance Program 66180 Mason West,Inc. 995.61 Mechanical Parts&Supplies 66181 Mayer,Brawn,Rowe&Maw,L.L.P. 5,000.00 Professional Services-Strategic Planning&Advocacy 66182 McMaster-Carr Supply Co. 2,015.65 Mechanical Parts&Supplies 66183 McRay Industries,Inc. 11,438.63 Mechanical Parts&Supplies 66184 Medlin Controls Co. 473.52 Instrument Supplies 66185 Mid-West Associates 989.12 Pump Supplies 68186 Midway Mfg.&Machining Co. 14,368.10 Mechanical Parts&Supplies 66187 Mission Abrealve&Janitorial Supplies 207.96 Janitorial Supplies 66188 Mitchell Instrument Co. 1,136.00 Instrument Parts&Supplies 66189 Moreland&Associates 8.655.00 Auditing Services MO 3-8-95 66190 Motion Industries,Inc. CA 55 1,535.98 Mechanical Parts&Supplies 66191 National Fire Protection Asscciation 580.50 Subscription 66192 National Plant Services,Inc. 17,060.00 Vacuum Truck Services 66193 National Seminars Group 179.00 Training Registration 66194 Neal Supply Co. 29.70 Mechanical Parts&Supplies 66195 Nextel Communications 1,216.62 Cellular Phones&Air Time 66196 Ninyo&Moore Corporate Accounting 9,734.00 Professional Services-Materials Testing,Inspection&Geotechnical Engrg. 66197 Norlab 189.60 Chemicals 66198 Numatic Engineering 188.69 Mechanical Parts&Supplies 66199 Office Depot Business Services Div. 503.64 Office Supplies 66200 OneScurce Distributors,Inc. 2,230.12 Electrical Parts&Supplies 66201 Orange County Hose Company 82.92 Hydraulic Hose Supplies&Parts H:\depn1fn12i MRANE\FAHRTAHR2004\NOVEMBEMClalrns Paid Report-103104.xls EXHIBIT B final one Page 4 of 9 11varim 4 0 C ' A Claims Paid From 10110104 to 10131104 Warrant No. Vendor Amount Description 66202 Orange Courier 88.70 Courier Services 66203 Orange Fluid System Technologies,Inc 343.05 Plumbing Parts&Supplies 66204 Osterbauer Compressor 2,535.52 Mechanical Supplies 66205 Oxygen Service Company 470.49 Specialty Gases 66208 OCB Reprographics 6,509.00 Printing Service-MO 1/26100 66207 Pacific Bell Internet Services 328.93 Internet Service 66208 Pacific Mechanical Supply 2,212.69 Plumbing Supplies 66209 Parker Supply Company 5,664.06 Mechanical Parts&Supplies 66210 PenValve 206.20 Plumbing Parts&Supplies 66211 Perma Pure,Inc. 178.08 Lab Parts&Supplies 66212 Power Measurement USA,Ina 73003.75 Software Upgrade&Support 66213 Primary Source Office Furnishings,Inc. 75.00 Office Furniture 66214 Proplpe 2,003.90 CCTV Sewerline Inspection-City of Tustin 66215 Prudential Overall Supply 13939.30 Uniforms&Misc.Supplies 66216 PCS Express,Ina 122.00 Courier Service 66217 Rseo Manufacturing&Engineering Co. 524.88 Computer Hardware/Softwore 66218 Rainbow Disposal Co. 2,816.57 Trash Removal 66219 Rellostar 9,889.50 Employee Basic Life&Managers'Insurance Premiums 66220 Ricoh Business System 1,623.90 Color Copier Lease 66221 RMS Engineering&Design,Inc. 1,370.00 Engineering Services-Covering 12V Switchgeor at Pit.2 66222 RPM Electric Motors 172.40 Motor 66223 Safetycore,Inc. 263.21 Safety video 66224 Santa Ana Reg.Water Duality Control 522.00 Permit Fees-Projects 6-51 6-52 66225 Schwing America,Inc. 1,388.70 Valves 66226 Scottel Voice&Data,Inc. 2,284.80 Telephone System Maintenance 66227 Seton Name Plate 415.78 Reflective Traffic Safety Sign 66226 Sewer Equipment Company of America 124.23 Hose Guides 66229 Shamrock Supply Co.,Inc. 898.23 Janitorial Supplies 66230 Shureluck Sales&Engineering 1,117.78 Mechanical&Paint Supplies 66231 Sigma-Aldrich,Inc. 866.32 Lab Parts&Supplies 66232 Smardon Supply Company-Fountain Valley 123.95 Mechanical Parts&Supplies 66233 Smith Pipe&Supply 450.17 Plumbing Supplies 66234 Smith-Emery Company 12.611.25 Soils,Concrete&Other Materials Testing 66235 So. Col.Gas Company 22.726.70 Natural Gas 66236 Southern Califomia Edison 18,002.25 Power 66237 Southern Califomis Edison Co. 23,522.69 Construction-SCE/OCSD Projects 5-51 &5-52 66238 Southern Callfomia Edison 2,255.52 Power 66239 Southern Counties Lubricants 2,e66.49 Engine 011 66240 Southwest Scientific,Inc. 2,880.16 Instrument Parts&Supplies 66241 Summit Steel 2.175.58 Metal 66242 Sunset Ford 228.01 Auto Parts&Service 66243 Sunset Industrial Parts 147.29 Mechanical Supplies 66244 Technical Service Group,Ina 1,381.60 SCADA System VAX Service Agreement 66245 Systime Computer Corp. 4,350.00 Professional Services-EnterpriscOne FIS System Upgrade&Support WderAftliMCRANEIFAHRIFAHR20041NOVEM13ER1Clalms Pold Report-i=04.x1s EXHIBIT B %1210nc Page 5 of 9 1118n004 Claims Paid From 10/16/04to 10131/04 Warrant No. Vendor Amount Deacription 66246 SARBS 135.00 Environmental Compliance Services Division Meeting Registration 66247 The Walking Man,Inc. 1,060.00 Public Notice Printing&Mailing Services Various Projects 66248 Thompson Industrial Supply,Inc. 11,030.19 Mechanical Parts&Supplies-Rebuild Shop 66249 Tanya Lack&Safe Service&Sales 104.92 Locke&Keys 66250 Townsend Public Affairs 5.000.00 Legislative&Executive Advocate for Grant Funding 66251 Southern California Trane Service 116.18 Valves 66252 Truck&Auto Supply,Inc. 169.42 Automotive Supplies 66253 The Unisource Corporation 134.43 Office Supplies 66254 United Parcel Service 93.60 Parcel Services 66255 UC Regents 1,250.00 Membership 66256 US Equipment Co.,Inc. 223.24 Mechanical Parts&Supplies 66257 The Vantage Group,L.L.C. 23,850.00 Temporary Employment Service 66258 Vapex,Inc. 472.00 Pumps 66259 Varian,Inc. 2,158.62 MS Workstation Upgrade 66260 Verizon California 2,080.94 Telephone Services 66261 Veme's Plumbing 330.00 Service Contract-Testing&Cert. Back low Devices at Pits. 1 &2&Pump Ste. 66262 Vision Service Plan-(CA) 9,540.96 Vision Service Premium 66263 Vortex Corp. 989.95 Door Repair&Maintenance Service 66264 VWR Scientific Products Corporation 8,367.27 Lab Parts&Supplies 66265 The Wackenhut Corporation 6,008.30 Security Guards 66266 Water 3 Engineering,Inc. 5,991.64 Engineering Services J-67 66267 Waxie Sanitary Supply 878.24 Janitorial Supplies 66268 West Texas A&M University 5,700.00 Olfactometry Analyses 66269 West-Lite Supply Company,Inc. 202.52 Electrical Supplies 66270 Westport Aparatus DBA Breaker Supply 247.64 Electrical Parts&Supplies 66271 Xerox Corporation 1,142.73 Fax&Copier Leases 66272 Xpedex Paper&Graphics 221.34 Office Supplies 66273 Ararat Construction Co.,Inc. 19,408.37 Construction P1-62 66274 California Bank&Trust 8.038.00 Construction J-33-1A,Retention 66275 Orange Community Bank 17,841.00 Construction 132-82,Retention 66276 Matt Adams 259.47 Meeting/Tralning Expense Reimbursement 66277 Jose C.Ambriz 170.07 MeetingFfralning Expense Reimbursement 66278 Donald R.Cleveland 51.00 Meetingffralning Expense Reimbursement 66279 David P.Halverson 662.74 Meetfng£fraining Expense Reimbursement 66280 Michael H. Harting 666.44 Meeting/Tralning Expense Reimbursement 66281 Vincent S.Lockyer 170.00 Meeting/Training Expense Reimbursement 66282 Henry E.Lorimer 428.00 Meeting/Trainfng Expense Reimbursement 66283 Rfaz K. Moinuddin 932.85 Meeting/Tralning Expense Reimbursement 66284 Jamienn M. Quests 118.52 Meeting/Training Expense Reimbursement 66285 Donald W. Ragan 757.80 Meeting/Tralning Expense Reimbursement 66286 Ernest R. Sevedra 90.00 Meeting/Training Expense Reimbursement 66287 Duane T. Smith 259.47 Meetfng/fraining Expense Reimbursement 66288 Douglas M.Stewart 1,956.00 Meeting/Training Expense Reimbursement 66289 Robert J.Taylor 537.33 Meeting/Training Expense Reimbursement ti:Wept\fln12101CRANMFAHR\FAHR2004W OVEMSEMaelms Paid Report-103104.xis EXHI BIT B Ilnnlcaa Page 6 of 9 111WW eo e, Claims Paid From 10116104 to 10/31/04 Warrant No. Vendor Amount Description 66290 Robert J.Thiede 167.75 Meeting/Training Expense Reimbursement 66291 Shane A Towns 259.47 Meeting/Training Expense Reimbursement 66292 Walter W. Williams 170.07 Meeting/Training Expense Reimbursement 66293 Steve Anderson 706.00 Meeting/Training Expense Reimbursement 66294 Donald Hughes 641.92 Meeting/Training Expense Reimbursement 66295 Mari Isodo and Anton Richardson, 6,500.00 Claim Settlement-Vehicle Accident 66296 Wild Rivers Waterpark 1,263.50 Reimbursable Employee Activity Expense 66297 Yumi Iseda and Mari Isoda 3,500.00 Claim Settlement-Vehicle Accident 66298 California Recreation Company 300.00 Boat Slip Rental-Ocean Monitoring Vessel 66299 Southern California Edison 121,707.11 Power 66300 Woodruff,Spradlin&Smart 161,490.35 Legal Services MO 7-26-95 66301 Air Cleaning Solutions 992.00 Freight Charges 66302 Airgas Safety,Inc. 1,000.21 Safety Supplies 66303 Analytical Planning Services,Inc. 945.00 Professional Services J-67 66304 ASCE-HHTG-Hydrology&Hydraulics 46.00 Engineering&Construction Division Meeting Registration 66305 AT&T Universal Biller 2,920.10 Telephone Service 66306 American Telephone&Telegraph Corp. 195.40 Telephone Service 66307 Basler Electric Company,Department 590 2,881.23 Generator Protection System&24V Power Supply 66308 Beau Geste Enterprises 6,500.00 On-Site Training 66309 California Auto Collision 1,513.58 Repairs&Maintenance Service-V-486 66310 Caltrol,Inc. 10,259.89 Electrical Parts&Supplies 68311 Court Order 150.00 Wage Garnishment 68312 Consolidated Elect. Distributors,Inc. 1,643.29 Electrical Parts&Supplies 66313 Consumers Pipe&Supply Co. 14.39 Plumbing Supplies 66314 Corporate Express 2,571.44 Office Supplies 66315 County of Orange 182.14 Wage Garnishment 66316 Court Trustee 69.12 Wage Gamishment 66317 Department of Child Support Services 168.50 Wage Garnishment 66318 DHL Express(USA),Inc. 45.68 Freight Services 66319 Employee Benefits Specialists,Inc. 9,792.38 Reimbursed Prepaid Employee Medical&Dependent Care 66320 Court Order 445.00 Wage Garnishment 66321 Fed Ex Corporation 149.62 Freight Services 66322 Fisher Scientific 776.72 Lab Supplies 66323 Fleetcor 113.79 Gasoline&Lubricants 66324 Franchise Tax Board 100.00 Wage Garnishment 66325 Get Motivated Seminars,Inc. 98.90 Project Management Office Meeting Registration 66326 Graybor Electric Company 100.18 Cabinets for CRISP Hardware System-Bacteria Reduction Program 66327 Industrial Threaded Products,Inc. 82.72 Mechanical Parts&Supplies 66328 internal Revenue Service 300.00 Wage Garnishment 66329 internal Revenue Service 200.00 Wage Garnishment 66330 Intl.Union of Oper.Eng.AFL-CIO Local 501 3,887.42 Dues Deduction 66331 Irvine Rench Water District 37.19 Water Use 66332 Kelly Paper 352.99 Paper e6333 L&N Image Apparel 371.26 (20)OCSD Shirts-Employee Incentive Program H:Wept1En12101CRANEIFAHRTMR2004WOVEMHERICIalms Psld Report-1031G4.xls EXHIBIT B nnnlOAc Page 7 of 9 111=04 Claima Paid From 10/16104 to 10/31104 Warrant No. Vendor Amount Description 66334 MessMutual Michel Financial Group 2,604.14 Executive Disability Plan Premium 66335 McMaster-Carr Supply Co. 746.97 Mechanical&Safety Supplies 66336 Mechanical Drives Co. 91.46 Instrument Supplies 66337 Midway Mfg&Machining Co. 8,835.50 Repair&Maintenance Service-(2)Belt Press Driver Rollers 66338 Mike Prlich&Sons 6.038.00 Engineering Services-Install 72"ID Manhole 66339 Court Order 225.00 Wage Garnishment 66340 Motion Industries,Inc. CA 55 30.01 Repair&Maintenance Material 68341 MSA-CIO Geoff Cobbett 85.00 Membership 66342 National Bond&Trust 2,462.28 U.S.Savings Bonds Payroll Deductions 66343 Neal Supply Co. 13.49 Freight Charges 66344 Orange Fluid System Technologies,Inc. 549.20 Mechanical Parts&Supplies 66345 Oxygen Service Company 266.59 Specialty Gases 66346 OCEA 607.86 Dues Deduction 66347 Pacific Mechanical Supply 313.00 Plumbing Supplies 66348 Partners Consulting Services 22,080.00 FIS On-Site Support-One World XE Migration Project 66349 Court Order 296.00 Wage Garnishment 66350 Peace Officers Council of CA 1,602.00 Dues Deduction 66351 Process Equipment Company 5,128.80 Replacement of Power Building Double Doors 66352 Pump Engineering 31.94 Freight Charges 68353 R.L.Abbott&Associates 3,000.00 Kern County Blosolids Consulting Services 66354 Reilly&Associates 5,915.10 Investigative Services 66355 Schwing America,Inc. 769.34 Repair&Maintenance Service on Schwing Truck Loading Pumps 1,2&3 66356 Soott Specialty Gases,Inc 25.86 Demurrage 66357 Seel's Compressed Gases 39.76 Oxygen Bottle Refills for Medical Team 66358 Shureluck Sates&Engineering 2,727.27 Mechanics]Parts&Supplies e8359 Sks]ar,Inc. 1,295.00 Installation&Training on Skslar Analyzer 66360 Smith-Emery Company 260.00 Scils,Concrete&Other Materials Testing 66361 Court Order 721.50 Wage Garnishment 66362 Southern California Edison 29.99 Power 66363 Summit Steel 341.59 Metal 66364 Systime Computer Corp. 23,900.00 Professional Services-EnterpriscOne FIS System Upgrade&Support 66365 SBC 1,726.89 Telephone Services 66366 SBC Long Distance 73.81 Telephone Services 86367 Thompson Industrial Supply,Inc. 3.198.97 Mechanical Supplies 66368 The Unisource Corporation 223.44 Office Supplies 66369 United Parcel Servioe 6,811.52 Parcel Services 66370 United Way 245.00 Employee Contributions 66371 Univar USA 270.37 Chlorine 66372 Verizon 49.78 Telephone Servloe 66373 Verizon California 5,412.90 Telephone Services 66374 Xerox Corporation 2,631.90 Fax&Copier Leases 66375 Court Order 597.50 Wage Garnishment 66376 Aram C.Chanhbazien 188.77 User Fee Refund Regarding Septic Tanks 66377 Bernal Peralts Trust 1,003.95 User Fee Refund Regarding Septic Tanks H:\dapt\ffn\2iO\CRANE\FAMR\FAHFt2CG4\NC3VEMSEMCIalms Pald Report-1031 G4.xis EXHIBIT B 11n12/0llc Page 8 of 9 11/6=04 m < b Claims Paid From 10116/04 to 10131104 Warrant No. Vendor Amount Description 66378 Betsy Causey Trust 1,003.95 User Fee Refund Regarding Septic Tanks 66379 California Recreation Company 2,914.22 Temporary Boat Slip Rental-Ocean Monitoring Vessel 66380 Cecilia Gutierrez-Swanson 1,003.95 User Fee Refund Regarding Septic Tanks 66381 County of Orange-Auditor Controller 825.00 Administrative Processing Fee for Supplemental Sewer Fee Adjustments/Cancellations 66382 Darrin IGnney 1,003.06 User Fee Refund Regarding Septic Tanks 66383 Derrick Garda 1,003.95 User Fee Refund Regarding Septic Tanks 66384 Hartford Fire Insurance Company 1,008.14 Claim Settlement-Vehicle Accident 66385 Jerome Kult 1,418.21 User Fee Refund Regarding Septic Tanks 66386 Joel Verduzoo 1,003.95 User Fee Refund Regarding Septic Tanks 66387 Marcleno Santiago 1,681.27 User Fee Refund Regarding Septic Tanks 66388 Oscar Abreu 1,418.21 User Fee Refund Regarding Septic Tanks 66389 SARBS 135.00 Training Registration 66390 Wiliam Hopkins 1,003.95 User Fee Refund Regarding Septic Tanks 66391 SBC 6,169.00 Telephone Services Total Accounts Payable-Warrants $ 9,154,490.61 Payroll Disbursements 35717-35724 Employee Paychecks $ 20,178.69 EMT Retro Payroll&Correction 35725-35817 Employee Paychecks 149,500.39 Biweekly Payroll 10/27/04 35818-35820 Employee Paychecks 4.379.34 Termination Paychecks&Reissue Check for Direct Deposit Void 104054- 104590 Direct Deposit Statements 1,086,018.06 Biweekly Payroll 10/27/04 Total Payroll Disbursements $ 1,260,076.38 Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 799,717.99 Biweekly Payroll 1 G127/04 U.S. Bank 354.208.61 October Interest Payment for Series 2000,A&B Certificates of Participation Total Wire Transfer Payments $ 1,154,626.60 Total Claims Paid 1 0/1 6104-1 0/31/04 $ 11,569,193.59 H:WerMW2101CRANEIFAHRXFAHR2004WOVEMBEMCIaima Paid Repert-1031GOIs EXHIBIT B W210nc Page 9 of 9 11W2004 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 11/17/04 AGENDA REPORT Item Number Item Number 9a Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Bob Chenowith, Senior Engineering Associate SUBJECT: PROPOSED ANNEXATION NO. OCSD-45 — BOLLEN ANNEXATION GENERAL MANAGER'S RECOMMENDATION (1) Receive and file petition from Rene Bollen requesting annexation of 1.30 acres to Orange County Sanitation District, in the vicinity of Randall Street and Meads Avenue, in an unincorporated area of Orange County; and (2) Adopt Resolution No. OCSD 04-27, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-45 — Bollen Annexation). SUMMARY • OCSD received a request from Rene Bollen to annex one (1) parcel which totals 1.30 acres to OCSD. This parcel will be connected to an existing OCSD 12-inch sewer on Randall Street. • This parcel will be annexed to the City of Orange. There is an existing three (3) bedroom home on the Bollen property. The property owner will build a new two (2) bedroom guest house on the same property. • Orange County Sanitation District will collect the sewer inspection and sewer capacity fees for both homes as shown in the cost summary. The assessor parcel number is 379-561-06. PROJECT/CONTRACT COST SUMMARY This annexation is in accordance with the terms of the negotiated agreement with the County of Orange regarding A.B.8 Tax Exchange for annexing properties. The Board of Directors approved this action and it became effective March 14, 1989. Under this Tax Exchange, OCSD does not receive a percentage of the basic levy, and instead, collects a higher annexation fee. The fee of $7,549.00 includes the following: LAFCO Processing Fee $ 1 ,150.00 OCSD Processing Fee 500.00 State Board of Equalization Processing Fee 350.00 CA Environmental Quality Act Filing Fee 43.00 OCSD Annexation Acreage Fee $ 5,506.00 TOTAL ANNEXATION FEE $ 7,549.00 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. 11/17/04 AGENDA REPORT Item Number Item 9 Number _ b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Adam Nazaroff, Associate Engineer III SUBJECT: EFFLUENT PUMP STATION ANNEX, JOB NO. J-77 GENERAL MANAGER'S RECOMMENDATION Ratify the purchase of an easement from the County of Orange Resources Management Development Department for the Effluent Pump Station Annex, Job No. J-77, in an amount not to exceed $7,500, in a form approved by General Counsel. SUMMARY • Effluent Pump Station Annex (EPSA), Job No. J-77, will replace the existing Foster Booster Pump Station with a new pumping facility that is capable of providing adequate back up capacity to the existing Ocean Outfall Booster Station (OOBS), during excess flow events and routine maintenance. • The needed easement is 864 square feet in area and is required for this project to construct a junction box on the County of Orange Resources Management Development Department property. The land is located adjacent to the fence line on the east side of Treatment Plant No. 2. PRIOR COMMITTEE/BOARD ACTIONS Prior Committee and Board actions for Effluent Pump Station Annex (EPSA), Job No. J-77, are not applicable to this item. PROJECT/CONTRACT COST SUMMARY Please see attached Budget Information Table. The total cost for this easement is $7.500 for processing, appraisal, and land costs. BUDGETIMPACT X This item has been budgeted. (Line item: Section 8, Page 81 ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) FI:\dep1\agenda0oard Agenda Reports\2004 Board Agenda Roports\1104\Item 9(b).J•77 Easement.doc Revised: 06/04/03 Page 1 ADDITIONAL INFORMATION The subject project is in the construction phase at this time. A portion of Junction Box "C" that will be built under the subject project will be on the County of Orange Resources Management Development Department property. Orange County Sanitation District legal counsel has reviewed the proposed Easement Deed and found it to be acceptable with no comments. ALTERNATIVES None CEQA FINDINGS The rehabilitation of Foster Pump Station (FPS) was included in the 1999 Strategic Plan Environmental Impact Report (EIR). The EIR was certified on October 27, 1999, and a Notice of Determination was filed on October 29, 1999. A supplemental EIR (SEIR) was completed for update of the Program EIR to reflect replacement of FPS rather than the rehabilitation indicated in the Strategic Plan. The SEIR was approved by the Board in December 2002. ATTACHMENT Budget Information Table AN:sa H:\ntglobal\Agenda Draft Reports\Joint Boards\J-77 agenda report accept land acq_v2.doc H:ldepl\agenda\Board Agenda ReportsQ004 Board Agenda Reports\1104\Item g(b).J-77 Easement.doc Revised: 06/04/03 Page 2 BUDGET INFORMATION TABLE Efffuent Pump Station Annex JOB NO. J-77 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS ESTIMATED ESTIMATED PROJECT/PHASE AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED TO AUTHORIZ PROPOSED TOTAL ATION EXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%) /DECREASE Phase 1 -Project Development $ 21,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 100% Phase 2-Preliminary Design $ 1,258,000 S 61,000 $ 61,000 $ 61,000 $ - $ 61.000 $ 61,000 100% Phase 3-Design $ 3,501,000 $ 4,417,000 $ 4,417,000 $ 4,387,823 $ 4,387,823 $ 4,387,823 100% Phase 4-Construction $ 43,745,000 $ 52,221 388 $ S 52.221,388 $ 48,282,296 $ - S 48.282,296 $ 11,200 000 23.2% Phase 5-Commissioning $ 376,000 1 $ 374.000 $ 374,000 S 374,000 $ 374,000 $ - 0% Phase 6-Close-Out $ 94.000 $ 95,000 $ 95,000 $ 95,000 $ 95,000 $ - 0% Phase 7-Contingency S 1.762,000 $ 4.166.612 $ S 4,166,612 Is $ PROJECT TOTAL $ 50,757,000 $ 61,338,000 $ $ 61,338,000 1 $ 53.203.119 $ - $ 53,203,119 1 $ 15,651,823 29% Reimbursable Costs I I I -] I T I I i PROJECT NET $ 50,757,000 $ 61,338,000 $ - $ 61,338,000 1 $ 53,203,119 1 $ - 1 $ 53,203,119 $ 15,651,823 29% PSA/Contract Fes,s /Const. Su ort PSA $ 2.208,810 $ 6 164,240 $ - $ 6164.240 $ 6,164240 $ - $ 6164240 $ 4,800,000 78uction Contract $ 44,735,518 $ 43,286 748 $ - $ 43.286,748 $ 43,286,748 $ - $ 43,286,748 $ 9.000,000 21 EDMS 003781789 MINUTES OF STEERING COMMITTEE MEETING Wednesday, October 27, 2004 A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, October 27, 2004 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: STAFF PRESENT: Directors Present: Blake Anderson, General Manager Steve Anderson, Chair Bob Ghirelli, Director of Technical Services Jim Ferryman, Vice Chair David Ludwin, Director of Engineering Carolyn Cavecche, Chair, OMTS Committee Carol Beekman, Director of Communications and Roy Moore, Chairman, FAHR Committee Administrative Services Shirley McCracken, Past Board Chair Jennifer Cabral, Public Information Specialist Directors Absent: Jim Colston, Legal & Regulatory Affairs Brian Donahue, Chairman, PDC Committee Liaison Jim Silva, County Supervisor Jim Herberg, Engineering Manager Ed Torres, Engineering Manager OTHERS PRESENT: Jim Burror, Senior Engineer Director Cathy Green Mike Moore, Environmental compliance & Director Tod Ridgeway Monitoring Manager Thomas L. Woodruff, General Counsel Layne Baroldi Legal & Regulatory Affairs Brad Hogin, Counsel Liaison Don Hughes, Asst. to Supervisor Silva Ann Sullivan, Principal HR Analyst Steve Bone, Robert Mayer Corp Gail Garrett, Committee Secretary Garry Brown, Orange County CoastKeeper Daniel Cozad, SAWPA Acting General Manager Marta Hayden, Newport Beach Conference &Visitors Bureau Bill Workman, City of Huntington Beach Douglas C. Traub, Huntington Beach Conference and Visitors Bureau (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS Comments were made under item 6 below. (4) RECEIVE FILE AND APPROVE MINUTES OF PREVIOUS MEETING The minutes of the September 22, 2004 Steering Committee meeting were approved as drafted. j Minutes of the Steering Committee Page 2 October 27, 2004 (5) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson introduced our Director from Huntington Beach, Mayor Cathy Green. Chair Anderson also recognized Doug Davert as the active director for the City of Tustin at tonight's Board meeting, replacing Tony Kawashima. Director Davert is also appointed to the OMTS Committee. Chair Anderson announced the meeting dates for the standing and ad hoc committees. He noted that, due to the Thanksgiving Holidays, the Board will meet a week earlier next month on November 17th. Chair Anderson also announced the November 6 christening ceremony for the "Nerissa", our new Ocean Monitoring Vessel, which will be held at the Newport Harbor Nautical Museum. Attendance is voluntary and this event is not compensable for Directors. (6) REPORT OF THE GENERAL MANAGER General Manager Blake Anderson introduced Daniel Cozad, SAWPA Acting General Manager. Mr. Cozad thanked the Board for giving Acting General Manager Bob Ghirelli authority to meet with him and discuss the current litigation between SAWPA and OCSD. General Manager Anderson noted that this item will be discussed in closed session this evening. Bob Ghirelli reported that the original estimate on the Labor Day spill was of treated and disinfected effluent into the Santa Ana River inaccurate. Further recalculation by both staff and outside experts indicated the spill was approximately 1.6 million gallons. Samples immediately following the spill showed a spike at the mouth of the Santa Ana River only although, as a precaution, the beaches were closed from Magnolia in Huntington Beach to 52nd Street in Newport Beach by the County Health Department soon after it was notified of the event. Dr. Ghirelli informed the Steering Committee that staff is preparing a report for the Regional Board next week which will be shared with our Board of Directors. He also informed the directors that the penalty against the District could be in the $100,000 to $200,000 range. Director Ridgeway questioned whether further information was received from Edison regarding the helicopter that purportedly dropped water on the power transformer. Dr. Ghirelli informed that the District has requested information on the alleged incident but has not received a response. Director Cavecche noted that the spill incident was an aberrance -the District has not had a spill into the Santa Ana River in 30 years. Dr. Ghirelli also reported on the Huntington Beach PR Fund proposal received from the Huntington Beach Visitors and Conference Bureau. He, Carol Beekman, Bob Ooten, and Jennifer Cabral met with the group and Mayor Cathy Green to discuss the group's request that OCSD pay for an advertising campaign to mitigate the bad press coverage received over the last five years. Director Tod Ridgeway introduced Douglass Traub, Steve Bone, Garry Brown, and Bill Workman, representatives of the Huntington Beach Conference &Visitors Bureau and the City of Huntington Beach. They each requested that the Sanitation District fund the public outreach campaign to improve the image of Orange County beaches and water quality, and to inform the public about the measures that have been taken to protect public health. After extensive discussion, Chair Anderson requested a meeting with Director Tod Ridgeway, Director Cathy Minutes of the Steering Committee Page 3 October 27, 2004 Green, and the mayor of Seal Beach, and other interested parties to discuss the concept, after which he will present his findings to one of the District's standing committees. Director Jim Ferryman asked whether the District's participation would be a gift of public funds. Chair Anderson requested General Counsel to offer an opinion on the matter. General Manager Anderson briefed the Committee on the impact of last night's storm. The Corps of Engineers regulated the flow in the Santa Ana River at 2500 cfs. Protective rip-rap will be added to the vulnerable section of the SARI line as soon as the flow in the river subsides. Board Agenda Item 18 will address the emergency repair costs which were originally estimated at$350,000, but are now estimated at$635,000. This will be presented to the Board tonight. The two-year transfer of the Sanitation District's property tax was forecast by staff at$16 million in June and appears to be was on target. Our 2004-2005 budget, approved by the Board in June, accounts for this loss of revenue. Director Ridgeway introduced Marta Hayden, Newport Beach Conference & Visitors Bureau. (7) REPORT OF GENERAL COUNSEL General Counsel Tom Woodruff reported an additional item has been added to Closed Session, Item D. The District has received new claims on the Bushard Trunk project. General Manager Anderson handed out an Ethics Manual for the Steering Committee to review and decide if it would benefit all Board members to receive a copy. (8) DISCUSSION ITEMS (Items A-D) A. State and Federal Legislative Advocacy Update General Manager Anderson reported that our efforts to secure additional funds for secondary treatment will continue. Under authority previously granted by the Board of Directors, Mr. Anderson will renew the three contracts with the District's lobbyists, subject to a cost reduction for ENS Resources from $180,000 to $120,000. B. California Performance Review Update Dr. Robert Ghirelli, Director of Technical Services, reported the Governor's California Performance Review (CPR) has completed its hearings and prepared a report that represents the preliminary analysis and findings of the CPR Commission. Jim Colston reported that recent news from the commission indicates the likelihood the SWRCB and RWQCBs may not be eliminated as originally proposed. Staff will continue to monitor the CPR as it moves to the Little Hoover Commission. C. Agenda Items scheduled to be presented to Committees in November were not reviewed due to time constraints. D. Agenda Items for Board of Directors Meeting of October 27, 2004 were not reviewed or considered due to time constraints. •5• w t , Minutes of the Steering Committee Page 4 October 27, 2004 (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 The next Steering Committee meeting is scheduled for Wednesday, November 17, 2004, 2004 at 5 p.m. The next Board Meeting is scheduled for Wednesday, November 17, 2004 at 7 p.m. (13) CLOSED SESSION The Committee convened at 6:32 p.m. in Closed Session, pursuant to Sections 54956.8, 54956.9, 54957 or 54957.6, to discuss five items. 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. A report of the recommended actions will be publicly reported at the time the approved actions become final. At 6:55 p.m., the Committee reconvened in regular session. (14) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Submitted by: Gail Garrett Committee Secretary H:dephagendatSteering Committee12 0 041 7 00411 02 704 SC Minutes.5.doc The OMTS minutes of the meeting held November 3, '2004 were not available for this mailing . These minutes will be distributed at the November 17, 2004 Board of Directors meeting . Once the minutes are finalized, they will also be available on the District's website (www.ocsd .com). OMTS COMMITTEE Meeting Date To Bd. of Dir. 11/03/04 11/17/04 AGENDA REPORT Item Number Item Number OMTSO4-56 12 b Orange County Sanitation District FROM: Robert J Ooten, Director of Operations and Maintenance Originator: Nick Arhontes, Manager — Regional Assets and Services Divisions SUBJECT: EXTENSION OF CONSULTING SERVICES AGREEMENT WITH BROWN and CALDWELL CONSULTING FOR WASTE DISCHARGE REQUIREMENTS (WDR) SUPPORT GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Consulting Services Agreement with Brown and Caldwell Consulting. providing for additional consulting services in connection with the Santa Ana Regional Water Quality Control Board's newly adopted Waste Discharge Requirements, for an additional amount of $730,000 to include a $100,000 contingency, increasing the total amount not to exceed $1 ,430.000 for the time period of January 1 , 2005 thru December 31 , 2005. SUMMARY • The Regional Board adopted Order No. R8-2002-0014 General Waste Discharge Requirements for Sewage Collection Agencies in Orange County within the Santa Ana Region and its Monitoring and Reporting Program on April 26, 2002. All OCSD member cities and sewering agencies are named in the Order and are individually responsible for their own compliance efforts. Adequate funding of programs is required by the WDR as well as development of Sewer System Management Plans. The District has worked closely and cooperatively with city and sewering agency staff to develop information, data and other products that can be jointly used. lessening the need to develop products independently. • This work has been proceeding under this consultant support arrangement to complete required tasks. Staff recommends extending the present agreement with Brown and Caldwell due to the continuation of tasks and the consultant's expertise. Brown and Caldwell staff have acquired knowledge and understanding of the WDR requirements and the District's workplan, which are an asset to the District. • Brown & Caldwell was retained on June 26, 2002 to provide consulting services for the development of OCSD's overall WDR Compliance Plan, including assisting in the development of our Sewer System Management Plan (SSMP) required by the Order. Deliverables due to the Regional Board are on a defined schedule shown below that runs thru September 30, 2005. Based on known and anticipated needs by OCSD staff, the original agreement was structured thru December 31 . 2004. Staff has now been able to better forecast their support needs thru the September 30, 2005 period. A contingency period is planned from October thru December 2005 to allow for any modifications or corrections (if needed) to the District's Program. H:4feptkagendaOoard Agenda Reports\2004 Board Agenda Reports\1104Utern 12(b).BrownKCaldwell.doc Revised. 06/04103 Page 1 Sewer System Management Plan Time Schedule per WDR Order Task Completion Date _ Monitoring and Reporting Program No. R8-2002- Adopted April 26, 2002 — 0014 ongoing effort SSMP Development Plan and Schedule September 30, 2002-done SSO Emergency Response Plan January 1, 2003 - done Preventative Maintenance Program June 15, 2003 - done Legal Authority July 30, 2004 - done Grease Disposal Alternatives December 30, 2004 Grease Control Program December 30, 2004 Capacity Evaluation July 30, 2005 Sewer Rehabilitation Plan for Entire System September 30. 2005 Final SSMP September 30. 2005 • Work products developed by Brown & Caldwell are provided as templates or draft plans for the member cities and sewering agencies to develop their own WDR deliverables and will continue to be made available to them at no cost. The Training Program Development deliverables, including WDR awareness training, are a significant effort for OCSD's staff to co-develop and implement. Once completed, these products could be made available to the cities and sewering agencies. This will help achieve and maintain WDR compliance and is expected to also serve as a regional example for a more unified training program to improve staff efficiency and knowledge. On-site support for many affected OCSD Divisions is essential to the success of our development program. To date, the Brown and Caldwell team has assisted each affected Division in the development of its own internal work breakdown structure, budget. and schedule. PRIOR COMMITTEE/BOARD ACTIONS Board of Directors approved Item 14(d) dated 6/26/02. PROJECT/CONTRACT COST SUMMARY Costs incurred to date are within budget and are approximately $635,000. The requested work tasks, costs and usefulness to member cities and agencies to complete the SSMP are listed below. An expanded description of each major task is attached. About two thirds of the planned expenses for usable work products should also benefit the cities and sewering agencies. H ldeptlagenda\Board Agenda Reports\2004 Board Agenda Reports11104 item 12(b)BrownBCaldwell doc Revised- 06/04/03 Page 2 Task Cost & Usefulness SSO Response Plan and in-channel tasks $ 65,000 Yes Portable Aeration Plan $ 0 Yes Training Program Development $ 50,000 Yes Assist OCSD Divisions with their plans and tasks $ 200,000 No Assist with SSMP Manual Development and Review $ 10,000 Yes FOG Treatment Facilities impacts $ 20,000 Yes Subsurface leakage methodology development $ 175,000 Yes Provide General Support for overall Program Management $ 65,000 No Develop SOPs $ 25,000 Yes Full WDR/cMOM Assessment $ 20,000 Yes Contingency $100,000 Yes Total $730,000 BUDGETIMPACT ® This item has been budgeted for FY 04/05. (Line item: Division 420 funded for FY04/05 line 116, Account 53240) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Brown and Caldwell with a staff of 72 members thus far from their national team and selected sub consultants and service providers, has been supporting OCSD staff, and indirectly member cities and sewering agencies with implementation tasks and Waste Discharge Requirement compliance activities including: o Providing regulatory guidance based on their national experience o Internal audit and gap analysis support to develop our task level workplan o Assisting with development of a Sewer System Management Plan (SSMP) document o Working with Regional Assets and Services field staff and supervision to develop Standard Operating Procedures (SOPs) for collection system operation and maintenance o Evaluating treatment plant processes and recommending Fats, Oils and Grease (FOG) disposal alternatives including feasibility of producing a biodiesel fuel product o Assisting with the development of training products and staff training in conjunction with Human Resources Department's Employee Development/Training Division o Developing a methodology for estimating and reporting of subsurface pipe leakage in conjunction with U.C. Irvine researchers o Assisting staff with preparation of monthly sewage spill reports o Developing a portable aeration plan for surface waters impacted by sewer spills H:ldepriagenda'Soard Agenda Reports12004 Board Agenda Reports1110411tenn 12(b).Brown&Caldwell.doc Revised: 06104/03 Page 3 o Developing a detailed task level plan and coordinating WDR compliance issues and monitoring milestones for the various Divisions within OCSD and the General Counsel's office o Development of audit tools and checklists to assist our internal compliance staff to prepare self audits o Assisting staff with our monthly WDR Steering Committee and General Monthly Meetings for local cities and sewering agencies o Assisting in the development of improved in-channel spill response, containment and cleanup methods in conjunction with private sector contractors and the County of Orange for their flood control channels and related facilities. • Amendment No. 1 to the Agreement modified a part of section 17 of the Contract with Brown and Caldwell (Consultant) and inserted a new paragraph as follows: "Notwithstanding anything contained herein to the contrary, OCSD releases Consultant and the University of California Irvine (UCI) from the provisions of this Paragraph with specific reference to the exfiltrometer device (a New Development resulting from the activity of UCI to develop a subsurface leakage methodology), and in exchange, OCSD is hereby granted a royalty-free, irrevocable, non-exclusive commercial license to make, use, and sell any patentable inventions conceived by UCI related to New Development. Consultant shall not be entitled to any interest in the intellectual property for the New Developments, all such rights and interest residing in OCSD and/or UCI." • The WDR Order currently includes most of the asset management provisions of EPA's draft SSO Rule's "cMOM" program. OCSD staff feels that if EPA ever issues the SSO Rule, impacts to our WDR Compliance Programs in order to also meet EPA's needs are expected to be minimal if any. The Task "Full WDR/cMOM Assessment" will be performed at that time if needed. ALTERNATIVES Based on current staffing levels and expertise, it would not be possible to complete this project in-house within the schedule in the WDR Order. CEQA FINDINGS This type of service work is exempt from CEQA. Any Capital Improvement Projects (CIP) needed as a result of this program will follow typical OCSD CIP steps including CEQA review, as required. ATTACHMENTS WDR Task Budget Request for July 1, 2004 through December 30, 2005. H:Wept\agenda\Board Agenda Reports12004 Board Agenda Reports11104Utem 12(b).Brown&Ca1dwe1l.doc Revised: 06/04/03 Page 4 WDR Task Budget Request for July 1, 2004 through December 30, 2005 WDR Due BC For Task Incurred to Budget Task Description Date Lead Satelli Comment Nos Date Amend to Request Use? SSO Provide technical resources to evaluate and support 9/30/05 Chung Yes BC completed the 3 147,300 65,000 Response the coordination of spill response procedures Phase 1 report Plan between OCSD, member Agencies,and County of 11/2003 and began Orange. Prepare final report on the first phase of the work on Phase 2, in field effort. Develop uniform contract terms and process. conditions to allow for third-part response to perform in-channel spill response. Assist OCSD with bid document preparation. Coordinate the work among stakeholders. Portable Work with OC Health Care Dept and Regional Board 9/30/05 Chung Yes Completed the Plan 9 19,400 -0- Aeration to identify affected reservoirs,wet lands and/or other on 6/11/04. Future Plan identified at risk surface waters. Identify rental or role will be to help purchased equipment, develop contact list and OCSD integrate approach. Tie implementation phase to SSO into SSO response. Response Plan (above). Refine the required rental or Budget rolled into purchased equipment, update contact list and SSO Response response plan. Plan. Training and Assess gaps, develop basic needs and Ongoing Damikol Yes Developed the first 4 7,500 50.000 Developmen enhancements for OCSD Worker Competency as training module and t Program, and assist in procedure development based will begin active on monitoring OJT and field tasks. staff training in fall Include high level training in WDR/cMOM Program of 2004. Compliance to achieve favorable audit findings agencywide. Includes internal OCSD Auditor training for SSORP compliance and assist satellites develop audit team to perform own audits. Define subtasks and milestone dates for deliverables including CWEA Certification Program for WDR and OCSD compliance and CEU program architecture for OCSD staff. 11/9/2004 Brown and Caldwell Page 1 of 3 WDR Due BC For Task Incurred to Budget Task Description Date Lead Satelli Comment Nos Date Amend to Request Use? Assistance Work closely with OCSD divisions to implement the 9/30/05 Damikol No To date, BC has 5 96,300 200,000 to OCSD WDR at the divisional level. Work from WDR as worked with OCSD Divisions document and matrix templates developed to date, Divisions to and update the templates monthly. Evaluate complete Impacts progress and assist the divisions with labor, Matrix, and recently materials, equipment, services as necessary to meet initiated the WDR deadline. implementation role. Assist with SSMP Outline Development and final manual 9/30/05 Arbour Yes SSMP will be a 6 1,100 10,000 development preparation Assist OCSD in developing template for summary document of SSMP final SSMP including table of contents, desired that primarily Manual section content, appendix of related OCSD references other documents such as engineering standards, FOG completed WDR Pro ram, Ordinances,etc.,and index. work products FOG Assist OCSD in evaluating pilot study 12/30/04 Fonda No In-Plant FOG 13 25,000 20,000 Treatment recommendations,coordinate with pilot plant vendor Mitigation Study Impacts to establish location for pilot facility at Plant 1, was completed evaluate pilot plant operation,and advise OCSD as to 06/03 and has lon -term feasibility. been published. Subsurface Develop reporting process for SSO leaks 04/01/05 Esmond Yes Work thus far has 10 156,700 175,000 Leakage (exfiltration), included as part of Monitoring and resulted in Methodology Reporting requirement. Partner with UCI research development of team to provide literature research,develop process exfiltrometer. to quantify exfiltration using exfiltrometer device, Additional field CCTV and other inspection and testing processes testing necessary and subsequent repair, rehab, replacement strategy. for quantification. General Overall Program Management. Proposed WDR and Ongoing Esmond Yes Ongoing active role 12 140,000 65,000 Program cMOM document review,task definition and budgets, in WDR meetings, Support overhead support, general review and coordination with correspondence,general facilitation, non-task related stakeholders and Project Manager's time. Strategies to leverage agencies, assist in deliverables for possible use by OCSD Satellites. making WDR tools Assist in developing presentation materials for and deliverables management and OCSD Board use. Assistance in accessible. compiling annual satellite data and SSO reporting. 11/9/2004 Brown and Caldwell Page 2 of 3 WDR Due BC For Task Incurred to Budget Task Description Date Lead Satelli Comment Nos Date Amend to Request Use? Develop Develop Standard Procedures. This task supports Ongoing Myers Yes Have developed 13 11 21.400 25.000 SOPs training. Review WDR language to identify specific SOPs in final form areas where training is required. Identify Standard to date, plan to Procedures and compare to existing list, modify and complete 12 more. prioritize. Prepare draft SOPs for OCSD review, modify and revise. Provide video capture for SOP activity and to aid in training. Full WDR/ Using WDR document and matrix templates based Ongoing Arbour Yes Ongoing, providing 8 20,500 20,000 cMOM on cMOM language, modified and expanded for PM tools, 7 Assessment WDR,focus on labor, materials, equipment, services regulatory and and procedure/documentation needs. Review for technical impact on other tasks. Provide peer review for FOG assistance. program develo ment and integration into SSMP. Contingency --- 100,000 Total 635,200 730,000 H:\dept\om\810\fieldsWGENDA\Agenda Report Attachment Brown and Caldwell WDR Task Table(10-19-04).doc 11/9/2004 Brown and Caldwell Page 3 of 3 OMTS COMMITTEE Meeting Date To Bd. of Dir. 11/03/04 11/17/04 AGENDA REPORT Item Number Item Number OMTSO4-55 12 c Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Layne Baroldi, Legal & Regulatory Affairs Liaison SUBJECT: Memorandum of Understanding with South Orange County Wastewater Authority for Phase I of Implementation of Enclosed Composting Facility GENERAL MANAGER'S RECOMMENDATION Approve Memorandum of Understanding with South Orange County Wastewater Authority for Phase 1 of the South Orange County Composting Facility for an amount not to exceed $69,637, to be shared equally with South Orange County Wastewater Authority, in a form approved by General Counsel. SUMMARY • For the past two years. SOCWA and OCSD have been working with the Orange County Integrated Waste Management Department's (OCIWMD) Biosolids Committee to site an enclosed biosolids and greenwaste composting facility at the Prima Deshecha Landfill in South Orange County. • The proposed "South Orange County Composting Facility" (Project) would take in approximately 100 to 110 tons of Class B biosolids daily from OCSD and SOCWA and combined with like amounts of wood chips and yard trimmings to produce approximately 65 to 75 tons of compost per day. • OCSD and SOCWA jointly propose this composting program as an environmentally responsible alternative to landfilling beneficial organic materials. • In order to facilitate the development of the Project, staff from both agencies recommends that the MOU be entered into by OCSD and SOCWA. • The purpose of the MOU is to set forth certain understandings of SOCWA and OCSD in order to formalize a cooperative partnership for the implernentation of the Project. • The MOU memorializes a 50-50 participation commitment of SOCWA and OCSD in the Project, and consent to initiate and fund the tasks for the initial planning, permitting and concept design of the Project. The MOU states that SOCWA and OCSD will be partners in the Project, each with a fifty percent (50%) interest. • The MOU expresses SOCWA's and OCSD's intent to enter into a more detailed agreement at a later time setting forth ownership interests, financial commitments and other critical terms to carry out the final planning, design build and/or construction and operation of the Project. LB:Wh H\dept\agenda\Board Agenda Reports\2004 Board Agenda Reports\1104\I1em 12(c)South OC Wastewaler docLB Revised 10/20104 FINAL(wh) Page 1 • Staff from both SOCWA and OCSD will review and approve contracts for services and work in connection with the Project development tasks before such contracts are awarded and/or executed by SOCWA, which shall be executed in both SOCWA's name and "on behalf of OCSD." • SOCWA will act as the lead agency on behalf of itself and OCSD and execute contracts to carry out the Project's Phase 1 Tasks. • OCSD and SOCWA will continue to work closely with OCIWMD as the project moves forward. • SOCWA and OCSD are committed to the efficient, beneficial recycling of their respective biosolids products. The Project will further this common goal and produce a biosolids product for use as a soils amendment in the SOCWA and OCSD service areas and beyond. PRIOR COMMITTEE/BOARD ACTIONS Action requested consistent with the receipt and filing of the Long-Range Biosolids Management Plan, December 2003. PROJECT/CONTRACT COST SUMMARY The total cost for Phase 1 of the South Orange County Composting Facility entitled "Project: Feasibility Assessment, Prima Deshecha Composting Facility"will not exceed 369,637. OCSD would be responsible for 50% of this total cost. Upon the determination of the feasibility of the project. staff would make a recommendation to the OMTS Committee whether or not to pursue subsequent phases of the Projects development. BUDGETIMPACT This item has been budgeted. (Line item: CAP. Section 8. Page 146) ❑ 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 This proposal is consistent with the OCSD's Long-Range Biosolids Management Plan. CEQA FINDINGS The required CEQA analysis will be performed as directed by the OCIWMD. ATTACHMENTS N/A LB:wh H 1dept\agenda\Board Agenda Reports\2004 Board Agenda Reports\1104\ttem 12(c)South OC Wastewater docLB Revised; 10/20/04 FINAL(wh) Page 2 The PDC minutes of the meeting held November 4, 2004 were not available for this mailing . These minutes will be distributed at the November 17, 2004 Board of Directors meeting . Once the minutes are finalized , they will also be available on the District's website (www.ocsd .com). PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-89 13 b Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Hardat Khublall, CIP Project Manager SUBJECT: WARNER AVENUE RELIEF SEWER, CONTRACT NO. 11-22 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 5 to Warner Avenue Relief Sewer, Contract No. 11-22, with ARB, Inc., authorizing a deduction of $308,378, decreasing the total contract amount to $5,198,580. SUMMARY Background • This project, located in the City of Huntington Beach, consists of improvements to relieve hydraulic deficiencies on two separate reaches of the existing Warner Avenue Relief Sewer and to relieve deficiencies in the overall drainage basin tributary to that trunk sewer. The 1999 Strategic Plan identified these two reaches of the Warner Avenue Relief Sewer as hydraulically deficient and in need of replacement. • Tetra Tech, Inc. prepared the plans and specifications and the construction contract was awarded to ARB, Inc. on May 28, 2003. • This Change Order is for the Adjustment of Engineer's Quantities. There are no errors or omissions associated with this Change Order. The contract includes liquidated damages of $750 per day and no bonus provisions. PRIOR COMMITTEE/BOARD ACTIONS Contract Schedule Contract start date July 9, 2003 Original contract completion date September 2, 2004 Total number of change orders to date 5 Current contract completion date October 3, 2004 Revised completion date October 3, 2004 Days subject to liquidated damages N/A Liquidated damages assessment N/A Revised 06104/03 Page 1 PROJECT/CONTRACT COST SUMMARY / Change Order No. 5 Content Item No. Description Amount Days Type Adjustment of Engineer's 1 Quantities $(308378.) 0 Other TOTAL — CHANGE ORDER NO. 5 $(308,378) 0 Job Completion This contract in now 100% complete. PRIOR COMMITTEE/BOARD ACTIONS This contract was awarded by the Board of Directors on May 28, 2003. Please refer to the attached Change Order Status Report for more information on previous change orders. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 5,089,040 Previously Authorized Changes $ 417,918 This Change Order (Deduct) $ (308,378) Change Orders to Date $ 109,540 Percent Increase to Date 2.15% Amended Contract Price $ 5,198.580 BUDGETIMPACT El This Item has been budgeted. (Line item: FY 04/05, Section 8, Page 46. Capital Improvement Program, Collections Facilities Relief Sewer. Contract No. 11-22) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None ALTERNATIVES None Revised 06/04/03 Page 2 CEQA FINDINGS This project was included in the 1999 Strategic Plan Program 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 HK:bp:lc:eh:lc HAntglobal\Agenda Draft Reports\PDC\11-22 AR CO#5 Revised 06/04103 Page 3 BUDGET INFORMATION TABLE WARNER AVENUE RELIEF SEWER CONTRACT NO. 11-22, C.O. #5 24 -E'i 4- . �,l 50 .012 �M- EWA N i""Ki, SEQ dEd -T. -ROPO pp !R0P06i:lW wl, El j TOTAL xprlNbE .4I3 )W 9191"TIP QG T MOM j ffl U IN wATE°Co - pi vss KN..I<, VS. 4 VE id, Ei-I Phase 1 -Project Development $ 10,200 $ 54,000 $ 54,000 $ 54,000 $ 54.000 $ 53,441 99% Phase 2-Preliminary Design $ 10,000 $ 6,000 S 6,000 $ 6,000 $ 6,000 $ 4,859 81% Phase 3-Design $ 400,000 $ 750,000 $ 750,000 750,000 $ 750,000 $ 736,700 98% is Phase 4-Construction $ 2.696,600 $ 6,345,684 $ 308,378) $ 6,037,306 n', $ 6,345,684 $ 6,345 664 $ 5,978,094 94% Phase 5-Commissioning $ 128,000 $ 128,000 S 128,000 $ 55,000 $ 55.000 $ 21,672 39% Phase 6-Close-Out $ 37,000 $ 37,000 S 37,000 $ 14,000 $ 14,000 $ 7,313 52% Phase 7-Contingency $ 929.500 . $ 159,316 . S, .308,378 S 467,694 $ PROJECT TOTAL $ $$ 4,211,300 $ 7,480.000 7,480,000 $ 7,224,684 S 7,224,6841 $ 6,802,0791 94% 1 :x 0 1]Reimbursable Costs $ 1 $ T$ 10,0001 $ 10,0001 100% 10,000 0,000 1 1 S 10,0C $ T$ 7,214,684 $ $ '?j $ 6,792,0791 94% PROJECT NET 1 $ 4,211,300 $ 7,470,000 7,470.000 7,214,684 S PSA/Contract Design PSA $ 282.479 $ 440,979 S 440,979 $ 440,979 $, $ 440,9791 $ 401,900 1 91% K. Construction Contract $ 5,089,040 $ 5,506.958 $� (308,3780 S 5,198 5,506.958 $ 308.278) $ 5.198 58n S 4,636,673 89% EDMS:003781272 CHANGE ORDER STATUS REPORT WARNER AVENUE RELIEF SEWER CONTRACT NO. 11-22 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT 7/9/2003 $5,089,040 $5,089,040 420 420 CO NO. 1' 11/10/2003 $153,000 $5,242,000 3.01% 10 430 CO NO. 2 4/28/2004 $182,109 $5,424,149 6.58% 23 453 CO NO. 3 7/21/2004 $35,193 $5,459,342 7.28% 0 453 CO NO 4 9/27/2004 $47,616 $5,506,958 8,21% 0 453 CO NO.5 Pending ($308,378) $5,198,580 2.15% 0 453 `Approved by PDC Committee per delegated authority by Board Resolution 99-23 EDMS:003778617 e Page 1 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB, INC. C.O. No. Five 5 Date: November 17, 2004 Job: WARNER AVENUE RELIEF SEWER, CONTRACT NO. 11-22 Consultant: TETRA TECH, INC Amount of this Change Order(Deduct)$(308,378) 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 Additions: Item Unit Description From To Diff U.P. Total 9 LF 8-in VCP Sewer Pipe 425 512 87 $220 $19,140 16 VF 60-inch Manholes 101 105.87 4.87 700 3,409 35 LF Relining 24-inch sewer 1143 1542 399 140 55,860 pipe 36 EA Rehabilitate existing 4 5 1 2,500 2,500 manholes, remove and replace cone and lid Subtotal $80,909 Deductions: Item Unit Description From To Diff U.P Total 4 CY Excavation of 500 384 (116) 40 $ (4,640) unsuitable material 6 LF 21-inch VCP sewer 3404 3380 (24) 380 (9,120) pipe 7 LF 24-inch VCP sewer 86 46 (40) 350 (14,000) pipe 8 LF 36-inch VCP sewer 324 154 (170) 450 (76,500) pipe 12 LF 18 & 20-inch siphon HDPE and 56-inch 239 179.25 (59.75) 1100 (65,725) steel casing 15 LS 1 '/2- inch gas line 3000 0.00 (3000) 3000 (3,000) relocation 17 VF 60-inch drop manholes 149 142.40 6.60 500 3,300 19 VF 48-inch manholes (City 54 47.50 6.50 300 1,950 9 Page 2 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB, INC. C.O. No. Five 5 Date: November 17, 2004 Job: WARNER AVENUE RELIEF SEWER, CONTRACT NO. 11-22 Consultant: TETRA TECH, INC of H.B. 22 VF 72-inch manholes 57 44.08 12.92 700 9,044 23 LS 84-inch manholes 18000 0.00 (18000) 18000 (18,000) 25 SF Trench pavement 30000 28327 (1673) 7 (11,711) restoration 31 SF Isolated pavement 20000 7181 (12819) 6 (76,914) restoration 33 LS Video detections stem 50000 14017 35983 50000 35,983 37 EA Rehabilitation of 5 3 (2) 2200 (4,400) existingmanholes 38 EA Point repair existing 2 0 (2) 8000 (16,000) sewer 5-ft to 10-ft 39 EA Point repair existing 2 0 (2) 12000 (24,000) sewer 10-ft to 15-ft 43 LS CCTV prior to 15000 0 (15000) 15000 (15,000) ex iration of warranty Subtotal $(389,287.00) TOTAL DEDUCT THIS CHANGE ORDER: $(308,378.00) TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 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: ARB, INC. C.O. No. Five 5 Date: November 17, 2004 Job: WARNER AVENUE RELIEF SEWER, CONTRACT NO. 11-22 Consultant: TETRA TECH, 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 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: July 9, 2003 Original Contract Time: 420 Calendar Days Original Completion Date: September 2, 2004 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 33 Calendar Days Revised Contract Time: 453 Calendar Days Revised Final Completion Due Date: October 3, 2004 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: October 3, 2004 Original Contract Price $ 5,089,040.00 Prev. Authorized Changes $ 417,918.00 This Change (Deduct) $ (308,378.00) Amended Contract Price $ 5,198,580.00 s' Page 4 of 4 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB, INC. C.O. No. Five 5 Date: November 17, 2004 Job: WARNER AVENUE RELIEF SEWER, CONTRACT NO. 11-22 Consultant: TETRA TECH, INC Board Authorization Date: November 17, 2004 ORANGE COUNTY SANITATION DISTRICT Recommended by: Hardat Khublall, CIP Project Manager Date Approved by: David A. Ludwin, P.E. Director of Engineering Date Accepted by: ARB, INC. Contractor Date EDMS:003781689 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/24/04 AGENDA REPORT Item Number Item Number PDC04-90 13(c) Orange County Sanitation District FROM: David A. Ludwin, Director of Engineering Originator: Hardat Khuball, CIP Project Manager SUBJECT: GISLER-REDHILL TRUNK IMPROVEMENTS, REACH "A", CONTRACT NO. 7-36; ORANGE TRUNK IMPROVEMENTS, CONTRACT NO. 7-39; GISLER-REDHILL/NORTH TRUNK IMPROVEMENTS, CONTRACT NO. 7-41: AND CITY OF TUSTIN PROJECT NOS. 6106 AND 6151 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 1 to Gisler-Redhill Trunk Improvements, Reach "A", Contract No. 7-36; Orange Trunk Improvements, Contract No. 7-39; Gisler-Redhill/North Trunk Improvements, Contract No. 7-41; and City of Tustin Project Nos. 6106 and 6151, with ARB, Inc., authorizing an addition of $349,612 and 20 calendar days, increasing the total contract amount to $18,725,611. SUMMARY Background • Contract No. 7-41, located in the City of Tustin, City of Orange, and the County of Orange consists of improvements to relieve hydraulic deficiencies on the Gisler- Redhill North Trunk Sewer in Newport Avenue, El Camino Real, and Prospect Avenue. Contract No. 7-39 is located in the City of Tustin and the County of Orange, consists of improvements to relieve hydraulic deficiencies on the Orange Trunk Sewer in Holt Avenue, 17th Street, and Hewes Avenue. Contract No. 7-36, located in the City of Tustin, consists of improvements to relieve hydraulic deficiencies on the Gisler-Redhill Trunk Sewer Improvements in Redhill Avenue from Mitchell to La Colina. The 1999 Strategic Plan identified this reach of sewer as hydraulically deficient and in need of replacement. • AKM Consulting Engineers prepared the plans and specifications and the construction contract was awarded to ARB, Inc. on January 28, 2004. • Change Order No. 1 includes eight items of added work to Contract No. 7-41 and Contract No. 7-39. There are six design changes, and four changed conditions in this Change Order. The contract includes liquidated damages of $1000 per day and no bonus provisions. Page 1 Contract Schedule Contract start date April 7, 2003 Original contract completion date November 24, 2005 Total number of change orders to date 1 Current contract completion date November 24, 2005 Revised completion date December 14. 2005 Days subject to liquidated damages N/A Liquidated damages assessment N/A Change Order No. 1 Content Item No. Description Amount Days Type 1 Adjustment of Engineer's $180,000 20 Design Change Quantities 2 Abandoned Line Removal 22,894 0 Changed Condition 3 Material Price Difference for City 1,552 0 Design Change of Tustin Project No. 6151 4 Time Extension for City of Tustin 0 200 Design Change Project No. 6151 5 Utility Impacts in Old Town 5,938 0 Changed Condition 6 Additional Casing on Main 28,513 0 Changed Street Condition 7 Undisclosed Concrete Culvert 20,888 0 Changed Condition 8 Modification to 17" Street Traffic 52,142 0 Design Change Control Plan 9 Mobilization to Hewes Middle 22,166 0 Design Change School 10 Additional Lateral @ Tustin 15,519 0 Design Change Water Plant Total — Change Order No. 1 $349,612 20 Item 1 - This item is an Adjustment of Engineer's quantities for additional house connections that were not identified on the original contract drawings. After contract award. the design was changed to include additional properties with septic systems for connection to the District's trunk sewer. Item 2 - This item is for removal of interfering portions of existing abandoned water lines. This changed condition exists because the abandoned irrigation lines were not shown on the City of Tustin's record drawings. Page 2 d Item 3 - This item compensates the Contractor for extra costs associated with a change in materials for water valves requested by the City. This design change increases the durability of the valves. Item 4 - This item extends Milestone No. 1 for waterline construction in the City of Tustin by 200 calendar days. This design change allows the Contractor to improve coordination between waterline and sewer work, thereby minimizing public impacts. This milestone time extension does not extend the final completion date of the contract. Item 5 - This item compensates the Contractor for excavation work around two undisclosed utilities, and removal of slurry encasement around a storm drain. This changed condition exists because the utilities were not shown on the City of Tustin's record drawing and the slurry around the storm drain was encountered outside of the trench zone. Item 6 - This item is for the installation of steel casing to avoid disturbance of an existing trust block on a waterline. This changed condition exists due to the location of the trust block protruding into the trench zone of the new sewer line. Item 7 - This item is for the removal of an undisclosed concrete culvert to make way for the proposed sewer. This is a changed condition because the culvert was abandoned over 50 years ago and was not shown on any record drawings. Item 8 - This item is for changes to the contract traffic control plans. This design change was initiated by the County in order to provide improved traffic flow through the intersections and to increase public safety in the traffic controlled zones. Item 9 —This item is for Contractor mobilization costs associated with a contract sequence change. This design change was requested by the public in conjunction with the school district to take advantage of the summer months when school was not in session, thereby minimizing disturbance. Item 10 - This item compensates the Contractor for costs associated with the installation of an additional sewer lateral to the City of Tustin Water Plant. This design change was requested by the City to prevent surcharging of the existing sewer. Job Completion The contract is now 25% complete. PRIOR COMMITTEEIBOARD ACTIONS Construction Contract was approved by the Board on January 28, 2004, for a lump sum of$18,375,999. Page 3 9 PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 18,375,999 Previously Authorized Change Order $ 0 This Change Order (Add) $ 349,612 Change Orders to Date $ 349,612 Percent Increase to Date 1.9% Amended Contract Price $ 18,725,611 BUDGETIMPACT ® This item has been budgeted. (Line item: Contract No. 7-41 FY 04/05, Section 8, Page 43, Contract No. 7-39 FY 04/05, Section 8, Page 41 Capital Improvement Program, Collections Facilities, Facilities Engineering Projects-Collections) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None ALTERNATIVES None CEQA FINDINGS This project was included in the 1999 Strategic Plan Program Environmental Impact Report certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. ATTACHMENTS 1. Budget Information Table - 7-41 2. Budget Information Table - 7-39 3. Change Order Status Report 4. Change Order 5. Location and Photo Description of Change Order No.1 TD:Ic:eh H:lntglobakAgenda Draft ReportslPDC17-36,et all C01-110304.doc Page 4 BUDGET INFORMATION TABLE GISLER-REDHILUNORTH TRUNK IMPROVEMENTS CONTRACT NO. 7-41 k 'R ui t Ul,"iWR 7i, 4T.R.1imlE. M FUNDS" r THORME6 Y A A 11,, r" DO ti.011.1 H A_ U 1.1—PY Eli I ....... lE U; v A., 01��U T _,�,�U Phase 1 -Project Development $ 45,000 S 39,484 $ 39,484 S 39,484 $ 39,484 $ 39,484 100% Phase 2-Preliminary Design S 1,126 $ 1,126 S 1,126 1,126 $ 1,933 172% Phase 3-Design 465,000 S 627,633 627,633 S 627,633 $ 627,633 $ 632,689 101% Phase 4-Construction S 13,600,000 $ 13,126,689 $ 238,897 $ 13,365,586 S 13.126,689 $ 238,897 $ 13,365.586 $ 2,937,041 22% Phase 5-Commissioning 183,581 183,581 S 183,581 183,581 $ 14,340 8%, Phase 6-Close-Out $ 45,615 $ 45 615, 45,615 $ 45.615 3,305 7% Phase 7-Contingency 2,206,000 $ 1,334,491 $ (238,897) $ 1,095,594 IPROJECT TOTAL $ 16,316,000 S 15,358,6191 $ $ 15,358,61]9 �-A 114� S 14,024,128 , $ 238,897 , $ 14,263,025, $ 3,628,793, 25% lReimbursable Costs 665,211 1 $ 665,211 1 15,358,619 S 13,358,91 $ 3,628,793 27% PROJECT NET $ 16,316,000 1 S 15,358,619 1 71 236,8971 13,597,814 $ PSA/Contract Design PSA I S 368,6841 $ 382,1761 382,176 382,176 lConstruction Contract S 13,600,000 $ 10,250.052 $ 10,250,052 10,250,052 238,897 10,488,9491 $ 234,2291 2% EDMS ITEM V:003780980 BUDGET INFORMATION TABLE ORANGE TRUNK IMPROVEMENTS CONTRACT NO. 7-39 u 21 14".'a'. �4 U M IV -4 -4 -'r -1 R � I��EUMII�--evl'�'�;3. b��N�`VtMle amo' 2�4.' � '.14! li-vap �#Rbpbskm Fly !�D 11"lif...","S1.',mwR M11-111 W-111-11 IT A0 1'di It" PiRml,- R-Ou"TEaPR '1A. ..0 jig" to 3 10110 W q E 'M TJE T ngy mp g x. "'r INA. p, H1 Phase 1 -Project Development $ 37,000 S 46,388 $ 46,388 $ 46,388 $ 46,388 $ 46,388 100% Phase 2-Preliminary Design $ 550 S 550 t", $ 550 $ 550 $ 1,391 253% Phase 3-Design 326,000 $ 395,649 S 395,649 395,649 395,649 $ 411,471 104% Phase 4-Construction S 4,718,000 S 4,251,625 110,715 S 4,362,340 $ 4,251,625 110,715 $ 4,362,340 $ 1,962,537 45% Phase 5-Commissioning $ 61,735 $ 61,735 $ Phase 6-Close-Out $ 15,434 S 15,434 Phase 7-Contingency $ 759,000 $ 526,671 S (110,715) S 415,956 $ �14 PROJECT TOTAL $ 5,840,000 $ 5,298,052 $ S 5,298,052 4,694,212 $ 110,715 4,804,9271 $ 2,421,786 1 50% iReimbursable Costs F. 1PROJECT NET $ 5,840,000 1 $ 5,298,0521 $ -1 S 5,298,052 $ 4,694,212 1110,715] $ 4,804.927 $ 2,421.786 50% PSA/Contract Design PSA $ 224,0981S 236,641 1'* $ 236,641 as Construction Contract $ 4,718,000 $ 4,1113,733 : " $ 4,113,733 y $ 4,113,733 110,715 $ 4,224,448 $ 26,314 % EDMS ITEM ID:003780981 CHANGE ORDER STATUS REPORT GISLER-REDHILL TRUNK SEWER IMPROVEMENTS, ORANGE TRUNK SEWER IMPROVEMENTS, AND GISLER-REDHILL NORTH TRUNK SEWER CONTRACT NOS. 7-36, 7-39, AND 7-41 AND CITY OF TUSTIN PROJECT NUMBERS 6106 AND 6151 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE- (DAYS) (DAYS) CONTRACT 1/28/2004 $18,375,999 $18,375,999 0.00% 600 600 CO NO. 1 Pending $349,612 $18,725,611 1.90% 20 620 EDMS:003780190 Q Page 1 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB Inc. C.O. No.: One 1 Date: November 17, 2004 Job: Gisler Redhill North Trunk Sewer, Reach "A". Contract No. 7-36: Orange Trunk Improvements,Contract No.7-39;Gisler Redhill/North Trunk Sewer Improvements; Contract No. 7-41: and City of Tustin Project Numbers 6106, and 6151 Consultant: AKM Amount of this Change Order (Add) $349,612.00 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. Contract No. 7-41 ITEM 1 —ADJUSTMENT OF ENGINEER'S QUANTITIES: ADDITIONAL HOUSE CONNECTIONS This item is an adjustment to Engineer's quantities for 40 additional house connections that were not identified on the original contract drawings. Public requests and expected future property developments required the connections. A time impact analysis was submitted by the Contractor justifying the request for a contract time extension for the additional work. This item was negotiated with the Contractor pursuant to Section 44(B)l of the General Requirements (Reference FCO-741- 001). ADDITIONS Item No. Unit Description From To Difference Unit Price Total 54 Each House Connections 99 139 40 $4,500 $180,000 ADDED COST THIS CHANGE ORDER ITEM: $180,000.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 20 Calendar Days ITEM 2—ABANDONED LINE REMOVAL This item is for extra labor, equipment and material required to remove 700-feet of interfering portions of abandoned two-inch and five-inch water lines between Sewer Stations 11+00 and 19+00 on Newport Avenue. These lines were not shown on the City of Tustin's record drawings. The extra work consisted of excavating, pipe removal, and disposal. This item was negotiated with the Contractor force account in accordance with Division 1, Section 44(B)2 of the General Requirements (Reference FCO-741-002). ADDED COST THIS CHANGE ORDER ITEM: $22,894 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days D Page 2 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB Inc. C.O. No.: One 1 Date: November 17, 2004 Job: Gisler Redhill North Trunk Sewer, Reach "A". Contract No. 7-36; Orange Trunk Improvements,Contract No.7-39;Gisler Redhill/North Trunk Sewer Improvements; Contract No. 7-41; and City of Tustin Project Numbers 6106, and 6151 Consultant: AKM ITEM 3—MATERIAL PRICE DIFFERENCE FOR CITY OF TUSTIN CONTRACT 6151 This item is to compensate the contractor for the extra costs associated with a change in materials for water valves. The contract requires brass component valves, but the City of Tustin required an upgrade to stainless steel. This item was negotiated with the Contractor pursuant to Section 44(B)1 of the General Requirements (Reference FCO-741-003). ADDED COST THIS CHANGE ORDER ITEM: $1,552. TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 4—TIME EXTENSION FOR CITY OF TUSTIN CONTRACT 6151 This item extends the Milestone No 1 time duration, which constrains the construction duration for the waterline work in the City of Tustin, by 200 calendar days. The time extension will allow for the Contractor to complete the waterline work concurrently with the sewer line along Prospect Avenue which will minimize impacts to the public. The duration is added to the interim milestone only and will not extend the final contract completion date. This item was negotiated with the Contractor pursuant to Section 44(B)1 of the General Requirements (Reference FCO-741-004). ADDED COST THIS CHANGE ORDER ITEM: $0.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 5— UTILITY IMPACTS IN OLD TOWN This item is for labor, equipment, and material required excavating around two undisclosed utilities, that included removal of an interfering gas line and also removal of an undisclosed slurry encasement underneath a storm drain between Sewer Stations 24+00 and 37+00 on El Camino Real. This item was accomplished by the Contractor's force account in accordance with Division 1, Section 44 (B)2 of the General Requirements (Reference FCO 741-005). ADDED COST THIS CHANGE ORDER ITEM: $5,938. TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Q Page 3 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB Inc. C.O. No.: One 1 Date: November 17, 2004 Job: Gisler Redhill North Trunk Sewer. Reach "A". Contract No. 7-36: Orange Trunk Improvements,Contract No.7-39:Gisler Redhill/North Trunk Sewer Improvements: Contract No. 7-41: and City of Tustin Project Numbers 6106, and 6151 Consultant: AKM ITEM 6—ADDITIONAL CASING ON MAIN STREET This item is for labor, equipment, and material required for installing 14-feet of 42-inch diameter casing at Sewer Station 43+20. The casing was required to avoid disturbing a thrust block on an existing six-inch water main. The work consisted of excavating, installation of the casing, and removal of soil inside the casing. This item was negotiated with the Contractor pursuant to Section 44(B) 1 of the General Requirements (Reference FCO-741-006). ADDED COST THIS CHANGE ORDER ITEM: $28,513 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Contract No. 7-39 ITEM 7— UNDISCLOSED CONCRETE CULVERT This item is for labor and equipment to remove a portion of an undisclosed concrete culvert at Sewer Station 100+00. The culvert was interfering with the installation of the proposed sewer. The extra work consisted of potholing to determine the limits of the structure, standby time for investigation, excavation, removal, and disposal of the structure. This item was accomplished by the Contractor's Force Account in accordance with Division 1, Section 44(13)2 of the General Requirements (Reference FCO-739-006). ADDED COST THIS CHANGE ORDER ITEM: $20,888 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 8— MODIFICATIONS TO 17T" STREET TRAFFIC CONTROL PLAN This item is for labor, equipment, and material required modifying the existing approved traffic control plan for 17th Street between Holt Avenue and Newport Avenue. The County of Orange made modifications to the traffic control set-up after the Contractor had placed the k-rail and all other appurtenant traffic control devices. The County of Orange did not feel comfortable with the traffic flow during night hours with the taper and grade separation within the Holt and Esplanade intersections. Two thousand feet of street striping had to be removed to accommodate the new traffic lane locations. The taper between Holt Avenue and Esplanade Street had to be extended by approximately 300-feet in order to provide a smoother transition for the posted speed limit. The County of Orange also 9 Page 4 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB Inc. C.O. No.: One 1 Date: November 17, 2004 Job: Gisler Redhill North Trunk Sewer, Reach "A". Contract No. 7-36: Orange Trunk Improvements,Contract No.7-39:Gisler Redhill/North Trunk Sewer Improvements: Contract No. 7-410 and City of Tustin Project Numbers 6106, and 6151 Consultant: AKM required shoulder improvements with cars being so close to the edge of the pavement. Additional signs for the bike path and detours were provided to safely detour bikers through the construction zone. This item was negotiated with the Contractor pursuant to Section 44(B) 2 of the General Requirements (Reference FCO-739-007). ADDED COST THIS CHANGE ORDER ITEM: $52,142 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 9— MOBILIZATION TO HEWES MIDDLE SCHOOL This item is for Contractor mobilization costs associated with a contract sequence change. The Contractor was directed to shift its operation to the area in front of Hewes Middle School. This design change was requested by the public in conjunction with the school district in order to take advantage of the summer months when school was out of session. This item was negotiated with the Contractor pursuant to Section 44(B) 1 of the General Requirements(Reference FCO-741-003). ADDED COST THIS CHANGE ORDER ITEM: $22,166 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 10—ADDITONAL LATERAL AT TUSTIN WATER PLANT This item compensates the Contractor for costs associated with the installation of an additional sewer lateral for the City of Tustin Water Plant. This additional work was requested by the District to prevent surcharging of the existing sewer downstream of the plant. The additional work consisted of traffic control, pavement removal, excavation, shoring, sewer installation, backfill, and final paving. This item was negotiated with the Contractor pursuant to Section 44(B) 1 of the General Requirements (Reference FCO-739-009). ADDED COST THIS CHANGE ORDER ITEM: $15,519 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL COST THIS CHANGE ORDER: $349,612 TOTAL TIME EXTENSION THIS CHANGE ORDER: 20 Calendar Days �e Page 5 of 6 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB Inc. C.O. No.: One 1 Date: November 17, 2004 Job: Gisler Redhill North Trunk Sewer, Reach "A". Contract No. 7-36: Orange Trunk Improvements,Contract No.7-39:Gisler Redhill/North Trunk Sewer Improvements; Contract No. 7-41: and City of Tustin Project Numbers 6106, and 6151 Consultant: AKM 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 day extension of time to perform the work is required for this Change Order, and that no direct or indirect, incidental or consequential costs, expenses, losses or damages have been or will be incurred by Contractor, except as expressly granted and approved by this Change Order. SUMMARY OF CONTRACT TIME Original Contract Date: April 7, 2004 Original Contract Time: 600 Calendar Days Original Completion Date: November 24, 2005 Time Extension this C.O.: 20 Days Total Contract Time Extension: 20 Days Revised Contract Time: 620 Calendar Days Revised Final Completion Due Date: December 14, 2005 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $18,375,999.00 Prev. Authorized Changes $ 0.00 This Change (Add) $ 349,612.00 Amended Contract Price 18 725 611.00 Page 6 of 6 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: ARB Inc. C.O. No.: One 1 Date: November 17, 2004 Job: Gisler Redhill North Trunk Sewer, Reach "A". Contract No. 7-36; Orange Trunk Improvements,Contract No.7-39:Gisler Redhill/North Trunk Sewer Improvements; Contract No. 7-41; and City of Tustin Project Numbers 6106, and 6151 Consultant: AKM Board Authorization Date: November 24, 2004 ORANGE COUNTY SANITATION DISTRICT Recommended by: John D. Linder, P.E. Date Construction Manager Approved by: David A. Ludwin P.E. Date Director of Engineering Accepted by: ARB, INC. Contractor Date EDMS: 003781050 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-91 13(d) Orange County Sanitation District FROM: David Ludwin. Director of Engineering Originator: Larry Rein. Project Manager SUBJECT: BUSHARD TRUNK SEWER REHABILITATION, JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 10 to Bushard Trunk Sewer Rehabilitation. Job No. 1-2-4, with Steve P. Rados, Inc., authorizing an addition of $242,360, increasing the total contract amount to $31,911,805. SUMMARY • Job No. 1-2-4, Bushard Trunk Sewer Rehabilitation includes the installation of 21,600 linear feet (just over four miles) of 108-inch reinforced concrete pipe, manholes, junction structures, and miscellaneous utility relocations. • Boyle Engineering Corporation prepared the plans and specifications and the contract was awarded to Steve P. Rados, Inc. on June 26, 2002. • Change Order No. 10 includes seven items of additional work to Job No. 1-2-4. There are no errors and omissions associated with this change order. Liquidated damages on this contract are $2,000 per calendar day and the bonus provisions are $750 per calendar day. Contract Schedule Contract Start Date September 16, 2002 Original Contract Completion Date March 18, 2004 Total Number of Change Orders to Date 10 Current Contract Completion Date March 26, 2004 Actual Completion Date N/A Days Subject to Liquidated Damages TBD Page 1 Change Order No. 10 Content Item No. Description Amount Days Type 1 Curb, Gutter and Sidewalk $ 110,056 0 Design Change Removal and Replacement 2 Miscellaneous Traffic Devices $ 32,136 0 Design Change 3 Bell Crack Mitigation and $ 48,131 0 Other Repairs on 108-Inch Reinforced Concrete Pipe 4 Sound Blankets - Noise $ 22,778 0 Design Change Control 5 Security Guard Service $ 4,780 0 Design Change 6 Water Line and Valve Work at $ 20,472 0 Design Change Hamilton/Bushard Intersection 7 Undisclosed Steel Casing $ 4,007 0 Changed Condition Total — Change Order No. 10 $242,360 0 Item 1 is for replacement of sidewalk, curb, and gutter mostly associated with a sewer alignment design change. A portion of this work was requested by the City of Huntington Beach (City). The District will be reimbursed under an agreement being developed with the City. Item 2 is a design change required by the City for traffic control improvements. The contract traffic control drawings had been approved by the City prior to construction. Once implemented, the City determined that modifications were necessary for added safety and efficiency. Item 3 is for additional work associated with the installation of the 108-inch concrete pipe. Please refer to "Background for Item 3" under the ADDITIONAL INFORMATION Section. Items 1, 2, and 3 involve a potential time extension to the contract. The impact to the project could not be determined at this time. If justified. a contract time extension for these items will be included in a future change order. Item 4 is for the installation of improved sound blankets around the Contractor's dewatering generators. This design change lowers noise levels for the continuously operating equipment by approximately 14 decibels to accommodate residents living in the vicinity of the construction sites. Item 5 changes the design to include security guard services on the project construction sites for added public safety and elimination of vandalism. Item 6 is for the removal and replacement of a 12-inch waterline, and the addition of a12-inch water valve, required by the City for purposes of added safety and improved emergency response. This is a design change because the contract calls for protection in place of this waterline with no added valves. Page 2 4 Item 7 is for the removal of an undisclosed 15-inch steel casing. This is a changed condition because the casing was not shown on the contract drawings. Job Completion The contract is now 42% complete. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on June 26, 2002. Please refer to the attached Change Order Status Report for information on all previous change orders. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 30,003,210 Previously Authorized Changes $ 1,666,235 This Change Order (CO No. 10, Add) $ 242,360 Change Orders to Date $ 1,908,595 Percent Increase to Date 6.36% Amended Contract Price $ 31,911,805 BUDGET IMPACT ® This item has been budgeted. (Line item: FY 04/05, Section 8, Capital Improvement Program, Collections Facilities, Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Background for Item 3: When installation of the 108-inch reinforced concrete pipe started, 12 out of 19 pipe joints, or 63%, failed the required pressure tests. The failures were due to cracks in the pipe bells. Staff believes the manufacturer has designed the joints too tight causing high stress in the bells when the pipe sections are joined. This joining stress, combined with stresses imparted by the Contractor's construction methods, resulted in cracked bells on some pipe sections. The Contractor maintains that the construction methods employed meet the standards of the industry. The Contractor's supplier maintains that the pipe joints are properly designed. The Contractor believes that responsibility lies within the District's contract documents or the supplier's joint design. Staff maintains that both the construction methods and the pipe joint design are the Contractor's responsibility. Page 3 1 Measures have been taken to reduce the joining stress such as reducing the size of gaskets and cradling of the pipe. These measures have reduced the incidence of o cracked pipe bells. To date, the bells are repaired with epoxy injection of the cracks and sealant injection into the joints. Supplementary measures, described in Item 3 of the attached Change Order, are now being employed to further reduce the joint stress and enhance repair methods. In order to minimize further delays to the project and impact to the public, Staff has notified the Contractor that the District will only accept further repairs on the remaining 108-inch pipe that has been paid for as materials stored, and that the District will not accept any more pipe with the current joint design. Additionally, the District has issued criteria for the design and manufacture of 108-inch pipe that has not been manufactured yet. The Contractor is working with the supplier on a new pipe design. The Contractor claims that the past measures have caused delays and added costs and requested that the District participate in future costs associated with the issue. The Contractor also proposed that both parties reserve their rights to recover these costs in the future. Staff has agreed to participate in the measures and repairs described in Item 3 for the remaining pipe paid for as materials stored. However, Staff has not agreed to other requested costs such as increased production cost to lay the pipe or increased additional cost to manufacture new pipe. ALTERNATIVES None CEQA FINDINGS This project was included in the 1999 Strategic Plan Program EIR certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. Additional CEQA documentation for the project was included in Addendum No. 3 to the EIR approved on December 19, 2001. This Addendum will not change CEQA findings. ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order 4. Location and Photo Description of Change Order MB:dm:ba:jo:lc HAntglobalWgenda Draft Reports\PDCV-24 AR C0#10 110404.doc Page 4 BUDGET INFORMATION TABLE BUSHARD TRUNK SEWER REHABILITATION JOB NO. 1-2-4, CO #10 "AP . ........ '1# 0� �Wm Otnwttl gq Pkbposwf. 14 MATEMM Dig p R lriltti lus. FR,' A U T H 0 ft M',* �T S. NO � m, ME, �M— W M Nml M'dINCREASEP A' I'M R� -1R. lw F MNR33 • MIM Ry=n R.fl 4 0 MR Rill U 0II-Mmirl'ur'. AR HN NO, 'I f =W tl�'W�tlll Rh 935hM K-��4�'Ral I H 4 HA 41iiii MR =11, Phase 1 -Project Development S 7,800 $ 74,000 $ 74,000 'Rji. $ 74.000 $ 74,000 S 73,763 100% Phase 2-Preliminary Design S 15,002 $ 9,200 S 9,200 1 S 9,200 S 9,200 S 9.147 99% to Phase 3-Design S 1,051,724 $ 2,690.400 S 2,690,400 ' S 2,690,400 S 2,690,400 S 2,550.653 95% Phase 4-Construction S 24,180,051 $ 35,205,635 $ 242,360 S 35,447,995 S 35,205,635 $ 242,360 S 35,447,995 S 17.325,542 49% Phase 5-Commissioning $ 50,000 S 50,000 a $ S Phase 6-Close-Out $ 30,000 S 30.000 f S $ Phase 7-Contingency S 7,548,924 $ 1,333,765 $ (242.360) S 1,091,405 M. if PROJECTTOTAL S 32,803,501 $ 39,393,000 $ S 39.393,000 S 37,979,235 $ 242,360 $ 38,221.595 S 19,959,105 52% lReimbursable Costs IPROJECT NET S 32,803,501 $ 39,393,000 $ S 39,393,000 S 37,979,235 1 $ 242,3601 S 38,221.595 1 S 19,959,105 52% PSA/Contract Design PSA $ 269.900 $ 2,019,411 $ - S 2,019,411 S 2,019,411 S - S 2,019,411 S 1,845,798 91% Construction Contract S 21,011,000 $ 31,669,445 $ 242,360 S 31,911,805 S 31,669,445 $ 242,360 S 31,911,805 S 13,520.599 42% EDMS 003781055 CHANGE ORDER STATUS REPORT BUSHARD TRUNK SEWER REHABILITATION JOB NO. 1-2-4 CO #10 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM TIME TO DATE DATE COST TO DATE INCREASE (DAYS) (DAYS) CONTRACT Sept. 16, 02 $30,003,210 $30,003,210 550 550 CO NO. 1* April 23, 03 $150,000 $30,153,210 0.50% 0 550 CO NO. 2 June 25, 03 $107,724 $30,260,934 0.86% 2 552 CO NO. 3 October 22,03 $44,293 $30,305,227 1.01% 1 553 CO NO. 4 February 25,04 $380,251 $30,685,478 2.27% 0 553 CO NO. 5 March 24, 2004 $409,301 $31,094,779 3.64% 0 553 CO NO. 6 May 26, 2004 $27,612 $31,122,391 3.73% 5 558 CO NO. 7 June 23, 2004 $163,618 $31,286,009 4.28% 0 558 CO NO. 8 July 21, 2004 $230,317 $31,516,326 5.04% 0 558 CO NO. 9 September 22, 2004 $153,1191 $31,669,445 5.55% 0 558 ..:::'. h"! .9`33a >''• ,o:::: i .. a2e } Y, '<": Ti 2.§!e_ yr &.1e,ae laP .SS£,.;'S.:is&,. ..Y..yy�� l..y:v':!�j"!`a .�':Q.'4.... 4 6,T< ads' '!L'-.. 8:''i n :.x,$: a 28 i A..\.&' ¢ S �in n�] }b/e{/�'►a{�r�` .5,a i �W3. •L &VY. 3 ]d Y k:.'3 a.�: ;.(.e Sa d Riau; LR. :1�0� t .e .d, L s a'"'.a ��i' 4 ' � ?Y;: 8 k8; '�A �i7; � PV,V:`:' 3..'<d;.'o..�" .iXSi 8.c'i'. 'R: 3 aez `Sa.s F'dV�a• 3'as k - s'h a ,.: IF ..3 tt ' ,. Oil *Approved by PDC Committee per delegated authority by Board Resolution 99-23 EDMS 003781056 t Page 1 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation Amount of this Change Order(Add)(Sed,int) 242,360 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 —CURB, GUTTER AND SIDEWALK REMOVAL AND REPLACEMENT This is an ongoing item associated with a sewer alignment design change for the removal and replacement of sidewalk panels, curb and gutter along the proposed 108-inch Bushard Trunk Sewer alignment between sewer stations 27+00 and 95+21. Also, adjacent to some of those replacement locations are sidewalk panels, curb and gutter that were damaged by tree roots prior to construction. The City requested repair of pre-existing damage for functionality and to match newly installed sidewalk, curb and gutter. This City-requested work is not part of the Contract. OCSD agreed to fund the work under this Contract because the Contractor is working on similar improvements in the same area. The City and OCSD are in the process of developing a reimbursement agreement as a vehicle for the City to compensate OCSD for the cost of this work. The sidewalk, curb and gutter damaged by construction operations was caused by a District-required alignment design change for the installation of 21-inch and 27-inch sewers between sewer stations 42+00 and 95+21. Repair work is continuing, and the Contractor is compensated periodically. This item pays for improvement work between July 2, 2004 and August 9, 2004. The work consisted of concrete breaking for removal, disposal of concrete, subgrade grading and compaction, and concrete replacement. The Contractor has reserved its right to submit a time impact analysis for this item at a later time to support the extension of the completion date of the contract. This work was accomplished by Contractor's force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-14, FCO 124-54, CO No. 5-Item 1, CO No. 7- Item 3, CO No. 8-Item 5, CO No.9-Item 5) ADDED COST THIS CHANGE ORDER ITEM: $ 110,056.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 2 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation ITEM 2- MISCELLANEOUS TRAFFIC DEVICES This item is for labor, material, and equipment required for revisions to the contract traffic control plans between July 14, 2004 and August 13, 2004, as required by the City of Huntington Beach. The contract documents contain traffic control drawings for all phases of main line sewer installation along the four-mile sewer alignment. When the traffic control was implemented, the City of Huntington Beach required modifications to the traffic control devices around the construction sites. The contract traffic control drawings had been reviewed and approved by the City of Huntington Beach prior to construction. The modifications include additional traffic signs, crash cushions, striping, and installation of temporary traffic lights with associated electrical conduits and wiring. The traffic control modifications will continue throughout the construction phase. This item pays for the extra cost incurred by the Contractor. The Contractor has reserved its right to submit a time impact analysis for this item at a later time to support the extension of the completion date of the contract. This work was accomplished by Contractor's force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-55, CO No. 8-Item 6, CO No.9-Item 6) ADDED COST THIS CHANGE ORDER ITEM: $32,136.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 3 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation ITEM 3— BELL CRACK MITIGATION AND REPAIRS ON 108-INCH REINFORCED CONCRETE PIPE This item funds extra cost incurred by the Contractor associated with Item 8 of previous Change Order No. 8, which was approved by the Board on July 21, 2004, and Item 7 of previous Change Order No. 9, which was approved by the Board on September 22, 2004. These items explained that further additional costs will be included in future change orders. For reference, included below is the text for Item 7 of Change Order No. 9, updated to reflect current pipe installation quantities and the specific additional items of work funded by the District: To date, the District has paid for 7,041 linear feet of 108-inch reinforced concrete pipe as materials stored on site. Subsequent to the payment, the pipe revealed problems with tight joints and cracking. Contractor purports that the problems have caused significant project delays and extra costs for pipe installed prior to March 5, 2004. At this time there are 1,242 feet of uninstalled pipe remaining that the District has paid for as materials stored on site. At the Contractor's request and in the spirit of cooperation to further the parties' collective interest to complete this project as effectively and quickly as possible, the District issued instructions to the Contractor for installation of the remaining paid for 108-inch pipe. The instructions contain additional items of work that are intended to mitigate the pipe problems. Staff has also agreed to initially fund the costs for some of these items as listed below in order to share the short term financial burden associated with the installation of this pipe. This item funds the costs as listed below for the installation of the remaining paid for 108-inch reinforced concrete pipe: 1a) Epoxy repairs to pipe that contains cracks subsequent to delivery on site; 1 b) Special joint testing for joints with one gasket instead of two; 1c) Cement repairs to longitudinal pipe cracks; 1d) Supply and installation of any WEKO-SEALS; le) Preparation of installed pipe for special inspections by the District. The item pays for work under Items 1a), 1c) and 1e), cement repairs to longitudinal pipe cracks, and preparation of installed pipe for special inspection, on Bushard between Banning and Hamilton. The Contractor will continue to incur costs for these items until the main pipe work has passed the Hamilton intersection at sewer station 80+62. The approval of this item is not an admission of any responsibility by the District for these additional costs nor a waiver of any of the District's rights and remedies. The District reserves its rights to recover any funded costs associated with this item. The Contractor has reserved its right to submit a time impact analysis for this item at a later time to support the extension of the completion date of the contract. (Reference FCO 124-60, CO No. 8-Item 8, CO No.9-Item 7) ADDED COST THIS CHANGE ORDER ITEM: $48,131.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 4 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation ITEM 4— SOUND BLANKETS —NOISE CONTROL This item funds extra cost incurred by the Contractor associated with Item 10 of previous Change Order No. 9,which was approved by the Board on September 22, 2004. This item is for the installation of improved sound blankets by a specialty contractor around three continually operating electrical generators used for dewatering. The generators are located on Bushard Street at the Hamilton Avenue and Yorktown Avenue intersections. The sound blankets are required as part of the District's efforts to minimize construction impacts to the residents living in the vicinity of the work. Even though the Contractor is using extra quiet generators which comply with contract requirements, the residents in the area requested increased levels of sound protection. The extra work consisted of the purchase and installation of professionally designed sound blanket walls around the generators. The Contractor will continue to incur costs under this item for future relocations of and modifications to the enclosures. This work was accomplished by Contractor's force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-63, CO No. 9-Item 10) ADDED COST THIS CHANGE ORDER ITEM: $22,778.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 5— SECURITY GUARD SERVICE This item pays for part of the extra costs for security guard services on the project construction sites, starting at the Banning/Bushard intersection, for the months of June, July, and August 2004. The contract requires solid fencing around construction zones to keep the public out of these areas. The Contractor installed the fencing, but the public, especially minors, frequently ignore this barrier and enter the construction site after hours. Individuals have been found inside the 108-inch trench and pipe, and some of the Contractor's equipment has been vandalized. The District and the Contractor decided to hire security guard services, which residents in the vicinity had also requested for added public safety. A cost-sharing agreement was set up since the security services are mutually beneficial, with the District responsible for 40% of the cost. Security guard services are provided on weekdays after Contractor's regular working hours, and continually on weekends. The services will continue and the Contractor is compensated periodically. This work was accomplished by Contractor's force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-64) ADDED COST THIS CHANGE ORDER ITEM: $ 4,780.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days t Page 5 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation ITEM 6—WATER LINE AND VALVE WORK AT HAMILTON/BUSHARD INTERSECTION This item is for labor, material, and equipment required for the removal and relocation of portions of an existing 12-inch waterline in the Hamilton/Bushard intersection at approximate sewer station 67+85, and for the installation of one isolation water valve in the same location. The Contractor had to cross the existing waterline with the proposed 108-inch Bushard Trunk Sewer. The contract requires protection in place of the waterline during installation of the proposed sewer. For purposes of added safety and to assist in the isolation and protection of the water distribution system during the construction work, the City of Huntington Beach required removal and replacement of interfering portions of this line, and installation of one isolation valve. The extra work consisted of traffic control, excavating and shoring, installation of one 12-inch water valve, removal and replacement of 60-feet of 12-inch water line, line disinfection, backfill, and pavement replacement. This work was accomplished by Contractor's force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-66) ADDED COST THIS CHANGE ORDER ITEM: $20,472.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 7— UNDISCLOSED STEEL CASING This item is for labor, material, and equipment required to remove an undisclosed steel casing around an existing City sewer in the Yorktown/Bushard intersection at approximate sewer station 173+70. The Contract requires the Contractor to remove and replace the existing 15-inch City sewer at the intersection. The undisclosed casing had to be removed because it interfered with the replacement of the sewer. The extra work consisted of trench excavation, and removal and disposal of steel casing. This work was accomplished by Contractor's force account pursuant to Section 46 of the General Requirements. (Reference FCO 124-67) ADDED COST THIS CHANGE ORDER ITEM: $4,007.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL ADDED COSTS THIS CHANGE ORDER: $242,360.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days Page 6 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation The compensation set forth in this change order comprises the total compensation due the Contractor,all subcontractors and all suppliers, for the work or change defined in this change order only. By signing this change order, the Contractor acknowledges and agrees, on behalf of himself, all subcontractors and all suppliers,that the stipulated compensation includes payment for all work contained in this change order, plus all payment for the interruption of schedules, extended overhead costs,delay,and all impact, ripple effect or cumulative impact on all other work under this Contract except for work related to Items 1,2 and 3 of this change order. This change order does not address or resolve any claims and/or issues for compensation for time extensions under the Contract and/or related damages by the District, the Contractor, all subcontractors and all suppliers for Items 1, 2 and 3. The District, the Contractor, all subcontractors and all suppliers reserve their rights regarding claims and/or issues related to time impacts or extensions under the Contract and/or damages for delay for Items 1, 2 and 3. The execution of this change order should not be deemed to be a waiver by any party regarding time extensions under the Contract and/or damages or impacts for Items 1, 2 and 3. Additionally, the District reserves its rights to recover costs funded under Item 3. SUMMARY OF CONTRACT TIME Original Contract Date: September 16, 2002 Original Contract Time: 550 Calendar Days Original Completion Date: March 18, 2004 Time Extension this C.O.: 0 Calendar Day Total Contract Time Extension: 8 Calendar Days Revised Contract Time: 558 Calendar Days Revised Final Completion Due Date: March 26, 2004 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $ 30,003,210.00 Prev. Authorized Changes $ 1,666,235.00 This Change (Add) (9edUst) $ 242,360.00 Amended Contract Price $ 31,911,805.00 Page 7 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Steve P. Rados, Inc. C.O. No.: Ten 10 Date: November 17, 2004 Job: Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4 Consultant: Boyle Engineering Corporation Board Authorization Date: November 17, 2004 ORANGE COUNTY SANITATION DISTRICT Recommended by: John D. Linder, P.E. Date Construction Manager Approved by: David A. Ludwin, P.E. Date Director of Engineering Accepted by: Steve P. Rados, Inc. Contractor Date EDMS 003781058 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-92 13(e) Orange County Sanitation District FROM: David A. Ludwin, Director of Engineering Originator: Alberto Acevedo, Project Manager SUBJECT: COAST TRUNK SEWER REHABILITATION, CONTRACT NO. 11-26 GENERAL MANAGER'S RECOMMENDATION Approve Professional Services Agreement with Malcolm Pirnie. Inc. for preparation of a Preliminary Design Report for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, for an amount not to exceed $2,219,330. SUMMARY • Built in the early 1980s, the Coast Trunk sewer has suffered structural damage due to hydrogen sulfide corrosion. This project will evaluate the extent of the damage and will provide recommendations for the rehabilitation of the pipeline. • The Professional Services Agreement (PSA) includes the following: 1. Preparation of Preliminary Design Report (PDR) to include a series of technical memoranda to document the condition of the pipeline and present a conceptual design of the proposed rehabilitation methods. The PDR will include preparation of an Odor Assessment and Odor Control Plan, assessment of the amount of solids deposited in the pipeline, Preliminary Physical Inspection, CCTV Inspection Report, and a Final Physical Inspection to assess structural conditions, lining integrity, and rehabilitation options. 2. California Environmental Quality Act (CEQA) and permit support services. 3. General Project Management Activities. • Due to the uncertainty of the amount of solids to be removed from the pipeline and the structural conditions of the trunk sewer, staff decided to take a stepped approach to obtain the necessary information before awarding the final removal of the solids deposited in the pipeline, and the final design for the rehabilitation project. This approach will permit the completion of the Preliminary Design Phase where the consultant will perform a physical inspection and assessment of the solids deposited in the pipeline and the assessment of the structural conditions of the entire trunk sewer. Revised 06/04/03 Page 1 • The District solicited proposals from five consulting firms including: Dudek & Associates, Inc.; Earth Tech, Inc.; Malcolm Pirnie, Inc.; Tran Consulting Engineers; and Villalobos & Associates. A pre-proposal meeting was held on August 4. 2004 to present the project objectives and to answer questions or concerns from potential proposers. One of the invited firms entered into a teaming agreement with another invited firm, resulting in a total of four proposals received. • The Evaluation Team evaluated the four proposals and recommends award of the PSA to Malcolm Pirnie. Inc. for an amount not to exceed $2,219,330. PRIOR COMMITTEE/BOARD ACTIONS Please see attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY A total authorization of $2,219,330 is within the project's total budget. The total project budget of S16,635.000 will not change. This project will complete work within Phase 2- Peliminary Design Phase. Therefore, in order to have a sufficient budget for the completion of the project, it was necessary to transfer $500,000 from Phase 3-Design and S1,649,000 from Phase 4-Construction into Phase 2-Preliminary Design ($2,149,000) to accurately account for costs. Please see attached Budget Information Table. BUDGET IMPACT 0 This item has been budgeted. (Line item: Section 8, Page 47) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Constructed in the early 1980s, the Coast Trunk Sewer consists of three reaches, and is located in the City of Huntington Beach. The first two reaches were built under Contract No. 11-13-2 (approximately 1980), and the third reach under Contract No. 11-13-3 (approximately 1982). The Coast Trunk Sewer was designed and built mainly to provide service to an area that was planned to be developed at the time. Some demographic projections from the 1970s indicated that approximately 10,000 additional dwelling units would be built in the Bolsa Chica area. Due to environmental constraints, the development never materialized. When the sewer was designed, it was assumed that the water in the pipe would have a considerable depth under the projected flows. Therefore, the PVC lining specified by the designers covered only 240 degrees of the top inside surface of the pipe. Because the anticipated flows were not achieved, the water in the pipe is constantly shallower than planned: leaving exposed a portion of the bare concrete pipe under the edge of the PVC lining. Revised 06/04/03 Page 2 c This concrete surface between the water surface and the edge of the liner is constantly exposed to corrosion by sulfuric acid condensed on the inside top surface of the pipe (pipe soffit) that drips on the pipe walls. Portions of the Coast Trunk Sewer were videotaped (CCTV) in 1999. District staff located tapes that cover approximately 7,200 Linear Feet (LF) of the total project length of close to 24,000 LF. The tapes cover several sections of pipe that vary in length from 730 to 2,955 LF. The available videotapes show that the corrosion is extensive and appears to be located specifically under the PVC lining. The imaging presented could not focus properly to assess the presence of exposed rebar. Also, the existing videotapes do not provide the information necessary to determine the type and amount of rehabilitation work required to correct the problem. The videotapes also show that the PVC liner has separated at many pipe joints. Some joints also appear to be open between 1 and 1.5 inches. The sewer gases and the sulfuric acid formed in the pipe have potentially entered the open joints and may have corroded the ends of the pipe. The tapes cannot provide sufficient information on the actual joint condition. A significant amount of sand and debris has accumulated over the years because of the low flow velocities in the sewer. Another factor that contributed to the solids buildup was a storm drain that was mistakenly connected for many years to the Coast Trunk Sewer. The storm drain has been disconnected from the District sewer and connected to the storm drain system. This project will provide for the cleaning and physical inspection of the entire Trunk Sewer. The Consultant will prepare a final document to report the final assessment of the pipeline. This report will provide the assessment of the structural conditions of the pipeline, lining integrity, and rehabilitation options if necessary. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project was included in the District's 1999 Strategic Plan Program Environmental Impact Report that was certified on October, 1999. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Proposal Evaluation Report, September 11, 2004 H:lntglobaRAgenda Draft ReportsTDC111-26 PSA Agenda Report.doc Revised 06/04/03 Page 3 BUDGET INFORMATION TABLE COAST TRUNK SEWER REHABILITATION CONTRACT NO. 11-26 WN fl A K pl ,.,M. i i H m NN�Pn: 0. z 1 1,1 r,m! Phase 1-Project Development $ 56,000 $ 66,000 $ - S 66,000 $ 66,000 $ - S 66.000 $ 91,133 138% Phase 2-Preliminary Design S 266,000 S 256,000 $ 2,149,000 $ 2,405,000 $ 184,000 $ 2,219.330 S 2,403,330 $ 15,119 1% Phase 3-Design $ 1,559.000 S 1.560,000 $ (500,0001 $ 1,060,000 $ $ - S #DIV/O! Phase 4-Construction $ 12,357,000 S 12,358,000 $ (1,649,000) $ 10,709,000 $ $ - S S 131 #DIV/O! Phase 5-Commissioning $ 131,000 S 130,000 S 130.000 d $ - S $ #DIV/O! Phase 6-Close-Out $ 39,000 S 38.000 S 38,000 $ $ S $ #DIVIG! Phase 7-Contingency $ 2,227,00D S 2,227,000 2,227,000 $ $ #DIV/O! PROJECT TOTAL 16,635,000 $ 16,635.000 S $ 16,635,000 $ 250,000 $ 2.219.330 $ 2,469.330 1$ 106.3831 4% lReimbursable Costs PROJECT NET 1$ 16.635,000 $ 16,635.000 $ 1$ 16,635.000 I$ 250,0001$ 2.219.3301$ 2.469,330 1$ 106,3831 4% PSA/Contract Design PSA S - $ 2,219,330 $ 2,219,330 $ 2,219.330 $ 2.219,3301 Construction Contract $ 11,133,000 S 11,133,000 $ (1,000,000) $ 10,133,000 $ $ - EDMS.003780192 04-92.1.xis 10/27/2004 Professional Services Agreement Status Report COAST TRUNK SEWER REHABILITATION CONTRACT NO. 11-26 Total Project Budget: $16,635,000 Consultant: MALCOLM PIRNIE Date Amendment Description Cost Accumulated Costs Pending Original PSA Coast Trunk Sewer Rehabilitation — Preliminary Desi n Re ort $ 2,219,330 $ 2,219,330 11-26 PSA Status Report.doc 10/27/04 EDMS: 003780193 Q COAST TRUNK SEWER REHABILITATION CONTRACT NO. 11 -26 September 11, 2004 Proposal Evaluation Report Request for Proposals (RFPs)were sent on July 29, 2004 to the following consulting firms: • Dudek&Associates, Inc. • Earth Tech, Inc. • Malcom Pirnie • Tran Consulting Engineers, and • Villalobos &Associates The five firms had representatives attend the mandatory pre-proposal meeting scheduled on August 4, 2004. Villalobos&Associates enter into a teaming agreement with Malcom Pirnie,therefore four firms submitted a proposal on the due date (August 23, 2004). An Evaluation Team was selected to review and evaluate proposals the same week. Each member of the in-house review panel individually reviewed and ranked the proposals. The review panel consisted of four District members. Each proposal was graded from 1 to 10 (10 being best) in six weighted categories as 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 8) -Rate the team's project management techniques and methods and procedures for performing the tasks. 3. Applicable Staff Qualifications (Weight 10)—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 8)—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 5)—Addresses the appropriateness of assignments to consultant staff and/or subconsultants to consultant teams. 6. Proposed Schedule(Weight 5)—Rates the consultant's proposed schedule as to whether it meets the District's needs and whether the consultant can meet the schedule. This also rates whether the consultant provided an accelerated schedule and could the consultant meet it. EDMS:003781728 1 of4 10/27/2004 9 The initial written proposal rankings were compiled on August 30, 2004. A meeting was then held on September 1, 2004 to discuss the proposals and the reasons and background for individual rankings. Based on these discussions, the Evaluation Team agreed to finalize their rankings and submit the final evaluation forms the next day. These were compiled on September 2, 2004 and presented to the Evaluation Team. Table 1 presents the results of the Team evaluation of the proposals submitted. The top two ranked firms were ranked as follows: 1. Malcom Pirnie 1674 Points 2. Earth Tech 1509 Points The following is a summary of how the evaluation team collectively viewed Malcom Pirnie the top ranked consultant: Malcom Pirnie was ranked number 1 by three of the four review team members. Malcom Pirnie proposal presented several issues in the project approach including a discussion on the potential opportunity to utilize a systematic approach to complete the pipeline assessment work, the proposal included a graphical display of their project approach and execution plan were Malcom Pirnie explained in detail the need to complete the odor assessment and control task at the initiation of the project and in parallel with a preliminary physical inspection to assess rapidly the conditions of the pipeline. The Quality Control and Quality Assurance (QA/QC) plan, as well as their project management procedures were excellent. The proposed Project Manager qualifications are excellent. The proposed project support 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 the work. In addition to these items, the following attributes formed the basis for Malcom Pirnie high ranking: 1. Excellent approach to assess the solids deposited in the pipeline 2. Excellent approach for the removal and disposal of the solids deposited in the pipeline 3. Good discussion regarding sewage flow assessment 4. Excellent managing approach 5. Most relevant Team experience 6. Excellent discussion on modeling of solids deposited, and 7. Good discussion on foul air movement and velocity modeling Fee Proposals After the final ranking of the technical proposals, the sealed fee proposals submitted by all the firms were opened on September 7, 2004. The Fee for Consultant Services received from the consultants arranged in the order from highest to lowest technical ranking were: Total Fee for PDR Services Malcom Pirnie $ 2,556,662 Earth Tech, Inc. $ 1,688,194 Tran Consulting Engineers $ 1,116,397 Dudek &Associates, Inc. $ 3,173,788 EDMS:003781728 2 of 4 10/27/2004 In order to try to bring some rationale to the submitted costs, a detailed review and analysis of the level of effort and fee proposals was requested by the Director of Engineering. The analysis of the level of effort for each proposal gave us an understanding that the proposed level of effort by Malcom Pirnie was of the same order of magnitude as the other top two consultants. It was further determined that the consultant with the lowest fee proposal TRAN Consulting Engineers had underestimated or did not fully understood the scope of work as detailed in the Request for Proposal (RFP) document. It was also found during negotiations meetings with Malcom Pirnie, the highest ranked consultant, that their original fee proposal did not included a fee for sewage by-pass operations and that approximately one third of the cost was associated with the cleaning task and the removal and disposal of the 1,000 cubic yards of solids deposited in the pipeline as quoted in the RFP. At the conclusion of the negotiations meetings with Malcom Pirnie to confirm that the Consultant included all tasks required by the SOW and that each task had the correct associated fee, the final fee was estimated at $ 3,072,876. Table 2 summarizes the final level of effort and fee data from the consultants, including the final fee from Malcom Pirnie with and without the Specialty Subconsultants fee for the removal of the solids deposited in the pipeline. From this evaluation, the PMO Management team made the following decisions: 1. The PSA will include within the ODC's a reimbursable item for the supply of field and safety equipment to perform the Confined Space Entry Activities. This activity includes: trailer mounted ventilation equipment, oxygen trailer, communications equipment, utility trucks, traffic control devices, and Confined Space entry and rescue personnel. The extent of this activity was estimated at 30 days at a cost of$ 7,000 per day, based on the list of items to be provided by the Subconsultant Jamison Engineering Contractors, Inc. (JEC), for a total estimated amount of$ 210,000. Actual payment shall be calculated daily according to the items provided on each day. 2. The PSA will include within the ODC's a reimbursable item for the by-pass of sewage if the physical inspection activities can not be accomplished during the low flow periods. The duration of the by-pass activities was estimated at 170 days, at a cost of$ 3,565 per day, based on the items listed on Attachment"B"of Malcom Pirnie fee proposal, for a total estimated amount of$ 606,050. 3. The PSA will not include the services of a Specialty Subconsultant for the removal and disposal of solids deposited and the cleaning of the pipeline. After the completion of the preliminary physical assessment and the assessment of the amount of solids in the pipeline in accordance with the SOW, the Consultant shall assist the district in the preparation of Bid Documents for the removal of the solids and the cleaning of the pipeline. Items 1 and 2 will only proceed if authorized by the Project Manager. The amounts are not to be exceeded and will be utilized on an as needed basis only. The District reserves the right to modify or cancel these services at any time. Based on the information provided above plus the highest technical ranking, Staff recommends that Malcom Pirnie be awarded the Professional Services Agreement EDMS:003781728 3 of 4 10/27/2004 (PSA) for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, for a total fee not to exceed $ 2,219,330. TABLE 1 COAST TRUNK SEWER REHABILITATION CONTRACT 11 —26 FIRM Dudek& Earth Malcom Tran Consulting Assoc. Tech Pimie En rs. Reviewer 1 335 355 414 304 Reviewer 2 225 319 399 358 Reviewer 3 337 393 434 363 Reviewer 4 270 442 427 354 TOTAL SCORE 1167 1509 1674 1379 AVERAGE SCORE 292 377 419 345 TECHNICAL RANKING 4 2 1 1 3 TABLE 2 COAST TRUNK SEWER REHABILITATION CONTRACT 11 —26 Firm Dudek& Earth Tech Malcom Pirnie Tran Consulting Assoc. Engrs Total Hours 4,833 3,638 4,168 1,714 Total Labor Fee $ 510,858 $ 457,490 $ 554,329 $ 161,947 Labor Cost per hr, $/hr 105.70 125.75 133.00 94.48 Confined Space Entry Fee $ 264,000 $ 189,000 $ 210,000 - Specialty Subconsultant for Solids Removal/Pipeline Cleaning Fee $ 1,857,043 $ 750,000 $ 853,546 $ 385,000 Sewage By-Pass Fee (1) 2 $ 606,050 $45,000 Subconsultants Fee $ 523,386 $ 255,052 $ 757,155 $ 524,450 ODC's $ 18,500 $ 36,652 $ 91,800 - Total Fee, w/Specialty Subconsultant $ 3,173,788 $ 1,688,194 $ 3,072,876 $ 1,116,397 Total Fee, w/out Specialty Subconsultant $ 2,219,330 (1) This cost is included in the solids removal fee (2) Not presented as a separate cost EDMS:003781728 4 of 4 10/27/2004 PDC COMMITTEE Meeting Date To Bd. of Dir. 11/4/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-93 13(f) Orange County Sanitation District FROM: David Ludwin. Director of Engineering Originator: Bob Schirripa, Project Manager SUBJECT: REHABILITATION OF ODOR CONTROL FACILITIES, JOB NO. J-71-8 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Professional Services Agreement with Camp, Dresser, & McKee for Rehabilitation of Odor Control Facilities, Job No. J-71-8, providing for modifications to the scope of work for an additional amount of $645,674, increasing the total amount not to exceed S4,220,881. SUMMARY • In October 2003, the Orange County Sanitation District (District) issued a Professional Services Agreement (PSA) to Camp, Dresser, & McKee (CDM) to provide engineering services for the Rehabilitation of Odor Control Facilities, Job No. J-71-8. This project upgrades the odor control facilities at the Metering & Diversion structure.. Headworks, and Primary Clarifiers in Plant No. 1. These upgrades include the replacement of the current single stage chemical scrubbers with a new two stage scrubbing system consisting of a biotower followed by a chemical scrubber, along with the associated supporting facilities such as ductwork, supply fans, and chemical supply systems. • Amendment No. 2 adds the following work items to the currently approved PSA: Expands Power Building 3A to the south to house the electrical and instrument equipment required for Rehabilitation of Odor Control Facilities, Job No. J-71-8 as well as additional electrical items added as a result of the recommendations of Job No. J-25-4. Electrical System Power Studies. Provides the engineering to relocate existing electrical and instrument equipment from the existing Building 3A to the new expansion. Performs air modeling of Plant Nos.1 and 2 based on odor units instead of H2S equivalents. Performs a feasibility study to determine the proper foul air treatment system required to maintain the zero odor complaint policy now that the District is measuring odor control units rather than 1-12S. Provides Value Engineering Review Services. H WeptlagendaMoard Agenda Reports12004 Board Agenda Reports11104111em 13(1)Camp Dresser McKee doc Revised 06/04/03 Page 1 Provides the evaluation of design alternatives via a triple bottom line (TBL) model. PRIOR COMMITTEE/BOARD ACTIONS Please refer to the attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY The attached Amendment No. 2 letter from CDM dated October 25, 2004 summarizes the scope and costs associated with the proposed Amendment No. 2. Authorization is requested to increase the value of the PSA by $645,674 which will result in a total PSA not to exceed $4,220,881. Also requested is the approval to reallocate $645,674 from Contingency to Phase 3 Design, to fully cover the proposed Amendment No. 2 as indicated in the attached Budget Information Table. BUDGETIMPACT ® This itern has been budgeted. (Line item: Section 8 — Page 101) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The work identified in proposed Amendment No 2 has been determined by Staff as necessary for the successful completion and implementation of Rehabilitation of Odor Control Facilities, Job No. J-71-8. As listed. the work identified in the proposed Amendment No. 2 was the result of design requirements and field investigations by the Consultant during the preparation of the Preliminary Design Report. Power Building 3A Expansion: During the Preliminary design, it became clear that the electrical and instrumentation equipment required to implement Rehabilitation of Odor Control Facilities. Job No. J-71-8, as well as the incorporation of the Electrical System Power Studies. Job No. J-25-4, recommended upgrades would not fit into the existing Power Building 3A. After discussions with the consultant, it was determined that a side study would need to be performed to determine the best approach to expanding Building 3A. Preliminary discussions determined that the best approach would be to expand the building to the south. However. this approach needs to be firmed up as well as completing the design of the expansion. This is anticipated to be done during the development of Design Submittal 2. Air Modeling: During the past several months. the Air Quality division has determined that there are residual odors emitting from both the treatment plants. These odors appear to be coming from compounds other than hydrogen sulfide (1-12S). This prevents the District from complying with the policy of zero odor complaints during normal operations. Based on this assessment, the Air Quality division determined that modeling the plants using HZS equivalents does not adequately characterize the odors. H ldeptlagendalBoard Agenda Reports12004 Board Agenda Reports11104111em 13(f)Camp Dresser McKee.doc Revised 06/04/03 Page 2 As such, the Air Quality division felt that it would be best to remodel both plants using odor units as a parameter. r" Once the plants are modeled using odor units, the consultant can determine which combination of treatment systems would be required to bring the odors down to an acceptable level. The consultant would then perform feasibility studies for each of the options in order to determine the rough order of magnitude cost (capital and operating). This information would then be used in the Triple Bottom Line (TBL) model to rank the alternatives based on economic, societal, and environmental impacts as stated in the District's Unifying Strategies. Value Engineering: This is a review of the design by an independent group of individuals to uncover areas in the design that could be improved, modified, or deleted in order to lower the life cycle cost while providing "value". It is important that the VE be performed by individuals who were not involved in the original design. This provides a fresh set of eyes and minds which normally results in uncovering design alternatives that reduce the life cycle cost. As an example, is it more cost effective to treat the odors using a biotower followed by a chemical scrubber or should the second stage be activated carbon. The VE team will present its results in the form of a life cycle cost analysis that shows which second stage treatment has the lowest life cycle cost and should be used. In a similar fashion, the VE team would move through the rest of the design. For this project, the VE will be performed by a team of CDM personnel who have had no involvement in the design. The original scope of work stated that the VE consultant would be obtained by the District but it was considered more cost effective and less disruptive to perform the VE in the manner proposed in this Amendment. Triple Bottom Line: The Unifying Strategies requires the District make their capital investment decisions based on a triple bottom line (TBL) that consists of economic, societal, and environmental impacts. Because Rehabilitation of Odor Control Facilities. Job No. J-71-8 is an odor control project, it was determined that it was best suited to serve as a pilot project for the evaluation and implementation of a computer model to rank a number of alternatives based on a TBL. To this end, GHD, a consultant specializing in this type of work, has developed a model that evaluates different alternatives based on a TBL. This model needs to be customized to meet the District's decision criteria. Once this is done, the TBL model would be used to rank the air modeling alternatives discussed above. The result would then be reviewed with District management to reach a consensus on which alternative to develop into a detailed design. ALTERNATIVES Not issue Amendment No. 2. If Amendment No. 2 is not issued, this additional work will not be funded and the chances for the success of the project will significantly decrease as Staff believes that this work needs to be performed in order to provide the required Wdeptl,agendalBoard Agenda Reports@004 Board Agenda Reports\11041dem 13(f).Camp Dresser McKee doc Revised. 06104/03 Page 3 electrical equipment and associated items for the safe and reliable operation of the odor control facilities. CEQA FINDINGS This project was included in the District's Strategic Plan Program EIR. The EIR was certified on October 27, 1999 and a Notice of Determination was filed on October 29, 1999. In addition, a Notice of Exemption was filed with Orange County on February 24, 2004. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Letter from CDM dated October 25, 2004 RS:ba:eh Wdepl%agendalBoard Agenda Reporls12004 Board Agenda Reports111 o4Ulem 13(f).Camp Dresser McKee.doc Revised 0&04103 Page 4 BUDGET INFORMATION TABLE REHABILITATION OF ODOR CONTROL FACILITIES JOB NO. J-71-8 mq,;4 43 rr'W-10S. ........... �4 'IM T -Mig 12 MW v a. g1w pkIwa-i", NbW 01, p. .in Exi PRO pf bid, P'T i 1801 13 g�Kg' ON C I IBM- A I'M x lo W, Re M egg, ..pigu, W,V 010MVt . RRM". aw Phase Project Development $ 100,000 $ 56,000 $ 56.000 $ 56.000 $ 56,000 $ 46,180 82% Phase Preliminary Design $ 632,000 $ 1,356,000 $ 1,356,000 $ 1,356,000 $ 1,356,000 $ 1.340,430 99% Phase Design $ 3,364,000 $ 4,117,685 $ 645,674 $ 4,763,359 $ 4,117.685 $ 645,674 $ 4,763,359 $ 237,080 5% Construction $ 24,396,000 $ 23,396,000 $ 23,396,000 $ 2,103,123 $ $ 2,103,123 $ 164,578 8% Commissioning $ 421,000 $ 346,000 $ 346,000 $ 210.312 $ 210,312 $ (21,516) -10% Close-Out S 105,000 S 79,000 S 79.000 $ 52,578 $ 52,578 $ 0% Contingency $ 4,206,000 $ 4,251,000 $ (645,674) S 3,605,326 $ 0% PROJECT TOTAL $ 33.224,000 $ 33,601,685 $ $ 33,601,585 $ 7,895,698 $ 645,674 $ 8,541,372 $ 1,766,752 21% lReimbursable Costs I 1PROJECT NET 1 $ 33,224,000 $ 33,601,685 $ $ 33,601,685 $ 7,895,698 1 $ 645,6741$ 8,541,372 1 $ 1,766,752 1 21% PSA/Contract Design PSA $ 2,103,123 S 3,575,207 $ 645,674 $ 4,220,881 $ 3,575,207 $ 645,674 $ 4,220,881 $ 1,228,992 33% Construction Contract $ 21,031,232 $ - $ $ - $ EDMS:003781089 Professional Services Agreement Status Report REHABILITATION OF ODOR CONTROL FACILITIES JOB NO. J-71-8 Total Project Budget: $33,224,000 Consultant: Camp, Dresser, & McKee (CDM) Date Amendment Description Cost Accumulated Costs 10/22/03 Original Design engineering services for modifications of odor control facilities at Metering & Diversion, Headworks, and $3,197,522 $3,197,522 Primary Facilities in Plant No. 1. 9/22/04 Amendment 1 Additional design services required for the expansion of Power Building#4 and associated electrical equipment as $377,685 $3,575,207 well as the implementation of electrical design changes as a result of project J-25-4. Additional design services required for the expansion of Pending Amendment 2 Power Building 3A including the cost for relocating existing $645,674 $4,220,881 equipment to the new expansion. Also, additional design services for the modeling of Plant#1 & 2 based on odor units instead of H2S equivalents along with the feasibility studies to determine the proper treatment processes. RS:bja:eh EDMS: 003781087 10/27/04 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-94 13(g) Orange County Sanitation District FROM: David Ludwin. Director of Engineering Originator: Larry Rein, Project Manager SUBJECT: BUSHARD TRUNK SEWER REHABILITATION JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 7 to the Professional Services Agreement with Boyle Engineering Corporation for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, providing for additional engineering construction support services for an additional amount of $326,509, increasing the total amount not to exceed $2,345,920. SUMMARY • The project is located within the Cities of Huntington Beach and Fountain Valley. The trunk sewer is in Bushard Avenue between Ellis Avenue and Banning Road, Banning Road between Bushard Avenue and Brookhurst, and Brookhurst between Banning Road and Plant No. 2. The project consists of four miles of 108" sewer pipe. • Construction began in November, 2002 and was anticipated to be completes by March 2004. Boyle Engineering has been providing engineering support services, including geotechnical testing, to support the construction activities. • Problems have occurred with the pipe being supplied for the project. These problems are continuing to require additional engineering expertise and support to resolve. • Due to the pipe problems and lower production than anticipated, the project will take much longer than anticipated to complete. The longer schedule has increased engineering and other costs. including the geotechnical field observation costs, which are the largest single item in the amendment. • Since these extra costs are a direct result of the extended schedule, the District may seek reimbursed by the contractor. PRIOR COMMITTEE/BOARD ACTIONS Please see attached PSA status report. Page 1 PROJECT/CONTRACT COST SUMMARY The authorization is within the project's budget for FY2004/05. $326.509 will need to be reallocated from Contingency to Phase 4 Construction. Please see the attached Budget Information Table. BUDGETIMPACT ® This item has been budgeted. (Line item: FY 2004-05. Section 8, Page 53: Capital Improvement Program, Collections Facilities, Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4.) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Amendment 6 to the contract was approved in December 2003. At this time, it appeared the pipe problems were being resolved as well as other concerns with the project. Since approval of amendment 6, pipe problems have continued as well as problems with traffic control and production. The public impacts have also become apparent. Boyle Engineering has been instrumental in working on the pipe problems, traffic control concerns, and lessening the impacts to the public. This amendment will provide compensation for these services as they continue to be needed. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project was included in the 1999 Strategic Plan Program EIR certified on October 27, 1999. A Notice of Determination was filed on October 29, 1999. The project was included in Amendment No. 3 to the Program EIR approved on December19, 2001. The amendment did not change the CEQA findings. ATTACHMENTS 1. Budget Information Table 2. Professional Services Agreement Status Report 3. Letter Proposal for Amending Professional Services Contract, from Boyle Engineering, dated October 1, 2004 LR:eh H.\ntglobal\Agenda Draft Reports\PDC\I-2-4 AR 11-04-041.doc Page 2 BUDGET INFORMATION TABLE BUSHARD TRUNK SEWER REHABILITATION JOB NO. 1-2-4,Amendment 7 Boyle Contract Ev: 'r'1�1�`,� tt-g M 4-4, 11 `v`-1 MJ�U a��-, 5,6-a Ulii&a- A 2, g o� �'.l 5.1iR 5fli",0, 44 M a t g�g,- 4 -:-ME ETAq Q OR V.NO wn- t, MMI -"6SE0 `14 !11 w--,I w " h 1 4111- hills 4-RE:, k A 6, 4% U t.d. FAN-- H.- a M MW�t�Y, M! %,magg n MA m Phase 1 -Project Development $ 7,800 $ 74,000 $ 74,0001 $ 74,000 $ 74,000 S 73,763 100% Phase 2-Preliminary Design $ 15,002 $ 9,200 $ 9,200 $ 9,200 $ 9,200 S 9,147 99% Phase 3-Design $ 1,051,724 $ 2,690,400 $ 2,690.400 $ 2,690,400 $ 2,690,400 S 2,550,653 95% Phase 4-Construction $ 24,180,051 S 35,447,995 $ 326,509 $ 35,774,504 $ 35,447,995 $ 326.509 $ 35,774,504 S 17,325,542 48% Phase 5-Commissioning S 50,000 $ 50,000 $ $ Phase 6-Close-Out S 30.000 $ 30,000 $ $ Phase 7-Contingency $ 7,548,924 S 1,091,405 $ (326,509) $ 764,896 $ PROJECT TOTAL S 32,803,501 $ 39,393,000 $ $ 39,393,000 $ 37,979,235 $ 326,509 $ 38,548.104 S 19,959,105 52% lReimbursable Costs 1PROJECT NET S 32,803,501 $ 39,393,000 $ $ 39,393,000 $ 37,979,235 1 $ 326,5091 $ 38,548,104 1 S 19,959,105 1 52% PSA/Contract Design PSA $ 269,900 S 2,019,411 $ 326,509 $ 2,345,920 $ 2,019,411 $ 326,509 $ 2,345,920 S 1,884,076 80% Construction Contract $ 21,011,000 S 31,911,805 $ - $ 31,911,805 S 31,911,805 $ - $ 31,911,805 S 13,520 599 42% *Table assumes Change Order#10 to the Construction Contract has been ratified. EDM& 003781476 Professional Services Agreement Status Report Bushard Trunk Sewer Contract No. 1-24 Total Project Budget: $39,393,000 Consultant: Boyle Engineering Corporation Date Amendment Description Cost Accumulated Costs 4/26/00 Original PSA Engineering design and construction support $845,300 $845,300 services for replacement and/or rehabilitation of Bushard Trunk Sewer. 1/11/01 Amendment No.1 Increasing the utility search activities to include 37 $24,800 $870,100 additional potholes 3/21/01 Amendment No. 2 Provide for additional study of City of Huntington $12,808 $882,908 Beach sewer interfacing. 6/27/01 Amendment No. 3 Provide for groundwater hydraulic testing and $85,000 $967,908 include fiber optic cable conduit in the construction documents 2/28/02 Amendment No. 4 Additional engineering services including $231,200 $1,199,108 geotechnical boring work, City sewer relocation, study of flow handling for construction, Plant No. 2 entrance modifications, City storm drain relocation at Adams Blvd., pavement survey, and the connection to Plant No. 2. 10/23/02 Amendment 5 Additional engineering services for construction $555,403 $1,754,511 support including submittal review, consultation, meetings, pipe inspection, materials inspection, and eotechnical reviews. EDMS 003781361 10/27/04 Date Amendment Description Cost Accumulated Costs 12/17/03 Amendment 6 Additional engineering services related to pipe $264,900 $2,019,411 problems, traffic control plans, pipe lining study, large number of submittal reviews, and additional meetings. Pending Amendment 7 Additional engineering services related to project $326,509 $2,345,920 time extension, continued pipe problems, and services to meet public concerns. EDMS 003781361 10/27/04 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/4/04 11/17/04 AGENDA REPORT Item Number Item Number PDc04-95 13(h) Orange County Sanitation District FROM: Dave A. Ludwin, Director of Engineering Originator: Alberto Acevedo, Project Manager SUBJECT: ELECTRICAL EQUIPMENT REFURBISHMENT AND PROTECTION JOB NO. SP-81 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 1 to the Professional Services Agreement with Fluor Enterprises, Inc. for Electrical Equipment Refurbishment and Protection, Job No. SP-81, providing for additional engineering services for an additional amount of $128,549. increasing the total amount not to exceed to $214.049. SUMMARY • The original project included replacement of switchgear for the Return Activated Sludge (RAS) equipment and the Dissolved Air Flotation Thickener (DAFT) at Plant No. 2, addition of air conditioning systems in all the areas to be modified by this project, and the addition of a roof over Distribution Center "D". • During the presentation of Design Submittal 1 to the District, staff identified other equipment that needed to be updated or replaced in this project in order to implement the recommendations from project J-25-4, Electrical Power System Studies. The J-25-4 studies identified deficiencies throughout Plant Nos. 1 and 2 in the electrical power distribution systems, and made recommendations for improvements. In addition, the studies recommended that the improvements be added/included in other existing or planned Capital Improvement projects. • This Amendment provides for the upgrade or replacement of the additional existing electrical equipment items associated or located near the original project and recommended by the J-25-4 study. PRIOR COMMITTEE/BOARD ACTIONS Please see the attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY Approval of Amendment No. 1 is being requested in the amount of S128.549, as shown in the attached Budget Information Table. Authorization of this amount is within the project's budget for preparation of the Final Design. The total budget of $3,091,000 will not change. To accurately account for cost, it was necessary to transfer $130,000 from Revised 06/04/03 Page 1 Phase 4-Construction to Phase 2-Preliminary Design ($1,000) and Phase 3-Design W ($129,000). Please see the attached Budget Information Table. BUDGETIMPACT 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 A PSA was awarded to Fluor Enterprises, Inc. at the June 2003 Board meeting. The original design Scope of Work called for completion of a design to replace the switchgear for the Return Activated Sludge Pumping System and the Sludge Thickener, the replacement of the Motor Control Center (MCC) for the Sludge Thickener, design of a roof over the Distribution Center "D", and the design of Air Conditioning equipment at all locations where new equipment is to be installed. This Amendment No. 1 will provide for the addition or replacement of other associated equipment to the sludge systems in accordance with the recommendations identified in the J-25-4 Electrical Power System Upgrade Program. J-25-4 Study identified deficiencies throughout Plant Nos. 1 and 2 in the electrical power distributions to all systems, and made recommendations to improve power systems. The recommended improvements are to be added to existing projects. Items to be included in this project are: high resistance grounding to existing transformers, install new circuit breakers in the RAS — MCC, batteries in the RAS switchgear, relocation of the bridge crane starter, and the replacement of the RAS transformers. A detailed list of the design elements to be completed under this Amendment No. 1 is attached in the Proposal Letter from Fluor Enterprises, Inc. dated October 7, 2004. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project is exempt per CEQA and District Guidelines, Section 15301 (B). A Notice of Exemption was filled with the County of Orange on May 22, 2003. ATTACHMENTS 1. Budget Table 2. PSA Status Report 3. Proposal Letter from Fluor Enterprises, Inc. dated October 7, 2004 AAC:eh H\dept\agenda\Board Agenda Reports\2004 Board Agenda Reports\1104\Item 13(h).Fluor.doc Revised 06/04103 Page 2 BUDGET INFORMATION TABLE ELECTRICAL EQUIPMENT REFURBISHMENT AND PROTECTION JOB NO. SP-81 .. ........ 6 -i W" 'Ift AN -,ii 1 464 "6�IiR ... .. .... ff E p p 6. �,-n mom P, 9; IN IA� ,MPR99D":� ;`,z,"`PR0j w, Y. ',PA THORIZATIO Y. f n-,A�Kjai` cc: a V".,R if rl 11 is ,RE;xo lexpp Bbw IR8 g�q -g, 31 fo 4� .. .. . .. Phase 1-Pro'ect Development $ 34,000 $ $ S $ 0% Phase 2-Preliminary Design $ 92,000 $ 2,000 S 1,000 $ 3,000 $ 2,000 $ 1,000 S 3,000 $ 2,569 86% Phase 3-Design S 427,000 S 328,000 S 129,000 $ 457.000 $ 328,000 $ 128,549 S 456,549 $ 78,192 17% Phase 4-Construction $ 2,270.000 $ 2,270.000 S (130,000) $ 2,140,000 $ S - $ 4,927 0% Phase 5-Commissioning $ 118,000 $ 118,000 $ 118,000 $ S $ 904 01% Phase 6-Closeout 27,000 S 30,000 $ 30,000 $ S $ 0% Contingency $ 344,000 S 343,000 343,000 $ S $ 0% PROJECTTOTAL $ 3.312,000 1 $ 3,091,0001 S - 1 $ 3,091,000 $ 330,000 $ 129,5491 S 459,549 $ 86,592 19% lReimbursable Costs IPROJECT NET S 3,312,0001 S 3.091,000 1 S - $ 3.091,000 $ 330,000 $ 129,5491 S 459.5491$ 86,592 1 Design PSA I S 85.500 $ 128,5491 $ 214.049 11 $ 85,5001 S 128,5491 S 214,049 1 $ 0% Construction Contract I S 1.716,3881 1 $ 1,716,3881 1 $ - 1 1 S -1 $ - 1 0% EDMS 003781646 1 of 1 10/27/2004 Professional Services Agreement Status Report Electrical Equipment Refurbishment & Protection Job No. SP-81 Total Project Budget: $ 3,091,000 Consultant: Fluor Enterprises, Inc. Start Date of Project: 06/30/2003 Date Addendum Description Cost AccumulatedCosts 6/25/2003 OPSAal Engineering Design $ 85,500 $ 85,500 Additional design work to upgrade or replace 11/04/04 1 additional electrical equipment to meet the $ 128,549 $ 214,049 requirements of J-25-4 project. EDMS:003781648 1 of 1 10/27/2004 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-96 13(i) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Jim Burror, Engineering Supervisor SUBJECT: Treatment Plant Strategic Plan Update, Job No. J-102 GENERAL MANAGER'S RECOMMENDATION: Approve Professional Services Agreement with Black & Veatch Corporation to provide an Energy Master Plan for the Treatment Plant Strategic Plan Update, Job No. J-102, for an amount not to exceed $1,894,660. SUMMARY: • The District's power demand is expected to increase 100% when secondary treatment expansion is complete in 2012. The District's power demand will be roughly equal to Huntington Beach. The purpose of this project is to prepare an Energy Master Plan for both treatment plants as part of the larger update of the Orange County Sanitation District's (OCSD) Strategic Plan to meet this demand. • OCSD has completed the planning for secondary treatment facilities and validated the entire Capital Improvement Program (CIP). The last major planning element needed for OCSD is a master plan of the electrical systems to ensure power is provided reliably for treatment plant operations. • The major future power supply issues facing OCSD include: (1) identifying the power demands expected for OCSD, (2) selecting the best sources of power for the expanded treatment plants, and (3) planning of the expansion of the power systems. All of these must be done understanding the impacts to air quality and compliance with existing and proposed regulations. • The Professional Services Agreement (PSA) includes the following: 1. Data collection and verification 2. Power Generation and Supply System Analysis 3. Digester Gas Generation and Consumption Analysis 4. Grounding and Cathodic Protection Study 5. Perform an electricity system transient stability and load shedding analysis 6. Conceptual heat balance model for the treatment plants 7. Air Quality Analysis 8. Single-line diagrams, Facility Maps, and the OCSD Power Database Model and System Analyses 9. Plant Uninterruptible Power System (UPS) Rehabilitation and Master Planning 10. Standby Power Generation Study au,i.od W04103 Page 1 11. Siloxane Impact on Engines and Turbines Study • Requests for proposals were sent to eleven engineering firms. One firm elected to propose on its own, and two engineering firms teamed to provide one proposal to OCSD. Eight consultants declined to propose on the work. The declinations ranged from insufficient qualified staff to profit restriction exceptions. • The proposals were evaluated in accordance with defined OCSD procedures and based on these evaluations Staff recommends the approval of the PSA to Black & Veatch Corporation, for an amount not to exceed $1,894,660. Staff believes the negotiated fee and man-hour estimate reached with Black & Veatch is reasonable, giving OCSD the best value while maintaining the scope of work and schedule. • This project will also conduct work planned under two other capital projects, Job no. SP-102, Digester Siloxane Removal Study and Job No. SP-107, Digester Gas Venting Study. The two other projects budgeted at S200,000 will be cancelled. The work was combined with this project because they are so closely related and impact the planning of the power systems. PRIOR COMMITTEE/BOARD ACTIONS None PROJECT/CONTRACT COST SUMMARY The FY2003/04 CIP includes a budget of $3,620.000 for the update of the Strategic Plan. Included in that budget is an amount of S 2,550.000 for consultant professional services for Job No. J-102. A total of $$1,894,660 is being requested. Please see the attached budget information table. BUDGETIMPACT 0 This item has been budgeted. (Line item: FY CIP Section 8, page 145) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) Please see the attached budget information table. ADDITIONAL INFORMATION Project Background In July 2002, OCSD committed to planning, designing, and constructing upgrades to meet the secondary standards of the Clean Water Act. This effort will impact the power and electrical systems owned and operated by OCSD. Also. several existing and proposed regulations are impacting OCSD's existing infrastructure including: air quality regulations, power utility regulations, and health and safety regulations. This project will Revised 06/04/03 Page 2 ti tie these complex issues together, and layout a plan that will be both economical and comply with anticipated requirements facing OCSD. 4 This project will update OCSD's two recent master planning efforts, the 1999 Strategic Plan and the 2002 Interim Strategic Plan Update. This update will incorporate the follow-up site planning and special studies resulting from the level of treatment decision made by the Board of Directors in 2002. This effort is a key part to completely update OCSD's Strategic Plan, which determines future treatment facilities, biosolids management options, water reclamation options, and an implementation plan for constructing these facilities. Planning work from the Interim Strategic Plan Update, Ammonia Toxicity Study, Odor Control Master Plan, Long Range Biosolids Management Plan, Full Secondary Treatment planning and siting studies, and recent research and pilot testing studies will be utilized in this effort. This project will also conduct work planned under two other capital projects, Job no. SP- 102, Digester Siloxane Removal Study and Job No. SP-107, Digester Gas Venting Study. The two other projects budgeted at $200,000 will be cancelled. The work was combined with this project because they are so closely related and impact the planning of the power systems. Proposal Review Process A Request for Proposals was issued in August 2004 to eleven consulting firms. One firm, Black and Veatch, elected to propose primarily on its own; and two engineering firms, Malcolm Pirnie and Camp Dresser and Mckee (CDM), teamed to provide one proposal to OCSD. Eight consultants declined to propose on the work. The declinations ranged from insufficient qualified staff during the project period to profit restriction exceptions. The proposals to provide engineering services for Job No. J-102 were evaluated in accordance with OCSD procedures and the Black & Veatch team received the highest ranking. Additional information on the evaluation ranking is contained in the attachment. The selection committee agreed that the Black and Veatch team experience and approach was superior. Through this team, OCSD will gain access to leading experts on power system planning and reliability. Finally, Black and Veatch's approach to consensus building on very complex issues in the proposal has been used successfully on several of OCSD projects, and is very desirable with the tight project schedule. ALTERNATIVES This project is necessary for OCSD to achieve its goal of reliable full secondary treatment. Power generation and distribution reliability would be greatly impacted if portions of this project are not included. CEQA FINDINGS This project is a study and is exempt from CEQA. Revised: 06104/03 Page 3 ATTACHMENTS �9 1. Budget Information Table 2. PSA Status Report 3. Summary of Staff Evaluation of Proposals and Staff Recommendation JB:sa HAntg1oba1\Agenda Draft ReportslPDC1J-102-0311D4AR.doc Revised: 06104103 Page 4 BUDGET INFORMATION TABLE STRATEGIC PLAN UPDATE— ENERGY MASTER PLAN, JOB NO. J-102 JOB NO. J-102 gn%fl 14 �"inijagw -5100 .39 -VIR-1=;&MO� •�15; 4 N Phase 1 -Project Development $ 3,620,000 $ 3,620,000 $ 3,620,000 $ 1,070,000 $ 1,894,660 S 2,964,660 $ 5,176 0% Phase 2-Preliminary Design $ $ 0% Phase 3-Design $ $ 0% Phase 4-Construction $ $ $ 0% Phase 5-Commissioning $ $ $ 00 Phase 6-Close-Out $ $ $ 0% Phase 7-Contingency $ $ 0% 1PROJECT TOTAL $ 3,620.000 $ 3.620,000 $ $ 3,620,000 1,070,000 $ 1.894,660 S 2,964,660 $ 5,176 0%1 Reimbursable Costs 1110-1 1PROJECT NET $ 3,620,000 S 3,620,000 1 $ 1$ 3,620,000 $ 1,070,000 $ 1,894,660 S 2.964,660 $ 5,176 0% PSA/Contract Design PSA $ 2,550,000 $ 2,550,000 $ $ 2,550,000 $ - $ 1,894,660 S 1,894.660 $ 0% Construction Contract $ $ $ - $ EDMS 0037819B2 Professional Services Agreement Status Report Strategic Plan Update— Power Master Plan Job No. J-102 Total Project Budget: $3,620,000 Consultant: Black & Veatch Start Date of Project: July 2004 Date Addendum Description Cost Accumulated Costs Pending Original Strategic Plan Update - Energy Master Plan PSA $1,894,660 $0 JB:sa EDMS 003781953 10/27/04 4 Strategic Plan Update— Power Master Plan J-102 Staff Evaluation of Proposals to Provide Engineering Services The following interested consulting firms received Requests for Proposals: • Camp Dresser & McKee, (CDM) • Black & Veatch • Brown and Caldwell • Brinderson • MARMAC • Montgomery Watson Harza • Malcolm Pirnie • PSOMAS • RW BECK • Washington Group International Brown and Caldwell, Brinderson, MARMAC, Montgomery Watson Harza, PSOMAS, RW BECK, and Washington Group International all declined to submit a proposal. Black & Veatch submitted a proposal using primarily their own resources, except for field inspection services, which were not considered a primary part of the contract in the evaluation. Malcolm Pirnie partnered with CDM. As a result, there were two (2) responsive proposals received on September 23, 2004. Proposals were reviewed in- house by a review panel from September 23 to October 18, 2004. Formal interviews with both responsive teams and a Orange County Sanitation District (District) review panel were conducted on October 17, 2004. The review panel consisted of six voting members. Each proposal was graded from 1 to 10 (10 being best) in six categories described below: 1. Understanding of the Project: The proposal should contain a description of the project goals and objectives. The Consultant should be familiar with the District's commitment to achieve full secondary treatment by December 2012. The proposal should discuss how each of the major project elements contributes to achieving the goals and objectives. To demonstrate an understanding of the scope of work, the Consultant should have developed an outline of the project and expected deliverables. The consultant should have also demonstrated its knowledge of the related projects such as P1-101, P1-102, P2-90, P2-92, and J-36, and how the J-102 project will interface with other District projects. The proposal should provide insights into achieving the District's goal and objectives. 2. Project Schedule: The proposal should contain an outline of major project tasks required to complete the work. The proposal should integrate the project tasks P with the District's efforts, estimate time lines for all tasks and identify task constraints. A list of major project milestones should have been included. The proposal should include a resource loaded schedule. 3. Project Approach: The proposal should outline the Consultant's approach to the technical and management issues for the project. The proposal should discuss the approach to developing the design details based on the projects concept report. It should explain how the Consultant, working with in the framework of the Scope of Work, will use technical memos, workshops and focused meetings to achieve consensus in design details while incorporating the Districts Design Guidelines into the project. It should also describe how the Consultant Team will interface with the District's staff. A Project Management Plan should have been included. The Plan should identify the key management personnel and their roles and responsibilities. It is the intention of the District to establish an integrated Project Team consisting of District staff, Consultant and sub consultants. The plan should discuss how the project will be organized to achieve a close working relationship among the team members. An outline of a Quality Control Plan should have been included in this proposal. 4. Team Organization: The proposal should have a consultant project organizational chart. It should describe the roles and responsibilities of the key team members. The organizational chart shall include all team members including planners and key resources. The proposal should have discussed the work to be performed by each Team Member and the location where the work will be performed. The relationship with sub consultants and any special teaming arrangements should have been included. The proposal should describe how the staff will meet the requirements of the resource loaded schedule. 5. Staff Qualifications: The proposal should describe the education, experience and technical certifications of the proposed project staff. The staff member's technical discipline and location where work will be performed should have been included. Emphasis should have been placed on the qualifications and locations of the Project and other key staff. 6. Related Company Experience: The proposal should describe the firm's recent experience on projects which are similar to the Energy Master Plan effort as described in the Scope of Work for individuals proposed on the project. Two proposals were received: one from Black & Veatch and one from Malcolm Pirnie teamed with CDM. The two proposals were evaluated and all teams were interviewed on October 17, 2004. After reviewing and grading the proposals and conducting the interviews, the two teams were ranked according to the score achieved. The following summarizes the attached ranking results: 1. Black & Veatch Corporation 1781 Points 2_ Malcolm Pirnie/CDM 1359 Points The following is a summary of how the evaluation team collectively viewed the top ranked consultant: Black & Veatch Corp. The Selection Committee gave the Black & Veatch proposal the highest ranking for several reasons. Black & Veatch proposed a stronger management team with local experience in large and similar projects and past successful project experience with the District. The Black & Veatch approach to the project includes smaller groupings of staff to manage and coordinate key related issues for the project. The Black & Veatch proposal also provided for access and review by experts known worldwide for their expertise and insight to power issues at wastewater treatment plants. Table A presents the scores from each reviewer and proposed costs. The following attributes formed the basis for the Black & Veatch high ranking: 1. Excellent management team 2. Strong knowledge of project needs 3. Strong knowledge of the key OCSD power issues 4. Support from expert known worldwide for their knowledge and insight. Fee Proposals After the final ranking of the technical proposals, the sealed fee proposals, submitted by the firms, were opened. The total fees received from the consultants were: 1. Black & Veatch $1,894,660 (Final Negotiated Fee) 2. Malcolm Pirnie $1,799,653 Several meetings were held with Black &Veatch to discuss the basis of their estimate and to clarify the District's scope of work. Based on these meetings, the Black & Veatch negotiated total fee for engineering services is $1,894,660. This proposed fee is within the 03/04 CIP budget of$2,550,000 for consultant services. Summary The evaluation committee gave Black and Veatch the highest score. On average, they scored 31% higher. Black and Veatch's proposal has slightly fewer hours with a higher average hourly rate resulting in a higher estimated fee, as shown in Table B. This is primarily due to the senior level of the staff being applied to project when compared to Malcolm Pirnie's proposal. The evaluation team was unanimous in their decision. Staff believes the negotiated fee and man-hour estimate reached with Black & Veatch is reasonable, giving the District the best value while maintaining the scope of work. 1 TABLE A Strategic Plan Update— Energy Master Plan Job No. J-102 CDM Reviewer A 225 135 Reviewer B 326 262 Reviewer C 318 252 Reviewer D 331 281 Reviewer E 311 237 Reviewer F 270 192 TOTAL 1,781 1,359 SCORE AVERAGE 297 226 SCORE TECHNICAL j 2 RANKING TABLE B Strategic Plan Update— Energy Master Plan Job No. J-102 Black & Veatch Malcolm I'li-nie and CDM Energy MP —' 13,229 Cost per hr,for �_r $136 Ph 2+3,$/hr Overhead Rate, 10'S< 95% * Final Negotiated Fees JB:sa EDMS 003781882 PDC COMMITTEE Meeting Date To Bd.of Dir. 11/04/04 11/17/04 AGENDA REPORT Item Number Item Number PDC04-97 13 Orange County Sanitation District FROM: David A. Ludwin, Director of Engineering Originators: Jim Herberg, Engineering Manager Jim Burror, Engineering Supervisor SUBJECT: FUTURE ORANGE COUNTY SANITATION DISTRICT FLOW PROJECTIONS FOR IRWD AND SAWPA GENERAL MANAGER'S RECOMMENDATION Concur with Staff recommendation to (1) Revise the 1999 Strategic Plan Year 2020 flow projection for treatment capacity to provide 13 million gallons per day (mgd) of capacity for the Santa Ana River Watershed Project Authority; (2) Design Plant No. 1 Secondary Treatment Expansion, Job No. P1-102, for a first phase capacity of 60 mgd, with provisions to expand to 80 mgd in the future; and (3) Establish a policy regarding the two contract agencies served by Orange County Sanitation District (OCSD), such that OCSD plans, designs, and constructs new facilities based on the adopted plans of the agency. SUMMARY • This issue was presented to the PDC Committee as an information item. The committee directed Staff to move the item forward to the Board of Directors as an action item. • OCSD's flow projections are based on service area population projections, and planned discharges from Irvine Ranch Water District (IRWD) and the Santa Ana Watershed Protection Agency (SAWPA). Approximately 50 percent of the flow increases over the next 20 years are from these two agencies, which are served by OCSD under individual contracts. • These flow projections are used for planning and scheduling OCSD's new capital improvements to increase treatment and disposal capacity. • Today, Staff expects that flows will not materialize as projected in the 2002 Strategic Plan Update based those agencies current planning documents. If OCSD continues to construct new capacity, while flows from IRWD and SAWPA do not increase accordingly, there is a risk of over-building treatment facilities leading to increased expenditures and rate impacts. However, if OCSD limits construction of new capacity, there is some risk that IRWD and SAWPA could increase their flows without leaving OCSD sufficient time to design and construct needed facilities. • IRWD and SAWPA are responsible for long term planning in their service areas, including projection of flows that will be sent to OCSD for treatment. Thus, Staff recommends that OCSD start a process to clarify our agreements with these agencies to provide assurance that OCSD will only construct facilities that are needed, and that proper financial commitments are made prior to constructing new capacity. The goal is to Revised B/M98 Page 1 allow OCSD sufficient time (approximately seven to ten years) to construct new treatment facilities in advance of the need with financial support from those agencies. • With the upcoming secondary treatment expansion, there is an opportunity to achieve an estimated $50 to $70M reduction in the Capital Improvement Program (CIP). This cost savings would result from reducing projected flows from these agencies, allowing a 20 million gallons per day (mgd) reduction in the Secondary Treatment Expansion projects at Reclamation Plant No. 1. PRIOR COMMITTEE/BOARD ACTIONS None PROJECT/CONTRACT COST SUMMARY The potential 20 mgd reduction in project sizes for Reclamation Plant No. 1, Secondary Treatment Expansion, Job No. P1-102, and Sludge Dewatering and Odor control at Reclamation Plant No. 1, Job No. P1-101, is estimated at $50 to $70M reduction in the CIP. The final amounts of the budgets would be reflected in the next Fiscal Year budget after OCSD's annual validation process. 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 Staff will provide an informational presentation at the November PDC Committee meeting. OCSD's past master planning has incorporated a projected flow from IRWD of 17 million mgd through the Year 2020. For future planning, we will be using a reduced flow of 10 mgd, since 7 mgd from IRWD is already modeled as part of Revenue Area (RA) 5, 6 and 7 flows. The remaining 10 MGD are flows from IRWD that are not treated in the Michelson Water Reclamation Plant. In effect, the 7 mgd of flow was double-counted in our planning assumptions. OCSD staff has discussed this issue with IRWD and received their concurrence with OCSD revising planned flows from IRWD to 10 mgd. SAWPA's current flow to OCSD averages 9 mgd. SAWPA has purchased 13 mgd of capacity in OCSD's treatment facilities. The existing agreements allow SAWPA to purchase up to 30 mgd of treatment capacity. However, SAWPA's recent planning reports indicate that they are pursuing the removal of all flows from OCSD's treatment system. Reducing IRWD's flow projection by 7 mgd and not expanding the treatment works for SAWPA to 30 mgd, would reduce OCSD's year 2020 flow projection by 24 mgd. This reduction would allow for a decrease in the initial phases of the Reclamation Plant No. 1 Secondary Treatment Expansion projects by 20 mgd. The estimated cost savings will range between $50 and $70M in capital expenditures. Revised: 6/10/98 Page 2 ALTERNATIVES N/A CEQA FINDINGS Information Item, no action required. ATTACHMENTS None JDH:JB:sa H:\dept\agenda\Board Agenda Reports\2004 Board Agenda Reports11104\Item 136).Future Flow Projections.doc Revised: 8110/98 Page 3 The FAHR minutes of the meeting held November 10, 2004 were not available for this mailing . These minutes will be distributed at the November 17, 2004 Board of Directors meeting . Once the minutes are finalized, they will also be available on the District's website (www.ocsd .com). FAHR COMMITTEE Meeting Date To Bd.of Dir. 11/10/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-93 14 b Orange County Sanitation District FROM: Gary Streed, Director of Finance/Treasurer Originator: Michael White, Controller SUBJECT: TREASURER'S REPORT FOR THE MONTH OF OCTOBER 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file Treasurer's Report for the month of October 2004. 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 external money manager is operating in compliance with the requirements of the Investment Policy. The portfolio contains no reverse repurchase agreements. As shown on page 2 of the attached PIMCO's Performance Monitoring and Reporting Report for the Long-Term Operating Monies, there are two investment policy compliance exceptions. The first exception pertains to the duration of the Long-Term Operating Monies portfolio. The District's investment policy states that the duration shall be between 80% and 120% of the benchmark duration. The actual duration was at 1.91 years, or 78% of the benchmark of 2.45 years as of October 31 , 2004. PIMCO will seek opportunities to slightly increase the account's duration while maintaining a conservative posture given the expectation of a rising rate environment. The second exception pertains to the holding of one security within PIMCO's Long-Term Operating Monies Portfolio that had an acceptable rating at the time of purchase but has 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 rating exception pertains to the holding of a United Airlines (UAL) Asset Backed Security with a par value of $1.6 million, representing 0.44 percent of the portfolio holdings, whose rating from Moody's has fallen several times, from A3 to BA1 , then to BA3, B3, B, and finally to CA. Likewise, the rating from Standard & Poor's has also fallen several times, first from A- to BBB, then to BB, then to B+, B-, and finally to CCC+. Both rating agencies have since withdrawn their ratings, Moody's in February Rkdeptlagenda\Board Agenda Reports\2004 Board Agenda Reports\1104\Item 14(b).Treasurer Report.doc Page 1 2004 and Standard & Poor's in June 2004. 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 underlying collateral of the security, that the District would suffer an unwarranted loss if the security was sold at this time. The District's investment policy does not require any action because of "credit watch" notices or the decline in credit standing. However, PIMCO will continue to monitor the credit for this security 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. BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ 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 table on the following page 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. HMeptkagendaZoard Agenda Reparts\2G04 Board Agenda Reports11104111em 14(b).Treasurer Report.doc Page 2 a Book Balances Estimated Investment Accounts October 31,2004 Yield (%) State of Calif. LAW $ 9,908,111 1.89 Union Bank Checking Account 853,721 1.47(1) PIMCO—Short-term Portfolio 72,571,967 1.79 PIMCO-Long-term Portfolio 361,949,681 2.93 Petty Cash 4,000 N/A TOTAL S445.2KAM 2.71 Debt Service Reserves w/Trustees $62 675 686 3.18 (1) This is the annualized yield for the month of September. The October annualized rate was not available as of the date of this report. ATTACHMENTS 1. Graph of Monthly Investment Balances by Type — Last Six Months 2. Investment Transactions and Balances in the State Local Agency Investment Fund 3. PIMCO Monthly Investment Recap & Yield Analysis Report 4. PIMCO Performance Monitoring Report — Liquid Operating Monies 5. PIMCO Performance Monitoring Report — Long-Term Operating Monies 6. Mellon Trust Asset Summary by Asset Type with Sectors — Liquid Operating Monies 7. Mellon Trust Asset Summary by Asset Type with Sectors — L-T Operating Monies 8. Mellon Trust Yield Analysis Report 9. Mellon Trust Asset Detail —Consolidated 10.Mellon Trust Transaction Detail - Consolidated MW:bg HAdep0agenda\Board Agenda Reports12004 Board Agenda Reports11104Htem 14(b).Treasurer Report.doc Page 3 Prepared by Finance, 11/9/2004, 9:17 AM ' Monthly Investment Balances by Type- Last Six Months $700,000,000 $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 - $0 May June July August September October 2004 2004 2004 2004 2004 2004 ®PIMCO- Long-term O PIMCO-Short-term ®COP Debt Reserves IID LAIF El Bank Accts M Petty Cash H:\dept\fin\EXCEL.dta\220\geggie\mo treas rpt\Monthly Investment Balances Graph1.xls l Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund October 31, 2004 Par Value Book Value Market Value Rate Yield Balance October 1, 2004 $26,710,595 $26,710,595 $26,710,595 1.89 1.89 Deposits: Total Deposits 0 0 0 0 0 Quarterly Interest Distribution 97,516 97,516 97,516 1.89 1.89 Withdrawals: 10/7/2004 (4,600,000) (4,600,000) (4,600,000) 1.89 1.89 10/13/2004 (2,600,000) (2,600,000) (2,600,000) 1.89 1.89 10/21/2004 (1,200,000) (1,200,000) (1,200,000) 1.89 1.89 10/22/2004 (6,800,000) (6,800,000) (6,800,000) 1.89 1.89 10/27/2004 (1,700,000) (1,700,000) (1,700,000) 1.89 1.89 Total Withdrawels (16,900,000) (16,900,000) (16,900,000) 1.89 1.89 Balance October 31,2004 $9,908,111 $9,908,111 $9,908,111 1.89 1.89 P I M C O November 8, 2004 Mr.Mike White,CPA Controller Orange County Sanitation District 10844 Ellis Avenue Fountain Valley,CA 92708-7018 Dear Mike: The following is a description of events in the bond markets during the month of October in addition to an analysis of the strategies undertaken in the Orange County Sanitation District's Long-Term and Liquid portfolios over the period. Also included is a section on our outlook and preferred strategies to be pursued in your portfolios during the coming months. Bond Market Recan: U.S. bond sectors gained in October, as continued slow employment growth and higher oil prices strengthened the market's view that the U.S. economy is slowing and that the pace of interest rate increases by the Fed would be tempered. The yield on the benchmark 10-year Treasury note finished the month at 4.12 percent, 10 basis points lower than last month; and Treasuries returned 0.79 percent. On a duration-adjusted basis, short and intermediate maturity TIPS outperformed their nominal counterparts, while longer maturity TIPS underperformed. The Lehman Brothers Global Real U.S. TIPS index returned 1.00 percent for the month. Mortgage-backed securities returned 0.81 percent, exceeding Treasuries by 32 basis points after adjusting for duration. The credit sector, represented by the Lehman Credit Index, returned 0.97 percent, outperforming Treasuries for the month by 14 basis points. Within the sector, lower quality investment grade corporates outperformed higher quality issues. BBB-rated corporate bonds generated 13 basis points of excess return versus Treasuries, while AAA-rated corporate bonds produced 8 basis points of excess returns, respectively. October began with a weaker than expected Employment Situation Report (issued by the Bureau of Labor Statistics), indicating that the economy created only 96,000 new jobs in September, below consensus estimates of 158,000. The unemployment rate was unchanged at 5.4 percent as the number of unemployed and the labor force contracted. The inflation rate for personal consumption expenditures, the largest component of gross domestic product (GDP) was 1.1 percent in the third quarter, down from 3.1 percent in the second quarter. Excluding food and v Mr. Mike White, CPA November 8, 2004 Orange County Sanitation District Page 2 energy prices, personal consumption expenditures rose at a 0.7 percent rate, the lowest since the fourth quarter of 1962. Influenced by rising energy prices and slowing job growth, the consumer confidence index fell for a third straight month. The Commerce Department announced that gross domestic product expanded at a 3.7 percent annual pace though the third quarter. Although this was higher than the 3.3 percent in the second quarter, it fell short of the 4.3 percent forecasted by 80 economists in a Bloomberg News survey. Treasury yield changes during the month of October are summarized as follows: ■ 3-month bills: +19 basis points to 1.89% ■ 6-month bills: +13 basis points to 2.12% ■ 2-year notes: -6 basis points to 2.55% • 5-year notes: -9 basis points to 3.28% ■ 10-year notes: -10 basis points to 4.02% ■ 30-year notes: -10 basis points to 4.79% Performance Attribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned 0.45% on a total return basis for the month of October, performing in line with the Merrill Lynch 1-5 year Government Corporate Index. The following points summarize returns for the month ended October 31: • The Long-Term portfolio underperformed the benchmark by 1 basis point for the month. • For the twelve-month period,the Long-Term portfolio returned 3.17%, outperforming the benchmark by 32 basis points. • Portfolio duration, below the index,was negative for monthly performance as rates generally fell during the month(for all but the very shortest maturities). • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was negative for performance, as corporates outperformed Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. • Substituting Treasury Inflation Protected Securities for nominal Treasuries was positive for performance as short and intermediate TIPS outperformed their nominal counterparts during the month. v Mr. Mike White, CPA November 8, 2004 Orange County Sanitation District Page 3 Liquid Portfolio The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 0.11% during the month of October, performing in line with the 3- month Treasury Bill Index. The following points summarize returns for the period ending October 31: • The Liquid portfolio lagged the benchmark by 2 basis points for the month. • For the twelve-month period, the Liquid portfolio returned 1.17%, outperforming the benchmark by 8 basis points. • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance. Outlook and Strategy: The global economy will muddle along over the next several quarters, with neither a boom nor a bust likely to emerge. The U.S., Japan and China will grow faster than Europe. A global excess of supply over demand in labor and product markets,as well as subdued unit labor costs,will restrain inflation. Interest rates in the U.S. will be range-bound within 30-40 basis points,with a bias toward slightly higher rates, given the very low absolute yields. Important aspects of the outlook are: ■ A Boom Is Not In The Cards... More business investment will be needed to bolster global demand growth now that fiscal and monetary stimulus is fading. Companies in the U.S.and Japan have ample liquidity to boost investment after repairing their balance sheets over the last several years, but a lack of confidence about future growth and lingering excess capacity will subdue the "animal spirits"of corporate executives. Investment spending and hiring will be more modest than would be expected given such robust corporate profits and cash flow. • ...But Neither Is a Bust—Some growth in investment will be needed just to maintain the capital stock of Corporate America, whose current spending is not keeping pace with depreciation. Growth in consumer spending will remain a net positive,as a modest pickup in hiring will support disposable incomes. Range-bound rates will keep household debt service at manageable levels. • Higher Oil Prices Will Restrain Growth—Higher oil prices will also exert inflationary pressure worldwide. Still,the adverse impact of rising oil prices will be more muted than in the past. Oil prices in real terms are nowhere near levels seen in the late 1970s. Moreover,the world's reliance on oil per unit of output has been considerably reduced since then. The global economy looks stable, with prospects for modest growth, low volatility in financial markets and range-bound interest rates. PIMCO remains concerned, however, about a tilt in the direction of either deflation or inflation. The uncertain pace of investment and hiring could tilt the balance of risks toward deflation. On the other hand, monetary policy remains simulative despite the beginning of Fed tightening. Easy money combined with higher commodity prices and dollar weakness could swing the economy back in the other direction. A prudent approach in v Mr. Mike White, CPA November 8, 2004 Orange County Sanitation District Page 4 this environment is to stay defensive and well diversified to avoid negative consequences of being on the wrong side of any market dislocation. Key strategies will include: • Tactically Flexible Interest Rate Strategies — Rates are more likely to rise than fall over a secular,or three to five year time frame. We will therefore be wary of extending duration beyond benchmark levels. At the low end of our forecasted interest rate range, we will target duration about 0.5 year below the index and then shift toward a neutral posture should rates move back up. • Structural Yield Curve Exposure — While short/intermediate maturities are close to full valuation,we will retain a modest structural emphasis here.Because the short/intermediate portion of the yield curve remains relatively steep,this"bulleted"posture can provide extra yield with less price risk than a "barbell," or mix of short and long term bonds. In addition, longer maturities would be more vulnerable if the economy tilted toward inflation. • Retain Current Exposure to Core U.S. Sectors but Do Not Increase Allocations — Tight corporate yield premiums offer too little reward to bear the risk of negative credit events if the economy were to slow. While mortgage-backed bonds offer structural yield advantage and high credit quality, they are fully valued for now as a result of unusually heavy demand from banks, which are taking advantage of mortgages' attractive`carry"in a steep yield curve environment. ■ TIPS as an Out-of-Index Alternative—Better risk/reward trade-offs can be found outside of core sectors. At current break-even inflation levels, real return bonds continue to provide an effective hedge against secular inflation risk. They are also less volatile than nominal bonds in a rising rate environment. We look forward to discussing these and other topics with you in the near future. Best regards, Christine Telish, CFA John M. Miller,CFA Vice President Senior Vice President v Orange County Sanitation District for the month ending October 31,2004 Total Return Account-2o3 With Accrued Interest Without Accrued Interest Market Value 364,759,272 361,957.298 Book Value 360,139.775 357.337,800 Yield to Maturity 2.93 2.95 Short Term Account-603 VM Accrued Interest Without Accrued Interest Market Value 72,848.328 72,634,746 Book Value 72,833,972 72,620,391 Yield to Maturity 1.79 1.80 MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2004) Page 1 of I Liquid Operating Monies(603) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $72,848,328 • Mellon $72,843,803 Historical Cost: • PIMCO $72,833,972 • Mellon $72,884,833 15.1.2 MODIFIED DURATION Of Portfolio: 0.09 Of Index: 0.20 15.1.3 1% INTEREST RATE CHANGE Dollar Impact(gain/loss)of 1%Change: $65,563 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: 96% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: "AAA" 15.1.7 SECURITIES BELOW "A" RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" Yes 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: 1 Month: 0.11 0.13 3 Months: 0.36 0.36 12 Months: 1.17 1.09 Fiscal Year-to-Date: 0.46 0.46 Commentary • The Liquid portfolio lagged the benchmark by 2 basis points for the month,but performed in line with the benchmark fiscal year-to-date. • PIMCO's emphasis on higher yielding securities such as commercial paper and short-term notes contributed to performance. H:\deptTn\220\geWeTAHR\LIQ0800-04.10.RPT.doe MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2004) Page 1 of 2 Long-Term Operating Monies(203) 15.1.1 PORTFOLIO COST AND MARKET VALUE Current Market Value Estimate: • PIMCO $364,759,272 • Mellon $364,856,959 Historical Cost: • PIMCO $360,139,775 • Mellon $362,062,473 15.1.2 MODIFIED DURATION Of Portfolio: 1.91 Of Index: 2.41 15.1.3 1%INTEREST RATE CHANGE Dollar fiMact(gain/loss)of 1%Change: $6 966 902 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: 9% 15.1.6 PORTFOLIO QUALITY Average Portfolio Credit Quality: AAA 15.1.7 SECURITIES BELOW"A"RATING %of Portfolio Below"A": 0% 15.1.8 INVESTMENT POLICY COMPLIANCE "In Compliance" No* 15.1.9 PORTFOLIO PERFORMANCE Total Rate of Return(%)by Portfolio Index Period: 1 Month: 0.45 0.46 3 Months: 1.41 1.58 12 Months: 3.17 2.85 Fiscal Year-to-Date: 2.02 2.16 • The Long-Term portfolio underperformed the benchmark by 1 basis point for the month,and by 14 basis points fiscal year-to-date. • Portfolio duration,below the index,was negative for monthly performance as rates generally fell during the month(for all but the very shortest maturities). • Yield curve positioning similar to that of the index was neutral for performance. • An underweight exposure to corporates was negative for performance,as corporates outperfored Treasuries on a duration-adjusted basis. • Exposure to mortgage-backed securities was positive for relative performance as the sector outperformed Treasuries on a duration-adjusted basis. • Substituting Treasury Inflation Protected Securities for nominal Treasuries was positive for performance as short and intermediate TIPS outperformed their nominal counterparts during the month. MONTHLY REPORT ORANGE COUNTY SANITATION DISTRICT INVESTMENT MANAGEMENT PROGRAM PIMCO'S PERFORMANCE MONITORING & REPORTING (for the month ended 31 October 2004) Page 2 of 2 *Compliance Issues: (1) As of month-end,the account's duration was 78%of the benchmark(the account's duration was at 1.91 years against the benchmark's duration of 2.45 years). PIMCO will seek opportunities to slightly increase the account's duration while maintaining a conservative posture given the expectation of a rising rate environment. (2) $1,600,000 par of United Airlines(UAL)Pass-Through 2001-1-C(Enhanced Equipment Trust Certificate(EETC)-909317BC2),6.831%coupon,3/01/2024 maturity,representing 0.44%of the portfolio holdings on a par basis was purchased on 8/10/2001;and subsequently downgraded by Moody's from A3 to BA (on 9/18/2001)and S&P from A-to BBB(on 9/20/2001). The security was further downgraded by Moody's from BA1 to BA3(on 12/21/2001)and by S&P from BBB to BB(on 6/28/02). Following news of the possible bankruptcy filing,the security was further downgraded in August(B3 Moody's,B+by S&P). On November 29, 2002, S&P further downgraded this issue to B,and shortly thereafter on December 9,2002,downgraded the issue one notch further to B-. On August 7,2003,S&P downgraded the issue to CCC+,while Moody's followed suit on August 28,2003 with a downgrade to CA. Both rating agencies have since withdrawn their ratings (Moody's withdrew in February 2004 and S&P withdrew in June 2004). 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. Record fuel costs and low air fares contributed to a$274 million third-quarter loss for UAL,which warned again that labor costs must be slashed again soon in order for it to emerge from bankruptcy. The airline,which filed for Chapter 11 bankruptcy protection in December 2002,said operating revenue rose 7%. Looking ahead,the company said it expects fourth-quarter mainline capacity to rise about 3%,though capacity for 2005 is expected to be about 3%lower than 2004. The company also stated that fuel expense for the year is expected to be$1.2 billion higher than planned. PIMCO continues to negotiate with United on our holdings and currently leads an ad hoc committee. This has been an extremely complicated effort due to the complex nature of United's bankruptcy. These negotiations have required PIMCO's analysts access to non-public information and therefore sharing them results in parties becoming restricted. In light of this extremely complicated bankruptcy,PIMCO continues to strive to act in the most prudent manner to obtain maximum recovery. Split Rated Securities Still In Compliance_ The District's investment policy requires a minimum rating of A3 by Moody's or A-by S&P,with at least a BBB in the event of a split rating. -$1,000,000 par of Ford Motor Credit securities(cusip 345397GV9 maturing 5115105),representing 0.27%of the portfolio holdings on a par basis(exposure was reduced in July 2004 as$2.5 million par matured). The securities were downgraded on 10/16/2001 by S&P from A to BBB+,then to BBB on 10/25/02,and then to BBB-on 11/13/03. Moody's downgraded the securities on 1/16/02 from A2 to A3. -$3,000,000 par of General Motors Acceptance Corp securities(cusip 370425SD3)maturing on August 28,2007,representing 0.82%of the portfolio holdings on a par basis. The securities were downgraded on 10/16/2001 by S&P from A to BBB+,and a further downgrade to BBB occurring on 10/16/2002. The securities now cant'a Moody's rating of A3 after a further downgrade from A2 on 6/14/03. -$1,750,000 par of Virginia Electric Power NT securities(cusip 927804EN0),maturing on March 31,2006,represents 0.48%of the portfolio holdings on a par basis. The security was downgraded on 10/21/2002 by S&P from A-to BBB+,but continues to carry a Moody's rating of A3. H.IdepiTiin 11201geggkiFAHRILT0800-04-10.RPT.doc Asset Summary Report ID: GL8251 Base Currency: USD @ Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OJWR-PBfC0-OCSF07511102 10/31/2004 Status: FINAL 5, 2 , Cb Mk4 W f a S $e: e CASK&CASH EQUIVALENTS U.S. DOLLAR INTEREST 271,835.79 271,835.79 0.37% 0.00 CERTIFICATES OF DEPOSIT-DOMESTIC 3,600,000.000 3,600,000.00 3,600,000.00 4.94% 0.00 FED HM LOAN BNK-LESS THAN 1YR 14,400,000.000 14,348,938.00 14,348,938.00 19.70% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN I YR 14,400,000.000 14,338,956.39 14,338,956.39 19.68% 0.00 FNMA ISSUES-LESS THAN IYR 14,600,000.000 14,538,655.50 14,538,655.50 19.96% 0.00 MUTUAL FUNDS 2,637,483.860 2,637,483.86 2,637,483.86 3.62% 0.00 TREASURY BILLS-LESS THAN IYR 17,600,000.000 17,534,153.29 17,534,153.29 24.07% 0.00 U.S. DOLLAR 67,237,483.860 67,270,022.83 67,270,022.83 92.35% 0.00 CASH&CASH EQUIVALENTS 67,237,483.860 67,270,022.83 67,270,022.83 92.35% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR BANKING&FINANCE 5,500,000.000 5,614,810.00 5,573,780.00 7.65% -41,030.00 TOTAL ASSETS-BASE: 72,737,483.860 72,884,832.83 72,843,802.83 100.00% -41,030.00 111812004 2:01:57PM PST 1 Workbench Asset Summary Report ID; OLS251 Base Currency: USD Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TMW OPER-NMCO-OCOP07522202 10/31/2004 Status: FINAL *�N_jfg, N; 71 ,c !"Ama, 'ell j" W.01 F-A—B % esdffp 0 Ee-8 cri,P CASH&CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -26,448,470.36 -26,448,470.36 -7.25% 0.00 INTEREST 2,907,278.20 2,907,278.20 0.80% 0.00 COMMERCIAL PAPER-DISCOUNT 10,600,000.000 10,529,050.47 10,529,050.47 2.89% 0.00 FED HM LOAN BNK-LESS THAN 1YR 3,200,000.000 3,183,943.56 3,183,943.56 0.87% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 1 YR 7,600,000.000 7,563,959.11 7,563,959.11 2.07% 0.00 FNMA ISSUES-LESS THAN IYR 10,600,000.000 10,547,456.11 10,547,456.11 2.89% 0.00 MUTUAL FUNDS 1,153,726.320 1,153,726.32 1,153,726.32 0.32% 0.00 TREASURY BILLS-LESS THAN 1YR 16,000,000.000 15,843,937.78 15,843,937.78 4.34% 0.00 U.S.DOLLAR 49,153,726.320 25,280,881.19 25,280,881.19 6.93% 0.00 CASH&CASH EQUIVALENTS 49,153,726.320 25,280,881.19 25,280,881.19 6.93% 0.00 FV[ED INCOME SECURITIES U.S. DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 127,904.00 0.04% -1,472,096.00 ABS-HOME EQUITY 744,359.220 744,359.22 742,963.55 0.20% -1,395.67 BANKING&FINANCE 16,000,000.000 16,023,653.50 16,249,758.00 4.45% 226,104.50 COLLATERALIZED MORTGAGE OBLIGATION COMM/( 1,920,261.520 1,920,261.52 2,090,396.69 0.57% 170,135.17 FHLMC MULTICLASS 856,962.940 857,875.88 862,061.87 0.24% 4,185.99 FHLMC POOLS 63,092.270 61,554.38 65,332.36 0.02% 3,777.98 FNMA POOLS 53,041,197.740 53,987,102.80 54,190,250.19 14.85% 203,147.39 FNMA REMIC 584,096.120 595,778.04 585,346.32 0.16% -10,431.72 GNMA MULTI FAMILY POOLS 4,080,954.310 4,058,366.65 4,125,847.28 1.13% 67,480.63 GNMA SINGLE FAMILY POOLS 589,541.860 618,113.29 626,594.29 0.17% 8,481.00 INDUSTRIAL 3,000,000.000 2,999,910.00 2,999,520.00 0.82% -390.00 INFLATION INDEXED SECURITIES 35,335,090.000 35,352,009.79 38,935,592.78 10.67% 3,583,582.99 INSURANCE 1,600,000.000 1,594,032.00 1,642,000.00 0.45% 47,968.00 PVT PLACEMENTS-MORE THN 1YR 752,000.000 826,199.84 826,199.84 0.23% 0.00 U.S. AGENCIES 33,916,053.030 34,883,722.02 34,948,023.66 9.58% 64,301.64 U.S. GOVERNMENTS 176,285,923.500 178,914,812.43 178,738,566.96 48.99% -176,245.47 UTILITY-ELECTRIC 1,750,000.000 1,743,840.00 1,819,720.00 0.50% 75,880.00 U.S. DOLLAR 332,119,532.510 336,781,591.36 339,576,077.79 93.07% 2,794,486.43 111812004 2:07.-50PM PST 1 Workbench Asset Summary Report ID: GL8251 Base Currency: USD @ Mellon by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM 0PF-R-PrMCO-OCSF07522202 10/31/2004 Status: FINAL FIXED INCOME SECURITIES 332,119,532.510 336,781,591.36 339,576,077.79 93.07% 2,794,486.43 TOTAL ASSETS-BASE: 381,273,258.830 362,062,472.55 364,856,958.98 100.00% 2,794,486.43 111812004 2.-07.-50PM PST 2 Workbench YLDANAL YIELD ANALYSIS PAGE 1 OCSF07511102 2004/10/31 RUN DATE : 11/04/04 DISTRICT: LIQUID OPERATING RUN TIME : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH 6 CASH EQUIVALENTS 2,200,000.00 BANK OF AMERICA NA INSTL C/D .000 1.620 100.000 2,200,000.00 3.28 06050GEMB 1.620% 11/02/2004 DD 08/06/04 2,200,000.00 3.03 8,400,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.716 8,376,181.33 12.50 313384Q28 MAT 11/19/2004 A-1+ 8,376,181.33 11.54 5,000,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.551 4,977,541.67 7.42 313384559 MAT 12/08/2004 A-1+ 4,977,541.67 6.86 1,000,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.521 995,215.00 1.48 313385AW6 MAT O1/21/2005 A-1+ 995,215.00 1.37 7,300,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.601 7,270,844.61 10.85 313396N82 MAT 11/09/2004 A-1+ 7,270,844.61 10.02 1,000,000.00 FEDERAL HOME IN MTG CORP DISC .000 .000 P-1 99.586 995,860.00 1.48 313396P72 MAT 11/16/2004 A-1+ 995,860.00 1.37 6,100,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.545 6,072,251.78 9.06 313396T37 MAT 12/14/2004 A-1+ 6,072,251.78 8.37 1,000,000.00 FEDERAL NATL MTG ASSN DISC NT .000 .000 P-1 99.597 1,792,755.00 2.67 3135B8N27 MAT 11/3/2004 A-1+ 1,792,755.00 2.47 2,800,000.00 FEDERAL HATL MTG ASSN DISCOUNT .000 .000 P-1 99.592 2,788,569.39 4.16 31358SP82 MAT 11/17/2004 A-1+ 2,788,569.39 3.84 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.578 3,983,114.44 5.94 313588Q73 MAT 11/24/2004 A-1+ 3,983,114.44 5.49 6,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.570 5,974,216.67 8.91 31358OR64 MAT 12/01/2004 A-1+ 5,974,216.67 8.23 5,600,000.00 U S TREASURY BILL .000 .000 P-1 99.630 5,579,262.11 8.32 912795RK9 DUE 11/04/2004 DD 05/06/2004 A-1+ 5,579,262.11 7.69 2,000,000.00 U S TREASURY BILL .000 .000 P-1 99.600 1,991,997.50 2.97 912795RL7 DUE 11/12/2004 DD 05/13/2004 A-1+ 1,991,997.50 2.74 5,000,000.00 U S TREASURY BILL .000 .000 P-1 99.644 4,982,207.29 7.43 912795RM5 DUE 11/18/2004 DD 05/20/2004 A-1+ 4,982,207.29 6.87 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2004/10/31 RUN DATE 11/04/04 DISTRICT: LIQUID OPERATING RUN TIME 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 5,000,000.00 U S TREASURY BILL .000 .000 P-1 99.614 4,980,686.39 7.43 912795RN3 DUE 11/26/2004 DD 05/27/2004 A-1+ 4,980,686.39 6.86 1,100,000.00 WELLS FARGO BK NA INSTL C/D .000 1.900 100.000 1,100,000.00 1.64 9497P1JE0 1.900% 12/15/2004 DD 10/14/04 1,100,000.00 1.52 300,000.00 WELLS FARGO BANK NA INSTL C/D .000 1.860 100.000 300,000.00 .44 9497P1LQ0 1.860% 12/06/2004 DD 10/08/04 300,000.00 .41 2,637,483.86 DREYFUS TREASURY CASH MGMT .000 1.545 AAA 100.000 2,637,483.86 3.93 996085247 AAA 2,637,483.86 3.63 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .108 66,998,187.04 100.00 66,998,187.04 92.31 FIXED INCOME SECURITIES 3,000,000.00 ASSOCIATES CORP NORTH AMER SR .000 6.468 AA1 102.421 3,112,350.00 55.12 046003FFI 6.625% 06/15/2005 DD 06/09/95 AA- 3,072,630.00 4.23 2,500,000.00 GENERAL ELEC CAP MTN #TR 00526 .000 2.004 AAA 100.046 2,502,460.00 44.87 36962GXX7 VAR RT 03/15/2005 DD 03/20/02 AAA 2,501,150.00 3.45 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .000 5.177 5,614,810.00 100.00 5,573,780.00 7.68 -------- ------- ----------------- --------- TOTAL .000 .170 72,612,997.04 100.00 72,571,967.04 100.00 YLDANAL YIELD ANALYSIS PAGE 3 OCSF07522202 2004/10/31 RUN DATE : 11/04/04 DISTRICT! LONG-TERM OPERATING RUN TIME : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH & CASH EQUIVALENTS 3,200,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.498 3,183,943.56 6.52 313385AW6 MAT O1/21/2005 A-1+ 3,183,943.56 .82 7,600,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.526 7,563,959.11 15.49 313397AD3 MAT O1/04/2005 A-1+ 7,563,959.11 1.95 9,900,000.00 FEDERAL KATI, MTG ASSN DISCOUNT .000 .000 P-1 99.505 9,850,995.00 20.17 313589AE3 MAT O1/05/2005 A-1+ 9,850,995.00 2.54 700,000.00 FEDERAL NATL MTG ASSN DISC NT .000 .000 P-1 99.494 696,461.11 1.42 313589BBS MAT O1/26/2005 A-1+ 696,461.11 .18 500,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.450 497,249.58 1.01 36959HMG 11/16/2004 497,249.58 .13 200,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.560 199,120.89 .40 36959HM20 12/02/2004 199,120.89 .05 9,900,000.00 GENERAL ELEC CAP DISC .000 2.054 P-1 99.320 9,832,680.00 20.13 36959HP43 02/04/2005 9,832,680.00 2.53 16,000,000.00 U S TREASURY BILL .000 .000 P-1 99.025 15,843,937.78 32.45 912795SG7 DUE 03/31/2005 DD 09/30/2004 A-1+ 15,843,937.78 4.08 1,153,726.32 DREYFUS TREASURY CASH MGMT .000 1.545 AAA 100.000 1,153,726.32 2.36 996085247 AAA 1,153,726.32 .30 -------- ------- ----------------- --------- TOTAL CASH S CASH EQUIVALENTS .000 .274 48,822,073.35 100.00 48,822,073.35 12.58 FIXED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAL REG S .000 5.325 109.867 826,199.84 .24 U00907AA0 5.850% 08/01/2008 DD 08/08/01 826,199.84 .21 22,000,000.00 COMMIT TO PUR FNMA SF MTG .000 4.900 AAA 102.031 22,405,625.00 6.61 O1F0504B9 5.000% 11/01/2019 DD 11/01/04 AAA 22,446,875.00 5.78 4,000,000.00 COMMIT TO PUR FNMA SF MTG .000 5.402 AAA 101.810 4,059,375.00 1.19 O1F0526B3 5.500% 11/01/2034 DD 11/01/04 AAA 4,072,400.00 1.05 YLDANAL YIELD ANALYSIS PAGE s 4 OCSF07522202 2004/10/31 RUN DATE 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME s 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,500,000.00 CIT GROUP INC NEW SR NT .000 2.309 A2 100.421 1,507,005.00 .44 125581AF5 VAR RT 09/22/2006 DD 09/23/03 A 1,506,315.00 .39 3,500,000.00 FEDERAL HOME LN BK CONS BDS .000 7.027 AAA 101.392 3,732,225.00 1.04 3133MAUN7 7.125% 02/15/2005 DD 02/08/00 AAA 3,548,714.05 .91 63,092.27 FBLMC GROUP #78-6064 .000 3.271 AAA 103.550 61,554.38 .01 31348SW23 6.384% 01/01/2028 DD 12/01/97 AAA 65,332.36 .02 11,350,000.00 FEDERAL NATL MTG ASSN DEBS .000 5.043 AAA 104.105 11,521,271.50 3.47 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 11,815,922.04 3.04 683,657.83 FNMA POOL #0254510 .000 4.883 AAA 102.402 704,167.56 .20 31371KV84 5.000% 11/01/2017 DD 10/01/02 AAA 700,081.62 .18 146,850.74 FNMA POOL #0254631 .000 4.883 AAA 102.402 151,256.27 .04 31371KY47 5.000% 02/01/2018 DD 01/01/03 AAA 150,378.59 .04 130,626.67 FNMA POOL #0254760 .000 4.984 AAA 102.371 134,545.46 .03 31371KSV9 5.000% 06/01/2018 DD 05/01/03 AAA 133,723.95 .03 59,334.15 FNMA POOL #0254866 .000 4.884 AAA 102.371 61,114.18 .01 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 60,741.02 .02 314,272.03 FNMA POOL #0254953 .000 4.887 AAA 102.309 318,298.65 .09 31371LE21 5.000% 11/01/2018 DD 10/01/03 AAA 321,527.28 .08 851,201.21 FNMA POOL #0254987 .000 4.894 AAA 102.168 862,107.22 .25 31371LF46 5.000% 12/01/2018 DD 11/01/03 AAA 869,652.91 .22 152,478.22 FNMA POOL #0323980 .000 5.698 AAA 105.305 159,196.79 .04 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 160,566.72 .04 24,876.09 FNMA POOL #0357328 .000 4.891 AAA 102.226 25,622.37 .00 31376J4M8 5.000% 01/01/2018 DD 01/01/03 AAA 25,429.91 .01 1,308,920.17 FNMA POOL #0357430 .000 4.884 AAA 102.371 1,323,645.52 .39 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 1,339,955.85 .34 42,249.23 FNMA POOL #0456402 .000 5.698 AAA 105.305 44,110.82 .01 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 44,490.42 .01 101,291.49 FNMA POOL #0509649 .000 5.698 AAA 105.305 105,754.65 .03 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 106,664.69 .03 YLDANAL YIELD ANALYSIS PAGE s 5 OCSF07522202 2004/10/31 RUN DATE : 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 119,126.76 FNMA POOL #0535451 .000 5.705 AAA 105.180 124,375.78 .03 31384VZQB 6.000% 06/01/2015 DD 07/01/00 AAA 125,297.16 .03 313,444.13 FNMA POOL #0555363 .000 4.883 AAA 102.402 322,847.44 .09 31385W5Y1 5.000% 04/01/2018 DD 03/01/03 AAA 320,974.12 .08 32,483.46 FNMA POOL #0555453 .000 4.883 AAA 102.402 32,899.66 .00 31385XBW6 5.000% 05/01/2018 DD 04/01/03 AAA 33,263.82 .01 259,992.24 FNMA POOL #0555545 .000 4.883 AAA 102.402 267,792.02 .07 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 266,238.14 .07 899,158.16 FNMA POOL #0555621 .000 4.894 AAA 102.168 909,273.69 .27 31385XG60 5.000% 07/01/2018 DD 06/01/03 AAA 918,649.44 .24 481,874.83 FNMA POOL #0681309 .000 4.883 AAA 102.402 496,331.07 .14 31391Y3S4 5.000% 02/01/2018 DD 02/01/03 AAA 493,451.10 .13 59,126.41 FNMA POOL #0681334 .000 4.883 AAA 102.402 60,900.20 .01 31391Y4T1 5.000% 02/01/2018 DD O1/01/03 AAA 60,546.83 .02 584,096.12 FNMA GTD REMIC P/T 02-76 PD .000 4.989 AAA 100.214 595,778.04 .17 31392FKF3 5.000% 08/25/2022 DD 10/01/02 AAA 585,346.32 .15 310,705.97 FNMA POOL #0684908 .000 4.883 AAA 102.402 314,686.90 .09 31400D3R1 5.000% 06/01/2018 DD 05/01/03 AAA 318,170.18 .08 173,555.81 FNMA POOL #0685200 .000 4.883 AAA 102.402 175,779.51 .05 31400EGH7 5.000% 03/01/2018 DD 03/01/03 AAA 177,725.21 .05 30,117.96 FNMA POOL #0685665 .000 4.883 AAA 102.402 31,021.50 .00 31400EW22 5.000% 02/01/2018 DD 02/01/03 AAA 30,841.50 .01 260,544.38 FNMA POOL #0686318 .000 4.883 AAA 102.402 268,360.72 .07 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 266,803.54 .07 103,870.15 FNMA POOL #0688739 .000 4.884 AAA 102.371 106,986.25 .03 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 106,333.00 .03 94,158.25 FNMA POOL #0689859 .000 4.884 AAA 102.371 85,236.53 .02 31400KMGB 5.000% 05/01/2018 DD 05/01/03 AAA 86,153.72 .02 596,958.61 FNMA POOL #0693834 .000 4.883 AAA 102.402 604,567.36 .17 31400PY74 5.000% 03/01/2018 DD 03/01/03 AAA 601,059.35 .15 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2004/10/31 RUN DATE : 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TINE : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 207,045.39 FNMA POOL #0695852 .000 4.883 AAA 102.402 213,256.75 .06 31400SBV0 5.000% 05/01/2010 DD 05/01/03 AAA 212,019.32 .05 686,691.23 FNMA POOL #0695889 .000 4.884 AAA 102.371 707,291.98 .20 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 702,973.30 .18 21,609.43 FNMA POOL #0697026 .000 4.883 AAA 102.402 22,256.70 .00 31400TLF2 5.000% 05/01/2018 DD 04/01/03 AAA 22,127.54 .01 208,822.66 FNMA POOL #0702210 .000 4.894 AAA 102.168 215,087.33 .06 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 213,349.36 .05 127,983.77 FNMA POOL #0702328 .000 4.883 AAA 102.402 129,623.56 .03 31401AHD2 5.000% 05/01/2018 DD 04/01/03 AAA 131,058.38 .03 262,789.83 FNMA POOL #0709148 .000 4.884 AAA 102.371 270,673.53 .07 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 269,020.81 .07 603,892.76 FNMA POOL #0709360 .000 4.884 AAA 102.371 611,630.15 .18 31401JB56 5.000% 07/01/2018 DD 06/01/03 AAA 618,211.60 .16 102,163.10 FNMA POOL #0709826 .000 4.884 AAA 102.371 103,472.06 .03 314013SP4 5.000% 06/01/2018 DD 06/01/03 AAA 104,595.48 .03 215,631.94 FNMA POOL #0709917 .000 4.884 AAA 102.371 218,394.72 .06 31401JVJ4 5.000% 06/01/2018 DD 06/01/03 AAA 220,744.77 .06 18,126.34 FNMA POOL #0709963 .000 4.894 AAA 102.168 18,358.59 .00 31401JWY0 5.000% 06/01/2018 DD 06/01/03 AAA 18,519.27 .00 578,352.94 FNMA POOL #0710235 .000 4.884 AAA 102.371 595,703.54 .17 31401KBC8 5.000% 06/01/2018 DD 06/01/03 AAA 592,066.21 .15 15,822.29 FNMA POOL #0713344 .000 4.984 AAA 102.371 16,296.95 .00 31401NP52 5.000% 06/01/2018 DD 06/01/03 AAA 16,197.45 .00 251,455.78 FNMA POOL #0713365 .000 4.884 AAA 102.371 254,677.55 .07 31401NQS1 5.000% 07/01/2018 DD 07/01/03 AAA 257,418.02 .07 706,096.92 FNMA POOL #0720319 .000 4.884 AAA 102.372 715,143.78 .21 31401WG45 5.000% 07/01/2018 DD 07/01/03 AAA 722,839.11 .19 2,009,634.03 FNMA POOL #0720369 .000 4.894 AAA 102.168 2,069,923.05 .60 31401WJN0 5.000% 06/01/2018 DD 06/01/03 AAA 2,053,197.37 .53 n YLDANAL YIELD ANALYSIS PAGE s 7 OCSF07522202 2004/10/31 RUN DATE 11/04/04 DISTRICTS LONG-TERM OPERATING RUN TIME s 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 283,631.39 FNMA POOL #0721629 .000 4.884 AAA 102.371 292,140.35 .08 31401XVW4 5.000% 07/01/2018 DD 06/01/03 AAA 290,356.55 .07 232,288.66 FNMA POOL #0723487 .000 4.884 AAA 102.371 234,901.91 .07 31402AX04 5.000% 06/01/2018 DD 06/01/03 AAA 237,796.43 .06 384,203.96 FNMA POOL #0729601 .000 4.884 AAA 102.371 389,126.57 .11 31402BRW3 5.000% 07/01/2018 DD 07/01/03 AAA 393,313.78 .10 33,209.64 FNMA POOL #0732873 .000 4.884 AAA 102.371 33,635.12 .01 31402MFNS 5.000% 11/01/2018 DD 10/01/03 AAA 33,997.07 .01 603,842.23 FNMA POOL #0737130 .000 4.894 AAA 102.371 611,578.96 .18 31402S4P9 5.000% 10/01/2018 DD 10/01/03 AAA 618,159.87 .16 515,276.73 FNMA POOL #0738211 .000 4.894 AAA 102.168 521,878.73 .15 31402UDQ2 5.000% 10/01/2018 DD 10/01/03 AAA 526,446.51 .14 183,857.54 FNMA POOL #0738487 .000 4.887 AAA 102.309 186,213.21 .05 31402UNC2 5.000% 10/01/2018 DD 10/01/03 AAA 188,102.06 .05 670,846.16 FNMA POOL #0740471 .000 4.894 AAA 102.168 679,441.36 .20 31402WT40 5.000% 10/01/2018 DD 10/01/03 AAA 685,388.26 .18 742,040.26 FNMA POOL #0740748 .000 4.884 AAA 102.371 751,547.64 .22 31402W5B7 5.000% 10/01/2018 DD 11/01/03 AAA 759,634.70 .20 36,658.67 FNMA POOL #0743868 .000 4.894 AAA 102.168 37,128.35 .01 31403BMRI 5.000% 11/01/2018 DD 10/01/03 AAA 37,453.33 .01 971,313.42 FNMA POOL #0744008 .000 4.884 AAA 102.371 983,758.37 .29 31403BR54 5.000% 07/01/2018 DD 09/01/03 AAA 994,344.14 .26 150,132.10 FNMA POOL #0744316 .000 4.894 AAA 102.168 152,055.67 .04 31403B384 5.000% 09/01/2018 DD 09/01/03 AAA 153,386.55 .04 338,292.42 FNMA POOL #0747914 .000 4.887 AAA 102.309 342,626.79 .10 31403F3X0 5.000% 11/01/2018 DD 11/01/03 AAA 346,102.20 .09 199,856.29 FNMA POOL #0748400 .000 4.894 AAA 102.168 202,416.95 .06 31403GNR9 5.000% 08/01/2018 DD 09/01/03 AAA 204,188.62 .05 914,728.18 FNMA POOL #0748899 .000 4.893 AAA 102.195 926,448.13 .27 31403G7L0 5.000% 12/01/2018 DD 11/01/03 AAA 934,804.58 .24 YLDANAL YIELD ANALYSIS PAGE : 8 OCSF07522202 2004/10/31 RUN DATE : 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,072,795.57 FNMA POOL #0750377 .000 4.893 AAA 102.195 2,099,353.26 .62 31403JUA2 5.000% 11/01/2019 DD 11/01/03 AAA 2,118,289.16 .55 1,875,560.76 FNMA POOL #0750380 .000 4.893 AAA 102.195 1,899,591.40 .56 31403JUD6 5.000% 11/01/2018 DD 11/01/03 AAA 1,916,725.46 .49 167,449.83 FNMA POOL #0750445 .000 4.893 AAA 102.195 169,595.29 .05 31403JWE2 5.000% 11/01/2018 DD 11/01/03 AAA 171,125.01 .04 789,422.21 FNMA POOL #0751960 .000 4.894 AAA 102.168 799,536.69 .23 31403LMB1 5.000% 12/01/2018 DD 11/01/03 AAA 806,534.71 .21 835,894.05 FNMA POOL #0753425 .000 4.892 AAA 102.215 845,559.06 .25 31403NA23 5.000% 11/01/2018 DD 11/01/03 AAA 854,407.77 .22 586,885.03 FNMA POOL #0755165 .000 4.887 AAA 102.309 594,404.50 .17 31403Q6A3 5.000% 12/01/2018 DD 11/01/03 AAA 600,433.80 .15 906,020.28 FNMA POOL #0756372 .000 4.887 AAA 102.309 916,496.13 .27 31403SJRS 5.000% 11/01/2018 DD 11/01/03 AAA 926,936.57 .24 10,531.10 GNMA POOL #0421389 .000 6.109 AAA 106.395 11,052.73 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 11,204.51 .00 19,900.03 GNMA POOL #0449851 .000 6.143 AAA 105.809 20,885.71 .00 36208FVL0 6.500% 01/15/2028 DD O1/01/98 AAA 21,055.97 .01 36,621.99 GNMA POOL #0466845 .000 6.115 AAA 106.301 38,435.92 .01 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 38,929.46 .01 111,306.73 GNMA POOL #0468052 .000 6.115 AAA 106.301 116,819.89 .03 36209C5M4 6.500% 07/15/2028 DD 07/01/98 AAA 118,319.92 .03 146,405.50 GNMA POOL #0476041 .000 6.115 AAA 106.301 153,428.40 .04 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 155,630.19 .04 120,991.97 GNMA POOL #0478626 .000 6.115 AAA 106.301 126,795.81 .03 36209QVT9 6.500% 01/15/2029 DD O1/01/99 AAA 128,615.41 .03 28,852.41 GNMA POOL #0480598 .000 6.115 AAA 106.301 30,236.41 .00 36209S3F6 6.500% 10/15/2029 DD 10/01/98 AAA 30,670.34 .01 8,416.99 GNMA POOL #0512235 .000 6.118 AAA 106.239 8,833.89 .00 36211GBC6 6.500% 11/15/2029 DD 11/01/99 AAA 8,942.07 .00 YLDANAL YIELD ANALYSIS PAGE 9 OCSF07522202 2004/10/31 RUN DATE 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 106,515.14 GNMA POOL #0514326 .000 6.115 AAA 106.301 111,624.53 .03 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 113,226.42 .03 189,490.94 GNMA II POOL 10080395 .000 3.329 AAA 101.380 187,773.68 .05 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 192,105.35 .05 1,732,824.36 GNMA II POOL #080408X .000 3.331 AAA 101.327 1,715,225.35 .51 36225CN28 6.500% 05/20/2030 DD 05/01/00 AAA 1,755,820.67 .45 376,688.63 GNMA II POOL #0080900 .000 3.000 AAA 99.986 366,506.25 .11 36225DAA2 VAR RT 05/20/2034 DD 05/01/04 AAA 376,636.84 .10 1,385,231.01 GNMA II POOL #0080965 .000 3.468 AAA 100.924 1,384,365.23 .41 36225DCBB VAR RT 07/20/2034 DD 07/01/04 AAA 1,398,034.70 .36 3,000,000.00 GENERAL MTRS ACCEP CORP SR NT .000 5.872 A3 104.312 3,064,350.00 .92 370425SD3 6.125% O8/28/2007 DD O8/29/02 BBB- 3,129,360.00 .81 3,500,000.00 GOLDMAN SACHS GRP MTN #TR00194 .000 2.276 AA3 100.187 3,507,850.50 1.03 38141EJB6 VAR RT 10/27/2006 DD 10/29/03 A+ 3,506,545.00 .90 800,000.00 GOLDMAN SACHS GRP MTN #TR00207 .000 2.426 AA3 100.156 800,000.00 .23 38141EJQ3 VAR RT 07/23/2009 DD 07/23/04 A+ 801,248.00 .21 3,000,000.00 GOLDMAN SACHS GROUP INC SR NT .000 4.032 AA3 102.296 3,030,030.00 .90 38141GCS1 4.125% 01/15/2008 DD O1/13/03 A+ 3,068,880.00 .79 3,000,000.00 KRAFT FOODS INC NT .000 1.960 A3 99.984 2,999,910.00 .89 50075NAJ3 VAR RT 11/26/2004 DD 11/26/02 BBB+ 2,999,520.00 .77 3,200,000.00 MORGAN STANLEY NT .000 3.855 AA3 100.515 3,149,248.00 .94 61746BAL0 3.875% 01/15/2009 DD O1/13/04 A+ 3,216,480.00 .83 744,359.22 RESIDENTIAL ASSET 03-RS11 AIIB .000 2.267 AAA 99.813 744,359.22 .21 760985K83 VAR RT 12/25/2033 DD 12/30/03 AAA 742,963.55 .19 2,985,923.50 SBA GTD DEV PARTN 2001-20C 1 .000 5.833 AAA 108.685 2,985,923.50 .95 83162CLJ0 6.340% 03/01/2021 AAA 3,245,250.96 .84 1,920,261.52 SBA GTD PARTN CTFS SBIC-PS O1 .000 6.100 AAA 108.860 1,920,261.52 .61 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 2,090,396.69 .54 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 85.452 WR 7.994 1,600,000.00 .03 909317BC2 6.831% 03/01/2010 DD O8/22/01 A- 127,904.00 .03 YLDANAL YIELD ANALYSIS PAGE : 10 OCSF07522202 2004/10/31 RUN DATE : 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 20,000,000.00 U S TREASURY NOTES .000 5.787 AAA 108.000 22,620,312.50 6.36 9128272J0 06.250% 02/15/2007 DD 02/15/97 AAA 21,600,000.00 5.56 3,523,890.00 US TREASURY INFLATION INDEX NT .000 3.285 AAA 110.344 3,833,391.35 1.14 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 3,888,401.18 1.00 15,042,560.00 US TREASURY INFLATION INDEX NT .000 3.414 AAA 113.500 16,667,920.11 5.02 9128274Y5 3.875% 01/15/2009 DD 01/15/99 AAA 17,073,305.60 4.40 3,900,000.00 U S TREASURY NOTES .000 5.551 AAA 103.594 4,288,149.14 1.18 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 4,040,166.00 1.04 17,600,000.00 U S TREASURY NOTES .000 3.341 AAA 101.030 17,405,000.00 5.23 912828BT6 3.375% 12/15/2008 DD 12/15/03 AAA 17,781,280.00 4.58 27,500,000.00 U S TREASURY NOTES .000 2.736 AAA 100.520 27,463,468.63 8.14 912828CM0 2.750% 06/30/2006 DD 06/30/04 AAA 27,643,000.00 7.12 49,000,000.00 U S TREASURY NOTES .000 2.736 AAA 100.500 49,103,927.41 14.50 912828CQ1 2.750% 07/31/2006 DD 07/31/04 AAA 49,245,000.00 12.68 55,300,000.00 US TREASURY NOTES .000 2.380 AAA 99.790 55,048,031.25 16.25 912828CU2 2.375% 08/31/2006 DD 08/31/04 AAA 55,183,870.00 14.21 1,750,000.00 VIRGINIA ELEC 6 PWR O1 SER A .000 5.530 A3 103.984 1,743,840.00 .53 927804EN0 5.750% 03/31/2006 DD 03/27/01 BBB+ 1,819,720.00 .47 16,768,640.00 US TREASURY INFLATION INDEX NT 3.817 3.149 AAA 107.188 14,850,698.33 5.29 9128272M3 3.375% 01/15/2007 DD O1/15/97 AAA 17,973,886.00 4.63 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5.967 7.026 AAA 101.404 16,154,410.00 4.62 31359HFHI 7.125% 02/15/2005 DD 02/14/00 AAA 15,717,637.05 4.05 856,962.94 FHLMC MULTICLASS MTG SER E3 A 6.316 3.632 AAA 100.595 857,875.88 .25 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 862,061.87 .22 528,130.19 GNMA GTD REMIC TR 2000-9 FH 6.320 2.373 AAA 100.662 528,130.19 .15 3837H4NX9 VAR RT 02/16/2030 AAA 531,626.41 .14 227,031.75 GNMA II POOL /080088M 6.705 3.330 AAA 101.362 231,998.08 .06 36225CC20 7.3758 06/20/2027 DD 06/01/97 AAA 230,123.01 .06 169,687.62 GNMA II POOL #0080023 6.992 4.533 AAA 102.027 172,498.06 .05 36225CAZ9 VAR RT 12/20/2026 DD 12/01/96 AAA 173,126.71 .04 . 4 i YLDANAL YIELD ANALYSIS PAGE 11 OCSF07522202 2004/10/31 RUN DATE : 11/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 15.34.10 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7.113 5.852 AAA 113.204 2,030,133.00 .70 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,377,293.03 .61 1,000,000.00 FORD MOTOR CR CO NT 7.582 6.612 A3 102.093 965,170.00 .30 345397GV9 6.750% 05/15/2005 DD 05/24/93 BBB- 1,020,930.00 .26 937,922.84 WMP/NUNTOON PAIGE #000-11150 7.684 7.352 AAA 102.016 917,552.33 .28 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 956,831.08 .25 1,600,000.00 ALLSTATE CORP SR UT 7.967 7.674 Al 102.625 1,594,032.00 .48 020002AL5 7.875% 05/01/2005 DD 05/01/00 A+ 1,642,000.00 .42 -------- ------- ----------------- --------- TOTAL FIXED INCOME SECURITIES .163 4.517 336,781,591.36 100.00 339,576,077.79 87.45 -------- ------- ----------------- --------- TOTAL .159 4.428 385,603,664.71 100.00 388,398,151.14 100.00 Asset Detail Report ID: GL8013 Base Currency: USD @ Mellon by Currency Alternate Base Currency: Exchange Rate: OCSDLCOMOLZDATED-OCSG000 10000 10/31/2004 Status: FINAL AT U.S.DOLLAR CASH as CASH EQUWALENTS PAYABLE FOR INVESTMENTS -26,465,000.00 -26,465,000.00 -6.05% 0.00 PURCHASED INTEREST RECEIVABLE 3,179,113.99 3,179,113.99 0.73% 0.00 RECEIVABLE FOR INVESTMENTS 16,529.64 16,529.64 0.00% 0.00 SOLD BANK OF AMERICA NA INSTL C/D 100.0000 2,200,000.000 2,200,000.00 2,200,000.00 0.50% 0.00 1.620% 11/02/2004 DD 08/06/04 SEC ID:06050GEM8 FEDERAL HOME LN BKS CONS DISC 99.7164 8,400,000.000 8,376,181.33 8,376,181.33 1.91% 0.00 MAT 11/19/2004 SEC ID:313384Q28 FEDERAL HOME LN BK CONS DISC N 99.5508 5,000,000.000 4,977,541.67 4,977,541.67 1.14% 0.00 MAT 12/08/2004 SEC ID:313384S59 FEDERAL HOME LN BK CONS DISC N 99.5215 4,200,000.000 4,179,158.56 4,179,158.56 0.95% 0.00 MAT01/21/2005 SEC ID:313385AW6 FEDERAL HOME LN MTG CORP DISC 99.6006 7,300,000.000 7,270,844.61 7,270,844.61 1.66% 0.00 MAT 11/09/2004 SEC ID:313396N82 FEDERAL HOME LN MTG CORP DISC 99.5860 1,000,000.000 995,860.00 995,860.00 0.23% 0.00 MAT 11/16/2004 SEC ID:313396P72 FEDERAL HOME LN MTG CORP DISC 99.5451 6,100,000.000 6,072,251.78 6,072,251.78 1.39% 0.00 MAT 12/14/2004 SEC ID:313396T37 FEDERAL HOME LN MTG CORP DISC 99.5258 7,600,000.000 7,563,959.11 7,563,959.11 1.73% 0.00 MAT01/04/2005 SEC ID:313397AD3 FEDERAL NATL MTG ASSN DISC NT 99.5975 1,800,000.000 1,792,755.00 1,792,755.00 0.41% 0.00 MAT 11/3/2004 SEC ID:313588N27 FEDERAL NATL MTG ASSN DISCOUNT 99.5918 2,800,000.000 2,788,569.39 2,788,569.39 0.64% 0.00 MAT 11/17/2004 SEC ID:313588P82 FEDERAL NATL MTG ASSN DISCOUNT 99.5779 4,000,000.000 3,983,114.44 3,983,114.44 0.91% 0.00 MAT 11/24/2004 SEC ID:313588Q73 111812004 2:10:11 PM PST 1 Workbench Asset Detail Report ID: GL8013 Base Currency: USD Mellon by Currency Alternate Base Currency: e Rate:: OCSDLCONSOLFDATED OCSGOOO 10000 10/31/2004 ExchangS tatus FINAL FEDERAL NATL MTG ASSN DISCOUNT 99.5703 6,000,000.000 5,974,216.67 5,974,216.67 1.36% 0.00 MAT 12/01/2004 SEC ID: 3135881164 FEDERAL NATL MTG ASSN DISCOUNT 99.5050 9,900,000.000 9,850,995.00 9,850,995.00 2.25% 0.00 MAT 01/05/2005 SEC ID:313589AE3 FEDERAL NATL MTG ASSN DISC NT 99.4944 700,000.000 696,461.11 696,461.11 0.16% 0.00 MAT01/26/2005 SEC ID: 31358913138 GENERAL ELEC CAP DISC 99.4499 500,000.000 497,249.58 497,249.58 0.11% 0.00 11/16/2004 SEC ID:36959HLGO GENERAL ELEC CAP DISC 99.5604 200,000.000 199,120.89 199,120.89 0.05% 0.00 12/02/2004 SEC ID: 36959HM20 GENERAL ELEC CAP DISC 99.3200 9,900,000.000 9,832,680.00 9,832,680.00 2.25% 0.00 02/04/2005 SEC ID:36959HP43 U S TREASURY BILL 99.6297 5,600,000.000 5,579,262.11 5,579,262.11 1.27% 0.00 DUE 11/04/2004 DD 05/06/2004 SEC ID:912795RK9 U S TREASURY BILL 99.5999 2,000,000.000 1,991,997.50 1,991,997.50 0.46% 0.00 DUE ll/12/2004 DD 05/13/2004 SEC ID: 912795RL7 U S TREASURY BILL 99.6441 5,000,000.000 4,982,207.29 4,982,207.29 1.14% 0.00 DUE 11/18/2004 DD 05/20/2004 SEC ID:912795RMS U S TREASURY BILL 99.6137 5,000,000.000 4,980,686.39 4,980,686.39 1.14% 0.00 DUE 11/26/2004 DD 05/27/2004 SEC ID: 912795RN3 U S TREASURY BILL 99.0246 16,000,000.000 15,843,937.78 15,843,937.78 3.62% 0.00 DUE 03/31/2005 DD 09/30/2004 SEC ID: 912795SG7 WELLS FARGO BK NA INSTL C/D 100.0000 1,100,000.000 1,100,000.00 1,100,000.00 0.25% 0.00 1.900% 12/15/2004 DD 10/14/04 SEC ID:9497PIJEO WELLS FARGO BANK NA INSTL C/D 100.0000 300,000.000 300,000.00 300,000.00 0.07% 0.00 1.860% 12/06/2004 DD 10/08/04 SEC ID:9497P1LQ0 DREYFUS TREASURY CASH MGMT 100.0000 3,791,210.180 3,791,210.18 3,791,210.18 0.87% 0.00 SEC ID: 996085247 TOTAL CASH&CASH EQUIVALENTS 116,391,210.180 92,550,904.02 92,5SO,904.02 21.14% 0.00 111812004 2:10:1 IPM PST 2 Workbench Asset Detail Report ID: GL8013 Base Currency: USD Mellon by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOZZDATED-OCSGWO 10000 10/31/2004 Status: FnIAL q '4� : Ot Uft eid k677d 7 "" A .M "olmrkdf lfte 0Ng � tj a7 - • Wx FIXED INCOME SECURITIES AIG SUNAMERICA GLOBAL REG S 109.8670 752,000.000 826,199.84 826,199.84 0.19% 0.00 5.850%08/01/2008 DD 08/08/01 SEC ID: U00907AAO COMMIT TO PUR FNMA SF MTG 102.0313 22,000,000.000 22,405,625.00 22,446,875.00 5.13% 41,250.00 5.000% 11/01/2019 DD 11/01/04 SEC ID: 0 1 F0504139 COMMIT TO PUR FNMA SF MTG 101.8100 4,000,000.000 4,059,375.00 4,072,400.00 0.93% 13,025.00 5.500% 11/01/2034 DD 11/01/04 SEC ID: 01170526133 ALLSTATE CORP SR NT 102.6250 1,600,000.000 1,594,032.00 1,642,000.00 0.38% 47,968.00 7.875%05/01/2005 DD 05/01/00 SEC ID: 020002ALS ASSOCIATES CORP NORTH AMER SR 102.4210 3,000,000.000 3,112,350.00 3,072,630.00 0.70% -39,720.00 6.625%06/15/2005 DD 06/09/95 SEC ID: 046003FFI CIT GROUP INC NEW SR NT 100.4210 1,500,000.000 1,507,005.00 1,506,315.00 0.34% -690.00 VAR RT 09/22/2006 DD 09/23/03 SEC ID: 12558 1AF5 WMP/HUNTOON PAIGE#000-11150 102.0160 937,922.840 917,552.33 956,831.08 0.22% 39,278.75 7.500% 12/01/2030 DD 10/21/99 SEC ID: 302998GE3 FEDERAL HOME LN BK CONS BDS 101.3918 3,500,000.000 3,732,225.00 3,548,714.05 0.81% -183,510.95 7.125%02/15/2005 DD 02/08/00 SEC ID: 3133MAUN7 FHLMC MULTICLASS MTG SER E3 A 100.5950 856,962.940 857,875.88 862,061.87 0.20% 4,185.99 VAR RT 08/15/2032 DD 12/01/97 SEC ID:3133TCE95 FHLMC GROUP#78-6064 103.5505 63,092.270 61,554.38 65,332.36 0.01% 3,777.98 6.384%01/01/2028 DD 12/01/97 SEC ID: 31348SWZ3 FEDERAL NATI,MTG ASSN DEBS 113.2044 2,100,000.000 2,030,133.00 2,377,293.03 0.54% 347,160.03 6.625%09/15/2009 DD 09/01/99 SEC ID: 31359MEY5 FEDERAL NATL MTG ASSN DEBS 101.4041 15,500,000.000 16,154,410.00 15,717,637.05 3.59% -436,772.95 7.125%02/15/2005 DD 02/14/00 SEC ID:31359MFH1 FEDERAL NATL MTG ASSN DEBS 104.1050 11,350,000.000 11,521,271.50 11,815,922.04 2.70% 294,650.54 5.250%06/15/2006 DD 06/22/01 SEC ID:31359MJX2 FNMA POOL#0254510 102.4023 683,657.830 704,167.56 700,081.62 0.16% -4,085.94 5.000% 11/01/2017 DD 10/01/02 SEC ID: 31371 KVB4 111812004 2:10:1 1PM PST 3 Workbench Asset Detail Report M: GL8013 Base Currency: USD @ Mellon by Currency Alternate Base Currency: Exchange Rate: OCSD-CONSOLIDATED OCSGWO 1.0000 10/31/2004 Status: FINAL -Z§ FNMA POOL#0254631 102.4023 146,850.740 151,256.27 150,378.59 0.03% -877.68 5.000%02/01/2018 DD 0 1/0 1/03 SEC ID:31371KY47 FNMA POOL#0254760 102.3711 130,626.670 134,545.46 133,723.95 0.03% -821.51 5.000%06/01/2018 DD 05/01/03 SEC ID: 31371K5V9 FNMA POOL#0254866 102.3711 59,334.150 61,114.18 60,741.02 0.01% -373.16 5.000%09/01/2018 DD 08/01/03 SEC ID:3137ILCB3 FNMA POOL#0254953 102.3086 314,272,030 318,298.65 321,527.28 0.07% 3,228.63 5.000% 11/01/2018 DD 10/01/03 SEC ID:31371LE21 FNMA POOL#0254987 102.1677 851,201.210 862,107.22 869,652.91 0.20% 7,545.69 5.000% 12/01/2018 DD 11/01/03 SEC ID: 31371LF46 FNMA POOL#0323980 105.3047 152,478.220 159,196.79 160,566.72 0.04% 1,369.93 6.000%04/01/2014 DD 09/01/99 SEC ID:31374T2M0 FNMA POOL#0357328 102.2263 24,876.090 25,622.37 25,429.91 0.01% -192.46 5.000%01/01/2018 DD 01/01/03 SEC ID: 31376J4M8 FNMA POOL#0357430 102.3711 1,308,920.170 1,323,645.52 1,339,955.85 0.31% 16,310.33 5.000%09/01/2018 DD 09/01/03 SEC ID:31376KA71 FNMA POOL#0456482 105.3047 42,249.230 44,110.82 44,490.42 0.01% 379.60 6.000%02/01/2014 DD 02/01/99 SEC ID:31381CCT2 FNMA POOL#0509649 105.3047 101,291.490 105,754.65 106,664.69 0.02% 910.04 6.000%09/01/2014 DD 09/01/99 SEC ID:31383QEWO FNMA POOL#0535451 105.1797 119,126.760 124,375.78 125,297.16 0.03% 921.38 6.000%06/01/2015 DD 07/01/00 SEC ID: 31384VZQ8 FNMA POOL#0555363 102.4023 313,444.130 322,847.44 320,974.12 0.07% -1,873.32 5.000%04/01/2018 DD 03/01/03 SEC ID:31385W5Y1 FNMA POOL#0555453 102,4023 32,483.460 32,899.66 33,263.82 0.01% 364.16 5.000%05/01/2018 DD 04/01/03 SEC ID: 31385XBW6 FNMA POOL#0555545 102.4023 259,992.240 267,792.02 266,238.14 0.06% -1,553.88 5.000%06/01/2018 DD 05/0 1/03 SEC ID: 31385XES2 111812004 2:10.1 IPM PST 4 Workbench Asset Detail Report ID: GL8013 Base Currency: USD / Mellon by Currency Alternate Base Currency: Exchange Rate: OCSDCONSOUDATED-OCS000010000 10/31/2004 Status: FINAL .. - -. „::.- ," ......•_;..t yc ..:..;_: .`.<. <Qs. r�. _ a:. ri '•i-''{ .k '71 .. ..^ :..: -».r.Yh#,.rc ... ..., ; (, t.. -:SS .r Y .. &•- ,,mot.,,_ J ., r, .. -.:_-- r-'v .., d'.. i'�... .;� .%x{t k:a 'W 1".' `:t. �.r .y} k.t•.. . , . ,� . ,. = �. Nit iT" ..: .r, .,. ,!,•2;xn, .:f, ,f; ,. rv.. 9t_,t-., .za.. .;.:ii•�.,,, :ss,. �a,, mz. a5t,. L.zF,a ,,n - c' '... � _j_ .�, :.�! ;� + � ik,.�, �` r: � •ttyr _ ,j; i �+. •:S a ;y 4,i.e._ 3iI..;. ;.< - ... ... ........,�-., .'2? ,i...-.f•s�.r:. ,%sar�''�ctc. N:��s�� 4 rre F.: _ ,r fit _ Qt _i '`__ y,y ��s tpif .a,.t ,,., -i zirl_ :. ..t•a,�- rr 1r Ce) "�?:. _.`mac• fti iJ7;s., a.. 'i�_.... �, '-des'�i i�G4 Yilggi +.9.c. i_: '? y. ..r ,Z:!u r t' y}� fit,:rr' ...t 't• . �.q DeBCl� � 9tL 9 - 'S pAr a 5 Ji413:jf_ x. , w i> 1, F.: t roc. :r11 : =re - I::.ak BA8ea7l. a:... �'OLstr f � ztTBasea bases B�s� FNMA POOL#0555621 102.1677 899,158.160 909,273.69 918,649.44 0.21% 9,375.75 5.000%07/01/2018 DD 06/01/03 SEC ID:31385XG68 FNMA POOL#0681309 102.4023 481,874.830 496,331.07 493,451.10 0.11% -2,879.97 5,000%02/01/2018 DD 02/01/03 SEC ID:31391Y3S4 FNMA POOL#0681334 102.4023 59,126.410 60,900.20 60,546.83 0.01% -353.37 5,000%02/01/2018 DD 01/01/03 SEC ID:31391Y4T1 FNMA GTD REMIC P/T 02-76 PD 100.2140 584,096.120 595,778.04 585,346.32 0.13% -10,431.72 5.000%08/25/2022 DD 10/01/02 SEC ID:31392FKF3 FNMA POOL#0684908 102.4023 310,705.970 314,686.90 318,170.18 0.07% 3,483.28 5.000%06/01/2018 DD 05/01/03 SEC ID:31400D3R1 FNMA POOL#0685200 102.4023 173,555.810 175,779.51 177,725.21 0.04% 1,945.70 5.000%03/01/2018 DD 03/01/03 SEC ID:31400EGH7 FNMA POOL#0685665 102.4023 30,117.960 31,021.50 30,841.50 0.01% -180.00 5.000%02/01/2018 DD 02/01/03 SEC ID:31400EW22 FNMA POOL#0686318 102.4023 260,544.380 268,360.72 266,803.54 0.06% -1,557.18 5.000%03/01/2018 DD 03/01/03 SEC ID:31400FPB7 FNMA POOL#0688739 102.3711 103,870.150 106,986.25 106,333.00 0.02% -653.25 5.000%06/01/2018 DD 06/01/03 SEC ID:31400JEL9 FNMA POOL#0689859 102.3711 84,158.250 85,236.53 86,153.72 0.02% 917.19 5.000%05/01/2018 DD 05/01/03 SEC ID:31400KMG8 FNMA POOL#0693834 102.4023 586,958.610 604,567.36 601,059.35 0.14% -3,508.01 5.000%03/01/2018 DD 03/01/03 SEC ID:3140OFY74 FNMA POOL#0695852 102.4023 207,045.390 213,256.75 212,019.32 0.05% -1,237.43 5.000%05/01/2018 DD 05/01/03 SEC ID:31400SBVO FNMA POOL#0695889 102.3711 686,691.230 707,291.98 702,973.30 0.16% -4,318.68 5.000%05/01/2018 DD 05/01/03 SEC ID:31400SC23 FNMA POOL#0697026 102.4023 21,608.430 22,256.70 22,127.54 0.01% -129.16 5.000%05/01/2018 DD 04/01/03 SEC ID:31400TLF2 111812004 2:10:11PM PST 5 Workbench Asset Detail Report m: GL8013 Mellon Alternate Baase Currency:se Currency: IISD by Currency Exchange Rate: OCSIICON50UDATED-OCS000010000 10/31/2004 statue: FINAL ,..us ,5. .... 4' 8 � ', _. ? kt y> a ' 1ice'.• � ., ',•F a +`hs""A r,.. _.1:• .. -1�.�,'v.IT t Cz.: �...`. y,c <,ali�t6 YiYe ,,, #.... .: ;.,.:_..�•_...:... x....y€�itr`t Lt�.;�'�"� �`�at�r88$eE•bi. a,$iWr@$, t ,� ;�:,�, Cif "y3ir.. �.�AS@'�..#,C•»,� tt,.t.�.:1�� @:�F�`r. t'3..:#. .s� .��!�,�4, �$ a f FNMA POOL#0702210 102.1677 208,822.660 215,087.33 213,349.36 0.05% -1,737.97 5.000%05/01/2018 DD 05/01/03 SEC ID:31401ADP9 FNMA POOL#0702328 102.4023 127,983.770 129,623.56 131,058.38 0.03% 1,434.82 5.0000/6 05/01/2018 DD 04/01/03 SEC ID:31401AHD2 FNMA POOL#0709148 102.3711 262,789.830 270,673.53 269,020.81 0.06% -1,652.72 5.000%06/01/2018 DD 06/01/03 SEC ID: 31401HZM7 FNMA POOL#0709360 102.3711 603,892.760 611,630.15 618,211.60 0.14% 6,581.45 5.000%07/01/2018 DD 06/01/03 SEC ID:31401JB56 FNMA POOL#0709826 102.3711 102,163.100 103,472.06 104,585.48 0.02% 1,113.42 5.000%06/01/2018 DD 06/01/03 SEC ID:31401JSP4 FNMA POOL#0709917 102.3711 215,631.940 218,394.72 220,744.77 0.05% 2,350.05 5.0009/6 06/01/2018 DD 06/01/03 SEC ID:31401JVJ4 FNMA POOL#0709963 102.1677 18,126.340 18,358.59 18,519.27 0.00% 160.68 5.000%06/01/2018 DD 06/01/03 SEC ID:31401JWYO FNMA POOL#0710235 102.3711 578,352.940 595,703.54 592,066.21 0.14% -3,637.33 5.000%06/01/2018 DD 06/01/03 SEC ID:31401KBC8 FNMA POOL#0713344 102.3711 15,822.290 16,296.95 16,197.45 0.00% -99.50 5.000%06/01/2018 DD 06/01/03 SEC ID: 3140INP52 FNMA POOL 40713365 102.3711 251,455.780 254,677.55 257,418.02 0.06% 2,740.47 5.000%07/01/2018 DD 07/01/03 SEC ID: 31401NQSI FNMA POOL#0720319 102.3711 706,096.920 715,143.78 722.839.11 0.17% 7,695.33 5.000%07/01/2018 DD 07/01/03 SEC ID:31401WG45 FNMA POOL#0720369 102.1677 2,009,634.030 2,069,923.05 2,053,197.37 0.47% -16,725.68 5.000%06/01/2018 DD 06/01/03 SEC ID:31401 WJNO FNMA POOL#0721629 102.3711 283,631.390 292,140.35 290,356.55 0.07% -1,783.80 5.000%07/01/2018 DD 06/01/03 SEC ID:31401XVW4 FNMA POOL#0723487 102.3711 232,288.660 234,901.91 237,796.43 0.05% 2,894.52 5.000%06/01/2018 DD 06/01/03 SEC ID:31402AXQ4 111812004 2:10.1IPM PST 6 Workbench Asset Detail Report m: OLS013 Base Currency: USD / Mellon by Currency Alternate Base Currency: Exchange Rate: C CO11T5ouDATED-ocsc;00O 1000O 10/31/2004 Status: FINAL iV - x :9 a' wr, �,. :15 ,1. t•. C 5_ t r.,� _,¢a:.� ,3 �ss :. 1_. .....,:.,-?- �'�`" -;,;. ,P ,.. .;..a.t ..• .�`�:::. ..: _;x .,;:�.�iz1: tEh � ^'.e K'�t{_�?^S.h £!. -�r.•'' � ,x. ;r � ,.,.I�t�-. _ .a.._ .Jyr: ..,a�� .:; �t - ?L. t.. _- :t.r _ •��i GtrL �L�•.A- 4._ - -T'•u.�II .:. � t,,,. �:t k' .., 't' n /� ,t 7, t.$•� � ue�- , f..:. _,. 0 �' >• T"Ona Ve'.i t� Z.. :�.4 ,r,Cosfi u P h. .(;... �' i LO$e% ® w�xri• � Y .1 i. t';1.;.an4 .,,--1, }. �. ^` �f..+- C.:• .+..-.!•.. ;��::ta.� I . z�." ..ram +,-k'Px P�.•:. �.i.�., ..a' ., .: •..-x P.,Lqq- ` .-i i,..a s_a. Y ;{.rAt.Y-•f• i�LI6`'S'''k, r� ri- ` �cs.SFl•"' $ ., fx� r 1 x'; if r., `.. . � !'_.. �'_�,F.:.�•."•t�,.�.L�A.<��BpltY'�- SI;��.�� x.�."dS �� $ r .,.�'� "' �''i'Ba�e�.•; _�: .f;.�`Otre. 'f�'-,'t'�'�fsase•-: FNMA POOL#0729601 102.3711 384,203.960 389,126.57 393,313.78 0.09% 4,187.21 5.000°/a 07/01/2018 DD 07/01/03 SEC ID:31402HRW3 FNMA POOL#0732873 102.3711 33,209.640 33,635.12 33,997.07 0.01% 361.95 5.000% 11/01/2018 DD 10/01/03 SEC ID:31402MFN5 FNMA POOL#0737130 102.3711 603,842.230 611,578.96 618,159.87 0.14% 6,580.91 5.000% 10/01/2018 DD 10/01/03 SEC ID: 31402S4P9 FNMA POOL#0738211 102.1677 515,276.730 521,878.73 526,446,51 0.12% 4,567.78 5.000% 10/O1/2018 DD 10/01/03 SEC ID:31402UDQ2 FNMA POOL#0738487 102.3086 183,857.540 186,213.21 188,102.06 0.04% 1,888.85 5.000% 10/01/2018 DD 10/01/03 SEC ID:31402UNC2 FNMA POOL#0740471 102.1677 670,846.160 679,441.36 685,388.26 0.16% 5,946.90 5.000% 10/01/2018 DD 10/01/03 SEC ID:31402WT40 FNMA POOL#0740748 102.3711 742,040,260 751,547.64 759,634.70 0.17% 8,087.06 5.000% 10/01/2018 DD 11/01/03 SEC ID:31402W5H7 FNMA POOL#0743868 102.1677 36,658.670 37,128.35 37,453.33 0.01% 324.98 5.000% 11/01/2018 DD 10/01/03 SEC ID: 31403BMR1 FNMA POOL#0744008 102.3711 971,313.420 983,758.37 994,344.14 0.23% 10,585.77 5.000%07/01/2018 DD 09/01/03 SEC ID:31403BR54 FNMA POOL#0744316 102.1677 150,132.100 152,055.67 153,386.55 0.04% 1,330.88 5.000%09/01/2018 DD 09/01/03 SEC ID:31403B3Z4 FNMA POOL#0747914 102.3086 338,292.420 342,626.79 346,102.20 0.08% 3,475.41 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403F3X0 FNMA POOL#0748400 102.1677 199,856.290 202,416.95 204,188.62 0.05% 1,771.67 5.000%08/01/2018 DD 09/01/03 SEC ID:31403GNR9 FNMA POOL#0748899 102.1948 914,728.180 926,448.13 934,804.58 0.21% 8,356.45 5.000% 12/01/2018 DD 11/01/03 SEC ID:31403G7L0 FNMA POOL#0750377 102.1948 2,072,795.570 2,099,353.26 2,118,289.16 0.48% 18,935.90 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403JUA2 I11812004 2:10:IIPM PST 7 Workbench Asset Detail Report ID: OLS013 Base Currency. USD @ Mellon by Currency Alternate Base Currency: Exchange Rate: OC8D,CONSOZJJ)ATED-OCSGOOO 10000 10/31/2004 Status: FINAL w, "�7 iL -TCCAI� FNMA POOL#0750380 102.1948 1,875,560.760 1,899,591.40 1,916,725.46 0.44% 17,134.06 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403JUD6 FNMA POOL#0750445 102.1948 167,449.830 169,595.29 171,125.01 0.04% 1,529.72 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403JWE2 FNMA POOL#0751960 102.1677 789,422.210 799,536.69 806,534.71 0.18% 6,998.02 5.000% 12/01/2018 DD 11/01/03 SEC ID:31403LMH1 FNMA POOL#0753425 102.2148 835,894.050 845,559.06 854,407.77 0.20% 8,848.71 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403NA23 FNMA POOL#0755165 102.3086 586,885.030 594,404.50 600,433.80 0.14% 6,029.30 5.000% 12/01/2018 DD 11/01/03 SEC ID:31403Q6A3 FNMA POOL#0756372 102.3086 906,020.280 916,496.13 926,936.57 0.21% 10,440.44 5.000% 11/01/2018 DD 11/01/03 SEC ID:31403SJR8 FORD MOTOR CR CO NT 102.0930 11000,000.000 965.170.00 1,020,930.00 0.23% 55,760.00 6.750%05/15/2005 DD 05/24/93 SEC ID:345397GV9 GNMA POOL#0421389 106.3945 10.531.100 11,052.73 11,204.51 0.00% 151.78 6.500%04/15/2026 DD 04/01/96 SEC ID:36206UC23 GNMA POOL#0449851 105.8087 19,900.030 20,885.71 21,055.97 0.00% 170.26 6.500%01/15/2028 DD 01/01/98 SEC ID:36208FWLO GNMA POOL#0466845 106.3008 36,621.990 38,435.92 38,929.46 0.01% 493.54 6.500%06/15/2028 DD 06/01/98 SEC ID:36209BTA6 GNMA POOL#0468052 106.3008 111,306.730 116,819.89 118,319.92 0.03% 1,500.03 6.500%07/15/2028 DD 07/01/98 SEC ID:36209C5M4 GNMA POOL#0476041 106.3008 146,405.500 153,428.40 155,630.19 0.04% 2,201.79 6-900%06/15/2028 DD 06/01/98 SEC ID:36209MZE7 GNMA POOL#0478626 106.3008 120,991.970 126,795.81 128,615.41 0.03% 1,819.60 6.500%01/15/2029 DD 0 1/0 1/99 SEC ID:36209QVT,9 GNMA POOL#0480,998 106.3008 28,852.410 30,236.41 30,670.34 0.01% 433.93 6.500% 10/15/2028 DD 10/01/98 SEC ID:36209S3F6 111812004 2.10:1 IPM pST 8 Workbench Asset Detail Report ID: GL8013 @ Mellon Base Currency: USD by Currency Alternate Base Currency: Exchange Rate: 0CSDLC0AfS0LTZk4TED-OCSCvOOO 10000 10/31/2004 Status: FERAL .T, alp- �a��I I'. I�,�',i�,I,�.�.111� GNMA POOL#05 12235 106.2383 8,416.990 8,833.89 8,942.07 0.00% 108.18 6.500% 11/15/2029 DD 11/01/99 SEC ID:36211 GBC6 GNMA POOL#0514326 106.3008 106,515.140 111,624.53 113,226.42 0.03% 1,601.89 6.500%07/15/2029 DD 07/01/99 SEC ID: 3621 IJLF2 GNMA H POOL#0080023 102.0267 169,687.620 172,498.06 173,126.71 0.04% 628.65 VAR RT 12/20/2026 DD 12/01/96 SEC ID:36225CAZ9 GNMA H POOL 4080088M 101.3616 227,031.750 231,998.08 230,123.01 0.05% -1,875.07 7.375%06/20/2027 DD 06/01/97 SEC ID:36225CC20 GNMA JJ POOL#0080395 101.3797 189,490.940 187,773.68 192,105.35 0.04% 4,331.67 VAR RT 04/20/2030 DD 04/01/00 SEC ID: 36225CNM4 GNMA II POOL#080408X 101,3271 1,732,824.360 1,715,225.35 1,755,820.67 0.40% 40,595.32 6.500%05/20/2030 DD 05/01/00 SEC ID:36225CN28 GNMA[I POOL#0080900 99.9863 376,688.630 366,506.25 376,636.84 0.09% 10,130.59 VAR RT 05/20/2034 DD 05/01/04 SEC ID:36225DAA2 GNMA 11 POOL#0080965 100.9243 1,385,231.010 1,384,365.23 1,398,034.70 0.32% 13,669.47 VAR RT 07/20/2034 DD 07/01/04 SEC ID: 36225DCB8 GENERAL ELEC CAP MTN#TR 00526 100.0460 2,500,000.000 2,502,460.00 2,501,150.00 0.57% -1,310.00 VAR RT 03/15/2005 DD 03/20/02 SEC ID:36962GXX7 GENERAL MTRS ACCEP CORP SR NT 104.3120 3,000,000.000 3,064,350.00 3,129,360.00 0.71% 65,010.00 6.125%08/28/2007 DD 08/29/02 SEC ID:370425SD3 GOLDMAN SACHS GRP MTN 100.1870 3,500,000.000 3,507,850.50 3,506,545.00 0.80% -1,305.50 #TROO194 VAR RT 10/27/2006 DD 10/29/03 SEC ID: 3814 1 EJI36 GOLDMAN SACHS GRP MTN 100.1560 800,000.000 800,000.00 801,248.00 0.18% 1,248.00 #TR00207 VAR RT 07/23/2009 DD 07/23/04 SEC ID: 3814 1&JQ3 GOLDMAN SACHS GROUP INC SR NT 102.2960 3,000,000.000 3,030,030.00 3,068,880.00 0.70% 38,850.00 4.125%01/15/2008 DD 01/13/03 SEC ID:38141GCS I 111812004 2:10:11 PM PST 9 Workbench Asset Detail Report m: GL8013 Mellon Alternate Base Currency: IISD by Currency Exchange Rate: 0CSDLC0NiS0I.1DATED-OCSGWO10000 10/31/2004 Status: Fn(AL ,.r, '�- P�. ,t +•:S.t.s ......, .,p:.a,a �#. ;✓h,t ii;.:. � .:.._. ,,yyj r• �.7�; r. -.i;i �i'L'�t�1i.'iut.b„1. .z?,.. ' .,1�Y, �... a\':.,../ -...je F F7•,'i<� 'r^d},K!„ l a y i.• ) a.�;' t� �� ET'.t"'a Ht.:, � 1 � �T''�Ilj.� <} �..,'L`°.`' ..-' 3 ..,...f 1 ��`1k.f�"'• .: I,t�:ll � )_G..y�'" r "'i' •4•f.`> �'� �, ',��..t ,�C.;L J,. 2�k� 1.� �,HeU. _ali�e�< -: _ `lj'di s'•'`�.•r�-�� - �. "P�w el"'. 17:.{.. ':irs'a'.,_ ,Price ,. -x_.�.�_.c- ,,.ut`.. _s .. ��. .-.",),r� ._,•. . -__......cryc.,:y l.r�'f�uc• ..,�. - �.. ,,.tt ..Y r- ; ,_�. c'- 'Z,tt k ?:uZS... ." 'YF�e.Y r�'tt �. ? �n ;s!r.�^1 { `c4 1.y:f W] w.'ik"+ "x "ak. Y. .'? N i� t 1 t tt, 1. �:. �� ''� t 8 88 1':,.t f..::t '�88 >�" �-s }r . $ Se .3 <,p^ Bad GNMA GTD REMIC TR 2000-9 FH 100.6620 528,130.190 528,130.19 531,626.41 0.12% 3,496.22 VAR RT 02/16/2030 SEC ID:3837H4NX9 KRAFT FOODS INC NT 99.9840 3,000,000.000 2,999,910.00 2,999,520.00 0.69% -390.00 VAR RT 11/26/2004 DD 11/26/02 SEC ID: 50075NAJ3 MORGAN STANLEY NT 100.5150 3,200,000.000 3,149,248.00 3,216,480.00 0.73% 67,232.00 3.875%01/15/2009 DD O1/13/04 SEC ID:61746BALO RESIDENTIAL ASSET 03-RS11 AIIB 99.8125 744,359.220 744,359.22 742,963.55 0.17% -1,395.67 VAR RT 12/25/2033 DD 12/30/03 SEC ID: 760985K83 SBA GTD DEV PARTN 2001-20C 1 108.6850 2,985,923.500 2,985,923.50 3,245,250.96 0.74% 259,327.46 6.340%03/01/2021 SEC ID:83162CLJ0 SBA GTD PARTN CTFS SBIC-PS 01 108.8600 1,920,261.520 1,920,261.52 2,090,396.69 0.48% 170,135.17 6.640%02/10/2011 DD 02/21/01 SEC ID: 831641DD4 UNITED AIRLS PASSTHRU 0 1-1 C 7.9940 1,600,000.000 1,600,000.00 127,904.00 0.03% -1,472,096.00 6.831%03/01/2010 DD O8/22/01 SEC ID:909317BC2 U S TREASURY NOTES 108.0000 20,000,000.000 22,620,312.50 21,600,000.00 4.93% -1.020,312.50 06.250%02/15/2007 DD 02/15/97 SEC ID:9128272J0 US TREASURY INFLATION INDEX NT 107.1875 16,768,640.000 14,850,698.33 17,973,886.00 4.11% 3,123,187.67 3.375%01/15/2007 DD 01/15/97 SEC ID:9128272M3 US TREASURY INFLATION INDEX NT 110.3440 3,523,890.000 3,833,391.35 3,888,401.18 0.89% 55,009.83 3.625%0 1/15/2008 DD 01/15/98 SEC ID:9128273T7 US TREASURY INFLATION INDEX NT 113.5000 15,042,560.000 16,667,920.11 17,073,305.60 3.90% 405,385.49 3.875%01/15/2009 DD 01/15/99 SEC ID:9128274Y5 U S TREASURY NOTES 103.5940 3,900,000.000 4,288,149.14 4,040,166.00 0.92% -247,983.14 05.750% 11/15/2005 DD 11/15/00 SEC ID:9128276N7 U S TREASURY NOTES 101.0300 17,600,000.000 17,405,000.00 17,781,280.00 4.06% 376,280.00 3.375% 12/15/2008 DD 12/15/03 SEC ID:912828BT6 U S TREASURY NOTES 100.5200 27,500,000.000 27,463,468.63 27,643,000.00 6.32% 179,531.37 2.750%06/30/2006 DD 06/30/04 SEC ID:912828CM0 111812004 2:10.11PM pST 10 Workbench Asset Detail Report ID: GL8013 @ Mellon Base Currency: USD by CulTency Alternate Base Currency: e Rate: C 3OUDATED-0080000 10000 10131/2004 EzchangStatus: FINAL i Km g g, k pv WNNet IIvsealizedr IS! j -1 s V.. Ddic' U S TREASURY NOTES 100.5000 49,000,000.000 49,103,927.41 49,245,000.00 11.25% 141,072.59 2.750%07/31/2006 DD 07/31/04 SEC ID:912828CQI US TREASURY NOTES 99.7900 55,300,000.000 55,048,031.25 55,183,870.00 12.61% 135,838.75 2.375%08/31/2006 DD 08/31/04 SEC ID:912828CU2 VIRGINIA ELEC&PWR 01 SERA 103.9840 1,750,000.000 1,743,840.00 1,819,720.00 0.42% 75,880.00 5.750%03/31/2006 DD 03/27/01 SEC ID:927804ENO TOTAL FIXED INCOME SECURITIES 337,619,532.5I0 342,396,401.36 345,149,857.79 78.86% 2,753,456.43 TOTAL ASSETS U.S.DOLLAR 454,010,742.690 434,947,305.38 437,700,761.81 100.00% 2,753,456.43 TOTAL ASSETS-BASE: 454,010,742.690 434,947,305.38 437,700,761.81 100.00% 2,753,456.43 111812004 2:10.11PM PST 11 Workbench Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSZ)-CONSOLZDATED -OCSCTOOO 10000 10/1/2004 - 10/29/2004 Status: FINAL Di' PURCHASES CASH&CASH EQUIVALENTS U.S. DOLLAR • FEDERAL HOME LN BK CONS DISC N MAT 10/22/2004 99.4982 3,200,000.000 3,183,943.56 -3,183,943.56 0.00 01/21/2005 10/22/2004 SEC ID:313385AW6 10/22/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO • FEDERAL HOME LN BK CONS DISC N MAT 10/26/2004 99.5215 1,000,000.000 995,215.00 -995,215.00 0.00 01/21/2005 10/26/2004 SEC ID:313385AW6 10/26/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07511102:LIQUID OPER-PIMCO • FEDERAL HOME LN MTG CORP DISC MAT 10/8/2004 99.5258 7,600,000.000 7,563,959.11 -7,563,959.11 0.00 01/04/2005 10/8/2004 SEC ID:313397AD3 10/8/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO • FEDERAL NATL MTG ASSN DISCOUNT MAT 10/7/2004 99.5050 9,900,000.000 9,850,995.00 -9,850,995.00 0.00 01/05/2005 10/7/2004 SEC ID:313589AE3 10/7/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONG TERM OPER-PIMCO • FEDERAL NATL MTG ASSN DISC NT MAT 10/27/2004 99.4944 700,000.000 696,461.11 -696,461.11 0.00 01/26/2005 10/27/2004 SEC 11):31358913138 10/27/2004 BROKER: LEHMAN GOVr SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO • GENERAL ELEC CAP DISC 02/04/2005 10/7/2004 99.3200 9,900,000.000 9,832,680.00 -9,832,680.00 0.00 SEC ID:36959HP43 10/7/2004 BROKER. CITIBANK CP IPA,NEW YORK 10/7/2004 OCSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench Transaction Detail Report W: EWB009 IV aon Reported by Transaction Category Base Currency, USD OCSD-CONSOLI DATE DM12000 Doom= 10/1/2004 - 10/29/2004 Status: FINAL M :0 r. ® A ,r 1 NSN z • WELLS FARGO 13K NA INSTL C/D 1.900% 10/12/2004 100.0000 1,100,000.000 1,100,000.00 -1,100,000.00 0.00 12/15/2004 DD 10/14/04 10/14/2004 SEC ID:9497PlJEO 10/12/2004 BROKER: BANC OF AMERICA SEC LLC,SAN FRANCISCO OCSF07511102:LIQUID OPER-PIMCO • WELLS FARGO BANK NA INSTL C/D 1.860% 10/6/2004 100.0000 300,000.000 300,000.00 -300,000.00 0.00 12/06/2004 DD 10/08/04 10/8/2004 SEC ID:9497PILQO 10/6/2004 BROKER: BANC OF AMERICA SEC LLC,SAN FRANCISCO OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.710%10/05/2004 DD 10/4/2004 100.0000 2,100,000.000 2,100,000.00 -2,100,000.00 0.00 10/04/04 10/4/2004 SEC ID:99426D349 10/4/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN BROTHERS REPO 0 1.700% 10/5/2004 100.0000 2,100,000.000 2,100,000.00 -2,100,000.00 0.00 10/06/2004 DD 10/05/04 10/5/2004 SEC ID:99426E438 10/5/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.710%10/07/2004 DD 10/6/2004 100.0000 2,100,000.000 2,100,000.00 -2,100,000.00 0.00 10/06/04 10/6/2004 SEC ID:99426F963 10/6/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • CREDIT SUISSE FB REPO 01.700%10/07/2004 10/6/2004 100.0000 18,200,000.000 18,200,000.00 -18,200,000.00 0.00 DD 10/06/04 10/6/2004 SEC ID:99426F971 10/6/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONGTERM OPER-PIMCO • CREDIT SUISSE FB REPO 0 1.700%10/08/2004 10/7/2004 100.0000 2,800,000.000 2,800,000.00 -2,800,000.00 0.00 DD 10/07/04 10/7/2004 SEC ID:99426H258 10/7/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONG TERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 2 1 Transaction Detail Report ID: EWB009' @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D=2 0 00 00000-DOO 10/1/2004 - 10/29/2004 Status: FINAL ry� A " -gk : ffi i;u�P -� P § tApzkdiiU 6`N - rffi-", ,TY,1�r�:P�e��c�zP�_:::.._;��' :, •��-��.,:&�r,. .� !��'�,i,:,..P.. ._-.:.,:�..�_•�.,�.. `� ..i�._. "g ��_�-:f�.:�k.�- ..,:. � �n...:�.; ��n:,� ,.,. .T�.r... .,. '�:_ IL • LEHMAN CAT 2 REPO 0 1.730%10/08/2004 DD 10/7/2004 100.0000 3,300,000.000 3,300,000.00 -3,300,000.00 0.00 10/07/04 10/7/2004 SEC ID:994261-1282 10/7/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.680%10/12/2004 DD 10/8/2004 100.0000 3,000,000.000 3,000,000.00 -3,000,000.00 0.00 10/08/04 10/8/2004 SEC ID:99426J684 10/8/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • CREDIT SUISSE FB REPO 0 1.700%10/13/2004 10/12/2004 100.0000 3,000,000.000 3,000,000.00 -3,000,000.00 0.00 DD 10/12/04 10/12/2004 SEC ID:99426L143 10/12/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 01.720%10/14/2004 DD 10/13/2004 100.0000 1,900,000.000 1,900,000.00 -1,900,000.00 0.00 10/13/04 10/13/2004 SEC ID:99426M489 10/13/2004 BROKER LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.730%10/15/2004 DD 10/14/2004 100.0000 1,900,000.000 1,900,000.00 -1,900,000.00 0.00 10/14/04 10/14/2004 SEC ID:99426N784 10/14/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.770%10/18/2004 DD 10/15/2004 100.0000 3,400,000.000 3,400,000.00 -3,400,000.00 0.00 10/15/04 10/15/2004 SEC ID:99426Q316 10/15/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.720%10/19/2004 DD 10/18/2004 100.0000 3,400,000.000 3,400,000.00 -3,400,000.00 0.00 10/18/04 10/18/2004 SEC ID:99426RS95 10/18/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111812004 2:12:30PM PST Workbench 3 Transaction Detail Report M: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D=0 00 00000000 10/1/2004 - 10/29/2004 Status: FINAL d YP.Atbill • LEHMAN CAT 2 REPO 01.710%10/20/2004 DD 10/19/2004 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 10/19/04 10/19/2004 SEC ID:99426TO96 10/19/2004 BROKER LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.680%10/21/2004 DD 10/20/2004 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 10/20/04 10/20/2004 SEC ID:99426U523 10/20/2004 BROKER LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.710%10/22/2004 DD 10/21/2004 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 10/21/04 10/21/2004 SEC ID:99426VB85 10/21/2004 BROKER. LEHMAN GOVT SECS INC,NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN BROTHERS REPO 0 1.700% 10/22/2004 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 10/25/2004 DD 10/22/04 10/22/2004 SEC ID:99426X287 10/22/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • CREDIT SUISSE FB REPO 0 1.700%10/26/2004 10/25/2004 100.0000 3,500,000.000 3,500,000.00 -3,500,000.00 0.00 DD 10/25/04 10/25/2004 SEC ID:99426Y814 10/25/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.680%10/27/2004 DD 10/26/2004 100.0000 2,500,000.000 2,500,000.00 -2,500,000.00 0.00 10/26/04 10/26/2004 SEC ID:99427AI 12 10/26/2004 BROKER LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO • LEHMAN CAT 2 REPO 0 1.710%10/28/2004 DD 10/27/2004 100.0000 2,500,000.000 2,500,000.00 -2,500,000.00 0.00 10/27/04 10/27/2004 SEC ID:99427B888 10/27/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111812004 2:12:30PM PST Workbench 4 Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currencyy : USDSD OCSD-CONSOLIDATE D=0 DO 00000000 10/1/2004 - 10/29/2004 Status: FINAL i T-M 4, E�� ' �' u,» ��•a tr•,-,,.r };�';� r: �.f,.s„ `e ''f 3'= ,h..'r'k;� s� t -:!�,i�. � r-.�- ��, .ct a ,. �, 'G`N' a3.;�� :::� �'.:I: B LEHMAN CAT 2 REPO 0 1.740%10/29/2004 DD 10/28/2004 100.0000 2,500,000.000 2,500,000.00 -2,500,000.00 0.00 10/28/04 10/28/2004 SEC ID:99427DO09 10/28/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO B DREYFUS TREASURY CASH MGMT 10/1/2004 1.0000 19,997.580 19,997.58 -19,997.58 0.00 SEC ID:996085247 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/1/2004 B DREYFUS TREASURY CASH MGMT 10/4/2004 1.0000 103,422.220 103,422.22 -103,422.22 0.00 SEC ID:996085247 10/4/2004 OCSF07511102:LIQUID OPER-PIMCO 10/4/2004 B DREYFUS TREASURY CASH MGMT 10/5/2004 1.0000 1,252.030 1,252.03 -1,252.03 0.00 SEC ID:996085247 10/5/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/5/2004 B DREYFUS TREASURY CASH MGMT 10/5/2004 1.0000 3,002.280 3,002.28 -3,002.28 0.00 SEC ID:996085247 10/5/2004 OCSF07511102:LIQUID OPER-PIMCO 10/5/2004 B DREYFUS TREASURY CASH MGMT 10/6/2004 1.0000 99.170 99.17 -99.17 0.00 SEC ID:996085247 10/6/2004 OCSF07511102:LIQUID OPER-PIMCO 10/6/2004 B DREYFUS TREASURY CASH MGMT 10/7/2004 1.0000 89,138.860 89.138.86 -89,138.86 0.00 SEC ID:996085247 10/7/2004 OCSF07522202:LONG TERM OPER-PIMCO 10/7/2004 B DREYFUS TREASURY CASH MGMT 10/8/2004 1.0000 3,000,158.580 3,000,158.58 -3,000,158.58 0.00 SEC ID:996085247 10/8/2004 OCSF07511102:LIQUID OPER-PIMCO 10/8/2004 B DREYFUS TREASURY CASH MGMT 10/13/2004 1.0000 1,100,141.670 1,100,141.67 -1,100,141.67 0.00 SEC ID:996085247 10/13/2004 OCSF07511102:LIQUID OPER-PIMCO 10/13/2004 111812004 2:12:30PM PST Workbench 5 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATEDM[20 00 DOD00000 10/1/2004 - 10/29/2004 Status: FINAL E FIT" A, w---y B DREYFUS TREASURY CASH MGMT 10/14/2004 1.0000 15,703.120 15,703.12 -15,703.12 0.00 SEC ID:996085247 10/14/2004 OCSF07522202:LONG TERM OPER-PIMCO 10/14/2004 B DREYFUS TREASURY CASH MGMT 10/15/2004 1.0000 128,247.560 128,247.56 -128,247.56 0.00 SEC ID:996085247 10/15/2004 OCSF07511102:LIQUID OPER-PIMCO 10/15/2004 B DREYFUS TREASURY CASH MGMT 10/18/2004 1.0000 14,537.990 14,537.99 -14,537.99 0.00 SEC ID:996085247 10/18/2004 OCSF07522202:LONG TERM OPER-PIMCO 10/18/2004 B DREYFUS TREASURY CASH MGMT 10/18/2004 1.0000 501.500 501.50 -501.50 0.00 SEC ID:996085247 10/18/2004 OCSF07511102:LIQUID OPER-PIMCO 10/18/2004 B DREYFUS TREASURY CASH MGMT 10/19/2004 1.0000 76,484.360 76,484.36 -76,484.36 0.00 SEC ID:996085247 10/19/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/19/2004 B DREYFUS TREASURY CASH MGMT 10/20/2004 1.0000 166.250 166.25 -166.25 0.00 SEC ID:996085247 10/20/2004 OCSF07511102:LIQUID OPER-PIMCO 10/20/2004 B DREYFUS TREASURY CASH MGMT 10/20/2004 1.0000 94,672.060 94,672.06 -94,672.06 0.00 SEC ID:996085247 10/20/2004 OCSF07522202:LONG TERM OPER-PIMCO 10/20/2004 B DREYFUS TREASURY CASH MGMT 10/21/2004 1.0000 163.330 163.33 -163.33 0.00 SEC ID:996085247 10/21/2004 OCSF07511102:LIQUID OPER-PIMCO 10/21/2004 B DREYFUS TREASURY CASH MGMT 10/22/2004 1.0000 166.250 166.25 -166.25 0.00 SEC ID:996085247 10/22/2004 OCSF07511102:LIQUID OPER-PIMCO 10/22/2004 B DREYFUS TREASURY CASH MGMT 10/25/2004 1.0000 495.830 495.83 -495.83 0.00 SEC ID:996085247 10/25/2004 OCSF07511102:LIQUID OPER-PIMCO 10/25/2004 111812004 2:12:30PM PST Workbench 6 Transaction Detail Report ID: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D-MI211710 000011000 10/1/2004 - 10/29/2004 Status: FINAL T- • DREYFUS TREASURY CASH MGMT 10/25/2004 1.0000 713,111.330 713,111.33 -713,111.33 0.00 SEC ID:996085247 10/25/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/25/2004 • DREYFUS TREASURY CASH MGMT 10/26/2004 1.0000 4,950.280 4,950.28 -4,950.28 0.00 SEC ID:996085247 10/26/2004 OCSF07511102:LIQUID OPER-PIMCO 10/26/2004 • DREYFUS TREASURY CASH MGMT 10/27/2004 1.0000 116.670 116.67 -116.67 0.00 SEC ID:996085247 10/27/2004 OCSF07511102:LIQUID OPER-PIMCO 10/27/2004 • DREYFUS TREASURY CASH MGMT 10/28/2004 1.0000 6,692.080 6,692.08 -6,692.08 0.00 SEC ID:996085247 10/28/2004 OC SF0752 2202:LONGTERM OPER-PIMCO 10/28/2004 • DREYFUS TREASURY CASH MGMT 10/28/2004 1.0000 118.750 118.75 -118.75 0.00 SEC ID:996085247 10/28/2004 OCSF07511102:LIQUID OPER-PIMCO 10/28/2004 • DREYFUS TREASURY CASH MGMT 10/29/2004 1.0000 2,499,050.830 2,499,050.83 -2,499,050.83 0.00 SEC ID:996085247 10/29/2004 OCSF07511102:LIQUID OPER-PIMCO 10/29/2004 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: 113,772,390.580 113,595,644.36 -113,595,644.36 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 113,772,390.580 113,595,644.36 -113,595,644.36 0.00 FIXED INCOME SECURITIES U.S. DOLLAR • COMMIT TO PUR FNMA SF MTG 5.000% 10/15/2004 101.8438 22,000,000.000 22,405,625.00 -22,405,625.00 0.00 11/01/2019 DD 11/01/04 11/18/2004 SEC ID:01170504139 10/15/2004 BROKER: UBS SECURITIES LLC, NEW YORK OCSF0752 2202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 7 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DME211001113000 0110 10/1/2004 - 10/29/2004 Status: FINAL ily • COMMIT TO PUR FNMA SF MTO 5.500% 10/12/2004 101.5000 3,000,000.000 3,045,000.00 -3,045,000.00 0.00 11/01/2034 DD 11/01/04 11/15/2004 SEC ID:0IF0526133 10/12/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO • COMMIT TO PUR FNMA SF MTG 5.500% 10/12/2004 101.4375 1,000,000.000 1,014,375.00 -1,014,375.00 0.00 11/01/2034 DD 11/01/04 11/15/2004 SEC ID:01F0526133 10/12/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO • CIT GROUP INC NEW SR NT VAR RT 10/12/2004 100.4670 1,500,000.000 1,507,005.00 -1,507,005.00 0.00 09/22/2006 DD 09/23/03 10/15/2004 SEC ID: 125581AF5 10/12/2004 BROKER: BARCLAYS CAPITAL INC,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO IB C IT GROUP INC NEW SR NT VAR RT 10/12/2004 100.4670 0.000 0.00 -2,222.14 0.00 09122/2006 DD 09/23/03 10/15/2004 SEC ID: 125581AFS 10/12/2004 BROKER: BARCLAYS CAPITAL INC,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO B GOLDMAN SACHS GRP MTN#TR00 194 VAR RT 10/12/2004 100.2243 3,500,000.000 3,507,850.50 -3,507,850.50 0.00 10/27/2006 DD 10/29/03 10/15/2004 SEC ID:38141 EJB6 10/12/2004 BROKER: BANC OF AMERICA SEC LLC,SAN FRANCISCO OCSF07522202:LONG TERM OPER-PIMCO IB GOLDMAN SACHS GRP MTN#TR00194 VAR RT 10/12/2004 100.2243 0.000 0.00 -14,233.33 0.00 10/27/2006 DD 10/29/03 10/15/2004 SEC ID:38141EJB6 10/12/2004 BROKER: BANC OF AMERICA SEC LLC,SAN FRANCISCO OCSF07522202:LONGTERM OPER-PEMCO B U S TREASURY NOTES 2.750%07/31/2006 DD 10/6/2004 100,3370 28,300,000.000 28,395,371.00 -28,395,371.00 0.00 07/31/04 10/8/2004 SEC ID:912828CQI 10/6/2004 BROKER: BEAR STEARNS&CO INC,NY OCSF07522202:LONG TERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 8 Transaction Detail Report ID: EWB009 ! Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED02000000000❑0 10/1/2004 - 10/29/2004 Status: FINAL F" E•S''. ,t'.. s-c:. :n xts�'r. ,. '{ -•byyyy--.k.. >•-;y r F. �. '`a �. s� k m.'s.t'$ k-i :.6A .z,�•`'. J:..$:Y -.6 -fF ,C�. :"{:� [-t°�`"'F' ..'Sw "'h; ? 'i'''�:. , .��, ..�`'.u.. ,u'�?t :.c.��....,_. 1 rfG;us'w ;'&t^ti+`c�. ..w,. ---r -r �,� .�� -y. .=yam.#. 'i- �- - c?- �s - '•3 1 :,� m.:.:.4 r. ,�i_ wc, .F F•: � s.#�`, - J'd�."yt<' .� {,. •w. -r_. :..A.t'S... ;y etT3 ;:�- a?a ',.�,+. . . _ .. � •{{ y_,. *'�. 3ru - F 1.4 ^•.y Jr. _ '. ..t'<::'.. tiiW2ila `:��: .,:�� .�"'�'�t'M$;:"ti,. �`��_ •�nAc�' v�� e ,.k�� - •t?', '�.T `��a*,. �� W t. aF"�c,.,.. 1 .• e..• ,t..:''"�� .'i a"k...rc3,e•t _.r s -ri',. j �..-_a.;: �I ,,. .4 .,r n? `,_ :{..; �. 2:-:.. '2%7'-y,r.4 r.�z ,. v kr < :'�4,..• ., 3'*�, C .sir;...; . : - P . .�.�;`.s ��rk.,.e .€ ��,��-'� .,�i-,—.}�,. ,f;�'c, ";��' �,.t+.r .'` �, s u"�u� �, �z�._ � ,. x.t 4 F v. IB U S TREASURY NOTES 2.750%07/31/2006 DD 10/6/2004 100.3370 0.000 0.00 -145,921.88 0.00 07 31 04 SEC ID:912828CQI 10/8/2004 BROKER: BEAR STEARNS&CO INC,NY 10/6/2004 OCSF07522202:LONG TERM OPER-PIMCO B US TREASURY NOTES 2.375%08/31/2006 DD 10/5/2004 99.5391 42,800,000.000 42,602,718.75 -42,602,718.75 0.00 08/31/04 10/6/2004 SEC ID:912828CU2 10/5/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO IB US TREASURY NOTES 2.375%08/31/2006 DD 10/5/2004 99.5391 0.000 0.00 -101,088.40 0.00 08/31/04 10/6/2004 SEC ID:912828CU2 10/5/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO B US TREASURY NOTES 2.3750/.08/31/2006 DD 10/6/2004 99.5625 12,500,000,000 12,445,312.50 -12,445,312.50 0.00 08/31/04 10/7/2004 SEC ID:912828CU2 10/6/2004 BROKER: BEAR STEARNS&CO INC,NY OCSF07522202:LONG TERM OPER-PIMCO IB US TREASURY NOTES 2.375%08/31/2006 DD 10/6/2004 99.5625 0.000 0.00 -30,343.58 0.00 08/31/04 10/7/2004 SEC ID:912828CU2 10/6/2004 BROKER: BEAR STEARNS&CO INC,NY OCSF07522202:LONGTERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S.DOLLAR 114,600,000.000 114,923,257.75 -115,217,067.08 0.00 TOTAL FIXED INCOME SECURITIES BASE: 114,600,000.000 114,923,257.75 -115,217,067.08 0.00 TOTAL PURCHASES BASE: 228,372,390.580 228,518,902.11 -228,812,711.44 0.00 PAY UPS FIXED INCOME SECURITIES U.S. DOLLAR 111812004 2:12:30PM PST Workbench 9 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DO=0 00 00D00000 10/1/2004 - 10/29/2004 Status: FINAL ilk him 41.d Mat p"ft. " Jd t f Ne�C#i��L�B I L m VA w3 * 1 PU US TREASURY INFLATION INDEX NT 3.375% 7/15/2004 100.0000 7,700.000 7,700.00 -7,700.00 0.00 01/15/2007 DD 01/15/97 7/15/2004 SEC ID:9128272M3 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PU US TREASURY INFLATION INDEX NT 3.625% 7/15/2004 100.0000 1,620.000 1,620.00 -1,620.00 0.00 01/15/2008 DD 01/15/98 7/15/2004 SEC ID:9128273T7 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PU US TREASURY INFLATION INDEX NT 3.875% 7/15/2004 100.0000 6,890.000 6,890.00 -6,890.00 0.00 01/15/2009 DD 0 1/15/99 7/15/2004 SEC ID:9128274Y5 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S.DOLLAR: 16,210.000 16,210.00 .16,210.00 0.00 TOTAL FIXED INCOME SECURITIES BASE: 16,210.000 16,210.00 -16,210.00 0.00 TOTAL PAY UPS BASE: 16,210.000 16,210.00 -16,210.00 0.00 SALES CASH&CASH EQUIVALENTS U.S. DOLLAR S FEDERAL HOME LN BK CONS DISC 10/1/2004 99.6006 -700,000.000 -697,204.28 697,204.28 0.00 SEC ID:313384P37 10/1/2004 BROKER: LEHMAN GOUT SECS INC, NY 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO IS FEDERAL HOME LN BK CONS DISC 10/1/2004 99.6006 0.000 0.00 1,407.39 0.00 SEC ID:313384P37 10/1/2004 BROKER: LEHMAN GOUT SECS INC, NY 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 10 1 Transaction Detail Report ID: EWBO09' Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DaU20 00 00DOC1000 10/1/2004 - 10/29/2004 Status: FINAL S co V S FEDERAL HOME LN BK CONS DISC N MAT 10/1/2004 99.5576 -2,800,000.000 -2,787,613.89 2,787,613.89 0.00 12/08/2004 10/1/2004 SEC ID:313384S59 10/1/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL HOME LN BK CONS DISC N MAT 10/1/2004 99.5576 0.000 0.00 3,024.78 0.00 12/08/2004 10/1/2004 SEC ID:313384S59 10/1/2004 BROKER:MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL HOME LN BK CONS DISC N MAT 10/15/2004 99.5576 -800,000.000 -796,461.11 796,461.11 0.00 12/08/2004 10/15/2004 SEC ID:313384S59 10/15/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONG TERM OPER-PIMCO Is FEDERAL HOME LN BK CONS DISC N MAT 10/15/2004 99.5576 0.000 0.00 1,510.89 0.00 12/08/2004 10/15/2004 SEC ID:313384S59 10/15/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO S FEDERAL HOME LN MTG CORP DISC MAT 10/1/2004 99.4461 -400,000.000 -397,784.56 397,784.56 0.00 11/24/2004 10/1/2004 SEC ID:313396Q71 10/1/2004 BROKER: MORGAN STANLEY&CO INC, NY OCSF07522202:LONG TERM OPER-PIMCO IS FEDERAL HOME LN MTG CORP DISC MAT 10/1/2004 99.4461 0.000 0.00 1,219.44 0.00 11/24/2004 10/1/2004 SEC ID:313396Q71 10/1/2004 BROKER: MORGAN STANLEY&CO INC, NY OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.7663 -700,000.000 -698,364.14 698,364.14 0.00 11/15/2004 10/1/2004 SEC ID:313588P66 10/1/2004 BROKER:CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench Transaction Detail Report ED: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DL-=000 00000000 10/1/2004 - 10/29/2004 Status: FERAL sllmd*—AM tt e IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.7663 0.000 0.00 135.23 0.00 11/15/20G4 10/1/2004 SEC ID:313588P66 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.6040 -5,400,000.000 -5,378,617.50 5,378,617.50 0.00 11/17/2004 10/1/2004 SEC ID:313588P82 BROKER:CHASE SECURITIES,NEW YORK 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.6040 0.000 0.00 9,186.00 0.00 11/17/2004 10/1/2004 SEC ID:313588P82 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.5804 -800,000.000 -796,643.11 796,643.11 0.00 11/24/2004 10/1/2004 SEC ID:313588Q73 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99,5804 0.000 0.00 1,280.89 0.00 11/24/2004 10/1/2004 SEC ID:313588Q73 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.6650 -1,100,000.000 -1,096,315.00 1,096,315.00 0.00 11/29/2004 10/1/2004 SEC ID:313588R49 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.6650 0.000 0.00 512.11 0.00 11/29/2004 10/1/2004 SEC ID:313588R49 10/1/2004 BROKER:CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 12 1 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DMIM000 0DODDOOD 10/1/2004 - 10/29/2004 Status: FINAL N %0 g Y.5-.. ;.09 P41 U in�Ni IN OR I M, .34"S S FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.5909 -4,000,000.000 -3,983,636.61 3,983,636.61 0.00 12/01/2004 10/1/2004 SEC ID:313588R64 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/1/2004 99.5909 0.000 0.00 4,298.95 0.00 12/01/2004 10/1/2004 SEC ID:313588R64 10/1/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 10/15/2004 99.5551 -200,000.000 -199,110.22 199,110.22 0.00 12/08/2004 10/15/2004 SEC ID:313588S55 10/15/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/15/2004 99.5551 0.000 0.00 382.78 0.00 12/08/2004 10/15/2004 SEC ID:313588SSS 10/15/2004 BROKER: MERRILL LYNCH PIERCE FENNER SMITH INC NY OCSF07522202:LONG TERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISC NTS MAT 10/15/2004 99.5676 -400,000.000 -398,270.44 398,270.44 0.00 12/15/2004 10/15/2004 SEC ID-.31358BT47 10/15/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO IS FEDERAL NATL MTG ASSN DISC NTS MAT 10/15/2004 99.5676 0.000 0.00 509.56 0.00 12/15/2004 10/15/2004 SEC ID:313588T47 10/15/2004 BROKER: CHASE SECURITIES,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO S FEDERAL NATL MTG ASSN DISCOUNT MAT 10/15/2004 99.5324 -3,600,000.000 -3,583,165.00 3,583,165.00 0.00 12/22/2004 10/15/2004 SEC ID:313588U37 10/15/2004 BROKER. CHASE SECURITIES,NEW YORK OCSF07522202:LONG TERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 13 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD -OCSDC ONSOLI DATE D=2 0 00 uo[i0000ci 10/1/2004 - 10/29/2004 Status: FINAL '1111 1 4111",1 vir-11 IS FEDERAL NATL MTG ASSN DISCOUNT MAT 10/15/2004 99.5324 0.000 0.00 4,459.00 0.00 12/22/2004 10/15/2004 SEC ID:313588U37 BROKER: CHASE SECURITIES,NEW YORK 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO S LEHMAN CAT 2 REPO 01.710%10/05/2004 DD 10/5/2004 100.0000 -2,100,000.000 -2,100,000.00 2,100,000.00 0.00 10/04/04 10/5/2004 SEC ID:99426D349 10/5/2004 BROKER. LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.710%10/05/2004 DD 10/5/2004 100.0000 0.000 0.00 99.75 0.00 10/04/04 10/5/2004 SEC ID:99426D349 10/5/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN BROTHERS REPO 0 1.700% 10/6/2004 100.0000 -2,100,000.000 -2,100,000.00 2,100,000.00 0.00 10/06/2004 DD 10/05/04 10/6/2004 SEC ID:99426E438 10/6/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN BROTHERS REPO 0 1.700% 10/6/2004 100.0000 0.000 0.00 99.17 0.00 10/06/2004 DD 10/05/04 10/6/2004 SEC ID:9942613438 10/6/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.710%10/07/2004 DD 10/7/2004 100.0000 -2,100,000.000 -2,100,000.00 2,100,000.00 0.00 10/06/04 10/7/2004 SEC ID:99426F963 10/7/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.710%10/07/2004 DD 10/7/2004 100.0000 0.000 0.00 99.75 0.00 10/06/04 10/7/2004 SEC ID:9942617963 10/7/2004 BROKER; LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111812004 2:12:30PM PST Workbench 14 1 Transaction Detail Report M: EWBO09' @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D=D 00 00DC0000 10/1/2004 - 10/29/2004 Status: FINAL TOO,el 7rf�Mv- & N-P MR RED- IX� Vxi �1 71 7�, 'ig 1 r n a 4 1 S CREDIT SUISSE FB REPO 01.700%10/07/2004 10/7/2004 100.0000 -18,200,000.000 -18,200,000.00 18,200,000.00 0.00 DD 10/06/04 10/7/2004 SEC ID:99426F971 10/7/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONG TERM OPER-PIMCO IS CREDIT SUISSE FB REPO 01.700%10/07/2004 10/7/2004 100.0000 0.000 0.00 859.44 0.00 DD 10/06/04 10/7/2004 SEC ID:99426F971 10/7/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONG TERM OPER-PIMCO S CREDIT SUISSE FB REPO 01.700%10/08/2004 10/8/2004 100.0000 -2,800,000.000 -2,800,000.00 2,800,000.00 0.00 DD 10/07/04 10/8/2004 SEC ID:994261-1258 10/8/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONG TERM OPER-PIMCO IS CREDIT SUISSE FB REPO 01.700%10/08/2004 10/8/2004 100.0000 0.000 0.00 132.22 0.00 DD 10/07/04 10/8/2004 SEC ID:99426H258 10/8/2004 BROKER. CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07522202:LONGTERM OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.730%10/08/2004 DD 10/8/2004 100.0000 -3,300,000.000 -3,300.000.00 3,300,000.00 0.00 10/07/04 10/8/2004 SEC ID:9942614282 10/8/2004 BROKER- LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.730%10/08/2004 DD 10/8/2004 100.0000 0.000 0.00 158.58 0.00 10/07/04 10/8/2004 SEC ID-.99426H282 10/8/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111812004 2:12:30PM PST Workbench 15 Transaction Detail Report m: EWB009 / Mellon Reported by Transaction Category Base Currency: USn OCSD-CONSOLIDATED000❑0❑❑❑❑❑❑ 10/1/2004 - 10/29/2004 Status: FINAL M - _ ILmoi�,.,..L3''.;;,.,,,'rv;Dt. ``.I`.�•i..�{np`r a�S�`�-�i",b��dPFr..`..r�lir•.t�= d i � �3�r r �J�,,,"..,,a•• ��}ecs 'x-ir7 c_,ti::a,s,x:e 3 w4fs,..5•.��#�z E�,'a�.=F'T »u r,. uz.-y:�{`i;•tt i_.` t.u'rS1{: s-iW:..i•:vs c +n.. 3+�'ti,.9�t:'sw<-tnti•'-i fa'�;+. �..r;r�ra��; "sI�..�z +,e t� <. : S LEHMAN CAT 2 REPO 01,680%10/12/2004 DD 10/12/2004 100.0000 -3,000,000.000 -3,000,000.00 3,000,000.00 0.00 10/08/04 10/12/2004 SEC ID:99426J684 10/12/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.680%10/12/2004 DD 10/12/2004 100.0000 0.000 0.00 560.00 0.00 10/08/04 10/12/2004 SEC ID:99426J684 10/12/2004 BROKER: LEHMAN GOUT SECS INC,NY OCSF07511102:LIQUID OPER-PIMCO S CREDIT SUISSE FB REPO 01.7000/6 10/13/2004 10/13/2004 100.0000 -3,000,000.000 -3,000,000.00 3,000,000.00 0.00 DD 10/12/04 10/13/2004 SEC ID:99426L143 10/13/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO IS CREDIT SUISSE FB REPO 01.7000/6 10/13/2004 10/13/2004 100.0000 0.000 0.00 141.67 0.00 DD 10/12/04 10/13/2004 SEC ID:99426LI43 10/13/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.720%10/14/2004 DD 10/14/2004 100.0000 -1,900,000.000 -1,900,000.00 1,900,000.00 0.00 10/13/04 10/14/2004 SEC ID:99426M489 10/14/2004 BROKER:LEHMAN GOUT SECS INC,NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.720%10/14/2004 DD 10/14/2004 100,0000 0.000 0.00 90.78 0.00 10/13/04 10/14/2004 SEC ID:99426M489 10/14/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.730%10/15/2004 DD 10/15/2004 100.0000 -1,900,000.000 -1,900,000.00 1,900,000.00 0.00 10/14/04 10/15/2004 SEC ID:99426N784 10/15/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 11/8/2004 2:12:30PM PST Workbench 16 Transaction Detail Report ID: EWB009' Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=2 D 00 0D000000 10/1/2004 - 10/29/2004 Status: FINAL an:! 11a w v Y D666*lpft A 1'0 IS LEHMAN CAT 2 REPO 0 1.730%10/15/2004 DD 10/15/2004 100.0000 0.000 0.00 91.31 0.00 10/14/04 10/15/2004 SEC ID:99426N784 10/15/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.770%10/18/2004 DD 10/18/2004 100.0000 -3,400,000.000 -3,400,000.00 3,400,000.00 0.00 10/15/04 10/18/2004 SEC ID:99426Q316 10/18/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.770%10/18/2004 DD 10/18/2004 100.0000 0.000 0.00 501.50 0.00 10/15/04 10/18/2004 SEC ID:99426Q316 10/18/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.720%10/19/2004 DD 10/19/2004 100.0000 -3,400,000.000 -3,400,000.00 3,400,000.00 0.00 10/18/04 10/19/2004 SEC ID:99426R595 10/19/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.720%10/19/2004 DD 10/19/2004 100.0000 0.000 0.00 162.44 0.00 10/18/04 10/19/2004 SEC ID:99426R595 10/19/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.710%10/20/2004 DD 10/20/2004 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 10/19/04 10/20/2004 SEC ID:99426TO96 10/20/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.710%10/20/2004 DD 10/20/2004 100.0000 0.000 0.00 166.25 0.00 10/19/04 10/20/2004 SEC ID:99426T1096 10/20/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111812004 2:12:30PM PST Workbench 17 Transaction Detail Report ID: EWB009 rMellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D❑![r2DF100❑❑❑❑❑❑❑ 10/1/2004 - 10/29/2004 Status: FINAL, Trade Date Tran Settle Date ice Cost Amount Net Gain/Loss Type Description Reported Date Base Shares/Par Base Base Base S LEHMAN CAT 2 REPO 01.680%10/21/2004 DD 10/21/2004 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 10/20/04 10/21/2004 SEC ID:99426U523 10/21/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.680%10/21/2004 DD 10/21/2004 100.0000 0.000 0.00 163.33 0.00 10/20/04 10/21/2004 SEC ID:99426U523 10/21/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF0751 1102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 01.710%10/22/2004 DD 10/22/2004 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 10/21/04 10/22/2004 SEC ID:99426V885 BROKER: LEHMAN GOVT SECS INC, NY 10/22/2004 OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.710%10/22/2004 DD 10/22/2004 100.0000 0.000 0.00 166.25 0.00 10/21/04 10/22/2004 SEC ID:99426V885 BROKER: LEHMAN GOVT SECS INC, NY 10/22/2004 OCSF0751 1102:LIQUID OPER-PIMCO S LEHMAN BROTHERS REPO 01.700% 10/25/2004 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 10/25/2004 DD 10/22/04 10/25/2004 SEC ID:99426X287 BROKER: LEHMAN GOVT SECS INC, NY 10/25/2004 OCSF0751 1102:LIQUID OPER-PIMCO IS LEHMAN BROTHERS REPO 01.700% 10/25/2004 100.0000 0.000 0.00 495.83 0.00 10/25/2004 DD 10/22/04 10/25/2004 SEC ID:99426X287 BROKER: LEHMAN GOVT SECS INC, NY 10/25/2004 OCSF0751 1102:LIQUID OPER-PIMCO S CREDIT SUISSE FB REPO 01.7009/6 10/26/2004 10/26/2004 100.0000 -3,500,000.000 -3,500,000.00 3,500,000.00 0.00 DD 10/25/04 10/26/2004 SEC ID:99426Y814 BROKER: CREDIT SUISSE FIRST BOSTON 10/26/2004 CORP,N Y OCSF0751 1102:LIQUID OPER-PIMCO 11/8/2004 2:12:30PM PST Workbench 18 Transaction Detail Report ID: EWBO09' @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DM12 C1[ILI U0000000 10/1/2004 - 10/29/2004 Status: FINAL -q V!7; 04 X-1 1W ..,, r �jk.z" �Vffiffis IS CREDIT SUISSE FB REPO 01.700%10/26/2004 10/26/2004 100.0000 0.000 0.00 165.28 0.00 DD 10/25/04 10/26/2004 SEC ID:99426Y814 10/26/2004 BROKER: CREDIT SUISSE FIRST BOSTON CORP,N Y OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.680%10/27/2004 DD 10/27/2004 100.0000 -2,500,000.000 -2,500,000.00 2,500,000.00 0.00 10/26/04 10/27/2004 SEC ID:99427A1 12 10/27/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 01.680%10/27/2004 DD 10/27/2004 100.0000 0.000 0.00 116.67 0.00 10/26/04 10/27/2004 SEC ID:99427AI.12 10/27/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.710%10/28/2004 DD 10/28/2004 100.0000 -2,500,000.000 -2,500,000.00 2,500,000.00 0.00 10/27/04 10/28/2004 SEC ID:9942713888 10/28/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.710%10/28/2004 DD 10/28/2004 100.0000 0.000 0.00 118.75 0.00 10/27/04 10/28/2004 SEC ID:9942713888 10/28/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO S LEHMAN CAT 2 REPO 0 1.740%10/29/2004 DD 10/29/2004 100.0000 -2,500,000.000 -2,500,000.00 2,500,000.00 0.00 10/28/04 10/29/2004 SEC ID:99427DO09 10/29/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO IS LEHMAN CAT 2 REPO 0 1.740%10/29/2004 DD 10/29/2004 100.0000 0.000 0.00 120.83 0.00 10/28/04 10/29/2004 SEC ID:99427DO09 10/29/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07511102:LIQUID OPER-PIMCO 111812004 2:12:30PM PST Workbench 19 Transaction Detail Report ID: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DCM 0 00 0=0000 10/1/2004 - 10/29/2004 Status- FINAL j��4 6-M'a"teRA -------- M A Rv� r.i�R-flw% 0 TA ur- rr S DREYFUS TREASURY CASH MGMT 10/6/2004 1.0000 -93,499.750 -93,499.75 93,499.75 0.00 SEC ID:996085247 10/6/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/6/2004 S DREYFUS TREASURY CASH MGMT 10/7/2004 1.0000 -98,488.580 -98,488.58 98,488.58 0.00 SEC ID:996085247 10/7/2004 OCSF07511102:LIQUID OPER-PIMCO 10/7/2004 S DREYFUS TREASURY CASH MGMT 10/8/2004 1.0000 -83,863.020 -83,863.02 83,863.02 0.00 SEC ID-.996085247 10/8/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/8/2004 S DREYFUS TREASURY CASH MGMT 10/12/2004 1.0000 -2,999,440.000 -2,999,440.00 2,999,440.00 0.00 SEC ID:996085247 10/12/2004 OCSF07511102:LIQUID OPER-PIMCO 10/12/2004 S DREYFUS TREASURY CASH MGMT 10/14/2004 1.0000 -1,099,909.220 -1,099,909.22 1,099,909.22 0.00 SEC ID:996085247 10/14/2004 OCSF07511102:LIQUID OPER-PIMCO 10/14/2004 S DREYFUS TREASURY CASH MGMT 10/15/2004 1.0000 -6,093.400 -6,093.40 6,093.40 0.00 SEC ID:996085247 10/15/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/15/2004 S DREYFUS TREASURY CASH MGMT 10/19/2004 1.0000 -99,837.560 -99,837.56 99,837.56 0.00 SEC ID:996085247 10/19/2004 OCSF07511102:LIQUID OPER-PIMCO 10/19/2004 S DREYFUS TREASURY CASH MGMT 10/22/2004 1.0000 -152,918.560 -152,918.56 152,918.56 0.00 SEC ID:996085247 10/22/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/22/2004 S DREYFUS TREASURY CASH MGMT 10/27/2004 1.0000 -680,092.780 -680,092.78 680,092.78 0.00 SEC ID:996085247 10/27/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/27/2004 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR: -98,414,142.870 -98,327,328.73 98,359,765.55 0.00 111812004 2:12:30PM PST Workbench 20 Transaction Detail Report M: EVM009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATED=2DDD0D000110D 10/1/2004 - 10/29/2004 Status: FINAL Ivan TOTAL CASH&CASH EQUIVALENTS BASE: -98,414,142.870 -98,327,328.73 98,359,765.55 0.00 FIRED INCOME SECURITIES U.S. DOLLAR S COMMIT TO PUR FNMA SF MTG 5.000% 10/15/2004 102,0820 -22,000,000.000 -22,381,562.50 22,458,046.86 76,484.36 10/01/2019 DD 10/01/04 10/19/2004 SEC ID:0 IF0504AI. 10/15/2004 BROKER: UBS SECURITIES LLC,NEW YORK OCSF07522202:LONGTERM OPER-PIMCO S COMMIT TO PUR FNMA SF MTO 5.500% 10/12/2004 101.8047 -3,000,000.000 -3,041,894.53 3,054,140.62 12,246.09 10/01/2034 DD 10/01/04 10/14/2004 SEC ID:0 1170526A5 10/12/2004 BROKER: GOLDMAN SACHS&CO, NY OCSF07522202:LONGTERM OPER-PIMCO S COMMIT TO PUR FNMA SF MTO 5.500% 10/12/2004 101.7422 -1,000,000.000 -1,013,964.84 1,017,421.87 3,457.03 10/01/2034 DD 10/01/04 10/14/2004 SEC ID:01FD526A5 10/12/2004 BROKER: LEHMAN GOUT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO S U S TREASURY NOTES 1.875-/.01/31/2006 DD 10/5/2004 99.3477 -50,000,000.000 -49,973,541.98 49,673,828.12 -299,713.86 01/31/04 10/6/2004 SEC ID:912828BX7 10/5/2004 BROKER LEHMAN GOUT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO IS U S TREASURY NOTES 1.875%01/31/2006 DD 10/5/2004 99.3477 0.000 0.00 170,686.14 0.00 01/31/04 10/6/2004 SEC ID:912828BX7 10/5/2004 BROKER LEHMAN GOUT SECS INC, NY OCSF07522202:LONGTERM OPER-PIMCO S U S TREASURY NOTES 1.875%01/31/2006 DD 10/5/2004 99.3477 -11,000,000.000 -10,994,179.23 10,928,242.19 -65,937.04 01/31/04 10/6/2004 SEC ID:9 1282 8BX7 10/5/2004 BROKER: LEHMAN GOVT SECS INC, NY OCSF07522202:LONG TERM OPER-FIMCO 111812004 2:12:30PM PST Workbench 21 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DM2 0 00 00000000 10/1/2004 - 10/29/2004 Status: FINAL X;t ..,4 -�r.-..tt�M�Z��_`' _�.r:;» .,x:;� •+!.-ic.,'-t' i�a. :=f � J '}x• y�•^" :x' 2YYs� _t-'-�ss?,'4 1 `r��t�,. � � r> � �kf ry�t'.. si?. IS U S TREASURY NOTES 1.8750/601/31/2006 DD 10/5/2004 99.3477 0.000 0.00 37,550.95 0.00 01/31/04 10/6/2004 SEC ID;912828BX7 10/5/2004 BROKER: LEHMAN GOVT SECS INC,NY OCSF07522202:LONGTERM OPER-PIMCO S U S TREASURY NOTES 1.625%02/28/2006DD 10/6/2004 98.9375 -17,000,000.000 -17,045,156.25 16,819,375.00 -225,781.25 02/29/04 10/7/2004 SEC ID:912828CB4 10/6/2004 BROKER:BEAR STEARNS&CO INC,NY OCSF07522202:LONG TERM OPER-PIMCO IS U S TREASURY NOTES 1.6250/o02/28/2006DD 10/6/2004 98.9375 0.000 0.00 28,235.50 0.00 02/29/04 10/7/2004 SEC 11);912828CB4 10/6/2004 BROKER: BEAR STEARNS&CO INC,NY OCSF07522202:LONGTERM OPER-PIMCO S U S TREASURY NOTES 2.250%04/30/2006 DD 10/6/2004 99.6861 -33,000,000.000 -32,835,000.00 32,896,413.00 61,413.00 04/30/04 10/8/2004 SEC ID:912828CFS 10/6/2004 BROKER: BEAR STEARNS&CO INC,NY OCSF07522202:LONG TERM OPER-PIMCO IS US TREASURY NOTES 2.2 50%04/30/2006 DD 10/6/2004 99.6861 0.000 0.00 324,843.75 0.00 04/30/04 10/8/2004 SEC ID:912828CF5 10/6/2004 BROKER: BEAR STEARNS&CO INC,NY OCSF07522202:LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR., -137,000,000.000 -137,285,299.33 137,408,784.00 -437,831.67 TOTAL FIXED INCOME SECURITIES BASE: -137,000,000.000 -137,285,299.33 137,408,784.00 -437,831.67 TOTAL SALES BASE: -235,414,142.870 -235,612,628.06 235,768,549.55 -437,831.67 PRINCIPAL PAYMENTS FIXED INCOME SECURITIES U.S. DOLLAR 111812004 2:12:30PM PST Workbench 22 EZ i{oaag3jj0AI ,LSd Nd0F Zf Z b00Z/8/f I b00Z/I/OI OOWId-2d3dO MZIONO'I:ZOZZZSL09SOO b00Z/T/Oi 917,l ILEI£:QI 03S EO/IO/I I QQ Lb'SLT- 0£'969'£i LL'OLS'£T- 00£'969'£i- 0000'00T b00Z/T/01 STOZ/TO/ZI%000'S L86bSZO#100d VWNd Qd b006/I/01 0OWId-HZd0 W SI DN0'T:ZOZZZSLOdSOO b00Z/T/Oi TZ3'ITL£T£:QI O3S £0/i0/Oi QQ 8£'IS- 8T'OTO'b 92'I90'17- 081'0I0`b- 0000'001 b00Z/I/0I 8TOZ/10/11%000'9 E96bSZ0#'I00d VWN9 ad b00Z/T/OI OOWId-NSW M31 JNO'I:ZOZZZSL0dSO0 b00Z/i/OI £HO'I TL£T£:QI03S £0/10/80 QQ SL'SZ- bb'6S8 ZZ'S88- Obb'698- 0000'001 b00Z/1/01 STOZ/10/60%000'9 998b9Z0#'I00d VWN3 ad b00Z/I/OT OOM-H3W M31ON0'I:Z06ZZ9L0dSO0 b00Z/T/O T 6ASN I L£I£:�038 EO/i0/SO Qa 89'L9- 00'9SZ'Z 89'£Z£'Z- 000'9SZ'Z- 0000'001 b00Z/1/01 8IOZ./I0/90%000'S 09LbSZO#'100d VWNJ ad b00Z/T/OT OOWId-SSWMaL`JNO'I:ZOZZZSLOASOO b00Z/T/OT L-.AXIL£I£:QI 03S £0/TO/TO Q4 OE'LL- ZL'9LS'Z ZO'bS9'Z- OZL'9LS'Z- 0000'001 b00Z/T/0T 8I0Z/T0/Z0%000'9 T£9bSZO#'IOOd VWNA ad b00Z/T/OT OOWId-NEdO K83.L0N0'I:ZOZZZ9L03SO0 b00Z/i/Oi MMX TL£T£:QI 03S ZO/i0/Oi QQ 617'1Z£- bb'9TL'Oi £6'LEO'IT- Obb'91L'OT- 0000*001 b00Z/1/01 LTOZ/TO/11%000'9 OISbSZO#'IOOd VWN3 ad b00Z/i/OT OOM-S3d0 W2I31ONO'I:ZOZZZSLO.dSOO b00Z/i/OT £ZMS8b£T£:QIO2S L6/10/ZI QQ Zb'b bZ'TSi Z.8'9Li- ObZ'I8i- 0000'001 b00Z/i/OI SZOZ/TO/IO%b8E'9 ti909-8L#dnoao OW'IH3 Qd b00Z/T/OT OOWId-N3d0 MaL DWI:ZOZZZSL09SOO b00Z/I/OI S630,LE£i E:QI 03S L6/TO/Z T QQ Z£OZ/ST/80 Zb'LI- Ob'8b£'9T Z8'S9£'9I- OOb'Sb£'9T- 0000'001 170001/0T IN IIVA V M NZS O,LW SSV'IOIl-InW 0W'IH3 ad bOOZ/i/OT 0OWId-N2d0 M310N0'I:Z0ZZZ9L0dSO0 E30866Z0£:4103S bOOZ/I/OT 66/TZ/01 Ga O£OZ/10/ZT Z6'LT T6'bZS 66'908- 016'bZ8- 0000'001 bOOZ/I/OT %DOS'L OST TT-000#3JIVd NOO.LNfIH/dWM ad =:t�seg '� :• as H � �tk -�_� - -� :� _,.. �' s �'�.dosta �� +�a ��pa ' odags �:�r �,;,x... o d�sasaQ ad4L ..r*�.a 6; ti`. � ,g,..a�� ci::.,f"" •t....i_ ....+.-x: �`4-+;.h..�,.. r- .:lea f^7 .��+♦_,.f�."�7�'.x�$:.�,rc, :.y;.�:.:fir+ �''�. �; -s.��.,• t ±:� eMT _'g;-r,. t' ':F�.f�p - ,� `.�,.,..$ .r,, +:`•S, � e!7^-?%�'t�±.3':� 7.c t',_ .31E W"..t..,,,�` r. 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'"��,.,• r?" � -f �N•: \L.•OP .si .9,.-t*."r.. i4S.. c^'•Fs •:r. ;3 r 'z+. /� n�€�`•'J �.C?}i`, ;�rY. ,} ixt+ '$ :4`..,} FI VMq C81;ln$ 1000Z/6Z/OT - VOOZ/T/Oi ❑❑❑❑❑❑❑❑❑❑❑�aSIVCIIZOSNOo-GSOO asn :Sauaisn0 ages dsollop3 uopousu8ij,Aq popodag HM3 :aj IpodoU jFs;aQ uoT:10138u8.i1, uQlla Transaction Detail Report ED: EVM009 D E7 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DME2 0 DO OOODOFJO0 10/1/2004 10/29/2004 Status: FINAL IN, c6d da PD FNMA POOL40555621 5.000%07/01/2018 10/1/2004 100.0000 -15,429.260 -15,602.84 15,429.26 -173.58 DD 06/01/03 10/1/2004 SECID:31385XG68 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0681309 5.000%02/01/2018 10/1/2004 100.0000 -10,385.010 -10,696.56 10,385.01 -311.55 DD 02/01/03 10/1/2004 SEC ID:31391Y3S4 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOLO0681334 5.000%02/01/2018 10/1/2004 100.0000 -814.220 -838.65 814.22 -24.43 DD01/01/03 10/1/2004 SEC ID:31391Y4T1 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA GTD REMIC P/T 02-76 PD 5.000% 10/1/2004 100.0000 -135,344.850 -138,051.75 135,344.85 -2,706.90 08/25/2022 DD 10/01/02 10/1/2004 SEC ID:31392FKF3 10/1/2004 OCSF07522202:LONGTERM OPER-PEMCO PD FNMA POOL#0684908 5.000%06/01/2018 10/1/2004 100.0000 -4,144.330 -4,197.43 4,144.33 -53.10 DD 05/01/03 10/1/2004 SEC ID:31400D3R1 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0685200 5.000%03/01/2018 10/1/2004 100.0000 -3,261.940 -3,303.73 3,261.94 -41.79 DD 03/01/0 3 10/1/2004 SEC 1D:31400EGH7 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD FNMA POOL#0685665 5.000%02/01/2018 10/1/2004 100.0000 -463.240 -477.14 463.24 -13.90 DD 02/01/03 10/1/2004 SEC ID:31400EW22 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD FNMA POOLO0686318 5.000%03/01/2018 10/1/2004 100.0000 -1,874.830 -1,931.07 1,874.83 -56.24 DD 03/01/03 10/1/2004 SEC ID:31400FPB7 10/1/2004 OCSF07522202:LONGTERM OPER-PEMCO PD FNMA POOL#0688739 5.000%06/01/2018 10/1/2004 100.0000 -500.610 -515.63 500.61 -15.02 DD 06/01/03 10/1/2004 SEC ID-31400JEL9 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 25 Transaction Detail Report m: EWB009 Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE DIM 000❑❑0❑DODD 10/1/2004 - 10/29/2004 Status: FINAL ...-.... ., .;� �.•c'7d?lt". )).,`,•k,_ ,y �p�yyy• :.r refi°'�T�x {�.y.. ^J✓ y '�£ '2,t 3y-�''-..� ,,y ,y,..,n•-. .;:� _ •CIF. :£ ..£, fi... .., .;,.t :,.A' � 'pn' nt it;;{; � j � a?a,. j�,t.;'t- ,t�,bb , ai' e.'';v '°'i`f- y ;kt;•�s-.�'... �r. na�t�3f;� e. � ;.tfft:✓.-.�t?t. _`�T.�+ �.�',. „ .l,..y,CiP E �kJ �� "-i -y. 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V•A{S j'if ,TS'. •et�:_ t,s.�t:i,`�r• ,:�,».,.. + .,.`� .s:e:,.. .max: x .as..,_...t.t.....�a,-.t7' ,I:.,r,,r, .»�a; >aiixs, a�tx..ic ..,�a...a.:''i�'7'�sr�i'��Q� p�Jr`��'�-�:3 ',..c�;tk.r�..d. i..,.r<fi. x€:�� .�e>�:. .rrs;:.: Wxl3 gs tpOOZ/6Z/0I tO OZ/T/01 ❑❑❑❑❑❑❑❑❑❑❑ZMa 3LV atIO SNOO-Cl Qui asa :Soua=3 ass xo2ap3 uopousuaf,Aq papodag U01jaW =600M U840Q u0pausulux Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATED=0 0000000000 10/1/2004 - 10/29/2004 Status: FINAL ,wi -z; !MTfAd ::.: DIV n, PD FNMA POOL#0723487 5.000%06/01/2018 10/1/2004 100.0000 -953.180 -963.90 953.18 -10.72 DD 06/01/03 10/1/2004 SEC ID:31402AXQ4 10/1/2004 0CSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL#0729601 5.000%07/01/2018 10/1/2004 100.0000 -6,982.740 -7,072.21 6,982.74 -89.47 DD 07/01/03 10/1/2004 SEC ID:31402HRW3 0CSF07522202:LONGTERM OPER-PIMCO 10/1/2004 PD FNMA POOL#0732873 5.000%11/01/2018 10/1/2004 100.0000 -135.080 -136.81 135.08 -1.73 DD 10/01/03 10/1/2004 SEC ID:31402MF7q5 0CSF07522202:LONGTERM OPER-PIMCO 10/1/2004 PD FNMA POOL#0737130 5.000%10/01/2018 10/1/2004 100.0000 -44,436.270 -45,005.61 44,436.27 -569.34 DD 10/01/03 10/1/2004 SEC ID:31402S4P9 10/1/2004 0CSF0752 2202:LONGTERM OPER-PIMCO PD FNMA POOL#0738211 5.000%10/01/2018 10/1/2004 100.0000 -2,451.500 -2,482.91 2,451.50 -31.41 DD 10/01/03 10/1/2004 SEC ID:31402UDQ2 10/1/2004 0CSF07522202:LONGTERM OPER-PIMCO PD FNMA POOL 40738487 5.000%10/01/2018 10/1/2004 100.0000 -2,975.170 -3,013.29 2,975.17 -38.12 DD 10/01/03 10/1/2004 SEC ID:31402UNC2 10/1/2004 OCSF07522202:LONGTERM OPER-P[MCO PD FNMA POOL40740471 5.000%10/01/2018 10/1/2004 100.0000 -2,901.430 -2,938.60 2,901.43 -37.17 DD 10/01/03 10/1/2004 SEC ID:31402Wr4O 10/1/2004 0CSF0752 2202:LONGTERM OPER-PlMCO PD FNMA POOL#0740748 5.000%10/01/2018 10/1/2004 100.0000 -3,439.480 -3,483.55 3,439.48 -44.07 DD 11/01/03 10/1/2004 SEC ID:31402WSH7 10/1/2004 0CSF0752 2202:LONGTERM OPER-PIMCO PD FNMA POOL#0743868 5.000%11/01/2018 10/1/2004 100.0000 -850.440 -861.34 850.44 -10.90 DD 10/01/03 10/1/2004 SEC ID:31403BMR 1 10/1/2004 0CSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 28 Transaction Detail Report ED: EVM009 @ Mellon Reported by Transaction Category Base Currency- USD OCSD-CONSOLI DATE DU=0 110 0000CDOD 10/1/2004 - 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10/29/2004 Status: FINAL 4T PD GNMA POOL#0480598 6.5000/. 10/15/2028 10/1/2004 100.0000 -38.560 -40.41 38.56 -1.85 DD 10101/98 10/1/2004 SEC ID:36209S3Fb 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD GNMA POOL#05 12235 6.5009/o 11/15/2029 10/1/2004 100.0000 -12.370 -12.98 12.37 -0.61 DD 11/01/99 10/1/2004 SEC ID:36211 GBC6 10/1/2004 OCSF07522202:LONGTERM OPER-PEMCO PD GNMA POOL#0514326 6.5000/o07/15/2029 10/1/2004 100.0000 -350.960 -367.80 350.96 -16.84 DD 07/01/99 10/1/2004 SEC ID:36211 JLF2 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD GNMA If POOL 40080023 VAR RT 12/20/2026 10/1/2004 100.0000 -4,178.500 -4,247.71 4,178.50 -69.21 DD 12/01/96 10/1/2004 SEC ID:36225CAZ9 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD GNMA 11 POOL#080088M 7.375%06/20/2027 10/1/2004 100.0000 -8,674.030 -8,863.77 8,674.03 -189.74 DD 06/01/97 10/1/2004 SEC ID:36225CC20 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO PD GNMA 11 POOL#0080395 VAR RT 04/20/2030 10/1/2004 100.0000 -8,382.280 -8,306.32 8,382.28 75.96 DD 04/01/00 10/1/2004 SEC ID:36225CNM4 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD GNMA 11 POOL#080408X 6.500%05/20/2030 10/1/2004 100.0000 -49,005.680 -48,507.97 49,005.68 497.71 DD 05/01/00 10/1/2004 SECID:36225CN28 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD GNMA 11 POOL#0080900 VAR RT 05/20/2034 10/1/2004 100.0000 -2,930.860 -2,851.64 2,930.86 79.22 DD 05/01/04 10/1/2004 SEC ID:36225DAA2 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO PD GNMA 11 POOL#0080965 VAR RT 07/20/2034 10/1/2004 100.0000 -9,582.510 -9,576.52 9,582.51 5.99 DD 07/01/04 10/1/2004 SEC ID:36225DCB8 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 31 Transaction Detail Report ID: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE Da=DOD❑❑❑❑❑❑❑❑ 10/1/2004 - 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PD GNMA GTD REMIC TR 2000-9 FH VAR RT 10/16/2004 100.0000 -13,509.440 -13,509.44 13,509.44 0.00 02/16/2030 10/16/2004 SEC ID:3837H4NX9 OCSF07522202:LONGTERM OPER-PIMCO 10/16/2004 PD RESIDENTIAL ASSET 03-RSI 1 AUB VAR RT 10/25/2004 100.0000 -35,564.470 -35,564.47 35,564.47 0.00 12/25/2033 DD 12/30/03 10/25/2004 SEC ID:760985K83 OCSF07522202:LONGTERM OPER-PIMCO 10/25/2004 TOTAL FIRED INCOME SECURITIES U.S.DOLLAR -712,674.120 -724,012.62 712,674.12 -11,338.50 TOTAL FIRED INCOME SECURITIES BASE: -712,674.120 -724,012.62 712,674.12 -11,338.50 TOTAL PRINCIPAL PAYMENTS BASE: -712,674.120 -724,012.62 712,674.12 -11,338.50 MATURITIES CASH&CASH EQUIVALENTS U.S. DOLLAR MT WELLS FARGO BANK NA INSTL C/D 1.650% 10/7/2004 100.0000 -1,100,000.000 -1,100,000.00 1,100,000.00 0.00 10/07/2004 DD 09/09/04 10/7/2004 SEC ID:9497P1BU2 10/7/2004 OCSF07511102:LIQUID OPER-PIMCO MT WELLS FARGO BANK NA INSTL C/D 1.600% 10/4/2004 100.0000 -2,200,000.000 -2,200,000.00 2,200,000.00 0.00 10/04/2004 DD 08/30/04 10/4/2004 SEC ID:9497P1CL1 10/4/2004 OCSF0751 1102:LIQUID OPER-PIMCO TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR -3,300,000.000 -3,300,000.00 3,300,000.00 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: -3,300,000.000 -3,300,000.00 3,300,000.00 0.00 FIRED INCOME SECURITIES U.S. DOLLAR 111812004 2:12:30PM PST Workbench 32 , Transaction Detail Report ID: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE D=O 0 D 11111:11311 E100 10/1/2004 10/29/2004 Status: FINAL �}!��3�i-'y+u•* -r,�yt;s. .wl .�;; :�. {.�,a%.�. Y�'�;�'c. S� -.:i.. •.i�V. � r— :�iGa�{ �Ii' i T � � "!� �-tr�;!' _gi � t.7 i!_�:..•:kl' "z st•` s'�b7 NIT DU PONT El DE NEMOURS 8s CO NT 6.750% 10/15/2004 100.0000 -1,575,000.000 -1,589,663.25 1,575,000.00 -14,663.25 10/15/2004 DD 10/20/99 10/15/2004 SEC ID:263534BH1 10/15/2004 OCSF07511102:LIQUID OPER-PIMCO NIT PACIFICORP SECD MTN#TR 00115 7.300% 10/22/2004 100.0000 -3,000,000.000 -2,950,530.00 3,000,000.00 49,470.00 10/22/2004 DD 10/22/92 10/22/2004 SEC ID:69512EEU5 10/22/2004 OCSF0752 2202-.LONG TERM OPER-PIMCO TOTAL FIXED INCOME SECURITIES U.S. DOLLAR: -4,575,000.000 -4,540,193.25 4,575,000.00 34,806.75 TOTAL FIXED INCOME SECURITIES BASE: -4,575,000.000 -4,540,193.25 4,575,000.00 34,806.75 TOTAL MATURITIES BASE: -7,875,000.000 -7,840,193.25 7,875,000.00 34,806.75 INTEREST CASH&CASH EQUIVALENTS U.S.DOLLAR IT WELLS FARGO BANK NA INSTL C/D 1.650% 10/7/2004 1,100,000.000 1,411.67 1,411.67 0.00 10/07/2004 DD 09/09/04 10/7/2004 SECID.9497PIBU2 10/7/2004 OCSF07511102:LIQUID OPER-PIMCO IT WELLS FARGO BANK NA INSTI,C/D 1.600% 10/4/2004 2,200,000.000 3,422.22 3,422.22 0.00 10/04/2004 DD 08/30/04 10/4/2004 SEC ID:9497P1CL1 10/4/2004 OCSF07511102:LIQUID OPER-PIMCO CW SHORT TERM FDS INT ADJ NET OF 10/29/2004 0.000 -1,070.00 -1,070.00 0.00 OVERNIGHT INTEREST 10/29/2004 SEC ID:990000PJ4 10/29/2004 OCSF07511102:LIQUID OPER-PIMCO IT DREYFUS TREASURY CASH MGMT 10/5/2004 0.000 1,252.03 1,252.03 0.00 SEC ID:996085247 10/1/2004 OCSF07522202:LONGTERM OPER-PIMCO 10/5/2004 111812004 2:12:30PM PST Workbench 33 Transaction Detail Report ID: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCS D-CONSOLI DATE DGM 0 110 DOD00000 10/1/2004 - 10/29/2004 Status: FINAL IT DREYFUS TREASURY CASH MGMT 10/5/2004 0.000 2,902.53 2,902.53 0.00 SEC ID:996085247 10/1/2004 OCSF07511102:LIQUID OPER-PIMCO 10/5/2004 TOTAL CASH&CASH EQUIVALENTS U.S. DOLLAR. 3,300,000.000 7,918.45 7,918.45 0.00 TOTAL CASH&CASH EQUIVALENTS BASE: 3,300,000.000 7,918.45 7,918.45 0.00 FIXED INCOME SECURITIES U.S.DOLLAR IT DU PONT El DE NEMOURS&CO NT 6.750% 10/15/2004 1,575,000.000 53,156.25 53,156.25 0.00 10/15/2004 DD 10/20/99 10/15/2004 SEC ID:263534BHI 10/15/2004 OCSF07511102:LIQUID OPER-PIMCO IT WMP/HUNTOON PAIGE#000-11150 7.500% 10/1/2004 819.190 5,872.29 5,872.29 0.00 12/01/2030 DD 10/21/99 9/1/2004 SEC ID:302998GE3 10/1/2004 OCSF07522202:LONG TERM OPER-PIMCO IT WMP/HUNTOON PAIGE#000-11150 7.500% 10/28/2004 824.910 5,867.17 5,867.17 0.00 12/01/2030 DD 10/21/99 10/1/2004 SEC ID:302998GE3 10/28/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FHLMC MULTICLASS MTG SER E3 A VAR RT 10/15/2004 23,472.900 2,704.11 2,704.11 0.00 08/15/2032 DD 12/01/97 9/1/2004 SEC ID:3133TCE95 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FHLMC GROUP#78-6064 6.384%01/01/2028 10/15/2004 2,548.610 185.78 185.78 0.00 DD 12/01/97 9/1/2004 SEC ID:31348SWZ3 10/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FNMA POOL#0254510 5.000%11/01/2017 10/25/2004 10,716.440 2,893.23 2,893.23 0.00 DD 10/01/02 10/1/2004 SEC ID:31371 KVI34 10/25/2004 OCSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 34 1 S£ ipuaq:yloM 13d INdOC Z I:Z b00Z/S/l I b00Z/SZ/OT OOMd-83dO M31ONOI:ZOZZ ZSLOASOO b00Z/i/OT Z.LOOISET E:al 03S 66/10/ZO as 00'0 8b'SZZ 8b'SZZ ObL'Lb8'Z b00Z/SZ/0I tIOZ/10/ZO%000'9 Z8b99b0#1OOd VWNq LI b00Z/SL/O1 OOMd-2I3dO M31 DNO l:ZOZZZSLOdSOO b00Z/T/Oi TLVN9L£TE:alO3S £O/TO/60 Qa 00'0 OT'LSS'S OT'LSS'S 068'Z8L'bZ b00Z/SZ/01 8IOZ/10/60%000'S OEbLS£0#1OOd VWN3 LI b00Z/SZ/Oi OOWId-213dO M3.L ONO1:ZOZZ ZSLOASOO b00Z/i/OT SWbf'9LET£:al O3S £0/TO/TO as 00'0 b9'901 b9'9O1 09£'8Lb b00Z/SZ/0I 8TOZ/T0/TO%000'S 8ZELS£0#'1OOd VWNd ZI b00L/SZ/OT OOWId-83dO M31ONOl:ZOZZZSL03SOO b00Z/I/OT OWU17LE1E:al O3S 66/10/60 as 00'0 19'18L 19'18L OST'bb8'£ b00Z/SZ/01 bIOZ/TO/b0%000'9 086EZ£O#1O0d VWN3 ,LI b00Z/SZ/OT OOWId-83dO M3,LDNO'I:ZOZZZSL03SOO b00Z/i/OI 9bd'I ILEIE:al 03S £0/IO/I I as 00'0 £L'£09'£ £L'£09'£ 00£'969'£T b00Z/SZ/01 8IOZ/10/ZT%000'S L8617SZO#1OOd VWNd �l b00Z/SZ/01 00Pld-HZdO M31 ONO'I:ZOZZZSL03SOO b00Z/i/0i 1Z311LEI£:GI O3S £0/10/0I as 00'0 8I'9Z£'i 8I'9Z£'I 081'010'b b00Z/SZ/01 8TOZ/TO/TT%000'S E96bSZO#1O0d VWN8 Zl b00Z/SZ/OI OOMd-S3dO MR1 ONO'I:ZOZZZSLOASOO b00Z/T/OI ET3OIILETE:al MS EO/TO/80 Qa 00'0 I8'0SZ 18'09Z Ob17'698 b00Z/SZ/01 8IOZ/T0/60%000'S 998bSZO#1OOd VWNJ ZI b006/SZ/OT O3WId-213dO M31 ONOl:ZOZZZSL03SOO b00Z/I/0 T 6AS)l I LE T E:al O3S £0/TO/SO as 00'0 89'£SS 89'£SS 000'9SZ'Z b00Z/SZ/01 81OZ/T0/90%000'S 09LbSZO#'00d VWN3 Zl b00Z/SZ/OT OOMd-d3dO M3.LONO'I:ZOZZZSLOdSOO b00Z/i/0T Lt,AX IL£I£:al 03S £0/TO/TO Qa 00'0 19'ZZ9 19'ZZ9 OZL'9LS'Z b00Z/SZ/01 81OZ/T0/ZO%000'S lE917SZO#1O0d VWN3 LI aqua - 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'L Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLIDATE DaU2 0 00 00000❑CO 10/1/2004 - 10/29/2004 Status: FINAL �Nab` IT FNMA POOL#0697026 5.000%05/01/2018 10/25/2004 484.010 92.05 92.05 0.00 DD 04/01/03 10/1/2004 SEC ID:3140OTLF2 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL40702210 5.000%05/01/2018 10/25/2004 1,474.320 876.24 876.24 0.00 DD 05/01/03 10/1/2004 SEC ID:31401ADP9 10/25/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FNMA POOL#0702328 5.000%05/01/2018 10/25/2004 1,955.760 541.41 541.41 0.00 DD 04/01/03 10/1/2004 SEC ID-31401AHD2 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0709148 5.000%06/01/2018 10/25/2004 1,891.100 1,102.84 1,102.84 0.00 DD 06/01/03 10/1/2004 SEC ID:31401 HZM7 10/25/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FNMA POOL#0709360 5.000%07/01/2018 10/25/2004 16,381.090 2,584.47 2,584.47 0.00 DD 06/01/03 10/1/2004 SEC ID:3140IJB56 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0709826 5.000%06/01/2018 10/25/2004 1,559.120 432.18 432.18 0.00 DD 06/01/03 10/1/2004 SEC ID:31401JSP4 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0709917 5.000%06/01/2018 10/25/2004 3,594.980 913.45 913.45 0.00 DO 06/01/0 3 10/1/2004 SEC ID:31401JVJ4 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO IT FNMA POOL#0709963 5.000%06/01/2018 10/25/2004 75.450 75.84 75.84 0.00 DD 06/01/03 10/1/2004 SEC ID:31401JWY0 10/25/2004 OCSF07522202:LONGTERM OPER-PIMCO IT FNMA POOL#0710235 5.000%06/01/2018 10/25/2004 4,462.920 2,428.40 2,428.40 0.00 DD 06/01/03 10/1/2004 SEC ID:31401103C8 10/25/2004 OCSF07522202:LONGTERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 38 6£ WuagX-joM ,LSd WdOC ZIZ POOZ/8/II b00Z/SZ/OT OOMd-2I3dOM3,LONO'i:ZOZZZSLOdS30 b00Z/T/O T 6d t'S ZOM C:CII 03S EO/TO/Oi QQ 00'0 9T'TOL'Z 9T'TOL'Z OLZ'9Eb•'t i, t OOZ;/SZ/0T STOZ/TO/OI%000'S OETL£LO#'IOOd VWN.d .LI b00Z/SZ/OT OOWId NSW K831 ON0'1:ZOZZZSLO,dSO0 b00Z/T/OI SNAWZObi£:Q1 OSS £0/TO/OT QQ 00'0 b6'8CT b6'S£T O80'S£T b00Z/SZ/01 8IOZ/TO/TT%000'S EL8Z£LO#100d VWN.d Z1 b00Z/SZ/OT OOMd-218dO M31ONO'I:ZOZZZSLOJSOO tiOOZ/T/OT £M2IHZObT£:QI OSS co/To/LO QQ 00'0 86'6Z9`1 S6'6Z9'T ObL'Z86'9 bOOZ/SZ/OI 8TOZ/TO/LO%000'S T096ZLO#'IOOd VWN.d LI b00Z/SZ/Oi OOMd-213dO KSSIONO'I:ZOZZZSLOdSOO b00Z/T/Oi tiaXVZOtiTE:QIOsS £0/TO/90 QQ 00'0 b8'IL6 b8'TL6 OST'ES6 b00Z/SZ/OT STOZ/IO/90%000'S L817EZLO#'I00d VWNS .LI b00Z/SZ/OT OOMd-SEdO KH31 JNO'I:ZOZZZSLOdSOO �OOZ/T/OT t,MAXTObi£:QIOZS £0/10/90 QQ 00'0 99'Z61'1 99'Z61'I 0£Z'909'Z b00Z/2Z/01 BTOZ/TO/LO%000'S 6Z91ZL0#'1O0d VWNd ZI b00Z/SZ/OT OOMd-S3dO YiSSL CJNO'I:ZOZZZSL03SO0 ONCMIOt,T£:QI 03S b00Z/1/01 co/To/90 QQ 00'0 88'8LS'8 88'8LS'8 09S'L6Z'6b b00Z/SZ/01 81OZ/T0/90%000'S 69£OZLO# IOOd VWN9 .LI b00Z/SZ/OT OOMd-NZdO M3,L ONCn;ZOZZZSLOdSO0 ti00Z/i/OI St,OMIObT£:QI OHS £01101LO QQ 00'0 Eb'95;6'Z £b'986'Z OOS'9bb'£ bOOZ/SZ/OT STOZ/TO/LO%000'S 61£0ZLO#7O0d VWN.d ,LI b00Z/SZ/OI OOWId-SadO MSL OMO'I:ZOZZZSL03SOO b00Z/i/OI TSaNTObT£:QIO3S £0/TO/LO QQ 00'0 90'890'T 90'890'T OtZ'6L8'b b00Z/SZ/OT STOZ/TO/LO%000'S 99££TLO#'1OOd VWN3 .LI VOOZ/SZ/OT OOMd-S3dO W2I2.I ONO'I:ZOZZZSL09SOO b00Z/T/O T Z SdM ME C:QI 03 S £0/10/90 QQ 00'0 ZZ'99 ZZ'99 OTZ'TL VOOZ/SZ/OT STOZ/TO/90%000'S bb£ETLO#'IOOd VWN,dcot LI Er, MR_ r"" ..Fga��T �?}} ��,.» Cr4•'i: C;YS� -i��Q •� �•.: d .. ......n .. ,3'('YaA. �... .K:. 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Tilt e. 0`§%��•,'��L<r,5- .j'..Ti-L.i.�:'-:;-?1.`.S.L'w'�!k.,{3�±�Tx'�.a�.{5.°.1r.,'io.{?':�.a}C 7 acf Y»l s.?:.-�L>Rs ji,�•'i.,'�a�7`.ta.,�e;z1�a•R. y•t.�Y...a• _:'•=`:, 'Ss .. .. �a. ...1.ye... , .�'�.+i�::M1:=`-,:.,.- 1v.. .`e� :'�i:1 �•si.�:'�s1;ak't�drr _��i •S.+L�#'r..Y.i�W-.->.,.:�..'�t�"'�-' �::�}�".fa�.:�i'�'v '...`4�Y'�Y....�_f'�rsr-'t'+. :`?i ii •�t 4L..�+fiYLr. >T ZvbII� 1OOOZ/bZ/OT - 11OOZ/T/0T ❑❑❑❑❑❑❑❑OOCZ=a3,LVQI'IOSNOO-aSOO asa :souamu3 asug faoBapo uoTjo8su8,zy Aq papodag U01jew 600sma :a>< �axt 11s4aQ uopousulu L Fe Transaction Detail Report ED: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D=0 00 000DE1000 10/1/2004 - 10/29/2004 Status:-FINAL • %mow 7;-V 41 IT GNMA POOL#0449851 6.5009/o01/15/2028 10/15/2004 39.500 108.01 108.01 0.00 DD 01/01/98 10/1/2004 SEC ID:36208FWL0 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA POOL#0466845 6.500-/.06/15/2028 10/15/2004 50.870 198.64 198.64 0.00 DD 06/01/98 10/1/2004 SEC ID:362093TA6 10/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA POOL#0468052 6.5000/.07/15/2028 10/15/2004 211.470 604.06 604.06 0.00 DD 07/01/98 10/1/2004 SEC ID:36209C5M4 10/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA POOL#0476041 6.500%06/15/2028 10/15/2004 7,954.720 836.12 836.12 0.00 DD 06/01/98 10/1/2004 SEC ID:36209MZE7 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA POOL#0478626 6.5009/601/15/2029 10/15/2004 186.220 656.38 656.38 0.00 DD 01/01/99 10/1/2004 SEC ID:36209QVT9 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA POOL#0480598 6.500-/. 10/15/2028 10/15/2004 38.560 156.49 156.49 0.00 DD 10/01/98 10/1/2004 SEC ID:36209S3F)6 10/15/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA POOL#0512235 6.500-/. 11/15/2029 10/15/2004 12.370 45.66 45.66 0.00 DD 11/01/99 10/1/2004 SEC ID:36211 GBC6 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA POOL 00514326 6.500%07/15/2029 10/15/2004 350.960 578.86 578.86 0.00 DD 07/01/99 10/1/2004 SEC ID:3 6211 JLF2 10/15/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA H POOL#0080023 VAR RT 12/20/2026 10/20/2004 4,178.500 670.11 670.11 0.00 DD 12/01/96 10/1/2004 SEC ID:36225CAZ9 10/20/2004 OCSF07522202:LONG TERM OPER-PEMCO 111812004 2:12:30PM PST Workbench 42 Transaction Detail Report M: EWB009 @ Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATED=0 110 0000013C0 10/1/2004 - 10/29/2004 Status: FINAL 'M hi ja W " m BIM IT GNMA 11 POOL#080088M 7.375%06/20/2027 10/20/2004 8,674.030 662.92 662.92 0.00 DD 06/01/97 10/1/2004 SECID:36225CC20 10/20/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA 11 POOL#0080395 VAR RT 04/20/2030 10/20/2004 8,382.280 556.52 556.52 0.00 DD 04/01/00 10/1/2004 SEC ID:36225CNM4 10/20/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA 11 POOL#080408X 6.500%05/20/2030 10/20/2004 49,005.680 5,011.39 5,011.39 0.00 DD 05/01/00 10/1/2004 SECID:36225CN28 10/20/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA U POOL#0080900 VAR RT 05/20/2034 10/20/2004 2,930.860 949.05 949.05 0.00 DD 05/01/04 10/1/2004 SECID:36225DAA2 10/20/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GNMA 11 POOL#0080965 VAR RT 07/20/2034 10/20/2004 9,582.510 4,068.21 4,068.21 0.00 DD 07/01/04 10/1/2004 SEC ID:36225DCB8 10/20/2004 OCSF07522202:LONGTERM OPER-PIMCO IT GOLDMAN SACHS GRP MTN#TR00194 VAR RT 10/27/2004 3,500,000.000 16,368.33 16,368.33 0.00 10/27/2006 DD 10/29/03 10/27/2004 SEC ID:38141 EJB6 10/27/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GOLDMAN SACHS GRP MTN#TR00207 VAR RT 10/25/2004 0.000 4,136.00 4,136.00 0.00 07/23/2009 DD 07/23/04 10/23/2004 SEC ID:38141F.JQ3 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO IT GNMA GTD REMIC TR 2000-9 FH VAR RT 10/18/2004 13,509.440 1,028.55 1,028.55 0.00 02/16/2030 10/16/2004 SEC ID:3837H4NX9 10/18/2004 OCSF07522202:LONGTERM OPER-PIMCO IT PACIFICORP SECD MTN#TR 00115 7.3000/6 10/22/2004 3,000,000.000 31,025.00 31,025.00 0.00 10/22/2004 DD 10/22/92 10/22/2004 SEC ID:69512EEU5 10/22/2004 OCSF07522202:LONG TERM OPER-PIMCO 111812004 2:12:30PM PST Workbench 43 Transaction Detail Report m: EWB009 / Mellon Reported by Transaction Category Base Currency: USD OCSD-CONSOLI DATE D=2❑00000❑❑O❑O 10/1/2004 - 10/29/2004 Status: FINpl, Cf may' }�w yN.^+'.... r- a� s .>.�.. ,,i. M•' .n+ w. t's�"f Marv. ;• �.�_ �� !.{x 5<,C...�„ .� �W,� ,�� y � ..` �� .��,- r �� ..��RX "�.•�»�: „lr �: =T - .rs'y� .»r F � �- `a' a-"'I��,,; '..F 1^ .•-.r �.-v � ire $ .'+^•, ••�i /'��! �.�.v s�.',C .. �a�'• `� ., '' a..� '�'� �� IS .Y, .1+u:.0 r. 'c.`. a„}!± �r.,a ,C•c L��f�� s * a, _ � �+....-...i... :.:,r rM��• -r �i� ..._1p1'wb�r�a ��....�t�. t� �� _ -j.Y't`r � �R .r � z• of . IT RESIDENTIAL ASSET 03-RSI 1 AIIB VAR RT 10/25/2004 35,564.470 1,323.63 1,323.63 0.00 12/25/2033 DO 12/30/03 10/25/2004 SEC ID:760985K83 10/25/2004 OCSF07522202:LONG TERM OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.375% 10/29/2004 0.000 7,700.00 7,700.00 0.00 01/15/2007 DD 01/15/97 SEC ID:9128272M3 10/29/2004 OCSF07522202:LONG TERM OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.625% 10/29/2004 0.000 1,620.00 1,620.00 0.00 01/15/2008 DD 01/15/98 SEC ID:9128273T7 10/29/2004 OCSF07522202:LONGTERM OPER-PIMCO CD US TREASURY INFLATION INDEX NT 3.8759/6 10/29/2004 0.000 6,890.00 6,890.00 0.00 01/15/2009 DD 01/15/99 SEC ID:9128274YS 10/29/2004 OCSF07522202:LONGTERM OPER-PIMCO TOTAL FIRED INCOME SECURITIES U.S. DOLLAR 8,797,985.180 270,827.91 270,827.91 0.00 TOTAL FIRED INCOME SECURITIES BASE: 8,797,985.180 270,827.91 270,827.91 0.00 TOTAL INTEREST BASE: 12,097,985.180 278,746.36 278,746.36 0.00 TOTAL TRANSACTIONS: -3,515,231.230 -15,362,975.46 15,806,048.59 -414,363.42 I1/8/2004 2:12:30PM PST Workbench 44 FAH R COMMITTEE Meeting Date To Bd. of Dir. 11/10/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-97 14(c) 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, 2004 THROUGH SEPTEMBER 30, 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file the Quarterly Investment Management Program Report for the period July 1 . 2004 through September 30, 2004. 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 District's adopted Investment Policy and the California Government 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. PROJECT/CONTRACT COST SUMMARY N/A 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) H TdepttagendaTFAHRTFAHR2 00411 1 04\04.97 Ortly Investment Report doc Revised 8/20198 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 Summary of Performance Data and Portfolio Statistics charts that depict the performance results, estimated yield and duration, credit quality, and sector diversification of the District's portfolios, as of July 1, 2004 and September 30, 2004. 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 District's portfolios as compared to their benchmarks for the period July 1 through September 30, 2004. Portfolio Performance Summary Quarter Ended September 30,2004 Liquid Operating Monies(%) Long-Term Operating Monies(%) Total Rate Total Rate of of Return Benchmark(" Return Benchmark"' 3 Months 0.35 0.32 1 56 1.69 6 Months 0.61 0.56 045 -0-05 9 Months 0.87 0.80 1 98 1.61 12 Months 1.13 1.04 2.22 1.75 Since inception 30 Sept 95 4.36 3.91 6.19 6.12 Market Value S72.8M S363.1 M Average Quality "AAA AAA" Current Yield(%) 1 9 3.5 Estimated Yield to Maturity(%) 1 8 3.1 Quarterly Deposits(Withdrawals) S(40 0)M S(31.0)M Estimated Annual Income Sl AM S12.5M (1) Benchmarks: • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Term Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and in the attached bar chart. Liquid Long-Term Quarter Operating Operating Ending Monies ISM) Monies($M) 31 Dec.03 91.4 386.8 31 Mar.04 91.6 392.7 30 June 04 112.4 388.4 30 Sept. 04 72.8 363.1 H WeptlagendaTAHR1FAHR2004t1 1 04104-97 Only Investment Report doc Revised 8/20198 Page 2 District's Investment Account Balances as of September 30, 2004 i Book Balances Estimated Investment Accounts September 30, 2004 Yield (%) State of Calif. LAIF $ 26,710,595 1.77 Union Bank Checking Account 1,739,035 1.47 PIMCO—Short-term Portfolio 72,521,951 1.80 PIMCO-Long-term Portfolio 360,837,599 2.97 Petty Cash 4,000 N/A TOTAL $461.813.180 2.71 Debt Service Reserves w/Trustees $ 62.476.515 3.05 ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. Historical Yield Curve Graph 2. PIMCO Quarterly Report 3. Quarter End Portfolio Market Value Bar Chart 4. Summary of Performance Data and Portfolio Statistics — Liquid Operating Monies 5. Summary of Performance Data and Portfolio Statistics — L-T Operating Monies 6. Investment Transactions and Balances in LAIF 7. Asset Summary by Asset Type — Liquid Operating Portfolio 8. Asset Summary by Asset Type — Long Term Portfolio 9. Investment Listing of Liquid Operating and L-T Portfolios (Yield Analysis Report). 10. Callan Report (separate bound document) 11. PIMCO Report (separate bound document) H.ldept4agenda\FAHR\FAHR2004%1 1 04504-97Artly Investment Report.doc Revised 8120/98 Page 3 P I M C 0 840 Newport Center Drive Suite 100 Newport Beach,CA 92660 Tel: 949.720.6000 Fax:949.720.1376 October 27, 2004 Mr. Mike White Controller Orange County Sanitation District 10844 Ellis Avenue Administration Building Fountain Valley, CA 92708-7018 Re: 3rd Quarter 2004 Report Dear Mike: The following is a description of events in the bond markets during the 3`6 quarter of 2004 and an analysis of the strategies undertaken in the Orange County Sanitation District's long-term and liquid portfolios over the period. We have also included a section on strategies to be pursued in your portfolios during the coming months. Bond Market Recap: Bond Markets Rally As Soft Economy Prompts Fall In Rates Bonds rallied in the third quarter as the economy slowed, hitting what Federal Reserve Chairman Greenspan called a "soft patch." Weak employment growth and expectations of lower inflation prompted a fall in interest rates that boosted all bond market sectors. The third quarter was essentially a reversal of the previous three months, when a stronger labor market and anticipation that the Federal Reserve would begin tightening caused rates to jump. Bond market gains during the third quarter came despite two 25 basis point rate hikes by the Fed that brought the fed funds rate to 1.75 percent by the close of the period. The central bank said it would raise rates in the future at a "measured" pace as it moves toward a neutral policy stance that neither restrains nor stimulates the economy. The Lehman Brothers Aggregate Bond Index, a widely used index for the high-grade bond market, returned 3.20 percent in the third quarter. As shown in the chart above, the yield on the benchmark 10- year Treasury fell 46 basis points during the quarter, ending the period at 4.12 percent. The yield on the I0-year Treasury moved below 4 percent in September before the benchmark note gave back some gains at the end of the period. While all but the very shortest maturity yields fell during the quarter, 10-year yields fell the most, causing the 2-10 year portion of the yield curve to flatten. This flattening suggested that bond markets were not optimistic about the economy's growth prospects. A major reason for bond investors' skepticism about future growth was higher oil prices, which topped $50 a barrel late in the period and rose by more than a third for the full quarter. Consumer confidence slipped in September for the second consecutive month amid concern that surging oil prices would continue to exert a drag on growth, hiring and disposable incomes. Higher Yielding Bond Sectors Outperform In Third Quarter The following summarizes fixed income sector returns: ■ Mortgages outperformed like-duration Treasuries during the third quarter of 2004. Mortgages benefited from continued strong demand from banks and other financial institutions for "carry", or the excess yield mortgages provide above borrowing costs. Declining volatility in financial markets overall convinced investors that there was minimal risk of adverse price movements that could offset mortgages' attractive cant'. ■ Investment grade and high yield corporate bonds outpaced Treasuries during the quarter. The trend of improving corporate credit quality proved resilient despite concerns about higher oil prices, Fed tightening and slower growth. Corporate America's profitability and balance sheet liquidity remained solid. ■ Real return bonds remained one of the best performing fixed income sectors in the third quarter and for the full year. Although TIPS faced the headwind of reduced inflation expectations, they still outperformed comparable duration nominal bonds as real yields fell. • U.S. bonds generally outperformed other major developed markets in Europe and Japan, though rates fell in those markets as well. • Emerging market bonds were the best performing fixed income assets during the third quarter, rallying strongly after their poor performance in the previous quarter. A more benign Treasury market, improving country fundamentals and continued strong commodity prices sparked a tightening of emerging market credit premiums. Performance Attribution: Long Term Portfolio The Long-Term portfolio that P1MCO manages on behalf of Orange County Sanitation District turned in a 1.56 percent return over the quarter, lagging the Merrill Lynch 1-5 year Government Corporate Index by 13 basis points. This portfolio's performance was due in part to the following factors: • PIMCO's secular outlook calls for limited exposure to U.S. rates and diversification beyond core bond sectors; thus we avoided exposures that could have paid off during the quarter's rally but posed longer tern risks • Held duration below the index given long term risks of inflation and rate increases; this strategy was negative during the quarter as interest rates fell • Yield curve positioning similar to the benchmark was neutral for performance ■ A mortgage emphasis added to returns as low volatility and strong bank demand supported these assets; mortgage security selection was also positive • An underweight to corporates detracted from returns as credit premiums narrowed; corporate security selection added value 2 Liquid Portfolio Q The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District turned in a 0.35 percent return over the quarter,outperforming the 3-month Treasury Bill Index by 3 basis points. This portfolio's performance was due in part to the following factors: • Near-index duration was neutral for performance • An corporate emphasis added to returns as credit premiums narrowed; corporate security selection added value • Use of higher yielding securities such as commercial paper and short-term notes contributed to performance Economic Outlook: Global Economy To Muddle Along Over Next Few Quarters The global economy will muddle along over the next several quarters, with neither a boom nor a bust likely to emerge. The U.S., Japan and China will grow faster than Europe.A global excess of supply over demand in labor and product markets, as well as subdued unit labor costs, will restrain inflation. Interest rates in the U.S. will be range-bound within 30-40 basis points on either side of current levels. Important aspects of the outlook are: • A Boom Is Not In The Cards... More business investment will be needed to bolster global demand growth now that fiscal and monetary stimulus is fading.Companies in the U.S. and Japan have ample liquidity to boost investment after repairing their balance sheets over the last several years,but a lack of confidence about future growth and lingering excess capacity will subdue the "animal spirits" of corporate executives. Investment spending and hiring will be more modest than would be expected given such robust corporate profits and cash flow. • ...But Neither Is a Bust -- Some growth in investment will be needed just to maintain the capital stuck of Corporate America, whose current spending is not keeping pace with depreciation. Growth in consumer spending will remain a net positive,as a modest pickup in hiring will support disposable incomes. Range-bound rates will keep household debt service at manageable levels. ■ Europe To Lag; Japan a Positive— European exports have responded positively to growth abroad. Still, the Eurozone will be hampered by a relatively soft consumer sector that is being held back by anemic growth in employment and incomes. Japan's growth will remain balanced between external and internal demand now that Japanese consumers have reemerged after a long dormant period. • Higher Oil Prices Will Restrain Growth — Higher oil prices will also exert inflationary pressure worldwide. Still, the adverse impact of rising oil prices will be more muted than in the past. Oil prices in real terms are nowhere near levels seen in the late 1970s. Moreover,the world's reliance on oil per unit of output has been considerably reduced since then. 3 Remain Defensive To Guard Against Potential Instability o The global economy looks stable, with prospects for modest growth, low volatility in financial markets and range-bound interest rates. PIMCO remains concerned, however,about a tilt in the direction of either deflation or inflation. The uncertain pace of investment and hiring could tilt the balance of risks toward deflation. On the other hand, monetary policy remains stimulative despite the beginning of Fed tightening. Easy money combined with higher commodity prices and dollar weakness could swing the economy back in the other direction. A prudent approach in this environment is to stay defensive and well diversified to avoid negative consequences of being on the wrong side of any market dislocation. Key strategies will include: • Tactically Flexible Interest Rate Strategies-- Rates are more likely to rise than fall over a secular, or three to five year time frame. We will therefore be wary of extending duration beyond benchmark levels. At the low end of our forecasted interest rate range, we will target duration about 0.5 year below the index and then shift toward a neutral posture should rates move back up. With European growth expected to lag the U.S. and Japan, it makes sense to diversify away from U.S. interest rate risk and take exposure to intermediate maturity Eurozone issues,where permitted. • Structural Yield Curve Exposure - While short/intermediate maturities are close to full valuation, we will retain a modest structural emphasis here. Because the short/intermediate portion of the yield curve remains relatively steep, this "bulleted" posture provides extra yield with less price risk than a "barbell," or mix of short and long term bonds. In addition, longer maturities would be more vulnerable if the economy tilted toward inflation. • Retain Underweight of Core U.S. Sectors —Tight corporate yield premiums offer too little reward to bear the risk of negative credit events if the economy were to slow. Mortgage-backed bonds are fully valued for now as a result of unusually heavy demand from banks, which are taking advantage of mortgages' attractive "carry" in a steep yield curve environment. • Out-of-Index Alternatives - Better risk/reward trade-offs can be found outside of core sectors. At current break-even inflation levels, real return bonds continue to provide an effective hedge against secular inflation risk. Municipal bonds offer attractive yields versus Treasuries on a historical basis and pose less credit risk than corporates. Improving credit fundamentals and relatively generous yields make modest exposures to emerging market bonds a compelling alternative to comparably rated corporate issues. • Add Extra Return Via Modest Currency Exposure — PIMCO expects the large U.S. current account deficit to exert downward pressure on the U.S. dollar over a secular time frame. Where permitted, we will express this view via modest exposure to currencies likely to rise because of improving economic fundamentals, such as the yen and select emerging market currencies. Strategy: The following list highlights the strategies that will be used in the Long Term portfolio in the coming months: • Position portfolios defensively;rely on longer-run structural sources of value added to mitigate risks of instability 4 • Target duration below-index when rates are near the bottom of their range and move toward neutral e as they rise • Retain emphasis on short-and intermediate-maturity issues as they offer structural advantages given a steep yield curve; these include relatively attractive yields and "roll down,"or price gains as bonds are revalued at lower yields over time • Exploit other structural strategies, such as buying bonds forward and investing cash backing these positions in short maturity issues with attractive yields • Hold mortgages, which offer a yield advantage over Treasuries and strong credit quality; seek value in coupon selection • Underweight corporates, as their full valuations present unfavorable risk/reward trade-offs The following list highlights the strategies that will be used in the Liquid portfolio in the coming months: • Position portfolios defensively; rely on longer-run structural sources of value added to mitigate risks of instability • Given the steep curve, continue to exploit"roll down,"or price gains as bonds are revalued at lower yields over time • Retain modest exposure to corporates in the face of full valuations in this core bond sector We hope you find this information useful. Please feel free to call us with any questions. Sincerely, Christine Telish, CFA John M. Miller, CFA Vice President Senior Vice President 5 OCSD Investment Management Program Quarter End Portfolio Values (Marked-to-Market) $450,000,000 I � $400,000,000 —-- --- —-— -- -------- 1 $350,000,000 _...._...... -- - - - - _. ..-........._..... -- i i $300,000,000 ---- —.--._... .. i S i $250,000,000 .......__._....-.-_.._..... _......-...._........._._....._-- i $200,000,000 - -------------.._..._ i $150,000,000 ................. ..__--_._.. $100,000,000 , 1 $50,000,000 —_.. 3 30 Jun 03 30 Sep 03 30 Dec 03 31 Mar 04 30 Jun 04 30 Sep 04 i E3 Liquid Operating Monies 12 Long-Term Operating Monies' Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Liquid Operating Portfolio 5-Year Retvm vs.Standard Deviation 12 11 �------ x 10 r.-. Performance 9 ! TatahPortfalia�'. : a 7 s Before Fees(9:j 4.96 3AG 1.67 113 O 87 OAl 0-35 6 ititi 14 Vr After FeOs(?k) 4.22 3:33 3 53 102 0 75;; ♦ >Ttsastay 4 CiUgrbup 3 Month T Biil'Index(96 3.91 2�6 1.41 104 0 80 O.St3 0 32 2 I 0 t 2 3 4 5 6 7 8 9 10 11 12 Standard Deviation of Return(1Y) %of Market Value Duration in Yrs. InformationSummary . 1 r • t r t it Total MarketVelue•($MM) 112.4 72:8 ovemntetlt 27 '?i{ 0.0 0.0 QuarlertY don trititttfotss($IiAM) 20.5 : :-40.0 Mortgages; 0 !] 0.0 0:0 Estimated Annual Income($MM) 1.3 A: GOryofales 1 -10 0.0 0.0 Estimated Yield to Maturily.(96). 1.4 1.:8 High Yield. 0 0 0.0 oitr Esbfrtated Duretion(yrs) 01 03 Nott U.5 S:DOrreftl fsa�ttes D 0.0 OA :. AVerageilAaturft�r.(vm 0.1 D: : 'Err Mttt ISsues 0 0 0.0 OG Avergge eZualily.. AAA ` AAA: rZdter 0 0 0.0 0.0 Averae e'Coupon-(9o) 1.2` t:8 tdE+ttasMlAbneyt~Aarketsa 72 8ti 0.1 0.1 Net Currancy Expostene:(%) 0.0 9:0. i pt3r f TlF 5E 5B 0.1 p . Tcac9gttg,Efr6t( yrs.,%)° 0.2 Al : TGdi�etttrrtenE 0 A 0.0., 0.0 Infemlatitirl ilatio(3 yis.)4 2.0 1.7 Cote of!?eposEt 2 6 0.0 ;': .0.0 •See example of tracking error 1 lniermatlon ratio on $ 1i1 � 0 Q 0.0 0:0 footnote page of the Appendix. :: aY FuWrBS 0 0 0.0 O:b .964.Ciat>;littes 14 :`0 99.9 99.9 totat 10() 100 0.1 0.2 See footnotes in Appendix. 2 Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Long Term Portfolio b-Year Return vs.Standard Deviation g X lBAG - • • 1 1 � ® 6 t�ctrtfopv IM' b�dex 7. Iota{Portrollo1 5 Before:Fees(%): 8.19 8 08— AA5 2.22 1.98 0 4R. '94 After Fees(%) s .114 5.93 4.29 2.07 1.87 0.37 1 52 3 Cdtgtotsp 3- 2 Md Merril 1-5 Yeas Gov%Corp:.C16 : 8.12 fi 18 4 37 1.75 1.61. -0.05. 1: 1 { 0 1 2 3 4 s s 7 a 9 Standard Deviation of Retum2(%) %of Market Value %of Duration i Summary Information ® 1 1 1 1 1 Total Market.Valus{$MM) 388.4 :`; 363.1 Govetnitient 79 '; 72 68: 68 Quarterty,Qohtributlons($MM} 0.0 41;0 Mortgages 18 16 26':• 23 -,. Esftated:Annual lncorho($MM}.. 15 2 'f2.5 Corporates. 4 3 4 5. Estimated Yield to::Maturity(°.6) 3.6 3;t. Wigh Yield 0 0 0 0 Estimated Duration(yrs) 2.3.. � 2.0 Non U,S.:$Developed issues 0 0 0 - "o Benchmark Duration(yrs) 2 5: 2.5 Emerging>Markats Issues• 0 "0 0 0 Average.Matuctty.(yrs} 26 23, tf}tef 0 8 0 '0 Average Quaftty. : .. AAA :AAA Net Cash Egvivaten}s�• 1 9 2 : "3 Averagt3 Coupon(%} 4.0 .3.5 Comtat PapecLS"RF 3 6 0 `0 Net Currenc y upitmvre 0.0 0.0 ages 1 4 0 ;v Traoklgg Error.(3 yrs.,%js 0.7 > 0.5 : .:Zr Corporates : 2 3 0 :. Information Ratio(3.yrs.}3 -0.3 0.1 ST Goverrttnen 5 10 2..; 3 See example of tracking error 1 Information ratio on 4ffter :' 1 1 0 0 footnote page of time Appendbc less:liabgitles 13 •.12 0 0 'folaf 100 100 100. Ito See footnotes in Appendix. 2 a d Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund September 30, 2004 Par Value Book Value Market Value Rate Yield Balance September 1, 2004 $20,710,595 $20,710,595 $20,710,595 1.771 1.771 Deposits: 9/15/2004 25,500,000 25,500,000 25,500,000 1.771 1.771 9/21/2004 2,100,000 2,100,000 2,100,000 1.771 1.771 Total Deposits 27,600,000 27,600,000 27,600,000 1.771 1.771 Withdrawals: 9/1/2004 (5,000,000) (5,000,000) (5,000,000) 1.771 1.771 9/9/2004 (4,200,000) (4,200;000) (4,200,000) 1.771 1.771 9/23/2004 (1,000,000) (1,000,000) (1,000,000) 1.771 1.771 9124/2004 (8,500,000) (8,500,000) (8,500,000) 1.771 1.771 9/29/2004 (2,900,000) (2,900.000) (2,900,000) 1.771 1.771 Total Withdrawels (21,600,000) (21,600,000) (21,600,000) 1.771 1.771 Balance September 30, 2004 $26,710,595 $26,710,595 $26,710,596 1.771 1.771 Report ID;GL8251 Asset Summary Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LIQUID OPER-PJKC0-OCSF07511102 9 f 3012004 Status:FINAL Net Unrealized Description Cost Market Value % of Gain/Loss P Shares Par Base Base Total Base CASH&CASH EQUIVALENTS U.S. DOLLAR INTEREST 217,442.04 217,442.04 0.30% 0.00 CERTIFICATES OF DEPOSIT-DOMESTIC 5,500,000.000 5,500,000.00 5,500,000.00 7.56% 0.00 FED HM LOAN BNK-LESS THAN 1YR 13,400,000.000 13,353,723.00 13,353,723.00 18.36% 0.00 FEDERAL HOME LOAN MORTGAGE.-LESS THAN 1 14,400,000.000 14,338,956.39 14,338,956.39 19.71% 0.00 FNMA ISSUES-LESS THAN IYR 14,600,000.000 14,538,655.50 14,538,655.50 19.990/0 0.00 MUTUAL FUNDS 94,358.050 94,358.05 9,1,358.05 0.13% 0.00 TREASURY BILLS-LESS THAN IYR 17,600,000.000 17,534,153.29 17,534,153.29 24.11410 0.00 U.S.DOLLAR 65,594,358.050 65,577,288.27 65,577,288.27 90.15% 0.00 CASH&CASH EQUIVALENTS 65,594,358.050 65,577,288.27 65,577,288.27 90.15% 0.00 FIXED INCOME SECURITIES U.S. DOLLAR BANKING&FINANCE 5,500,000.000 5,614,810.00 5,584,900.00 7.68% -29,910.00 INDUSTRIAL 1,575,000.000 1,589,663.25 1,577,205.00 2.17% -12,458.25 U.S.DOLLAR 7,075,000.000 7,204,473.25 7,162,105.00 9.85% -42,368.25 FIXED INCOME SECURITIES 7,075,000.000 7,204,473.25 7,162,105.00 9.85°% -42,368.25 TOTAL ASSETS-BASE: 72,669,358.050 72,781,761.52 72,739,393.27 100.00% -42,368.25 c d\ a Asset Summary Report ID:GL82SI Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERa2 OPER-MBICO-OCSF07522202 9/30/2004 Status:FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH 86 CASH EQUIVALENTS U.S. DOLLAR PENDING TRADES -42,254,518.95 -42,254,518.95 -11.64% 0.00 INTEREST 2,322,987.65 2,322,987.65 0.64% 0.00 COMMERCIAL PAYER-DISCOUNT 700,000.000 696,370.47 696,370.47 0.19,16 0.00 FED HM LOAN BNK-LESS THAN 1YR 4,300,000.000 4,281,279.28 4,281,279.28 1.180/0 0.00 FEDERAL HOME LOAN MORTGAGE-LESS TITAN 1 400,000.000 397,784.56 397,784.56 0.11% 0.00 FNMA ISSUES- LESS THAN IYR 16,200,000.000 16,134,122.02 16,134,122.02 4.44% 0.00 MUTUAL FUNDS 1,138,604.420 1,138,604-42 1,138,604.42 0.31% 0.00 TREASURY BILLS-I,N SS THAN 1 YR 16,000,000.000 15,843,937.78 15,843,937.78 4.36% 0.00 U.S.DOLLAR 38,738,604.420 -1,439,432.77 -1,439,432.77 -0.4WA 0.00 CASH&CASH EQUIVALENTS 38,738,604.420 -1,439,432.77 -1,439,432.77 -0.40% 0,00 FIXED INCOME SECURITIES U.S.DOLLAR ABS-AIRPLANE RECEIVABLES 1,600,000.000 1,600,000.00 139,392.00 0.041% -1,460,608.00 ARS-HOME EQUITY 779,923.690 779,923.69 778,705.45 0.21% -1,218.24 BANKING&FINANCE 11.000.000.000 11,008,798.00 11,244,680.00 3.100% 235.882.00 COLLATERALIZED MORTGAGE OBLIGATION 1,920,261,520 1,920,261.52 2,081,947.54 0.570141 161,686.02 FHLMC MULTICLASS 873,31 L340 874,241.70 875,896.34 0.24% 1,654.64 FHLMC POOLS 63,273.510 61,731.20 64,871.04 0.020b 3,139.84 FNMA POOLS 53,460,150.680 54,387,072.00 54,376,328.71 14.97% -10,743.29 FNMA REMIC 719,440.970 733,829.79 721,674.11 0.20'0 -12,155.68 GNMA MULTI FAMILY POOLS 4,163,708.170 4,140,720.58 4,194,366.03 1.15%6 53,645.45 GNMA SINGLE FAMILY POOLS 598,735,870 627,749.36 634,804.51 0.17% 7,055.15 INDUSTRIAL 3,000,000.000 2,999,910.00 2,999,520.00 0.830l, -390.00 INFLATION INDEXED SECURITIES 35,318,880.000 35,335,799.79 38,706,006.82 10.66% 3,370,207.03 INSURANCE 1,600,000.000 1,594,032.00 1,649,248.00 0.450/a 55,2I6.00 PVT PLACEMENTS-MORE THN IYR 752,000.000 826,199.84 826,199.84 0.239f6 0.00 U.S.AGENCIES 33,930,387.380 34,898,038.45 35,050,733.53 9.65% 152,695.08 U.S.GOVERNMENTS 203,685,923.500 206,319,287.64 205,427,602.92 56.57% -891,684.72 UTILITY-ELECTRIC 4,750,000.000 4.694.370.00 4,828,042.50 1.339'o 133,672.50 ------- -- ......._......... .. . . . - 1 Workbertch Report ID:GL8251 Asset Summary Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Exchange Rate: LONG TERM OPER-PWCO-OCSF07522202 9/30/2004 status:FINAL Net Unrealized Description Cost Market Value % of Gain/Loss P Shares Par Base Base Total Base U.S. DOLLAR 358,215,996.630 362,801,965.66 364,600,019.34 100.40% 1,798,053.78 FIXED INCOME SECURITIES 358,215,996.630 362,801,965.56 364,600,019.34 100.40% 1,798,053.78 TOTAL ASSETS-BASE: 396,954,601.050 361,362,532.79 363,160,586.57 100.00% 1,798,053.78 2 ','lorkbench c a � a YLDANAL YIELD ANALYSIS PAGE 1 OCSF07511102 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LIQUID OPERATING RUN TIME : 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ $ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH & CASH EQUIVALENTS 2,200,000.00 BANK OF AMERICA NA INSTL C/D .000 1.620 100.000 2,200,000.00 3.36 06050GEMS 1.620% 11/02/2004 DD 08/06/04 2,200,000.00 3.03 9,400,000.00 FEDERAL HOME LN BKS CONS DISC .000 .000 P-1 99.716 8,376,191.33 12.81 313384Q28 MAT 11/19/2004 A-1F 8,376,181.33 11.55 5,000,000.00 FEDERAL B014F. LN BK CONS DISC N .000 .000 P-1 99.551 4,977,541.67 7.61 313384559 MAT 12/08/2004 A-1+ 4,977,541.67 6.86 7,300,000.00 FEDERAL HOME LN MTG CORD DISC .000 .000 P-1 99.601 7,270,844.61 11.12 313396N82 MAT 11/09/2004 A-1+ 7,270,844.61 10.03 1,000,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.586 995,860.00 1.52 313396P72 MAT 11/16/2004 A-1+ 995,860.00 1.37 6,100,000.00 FEDERAL HOME LN MTG CORD DISC .000 .000 P-1 99.545 6,072,251.78 9.29 313396T37 MAT 12/14/2004 A-1+ 6,072,251.78 8.37 1,800,000.00 FEDERAL NATL MTG ASSN DISC NT .000 .000 P-1 99.597 1,792,755.00 2.74 31358BN27 MAT 11/3/2004 A-1+ 1,792,755.00 2.47 2,800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.592 2,788,569.39 4.26 313588P82 MAT 11/17/2004 A-1+ 2,788,569.39 3.85 4,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.578 3,983,114.44 6.09 31358SQ73 MAT 11/24/2004 A-1+ 3,983,114.44 5.49 6,000,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.570 5,974,216.67 9.14 313588R64 MAT 12/01/2004 A-1+ 5,974,216.67 8.24 5,600,000.00 U S TREASURY BILL .000 .000 P-1 99.630 5,579,262.11 8.53 912795RK9 DUE 11/04/2004 DD 05/06/2004 A-1+ 5,579,262.11 7.69 2,000,000.00 U S TREASURY BILL .000 .000 P-1 99.600 1,991,997.50 3.04 912795RL7 DUE 11/12/2004 DD 05/13/2004 A-1+ 1,991,997.50 2.75 5,000,000.00 U S TREASURY BILL .000 .000 P-1 99.644 4,982,207.29 7.62 912795RM5 DUE 11/18/2004 DD 05/20/2004 A-1+ 4,982,207.29 6.87 5,000,000.00 U S TREASURY BILL .000 .000 P-1 99.614 4,980,686.39 7.62 912795RN3 DUE 11/26/2004 DD 05/27/2004 A-1+ 4,900,686.39 6.87 YLDANAL YIELD ANALYSIS PAGE 2 OCSF07511102 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LIQUID OPERATING RUN TIME : 09.21.54 -----""""'------ ---- ------------....-.------..--------._.--...-..-----�--o=acaa-�wao===-==avow_.---as. PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,100,000.00 WELLS FARGO BANK NA INSTL C/D .000 1.650 100.000 1,100,000.00 1.68 9497P1BU2 1.650$ 10/07/2004 DD 09/09/04 1,100,000.00 1.52 2,200,000.00 WELLS FARGO BANK NA INSTL C/D .000 1.600 100.000 2,200,000.00 3.36 9497PICLI 1.600% 10/04/2004 DD 08/30/04 2,200,000.00 3.03 94,358.05 DREYFUS TREASURY CASH MGMT .000 1.459 AAA 100.000 94,358.05 .•14 996085247 AAA 94,358.05 .13 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .110 65,359,846.23 100.00 65,359,846.23 90.12 FIXED INCOME SECURITIES 3,000,000.00 ASSOCIATES CORP NORTH AMER SR .000 6.447 AA1 102.765 3,112,350.00 43.04 046003FF1 6,625% 06/15/2005 DD 06/09/95 AA- 3,082,950.00 4.25 1,575,000.00 DU PONT El DE NEMOURS 6 CO NT .000 6.741 AA3 100.140 1,589,663.25 22.02 263534BHI 6.750% 10/15/2004 DD 10/20/99 AA- 1,577,205.00 2.17 2,500,000.00 GENERAL ELEC CAP NTH #TR 00526 .000 2.003 AAA 100.078 2,502,460.00 34.93 36962GXX7 VAR RT 03/15/2005 DD 03/20/02 AAA 2,501,950.00 3.45 -------- ------- ----------------- ---------- TOTAL FIXED INCOME SECURITIES .000 5.763 7,204,473.25 100.00 7,162,105.00 9.87 -------- ------- ----------------- --------- TOTAL .000 .233 72,564,319.48 100.00 72,521,951.23 100.00 _ a YLDANAL YIELD ANALYSIS PAGE 3 OCSF07522202 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- CASH S CASH EQUIVALENTS 700,000.00 FEDERAL HOME LN BK CONS DISC .000 .000 P-1 99.601 697,204.28 1.81 313384P37 A-1+ 697,204.28 .17 3,600,000.00 FEDERAL HOME LN BK CONS DISC N .000 .000 P-1 99.558 3,584,075.00 9.31 313384S59 MAT 12/08/2004 A-I� 3,584,075.00 .89 400,000.00 FEDERAL HOME LN MTG CORP DISC .000 .000 P-1 99.446 397,784.56 1.03 313396Q71 MAT 11/24/2004 A-1+ 397,784.56 .10 700,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.766 698,364.14 1.81 31358SP66 MAT 11/15/2004 A-1+ 698,364.14 .17 5,400,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.604 5,378,617.50 13.97 313588P82 MAT 11/17/2004 A-1+ 5,379,617.50 1.33 800,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.580 796,643.11 2.06 31358SQ73 MAT 11/24/2004 A-I+ 796,643.11 .20 1,100,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.665 1,096,315.00 2.84 313588R49 MAT 11/29/2004 A-1+ 1,096,315.00 .27 4,000,000.00 FEDERAL NAIL MTG ASSN DISCOUNT .000 .000 P-1 99.591 3,983,636.61 10.34 31358SR64 MAT 12/01/2004 A-1+ 3,983,636.61 .99 200,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.555 199,110.22 .51 313588S55 MAT 12/08/2004 A-1+ 199,110.22 .05 400,000.00 FEDERAL NATL MTG ASSN DISC NTS .000 .000 P-1 99.568 398,270.44 1.03 313588T47 MAT 12/15/2004 A-1+ 398,270.44 .10 3,600,000.00 FEDERAL NATL MTG ASSN DISCOUNT .000 .000 P-1 99.532 3,583,165.00 9.30 31358BU37 MAT 12/22/2004 A-1+ 3,583,165.00 .89 500,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.450 497,249.58 1.29 36959HLGO 11/16/2004 497,249.58 .12 200,000.00 GENERAL ELEC CAP DISC .000 .000 P-1 99.560 199,120.89 .51 36959HM20 12/02/2004 199,120.89 .05 16,000,000.00 U S TREASURY BILL .000 .000 P-1 99.025 15,843,937.78 41.16 912795SG7 DUE 03/31/2005 DD 09/30/2004 A-1+ 15,843,937.78 3.93 YLDANAL YIELD ANALYSIS PAGE 4 OCSF07522202 2004/09/30 RUN DATE 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,138,604.42 DREYFUS TREASURY CASH MGMT .000 1.459 AAA 100.000 1,138,604.42 2.95 996085247 AAA 1,138,604.42 .28 -------- ------- ----------------- --------- TOTAL CASH 6 CASH EQUIVALENTS .000 .007 38,492,098.53 100.00 38,492,098.53 9.54 FIXED INCOME SECURITIES 752,000.00 AIG SUNAMERICA GLOBAL REG S .000 5.325 109.867 826,199.84 .22 U00907AAO 5.850% 08/01/2008 DD 08/08/01 826,199.84 .20 2.2,000,000.00 COMMIT TO PUR FNMA SF MTG .000 4.923 AAA 101.563 22,381,562.50 6.12 O1F0504AI 5.000% 10/01/2019 DD 10/01/04 AAA 22,143,750.00 5.54 4,000,000.00 COMMIT TO PUR FNMA SF MTG .000 5.430 AAA 101.297 4,055,859.37 1.11 O1F0526A5 5.500% 10/01/2034 DD 10/01/04 AAA 4,051,875.20 1.01 3,500,000.00 FEDERAL HOME LN BK CONS BDS .000 6.992 AAA 101.895 3,732,225.00 .97 3133MAUN7 7.125% 02/15/2005 DD 02/08/00 AAA 3,566,338.65 .88 63,273.51 FHLMC GROUP 078-6064 .000 3.304 AAA 102.525 61,731.20 .01 31348SWZ3 6.384% 01/01/2028 DD 12/01/97 AAA 64,871.04 .02 11,350,000.00 FEDERAL NATL MTG ASSN DEBS .000 5.037 AAA 104.219 11,521,271.50 3.24 31359MJX2 5.250% 06/15/2006 DD 06/22/01 AAA 11,828,822.45 2.93 694,374.27 FNMA POOL 40254510 .000 4.905 AAA 101.941 715,205.49 .19 31371KV54 5.000% 11/01/2017 DD 10/01/02 AAA 707,854.92 .18 149,427.46 FNMA POOL #0254631 .000 4.905 AAA 101.941 153,910.29 .04 31371KY47 5.000% 02/01/2018 DD O1/01/03 AAA 152,328.46 .04 132,882.67 FNMA POOL 00254760 .000 4.906 AAA 101.910 136,869.14 .03 31371K5V9 5.000% 06/01/2018 DD 05/01/03 AAA 135,420.94 .03 60,193.59 FNMA POOL 40254866 .000 4.906 AAA 101.910 61,999.40 .01 31371LCB3 5.000% 09/01/2018 DD 08/01/03 AAA 61,343.38 .02 318,282.21 FNMA POOL 00254953 .000 4.909 AAA 101.848 322,360.21 .08 31371LE21 5.000% 11/01/2018 DD 10/01/03 AAA 324,162.98 .08 c a� a YLDANAL YIELD ANALYSIS PAGE 5 OCSF07522202 2004/09/30 RUN DATE. 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 864,896.51 FNMA POOL 40254987 .000 4.915 AAA 101.731 875,977.99 .24 3137ILF46 5.000% 12/01/2018 DD 11/01/03 AAA 879,867.83 .22 156,322.37 FNMA POOL 40323980 .000 5.706 AAA 105.145 163,210.32 .04 31374T2M0 6.000% 04/01/2014 DD 09/01/99 AAA 164,364.42 .04 25,354.45 FNMA POOL 40357328 .000 4.912 AAA 101.790 26,115.08 .00 31376J4M8 5.000% 01/01/2018 DD 01/01/03 AAA 25,808.25 .01 1,333,703.06 FNMA POOL #0357430 .000 4.906 AAA 101.910 1,348,707.22 .37 31376KA71 5.000% 09/01/2018 DD 09/01/03 AAA 1,359,178.92 .34 45,096.97 FNMA POOL 40456482 .000 5.706 AAA 105.145 47,084.04 .01 31381CCT2 6.000% 02/01/2014 DD 02/01/99 AAA 47,417.00 .01 125,792.21 FNMA POOL *0509649 .000 5.706 AAA 105.145 131,334.93 .03 31383QEWO 6.000% 09/01/2014 DD 09/01/99 AAA 132,263.63 .03 122,183.34 FNMA POOL #0535451 .000 5.713 AAA 105.020 127,567.04 .03 31384VZQ8 6.000% 06/01/2015 DD 07/01/00 AAA 128,316.37 .03 318,503.77 FNMA POOL 00555363 .000 4.905 AAA 101.941 328,058.87 .08 31385W5Y1 5.0008 04/01/2018 DD 03/01/03 AAA 324,687.23 .08 33,019.78 FNMA POOL 40555453 .000 4.905 AAA 101.941 33,442.85 .00 31385XBW6 5.000% 05/01/2018 DD 04/01/03 AAA 33,660.83 .01 263,865.95 FNMA POOL #0555545 .000 4.905 AAA 101.941 271,781.94 .07 31385XES2 5.000% 06/01/2018 DD 05/01/03 AAA 268,988.67 .07 914,587.42 FNMA POOL #0555621 .000 4.915 AAA 101.731 924,B76.53 .25 31385XG68 5.000% 07/01/2018 DD 06/01/03 AAA 930,418.89 .23 492,259.84 FNMA POOL #0681309 .000 4.905 AAA 101.941 507,027.63 .13 31391Y3S4 5.000% 02/01/2018 DD 02/01/03 AAA 501,816.62 .12 59,940.63 FNMA POOL #0681334 .000 4.905 AAA 101.941 61,738.85 .01 31391Y4T1 5.000% 02/01/2018 DD 01/01/03 AAA 61,104.32 .02 719,440.97 FNMA GTD REMIC P/T 02-76 PD .000 4.985 AAA 100.310 733,829.79 .19 31392FKF3 5.000% 08/25/2022 DD 10/01/02 AAA 721,674.11 .18 314,850.30 FNMA POOL #0684908 .000 4.905 AAA 101.941 318,884.33 .08 31400D3R1 5.000% 06/01/2018 DD 05/01/03 AAA 320,962.84 .08 YLDANAL YIELD ANALYSIS PAGE 6 OCSF07522202 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME t 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE $ TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 176,817.75 FNMA POOL 00685200 .000 4.905 AAA 101.941 179,083.24 .04 31400EGH7 5.000% 03/01/2018 DD 03/01/03 AAA 180,250.51 .04 30,581.20 FNMA POOL #0685665 .000 4.905 AAA 101,941 31,498.64 .00 31400EII22 5.000% 02/01/2018 DD 02/01/03 AAA 31,174.91 .01 262,419.21 FNMA POOL 40686318 .000 4.905 AAA 101.941 270,291.79 .07 31400FPB7 5.000% 03/01/2018 DD 03/01/03 AAA 267,513.94 .07 104,370.76 FNHA POOL #0688739 .000 4.906 AAA 101,910 107,501.88 .02 31400JEL9 5.000% 06/01/2018 DD 06/01/03 AAA 106,364.41 .03 84,537.99 FNMA POOL #0689859 .000 4.906 AAA 101.910 85,621.14 .02 3140OKMGS 5.000% 05/01/2018 DD 05/01/03 AAA 86,152.80 .02 594,812.63 F14MA POOL #0693834 .000 4.905 AAA 101.941 612,657.00 .16 3140OPY74 5.000% 03/01/2018 DD 03/01/03 AAA 606,360.38 .15 212,146.76 FNMA POOL #0695852 .000 4.906 AAA 101.910 218,511.16 .05 31400SBVO 5.000% 05/01/2016 DD 05/01/03 AAA 216,199.10 .05 703,743.63 FNMA POOL #0695889 .000 4.906 AAA 101.910 724,855.95 .19 31400SC23 5.000% 05/01/2018 DD 05/01/03 AAA 717,186.26 .18 22,092.44 FNMA POOL 00697026 .000 4.905 AAA 101.941 22,755.23 .00 3140OTLF2 5.000% 05/01/2018 DD 04/01/03 AAA 22,521.34 .01 210,296.98 FNMA POOL 40702210 .000 4.915 AAA 101.731 216,605.88 .05 31401ADP9 5.000% 05/01/2018 DD 05/01/03 AAA 213,937.21 .05 129,939.53 FNMA POOL #0702328 .000 4.905 AAA 101.941 131,604.38 .03 31401AHD2 5.000% 05/01/2018 DD 04/01/03 AAA 132,462.19 .03 264,680.93 FNMA POOL #0709148 .000 4.906 AAA 101.910 272,621.36 .07 31401HZM7 5.000% 06/01/2018 DD 06/01/03 AAA 269,736.76 .07 620,273.85 FNMA POOL 00709360 .000 4.906 AAA 101.910 628,221.12 .17 31401JB56 5.000% 07/01/2018 DD 06/01/03 AAA 632,122.07 .16 103,722.22 FNMA POOL 00709826 .000 4,906 AAA 101.910 105,051.16 .02 31401JSP4 5.000% 06/01/2018 DD 06/01/03 AAA 105,703.48 .03 219,226.92 FNMA POOL #0709917 .000 4.906 AAA 101.910 222,035.76 .06 31401JVJ4 5.000% 06/01/2018 DD 06/01/03 AAA 223,414.50 .06 c o J A YLDANAL YIELD ANALYSIS PAGE 7 OCSF07522202 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE B TOTAL ----------------- ----------------------------- ------- ------- ----- -------- ------------ ---------- 18,201.79 FNMA POOL #0709963 .000 4.915 AAA 101.731 18,435.01 .00 31401JWY0 5.000% 06/01/2018 DD 06/01/03 AAA 18,516.86 .00 582,815.86 FNMA POOL 00710235 .000 4.906 AAA 101.910 600,300.35 .16 31401KBCB 5.000% 06/01/2018 DD 06/01/03 AAA 593,948.58 .15 15,893.50 FNMA POOL 40713344 .000 4.906 AAA 101.910 16,370.30 .00 31401NP52 5.000% 06/01/2018 DD 06/01/03 AAA 16,197.09 .00 256,335.02 FNMA POOL 40713365 .000 4.906 AAA 101.910 259,619.31 .07 31401NQS1 5.000% 07/01/201B DD 07/01/03 AAA 261,231.43 .06 709,543.42 FNMA POOL 00720319 .000 4.906 AAA 101.910 718,634.44 .19 31401WG45 5.000% 07/01/2018 DD 07/01/03 AAA 723,096.83 .18 2,058,931.59 FNMA POOL 40720369 .000 4.915 AAA 101.731 2,120,699,54 .57 31401WJII0 5.000% 06/01/2018 DD 06/01/03 AAA 2,094,571.61 .52 286,237.62 FNMA POOL 00721629 .000 4.906 AAA 101.910 294,024.77 .08 31401XVW4 5.000% 07/01/2018 DD O6/01/03 AAA 291,705.22 .07 233,241.84 FNMA POOL #0723487 .000 4.906 AAA 101.910 235,865.81 .06 31402AX04 5.000% 06/01/2018 DD 06/01/03 AAA 237,697.13 .06 391,186.70 FNMA POOL $0729601 .000 4.906 AAA 101.910 396,198.78 .10 31402HRW3 5.000% 07/01/2018 DD 07/01/03 AAA 198,658.99 .10 33,344.72 FNMA POOL 40732873 .000 4.907 AAA 101.891 33,771.93 .00 31402MFN5 5.000% 11/01/2010 DD 10/01/03 AAA 33,975.41 .01 648,278.50 FNMA POOL 40737130 .000 4.906 AAA 101.910 656,584.57 .18 31402S4P9 5.000% 10/01/2018 DD 10/01/03 AAA 660,661.66 .16 517,728.23 FNMA POOL 00738211 .000 4.915 AAA 101.731 524,361.64 .14 31402UDQ2 5.000% 10/01/2018 DD 10/01/03 AAA 526,690.08 .13 186,832.71 FNMA POOL 40738487 .000 4.909 AAA 101.849 189,226.50 .05 31402UNC2 5.000% 10/01/2018 DD 10/01/03 AAA 190,284.74 .05 673,747.59 FNMA POOL 00740471 .000 4.915 AAA 101.731 682,379.96 .19 31402WT40 5.000% 10/01/2018 DD 10/01/03 AAA 685,410.13 .17 745,479.74 FNMA POOL #0740748 .000 4.906 AAA 101.910 755,031.19 .20 31402W5H7 5.000% 10/01/7018 DD 11/01/03 AAA 759,719.60 .19 YLDANAL YIELD ANALYSIS PAGE 8 OCSF07522202 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ----- -------- ------------ ---------- 37,509.13 FNMA POOL #0743868 .000 4.915 AAA 101.731 37,989.69 .01 31403BMR1 5.000% 11/01/2018 DD 10/01/03 AAA 38,158.39 .01 976,392.39 FNMA POOL #0744009 .000 4.906 AAA 101,910 988,902.41 .27 31403BR54 5.000% 07/01/2018 DD 09/01/03 AAA 995,043.05 .25 153,543.48 FNMA POOL 00744316 .000 4.915 AAA 101.731 155,510.76 .04 31403B3Z4 5.000% 09/01/2018 DD 09/01/03 AAA 156,201.31 .04 340,171.47 FNMA POOL #0747914 .000 4.909 AAA 101.848 344,529.92 .09 31403F3X0 5.000% 11/01/2018 DD 11/01/03 AAA 346,456.68 .09 203,586.21 FNMA POOL 00748400 .000 4.915 AAA 101.731 206,194.66 .05 31403GNR9 5.000% 08/01/2018 DD 09/01/03 AAA 207,110.28 .05 918,874.30 FNMA POOL 00748899 .000 4.911 AAA 101.810 930,647.37 .25 31403G7L0 5.000% 12/01/2018 DD 11/01/03 AAA 935,505.06 .23 2,114,955.59 FNMA POOL 00750377 .000 4.911 AAA 101.810 2,142,053.46 .59 31403JUA2 5.000% 11/01/2018 DD 11/01/03 AAA 2,153,234.30 .53 1,884,100.47 FNMA POOL #0750380 .000 4.911 AAA 101.810 2,908,240.53 .52 31403JUD6 5.000% 11/01/2018 DD 11/01/03 AAA 1,918,200.92 .48 168,149.99 FNMA POOL 40750445 .000 4.911 AAA 101.810 170,304.42 .04 31403JWE2 5.000% 11/01/2018 DD 11/01/03 AAA 171,193.35 .04 795,318.64 FNMA POOL 00751960 .000 4.915 AAA 101.731 805,508.67 .22 31403LMHI 5.000% 12/01/2018 DD 11/01/03 AAA 809,085.57 .20 839,403.29 FNMA POOL #0753425 .000 4.914 AAA 101.754 849,108.88 .23 31403NA23 5.000% 11/01/2018 DD 11/01/03 AAA 854,125.67 .21 589,478.11 FNMA POOL 40755165 .000 4.909 AAA 101.848 597,030.80 .16 31403Q6A3 5.000% 12/01/2018 DD 11/01/03 AAA 600,369.66 .15 915,669.20 FNMA POOL #0756372 .000 4.909 AAA 101.848 926,256.62 .25 31403SJR8 5.000% 11/01/2018 DD 11/01/03 AAA 932,587.65 .23 10,880.44 GNMA POOL #0421389 .000 6.124 AAA 106.133 11,419.37 .00 36206UC23 6.500% 04/15/2026 DD 04/01/96 AAA 11,547.72 .00 19,939.53 GNMA POOL 00449851 .000 6.157 AAA 105.566 20,927.17 .00 36208FWLO 6.500% 01/15/2028 DD 01/01/98 AAA 21,049.37 .01 YLDA14AL YIELD ANALYSIS PAGE 9 OCSF07522202 2004/09/30 RUN DATE 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE ttARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- -------- -------- ------------ ---------- 36,672.86 GHMA POOL 00466845 .000 6.130 AAA 106.039 38,489.31 .01 36209BTA6 6.500% 06/15/2028 DD 06/01/98 AAA 38,887.56 .01 111,518.20 GNMA POOL 40468052 .000 6.130 AAA 106.039 117,041.83 .03 36209C5M4 6.500% 07/15/2028 DD 07/01/98 AAA 118,252.85 .03 154,360.22 GNMA POOL #0476041 .000 6.130 AAA 106.039 161,764.70 .04 36209MZE7 6.500% 06/15/2028 DD 06/01/98 AAA 163,682.13 .04 121,178.19 GN?lA POOL #0478626 .000 6.130 AAA 106.039 126,990.96 .03 362090VT9 6.500% 01/15/2029 DD 01/01/99 AAA 128,496.21 .03 28,890.97 GNMA POOL #0480598 .000 6.130 AAA 106.039 30,276.82 .00 36209S3F6 6.500% 10/15/2028 DD 10/01/98 AAA 30,635.71 .01 8,429.36 GN14A POOL 00512235 .000 6.133 AAA 105.977 8,846.87 .00 36211GBC6 6.5006 11/15/2029 DD 11/01/99 AAA 8,933.15 .00 106,966.10 GNMA POOL 40514326 .000 6.130 AAA 106.039 111,992.33 .03 36211JLF2 6.500% 07/15/2029 DD 07/01/99 AAA 113,319.81 .03 197,873.22 GNMA II POOL 00080395 .000 3.342 AAA 100.996 196,080.00 .05 36225CNM4 VAR RT 04/20/2030 DD 04/01/00 AAA 199,843.48 .05 1,781,830.04 GNMA II POOL 008040OX .000 3.342 AAA 100.995 1,763,733.32 .49 36225CN28 6.500$ 05/20/2030 DD 05/DI/00 AAA 1,799,561.57 .45 379,619.49 GNMA II POOL #0080900 .000 3.020 AAA 99.352 369,357.89 .10 36225DAA2 VAR RT 05/20/2034 DD 05/01/04 AAA 377,160.50 .09 1,394,813.52 G17MA II POOL 00080965 .000 3.481 AAA 100.542 1,393,941.75 .38 36225DCBB VAR RT 07/20/2034 DD 07/01/04 AAA 1,402,373.69 .35 3,000,000.00 GENERAL MTRS ACCEP CORP SR NT .000 5.813 A3 105.359 3,064,350.00 .86 370425SD3 6.125% 08/28/2007 DD 08/29/02 BBB 3,160,770.00 .78 800,000.00 GOLDMAN SACHS GRP MTN 4TR00207 .000 1.977 AA3 100.140 000,000.00 .21 38141EJ03 VAR RT 07/23/2009 DD 07/23/04 A+ 801,120.00 .20 3,000,000.00 GOLDMAN SACHS GROUP INC SR NT .000 4.047 AA3 101.921 3,030,030.00 .83 38141GCSI 4.125% 01/15/2008 DD 01/13/03 A+ 3,057,630.00 .76 3,000,000.00 KRAFT FOODS INC NT .000 1.960 A3 99.984 2,999,910.00 .82 50075NAJ3 VAR RT 11/26/2004 DD 11/26/02 BBB+ 2,999,520.00 .74 YLDANAL YIELD ANALYSIS PAGE 10 OCSF07522202 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 3,200,000.00 MORGAN STANLEY NT DOO 3.874 AA3 100.015 3,149,248.00 .87 61746BALO 3.875% 01/15/2009 DD 01/13/04 A+ 3,200,480.00 .79 779,923.69 RESIDENTIAL ASSET 03-RS11 AIIB .000 2.173 AAA 99.844 779,923.69 .21 760985K83 VAR RT 12/25/2033 DD 12/30/03 AAA 778,705.45 .19 2,985,923.5C SBA GTD DEV PARTN 2001-20C 1 .000 5.852 AAA 108.345 2,985,923.50 .08 83162CLJO 6.340% 03/01/2021 AAA 3,235,098.82 .80 1,920,261.52 SBA GTD PARTN CTFS SBIC-PS 01 .000 6.124 AAA 108.420 1,920,261.52 .57 831641DD4 6.640% 02/10/2011 DD 02/21/01 NR 2,081,947.54 .52 1,600,000.00 UNITED AIRLS PASSTHRU 01-1 C .000 78.409 WR 8.712 1,600,000.00 .03 909317BC2 6.831% 03/01/2010 DD 08/22/01 A- 139,392.00 .03 20,000,000.00 U S TREASURY NOTES .000 5.782 AAA 108.094 22,620,312.50 5.92 9128272JO 06.250% 02/15/2007 DD 02/15/97 AAA 21,618,800.00 5.36 3,522,270.00 US TREASURY INFLATION INDEX NT .000 3.305 AAA 109.688 3,831,771.35 1.05 9128273T7 3.625% 01/15/2008 DD 01/15/98 AAA 3,863,489.91 .96 15,035,670.00 US TREASURY INFLATION INDEX NT .000 3.442 AAA 112.594 16,661,030.11 4.64 9128274Y5 3.875% 01/15/2009 DD 01/15/99 AAA 16,929,262.28 4.20 3,900,000.00 U S TREASURY NOTES .000 5.535 AAA 103.890 4,28B,149.14 1.11 9128276N7 05.750% 11/15/2005 DD 11/15/00 AAA 4,051,729.50 1.01 17,600,000.00 U S TREASURY NOTES .000 3.353 AAA 100.660 17,405,000.00 4.85 912828BT6 3.375% 12/15/200B DD 12/15/03 AAA 17,716,160.00 4.40 61,000,000.00 U S TREASURY NOTES .000 1.986 AAA 99.440 60,967,721.21 16.63 912828BX7 1.875% 01/31/2006 DD 01/31/04 AAA 60,658,400.00 15.05 17,000,000.00 U S TREASURY NOTES .000 1.642 AAA 98.984 17,045,156.25 4.61 912828CB4 1.625% 02/28/2006 DD 02/29/04 AAA 16,027,344.60 4.17 33,000,000.00 U S TREASURY NOTES .000 2.256 AAA 99.740 32,835,000.00 9.02 912828CF5 2.250% 04/30/2006 DD 04/30/04 AAA 32,914,200.00 8.17 27,500,000.00 U S TREASURY NOTES .000 2.738 AAA 100.440 27,463,468.63 7.57 912828CMO 2.750% 06/30/2006 DD 06/30/04 AAA 27,621,000.00 6.85 20,700,000.00 U S TREASURY NOTES .000 2.739 AAA 100.410 20,708,556.41 5.70 912828CQI 2.750% 07/31/2006 DD 07/31/04 AAA 20,784,870.00 5.16 YLDANAL YIELD ANALYSIS PAGE 11 OCSF07522202 2004/09/30 RUN DATE : 10/04/04 DISTRICT: LONG-TERM OPERATING RUN TIME : 09.21.54 PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ % TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE % TOTAL ----------------- ------------------------- ------- ------- ------- -------- ------------ ---------- 1,750,000.00 VIRGINIA ELEC 6 PWR 01 SER A .000 5.527 A3 104.031 1,743,840.00 .49 927804ENO 5.750% 03/31/2006 DD 03/27/01 BBB+ 1,820,542.50 .45 16,760,940.00 US TREASURY INFLATION INDEX NT 3.817 3.156 AAA 106.875 14,842,998.33 4.91 9128272M3 3,375% 01/15/2007 DD 01/15/97 AAA 17,913,254.63 4.44 15,500,000.00 FEDERAL NATL MTG ASSN DEBS 5.967 6.991 AAA 101.911 16,154,410.00 4.33 31359MFHI 7.125% 02/15/2005 DD 02/14/00 AAA 15,796,195.70 3.92 873,311.34 FHLMC MULTICLASS MTG SER E3 A 6.316 3.621 AAA 100.296 874,241.70 .24 3133TCE95 VAR RT 08/15/2032 DD 12/01/97 AAA 975,896.34 .22 541,639.63 GNMA GTD REMIC TR 2000-9 FH 6.320 2.263 AAA 100.706 541,639.63 .14 3837H4NX9 VAR RT 02/16/2030 AAA 545,463.61 .14 235,705.78 GNMA II POOL 40800BOM 6.705 3.340 AAA 101.038 240,861.85 .06 36225CC20 7.375% 06/20/2027 DD 06/01/97 AAA 238,153.42 .06 173,866.12 GNMA 11 POOI, 00080023 6.992 4.536 AAA 101.960 176,745.77 .04 36225CA29 VAR RT 12/20/2026 DD 12/01/96 AAA 177,273.37 .04 2,100,000.00 FEDERAL NATL MTG ASSN DEBS 7.113 5.873 AAA 112.802 2,030,133.00 .64 31359MEY5 6.625% 09/15/2009 DD 09/01/99 AAA 2,368,840.74 .59 1,000,000.00 FORD MOTOR CR CO NT 7.582 6.587 A3 102.468 965,170.00 .28 345397GV9 6.750$ 05/15/2005 DD 05/24/93 BBB- 1,024,680.00 .25 938,747.75 WMP/HUNTOON PAIGE #000-11150 7.684 7.450 AAA 100.674 918,359.32 .25 302998GE3 7.500% 12/01/2030 DD 10/21/99 AAA 945,072.38 .23 3,000,000.00 PACIFICORP SECD MTN OTR 00115 7.709 7.282 A3 100.250 2,950,530.00 .82 69512EEU5 7.300% 10/22/2004 DD 10/22/92 A 3,007,500.00 .75 YLDANAL YIELD ANALYSIS PAGE 12 OCSF07522202 2004/09/30 RUN DATE 10/04/04 DISTRICTS LONG-TERN OPERATING RUN TIME t 09.21.54 �e=nv==aaaaa==aa=a_==c==oaa=o=oeaass-- �.---- PAR VALUE YTM AT CURRENT MOODY MARKET TOTAL COST/ $ TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE MARKET VALUE $ TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 1,600,000.00 ALLSTATE CORP SR NT 7.967 7.640 Al 103.078 1,594,032.00 .45 020002AL5 7.8751 05/01/2005 DD 05/01/00 A+ 1,649,248.00 .41 - TOTAL FIXED INCOME SECURITIES .172 4.365 362,801,965.56 100.00 364,600,019.34 90.46 -------- ------- ----------------- --------- TOTAL .168 4.276 401,294,064.09 100.00 403,092,117.87 100.00 FA H R COMMITTEE Meeting Date To Bd. of Dir. 11/10/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-98 14(d) Orange County Sanitation District FROM: Gary Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file the FY 2004-05 Financial Report for the First Quarter ended September 30, 2004. SUMMARY Attached in a separately bound document is the District's First Quarter Financial Report for the period ended September 30, 2004. This report is a consolidation of the financial accomplishments of the District through the through the first quarter of the FY 2004-05. 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, 22.01 percent, or $18.41 million of the FY 2004-05 net joint operating budget of $83.61 million has been expended. Net cost has decreased S403,000 in comparison with the same period last year. The total cost per million gallons at September 30, 2003 is $844.60 based on flows of 21 .79 billion gallons. or 236.88 million gallons per day. This is $71.72, or 7.83 percent below the budgeted cost per million gallons of $916.32. This shortfall is primarily due to expenditures being lower than budget by 11.95 percent, or $2.5 million. This expenditure shortfall is somewhat offset by the fact that flows are 5.25 percent lower than the budget estimate of 250 million gallons per day. PROJECT/CONTRACT COST SUMMARY N/A H ldephagenda\FAHR1FAHR2004\1104\04-98 Financial Report doc Revised 8120/98 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. FY 2004-05 Financial Report for the Quarter Ended September 30, 2004. H ldepMgenda\FAHR1FAHR200411104\04-98 Financial Repert doc Revised 8/20198 Page 2 FA H R CO M M ITT E E Meeting Date To Bd.of Dir. 11/10/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-99 14(e) Orange County Sanitation District FROM: Gary G. Streed, Director of Finance Originator: Michael D. White, Controller SUBJECT: SWAP REPORT FOR THE QUARTER ENDED SEPTEMBER 30. 2004 GENERAL MANAGER'S RECOMMENDATION Receive and file Swap Report for the quarter ended September 30, 2004. SUMMARY In August 2003, the Committee approved an Interest Rate Exchange Agreement Policy that provides guidelines for the use of hedging products including swaps, caps. floors, collars, options, and other similar financial instruments (collectively, -hedging products") in connection with the financial exposure of the District, including interest rate exposure. As required by this policy, following are the quarterly monitoring and reporting requirements and status at September 30,2004: Requirement Highlight all material changes to hedging product agreements including counterparty downgrades and/or terminations. Results: The District currently utilizes two hedging product agreements. the AIG Swap agreement and the Soc Gen Swap Agreement. The AIG Swap agreement was originally entered into in October 1, 1992, in order to convert the Refunding Certificates of Participation, 1992 Series (the "1992 Certificates") to a fixed rate obligation. There have been no material changes to the agreement. American International Group, Inc.'s current ratings are AAA and Aaa from Standard and Poor's and Moody's, respectively. The Soc Gen Swap Agreement was originally entered into in September 1, 1993, in order to convert the Refunding Certificates of Participation, 1993 Series (the "1993 Certificates) to a fixed rate obligation. There have been no material changes to the agreement. Soc Gen's current ratings are AA- and Aa3 from Standard and Poor's and Moody's. respectively. Requirement Summarize any new hedging products entered into by the District since the last report. Results: No new hedging products have been entered into by the District since the last report covering the period ended September 30, 2003. As stated above. the District utilizes only two hedging product agreements. the AIG Swap agreement entered into in 1992. and the Soc Gen Swap Agreement, entered into in 1993. Requirement Summarize any planned hedging product transactions and the impact of such transactions on the District; a description of each outstanding Hedging Product agreement, including a summary of its terms and conditions, the notional amount. volume, rates. maturity. the estimated market value of each agreement. the method of procurement (competitive or negotiated), and the full name. description and credit ratings of the agreement's counterparty and if necessary, its applicable guarantor. Results: The District currently is not planning any additional hedging product transactions at this time. Requirement List any amounts which were required to be paid and received, and any amounts which actually were paid and received under each outstanding hedging product over the last quarter; Results: Following are the amounts that were actually paid and received under the District's two swap agreements. All amounts required to be paid and received were actually paid and received. 1992 1993 Certificates Certificates AIG Swap Soc Gen Swap July Paid by the District to the Swap Provider _ $161.500.00 Paid by the Swap Provider on behalf of the District _ $ (36.786.89) August Paid by the District to the Swap Provider $2,968,278.75 $159,790.00 Paid by the Swap Provider on behalf of the District $ (529,798.21) $ (39,821.12) September Paid by the District to the Swap Provider _ $159.790.00 Paid by the Swap Provider on behalf of the District _ $ (46.151.59) Requirement List any credit enhancement, liquidity facility or reserves associated therewith including an accounting of all costs and expenses incurred, whether or not in conjunction with the procurement of credit enhancement or liquidity facilities under each outstanding Hedging Product. Results: Credit Enhancements, liquidity facility or reserves associated with the 1992 Certificates AIG Swap: -Lloyds Bank Letter of Credit cost for the quarter ended September 30, 2004: $727485.42 H\dept\aoenda\FAHR\FAHR200411104\04-99 SWAP doc Revised 06/04103 Page 2 q Q Credit Enhancements, liquidity facility or reserves associated with the 1993 Certificates Soc Gen Swap: -Soc Gen Irrevocable Letter of Credit Fee for the quarter ended September 30, 2004: $53,833.41 Credit Enhancements, liquidity facility or reserves associated with the 2000 Certificates: -Dexia Public Finance Bank Standby Certificate Purchase Agreement Commitment Fee for the quarter ended September 30, 2004: $73,766.34 Requirement An assessment of the counterparty risk, termination risk, and other risks associated therewith, which shall include the value of the collateral posted by counterparties and the District, the aggregate marked-to-market value for each counterparty and relative exposure compared to other counterparties, and a calculation of the District's Value at Risk for each counterparty. Results: The counter party risk and termination risk has been calculated by Public Resources Advisory Group (PRAG). PRAG used the value at risk methodology in determining the county party risk at maximum exposure over the term of the Swap Agreements. Counterparty exposure limits are important because they create diversification, so if any one counterparty goes bankrupt, the District's total loss would be limited to only one counterparty. The termination risk is what the District would have to pay the counterparty upon a termination of the Swap Agreement. Following are the counterparty risk an termination risk as of September 30, 2004: 1992 1993 Certificates Certificates AIG Swap Soc Gen Swap Counterparty Risk $ 3,220,915 $4,321,854 Termination Risk $13,053,258 $3,005,376 Requirement The report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. Results: No modifications have been made to the Policy since its adoption. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY N/A H-.ldeptlagendaTAHR%FAHR2004%1 1 04104-99.SWAP.doc Revised 06/04103 Page 3 BUDGETIMPACT j e ❑ 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 J NIA ATTACHMENTS NIA H.WepilagendalFAHR%FAHR200411104104-99 SWAP.doc Revised 06/04/03 Page 4 FAH R COMMITTEE Meeting Date To Bd.of Dir. 11/10/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-100 14(f) Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Ann Sullivan, Principal Human Resources Analyst SUBJECT: 1. 2004 NOVEMBER RECLASSIFICATIONS 2. DIRECTOR OF COMMUNICATIONS AND ADMINISTRATIVE SERVICES PAY RANGE PLACEMENT GENERAL MANAGER'S RECOMMENDATION 1. Approve the reclassification of two District employees and one position upgrade 2. Approve the pay range placement of the Director of Communications and Administrative Services SUMMARY 1. Approve the reclassification of two District employees and one position upgrade 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 four positions: three of these positions have incumbents and one position upgrade will be posted for promotional opportunities. Of the three positions having incumbents, two employees have met the four criteria outlined in the following Reclassification Guidelines: i. The incumbent has been in the position being reclassified for at least 6 months ii. Incumbent has been performing the duties of the reclassified position for at least 6 months iii. The incumbent is qualified for the reclassified position iv. The incurnbent's reclassified position is not being reclassified from a non-supervisory to a supervisory classification The two reclassification requests with incumbents that have met all four reclassification guideline criteria above will result in classification changes for current employees effective upon Board approval. The one position upgrade that has no current incumbent will be posted for promotional opportunities adhering to Human Resources Policy B150.00. Recruitment. Reclassify Public Information Specialist position to Senior Public Information Specialist. See Attachment 1. Reclassify Associate Engineer III to Engineer. See Attachment 1. Page 1 Upgrade Senior Engineer position in Division 640 — Source Control, to Engineering Supervisor position. Upgraded position will be posted as a promotional opportunity. See Attachment 1. 2. Approve the pay range placement of the Director of Communications & Administrative Services A customized market survey was conducted in October 2003 containing only the Executive Management Team class titles. Purpose of the market survey was to adjust pay grades for EMT classifications. Surveyed were the 13 comparable agencies gathering information on job titles, pay range minimum and maximum, and car allowance amount if applicable. Car allowance amounts were then added to the market survey range maximum. Adjusted pay grades for the EMT classifications were then determined by looking at the EMT pay range maximum that was closest to the 75th percentile of the market survey data. For the Communications Services Manager the 75th percentile of the market amounted to $118, 548. The closest pay range maximum to that arnount was Pay Grade (PG) 94 with a range maximum of $120,012. Based on this data, the position was adjusted to PG 94 having a 25% range spread. In April 2004 Administrative Services responsibilities was added to the position of Communications Services Manager. With these additional responsibilities, the position title changed to Director of Communications & Administrative Services. An assessment of the additional responsibilities was conducted through a job analysis. Based on that job analysis assessment, an internal comparative approach was utilized in determining the most appropriate pay range placement. With the internal comparative approach, it was important to recognize the additional responsibilities of the Administrative Services Division. The most appropriate pay range placement was accomplished by placing the position at Pay Grade (PG) 101 ($7,557 - $11 ,336) having a 50% range spread as all other Executive Management positions. See Attachment 2. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY The additional cost for the salary increases as a result of the reclassifications having incumbents, and range placement movement of the Director position for the remainder of FY04/05 (November 26 to June 30) is 59,180. Annualized cost of the salary increases as a result of the reclassifications having incumbents, and range placement movement of the Director position is $15,912. Page 2 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 N/A ALTERNATIVES Maintain current classifications, and adjust duties to be consistent within current classifications. Vacant positions to remain the same. Director of Communications & Administrative Services remains in current pay range. CEQA FINDINGS N/A ATTACHMENTS 1. November 2004 Reclassification Cycle Summary 2. Executive Pay Schedule — Pay Range for Pay Grade 101 Page 3 Attachment 1 November 2004 Reclassification Cycle Summary Reclassifications Employee Division Current Classification Proposed Classification Supporting Data Senior Public Information Reclassification Recommended. Cabral,Jennifer 130 Public Information Specialist Specialist Performing duties of recommended classification for at least 6 months. Reclassification Recommended. Sohanaki,Roya 640 Associate Engineer III Engineer Performing duties of recommended classification for at least 6 months. Position Upgrade Divisionj Current Classification I Upgraded Classification 640 Senior Engineer Engineering Supervisor ATTACHMENT 2 EXECUTIVE PAY SCHEDULE as of 07/09/04 Pay Grade I 1st Quartile 2nd Quartile Midpoint 3rd Quartile 4th Quartile 101 $90,688-$102,024 $102,025-$113,360 $113,361 $113,361 -$124,696 $124,697-$136,033 COMPONENTS OF PAY GRADE RANGE 1. The Executive Pay Schedule has a 50% range spread from the minimum of the range to the maximum of the range. 2. The 50% range spread is broken into 4 sections called Quartiles. 3. Each Quartile has an associated percentile and range spread. 4. The Midpoint or 50th percentile is considered the middle value of average salary data that companies report. 5. The maximum of the range labeled the 4th Quartile, is equivalent to the 75th percentile of the market at whicl all District pay range maximums are set. 6. The 62nd percentile of the market 75th is equivalent to the top of the 3rd Quartile. SAMPLE PAY GRADE RANGE 25"' Percentile 50th 76"' Percentile Percentile 1st 2nd I 3rd 4th PAY Quartile Quartile Quartile Quartile GRADE MINIMUM MIDPOINT MAXIMUM °.. ' , .✓a. r 20 $24,500-$28,174 $28,175-$31,849 $31,850 $31,850-$35,524 $35,525-$39,270�0 wak.:i' •r 's y"L t tz,. ." a:c-•'' x x ..K..: . i r i .`"rC- RM, 21 $26,950-$30,992 $30,993-$35,034 $35,035 $35,035-$39,079 $39,080-$43,120 FA H R COMMITTEE Meeting Date To Bd.of Dir. 11/10/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-101 14(g) Orange County Sanitation District FROM: Blake Anderson, General Manager SUBJECT: NON-BASE BUILDING PAYMENT GENERAL MANAGER'S RECOMMENDATION Approve a one time only non-base building payment for the Director of Technical Services in an amount not to exceed $7,948 for his service as Acting General Manager. SUMMARY Approve a one time only non-base building payment for the Director of Technical Services in an amount not to exceed S7,948 for his service as Acting General Manager. The General Manager began a medical leave of absence on September 1, 2004. The medical leave of absence is ending on October 18, 2004 for a total of eight work weeks. During this time period, the Director of Technical Services has assumed the duties of the General Manager, while at the same time continuing to handle his normal duties as Director of Technical Services. Current policy is silent at the Executive Management and Manager level regarding additional compensation for Directors and Managers who assume the responsibilities of an Executive Management position for an extended period of time. As an Executive Management employee, awarding the incumbent a one-time only non-base building payment will recognize the employee for assuming the additional duties of the higher level position. The assumption of these additional duties has been critical in ensuring the District's operations continued without interruption. PRIOR COMMITTEE/BOARD ACTIONS N/A PROJECT/CONTRACT COST SUMMARY Applying a one time only non-base building payment is based on an amount equal to 4.567% of base salary resulting in a payment of S7.948. Page 1 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 N/A ALTERNATIVES Do not approve the recommended non-base building payment. CEQA FINDINGS N/A ATTACHMENTS None Page 2 FAH R COMMITTEE Meeting Date To Bd.of Dir. 11/10/0-1 11/17/04 AGENDA REPORT Item Number Item Number FAHRN-102 14(h) Orange County Sanitation District FROM: Carol Beekman, Director of Communications & Administrative Services Originator: Dionne Kardos, Public Information Specialist SUBJECT: CORPORATE IDENTITY AND PUBLIC AWARENESS PROJECT GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to solicit Requests for Proposal and subsequently award a Consultant Services Agreement for Phase 2 of the Corporate Identity and Public Awareness Project, Specification No. CS-2003-16213D, in the amount not to exceed $20,000, as discussed in project summary below. SUMMARY OCSD researched the need for and the potential merits of updating its corporate identity (agency name and logo). The completed Phase 1 research work included interviews with Board members and employees, examination of peer agencies, news media review, and both qualitative and quantitative research, focus groups and telephone surveys among residential customers. The consultant who conducted Phase 1, JohnsonlUkropina, will present the research findings. Their final report is attached. Based on this baseline information, staff recommends no change in OCSD's name or logo, but to add a tag line to clarify our organization's services/products. Research findings conclude that our current company name does not deliver additional messaging to our customers. The goal of adding the tagline is to promote a positive agency image and identity to the public and other target audiences. This research was specifically conducted to obtain perceptions on the OCSD identity. However, the study has uses beyond this project—providing valuable insights into what our stakeholders think about OCSD, when they think of us, what they believe we do, and what they want from us. It provides input into our communications and outreach efforts—telling us how stakeholders perceive us and what their priorities are when it comes to water. PRIOR COMMITTEE/BOARD ACTIONS In December 2003 the FAHR Committee recommended and at the February 25. 2004 Board Meeting it was approved to award a contract for S50,000 for Phase 1 research. PROJECT/CONTRACT COST SUMMARY Funding for recommended Phase 2 work, not to exceed S20.000, would include outside professional consulting services to research and develop a tagline. which includes conducting an audit of OCSD's current identity (compiling and reviewing all logos and name applications. project associations, and branded collateral materials/items that are under OCSD's jurisdiction), and developing an internal/external corporate identity standards manual. H\dep1\agendaTAHRTAHR2004\1 1 04104-1 02 Gorporale ID doc Revised 06104/03 Page 1 BUDGET IMPACT If approved. S20,000 will come from general manager's contingency fund. ALTERNATIVES (and estimated consultant costs) 1.) No change in name or logo, no tag line, develop identity standards manual only. With this option nothing is changed and subsequent phases of this program would entail the building of a brand identity manual that includes the brand personality of the agency as well as the graphic standards for use of the existing name and the existing logo. Cost implication for building the manual is estimated from $5,000 to $7,500. 2.) Keep the name and change the logo. Under this scenario only the logo would be changed with the aim of bringing clarity of mission/scope to agency communication. Estimate for an organization the size of OCSD is $25,000-$50,000, plus the cost for developing an identity standards manual. As with Alternative 1, implementation costs could not be estimated with the data available. 3.) Change the name and change the logo. This implies and entails a massive effort, not just in developing a new name and logo to satisfy all the requirements of the agency's mission, strategies and positioning. but also the myriad of stakeholders in the process. As with Alternative 2. this can be a costly project. Estimates are in the $35,000 to S75.000 range, plus the cost for developing an identity standards manual with implementation costs unknown. CEQA FINDINGS N/A ATTACHMENT OCSD Corporate Identity Program Phase 1 Final Report, dated 10/04/04 submitted by Johnson IUkropina. CB dk H\dept\agenda\FAHRIFAHR2004N 104104-102 Corporate ID doc Revised 06/04/03 Page 2 FA H R COMMITTEE Meeting Date To Bd. of Dir. 11/10/2004 11/17/2004 AGENDA REPORT Item Number Item Number FAHR04-103 14(i) 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. 2004 GENERAL MANAGER'S RECOMMENDATION Receive, file and approve the District's Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2004, 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, 2004 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 ten 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 itern has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) H.\dept\agenda\FAHR\FAFIR2004\1104\04-103.CAFR doc Revised 8120/98 Page 1 ADDITIONAL INFORMATION None. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1 . Comprehensive Annual Financial Report for the year ended June 30, 2004. 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. H\dep1\agenda\FAHRTAHR2004\1 1 04104-1 03 CAFR doc Revised 8/20198 Page 2 t 1201 DOVE STREET,SUITE 660 ,f/, , _ -_f //jj NE'�JPORT BEACH,CALIFORNIA 92660 or�land eXYa4(1G�(GI elru% (949)221-0025 lVJL CERTIREG PUSUC ACCOUNTANTS 570 RANCHEROS DRIVE.SUITE 260 SAN MARCOS.CA 92069 (760)752.3390 September 3, 2004 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, 2004, and have issued our report thereon dated September 3, 2004. 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. t 1201 DOVE STREET,SUITE 680 NEWPORT BEACH,CALIFORNIA 92660 Moreiand �'�� r�s"'. i949)221-0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE,SUITE 260 SAN MARCOS CA 92069 (760)752-3390 September 3, 2004 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, 2004, and have issued our report thereon dated September 3, 2004. 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 I The Finance,Administration and + Human Resources Committee of the Orange County Sanitation District September 3,2004 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. 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 claims 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 Aduustments 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 t f The Finance,Administration and Human Resources Committee of the Orange County Sanitation District September 3,2004 Page 3 Disagreements With Mana ement 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. Major 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 Directors and management of the District and is not intended to be and should not be used by anyone other than these specified parries. 3 a 1201 DOVE STREET,SUITE 680 Ar NEWPORT BEACH,CALIFORNIA 92660 oreland (949)221.0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE.SUITE 260 SAN MARCOS,CA 92069 (760)752-3390 September 3,2004 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 30,2004. These procedures,which were agreed to by the District and the League of California Cities (as presented in the League publication entitled Article MIB Appropriations Limitation Uniform Guidelines),were performed solely to assist the District in meeting the requirements of Section 1.5 of Article XIIIB 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 by resolution 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. i A The Finance,Administration and Human Resources Committee of the Orange County Sanitation District September 3,2004 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 XIII-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. 4 ORANGE COUNTY SANITATION DISTRICT APPROPRIATIONS LIMIT WORKSHEET#6 FY 2003 —2004 BUDGET AMOUNT A. LAST YEAR'S LIMIT, as adopted 1 $59,660,000 B. ADJUSTMENT FACTORS 1. Population % 2.02% 2. Inflation % 0.59% Total Adjustment% 1 2.62% C. ANNUAL ADJUSTMENT$ $1,559,000 D. OTHER ADJUSTMENTS: Assumed Responsibility-Booking Fees Property Tax Collections (Lost Responsibility) (Transfer to Private) (Transfer to Fees) Sub-total - E. TOTAL ADJUSTMENTS - F. CURRENT YEAR LIMIT $61,219,000 4 r FA H R COMMITTEE Meeting Date To Bd. of Dir. 10/13/04 11/17/04 AGENDA REPORT Item Number Item Number FAHR04-91 15 Orange County Sanitation District FROM: Gary Streed, Director of Finance/Treasurer SUBJECT: PERMIT USER RATES FOR FLOW, BIOCHEMICAL OXYGEN DEMAND AND SUSPENDED SOLIDS GENERAL MANAGER'S RECOMMENDATION Adopt Ordinance No. OCSD-24, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Revised Table G re Permittee Charges for Use and Reaffirming All Other Charges: "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Sanitary Sewer Service Charges: Establishing Capital Facilities Capacity Charges; Adopting Miscellaneous Charges and Fees relating to Industrial Charges, Source Control Permittees and Wastehaulers; and Repealing Ordinance No. OCSD-22". SUMMARY In July, staff advised the Board that we discovered an inappropriate credit had reduced the calculation of the rates that individual Permit Users pay to compute their annual sewer service charge based upon their actual flow. BOD and SS discharge. The total funds that needed to be raised for the year had been reduced by the total property taxes that were expected, while each Permit User's actual annual bill was subsequently reduced by their actual property taxes allocated to the District. Correcting this double credit was expected to recover approximately S1.7 million per year. In order to brief the Board in July, the staff work behind the recommended solution to this property tax credit calculation was rushed: the immediate computation was addressed, but the opportunity to review the entire calculation was deferred. In the time between the first reading of the proposed Ordinance and the second reading in August, staff completed that analysis, developed additional recommendations and asked that consideration of the Ordinance be postponed until October when a detailed explanation of the calculation and the formula could be provided. At the September FAHR Committee meeting, staff presented a revised formula and rates that were based upon the Validated Capital Improvement Plan through 2020 that was developed subsequent to the Board's decision to meet secondary treatment discharge standards, the actual O&M costs of 2003-04. and the budgetary requirements for 2004-05. This formula excluded the reduction of total needs by property tax receipts. The Committee was generally supportive of this methodology. The remaining question was whether or not it was appropriate to include the cost of CIP projects for additional capacity in these rates. Staff has reviewed that question and determined that additional capacity projects should be excluded from the calculation. In 2003-04, the Board adopted a new methodology to calculate Capital Facilities Capacity Charges (CFCCs) that is based entirely upon the projected increased flow and demand and the cost of facilities to meet those requirements. Additionally. Permit Users who exceed their baseline capacity rights are required to pay Supplemental Capital Facilities Capacity Charges to fund the additional facilities that they will require. Because these additional capacity projects are now funded from special fees. staff believes it is inappropriate to include them in the Permit User fee rates. This report will explain the process of calculating the Permit User rates, will discuss the various assumptions involved, will evaluate alternative calculation methods and will present the staff recommendation for a thorough discussion by the FAHR Committee. PRIOR COMMITTEE/BOARD ACTIONS 1. The Committee reviewed and recommended rates for 2004-05 in April, 2004, and those rates were adopted by the Board. 2. In July 2004, the Board introduced Ordinance No. OCSD-24 for first reading. 3. In August 2004, the Board deferred consideration of adoption of Ordinance No. OCSD-24 until October 2004. 4. In September 2004. the Committee reviewed alternative rate calculation methods and requested evaluation of an additional alternative. PROJECT/CONTRACT COST SUMMARY The financial cost to the District of implementing the staff recommendation will be minimal. A notice of the proposed rates will need to be mailed to every Permit User informing them of the change that is proposed and the rates that are projected for 2004-05, 2005-06. 2006-07 and 2007-08. Of course. the Board will consider these rates separately each year along with the annual sewer service fee rates. Providing the notice through 2007-08. will put all users on the same notification schedule. The cost to some Permit Users will be significant. A schedule is attached that estimates the total annual cost to each Permit User during the planning period. There will be additional, but unquantified costs to the District from explaining these costs to various Permit Users. There will be additional revenues to the District from the Permit Users who have benefited from the inappropriate reduction of rates by the amount of property tax receipts. H\depl\agenda\Board Agenda Reports\2004 Board Agenda Reports\1104\Item 15 Ordinance 24,doc Revised 06/04/03 Page 2 V, 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 the inception of the Permit User Fee program in 1970, users of the District's system that discharge high volumes or high strength wastewater have been required to obtain a discharge permit (either a Class I or Class II Permit) and to pay extra fees for the cost of service. The fees are initially calculated on the basis of actual flow, BOD and SS discharged to the sewer and subsequently reduced by the actual property taxes they have paid to the District. This practice was intended to ensure that these users paid their actual cost of service through a combination of user fees and property taxes. There are approximately 500 Permit Users that pay for sewer services based upon their actual flow, BOD and SS. The individual user rate that was adopted for 2004-05 for each of these parameters was calculated based upon net revenue requirements for O&M and the CIP, after subtracting other projected revenues, including property taxes, from our total revenue or spending requirements. In July, staff recommended that it was appropriate to modify the computation of the rates for flow, BOD and SS so that Permit Users were not allowed two reductions for property taxes. The attached staff report provides a very detailed accounting of the steps involved to calculate the individual rates for flow, BOD and SS for Operations & Maintenance (O&M) expenses, the CIP and for Certificate of Participation (COP) Service. The most important factors or allocations that are used in the calculations are shown in the following table. Cost Parameter Allocations Collection Treatment& Collection Treatment& System O&M Disposal O&M System CIP Disposal CIP COP Service Flow 50% 12% 90% 35% 50% BOD 34% 10% 33% 27% SS 50% 54% 32% 23% Requirement- $22,605,790 1 $86,614,140 1 $5,199,433 1 $19,799,969 1 $38,757,502 The theory, philosophy, formula and allocations were used to estimate the individual Permit User rates for 2004-05 and the following three fiscal years. All of these calculations are based upon the cash flow projections in the 2004-05 budget. The actual rates for the years beyond 2004-05 will be brought to the Board as a part of each year's financial actions; they are not a part of this action. H:1dep1%agendMBoard Agenda Reports12004 Board Agenda Repons111WItem 15.Ordinance 24.doc Revised: 06/04/03 Page 3 1 t Adopted Proposed Estimated Estimated Estimated ,p Description 2004-05 2004-05 2005-06 2006-07 2007-08 Flow per m $368.58 $577.30 $637.55 $711.27 $773.32 BOD per 1000 lb $248.55 $270.68 $288.50 $311.21 $330.53 SS per 1000 lb $238.45 $414.27 $432.14 $454.19 $473.50 Avg. Permit User @ $18,784.67 $25,395.71 $27,213.12 $29,475.80 $31,400.84 14 mg, 40k#, 16k# Estimated Total $8,490,633.10 $11,478,852.42 $12,300,318.42 $13,323,050.89 $14,193,168.90 Fees Using 2002-03 Quant. ALTERNATIVES Alternatives are discussed in the attached staff report and include different effective dates for the Permit User rates, changing the allocation of costs to flow, BOD and SS in some or all cost categories, and various reductions to the budgeted requirements. CEQA FINDINGS N/A ATTACHMENTS 1. Staff Report 2. Schedule of Estimated Impact on Permit Users By Flow, BOD and SS 3. Schedule of Estimated Impact on Permit Users to 2007-08 4. Permit User Rate Calculation Model (4) 5. Average "Cash-Funded" Validated Capital Improvement Program 6. Allocation of 2003-04 Treatment and Disposal Costs to Flow, BOD and SS 7. Allocation of Validated Capital Improvement Program to Flow, BOD and SS 8. Expense and Cost Allocations 9. Memo from General Counsel dated October 20, 2004 10.Ordinance No. OCSD-24 GGS Mdepl%agendalBoard Agenda Reports12004 Board Agenda Reports111041 Iem 15.Ordinance 24.doc Revised: 06/04/03 Page 4 HS SAW O 1 VWV Ol , hg iH October 13, 2004 STAFF REPORT Calculation of Permit User Rates For Flow, Biochemical Oxygen Demand and Suspended Solids Since the inception of the Permit User Fee program in 1970, users of the District's system that discharge high volumes or high strength wastewater have been required to obtain a discharge permit (either a Class I or Class 11 Permit) and to pay extra fees for the cost of service. These extra fees are initially calculated on the basis of actual flow, biochemical oxygen demand (BOD) and suspended solids (SS) discharged to the sewer and that calculated total is subsequently reduced by the actual property taxes they have paid to the District. This practice was intended to ensure that these users paid their actual cost of service through a combination of user fees and property taxes. There are approximately 500 Permit Users that pay for sewer services based upon their actual flow, BOD and SS discharge to the sewer. The individual user rate that was adopted for 2004-05 for each of these parameters was calculated based upon net revenue requirements for operations and maintenance (O&M) and the validated capital improvement program (CIP), after subtracting other projected revenues, including property taxes, from our total revenue and spending requirements. In July, staff recommended that it was appropriate to modify the computation of the rates for flow, BOD and SS so that Permit Users were not allowed two reductions for property taxes. During the past few months, staff has re-evaluated each of the assumptions that are involved in calculating these rates. Central to this process was the goal to verify how our costs are allocated to, or based upon, flow, BOD and SS. This report contains the results of those evaluations. Attached to this report is a spreadsheet that calculates the proposed rates for 2004-05. Each of the lines in this spreadsheet is numbered for reference and those line numbers are included in the descriptions that follow. Component Costs There are five component costs that must be funded each year. These are: O&M in the collection system, O&M in the treatment plants, CIP in the collection system, CIP in the treatment plants and certificates of participation (COP) OCSD P.O.Box 8127 : Fountain Valley,CA 92728-8127 (714)962.2411 Calculation of Permit User Rates Page 2 of 6 October 13, 2004 service. Each of these components must be allocated to flow, BOD or SS before rates can be calculated. A column is included in the attached spreadsheet for each of these types of costs. O&M in the collection system has historically been allocated 100% to flow because there is no treatment or removal of BOD or SS in the sewers. A closer review of the sewage transportation process and of a change in budget preparation methods has led to a change in these allocations. Line cleaning expenses are allocated to solids, the new FOG program is allocated 70% to solids and the odor control program is allocated 90% to solids. When these allocation percentages are applied to the 2004-05 budget, the resultant overall percentages are 50% flow and 50% solids. (Column A, lines 1, 7, 8-11) CIP in the collection system has also historically been allocated 100% to flow. However, because some of the rehabilitation, refurbishment and replacement work in the sewers has been caused by gasses in the wastewater that are formed from the BOD, 10% of the collection system CIP is allocated to BOD in accordance with recommendations in the Interim Strategic Plan Update. Adjustments to the budgeted CIP are discussed later in this report. (Column B, lines 1, 7, 8-11) O&M in the treatment plant allocation percentages are calculated each year based upon the actual expenses from the year before. Each of the major unit processes (preliminary treatment, primary treatment, secondary treatment, solids disposal, effluent disposal) are allocated appropriately to flow, BOD or SS in order to calculate an average allocation for the year. Based upon the actual costs for 2003-04, the 2004-05 budget for treatment plant expenses is allocated 12% to flow, 33% to BOD and 54% to SS. (Column C, lines 1, 7, 8-11) CIP in the treatment plant is the most difficult to properly allocate. Every Master Plan or Strategic Plan requires the engineering team to evaluate every project that is proposed for the planning period and to develop the appropriate allocation ratio for that project. For example, a headworks project would be allocated 75% to flow— 5% to BOD — 20% to SS, while a secondary treatment project would be allocated 93% to BOD — 7% SS. When all of the projects have been allocated, a weighted average is determined for the CIP through the planning period. These weighted averages may differ for each Strategic Plan based upon the level of treatment proposed or other major Board decisions. The result of this effort for the Validated Capital Improvement Program in 2003 for the treatment plants, after removing the projects for new capacity, is 35% to flow— 33% to BOD — 32% to SS. Adjustments to the budgeted CIP are discussed later in this report. (Column D, lines 1, 7, 8-11) COP service is the principal and interest we pay on the money we borrow in the municipal finance market. The District borrows only for the CIP, not for O&M. Calculation of Permit User Rates Page 3 of 6 October 13, 2004 Because the COP (debt) service is related exclusively to the CIP and to the entire CIP, the annual payments are allocated to flow, BOD and SS based on the weighted average of the CIP for the collection system and for the treatment plants after removing the projects for additional capacity. This average is 50% to flow— 27% to BOD —23% to SS. (Column D, lines 1, 7, 8-11) These allocation percentages are applied to the projected expenses or costs of the collection system O&M, treatment plant O&M and COP service in order to determine the total allocation of funding requirements to flow, BOD and SS. (Columns A-E, lines 12-16) Capital Improvement Program Adjustments The CIP for the planning period through 2020 is very much higher in the first few years than in the later years. In order to avoid an immediate rate spike when the CIP is the highest, the average annual CIP through 2020 is used to calculate the rates. In addition to avoiding an immediate rate spike, this method will provide for smooth rate increases over time. For example, the average CIP for the planning period is about $150 million, while the budgeted CIP for 2004-05 is over $231 million. (Columns B & D, line 1) At the September FAHR Committee meeting, the Directors were advised that total and average Validated CIP requirements that were included in the rate alternatives that were being reviewed included all of the projects, including those for additional capacity. The Board had previously adopted a policy to fund additional capacity projects from Capital Facilities Capacity Charges (CFCCs) and Supplemental CFCCs collected from new and expanding users. Because these additional capacity projects will not be built unless there is an increase in demand and because there is an alternative method of funding them, these projects have been removed from the Permit User rate calculation. This change removes $862 million of requirements over the planning period to 2020. Not all of our CIP is initially funded through user fees or CFCCs. The Board has decided to fund $1.4 billion of the CIP by borrowing. This is approximately 56% of the Validated CIP through 2020. Borrowing defers the need for user fees. Because we include the annual COP service in the user fee rate calculation, it is appropriate to reduce the budgeted CIP outlay by 56% to avoid double counting the CIP and the COP service. This recognition of the requirement to include only the "cash-funded" CIP reduces the average annual VCIP requirement by $54 million. A separate schedule of the adjustments to the Validated CIP discussed above is included with this package. (Columns B & D, lines 3-4) } Calculation of Permit User Rates Page 4 of 6 October 13, 2004 ° Impact of Revenues At this point, the adjusted cash needs for the year have been determined; they have been allocated to flow, BOD and SS. Rates could be calculated for each of these wastewater parameters. However, it seems to be appropriate or fair to reduce these total needs by projected revenues from other sources, notably interest income and connection fees (Capital Facilities Capacity Charges or CFCCs). While income from these sources does not reduce the cost of service, it does reduce the total amount of revenue needed from all other sources. Interest income is basically earned on the average District reserves, or cash balances, during the year. Because the annual O&M needs are funded completely each year by user fees collected that year and our reserves are principally held to meet future capital needs, the annual interest income has been allocated to Collection System CIP, Treatment Plant CIP and COP Service. Once in these three categories, the interest income is allocated to flow, BOD and SS in the ratio of the capital improvement program requirements. The interest income budget for 2004-05 was $20.5 million. (Columns B, D & E, line 6) Connection fees (CFCCs) are collected from new or expanding users to fund CIP for additional capacity projects. Because the additional capacity projects were removed from the Validated CIP in this rate calculation model, no adjustment should be made for the budgeted connection fee revenues. Quantities of Flow, BOD and SS Each Master Plan or Strategic Plan contains a flow projection for the planning period. The current Strategic Plan projection is for an average daily flow of 321 million gallons in 2020. Each year this projection is reviewed by staff and a flow estimate for the next year is developed. The current estimate for 2004-05 is 250 million gallons per day or 91,250 million gallons per year (91 billion). (Column "Description," line 18) The average BOD and SS concentration is reported each year in the O&M Annual Report for each plant along with the actual flow. The concentration for each is converted to mass, in pounds, for each plant and then divided by the total actual flow to develop a weighted average concentration for both BOD and SS for the combined treatment plants. The most recent, 2002-03, annual average concentration for BOD was 228 milligrams per liter and the concentration for SS was 232.6 milligrams per liter. These concentrations are then combined with the budgeted flow to determine the budgeted pounds of BOD and SS. (Column "Description," lines 19 & 20) Individual Rate Calculations Dividing the total requirement for flow by the total budgeted flow produces a rate for flow. The same process is followed for BOD and SS. These rates would Calculation of Permit User Rates Page 5of6 o October 13, 2004 generate all the funds required for the average year if every user was billed based upon actual flow, BOD and SS. (Columns A, B, C, D & E, lines 18-20) Change from Prior Calculation Model Beginning in 1998-99, an additional step was added to reduce the parameter rates even more. The intent of this adjustment was to make the Permit User parameter rates equivalent to those implicit in the annual flat rate sanitary sewer service user fee. These individual rates are the de facto rates paid by all of the users who do not have Source Control permits. These rates for 2004-05 are significantly lower than the "requirement-based rates" calculated to this point because $185 million of the actual budgeted needs will be funded from "reserves" and another $28 million will be received as property taxes. For the past few years these reduced de facto rates were presented to the Board for adoption as Permit User rates. The issue with using these rates comes from the Ordinance that provides for Permit User rates. Ordinance No. OCSD-01 requires that the annual cost of service calculated from the actual Permit User discharge and the adopted Permit User rates must be reduced by the property tax paid by that user. Those taxes have already been considered during the calculation of the reduced rates that are equivalent to the flat rate sanitary sewer service user fee. Correcting this calculation was the original intent of staff in July. The proposed model does not reduce the Permit User rates for property taxes as that reduction is made for each individual Permit User based upon that Users specific property tax allocation to the Sanitation District. The resultant rates for 2004-05 are higher than the rates that were presented to the Board and adopted in April as shown in the following table. Percent Description Adopted Proposed Change Flow per m $ 368.58 $ 577.30 57% BOD per 1000 lb $ 248.55 $ 270.68 9% SS per 1000 lb $ 238.45 $ 414.27 74% Avg Permit User @ $18,784.67 $25,395.71 35% 13 mg, 40 k#, 16 k# Alternatives Providing the Directors agree with this proposed method of calculation and wish to recommend that these rates be adopted, it will then be necessary to determine an effective date. The options include: • January 1, 2005, as that will be subsequent to the public hearing and the action and will provide Permit Users some opportunity to adjust their processes, Calculation of Permit User Rates Page 6of6 October 13, 2004 • July 1, 2005, which would finish 2004-05 with the rates that have been previously adopted and use the proposed methodology beginning in fiscal year 2005-06. A January 1, 2005, effective date clearly meets the requirements of public notice, public hearing and the referendum period. Having two rates for a year is problematic for staff, but could be accommodated in the reconciliation process. Invoices during the year are based upon estimated quantities and are reconciled to actual at year end. The rate adjustment could be included in that process. Holding this methodology in abeyance until the next rate adoption cycle is the simplest administrative option. The Board will need to adopt rates for 2005-06 in April or May 2005, and will have to conduct a Proposition 218 notification of all users. This notification will include Permit Users, but they could also receive a special notice. The rates that have been adopted are lower in each category than the proposed rates, so no Permit User is being overcharged. The problem of double credit for Permit User property taxes would remain for another year. Permit User property taxes are estimated to total $908,000. One individual Permit User accounts for$559,000 of that amount and no additional Permit User fees are collected from that user. This means the approximate total Permit User fees that would potentially be improperly offset by property taxes is $349,000. GGS H:\dept\fin\210\CRANE\FAHR\FAHR2004\OCTOBERAttachment_1_Staff Report Permit Users 10-2004.doc 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 1 of 13 Based Upon 2002-03 Actual Discharge Quantities Est[mated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total Share of Fee Fee Correct Percentage City Permit User Name Property 2004-05 2004-05 Calculation Increase Flow BOD SS Tax Adcpted Prcpased Method (MG) (Ibs) (lbs) ANAHEIM ALSTYLE APPAREL-ACTIVEWEAR MFG.CO. INC. 3,876 635,674 833,276 197,602 31.1% 360.6538 1.541,360 501,739 ANAHEIM M C P FOODS INC. 261 403,506 449,574 46,008 11.4% 16.4867 1.554,067 46,840 ANAHEIM NOR-CAL BEVERAGE CO.INC.(MAIN) 1,898 249,169 297,107 47,948 19.2% 38.9144 827,333 122,382 ANAHEIM NOR-CAL BEVERAGE CO.INC. (TETRA) - 161,038 173,844 22,607 16.1% 23.3847 640,446 33,9W ANAHEIM DISNEYLAND RESORT-DCA 810 131,125 180,003 58,879 44.9% 94.7449 197,643 197,643 ANAHEIM EXPO DYEING AND FINISHING INC. 856 87,239 118,884 31,645 38.3% 105.4495 161,547 $4,471 ANAHEIM SUNDOR BRANDS INC A PROCTER a GAMBLE CO 6,122 107,719 127,408 19,688 18.3% 27.1223 360,115 34,457 ANAHEIM STEPAN COMPANY 2,670 65,217 61,518 6,302 11.4% 7.3083 210.697 647 ANAHEIM STEINER CORP DBAAMERICAN LINEN SUPPLY - 50,947 65,360 14,413 28.3% 21.5522 136.249 39,368 ANAHEIM PRECISION ANODIZING AND PLATING INC. 308 61,016 86,176 35,159 68.9% 34.7895 1,635 168,469 ANAHEIM ANAHEIM MEMORIAL MEDICAL CENTER - 48,207 66,956 20,749 44.9% 33.3875 69,613 69,613 ANAHEIM DYNAMIC DETAILS INC. 28 31,035 46,363 15,329 49.4% 46.6497 28,668 28,316 ANAHEIM SIOUX HONEY ASSOCIATION C40P 890 36,094 39,666 3,771 10.4% 2.1595 140,914 1,149 ANAHEIM DON MIGUEL MEXICAN FOODS INC. 303 33,221 44,201 10,990 33-1% 14.4226 7%233 35,480 ANAHEIM K CA ELECTRONICS INC. 3,217 19,393 29,560 10,167 62.4% 39.2034 10,306 9,9m ANAHEIM WEST ANAHEIM MEDICAL CENTER 1,9es 23,231 33,663 10,431 44.9% 16.7858 34,998 34,998 ANAHEIM HARRYS DYE&WASH INC 182 17,502 26,027 7,525 43.0% 21.0879 25,138 14,600 ANAHEIM TAC WEST,INC. - 18,710 24,247 5,537 29.6% 11.6491 46,692 11,769 ANAHEIM CITY OF ANAHEIM-WATER SERVICES - 19,350 33,219 13,669 71.7% 8.0756 95 71,658 ANAHEIM U.W.M.C.HOSPITAL CORPORATION 3,883 14,719 21,328 6,e09 44.9% 10.6362 22,174 22,174 ANAHEIM 13RIOGFORD FOODS CORPORATION 768 14,865 20,758 6,693 39.6% 9.1297 27,877 19,171 ANAHEIM WEYERHAEUSER COMPANY 7,751 13,728 19,076 5,346 38.9% 9.1103 26,073 16,304 ANAHEIM IDEAL ANODIZING INC. 264 13,385 22,580 9,195 66.7% 0.8475 718 41,707 ANAHEIM MULTI-FINELINE ELECTRONIX INC. 847 9,8m 14,575 4,709 47.7% 16.1614 9,990 7,628 ANAHEIM S&S POLISHING/PLATING 11 9,888 10,175 6,286 63.6% 13.7040 673 19,377 ANAHEIM ANAHEIM GENERAL HOSPITAL 1,997 10,993 16,930 4,936 44.9% 7.9434 16,662 16,562 ANAHEIM DANONE WATERS OF N.A.-ANAHEIM e58 6,983 10,843 3,659 55.3% 17.9175 995 554 ANAHEIM DRS TECHNOLOGIES INC 1,093 7,022 10,645 3,623 51.6% 13.0501 4,543 4,643 ANAHEIM ARTISTIC PLATING&METAL FINISHING INC. 260 0,616 9,965 3,350 50.6% 11.4455 5,004 4,835 ANAHEIM DELPHI AUTOMOTIVE SYSTEMS 2,234 5,936 8,974 3,038 51.2% 9.91M 4,390 4,871 ANAHEIM INTEC PRODUCTS INC. 219 8,543 14,511 5,268 69.9% 3.9456 509 29,197 ANAHEIM HAWK INDUSTRIAL UNIFORM 114 6,563 9,404 2,841 43.3% 5.9494 10,089 7,830 ANAHEIM MICROMETALS INC.#2 792 4,446 6,373 1,927 43.3% 5.2761 6,325 3,899 ANAHEIM UNIVERSAL ALLOY CORP. 855 4,113 6,929 1,816 44.1% 6.6353 5,350 2,964 ANAHEIM CEROMET INC. 311 4,966 6,078 1,111 22.4% 2.0917 15,012 1,848 ANAHEIM AMERICAN CIRCUIT TECHNOLOGY INC. 322 3,690 6,423 11834 51.1% 6.6465 2,445 2,232 ANAHEIM PRIVATE LABEL LABORATORIES 413 4,848 6,498 651 13.4% 0.2325 18,055 1,161 H:\deptlHn\210lSTREED\Exoel\Permit Users\2002-03 recon and rates Oct 2004.xis 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 2 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total City Permit User Name Share or Fee Fee Correct Percentage Flow Boo SS Property 200405 2004-05 Calculation Increase (MG) (Ibs) ([be) Tax Adapted Proposed Method ANAHEIM COPPER CLAD MULTILAYER PRODUCTS INC 3,237 6,045 1,808 55.8% 6.0918 1,603 4,034 ANAHEIM LINCO INDUSTRIES INC. 64 3,961 6,681 2,620 68.1% 3.2995 677 10,910 ANAHEIM MAGNETIC METALS CORP 944 4,046 6,594 1,647 38.2% 1.6681 8,253 5,761 ANAHEIM Y K K(U.S.A)INC. 2,284 2,903 4,338 1,435 40.4% 5.6158 2,184 1,218 ANAHEIM J&H DEBURRING INC.#2 25 3,821 6,776 1,955 51.2% 1.3247 4,837 8,9m ANAHEIM BLACK OXIDE INDUSTRIES INC. 55 2,296 3,603 1,308 57.0% 4.5814 597 1,924 ANAHEIM A P W ENCLOSURE SYSTEMS,LLC 468 2,639 3,781 1,122 42.5% 2.7002 4,060 2,663 ANAHEIM CLASSIC PLATING INC. - 2,024 3,1(12 1,078 53.2% 3.9877 1,014 1,288 ANAHEIM ANAHEIM PLATING&POLISHING INC. Be 2,067 3,101 1,034 50.0% 3.5712 1,605 1,320 ANAHEIM BOEING COMPANY-BLDG.271 1,606 2,674 3,740 1,165 45.3% 2.1347 3,712 3,627 ANAHEIM GENERAL CERAMICS LLC 2,268 3,690 1,422 62.7% 2.7963 456 4,712 ANAHEIM SMT DYNAMICS - 2,333 3,390 1,057 46.3% 1.8364 3,402 3,402 ANAHEIM CALIFORNIA CUSTOM SHAPES,INC. 168 2,192 2,792 600 27.4% 1.5832 5,692 816 ANAHEIM CREST COATING INC. 272 2,160 2,753 603 28.0% 1.3333 5,574 1,145 ANAHEIM MILBANK WEST INC. 250 1,9w 2,811 842 42.8% 1.8581 3,053 2,200 ANAHEIM ESSEX ELECTRIC INC 915 1,968 2,735 777 39.7% 1.7635 3,452 1,889 ANAHEIM GUNTHER ATHLETIC SERVICE 22 1,698 2,609 813 47.9% 2.5562 1,716 1,373 ANAHEIM MURRIETTA CIRCUITS INC. 88 1,654 2,461 807 48.8% 2.1751 1,706 1,796 ANAHEIM ECONOLITE CONTROL PRODUCTS INC. 353 1,707 2,462 756 44.2% 1.4443 2,669 2,259 ANAHEIM CYTECH ENGINEERIED MATERIALS - 1,590 2,30e 716 45.0% 1.1788 2,372 2,373 ANAHEIM STAINLESS MICRO-POLISH INC. 93 1,156 1,711 me 48.1% 2.3054 833 309 ANAHEIM ADVANCE TECH PLATING INC.#2 126 1,176 1,835 660 56.2% 1.7249 604 1,631 ANAHEIM NEVILLE CHEMICAL COMPANY 0 1,056 1,598 542 61.3% 1.9686 700 657 ANAHEIM UOP LLC - 999 1,516 617 61.7% 1.0723 635 635 ANAHEIM KINSBURSKY BROTHERS SUPPLY INC. 71 1,113 1,649 536 48.1% 1.4611 1,197 1,162 ANAHEIM SUPERIOR PLATING - 885 1,361 478 63.6% 1.9708 325 325 ANAHEIM TAORMINA INDUSTRIES INC.#4 524 1,179 1,642 464 39.3% 0.9676 2,138 1,210 ANAHEIM PRECISION PAINTING 284 1,478 2,422 944 63.8% 0.3766 760 4,826 ANAHEIM AMERIMAX BUILDING PRODUCTS INC. 268 990 1,588 BOB 60.4% 1.4767 244 1,616 ANAHEIM ALLIED PACIFIC METAL STAMPING 478 1,132 1,409 278 24.6% 0.5544 3,239 613 ANAHEIM LEACH INTERNATIONAL 158 790 1,224 434 64.9% 1.6300 285 496 ANAHEIM NU-TEC POWDER COATING 196 993 1,395 401 40.4% 0.6009 1,820 1,340 ANAHEIM I P C CAL FLEX INC. 123 848 1,141 283 34.5% 0.8600 1,729 428 ANAHEIM JELLCO CONTAINER INC. 576 949 1,418 469 49.4% 0.6923 1,1e0 1,701 ANAHEIM ANAHEIM TRUCK DEPOT#2 BIN WASH 524 853 1,238 383 44.9% 0.6163 1,285 1,285 ANAHEIM SECHRIST INDUSTRIES,INC. - 822 1,214 382 47.7% 0.6401 1,117 1,447 ANAHEIM ELECTRORACK PRODUCTS CO.INC. 471 744 1,083 320 43.0% 0.5819 1,201 999 H:\deptTn1210\STREEDT-xoCPermit Users\2002-03 recon and rates Oct 2004.)ds e 11 Q) 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 3 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSO 60% Permit User Permit User Coat to Total Total Total City Permit User Name Share of Fee Fee Correct Percentage Flow BOD SS Property 2004-05 2004-05 Calculation Increase (MG) pbs) (lbs) Tax Adopted Proposed Method ANAHEIM R T I ELECTRONICS,INC- 8 692 1,006 313 45.2% 0.6217 1,024 1,029 ANAHEIM TAYLOR-DUNN MANUFACTURING COMPANY 1,464 1,642 2,377 736 44.8% 1.2090 2,480 2,432 ANAHEIM MILLENNIUM CIRCUITS SERVICES CORP - 651 716 165 29.9% 0.5169 1,299 161 ANAHEIM PICOFARAD INC. 62 654 825 271 49.0% 0.5654 629 792 ANAHEIM RTR INDUSTRIES 46 550 797 247 44.9% 0.3975 829 829 ANAHEIM RIGIFLEX TECHNOLOGY INC. 87 419 ew 187 44.5% 0.6432 508 234 ANAHEIM LINVATEC CORPORATION 38 454 668 204 44.9% 0.3281 684 684 ANAHEIM PACIFIC UTILITY PRODUCTS INC. 169 360 550 190 52.8% 0.5937 235 347 ANAHEIM IKON POWDER COATING - 396 548 152 38.5% 0.3639 722 344 ANAHEIM BRIDGEMARK CORP-DOWLING#2 - 264 413 149 56.0% 0.7155 - - ANAHEIM AQUARIAN COATINGS CORP 21 369 564 175 44.9% 0.2813 587 687 ANAHEIM AR0SERVICE 243 345 604 159 46.1% 0.2962 474 493 ANAHEIM PRECON,INC. 34 334 470 137 41.0% 0.2709 573 384 ANAHEIM A&R POWDER COATING INC. - 253 381 127 50.3% 0.4615 187 164 ANAHEIM ANAHEIM EXTRUSION CO.INC. 569 651 948 297 45.7% 0.4688 943 993 ANAHEIM UNITED CUSTOM POLISHING&PLATING 49 243 364 122 50.0% 0.4086 197 181 ANAHEIM ADVANCE TECH PLATING INC. - 218 340 121 56.6% 0.4279 78 173 ANAHEIM POWDERCOAT SERVICES INC.#1 25 238 351 113 47.7% 0.3058 264 249 ANAHEIM PACIFIC IMAGE TECHNOLOGY,INC. 197 301 104 52.7% 0.4080 97 94 ANAHEIM S M T DYNAMICS LLC 180 269 88 49.0% 0.2562 17e 176 ANAHEIM ELECTRO METAL FINISHING CORPORATION 91 188 271 83 43.9% 0.1443 292 283 ANAHEIM EXQUISITE DESIGNS INC. 121 188 67 54.9% 0.2938 27 27 ANAHEIM POWDERCOAT SERVICES INC.#4 138 203 87 49.4% 0.2008 127 127 ANAHEIM POWDERCOAT SERVICES INC.#2 25 162 235 73 44.9% 0.1170 244 244 ANAHEIM ACROSURR INC.#2 65 121 183 61 60.6% 0.1728 106 131 ANAHEIM POWDERCOAT SERVICES INC.#3 128 184 58 46.2% 0.1214 168 168 ANAHEIM M T S MICROELECTRONICS INC. - 129 187 58 44.9% 0.0937 194 193 ANAHEIM OLIVE OIL CO. 65 Be 127 41 47.2% 0.1207 95 76 ANAHEIM DETAILS INC N.DBA DYNAMIC DETAILS INC. 100 120 174 54 44.9% 0.0887 181 181 ANAHEIM TECHPLATE ENGINEERING CO.INC. - 80 118 38 47.0% 0.0813 108 128 ANAHEIM TRANSLINE TECHNOLOGY INC. 213 221 335 114 51.6% 0.3958 160 158 ANAHEIM REMEDY ENVIRONMENTAL SERVICES - 31 45 14 44.9% 0.0225 47 47 ANAHEIM CUSTOM POWDER COATINGS 26 38 12 44.9% 0.0189 39 39 ANAHEIM VEECO ELECTRO FAB INC.#2 89 88 134 45 60.3% 0.180 41 41 ANAHEIM ALL METAL PAINT STRIPPING INC.#2 598 89 126 0.0% 0.0437 164 144 ANAHEIM A P W ENCLOSURE SYSTEMS LLC SOUTH 4,473 1,636 2,481 0.0% 2.6000 1,227 1,578 ANAHEIM H.KOCH&SONS COMPANY 492 223 333 0.0% 0.3262 212 212 H:ldeptltin1210lSTREED1E=I\Permft Users12002-03 reoon and rates Oct 2004.rds 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 4 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSO 60% Permit User Permit User Cost to Total Total Total City Permit User Name Share of Fee Fee Correct Percentage Flow Boo SS Property 2004-05 2004-06 Celculaticn Increase (MG) (Ibs) (lbs) Tax Adopted Proposed Method ANAHEIM DISNEYLAND RESORT 559,204 468,867 705,635 140,431 26.2% 354.5820 731,346 731,346 BREA HEALTH CARE APPAREL SERVICES 442 14.480 20,406 5,925 40.9% 16.6040 23,419 12,349 BREA GERARD TILE e90 15,291 26.817 10,525 68.8% 4.7316 2,801 53,895 BREA COOPER AND BRAIN INC. 4 8,839 12,814 3,976 45.0% 15.4992 9,708 2,990 BREA WINONICS(BREA) 603 8,152 12,306 4,155 61.0% 16.1971 5,180 3,750 BREA HARTE-HANKS SHOPPERS 11330 8,902 11,768 2,865 32.2% 4.6353 21,063 7.905 BREA IQRKHILL RUBBER CO(SOUTH) 828 7,795 11,484 3,689 47.3% 8.0498 9,630 10.212 BREA ELECTRONIC PRECISION SPECIALTIES INC. 121 3,784 5,980 2,177 57.5% 8.4544 499 2,280 BREA BREA COMMUNITY HOSPITAL 3,176 4,850 7.027 2,178 44.9% 3.6041 7.308 7,306 BREA CRC RIM INC 1.690 3,597 6,384 1,788 49.7% 6.2437 3,313 3,525 BREA BRISTOL INDUSTRIES 684 2,830 4,255 1,425 50.4% 4.3756 2,394 2,609 BREA FINELINE CIRCUITS&TECHNOLOGY INC. 118 1,121 1,466 335 29.9% 1.0779 2,628 296 BREA SCISOREK&SON FLAVORS,INC. 375 1,184 1,502 318 26.9% 0.8409 3,114 418 BREA HARBOR TRUCK BODIES INC. 378 641 927 288 44.7% 0.4984 961 918 BREA MORAVEK BIOCHEMICALS INC. 3 371 581 190 61.2% 0.6624 281 261 BREA CENTRAL POWDER COATING - 274 368 94 34.2% 0.2652 670 147 BREA ENGRAVERS INK CO 85 116 184 69 69.9% 0.1137 54 250 BREA KIRKHILL RUBBER CO(SOUTH) 1,028 - - 0.0% - - BREA AERA ENERGY LLC#2 246 114 165 - 0.0% 0.0821 171 171 BUENA PARK DEAN FOODS CO.OF CALIF.INC(MILK PLANT) 1,418 169,434 216,490 47,056 27.8% 38.2970 488,307 163,225 BUENA PARK SABA TEXTILES INC. 11009 124,465 173,710 49,253 39.6% 129.0030 213,403 100,129 BUENA PARK SEVEN-UP BOTTLING COMPANY 766 120,741 142,264 21,523 17.8% 34.6324 405,378 30,279 BUENA PARK AMERIPEC INC. 584 96,278 112,239 15,081 16.0% 22.1770 332,831 22,560 BUENA PARK DEAN FOODS 00.OF CALIF.INC.(ICE CREAM) 615 67,620 87,680 20,053 29.7% 10.1365 181,045 79,231 BUENA PARK PEPSI-COLA BOTTLING GROUP 3,837 60,274 72,966 12,692 21.1% 18,6449 189,788 26,282 BUENA PARK K U A TEXTILES INC. 650 35,269 51,327 16,068 45.6% 28.8471 60,339 50,806 BUENA PARK SUNCLIPSE,INC.DBA CORRU KRAFT II 2.347 37,727 53.385 15,658 41.5% 10.7168 71,270 67,362 BUENA PARK CLEUGH'S RHUBARB COMPANY 216 29,344 36.456 7,112 24.2% 10.3142 66,100 17,371 BUENA PARK ULTRA WHEEL COMPANY 1,212 11,060 le,425 5,366 48.5% 15.9033 11,086 10,244 BUENA PARK PRIMATEX INDUSTRIES OF CA INC 335 9,817 16,235 5,418 65.2% 12.e3S0 6,273 14,766 BUENA PARK GEORGIA PACIFIC CORPORATION 3,808 7,119 8,781 1,682 23.3% 2.5314 21,288 3,772 BUENA PARK CROCKETT CONTAINER CORP. 676 4,444 6,169 724 16.3% 0.8970 16,491 1,106 BUENA PARK MEAD PACKAGING 1,906 3,240 4,400 1,160 35.8% 1.9064 6,879 3,471 BUENA PARK TRIM-LOKI R.T.P. 969 2,095 3,174 1,079 51.5% 3.6647 1.376 1,370 BUENA PARK HANSON-LORAN CO.,INC. 276 2,112 2,649 537 26.4% 1.1609 6,872 811 BUENA PARK ALLOY DIE CASTING CO. 456 1,648 2,395 748 45.4% 1.7335 2,222 1,915 BUENA PARK WEYERHAEUSER COMPANY#2 - 736 1,065 330 44.9% 0.5313 1,108 1,108 H:\dept\t1n\21MSTREED\Excel\Permit Usera\2002-03 recon and rates Oct 2004.)ds a ., f) 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 5 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total City Permit User Name Share of Fee Fee Correct Percentage Rory BOD SS Property 2004-05 2004-06 Calaladon Increase (MO) (Iba) (lbs) Tax Adapted Proposed Method BUENA PARK GENERAL CONTAINER CORPORATION 349 529 761 232 43.9% 0.4284 813 709 BUENA PARK GARDNER LITHOGRAPH,INC. 327 484 704 221 45.8% 0.4076 685 685 BUENA PARK DERM COSMETICS LAB'S INC. 169 339 413 75 22.0% 0.1070 1,047 166 COSTA MESA WEST NEWPORT OIL COMPANY 0 63,944 60,173 16,229 25.4% 43.9588 174,em 18,133 COSTA MESA FAIRVIEW STATE HOSPITAL - 69,893 94,028 24,13e 34.5% 32.5890 157,171 78,448 COSTA MESA LOS ANGELES TIMES COMMUNICATIONS LLC 8,296 20,670 25,617 4,841 23.4% 10.5488 60,439 7,405 COSTA MESA I C N PHARMACEUTICALS INC. 2,685 9,482 14,430 4,948 52.2% 18.6636 6,421 6,421 COSTA MESA VELIE CIRCUITS INC. 88 4,628 e,849 2,221 48.0% 8.5218 4,055 2,008 COSTA MESA SANMINA CORPORATION(AIRWAY) 1,671 3,785 6,829 2,046 64.0% 7.6862 1,623 2,300 COSTA MESA MESA CONSOLIDATED WATER DISTRICT - 3,464 6,440 1,97e 57.0% 4.6293 1,776 5,621 COSTA MESA SANMINA CORPORATION(REDHILL) 1,081 2,536 3,664 1,328 52.4% 6.4701 1,218 908 COSTA MESA EATON CORPORATION 192 3,093 4,503 1,710 65.3% 2.4084 2,585 e,437 COSTA MESA TOYOTA RACING DEVELOPMENT 242 2,906 4,210 1,304 44.9% 2.2(152 4,319 4,186 COSTA MESA PRIME TECHNOLOGIES,INC. 245 2,200 2,863 663 30.1% 2.0057 5,1e8 738 COSTA MESA SEMICOA SEMICONDUCTORS 137 1,312 1,ew e50 49.8% 1.9849 1,191 1,191 COSTA MESA CRITERION MACHINE WORKS 140 367 642 176 47.7% 0.32e5 485 651 COSTA MESA RAILMAKERS,INC. 51 135 196 61 44.9% 0.0975 203 203 COSTA MESA IRVINE SENSORS CORP. e99 248 362 - 0.0% 0.2916 314 263 COSTA MESA AVIATION EQUIPMENT STRUCTURES,INC. 535 380 551 1e 3.0% 0.2834 665 566 CYPRESS BOIENG COMPANY(CYPRESS) 888 1,798 2,eW 608 44.9% 1.2994 2,709 2,709 CYPRESS TAYCO ENGINEERING,INC. - 983 1,3w 404 41.1% 0.e582 1,732 1,298 CYPRESS HYATT DIE CASTING 8 ENGINEERING CORP. 630 744 1,we 334 44.9% 0.6373 1,120 1,120 FOUNTAIN VALLEY PRO-TECH e,257 12,094 3,837 4e.5% 16.2290 8,011 2,73e FOUNTAIN VALLEY PAYTON TECHNOLOGY CORP 7,609 11,508 3,897 51.2% 13.6517 6,292 5,292 FOUNTAIN VALLEY KODAK PROCESSING LABS 143 7,114 9,981 2,867 40.3% 9.9591 10,862 3,118 FOUNTAIN VALLEY OMNI METAL FINISHING,INC. 130 4,630 7,282 2,653 57.3% 10,0612 784 3,046 FOUNTAIN VALLEY CUSTOM ENAMELERS INC. 143 812 1,210 398 49.0% 1.1772 784 768 FOUNTAIN VALLEY SANMINA CORPORATION 116 782 1,077 296 37.7% 1.1513 1,301 146 FOUNTAIN VALLEY UNITED CIRCUIT TECHNOLOGY INC. 57 682 e48 288 45.7% 0.8111 698 463 FOUNTAIN VALLEY KENLEN SPECIALITIES INC. 12e 329 491 1e2 49.3% 0.5e38 278 219 FOUNTAIN VALLEY A 8 0 ELECTROPOLISH 167 278 432 154 65.2% 0.5794 94 174 FULLERTON KIMBERLY-CLARK WORLDWIDE,INC. 19,607 317,216 490,163 172,947 64.5% 451.6799 201,519 422,093 FULLERTON FULLERTON CULTURED SPECIALTIES 969 168,368 207,019 38,6w 23.0% 31.4280 518,277 117.289 FULLERTON DAE SHIN USA,INC. 1,180 126,454 179,191 52,707 41.7% 132.8300 199,711 118,954 FULLERTON VAN LAW FOOD PRODUCTS,INC. 564 156,874 199.584 43,711 28.0% 4.6960 440.157 187,636 FULLERTON Y2K TEXTILE CO.,INC. 1,996 110,382 148,734 38,373 34.8% 119.7883 219,995 48,368 FULLERTON CALIF STATE UNIV®FULLERTON - 71,197 104,305 33,108 46.5% 98.2000 81,699 61,424 H:ldept%ft210lSTREED1ExcellPermlt UserM2002-03 recon and rates Oct 2004.)ds 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 6 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total City Permit User Name Sh 20Fee Fee Correct Percentage Flow 800 SS 04-05 2004-06 Calculation Increase (MG) pbs) (lbs) Tax Adopted Proposed Method FULLERTON FAIRCHILD FASTENERS 833 22,109 32,915 10,805 48.9% 26.2354 23,849 27,310 FULLERTON WORLD CITRUS WEST 1,811 28,396 32,164 6,769 21.9% 8.3974 82,474 14,836 FULLERTON ST.JUDE MEDICAL CENTER - 17,680 25,619 7,039 44.9% 12.7750 26,636 26,636 FULLERTON ORANGE COUNTY METAL PROCESSING 50 13,424 22,024 8,800 64.1% 10,6508 386 25,641 FULLERTON BECKMAN COULTER,INC. 6,432 13,351 19,714 8,384 47.7% 14.4015 15,988 17,088 FULLERTON P C A METAL FINISHING,INC. 99 8,109 12,465 4,355 63.7% 18.3000 3,700 4,956 FULLERTON WINONICS,INC. 59 6,725 10,610 3,785 56.3% 16.2635 919 2,108 FULLERTON WESTERN YARN DYING 248 5,778 7,810 2,032 35.2% 8.7538 11,189 2,130 FULLERTON NELCO PRODUCTS,INC. 283 6,617 8,373 2,756 49.1% 8.0274 6,469 5,469 FULLERTON JOHNSON CONTROLS BATTERY INC. 2,174 5,054 7,901 2,80 56.3% 9.0172 1,935 5,241 FULLERTON CARGILL INC. 1,107 5,426 7,785 2,359 43.5% 6.2534 7,742 5,020 FULLERTON SUNCLIPSE,INC.(CORRUGATOR PLANT) 1,032 6,874 9,611 2,737 39.8% 1.6184 13,838 11,906 FULLERTON WEIDMANN WATER CONDITIONERS,INC. 20 3,941 6,313 2,372 60.2% 7.9213 213 4,060 FULLERTON MONOGRAM SYSTEMS 1,979 4,026 6,312 2,288 56.8% 3.4190 2,881 8,691 FULLERTON B 1 TECHNOLOGIES,INC. 1,654 2,079 3,058 977 47.0% 2.2038 2,590 2,614 FULLERTON KRYLER CORPORATION - 1,300 2,016 716 55.1% 3.1252 260 250 FULLERTON SUNCLIPSE INC. 1,032 1,853 2,593 740 39.9% 1.1293 3,443 2,436 FULLERTON SCIENTIFIC SPRAY FINISHES,INC. 25 1,228 1,789 571 46.5% 1.6540 1,426 1,105 FULLERTON CARAN PRECISION ENGINEERING 556 955 1,384 429 44.9% 0.6903 1,439 1,439 FULLERTON SANTANA SERVICES 15 389 642 253 65.0% 0.4538 34 896 FULLERTON OR SMOOTHIE ENTERPRISES 58 83 26 44.9% 0.0416 87 87 FULLERTON FULLERTON PLATING 398 142 215 - 0.0% 0.2750 85 81 GARDEN GROVE HOUSE FOODS AMERICA CORPORATION - 369,484 472,744 103,260 27.9% 76.7310 1,019,871 367,848 GARDEN GROVE U.S.DYEING&FINISHING INC. 660 209,560 289,649 80,089 38.2% 208.0300 380,501 160,667 GARDEN GROVE PILKINGTON AEROSPACE 2,361 18,543 30,066 11,523 62.1% 19.1630 6,843 42,052 GARDEN GROVE LINFINITY MICROELECTRONICS INC. 3,241 11,721 18,485 8,744 57.6% 27.3190 1,096 5,787 GARDEN GROVE IDEAL UNIFORM RENTAL SERVICE - 12,402 18,740 6,337 61.1% 7.7478 14,390 25,036 GARDEN GROVE GOODWIN COMPANY 142 7,976 9,328 1,352 17.0% 1.7556 27,415 2,167 GARDEN GROVE CATALINA CYLINDERSA DIV.OFAPP 638 5,092 7,505 2,413 47.4% 6.7488 6,689 4,995 GARDEN GROVE AIR INDUSTRIES CORP.-KNOTT 1,856 6,441 7,884 2,443 44.9% 3.9312 0,197 8,197 GARDEN GROVE COASTLINE METAL FINISHING CORP. 230 3,070 4,741 1,671 54.4% 5.9377 1,357 2,283 GARDEN GROVE ELECTRON PLATING III INC. 131 2,247 3,504 1,258 56.0% 5.1320 489 1,001 GARDEN GROVE BAZZ HOUSTON CO. 343 2,216 3,185 969 43.7% 3.0658 2,926 1,504 GARDEN GROVE CANNON EQUIPMENT WEST INC. 437 1,406 2,048 642 45.6% 1.2770 1,953 1,687 GARDEN GROVE LACEY CUSTOM LINENS 40 1,508 2,351 843 65.0% 1.1490 1,218 3,279 GARDEN GROVE AIR INDUSTRIES CORP.(CHAPMAN) 508 804 1,139 336 41.7% 0.6378 1,388 1,095 GARDEN GROVE D&S CUSTOM PLATING INC. 42 642 819 277 51.2% 0.8982 407 459 H:\deptltin1210lSTREED1ExcellPermit Usera12002-03 recon and rates Oct 2004-As s 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 7 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Coat to Total Total Total CRY Permit User Name Share of Fee Fee Correct Percentage Flay BOD SS Property 2004-05 2004-06 Calculation Increase (MG) pba) (Ifss) Tax Adopted Proposed Method GARDEN GROVE CD VIDEO INC - 4e0 e87 226 49.2% 0.6073 440 440 GARDEN GROVE BASIC ELECTRONICS,INC. 201 $61 479 118 32.7% 0.2176 833 308 GARDEN GROVE STAR POWDER COATING 9 45 69 14 31.4% 0.0306 106 30 GARDEN GROVE MIRACLE STRIPPING&PLATING,INC - 30 44 14 44.9% 0.0220 46 46 GARDEN GROVE GRAPHIC PACKAGING CORP. 2,043 1,326 1,921 0.0% 0.9599 1,995 1,885 HUNTINGTON BEACH BOEING COMPANY(GENERAL FAQ 5,970 89,944 137,487 47,544 52.9% 56.9220 84,640 192,113 HUNTINGTON BEACH JOHN A.THOMAS - 23,422 28,514 5,092 21.7% 11.6342 71,026 6,210 HUNTINGTON BEACH COLUMBIA HUNTINGTON BEACH HOSPITAL 908 14,631 21,200 6,570 44.9% 10.5715 22,042 22,042 HUNTINGTON BEACH NUEVO ENERGY CO(HB) 193 12,741 19,029 6,288 49.4% 11.4379 14,800 20,324 HUNTINGTON BEACH CAL-AURUM INDUSTRIES INC. 226 5,183 8,082 2,899 65.9% 13.0295 628 944 HUNTINGTON BEACH BRINDLEITHOMAS OIL COMPANY 59 5,767 6,765 908 17.3% 2.1800 19,342 639 HUNTINGTON BEACH CAMBRO MANUFACTURING 934 4,W8 7,169 2,222 44.9% 3.6750 7,454 7,454 HUNTINGTON BEACH PRECISION RESOURCE,CALIF DIV 626 3,832 5,469 1,e37 42.7% 3.8088 6,881 4,051 HUNTINGTON BEACH SPEEDY CIRCUITS,FACILITY#2 120 3,073 4,375 1,302 42.4% 4.7120 4,137 1,293 HUNTINGTON BEACH GARG-OIL PRODUCTION LLC 139 1,289 2,019 730 56.6% 3.4973 - - HUNTINGTON BEACH TIODIZE COMPANY,INC. 9e 1,417 2,189 772 54.4% 3.0931 488 655 HUNTINGTON BEACH CITY OF HUNTINGTON BEACH FIRE DEPARTMENT - 1,355 2,026 670 49.5% 2.6012 1,004 709 HUNTINGTON BEACH BOEING COMPANY(GRAHAM) - 1,550 2,246 698 44.9% 1.1200 2,336 2,335 HUNTINGTON BEACH CAPRO OIL COMPANY 22 708 1,106 400 5e.e% 1.9162 - - HUNTINGTON BEACH SOUTH COAST OIL CORPORATION 182 659 1,033 373 5e.e% 1.7892 - HUNTINGTON BEACH HB OIL OPERATIONS TRUST 22 847 1,222 376 44.3% 1.0490 1,137 744 HUNTINGTON BEACH SOLDERMASK,INC. 132 626 883 257 41.1% 0.3184 1,140 942 HUNTINGTON BEACH CEMPI INDUSTRIES INC. 176 469 691 222 47.3% 0.5315 500 660 HUNTINGTON BEACH LOCI GRAPHICS,INC. 144 $78 562 165 48.8% 0.7109 306 167 HUNTINGTON BEACH MILLETT INDUSTRIES - 418 607 190 45.4% 0.3409 602 698 HUNTINGTON BEACH M.S.BELLOWS 62 393 493 100 25.5% 0.1465 1,118 257 HUNTINGTON BEACH ROCK INDUSTRIES,INC. 97 301 442 142 47.1% 0.38" 347 308 HUNTINGTON BEACH SPEEDY CIRCUITS,DIV OF PJC - 321 465 144 44.9% 0.2320 484 484 HUNTINGTON BEACH PIER OIL COMPANY 35 206 320 116 56.6% 0.5550 - - HUNTINGTON BEACH PETROPRIZE 7 106 168 60 56.6% 0.2877 HUNTINGTON BEACH BRINDLEITHOMAS - 54 84 30 56.e% 0.1460 HUNTINGTON BEACH SIGNAL ASSOCIATES 3 25 39 14 56.e% 0.0683 HUNTINGTON BEACH SOUTH COAST OIL COMPANY - - - 0.0% HUNTINGTON BEACH ALEXANDER OIL COMPANY 3 0.0% HUNTINGTCN BEACH W.M.ELLIOTT 7 0.0% HUNTINGTON BEACH WILVIAN JEWELL RENNER 17 1 2 0.0% 0.0029 HUNTINGTON BEACH WILLIAM J.SCOTT 28 0.0% H:WeptNffn\2101STREEMExceINPermit Usera\2002-03 recon and rates Oct 2004.x1e 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 8 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit Uaer Coat to Tom Total Total Share of Fee Fee Correct Percentage City Permit User Name Boo SS Property 2004-05 2004-05 Calculatfan Increase Tax Adopted Proposed Method (MMG)G) ��) ��) HUNTINGTON BEACH ODONNELL OIL COMPANY 85 13 18 - 0.0% 0.0091 19 19 HUNTINGTON BEACH S&C OIL CORPORATION 106 - - - 0.0% - - - IRVINE ROYALTY CARPET MILLS INC. 165 276,068 347,410 71,341 25.8% 173.3160 752,704 105,273 IRVINE B. BRAUN MEDICAL INC. 15,072 110,353 168,594 58,241 52.8% 237.2520 50,689 43,228 IRVINE MARUCHAN,INC. 8g0 44,619 54,360 9,741 21.8% 14.6254 137,997 20,673 IRVINE TODDS ENTERPRISES 424 45,589 59,249 13,660 30.0% 7.7908 120,786 53,243 IRVINE PACKARD-HUGHES INTERCONNECT SYSTEMS 994 19,591 29,691 10,100 51.8% 39.2168 11,619 9,427 IRVINE EDWARD LIFESCIENCES LLC 2,810 22,194 32,751 10,557 47.6% 28.0708 25,842 25,842 IRVINE UNION INCORPORATED 22,008 28,544 6,538 29.7% 16.6178 54,008 11,849 IRVINE PRUDENTIAL OVERALL SUPPLY 215 9,346 13,186 3,840 41.1% 6.0068 18,583 12,621 IRVINE JEFFERSON SMURFIT CORPORATION(U.S.) 2,349 8,644 11,750 3,108 35.9% 4.9626 18,334 9,469 IRVINE RAYNE DEALERSHIP CORP - 5,519 8,709 3,180 67.8% 12.3764 611 3,376 IRVINE ENTHONE INC. 211 6,923 8,175 1,252 18.1% 2.0340 23,113 1,797 IRVINE ELECTROLURGY INC. 67 4,970 7,664 2,894 68.2% 9.4495 1,084 5,108 IRVINE SUNSET ENVIRONMENTAL,INC.#2 164 5,811 8,646 2,934 52.3% 1.8145 8,756 13,683 IRVINE COSMOTRONIC CORP 26 3,286 4,404 1,118 34.0% 3.1835 6,851 1,718 IRVINE RICOH ELECTRONICS INC. 11e 2,900 4,303 1,404 48.4% 3.9095 3,028 2,961 IRVINE PRINTRONIX,INC. 1,184 2,319 3,389 1,050 45.3% 1.8325 3,376 3,375 IRVINE NEWPORT CORPORATION 1,303 2,347 3,401 1,054 44.9% 1.e987 3,536 31538 IRVINE 0 C B REPROGRAPHICS 106 2,162 3,133 971 44.9% 1.5e25 3,258 3,258 IRVINE FMH INVESTOR GROUP 370 1,279 1,874 595 48.6% 1.4464 1,693 1,487 IRVINE NEWPORT PRECISION OPTICS 827 1,208 381 46.0% 0.6627 1,162 1,233 IRVINE SUNSET ENVIRONMENTAL,INC.#1 246 810 1,173 364 44.9% 0.5850 1,220 1,220 IRVINE ALLTEK CIRCUIT INC. - 427 639 212 49.8% 0.9059 284 94 IRVINE DYE TECHNIQUE INC. 28 187 270 84 44.9% 0.1348 281 281 IRVINE WINTEC,LLC - 117 170 53 45.2% 0.0991 16a 162 LA HABRA RALPHS GROCERY COMPANY(BAKERY) 2,716 29,339 35,627 6,468 22.1% 6.6379 91,387 17,521 LA HABRA SHEPARD BROTHERS INC. 316 5,803 6,519 716 12.3% 0.3155 21,984 932 LA HABRA WATER MAN 9 2,163 3,373 1,210 55.9% 6.8179 190 190 LA HABRA ARNOLD ELECTRONICS,INC.01 22 1,em 2,800 998 55.2% 4.1023 474 733 LA HABRA LA HABRA PLATING CO. INC. 15 815 1,272 467 66.0% 2.1230 Be 68 LA PALMA LA PALMA INTERCOMMUNITY HOSPITAL 1,096 17,035 24,084 7,649 44.9% 12.3087 25,664 25,664 LA PALMA PERFORMANCE MACHINE INC - 1,ew 2,330 722 44.9% 1.1621 2,423 2,423 LOS ALAMITOS JOINT FORCES TRAINING BASE,LOS ALAMITOS - 25,223 37,248 12,025 47.7% 26.8863 30,ee5 33,805 LOS ALAMITOS LOS ALAMITOS GENERAL HOSPITAL 3,871 17,049 24,705 7,050 44.9% 12.3191 25,685 25,685 LOS ALAMITOS TREND OFFSET PRINTING SERVICES INC. 11,934 17,293 5,359 44.9% 8.6231 17,979 17,979 LOSALAMITOS ARROWHEAD PRODUCTS CORPORATION 2,e82 8,416 12,420 4,004 47.0% 10.2132 0,689 9,430 H:adeptlfEn12101STREED1ExoellPermlt Users12002-03 recon and rate3 Oct 2000ds 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 9 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total City Permit User Name Share of Fee Fee Correct Percentage Flay 800 SS Property 2004-05 2004-05 Calculation Increase (MG) (Ibs) (Ibs) Tax Adapted Proposed Method LOSALAMITOS BEARING INSPECTION INC. 940 1,164 1,e85 521 44.7% 0.8458 1,764 1,73e NEWPORT BEACH JAZZ SEMICONDUCTOR 43,092 100,207 157,093 56,187 65.7% 257.5577 12,271 12,271 NEWPORT BEACH HOAG MEMORIAL HOSPITAL PRESBYTERIAN - 49,800 72,162 22,362 44.9% 35.9836 76,02e 75,020 NEWPORT BEACH HIXSON METAL FINISHING 41 6,888 10,447 3,779 50.7% 15.7516 894 2,684 NEWPORT BEACH RENAL RESEARCH INSTITUTE,LLC - 3,108 4,503 1,395 44.9% 2.2454 4,682 4,682 NEWPORT BEACH AMETEKAEROSPACE 282 2,400 3,513 1,113 46.4% 2.4275 3,124 3,057 NEWPORT BEACH CITY OF NEWPORT BEACH - 1,843 2,441 798 48.6% 2.2182 1,694 1,694 NEWPORT BEACH BASIN MARINE INC. 18 264 387 123 48.8% 0.3468 308 251 ORANGE UCI MEDICAL CENTER - 87,621 126,821 39,3m 44.9% 63.2390 131,853 131,863 ORANGE ANGELICA TEXTILE 268 60,815 1C0,063 31,240 45.4% 89.9501 a5,774 60,148 ORANGE ST,JOSEPH HOSPITAL 218 73,318 106,240 32,922 44.9% 52,9765 110,456 110,458 ORANGE GRANDE TORTILLA INC. 205 51,805 67,676 15,871 30.6% 3.2805 137,285 e8,11a ORANGE CHILDREN'S HOSPITAL OF ORANGE COUNTY - 17,530 25,402 7,872 44.9% 12.6e65 26,410 26,410 ORANGE MARCEL ELECTRONICS INT. 162 12,346 18,446 e,100 49.4% 21.8946 10,0e8 7,439 ORANGE WASTE MANAGEMENT OF OC TRANSFER 393 12,212 14,725 2,613 20.e% 3.2326 39,024 6,642 ORANGE CHAPMAN MEDICAL CENTER 1,253 9,889 14,330 4,440 44.9% 7.1454 14,698 14,898 ORANGE CIRTECH INC. 160 6,663 9,870 3,007 45.1% 6.7337 9,197 7,949 ORANGE WEST AMERICAN RUBBER COMPANY INC. 1,183 5'aw 8,643 2,793 47.7% 7.0405 6,686 8,685 ORANGE SIERRA SPRING WATER COMPANY e8 3,844 5,778 1,934 50.3% 7.9708 2,471 1,22e ORANGE STATEK CORPORATION 290 4,683 6,588 1,906 40.7% 4.6971 7,773 4,278 ORANGE CONTINUOUS COATING CORPORATION 402 2,944 4,560 1,e1e 54.9% 5.9100 1,135 2,030 ORANGE SVG THERMCO SYSTEMS INC. 683 3,737 5,415 1,678 44.9% 2.7000 5,630 5,630 ORANGE PLATECORP#2,INC. 176 2,728 4,118 1,391 51.0% 5.4129 1,725 1,269 ORANGE ULTRA PURE METAL FINISHING,INC. 118 2,669 4,601 1,743 61.0% 4.6517 363 4,108 ORANGE ORANGE COUNTY PLATING CO.,INC. 18 2,322 3,575 1,253 64.0% 4.8133 962 1,294 ORANGE CIRCUIT ACCESS 55 3,058 3,620 561 16.4% 1.0015 10,118 730 ORANGE VILLA PARK ORCHARDS ASSOCIATION 474 3,012 4,532 1,520 60.4% 1.8421 3,634 5,998 ORANGE DUCCMMUN AEROSTRUCTURES 2,083 2,660 3,707 1,046 39.3% 2.9010 4,546 1,935 ORANGE SOUTH COAST WATER 299 1,914 3,113 1,199 62.8% 2.8263 211 3,436 ORANGE FOAMEX L.P. - 2,039 2,969 920 45.1% 1.5114 3,030 3,056 ORANGE CADILLAC PLATING 137 11265 11980 715 56.5% 2.4091 375 1,052 ORANGE HIGHTOWER PLATING&MANUFACTURING CO. 473 1,263 2,015 752 59.6% 2.5353 117 1,255 ORANGE HAMILTON MATERIALS 112 1,647 2,386 740 44.9% 1.1900 2,481 2,481 ORANGE DUNHAM METAL PROCESSING 19 1,445 2,319 673 60.4% 1.6632 544 2,924 ORANGE QUALITY ALUMINUM FORGE It2 77 1,270 1,833 563 44.4% 1.1122 1,879 1,646 ORANGE SERRANO WATER DISTRICT - 1,543 2,627 1,084 70.2% 0.7851 26 5,217 ORANGE THERMAL-VAC TECHNOLOGY - 805 1,312 507 63.0% 1.2225 60 1,424 H:ldeptlffn12101STREED1Excel\Permit UserM2002-03 recon and rates Oct 2004.x1s 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 10 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total City Permit User Name Sure or Fee Fee Correct Percentage Flow BOD SS Property 2004-05 2004-05 Calculation Increase (MG) Qbs) (Ibs) Tax Adopted Proposed Method ORANGE QUALITY ALUMINUM FORGE 175 599 908 306 51.1% 0.9273 477 682 ORANGE S F P P,L.P. 32 712 884 173 24.3% 0.3604 2,042 298 ORANGE DITTY DRUM COMPANY,INC. 27 623 793 270 51.6% 0.9733 338 338 ORANGE CIRCUIT TECH INC. 115 350 481 131 37.3% 0.3761 645 216 ORANGE INDEPENDENT FORGE 175 379 555 176 46.2% 0.3297 520 639 ORANGE A8A DEBURRING AND TUMBLING - 316 444 128 40.5% 0.2668 548 343 ORANGE PERFORMANCE POWDER,INC. - 266 390 124 46.8% 0.3086 323 299 ORANGE BURLINGTON ENGINEERING INC. 61 239 362 113 47.1% 0.2627 293 293 ORANGE GOMTECH ELECTRONICS 27 a1 123 42 51.2% 0.1456 57 57 ORANGE DATAAIRE INC.#2 923 643 778 - 0.0% 0.4202 858 734 PLACENTIA KNOTT'S BERRY FARM FOODS 2,041 235,398 267,491 32,095 13.6% 16,5656 871,488 63,200 PLACENTIA PLACENTIA LINDA COMMUNITY HOSPITAL 2,856 10,463 26,753 8,290 44.9% 13.3404 27,815 27,815 PLACENTIA FROZSUN FOODS,INC. 163 11,382 14,730 3,348 29.4% 7.4577 28,384 6,610 PLACENTIA S.B.THOMAS INC. 742 6,388 7,880 1,514 23.8% 1.7607 19,044 4,113 PLACENTIA CALIF CONSOLIDATED WATER PURIFICATION 249 4,668 7,637 3,069 67.2% 3.8176 383 12,870 PLACENTIA EXCELLO CIRCUITS MANUFACTURING CORP. 153 3,085 4,510 1,433 46.4% 6.4805 3,083 1,254 PLACENTIA CARTEL ELECTRONICS - 2,309 3,285 976 42.3% 3.6029 3,005 am PLACENTIA HARTWELL CORPORATION 466 1,679 2,266 sea 43.6% 1.3611 2,422 1,992 PLACENTIA K C A ELECTRONICS,INC. 519 1,248 1,813 566 45.3% 1.8194 1,491 887 PLACENTIA NOLLAC OIL COMPANY 12 960 1,605 544 66.7% 1.9307 259 772 PLACENTIA GEORGEA.JONES,IMPERIAL#2 WELL 29 723 1,108 386 53.2% 1.6463 314 314 PLACENTIA BRIGHT ARMOUR PLATING 78 689 915 326 55.3% 1.3014 165 287 PLACENTIA SUPERIOR PROCESSING 128 285 404 139 62.4% 0.6574 132 111 SANTA ANA STREMICKS HERITAGE FOODS LLC 3,635 734.507 930,531 196.024 26.7% 88.9928 2,109,695 743,727 SANTA ANA CHROMA SYSTEMS PARTNERS 1,252 138,6w 187,117 48,466 35.0% 167.2683 268,230 43,329 SANTA ANA IRWDDATS - 76,280 122,060 43,780 65.9% 207.7076 5,236 1,770 SANTA ANA UWMC HOSPITAL CORPORATION 8,038 62,205 75,646 23,441 44.9% 37.7209 78,648 78,60 SANTA ANA EL METATE FOODS,INC. 317 38,901 50,965 12,064 31.0% 3.8308 101,644 51,273 SANTA ANA GOGLANIAN BAKERIES 790 35,725 50,091 14,368 40.2% 8.0730 71,164 63,168 SANTA ANA EL TORO MEAT SHOP 128 29,093 38,278 7,183 24.7% 4.1564 80,921 24,979 SANTA ANA GEMINI INDUSTRIES INC. 97 $4,161 58,866 24,694 72.3% 5.6713 853 133,608 SANTA ANA MICRO SEMI CORP. 1,892 18,199 26,984 8,785 46.3% 30.4213 16,054 11,731 SANTA ANA DANONE WATERS OF N.A.-SANTA ANA - 16,073 25,001 8,928 55.6% 35.5826 4,218 8,009 SANTA ANA ORANGE COUNTY REGISTER 8,684 22,451 32,305 9,854 43.0% 16.1072 36,260 32,482 SANTA ANA ITT CANNON,A DIVISION OF ITT INDUSTRIES 14,959 18,512 27,760 9,248 60.0% 31.0324 16,173 13,8W SANTA ANA TTM TECHNOLOGIES#1 162 14,453 20,589 6,136 42.5% 17.7899 21,084 11,125 SANTA ANA CULLIGAN WATER CONDITIONING - 7,641 12,179 4,538 69.4% 16.4408 368 6,248 H:`dept`tfn12101STREED1ExcellPermit Users\2002-03 recon and retos Oct 2004.)ds •1 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 11 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total City Permit User Name Share of Fee Fee Correct Percentage Flow BOD SS Property 2004-05 2004-05 Calculation Increase (MG) pbs) (Ibs) Tax Adopted Proposed Method SANTA ANA MECTRONIC HEART VALVES,INC. 527 9,143 12,795 3,652 39.9% 7.1976 16,359 10,187 SANTA ANA INTERNATIONAL FOOD SOLUTIONS,INC 712 9,842 11,866 2,012 20.4% 2.8088 31,460 4,153 SANTA ANA UNIVERSAL CIRCUITS INCORPORATED 647 6,839 10,664 3,825 66.9% 14.0630 2,053 4,802 SANTA ANA ASTECH ENGINEERED PRODUCTS 118 6,271 9,619 3,347 53.4% 13.9890 2,449 2,124 SANTA ANA EMSEE INC.#2 25 6,424 9,924 3,500 64.6% 13.4831 2,396 3,6W SANTA ANA BURROWS IND.DBA MINUTEMAN PUMPING 177 8,092 10,014 1,922 23.8% 2.7786 24,011 4,613 SANTA ANA PIONEER CIRCUITS 315 6,204 9,105 2,902 48.8% 9.7955 6,549 4,053 SANTA ANA ALPHANETICSINC. 102 5,049 7,397 2,348 48.5% 9.3168 4,891 1,677 SANTA ANA MARKLAND MANUFACTURING,INC. 487 4,681 7,367 2,486 50.9% 9.0452 3,370 2,977 SANTA ANA TTM TECHNOLOGIES,INC 642 5,688 8,274 2,686 48.1% 6.6748 6,207 6,337 SANTA ANA FABRICATION CONCEPTS CORPORATION 776 5,379 8,082 2,704 60.3% 5.5691 5,655 8,054 SANTA ANA EMBEE INC.#1 30 3,164 4,951 1,787 56.6% 7.0848 026 1,688 SANTA ANA TEXTRON AEROSPACE 4,539 5,400 7,989 2,589 47.9% 7.0782 5,873 5,583 SANTA ANA ANOMIL ENT.D13A DANCO METAL SURFACING 150 3,468 6,284 1,797 51.6% 6.4452 2,679 3,417 SANTA ANA ANODYNE INC. 24 3,307 5,284 1,977 69.0% 5.6640 645 4,441 SANTA ANA EMBEE INC.#3 30 2,956 4,493 1,637 62.0% 0.0751 1,612 1,327 SANTA ANA ALUMINUM FORGE-DIV.OF ALUM.PRECISION 164 3,779 6,101 2,322 61.4% 2.2288 2,011 10,307 SANTA ANA WEBER PRECISION GRAPHICS 162 2,940 3,560 619 21.1% 1.0217 9,209 1,151 SANTA ANA CHROME TECHNOLOGY,INC. 217 2,231 3,426 1,195 53.5% 3.8819 1,278 2,027 SANTA ANA SOUTH COAST CIRCUITS#3 63 2,169 3,205 1,037 47.8% 3.5930 2,084 1,369 SANTA ANA RICOH ELECTRONICS#2 795 2,716 3,897 1,101 43.5% 1.7501 4,412 4,085 SANTA ANA ALUMINUM PRECISION PRODUCTS INC.CENTRAL - 2,320 3,106 786 33.9% 1.6766 5,120 1,955 SANTA ANA DATA ELECTRONIC SERVICES INC. 75 1,707 2,683 we 48.2% 3.1141 1,632 1,021 SANTA ANA ACTIVE PLATING INC. 1,686 2,535 849 50.4% 3.2736 1,163 796 SANTA ANA INTEGRATED AEROSPACE,INC. - 2,127 3,089 943 44.3% 1.5510 3,274 3,108 SANTA ANA GALLADE CHEMICAL INC. 178 1,752 2,548 798 45.4% 1.8846 2,303 1,880 SANTA ANA ACCURATE CIRCUIT ENGINEERING 63 1,816 2,379 562 31.0% 1.3752 4,283 1,027 SANTA ANA ALUMINUM PRECISION PRODUCTS INC.-SUSAN 124 1,695 2,487 792 46.7% 1.780 2,144 2,115 SANTA ANA VERTEO PROCESS SYSTEMS INC. - 1,427 2,138 709 49.7% 2.1927 1,271 1,271 SANTA ANA REID METAL FINISHING 134 1,166 1,762 588 50.3% 1.9402 939 910 SANTA ANA R B C TRANSPORT DYNAMICS CORP. 298 1,419 2,058 639 45.0% 1.0328 2,122 2,142 SANTA ANA SOUTH COAST CIRCUITS#4 72 990 1,510 520 52.5% 2.2302 431 266 SANTA ANA ELECTROSERVICES2000INC. 174 951 1,417 466 48.9% 2.1012 641 73 SANTA ANA ALMATRON ELECTRONICS,INC. 107 1,064 1,554 499 47.4% 1.7311 1,048 654 SANTA ANA BRASSTECH,INC - 1,265 1,833 568 44.9% 0.9141 1,908 1,908 SANTA ANA SOUTH COAST CIRCUITS#2 - 1,042 1,405 383 34.8% 1.2736 2,019 297 SANTA ANA PLEION CORPORATION#2 796 1,059 1,560 502 47.4% 1.0439 1,319 1,449 H:ldept\fin12101STREED1Exoel\Permit Users12002-03 recon and rates Oct 2004.)ds 9/29/2004 Estimated Impact on Permit Users by Flow, BOD and SS Page 12 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCS0 e0% Permit User Permit User Cost to Total Total Total City Permit User Name Share of Fee Fee Correct Percentage Flaw BOD SS Property 2004.05 2004-05 Calculation Increase (MG) Oys) (lbs) Tax Adopted Proposed Method SANTA ANA L&N UNIFORM SUPPLY COM PANY,I NC.(CLEAN) 1,136 1,644 608 44.7% 0.7479 1,753 1,781 SANTA ANA WHEEL SERVICES GROUP,INC - 822 1,293 471 57.3% 1.5619 219 773 SANTA ANA SOUTH COAST CIRCUITS,INC. 79 802 1,222 420 62.3% 1.6479 459 493 SANTA ANA PACIFIC QUARTZ,INC. 68 992 1,445 463 46.6% 0.8499 1,400 1,389 SANTA ANA SOUTH BAY CHROME SALES/CHROME EFFECTS 126 803 1,229 427 53.2% 1.4043 475 700 SANTA ANA ORANGE CONTAINER,INC. 9" 1,472 478 48.1% 0.6319 1,336 1,799 SANTA ANA MASK TECHNOLOGY INC. 126 612 902 280 47.4% 0.9910 611 397 SANTA ANA SELECT CIRCUITS 276 649 875 228 34.8% 0.7883 1,260 190 SANTA ANA S P S TECHNOLOGIES 2,954 3,103 4,695 1,492 48.1% 3.9208 3,404 3,404 SANTA ANA E F T FAST QUALITY SERVICE,INC. 88 471 738 267 56.6% 0.9880 122 357 SANTA ANA SANTA ANA PLATING(CNK CAPITAL) 44 649 795 246 44.9% 0.39e5 827 827 SANTA ANA CAL-TRONICS CIRCUIT INC.-SANTA ANA 433 e25 192 44.2% 0.8315 546 272 SANTA ANA LAM-PLATE TECH INC. 118 379 560 181 47.8% 0.7248 327 129 SANTA ANA OLYMPIC POWDER COATINGS INC. 108 453 685 212 4e.7% 0.5203 557 616 SANTA ANA GORI LLAS POLI SH I NG AN 0 PLATI NG 160 388 574 186 47.4% 0.6832 388 102 SANTA ANA MARGARETIS TEXTILE SERVICE 233 601 726 225 44.9% 0.3822 765 755 SANTA ANA MARK OPTICS INC. ee 459 708 249 64.2% 0.4100 395 880 SANTA ANA El A F INDUSTRI ES 231 425 608 184 43.3% 0.4151 e40 472 SANTA ANA PRECIOUS METALS PLATING 93 332 500 1e7 50.4% ae052 243 204 SANTA ANA STRIP CLEAN COMPANY 14 328 601 173 62.9% ae097 184 240 SANTA ANA PRECISION CIRCUITS WEST INC. 348 612 1e4 47.0% 0.4882 388 sm SANTA ANA AQUA-CON COMPANY 60 310 476 lee 53.6% 0.e081 149 203 SANTA ANA ALLOY TECH ELECTROPOLISHING INC. 162 260 365 128 48.3% 0.4538 232 146 SANTA ANA MEDEVA PHARMACEUTICALS CA,INC. 131 2e6 395 119 44.9% 0.1921 401 401 SANTA ANA VICTORY CIRCUITS INC. - 204 267 53 25.7% 0.1476 551 65 SANTA ANA X Z X ELECTRONICS 97 168 212 54 34.5% 0.1524 324 88 SANTA ANA AUTO-CHLOR SYSTEM OF WASHINGTON,INC. 62 leg 212 43 25.6% 0.0545 483 121 SANTA ANA A&K DEBURRING AND TUMBLING 141 200 59 42.3% 0.1006 235 189 SANTA ANA DATA SOLDER INC 90 130 40 44.9% 0.0848 135 136 SANTA ANA HI-TECH STENCILS - 35 61 1e 44.8% 0.0272 53 51 SANTA ANA LAM LIGHTING INC. 2,040 911 1,324 - 0.0% 0.6660 1,339 1,394 SANTA ANA PRECISION POWDERCOATING INC. 138 114 166 28 20.4% 0.1693 143 84 SEAL BEACH NAVAL WEAPONS STN SEAL BCH CD 043 - 7,298 10,575 3,277 44.9% 6.2734 10,995 10,995 SEAL BEACH ACCURATE METAL FABRICATORS - 3,638 5,124 1,5e8 44.9% 2.6550 5,327 5,327 STANTON ALL METALS PROCESSING OF O.C.INC. 280 2,160 3,236 1,058 48.4% 2.9329 2,273 2,239 STANTON PURE-CHEM PRODUCTS COMPANY INC. 70 234 344 110 46.8% 0.1891 317 380 TUSTIN CITY OF TUSTIN WATER SERVICE(17TH ST.) - 38,081 58,610 20,629 56.9% 96.3091 19 2,428 H:\deptVtn121 OkSTREED1Excel\Permit Users12002-03 recon and rates Oct 2004.)do 9/29/2004 Estimated Impact on Permit Users by Flow, BQD and SS Page 13 of 13 Based Upon 2002-03 Actual Discharge Quantities Estimated Calculated Calculated Proposed OCSD 60% Permit User Permit User Cost to Total Total Total Share of Fee Fee Correct Percentage City Permit User Name Property 2004-05 2004-06 Calculation Increase Flow BCD SS (MG) pbs) pbs) Tax Adopted Proposed Method TUSTIN CITY OF TUSTIN,WATER SERVICE(MAIN ST.) 7,625 11,923 4,299 5e.4% 19.2910 6e2 1,460 TUSTIN TUSTIN HOSPITAL AND MEDICAL CENTER 8,252 11,958 3,705 44.9% 6.9627 12,432 12,432 TUSTIN CITY OF TUSTIN-MAINTENANCE YARD - 682 845 283 45.1% 0.4317 865 873 TUSTIN TOYOTA RACING DEVELOPMENT#2 242 626 769 233 44.4% 0.4088 798 741 TUSTIN CHEEK ENGINEERING&STAMPING 244 307 439 132 43.0% 0.3671 442 261 TUSTIN WESCO SERVICES - 110 139 29 26.6% 0.0722 293 43 TUSTIN REVERE TRANSDUCERS,INC. 1,184 1,024 1,508 323 27.3% 1.2217 1,202 1,162 WESTMINSTER VENCOR INC DBA VENCOR HOSP-ORANGE COUNTY 1,284 8,164 11,831 3,666 44.9% 5.8993 12,300 12,300 WESTMINSTER LINDBERG HEAT TREATING CO.-ALUMATHERM 708 2,160 3,305 1,125 51.6% 4.0551 1,408 1,408 WESTMINSTER SOUTHERN CALIFORNIA EDISON 1,528 2,228 700 45.8% 1.3620 2,114 2,099 YORBA LINDA AERA ENERGY LLC 264 184,954 283,470 98,516 63.3% 440.4840 62,594 29,538 YORBA LINDA METRO WATER DISTRICT OF 50 CA - 2,690 3,902 1,212 45.1% 2.0152 3,995 4,000 YORBA LINDA PLEGEL OIL COMPANY(BLATTNER-A.H.A.) 168 786 1,222 437 55.6% 1.9693 115 131 YORBA LINDA COLUMBINE ASSOCIATES 12 68 101 33 48.2% 0.1483 50 5 YORBA LINDA SHERWIN D.YCELIN 6 65 99 34 52.9% 0.1510 25 12 Total for Permit Users 904,416 8,490,663 11,478,853 2.913,020 34.0% 6,117.8307 17,914,101 7,478.311 Total for All OCSD 28,000,000 102.752,685 91,25a0000 173,514,000 177.014,000 Permit User Percent of Total for All OCSO 11% 7% 10% 4% Average Permit User 2,001 18,785 25,396 6,445 34.3% 13.6350 39,633 18,545 Average Single Family Residence 116 0.0923 159 169 H:\dept\M\210\STREED\Exoel\Permit Users\2002-03 recon and rates Oct 2004.x1s 9/29/2004 Page 1 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Discharlges Estimated OCSD 60% 2002-03 2002-03 2002-03 City Permit User Name Share of Total Total Total 2004-05 2004-05 2005.00 2006-07 2007-08 Property Flaw Boo SS Adopted Proposed Estimated Estimated Estimated Tax (MO) Qbs) Obs) Flow Rate per Mlllion Gallons $ 368.58 S 577.30 S 637.56 S 711.27 S 773.32 800 Rate per 1000 Pounds $ 248.55 $ 270.68 $ 288.50 $ 311.21 S 330.63 SS Rate per 10110 Pounds $ 230.46 S 414.27 $ 432.14 $ 454.10 S 473.50 ANAHEIM ALSTYLE APPAREL-ACTIVEWEAR MFG,CO.INC. 3,875 360.6536 1,541,360 501,730 636,674 833,276 691,436 964,093 1,025,940 ANAHEIM M C P FOODS INC. 251 16.4667 1,654,067 46,540 403,506 440,674 479,098 516,639 648,600 ANAHEIM NOR-CAL BEVERAGE CO.INC.(MAIN) 1,898 38.0144 827,333 122,302 249,159 297,107 316,352 340.738 361,500 ANAHEIM NOR-CAL BEVERAGE CO.INC.(TETRA) 23.3647 640,446 33,930 151,03a 173,844 185,490 200,23e 212,784 ANAHEIM DISNEYLAND RESORT-RCA 810 94.7449 107,643 197,643 131,125 190,003 202,782 218,589 232,099 ANAHEIM EXPO DYEING AND FINISHING INC. 656 105.4495 101.647 34,471 87,230 118,884 128,732 140,935 161 A65 ANAHEIM SUNDOR BRANDS INC.A PROCTER&GAMBLE CO 5,122 27.1223 380,115 34,457 107,719 127,408 136,075 147,012 156,318 ANAHEIM STEPAN COMPANY 2,670 7.3083 210.007 647 55,217 61,518 05,725 71,083 75,600 ANAHEIM STEINER CORP.DBA AMERICAN LINEN SUPPLY - 21.6522 136,240 39,368 50,947 65,350 69,772 76,301 60,011 ANAHEIM PRECISION ANODIZING AND PLATING INC. 308 34.7605 11636 150,469 51,016 86,175 91,132 97,220 102,479 ANAHEIM ANAHEIM MEMORIAL MEDICAL CENTER - 33.3875 69,613 60,613 46,207 60,956 71,462 77,029 81,790 ANAHEIM DYNAMIC DETAILS INC. 28 46.6497 28,668 20,316 31,035 46,363 50,185 64,802 60,881 ANAHEIM SIOUX HONEY ASSOCIATION 00-OP 690 2.1565 140,914 1,140 36,094 30,665 42,527 45,912 40,700 ANAHEIM DON MIGUEL MEXICAN FOODS INC. 303 14.4226 70,233 36,480 33,221 44,201 47,098 60,720 63,812 ANAHEIM K CA ELECTRONICS INC. 3,217 39.2034 10,300 9,990 10,393 29,560 32,284 35,629 38,453 ANAHEIM WEST ANAHEIM MEDICAL CENTER 1,068 16.7858 34,99a 34,008 23,231 33,663 35,923 38,727 41,121 ANAHEIM HARRYS DYE d WASH INC 182 21.0879 25,13a 14,600 17,602 25,027 27,000 20,454 31,630 ANAHEIM TAC WEST,INC. - 11.601 46,692 11,789 18,710 24,247 25,092 28,171 30,023 ANAHEIM CITY OF ANAHEIM-WATER SERVICES - 0.0756 95 71,650 10,350 33,219 34,667 36,897 38,600 ANAHEIM U.W.M.C.HOSPITAL CORPORATION 3,683 10.6352 22,174 22,174 14,710 21,326 22,700 24,537 26,053 ANAHEIM BRIDGFORD FOODS CORPORATION 7e0 9.1297 27,877 19,171 14,a66 20,758 22,146 23,877 25,352 ANAHEIM WEYERHAEUSER COMPANY 7,751 9.11S3 28,073 16,304 13,728 10,075 20,380 22,003 23,388 ANAHEIM IDEAL ANODIZING INC. 264 6.6475 718 41,707 13,385 22,580 23,871 25,459 26,828 ANAHEIM MULTI-FINELINE ELECTRONIX INC. 847 15.1614 9,090 7,526 9,866 14,575 15,801 17,311 18,690 ANAHEIM S S 8 POLISHING/PLATING 11 13.7040 873 10,377 8,888 16,175 17,362 10,820 20,061 ANAHEIM ANAHEIM GENERAL HOSPITAL 1,997 7.9434 16,50 16,50 10,993 16,930 17,000 18,326 10,459 ANAHEIM DANONE WATERS OF N.A.-ANAHEIM 666 17.9176 995 654 6,983 10,843 11,960 13,305 14,447 ANAHEIM DRS TECHNOLOGIES INC 1,093 13.0501 4,543 4,643 7,022 10,646 11,694 12,759 13,744 ANAHEIM ARTISTIC PLATING 8,METAL FINISHING INC. 280 11.4465 6,004 4,635 61615 91966 10,630 11,694 12,704 ANAHEIM DELPHI AUTOMOTIVE SYSTEMS 2,234 9.9865 4,398 4,071 5,930 0,074 9,741 10,654 11,483 ANAHEIM INTEC PRODUCTS INC. 210 3.9450 609 29,107 8,643 14,511 15,280 18,228 17,044 ANAHEIM HAWK INDUSTRIAL UNIFORM 114 5.9494 1o,069 7,830 0,663 0,404 10,082 10,922 11,630 ANAHEIM MICROMETALS INC.82 792 5.2761 6,325 3,889 4,440 6,373 6,873 7,492 8,017 ANAHEIM UNIVERSAL ALLOY CORP. 066 5.8363 6,360 2,964 4,113 5,929 6,417 7,019 7,620 ANAHEIM CEROMET INC. 311 2.0917 16,012 1,948 4,966 6,076 6,606 7,044 7,602 ANAHEIM AMERICAN CIRCUIT TECHNOLOGY INC. 322 6.6465 2,445 2,232 31590 5,423 5,007 0,602 7,005 ANAHEIM PRIVATE LABEL LABORATORIES 413 0.2325 18,055 1,151 4,848 5,498 5,855 6,307 0,093 ANAHEIM COPPER CLAD MULTILAYER PRODUCTS INC. - 6.0916 1,603 4,034 3,237 5,045 5,462 5,963 0,376 H:ldeptfin121 MSTREED\Excel\Permft Users12002-03 recon and rates Oct 2004.xls 9/29/2004 Page 2 of 13 Estimated Impact on Permk Users to 2007-08 Based Upon 2002-03 Actual Discharges Estimated OCSD 80% 2002-03 2002-03 2002-03 City Permit User Name Share of Total Total Total 200405 2004-05 2006-06 2006-07 2007-08 Property Flow BOD 66 Adopted Proposed Estimated Estimated Estimated Tax (MG) (1be) pbs) Flow Rate per Million Gallons S 368.50 $ 577.30 S 637.66 $ 711.27 $ 773.32 SOD Rate per 1 QQ0 Pounds $ 248.65 E 270.68 $ 260.60 $ 311.21 $ 330.53 SS Rate per 1Q00 Pounds $ 230.45 $ 414.27 $ 432.14 $ 454.19 $ 473.60 ANAHEIM LINCO INDUSTRIES INC. 64 3.2695 677 10,910 3,901 6,581 6,985 7,482 7,008 ANAHEIM MAGNETIC METALS CORP 944 1.6661 8,253 6,761 4,046 6,694 5,948 6,384 6,760 ANAHEIM Y K K(U.S.A)INC. 2,284 5.8158 2,184 1,216 2,903 4,338 4,737 6,227 5,642 ANAHEIM J a H DEBURRING INC.#2 25 1.3247 4,837 8,936 3,821 6,776 6,102 6,506 61854 ANAHEIM BLACK OXIDE INDUSTRIES INC. 55 4.6014 697 1,924 2,200 3,e03 3,924 4,318 4,651 ANAHEIM A P W ENCLOSURE SYSTEMS,LLC 408 2.7002 4,060 2,663 2,639 3,761 4,044 4,394 4,091 ANAHEIM CLASSIC PLATING INC. - 3.2877 1,014 1,288 2,024 3,102 3,383 3,728 4,019 ANAHEIM ANAHEIM PLATING A POLISHING INC. SB 3.6712 11605 1,320 2,007 3,101 3,374 3,710 3,905 ANAHEIM BOEING COMPANY-BLDG.271 1,606 2.1347 3,712 3,627 2,574 3,740 3,990 4,321 4,586 ANAHEIM GENERAL CERAMICS LLC - 2.7963 456 4,712 2,268 3,660 3,051 4,271 4,546 ANAHEIM GMT DYNAMICS 1.8364 3,402 3,402 2,333 31390 3,822 3,010 4,166 ANAHEIM CALIFORNIA CUSTOM SHAPES,INC. 1e8 1.5832 5,692 816 2,192 2,792 3,003 3,207 3,491 ANAHEIM CREST COATING INC. 272 1.3333 5,674 1,146 2,160 2,763 2,953 3,203 3,416 ANAHEIM MILBANK WEST INC. 250 1.6581 3,063 2,200 1,968 2,811 3,016 3,271 33488 ANAHEIM ESSEX ELECTRIC INC 916 1.7635 3,462 1,869 11956 2,735 2,936 3,187 3,309 ANAHEIM GUNTHER ATHLETIC SERVICE 22 2.55% 1,716 1,373 1,690 2,509 2,718 2,670 3,194 ANAHEIM MURRIETTA CIRCUITS INC. 88 2.1761 1,700 1,796 1,664 2,461 2,655 2,694 3,098 ANAHEIM ECONOLITE CONTROL PRODUCTS INC. 353 1.4443 2,550 2,269 1,707 2,482 2,635 2,860 3,033 ANAHEIM CYTECH ENGINEERED MATERIALS - 1.1798 2,372 2,373 1,520 2,306 2,462 2,655 2,620 ANAHEIM STAINLESS MICRO-POLISH INC. 93 2.3064 933 309 1,165 1,711 1,872 2,070 2,237 ANAHEIM ADVANCE TECH PLATING INC.02 126 1.7249 604 1,031 1,176 1,635 1,079 2,165 2,306 ANAHEIM NEVILLE CHEMICAL COMPANY 0 1.6686 700 657 1,Q56 1,598 1,741 1,917 2,006 ANAHEIM UOP LLC - 1.8723 635 e35 999 1,516 1,652 1,818 1,959 ANAHEIM KINSBURSKY BROTHERS SUPPLY INC. 71 1.4611 1,197 1,162 1,113 1,649 1,770 1,930 2,076 ANAHEIM SUPERIORPLATING - 1.9700 325 325 885 1,381 1,491 1,651 1,766 ANAHEIM TAORMINA INDUSTRIES INC.#4 524 0.9670 2,138 1,219 1,179 1,842 1,700 11807 2,032 ANAHEIM PRECISION PAINTING 204 0.3766 760 4,826 1,470 2,422 2,545 2,696 2,828 ANAHEIM AMERIMAX BUILDING PRODUCTS INC. 265 1.4767 2" 1,614 990 1,588 1,710 1,660 1,088 ANAHEIM ALLIED PACIFIC METAL STAMPING 478 0.66" 3,230 513 1,132 1,402 1,609 11635 1,742 ANAHEIM LEACH INTERNATIONAL 156 1.6300 285 498 780 1,224 1,33$ 1,473 1,600 ANAHEIM NU-TECPOW13ER COATING 198 0.6Q09 1,820 1,340 093 1,305 1,407 1,602 1,701 ANAHEIM I P C CAL FLEX INC. 123 0.8600 1,729 420 648 1,141 1,231 1,343 1,428 ANAHEIM JELLCO CONTAINER INC. 670 0.8923 1,160 1,701 049 1,416 1,611 1,620 1,724 ANAHEIM ANAHEIM TRUCK DEPOT#2 BIN WASH 524 0.6163 1,285 1,286 653 1,238 1,310 1,422 1,610 ANAHEIM SECHRIST INDUSTRIES,INC. - 0.6401 1,117 1,447 an 1,214 1,292 1,389 1,472 ANAHEIM ELECTRCRACK PRODUCTS CO.INC. 471 0.6610 1,201 999 7" 1,063 1,137 1,227 1,305 ANAHEIM R T I ELECTRONICS,INC. 8 0.5217 1,024 1,020 622 1,005 1,073 1,157 1,220 ANAHEIM TAYLOR-DUNN MANUFACTURING COMPANY 1,464 1.2090 2,480 2,432 1,642 2,377 2,537 2,736 2,906 H:rdeptltfn12101STREED1Excel\Permit Usera12002-03 reccn and rates Oct 2004.xis 9/29/2004 Page 3 of 13 Estimated Impact on Permft Users to 2007-013 Based Upon 2002-03 Actual Discharges Estimated CCSD 609E 2002-03 2002-03 2002-03 City Permit User Name shore of Total Total Total 2004-05 2004.05 2005-08 2006-07 2007-08 Properly Flow BOD SS Adopted Proposed Estimated Estimated Estimated Tax (MG) Qbs) pbs) Flow Rate per Million Gallons $ 3e8.58 $ 577.30 S 637.65 $ 711.27 $ 773.32 800 Rate per 1000 Pounds $ 248.55 $ 270.66 $ 288.50 $ 311.21 $ 330.63 SS Rate per 1000 Pounds $ 238.46 $ 414.27 $ 432.14 $ 454.19 $ 473.60 ANAHEIM MILLENNIUM CIRCUITS SERVICES CORP 0.5159 1,299 161 551 716 773 844 805 ANAHEIM PICOFARAD INC. 62 0.5664 an 792 554 825 884 058 1,020 ANAHEIM RTRINDUSTRIES 48 0.3976 829 829 650 797 851 917 974 ANAHEIM RIGIFLEX TECHNOLOGY INC. 87 0.6432 508 234 419 696 656 722 776 ANAHEIM LINVATEC CORPORATION 38 0.3281 684 684 454 e58 702 757 804 ANAHEIM PACIFIC UTILITY PRODUCTS INC. 169 0.5937 235 347 360 550 596 653 701 ANAHEIM IKON POWDER COATING - 0.3639 722 344 386 5" 689 640 683 ANAHEIM BRIDGEMARK CORP-DOWLING#2 - 0.7155 - - 284 413 450 509 553 ANAHEIM AQUARIAN COATINGS CORP 21 0.2813 687 587 380 564 602 640 669 ANAHEIM A R O SERVICE 243 0.2962 474 493 345 504 539 502 819 ANAHEIM PRECON,INC. 34 0.2709 573 384 334 470 504 545 650 ANAHEIM A A R POWDER COATING INC. - 0.4615 107 154 253 381 414 456 401 ANAHEIM ANAHEIM EXTRUSION CO.INC. 569 0.4868 943 993 651 948 1,012 1,001 1,158 ANAHEIM UNITED CUSTOM POLISHING&PLATING 49 0.4066 197 181 243 364 39e 434 467 ANAHEIM ADVANCE TECH PLATING INC. - 0.4270 78 173 218 340 370 407 438 ANAHEIM POWDERCOAT SERVICES INC.#1 25 0.3068 264 249 238 351 379 413 442 ANAHEIM PACIFIC IMAGE TECHNOLOGY,INC. 0.4080 97 94 197 301 320 383 392 ANAHEIM S M T DYNAMICS LLC 0.2662 176 170 180 269 290 317 340 ANAHEIM ELECTRO METAL FINISHING CORPORATION 91 0.1443 292 263 188 271 290 313 332 ANAHEIM EXQUISITE DESIGNS INC. 0.2938 27 27 121 188 207 230 249 ANAHEIM POWDERCOAT SERVICES INC.#4 0.2006 127 127 136 203 219 240 257 ANAHEIM POWDERCOAT SERVICES INC.#2 25 0.1170 244 244 162 235 250 270 287 ANAHEIM ACROBURR INC.#2 55 0.1726 106 131 121 183 197 215 231 ANAHEIM POWDERCOAT SERVICES INC.#3 0.1214 168 166 126 184 107 214 228 ANAHEIM M T S MICROELECTRONICS INC. 0.0937 194 193 129 187 lee 215 228 ANAHEIM OLIVE OIL CO. 65 0.1207 95 76 86 127 137 150 161 ANAHEIM DETAILS INC#11,DBA DYNAMIC DETAILS INC. 100 0.0867 181 181 12C 174 185 200 212 ANAHEIM TECHPLATE ENGINEERING CO.INC. - 0.0513 108 120 80 11e 125 135 144 ANAHEIM TRANSLINE TECHNOLOGY INC. 213 0.3058 160 158 221 335 364 400 431 ANAHEIM REMEDY ENVIRONMENTAL SERVICES - 0.0225 47 47 31 45 48 62 55 ANAHEIM CUSTOM POWDER COATINGS - 0.0189 39 39 28 38 40 44 46 ANAHEIM VEECO ELECTRO FAB INC.#2 89 0.1846 41 41 88 134 147 162 176 ANAHEIM ALL METAL PAINT STRIPPING INC.#2 508 0.0437 164 144 89 120 134 144 153 ANAHEIM A P W ENCLOSURE SYSTEMS LLC SOUTH 4,473 2.5000 1,227 1,570 1,836 2,481 2,687 2,941 3,165 ANAHEIM H.KOCH d SON$COMPANY 402 0.3262 212 212 223 333 361 324 423 ANAHEIM DISNEYLAND RESORT 559,204 354.6020 731,345 731,346 406,857 705,636 753,100 811,976 682.229 BREA HEALTH CARE APPAREL SERVICES 442 15.6040 23,410 12,349 14,480 20,405 21,977 23,924 25,577 BREA GERARD TILE 890 4.7316 2,801 53,895 16,291 25,817 27,115 283716 30,104 H:Wept\fln12701STREED1Excel'Permit Usere12002-03 recon and rates Oct 2004.x1s 9/29/2004 Pape 4 of 13 Estimated Impact on Permft Users to 2007-08 Based Upon 2002-03 Actual 01schar0es Estimated OCSO 60% 2002-03 2002-03 2002-03 My PermIt User Name Share of Total Total Total 2004-05 2004-05 2005-08 20OS-07 2007-08 Property Flour BOD SS Adopted Proposed Estimated Estimated Estimated Tax (MG) 0s) (1hs) Flow Rate per Mlllicn Gallons $ 308.50 S 577.30 S 637.66 S 711.27 $ 773.32 800 Rate per 1000 Pounds $ 248.65 S 270.66 S 288.60 $ 311.21 S 330.63 SS Rate per 1000 Paunch S 238.45 S 414.27 $ 432.14 $ 454.19 S 473.60 BREA COOPER AND BRAIN INC. 4 15.4902 9,708 2,980 8,839 12,814 13,975 15,404 10,611 BREA WINONICS(BREA) 603 16.1971 5,180 3,760 8,162 12,306 13,441 14,836 10,013 BREA HARTE-HANKS SHOPPERS 1,330 4.8353 21,063 7,905 0,902 11,768 12,676 13,566 14,444 BREA KIRKHILL RUBBER CO(SOUTH) 628 8.0408 9,630 10,212 7,795 11,484 12,323 13,361 14,243 BREA ELECTRONIC PRECISION SPECIALTIES INC. 121 8.4644 400 2,280 3,784 6,960 6,619 7,204 7,783 BREA BREA COMMUNITY HOSPITAL 3,176 3.6041 7,306 7,306 4,860 7,027 7,469 8,004 6,564 BREA ORO RIM INC 1,690 5.2437 3,313 3,626 3,697 6,354 5,822 e,362 6,619 BREA SRISTOL INDUSTRIES 884 4.3758 2,394 2,609 2,830 4,255 4,808 5,042 6,410 BREA FINELINE CIRCUITS d TECHNOLOGY INC. 118 1.0779 2,628 296 1,121 1,458 1,673 1,710 13642 BREA SCISOREK 8 SON FLAVORS,INC. 375 0.8409 3,114 418 1,164 1,602 1,615 1,757 1,078 BREA HARBOR TRUCK BODIES INC. 378 0.4984 961 918 641 927 991 1,070 1,137 BREA MORAVEK BIOCHEMICALS INC. 3 0.8824 261 201 371 501 810 071 722 BREA CENTRAL POWDER COATING - 0.2662 670 147 274 360 307 433 463 BREA ENGRAVERS INK CO 65 0.1137 64 250 115 184 108 211 224 BREA KIRKHILL RUBBER CO(SOUTH) 1,026 - - - 0 0 0 0 0 BREA AERA ENERGY LLC#2 246 0.0821 171 171 114 165 176 189 201 BUENA PARK DEAN FOODS CO.OF CALIF.INC(MILK PLANT) 1,418 38.2970 461,307 163,225 169.434 215,480 230,059 247,117 201,693 BUENA PARK SABA TEXTILES INC. 1,009 129.0030 213,403 100,129 124.465 173.71a 187,082 203,647 217,708 BUENA PARK SEVEN-UP BOTTLING COMPANY 766 34.6324 405,378 30,279 120,741 142,284 152,116 164,543 175,108 BUENA PARK AMERIPEC INC. 584 22.1770 332,031 22,660 08,278 112,230 119.910 129,600 137.642 BUENA PARK DEAN FOODS CO.OF CALIF.INC.(ICE CREAM) 815 10.1385 101,045 79,231 67,626 67,680 02,033 09,539 106,186 BUENA PARK PEPSI-COLA BOTTLING GROUP 3,837 18.5449 189,766 26,282 60,274 72,965 77,934 64,191 89,516 BUENA PARK K U A TEXTILES INC. 650 28.6471 50,330 50,808 35,259 51,327 64,870 59,200 03,003 BUENA PARK SUNCLIPSE,INC.OBA CORRU KRAFT II 2,347 10.7168 71,270 67,362 37,727 53,386 66,605 60,309 63,742 BUENA PARK CLEUGH'S RHUBARB COMPANY 216 10.3142 66,100 17,371 20,344 36,466 38,022 42,021 44,660 BUENA PARK ULTRA WHEEL COMPANY 1,212 15.6033 11,085 10,244 11,060 16,425 17,764 10,414 20,013 BUENA PARK PRIMATEX INDUSTRIES OF CA INC 335 128380 6,273 14,788 0,817 16,235 16,354 17,709 19,003 BUENA PARK GEOR0IA PACIFIC CORPORATION 3,808 2.6314 21,288 3,772 7,110 0,701 9,380 10,132 10,773 BUENA PARK CROCKETT CONTAINER CORP. 676 0.0970 16,401 1,106 4,444 51169 5,610 5,961 6,337 BUENA PARK MEADPACKAGING 1,808 1.6054 6,879 3,471 3,240 4,400 4,609 5,073 5,301 BUENA PARK TRIM-LOK/R.T.P. 950 3.8647 1,376 1,376 2,006 3,174 3,460 3,802 4,026 BUENA PARK HANSON-LORAN CO.,INC. 270 1.1809 6,872 911 2,112 2,649 2,841 3,051 3,286 BUENA PARK ALLOY DIE CASTING CO. 450 1.7335 2,222 1,916 1,648 2,395 2,674 2,764 2,081 BUENA PARK WEYERHAEUSER COMPANY#2 - 0.5313 1,108 1,108 735 1,065 1,137 1,228 1,302 BUENA PARK GENERAL CONTAINER CORPORATION 340 0.4284 813 709 520 701 814 8a0 936 BUENA PARK GARDNER LITHOGRAPH,INC. 327 0.4078 665 685 484 704 763 814 888 BUENA PARK DERM COSMETICS LAB'S INC. 169 0.1070 1,047 165 339 413 442 477 507 COSTA MESA WEST NEWPORT OIL COMPANY 0 43.9588 174,668 18,133 03,044 80,173 66,269 03,860 100,319 H:ldeIMfln1210kSTREED1ExceilPermlt Users12002-03 recen and rates Oct 2004.x1s 9/29/2004 Pape 5 of 13 Estimated Impact on Permft Users to 2007-08 Based Upon 2002-03 Actual Dlscharpes Estimated OCSD 60% 2002-03 2002-03 2002-03 City Permfl User Name Share of Total Total Total 2004-05 2004-05 2005-06 2006-07 2007-C8 Property Flow BOD SS Adopted Proposed Edmated Estimated Estimated Tax (MG) (Ibs) 0bs) Flow Rate per MI lion Gallons S 366.58 $ 577.30 S 637.65 S 711.27 S 773.32 800 Rate per 1000 Pounds S 248.55 $ 270.68 $ 288.50 S 311.21 $ 330.63 SS Rate per 1000 Pounds S 230.46 $ 414.27 $ 432.14 $ 454.19 $ 473.50 COSTA MESA FAIRVIEW STATE HOSPITAL - 32.8890 157,171 78,440 69,693 $4,028 10OX3 107,936 114,520 COSTA MESA LOS ANGELES TIMES COMMUNICATIONS LLC 8,296 10.5468 60,430 7,405 20,670 25,517 27,352 29,676 31,641 COSTA MESA I C N PHARMACEUTICALS INC. 2,585 18.5630 5,421 5,421 9,482 14,430 16,742 17,353 18,714 COSTA MESA VELIE CIRCUITS INC. 88 8.5218 4,055 2,008 4,628 6,840 7,471 8,235 8,881 COSTA MESA SANMINA CORPORATION(Al RWAY) 1,671 7.080 1,623 2,300 3,765 6,829 6,362 7,017 7,569 COSTA MESA MESA CONSOLIDATED WATER DISTRICT - 4.6293 1,776 6,621 3,464 5,440 6,860 6,353 0,781 COSTA MESA SANMINA CORPORATION(REOHILL) 1,061 5.4701 1,210 908 2,635 3,884 4,231 4,682 5,063 COSTA MESA EATON CORPORATION 102 2.4684 2,565 6,437 3,C93 4,603 6,116 5,409 5,820 COSTA MESA TOYOTA RACING DEVELOPMENT 242 2.2662 4,310 4,185 2,908 4,210 4,499 4,866 5,161 COSTA MESA PRIME TECHNOLOGIES,INC. 246 2.CO57 5,160 735 2,200 2,863 3,069 3,370 3,609 COSTA MESA SEMICOA SEMICONDUCTORS 137 1.9549 1,191 1,191 1,312 1,982 2,124 2,324 2,493 COSTA MESA CRITERION MACHINE WORKS 140 0.3265 405 551 367 642 680 627 667 COSTA MESA RAILMAKERS,INC. 51 0.0976 203 203 135 106 209 225 239 COSTA MESA IRVINE SENSORS CORP. e99 0.2916 314 263 240 362 390 424 454 COSTA MESA AVIATION EQUIPMENT STRUCTURES,INC. 535 0.2834 665 5" 380 651 588 034 674 CYPRESS BOIENG COMPANY(CYPRESS) 880 1.2994 2,709 2,709 1,700 2,606 2,781 2,086 3,183 CYPRESS TAYCO ENGINEERING,INC. - 0.6582 1,732 1,298 983 1,386 1,480 11597 1,696 CYPRESS HYATT DIE CASTING&ENGINEERING CORP. 630 0.5373 1,120 1,120 744 11078 1,160 1,240 13310 FOUNTAIN VALLEY PRO-TECH - 16.2280 8,011 2,736 8,257 12,094 13,203 14,668 15,720 FOUNTAIN VALLEY PAYTON TECHNOLOGY CORP - 13.6617 5,202 5,292 7,009 11,600 12,518 13,761 14,012 FOUNTAIN VALLEY KODAK PROCESSING LABS 143 9.9591 10,682 3,110 7,114 91961 10,831 11,880 12,768 FOUNTAIN VALLEY OMNI METAL FINISHING,INC. 130 10.0612 784 3,046 4,630 7,262 7,067 0,784 0,482 FOUNTAIN VALLEY CUSTOM ENAMELERS INC. 143 1.1772 784 768 812 1,210 1,309 1,430 13533 FOUNTAIN VALLEY SANMINA CORPORATION 116 1.1613 1,301 146 782 1,077 1,172 1,290 1,369 FOUNTAIN VALLEY UNITED CIRCUIT TECHNOLOGY INC. 57 0.8111 696 463 582 so 918 1,004 1,077 FOUNTAIN VALLEY KENLEN SPECIALITIES INC. 126 0.5638 276 210 320 491 534 587 032 FOUNTAIN VALLEY A 10 ELECTROPOLISH 167 0.6794 94 174 276 432 472 520 561 FULLERTON KIMBERLY-CLARK WORLDWIDE,INC. 19,607 451.67" 201,610 422,093 317,216 490,163 628,510 575,692 615,762 FULLERTON FULLERTON CULTURED SPECIALTIES $60 31.4260 518,277 117,240 1e8,3e8 207,019 22OA44 238,917 251,145 FULLERTON OAE SHIN USA,INC. 1,180 132.8300 199,711 116,954 120,484 170091 192,00 209,749 224,108 FULLERTON VAN LAW FOOD PRODUCTS,INC. 564 4.6980 440,167 187,635 165,874 190,584 211,054 225,544 237,962 FULLERTON Y2K TEXTILE CO.,INC. 1,996 119.7883 210,096 48,368 1101362 146,734 160,736 175,620 108,240 FULLERTON CALIF STATE UNIV®FULLERTON 98.2000 61,890 61,424 71,197 104,305 112,779 123,233 132,094 FULLERTON FAIRCHILD FASTENERS 833 26.2354 23,840 27,310 22,100 32,915 35,408 38,466 41,102 FULLERTON WORLD CITRUS WEST 1,811 6.3974 82,474 14,836 26,306 323164 $4,264 38,956 39,232 FULLERTON ST.JUDE MEDICAL CENTER - 12.7750 26,636 26,636 17,680 25,619 27,340 29,474 31,296 FULLERTON ORANGE COUNTY METAL PROCESSING 50 19.6506 366 26,641 13,424 22,024 23,a71 25,001 27,411 FULLERTON BECKMAN COULTER,INC. 6,432 14.4015 16,803 17,088 13,361 10,714 21,172 22,973 24,605 H:ldept111n1211ASTREED1ExceINPermlt Usem=02-03 recon and rates Oct 2004.xis 9/29/2004 Page 6 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Olscherpes Estimated CCSD 60% 2002-03 2002-03 2002-03 City Permit User Name Share of Total Total Tatel 2004-05 2004-05 2005-08 200S-07 2007-08 property Flaw 800 SS Adopted Proposed Estimated Estimated Estimated Tex (MG) (Ibs) pbs) Flow Rate per Mllllon Gallons S 360.58 $ 577.30 $ 637.65 S 711.27 S 773.32 800 Rate per 1 OQO Pounds $ 240.55 S 270.68 $ 200.50 $ 311.21 $ 330.63 SS Rate per 1000 Pounds $ 230.46 $ 414.27 $ 432.14 $ 454.19 $ 473.50 FULLERTON P C AMETAL FINISHING,INC. 98 16.3000 3,700 4,958 8,109 12,465 13,601 14,998 16,175 FULLERTON WINONICS,INC. 59 16.2636 919 2,108 0,725 10,510 11,644 12,010 13,878 FULLERTON WESTERN YARN DYING 248 0.7536 11,160 2,130 6,778 7,810 8,454 9,263 9,929 FULLERTON NELCO PRODUCTS,INC. 283 8.0274 5,459 5,469 5,017 8,373 0,052 9,888 10,597 FULLERTON JOHNSON CONTROLS BATTERY INC. 2,174 9.0172 1,835 5,241 5,064 7,801 6,572 9,396 10,084 FULLERTON CARGILL INC. 1,107 6.2634 7,742 5,020 5,426 71765 0,390 0,137 0,772 FULLERTON SUNCLIPSE,INC.(CORRUGATOR PLANT) 1,032 1.6164 13,838 11,908 e,874 9,611 10,1ea 103864 11,461 FULLERTON WEIDMANN WATER CONDITIONERS,INC. 20 7.0213 213 4,060 3,941 61313 6,866 7,644 8,119 FULLERTON MONOGRAM SYSTEMS 1,979 3.4190 2,881 83691 4,026 6,312 %723 7,230 7,664 FULLERTON B 1 TECHNOLOGIES,INC. 1,554 2.2036 2,590 2,614 2,079 3,056 %282 3,661 3,708 FULLERTON KRYLER CORPORATION - 3.1262 250 260 1,300 2,016 2,217 2,464 2,672 FULLERTON SUNCLIPSE INC. 13032 1.1293 3,443 2,430 1,853 2,593 2,700 2,981 3,164 FULLERTON SCIENTIFIC SPRAY FINISHES,INC. 25 1.6540 1,426 1,105 1,226 1,799 1,943 2,122 2,274 FULLERTON CARAN PRECISION ENGINEERING 556 0.6203 1,439 1,420 955 1,384 1,477 11693 1,691 FULLERTON SANTANA SERVICES 15 0.4538 34 895 389 642 686 740 786 FULLERTON OR SMOOTHIE ENTERPRISES - 0.0416 67 87 58 83 a9 96 102 FULLERTON FULLERTON PLATING 388 0.2750 85 81 142 216 235 259 270 GARDEN GROVE HOUSE FOCOS AMERICA CORPORATION - 76.7310 1,019,071 367,946 369,484 472,744 602,114 539.043 570,012 GARDEN GROVE U.S.DYEING&FINISHING INC. Bea 208.0300 380,501 100,667 209,560 289,640 311,835 339,355 362,717 GARDEN GROVE PILKINGTCN AEROSPACE 2,381 19.1630 6,843 42,052 10,643 30,065 32,076 34,548 36,062 GARDEN GROVE LINFINITY MICROELECTRONICS INC. 3,241 27.3190 11096 5,787 11,721 16,465 20,234 22,400 24,220 GARDEN GROVE IDEAL UNIFORM RENTAL SERVICE - 7.7470 14,380 25,030 12,402 18,740 10,910 21,360 22,602 GARDEN GROVE GOODWIN COMPANY 142 1.7550 27,415 2,157 7,070 0,328 0,261 10,780 11,441 GARDEN GROVE CATALINA CYLINDERS A DIV.OF APP 636 6.7468 5,669 4,995 5,092 7,505 6,102 8,639 9,454 GARDEN GROVE AIR INDUSTRIES CORP.-KNOTT 11856 3.9312 0,107 8,107 5,441 7,864 8,413 0,070 0,630 GARDEN GROVE COASTLINE METAL FINISHING CORP. 230 5.9377 1,357 2,283 3,070 4,741 5,164 5,683 6,121 GARDEN GROVE ELECTRON PLATING III INC. 131 5.1320 409 1,001 2,247 3,604 3,640 4,261 4,698 GARDEN GROVE BAZZ HOUSTON CO. 343 3.0850 2,926 1,604 2,2/6 3,185 3,449 3,774 4,050 GARDEN GROVE CANNON EQUIPMENT WEST INC. 437 1.2770 1,263 1,887 1,406 21048 2,193 2,373 2,527 GARDEN GROVE LACEY CUSTOM LINENS 40 1.1490 1,216 3,270 1,508 2,351 2,601 2,688 2,844 GARDEN GROVE AIR INDUSTRIES CORP.(CHAPMAN) 508 0.5370 1,386 1,025 804 1,139 1,216 1,311 1,392 GARDEN GROVE D a S CUSTOM PLATING INC. 42 0.8982 407 460 642 819 888 074 1,046 GARDEN GROVE CD VIDEO INC - 0.6873 440 440 460 687 743 812 870 GARDEN GROVE BASIC ELECTRONICS,INC. 201 0.2176 833 308 301 470 512 554 500 GARDEN GROVE STAR POWDER COATING 9 0.0306 106 30 45 69 63 69 73 GARDEN GROVE MIRACLE STRIPPING&PLATING,INC - 0.0220 48 45 30 44 47 61 64 GARDEN GROVE GRAPHIC PACKAGING CORP. 2,043 0.0569 1,995 1,925 1,325 1,921 2,050 2,210 2,346 HUNTINGTON BEACH BOEING COMPANY(GENERAL FAC) 6,970 55.9220 04,640 102,113 09,944 137,487 146.076 166,484 105,492 H:ldept111n12101STREMExcenPermlt Users\2002-03 recan and rates Oct 2004.01 9/29/2004 Page 7 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Dlscharpes Estimated OCSD 80% 2002-03 2002-03 2002-03 Share of Total Total Total 2004.05 2004-05 2005-06 2006-07 2007-08 City Permit User Name Property Flow 800 SS Adopted Proposed Estimated Estimated Estimated Taut (MG) Qbs) 4bs) Flew Rate per Mlilien Gallons $ 380.58 $ 677.30 S 637.55 $ 711.27 S 773.32 800 Rate per 1000 Pounds $ 248.65 S 270.68 S 208.50 $ 311.21 $ 330.53 SS Rate per 1000 Pounds $ 238.46 $ 414.27 $ 432.14 $ 454.19 S 473.60 HUNTINGTON BEACH JOHN A.THOMAS 11.6342 71,025 6,210 23,422 20,514 30,592 33,199 35,413 HUNTINGTON BEACH COLUMBIA HUNTINGTON BEACH HOSPITAL 908 10.6716 22,042 22,042 14,431 21,200 22,624 24,390 25,807 HUNTINGTON BEACH NUEVO ENERGY CO(HB) 103 11.4379 14,600 20,324 12,741 10,029 20,345 21,072 23,361 HUNTINGTON BEACH CAL-AURUM INDUSTRIES INC. 220 13.0295 626 944 5,163 8,082 0,895 9,891 10,730 HUNTINGTON BEACH BRINDLEITHOMAS OIL COMPANY 59 2A900 19,342 639 6,707 6,765 7,263 7,888 8,389 HUNTINGTON BEACH CAMBRO MANUFACTURING 934 3.5750 7,454 7,464 4,948 7,169 7,651 0,248 0,768 HUNTINGTON BEACH PRECISION RESOURCE,CALIF DIV 626 3.8066 5,881 4,051 3,032 5,469 5,876 6,379 8,807 HUNTINGTON BEACH SPEEDY CIRCUITS,FACILITY#2 120 4.7120 4,137 1,203 3,073 4,375 4,756 5,220 5,623 HUNTINGTON BEACH GARO-OIL PRODUCTION LLC 130 3.4073 - - 1,260 2,010 2,230 2,488 2,705 HUNTINGTON BEACH TIODIZE COMPANY,INC. 96 3.0931 488 655 1,417 2,169 2,396 2,649 2,663 HUNTINGTON BEACH CITY OF HUNTINGTON BEACH FIRE DEPARTMENT - 2.5012 1,064 709 1,365 2,020 2,208 2,432 2,S22 HUNTINGTON BEACH BOEING COMPANY(GRAHAM) - 1.1200 2,335 2,335 1,650 2,246 2,397 2,584 2,744 HUNTINGTON BEACH CAPRO OIL COMPANY 22 1.9162 - 706 1,106 1,221 1,362 1,481 HUNTINGTON BEACH SOUTH COAST OIL CORPORATION 182 1.7892 - - 659 1,033 1,141 1,273 1,384 HUNTINGTON BEACH HB OIL OPERATIONS TRUST 22 1.0460 1,137 744 847 1,222 1,318 1,438 1,539 HUNTINGTON BEACH SOLDERMASK,INC. 132 0.3164 1,140 942 05 883 039 1,009 11060 HUNTINGTON BEACH CEMPI INDUSTRIES INC. 176 0.6315 560 660 460 691 743 807 an HUNTINGTON BEACH LOCI GRAPHICS,INC. 144 0.7109 306 107 378 502 014 677 730 HUNTINGTON BEACH MILLETT INDUSTRIES - 0.3409 am 596 418 007 649 701 746 HUNTINGTON BEACH M.S.BELLOWS 62 OA465 1,118 267 393 403 527 see 604 HUNTINGTON BEACH ROCK INDUSTRIES,INC. 97 0.3820 347 308 301 442 477 520 556 HUNTINGTON BEACH SPEEDY CIRCUITS,DIV OF PJC 0.2320 484 484 321 465 496 535 560 HUNTINGTON BEACH PIER CIL COMPANY 35 0.5550 - - 205 320 354 345 429 HUNTINGTON BEACH PETROPRIZE 7 0.2077 108 166 103 205 222 HUNTINGTON BEACH BRINDLEITHOMAS 0.1460 64 84 93 104 113 HUNTINGTON BEACH SIGNAL ASSOCIATES 3 0.0083 25 39 44 49 53 HUNTINGTON BEACH SOUTH COAST OIL COMPANY - 0 0 0 0 0 HUNTINGTON BEACH ALEXANDER OIL COMPANY 3 0 0 0 0 0 HUNTINGTON BEACH W.M.ELLIOTT 7 - 0 0 0 0 0 HUNTINGTON BEACH WILVIAN JEWELL RENNER 17 0.0029 1 2 2 2 2 HUNTINGTON BEACH WILLIAM J.SCOTT 28 0 0 0 0 0 HUNTINGTON BEACH O'DONNELL CIL COMPANY 65 0.0091 19 19 13 18 19 21 22 HUNTINGTON BEACH S d C OIL CORPORATION 108 - - - 0 0 0 0 0 IRVINE ROYALTY CARPET MILLS INC. 166 173.3180 752,704 105,273 270,008 347.410 373,147 405,330 432,668 IRVINE B.BRAUN MEDICAL INC. 16,072 237.2620 60,889 43,220 110,353 100,594 184,564 204,152 220,694 IRVINE MARUCHAN,INC. 890 14.6254 137,997 20,673 ",619 54,360 58,070 62,736 66,711 IRVINE TODDS ENTERPRISES 424 7.7908 120,768 53,243 45,589 59,249 62,822 67,314 71,159 IRVINE PACKARD-HUGHES INTERCONNECT SYSTEMS 094 30.2168 11,619 0,427 19,691 29,691 32,429 35,792 383832 H:lde;Mfln12101STREED1Ezcel~Permit Usersti2002-03 recan and rates Oct 2004.xla 9/29/2004 Page 8 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Discherges Estimated OCSD eO% 2002-03 2002-03 2002-03 Shore of Total Total Total 2004-05 2004-05 2005-06 20W07 2007-08 City Permft User Name Property Flow 800 SS Adopted Proposed Estimated Estimated Estimated Tax (MG) pbs) (Ibs) Flow Rate per MII!len Gallons $ 368.50 $ 577.30 S 637.66 S 711.27 S 773.32 800 Rate per 1000 Pounds $ 248.65 $ 270.68 $ 268.60 $ 311.21 S 330.53 SS Rate per 1000 Pounds $ 238.45 $ 414.27 $ 432.14 $ 454.10 $ 473.60 IRVINE E13WARD LIFESCIENCES LLC 2,810 26.0706 25,842 25,842 22,194 32,751 35,244 38,323 40,039 IRVINE UNION INCORPORATED - 16.6178 64,008 11,849 22,006 28,644 30,650 33,228 36,539 IRVINE PRUDENTIAL OVERALL SUPPLY 216 0.0088 18,583 12,621 9,346 13,188 14,069 15,167 10,104 IRVINE JEFFERSON SMURFIT CORPORATION(U.S.) 2,349 4.9820 18,334 9,469 8,644 11,750 12,545 13,536 14,301 IRVINE RAYNE DEALERSHIP CORP - 12.3764 e11 3,376 5,519 8,709 9,628 10,627 11,372 IRVINE ENTHONE INC. 211 2.0340 23,113 1,707 0,023 8,176 5,741 91466 10,063 IRVINE ELECTROLURGY INC. 07 9.4495 1,084 5,106 4,970 7,884 6,544 9,370• 10,003 IRVINE SUNSET ENVIRONMENTAL,INC.#2 154 1.8145 0,75e 13,683 5,611 8,545 9,019 9,008 10,115 IRVINE COSMOTRONIC CORP 2e 3.1836 6,851 1,718 3,288 4,404 4,749 5,177 5,640 IRVINE RICOH ELECTRONICS INC. 11e 3.9096 3,026 2,961 2,900 4,303 4,646 5,060 5,426 IRVINE PRINTRONIX,INC. 1,184 1.8325 3,375 3,375 2,319 31369 3,800 3,866 4,130 IRVINE NEWPORT CORPORATION 1,303 1.6967 3,636 3,530 2,347 33401 3,630 3,913 4,155 IRVINE 0 C B REPROGRAPHICS 106 1.6626 3,258 3,260 2,162 3,133 3,344 3,805 3,828 IRVINE FMH INVESTOR GROUP 370 1.4464 1,593 1,467 1,270 1,874 2,016 2,191 2,340 IRVINE NEWPORT PRECISION OPTICS 0.6627 1,162 1,233 827 1,208 11290 1,393 1,480 IRVINE SUNSET ENVIRONMENTAL,INC.#1 246 0.6850 1,220 1,220 810 1,173 1,262 11350 1,433 IRVINE ALLTEK CIRCUIT INC. - 0.9059 284 94 427 639 700 776 539 IRVINE DYE TECHNIQUE INC. 28 0.1348 281 281 187 270 288 311 330 IRVINE WINTEC,LLC 0.0981 168 1e2 117 170 182 lea 200 LA HABRA RALPHS GROCERY COMPANY(BAKERY) 2,716 6.6379 01,387 17,621 29,339 35,827 38,169 41,120 43,036 LA HABRA SHEPARD BROTHERS INC. 310 0.3155 21,084 932 5,803 8,619 6,940 7,490 7,962 LA HABRA WATER MAN 9 5.6179 190 190 2,163 3,373 3,718 4,141 4,497 LA HA13RA ARNOLD ELECTRONICS,INC.#1 22 4.1023 474 733 1,805 2,800 3,069 3,398 3,676 LA HABRA LA HABRA PLATING CO.INC. 15 2.1230 08 e8 815 1,272 1,402 1,562 1,8g8 LAPALMA LA PALMA INTERCOMMUNITY HOSPITAL 1,095 12.3087 26,664 26,664 17,035 24,684 26,342 20,308 30,153 LA PALMA PERFORMANCE MACHINE INC 1.1621 2,423 2,423 1,808 2,330 2,487 21081 2,847 LOS ALAMITOS JOINT FORCES TRAINING BASE,LOS ALAMITOS - 25.6853 30X65 33,605 25,223 37,240 39,958 43,300 46,160 LOS ALAMITOS LOS ALAMITOS GENERAL HOSPITAL 3,871 12.3191 25,885 25,665 17,049 24,705 26,304 28,422 30,170 LOS ALAMITOS TREND OFFSET PRINTING SERVICES INC. - 8.6231 17,070 17,979 11,934 17,293 18,464 19,895 21,124 LOS ALAMITOS ARROWHEAD PRODUCTS CORPORATION 2,082 10.2132 9,669 9,430 0,416 12,420 13,376 14,655 16,550 LOS ALAMITOS HEARING INSPECTION INC. 94b 0.8458 1,754 1,738 1,164 1,685 1,768 1,939 2,059 NEWPORT BEACH JAZZ SEMICONDUCTOR 43,092 267.5677 12,271 12,271 100,207 157,093 173.00 192,566 209,041 NEWPORT BEACH HOAG MEMORIAL HOSPITAL PRESBYTERIAN - 35.9830 75,020 75,02e 49,800 72,162 77,008 63,019 68,160 NEWPORT BEACH HIXSON METAL FINISHING 41 15.7516 894 2,684 6,888 10,447 11,400 12,701 13,747 NEWPORT BEACH RENAL RESEARCH INSTITUTE,LLC - 2.2454 4,M 4,682 31108 4,603 4,605 5,180 5,601 NEWPORT BEACH AMETEK AEROSPACE 202 2.4275 3,124 3,057 2,400 3,513 3,770 4,087 4,357 NEWPORT BEACH CITY OF NEWPORT BEACH - 2.2182 1,604 1,694 1,643 2,441 2,635 2,874 3,077 NEWPORT BEACH BASIN MARINE INC. 18 0.3406 306 251 264 387 418 450 488 H;ldeptfln\2101STREEDIExcel9ermit UserM2002-03 recon and rates Oct 2004.xls 9/29/2004 Pape 9&13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Dlscheiges Estimated OCSO 60% 2002-03 2002-03 2002-03 City Permft User Name Shera of Total Total Tote) 2004-05 2004.05 2005-00 20W07 2007-08 Property Flow BCD SS Adopted Proposed Estimated Estimated Estimated Tax (MG) tabs) Cbs) Flow Rate per MEllion Gallons S 368.58 S 577.30 $ 637.65 $ 711.27 $ 773.32 800 Rate per 1000 Pounds S 248.55 E 270.08 $ 280.60 $ 311.21 $ 330.63 SS Rate per 1000 Pounds $ 238.45 $ 414.27 $ 432.14 S 454.19 S 473.50 ORANGE UCI MEDICAL CENTER - 63.2390 131,853 131,853 87,521 126,821 135,337 145,001 154,018 ORANGE ANGELICATEXTILE 268 69.9501 66,774 60,148 681816 100,063 108,086 117,901 126,392 ORANGE ST.JOSEPH HOSPITAL 210 52.9765 110,456 110,456 73,310 108,240 113,374 122,224 120,778 ORANGE GRANDE TCRTI LLA INC. 205 3.2605 137,285 69,118 51,805 67,676 71A54 76,434 80,626 ORANGE CHILDREN'S HOSPITAL OF ORANGE COUNTY - 12.8865 26,410 20,410 17,630 25,402 27,107 29,223 31,020 ORANGE MARCEL ELECTRONICS INT. 162 21.8946 10,008 7,439 12,346 18,446 20,078 22,085 23,781 ORANGE WASTE MANAGEMENT OF CC TRANSFER 393 3.2326 39,024 6,642 12,212 14,726 15,714 16,901 18,022 ORANGE CHAPMAN MEDICAL CENTER 1,253 7.1454 14,898 14,898 0,889 14,330 15,292 16,485 17,504 ORANGE CIRTECH INC. 160 6.7337 0,197 7,940 6,663 9,670 10,381 11,262 12,011 ORANGE WEST AMERICAN RUBBER COMPANY INC. 1,163 7.0405 6,686 6,666 5,850 8,643 0,300 10,124 10,819 ORANGE SIERRA SPRING WATER COMPANY 88 7.9708 2,471 1,228 3,844 5,778 0,325 e,995 7,661 ORANGE STATEK CORPORATION 290 4.6971 7,773 4,278 4,603 61588 7,088 7,703 8,227 ORANGE CONTINUOUS COATING CORPORATION 402 5.910o 1,135 2,030 2,944 4,560 4,973 5,479 5,907 ORANGE SVG THERMCO SYSTEMS INC. 683 2.7000 6,630 5,e30 3,737 6,416 5,778 6,229 0,614 ORANGE PLATECORP#2,INC. 176 5.4129 1,725 1,269 2,720 4,118 4,497 4,663 5,357 ORANGE ULTRA PURE METAL FINISHING,INC. 118 4.8517 363 4,108 2,850 4,601 4,973 5,430 5,817 ORANGE ORANGE COUNTY PLATING CO.,INC. 18 4.8133 962 1,294 2,322 3,675 3,905 4,311 4,663 ORANGE CIRCUITACCESS 65 1.0015 10,118 730 3,060 3,e20 3,073 4,193 4,465 ORANGE VILLA PARK ORCHARDS ASSOCIATION 474 1.8421 3,634 5,808 3,012 4,532 4,815 51166 6,460 ORANGE DUCOMMUNAEROSTRUCTURES 2,083 2.2010 4,546 1,936 2,680 3,707 3,607 4,367 4,882 ORANGE SOUTH COAST WATER 299 2.8263 211 3,438 1,014 3,113 3,349 3,638 3,684 ORANGE FOAMEX L.P. - 1.5114 3,030 3,056 2,039 2,059 3,168 3,406 3,617 ORANGE CADILLAC PLATING 137 2.4991 376 1,052 1,206 1,280 2,158 2,372 2,555 ORANGE HIGHTOWER PLATING 6 MANUFACTURING CO. 473 2.5353 117 1,265 1,203 2,015 2,192 2,410 2,693 ORANGE HAMILTON MATERIALS 112 1.1900 2,481 2,481 1,647 2,386 2,647 2,745 2,016 ORANGE DUNHAM METAL PROCESSING 19 1.6832 644 2,924 1,445 2,310 2,401 2,680 2,851 ORANGE QUALITY ALUMINUM FORGE 02 77 1.1122 1,079 1,640 1,270 1,833 1,963 2,124 2,261 ORANGE SERRANO WATER DISTRICT 0.7051 26 6,217 1,543 2,627 2,769 2,943 3,094 ORANGE THERMAL-VAC TECHNCLCGY - 1.2226 60 1,424 805 1,312 1,412 1,636 1,839 ORANGE QUALITY ALUMINUM FORGE 175 0.9273 477 582 509 808 980 1,072 1,150 ORANGE S F P P,L.P. 32 0.3604 2,042 288 712 854 948 1,027 1,095 ORANGE DITTY DRUM COMPANY,INC. 27 0.9733 338 338 523 793 884 051 1,024 ORANGE CIRCUIT TECH INC. 116 0.3761 646 215 350 481 619 660 808 ORANGE INDEPENDENT FORGE 175 0.3297 520 639 370 555 693 641 682 ORANGE ABADESURRING AND TUMBLING - 0.2660 640 343 310 444 470 file 660 ORANGE PERFORMANCE POWDER,INC. 0.3066 323 299 265 390 419 450 487 ORANGE BURLINGTON ENGINEERING INC. 61 0.2627 293 293 239 352 370 411 438 ORANGE GOMTECH ELECTRONICS 27 0.1466 57 67 81 123 134 147 150 H:adeptl11nW MOTREEMExcenPermit Users12002-03 recon and rates Oct 2004.xis 9129/2004 Page 10 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Discharges Esdmated CCSD 60% 2002-03 2002-03 2002-03 City Permit User Name Share of Total Total Total 2004-05 2004-05 2005-06 20W07 2007-08 Property Flow BOD SS Adopted Proposed Estimated Estimated Estimated Tax (MG) Qbs) Qbs) Flaw Rate per Mllilon Gallons $ 368.50 $ 577.30 $ 637.56 $ 711.27 S 773.32 800 Rate per I M Pounds $ 248.65 S 270.68 $ 280.60 $ 311.21 S 330.63 SS Rate per 1000 Pounds $ 238.45 $ 414.27 S 432.14 $ 454.19 S 473.50 ORANGE DATA AIRE INC.#2 923 0.4202 856 734 543 778 832 899 958 PLACENTIA KNOTTS BERRY FARM FOODS 2,041 16.5556 871,488 53,200 235.396 267,491 294,009 307,154 326,046 PLACENTIA PLACENTIA LINDA COMMUNITY HOSPITAL 2,855 13.3404 27,815 27,816 18,463 26,763 26,650 30,778 32,680 PLACENTIA FROZSUN FOODS,INC. 163 7.4577 28,384 6,618 11,382 14,730 15,803 17,144 18,283 PLACENTIA S.B.THOMAS INC. 742 1.7687 19,044 4,113 6,386 7,880 5,309 0,053 9,610 PLACENTIA CALIF CONSOLIDATED WATER PURIFICATION 246 3.6176 303 12,679 4,668 7,637 6,104 8,878 0,170 PLACENTIA EXCELLO CIRCUITS MANUFACTURING CORP. 153 5.4606 31083 1,264 3,085 4,616 4,925 6,427 6,861 PLACENTIA CARTEL ELECTRONICS - 3.6020 3,095 868 2,309 3,285 3,573 3,928 4,220 PLACENTIA HARTWELL CORPORATION 466 1.3611 2,422 1,092 1,679 2,266 2,427 2,626 2,798 PLACENTIA K C A ELECTRONICS,INC. 510 1.8194 1,491 567 1,248 1,013 1,666 2,162 2,310 PLACENTIA NOLLAC OIL COMPANY 12 1.9307 259 772 980 11505 11839 1,605 1,944 PLACENTIA GEORGEA.JONES,IMPERIAL42 WELL 29 1.5483 314 314 723 1,108 1,212 1,340 1,448 PLACENTIA BRIGHT ARMOUR PLATING 78 1.3014 165 287 689 915 1,002 1,10a 1,197 PLACENTIA SUPERIOR PROCESSING 128 0.5574 132 111 265 404 441 4a8 627 SANTA ANA STREMICKS HERITAGE FOODS LLC 3,535 88,9928 2,109,695 743,727 734,507 830,531 986,778 1,057,649 1,118,292 SANTA ANA CHROMA SYSTEMS PARTNERS 1,252 167.2663 268,230 43,329 138,652 187,117 202,749 222,127 238,525 SANTAANA IRWODA76 - 207.7076 6,236 1,770 76,280 122,060 134,699 160,169 163,103 SANTA ANA UWMC HOSPITAL CORPORATION 8,030 37.7209 78,60 70,648 62,205 76,640 60,726 07,027 92,406 SANTA ANA EL METATE FOODS,INC. 317 3.8308 101,644 51,273 38,901 50,965 53,923 57,645 60,836 SANTAANA GOGLANIAN BAKERIES 790 0.0730 71,164 63,166 $6,725 50,091 52,074 56,578 69,674 SANTA ANA EL TORO MEAT SHOP 128 4.1564 86,921 24,970 29,093 36,276 38,621 41,353 43,772 SANTAANA GEMINI INDUSTRIES INC. 97 5.6713 853 133,608 34,161 58,856 61,599 64,903 67,931 SANTAANA MICRO SEMI CORP. 1,692 30.4213 18,864 11,731 10,109 26,984 20,327 32,211 34,651 SANTAANA DANONE WATERS OF N.A-SANTA ANA - 35.6826 4,219 8,009 16,073 25,001 27,364 30,259 32,703 SANTAANA ORANGE COUNTY REGISTER 0,584 16.1072 36,280 32,482 22,451 32,305 34,484 37,189 39,497 SANTA ANA ITT CANNON,A DIVISION OF ITT INDUSTRIES 14,959 31.0324 16,173 13,862 10,612 27,760 30,140 33,086 35,572 SANTAANA TTMTECHNOL0131ES#1 162 17.7699 21,094 11,125 14,453 20,569 22,235 24,271 25,097 SANTAANA CULLIGAN WATER CONDITIONING - 16.4408 360 6,24a 7,641 12,170 13,288 14,645 15,794 SANTA ANA MEDTRONIC HEART VALVES,INC. 627 7A975 16,359 10,107 0,143 12,745 13,702 14,828 15,707 SANTA ANA INTERNATIONAL FOOD SOLUTIONS,INC 712 2.8088 31,450 4,163 %542 11,665 12,659 13,671 14,534 SANTAANA UNIVERSAL CIRCUITS INCORPORATED 647 14.0630 2,053 4,902 6,539 10,664 11,633 12,823 13,828 SANTAANA ASTECH ENGINEERED PRODUCTS 118 13.9800 2,449 2,124 6,271 0,610 10,643 11,677 12,633 SANTA ANA EMBEE INC.42 25 13,4831 2,390 31600 6,424 9,924 10,843 11,071 12,923 SANTAANA BURROWS IND.DBA MINUTEMAN PUMPING 177 2.7786 24,011 4,613 0,092 10,014 10,692 11,644 12,259 SANTAANA PIONEER CIRCUITS 315 9.7055 6,649 4,063 6,204 6,106 9,586 10,848 11,665 SANTAANA ALPHANETICS INC. 102 0.3160 4,891 1,677 6,040 7,397 8,076 6,910 9,816 SANTA ANA MARKLAND MANUFACTURING,INC. 407 0.0452 3,370 2,977 4,881 7,387 8,026 8,835 0,518 SANTA ANA TTM TECHNOLOGIES,INC 642 6.6746 6,207 6,337 5,588 81274 8,912 9,680 10,306 H:ldeptffn1210\STREED\Excel\Permlt UseW2002-03 recon and rates Oct 2004.xis 9/29/2004 Page 11 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actual Discharges Estimated OCSD 60% 2002-03 2002-03 2002-03 City Permit User Name Share of Taal Total Total 2004-05 2004-05 2005-08 2006-07 2007-06 Property Flaw BCD SS Adopted Proposed Estimated Estimated Estimated Tax (MG) Qbs) pbs) Flog Rate per Million Gallons S 368.58 S 57710 S 637.65 $ 711.27 S 773.32 BCD Rote per 1000 Pounds $ 248.55 $ 270.66 $ 260.50 $ 311.21 $ 330.53 SS Rate per 1000 Pounds S 238.45 $ 414.27 $ 432.14 S 454.19 $ 473.50 SANTA ANA FABRICATION CONCEPTS CORPORATION 776 5.5601 5,655 8,054 5,379 0,082 8,663 9,379 0,269 SANTA ANA EMBEE INC.#1 30 7.0546 626 1,698 3,164 4,951 6,41a 5,991 6,474 SANTA ANA TEXTRON AEROSPACE 4,539 7.0782 6,073 5,683 5,400 7,989 8,620 9,398 10,058 SANTA ANA ANOMIL ENT.DBA DANCO METAL SURFACING 150 6.4452 2,679 3,417 3,488 5,284 5,721 6,250 6,714 SANTA ANA ANODYNE INC. 24 6.6640 646 4,441 3,307 5,284 6,716 6,246 6,696 SANTA ANA EMBEE INC.#3 30 6.0761 1,012 1,327 2,066 4,493 4,912 5,426 SA69 SANTA ANA ALUMINUM FORGE-DIV.OF ALUM.PRECISION 164 2.2268 2,011 10,307 3,779 6,101 6,466 6,693 7,269 SANTA ANA WEBER PRECISION GRAPHICS 162 1.0217 9,209 1,161 2,940 3,560 3,806 4,116 4,379 SANTA ANA CHROME TECHNOLOGY,INC. 217 3.8819 1,276 2,027 2,231 3,426 3,719 4,079 4,384 SANTA ANA SOUTH COAST CIRCUITS#3 63 3.6930 2,084 1,369 2,169 3,205 3,403 %826 4,116 SANTA ANA RICOH ELECTRONICS#2 785 1.7601 4,412 4,085 2,710 31897 4,164 4,473 4,746 SANTAANA ALUMINUM PRECISION PRCDUCTS INC.CENTRAL - 1.5766 5,120 1,955 2,320 3,106 3,327 3,603 3,837 SANTA ANA DATA ELECTRONIC SERVICES INC. 75 3.1141 1,632 1,021 1,797 2,663 2,690 3,187 3,431 SANTA ANA ACTIVE PLATING INC. 3.2736 1,103 796 1,686 2,535 2,767 3,052 3,293 SANTA ANA INTEGRATED AEROSPACE,INC. - 1.551 a 3,274 3,108 2,127 3,069 3,276 3,534 3,753 SANTA ANA GALLADE CHEMICAL INC. 170 1.980 2,303 11860 1,762 2,546 2,742 2,9a2 3,186 SANTA ANA ACCURATE CIRCUIT ENGINEERING 63 1.3762 4,283 1,027 1,616 2,370 2,666 2,778 2,065 SANTA ANA ALUMINUM PRECISION PRCDUCTS INC.-SUSAN 124 1.7643 2,144 2,116 11696 2,487 2,070 2,697 31090 SANTA ANA VERTEQ PROCESS SYSTEMS INC. - 2.1927 1,271 1,271 1,427 2,130 2,314 2,532 2,717 SANTA ANA REID METAL FINISHING 134 1.9402 939 910 1,168 1,762 1,901 2,088 2,242 SANTA ANA R B C TRANSPORT DYNAMICS CORP. 290 1.0326 2,122 2,142 1,419 2,058 2,196 2,360 2,614 SANTA ANA SOUTH COAST CIRCUITS 44 72 2.2302 431 265 990 1,610 1,657 11839 1,988 SANTA ANA ELECTROSERVICES 2000 INC. 174 2.1012 641 73 $51 1,417 1,556 1,727 1,871 SANTA ANA ALMATRON ELECTRONICS,INC. 107 1.7311 1,048 664 1,054 1,664 1,688 1,864 1,996 SANTA ANA BRASSTECH,INC - 0.0141 1,006 1,608 1,265 1,833 1,958 2,109 2,239 SANTA ANA SOUTH COAST CIRCUITS#2 - 1.2736 2,019 297 1,042 1,405 1,523 11689 1,793 SANTA ANA PLEI ON CORPCRATI ON#2 706 1.0439 1,319 1,440 1,058 1,560 1,672 1,811 1,929 SANTA ANA L d N UNIFORM SUPPLY COMPANY,INO.(CLEAN) - 0.7479 1,753 1,781 1,136 1,644 1,752 1,886 2,001 SANTA ANA WHEEL SERVICES GROUP,INC - 1.6010 219 773 a22 1,223 1,408 1,644 1,682 SANTA ANA SOUTH COAST CIRCUITS,INC. 79 1.5479 459 493 802 1,222 11333 1,468 1,582 SANTA ANA PACIFIC QUARTZ,INC. 88 0.8409 1,400 1,389 092 1,446 1,546 1,671 1,778 SANTA ANA SOUTH BAY CHROME SALESICHROME EFFECTS 126 1.4043 476 700 803 1,220 1,336 1,485 1,576 SANTA ANA ORANGE CONTAINER,INC. - 0.6319 1,338 1,769 994 1,472 1,68a 11663 1,782 SANTA ANA MASK TECHNOLOGY INC. 126 0.9016 611 397 012 am 980 1,076 1,167 SANTA ANA SELECT CIRCUITS 275 0.7603 1,260 190 649 675 948 11039 1,116 SANTA ANA S P S TECHNOLOGIES 2,954 3.9208 3,404 3,404 3,103 4,695 4,653 6,394 %769 SANTA ANA E F T FAST QUALITY SERVICE,INC. 88 0.9660 122 357 471 738 605 sa7 956 SANTA ANA SANTA ANA PLATING(CNK CAPITAL) 44 0.3965 827 027 640 795 849 915 071 H:ldepttln\210tSTREEMExcel9ermit Users12002-03 recon and rates Oct 2004.xis 9/29/2004 Page 12 of 13 Estimated Impact on Permit Users to 2007-08 Based Upon 2002-03 Actusl Dh3cherges Estimated OCSO 80% 2002-03 2002-03 2002-03 City Permit User Name Share d Total Total Total 2004-06 2004-05 2006-08 20W07 2007-08 Property Flow SOD SS Adopted Proposed Estimated Estimated Estimated Tex (MG) Qbs) Qbs) Flow Rate per Mllllcn Gallons $ 360.50 $ 677.30 S 537.56 S 711.27 S 773.32 800 Rate per 1000 Pounds $ 246.55 $ 270.60 $ 200.60 S 311.21 $ 330.63 SS Rate per 1000 Pounds S 238.45 $ 414.27 S 432.14 $ 454.10 $ 473.60 SANTA ANA CAL-TRONICS CIRCUIT INC.-SANTA ANA 0.0315 546 272 433 625 678 743 798 SANTAANA LAM-PLATE TECH INC. 118 0.7248 327 129 379 560 612 678 730 SANTAANA OLYMPIC POWDER COATINGS INC. 108 0.5203 657 516 463 665 716 778 831 SANTAANA GORILLAS POLISHING AND PLATING 150 0.6832 368 102 389 574 625 688 741 SANTA ANA MARGARETIS TEXTILE SERVICE 233 0.3642 765 765 601 725 775 836 887 SANTA ANA MARK OPTICS INC. 66 0.4100 305 880 469 708 760 814 884 SANTA ANA B A F INDUSTRIES 231 0.4161 640 472 425 808 663 700 766 SANTA ANA PRECIOUS METALS PLATING 93 0.6052 243 204 332 Soo 544 590 645 SANTAANA STRIP CLEAN COMPANY 14 0.6007 184 240 328 601 545 800 646 SANTA ANA PRECISION CIRCUITS WEST INC. - 0.4882 388 303 348 512 554 605 649 SANTA ANA AQUA-CON COMPANY 50 0.6081 149 203 310 470 518 571 616 SANTA ANA ALLOY TECH ELECTROPOLISHING INC. 152 0.4538 232 146 260 385 419 401 407 SANTA ANA MEDEVA PHARMACEUTICALS CA,INC. 131 0.1921 401 401 266 385 411 443 471 SANTAANA VICTORY CIRCUITS INC. - 0.1476 561 65 204 257 277 301 322 SANTA ANA X Z X ELECTRONICS 97 0.1524 324 88 168 212 228 249 266 SANTAANA AUTO-CHLOR SYSTEM OF WASHINGTON,INC. 62 0.0646 483 121 169 212 220 244 250 SANTAANA AQK DEBURRING AND TUMBLING 0.1006 235 189 141 200 214 231 245 SANTAANA DATA SOLDER INC 0.0046 136 135 90 130 139 150 169 SANTAANA HI-TECH STENCILS - 0.0272 53 61 35 51 65 69 63 SANTAANA LAM LIGHTING INC. 2,040 0.6660 1,339 1,394 911 1,324 1,413 1,624 1,e18 SANTAANA PRECISION POWDERCOATING INC, 136 0.1693 143 84 114 166 179 196 210 SEAL BEACH NAVAL WEAPONS STN SEAL BCH CD 043 - 5.2734 10,095 10,995 7,298 10,576 11,280 12,160 12,918 SEAL BEACH ACCURATE METAL FABRICATORS - 2.5550 5,327 5,327 3,638 5,124 6,468 5,805 6,259 STANTON ALL METALS PROCESSING OF O.C.INC. 200 2.9329 2,273 2,239 2,180 3,236 3,493 3,810 4,080 STANTON PURE-CHEM PRODUCTS COMPANY INC. 70 0.1891 317 360 234 344 368 307 422 TUSTIN CITY OF TUSTIN WATER SERVICE(17TH ST.) 96.3091 19 2,428 36,081 6e,e10 62,457 69,611 753SU TUSTIN CITY OF TUSTIN,WATER SERVICE(MAIN ST.) 19.2910 682 1,466 7,625 11,923 13,124 14,693 15,831 TUSTIN TUSTIN HOSPITAL AND MEDICAL CENTER 5.9627 12,432 12,432 8,252 11,955 12,761 13,767 14,607 TUSTIN CITY OF TUSTIN-MAINTENANCE YARD 0.4317 665 873 582 845 202 073 1,033 TUSTIN TOYOTA RACING DEVELOPMENT 02 242 0.4080 798 741 520 759 811 876 931 TUSTIN CHEEK ENGINEERING 8 STAMPING 244 0.3671 442 261 307 439 474 617 553 TUSTIN WESCO SERVICES - 0.0722 293 43 110 139 149 162 173 TUSTIN REVERE TRANSDUCERS,INC. 1,164 1.2217 1,202 1,152 1,024 1,6% 1,024 1,760 11888 WESTMINSTER VENCOR INC OBA VENCOR HOSP-ORANGE COUNTY 1,284 5.8993 12,300 12,300 8,164 11,831 12,625 13,610 14,462 WESTMINSTER LINDBERG HEAT TREATING CO.-ALUMATHERM 708 4.0551 1,408 1,408 2,160 3,305 3,600 3,962 4,268 WESTMINSTER SOUTHERN CALIFORNIA EDISON - 1.3620 2,114 2,099 1,628 2,220 2,306 2,680 2,746 YORBA LINDA AERA ENERGY LLC 204 440.4840 62,594 29,538 184,054 283,470 311,653 346,198 375.31 a YORBA LINDA METRO WATER DISTRICT OF SO CA - 2.0152 3,996 4,000 2,690 3,002 4,166 4,403 4,773 H:\dept1Rn121 GNSTREED\ExcellPermit User8L2002-03 recon and rates Oct 2004.xis 9/29/2004 Page 13 of 13 Estimated Impact on PermR Users to 2007-08 Based Upon 2002-03 Actual Discharges Estimated OCSD 60% 2002-03 2002-03 2002-03 City Permit User Name Share of Total Total Total 2004-05 2004-05 2005-06 2006-07 2007-08 Property Flow 800 66 Adopted Proposed Estimated Estimated Estimated Tax (MG) Qbs) Qbs) Flow Rate per Million Gallons S 368.58 S 577.30 S 637.66 S 711.27 S 773.32 BOD Rate per 1000 Pounds $ 248.55 S 270.68 $ 288.60 $ 311.21 $ 330.63 SS Rate per 1000 Pounds $ 230.45 S 414.27 $ 432.14 $ 454.19 $ 473.60 YORBA LINDA PLEGEL CIL COMPANY(BLATTNER-AH.A) tee 1.9493 115 131 786 1,222 1,345 1,496 1,623 YORBA LINDA COLUMBINE ASSOCIATES 12 0.1483 50 6 68 101 111 123 133 YORBA LINDA SHERWIN D.YOELIN 8 0.1510 25 12 65 99 109 121 131 Total for Permit Users 004,415 6,117.8307 17,914,101 7,478,311 8.490,663 11,478,853 12.300,310 13,323,051 14,193,169 H:beptlflm2l MSTREEMExceltiPermit Users=02-03 recan and rates Oct 2004.xls 9/29/2004 Permit User Rate Calculation Model October 2004 Proposed 2004-05 A B 4 D E F Q H Ref Description Coll 0&M Coll CIP Joint 0&M Joint CIP COPS Equity Ad] SFI Total 1 Budget Requirements: 22,605,790 62,058,000 86,614,140 169,165,600 41,917,000 2,638,000 1,876,000 386,874,530 2 Remove interfund budgets (2,638,000) (1,876,000) (4,514,000) 3 Remove Fluctuating CIP With Capacity (62,058,000) (169,166,600) (231,223,600) 4 Add Avg"Cash-funded"CIP W/o Capacity 9,877,061 32.550,843 42,427,904 5 Requirements for Rate Setting 22,605,790 9,877,061 86,614,140 32.550,843 41,017,000 0 0 193,564,em 6 Reduce for Interest Income (4,677,628) (12,750,874) (3,159,498) (20,58e,000) 7 Net Requirements for Smooth Rate Setting 22,605,790 5,199,433 86,614,140 19,799,969 38,757.502 0 0 172,976,834 No Capacity No Capacity No Capacity 8 Allocation Parameters: 04-05 Budget Validated CIP 03-04 Actual Validated CIP Combo VCIP 9 Flow 50% 90% 12% 35% 50% 10 BOD 10% 34% 33% 27% 11 SS 50% 54% 32% 23% Resultant Weighted 12 Allcwdon to Parameters: Coll 0&M Coll CIP Joint O&M Joint CIP COPS Total Average% 13 Flow 11,296,561 4,679,490 10,393,697 6,929,989 19,378,751 52,678,488 30% 14 BOD 0 510,943 29,448,808 6,533,990 10,464,526 46,967,266 27% 15 SS 11,309,229 0 46,771,636 6,335,990 8,914,225 73,331,080 42% 16 22,605,790 5,199,433 86,614,140 19.709,969 38,757,502 172,976,834 100% Proposed 17 Parameter Rates: Coll O&M Coll CIP Joint O&M Joint CIP COPS Rat89 Would Raise 18 Flow Q 250 mgd,per MG 123.80 51.28 113.90 75.95 212.37 577.30 52,678,488 19 BOD Q 228 mg/L,per 1000 lb 0.00 3.00 169.72 37.66 60.31 270.68 46,987,266 20 SS®232.6 mg/L,per 1000 lb 63.89 0.00 264.23 35.79 50.36 1 414.27 ji 73,331,080 21 172,976,834 M:%deptltin12101STREEMExceHcld d copy\STRATPLN1Permlt user model 10-2004.xls-Oct 2004 Proposal 9/29/2004 Permit User Rate Calculation Model Estimated 2005-06 A 8 D D E F Q H Ref Description Coll O&M CcII CIP Joint O&M Joint CIP COPs Equity Ad) SFI Total 1 Estimated Budget Requirements: 23,420,000 62,058,000 89,740,000 169,165,600 48,586,000 2,638,000 1,876,000 397,483,600 2 Remove interfund budgets (2,638,000) (1,876,000) (4,614,000) 3 Remove Fluctuating CIP With Capacity (62,058,000) (169,165,600) (231,223,600) 4 Add Avg"Cash-funded"CIP W/o Capacity 9,877,061 32,550,843 42,427,904 6 Requirements for Rate Setting 23,420,000 9,877,061 89,740,000 32,550,843 48,586,000 0 0 204,173,004 7 Reduce for Interest Income (1,709,230) (5,632,939) (8,407,831) (15,750,000) 9 Net Requirements for Rate Setting 23,420,000 8,167,831 69,740,000 26,917,904 40,178,169 0 0 108,423,904 10 Allocation parameters: 04-05 Budget Validated CIP 03-04 Actual Validated CIP Combo VCIP 11 Flow 50% 90% 12% 35% 50% 12 BOD 10% 34% 33% 27% 13 SS 50% 54% 32% 23% Resultant Weighted 14 Allocation to parameters: Coll O&M Ccll CIP Joint O&M Joint CIP COPS Total Average% 15 Flow 11,710,000 7,351,048 10,768,800 9,421,266 20,089.085 59,340,199 31% 16 BOD 0 816,783 30,511,600 8,882,908 10,848,106 51,069,397 27% 17 SS 11,710,000 0 48,459,600 8.613,729 9,240,079 7a,024,308 41% 18 23,420,000 8,167,831 89,740,000 26,917,904 40,178,169 188,423,904 100% Proposed 19 Parameter Rates: Rates Would Raise 20 Flow Q 255 mgd,per MG 125.81 78.98 115.70 101.22 215.84 637.55 59,340,199 21 SOD @ 228 mg/L,per 1000 lb 0.00 4.62 172.40 50.19 61.29 288.50 51,059,397 22 SS Q 232.6 mg/L,per 1000 lb 64.86 0.00 268.39 47.71 61.18 1 432.14 78,024,308 23 188,423,904 H:\de;Mfln12101STREEMExcehold d ccpy\6TRATPLN\Permft user model 10-2004.xts-net 05.Oa 9/29/2004 Permit User Rate Calculation Model Estimated 2006-07 A B C 0 E F G H Ref Description Coll O&M Coll CIP Joint O&M Joint CIP COPS Equity Ad] SFI Total 1 Estimated Budget Requirements: 24,256,000 62,058,000 92,988,000 169,165,600 62,278,000 2,638,000 1,876,000 415,259,600 2 Remove interfund budgets (2,635,000) (1,876,000) (4,514,000) 3 Remove Fluctuating CIP With Capacity (62,058,000) (169,165,600) (231,223,600) 4 Add Avg"Cash-funded"CIP W/o Capacity 9,877,061 32,560,843 42,427,904 6 Requirements for Rate Setting 24,256,000 9,877,061 92,988,000 32,550,843 62,278,000 0 0 221,949,904 7 Reduce for Interest Income (1,384,597) (4,563,079) (8,730.324) (14,678,000) 9 Net Requirements for Rate Setting 24,256,000 8,492,464 92,988,000 27,987,764 53.547,676 0 0 207,271,904 10 Allocation parameters: 04-05 Budget Validated CIP 03-04 Actual Validated CIP Combo VCIP 11 Flow 50% 90% 12% 35% 50% 12 BOD 10% 34% 33% 27% 13 SS 50% 54% 32% 23% Resultant Weighted 14 Allocation to parameters: Cell O&M Cell CIP Joint O&M Joint CIP COPS Total Average% 15 Flow 12,128,000 7,643.217 11,158,560 9,795,718 26,773.838 67,499,333 33% 16 Boo 0 849,246 31,615,920 9,235,962 14,457,872 56,159,001 27% 17 SS 12,128.000 0 50,213,520 8,956,085 12,316,965 83,613,570 40% le 24,256,000 8,492,464 92,988,000 27,987,764 53,547,676 207,271.904 100% Proposed 19 Parameter Rates: Rates Would Raise 20 Flow @ 260 mgd,per MG 127.80 80.54 117.58 103.22 282.13 711.27 67,499,333 21 800 Q 228 mg/L,per 1000 lb 0.00 4.71 175.20 51.18 80.12 311.21 56,159,001 22 SS a 232.6 mg/L,per 1000 lb 65.88 0.00 272.76 48.65 66.90 454.19 03,613,570 23 207,271,904 HAdephffMV MOTREER1Excehold d capylSTRATPLWIRermit user model 10-2004.xls-net M07 9/29/2004 Permit User Rate Calculation Model Estimated 2007-08 A B C D E F 4 H Ref Description Coll 0&M Call CIP Joint O&M Joint CIP COPS Equity Adj SFI Total 1 Estimated Budget Requirements: 25,138,000 62,058,000 96,337,000 169,165,600 75,898.000 2,636,000 1,876,000 433,110,600 2 Remove interfund budgets (2,638,000) (1,876,000) (4,514,000) 3 Remove Fluctuating CIP With Capacity (62,058,000) (169,165,600) (231,223,600) 4 Add Avg"Cash-funded"CIP W/o Capacity 9,877.061 32,550,843 42,427.904 6 Requirements for Rate Setting 25,138,000 9,877,061 06.337,000 32,550.843 75.898,000 0 0 239,800,904 7 Reduce for Interest Income (1,282,485) (4,226,557) (9,854,958) (15,364,000) 9 Net Requirements for Rate Setting 25,138,000 8,594,576 96,337,000 28,324,286 66,043,042 0 0 224,436,904 10 Allocation parameters: 04-05 Budget Validated CIP 03-04 Actual Validated CIP Combo VCIP 11 Flow 50% 90% 12% 35% 50% 12 BOD 10% 34% 33% 27% 13 SS 50% 54% 32% 23% Resu Itent Weighted 14 Allocation to parameters: Coll O&M Coll CIP Joint O&M Joint CIP COPS Total Average% 15 Flow 12,569,000 7,735,119 11,560,440 9,913,500 33,021,621 74,799,580 33% 18 BOO 0 859,458 32,754,580 9,347,014 17,831,621 60,792,673 27% 17 SS 12,569,000 0 52,021,980 9,063,772 15,189,900 88,844,661 40% 18 25,138,000 8,594,576 96,337,000 28.324,286 66,043,042 224,436,904 100% Proposed 19 Parameter Rates: Rates Would Raise 20 Flow @ 265 mgd,per MO 129.95 79.97 119.52 102.49 341.40 773.32 74.799.580 21 BOD®228 mg/L,per 1000 lb 0.00 4.67 178.09 50.82 96.95 330.53 60,792,673 22 SS®232.6 mg/L,per 1000 lb 66.99 0.00 277.25 48.31 80.95 473.50 88,844,651 23 224,436,904 H:We;Mfln\210%STREEDExcel%old d copylSTRATPLN%Permft user model 10-2004.x1s-net 07-08 9/29/2004 Average "Cash-Funded" Validated Capital Improvement Program Determination of Amount to Include in Permit User Rates Total Refurbishment 17 Yr Average Validated Additional Replacement Cash Funded Total Plant and Collection System CIP Capacity Rehabilitation CIP Validated Capital Improvement Program 2,504,663,155 861,842,506 1,642,820,649 Additional Capacity Projects 861,842,506 861,842,506 0 Total Refurbishment, Replacement and Rehabilitation 1,642,820,649 0 1,642,820,649 Funded by COPS (1,405,000,000/2,504,663,155) = 56% 921,546,279 0 921,546,279 Funded by Fees and Revenues 44% 721,274,370 0 721,274.370 42,427,904 Total Refurbishment, Replacement and Rehabilitation 1,642,820,649 0 1,642,820,649 Treatment, Disposal & Reclamation Plant Validated Capital Improvement Program 1,930,018,000 669,639,990 1,260,378,010 Additional Capacity Projects 669,639,990 669,639,990 0 Total Refurbishment, Replacement and Rehabilitation 1,260,378,010 0 1,260,378,010 Funded by COPS (1,405,000,000/2,504,663,155)= 56% 707,013,676 0 707,013,676 Funded by Fees and Revenues 44% 553,364,334 0 553,364,334 32,550,843 Total Refurbishment, Replacement and Rehabilitation 1,260,378,010 0 1,260,378,010 Collection System Validated Capital Improvement Program 574,645,155 192,202,516 382,442,639 Additional Capacity Projects 192,202,516 192,202,516 0 Total Refurbishment, Replacement and Rehabilitation 382,442,639 0 382,442,639 Funded by COPS (1,405,000,00012,504,663,155) = 56% 214,532,604 0 214,532,604 Funded by Fees and Revenues 44% 167,910,035 0 167,910,035 9,877,061 Total Refurbishment, Replacement and Rehabilitation 382,442,639 0 382,442,639 H:Ideptlf[n12101STREED1Exoellold d copy\STRATPLNIVCIP by flow,bad,as 2003 FAHR.xIs VCIP Allocation 9/29/2004 Allocation of JO Costs to Flow, BOD and SS 2003-04 Actual Costs RAC Allocation Percentages Allocated Costs Percent Flow BOD SS Flow BOD SS Total of Total Preliminary Treatment 4,926,287 75% 5% 20% 3,694,715 246,314 985,257 4,926,287 6% Primary Treatment 7,856,330 15% 25% 60% 1,178,450 1,964,083 4,713,798 7,856,330 10% Secondary Treatment 5,364,031 100% - 5,364,031 - 5,364,031 7% Cryogenic Plant 580,117 100% - 580,117 - 580,117 1% Effluent Disposal 812,104 100% 812,104 - - 812,104 1% Solids Handling 28,398,473 20% 80% - 5,679,695 22,718,778 28,398,473 35% Subtotal 5,685,269 13,834,239 28,417,834 47,937,342 59% Cogeneration 8,358,287 13% 40% 47% 1,086,577 3,343,315 3,928,395 8,358,287 10% Utilities 9,643,305 13% 40% 47% 1,253,630 3,857,322 4,532,353 9,643,305 12% Electrical Distribution 1,118,848 13% 40% 47% 145,450 447,539 525,859 1,118,848 1% Miscellaneous Bldgs 4,770,650 13% 40% 47% 620,185 1,908,260 2,242,206 4,770,650 6% Air Quality 1.597,905 13% 40% 47% 207,728 639,162 751,015 1,597,905 2% Laboratory 7,155,674 13% 40% 47% 930,238 2,862,270 3,363,167 7,155,674 9% Total 80,582,011 9,929,076 26,892,107 43,760,828 80,582,011 100% Calcusted Actual Ratios for 2003-04 Direct Charges(Subtotal) 12% 29% 59% 100% Total Charges 12% 34% 54% 100% H:ldeptlfln12101STREED1ExosINPermit UserslPermit User JO Mocatlon 2008-04.)ds 9/29/2004 Validated Capital Improvement Program Page 1 of 5 Allocation to Flow,BOD and SS Less Capacity Projects A B C 0 E F G H I New Capacity Total Allocated Total Allotted Total Allocated Total Allocated Project 7rda Flow BOD TSS Total thru 2020 Percentage of Non Cepedly CIP Non Capacity CIP Non Capacity CIP Non Cepadly CIP Cast Flew BOD SS Total Allocated 1-17 Santa Ana Trunk Sewer Rehab 90% 10% 14,638,000 13,174,200 1,463,600 0 14,638,000 1-22 Lower Main-Broadway MH Rehabilitation 90% 10% 1,467,000 1,320,300 146,700 0 1,467,000 1-86 Contlnuous Feed Chemical Treatment Facility 90% 10% 461,000 405,000 45,100 0 451,000 1-98 Trunk Sewer Mapping Prefect 90% 10% 2,013,000 1,611,700 201,300 0 2,013,000 1-100 Greenville Sullivan/Rakt Street Manhele Rehab 90% 10% 3,269,000 2,942,100 326,900 0 3.269,000 2-24-1 Carbon Cnyn Sewer and Pump Stn Abandonment 90% 10% 3,467,000 50% 1,560,150 173,350 0 1,733,600 2-31 Santa Ana River Interceptor Relief Sewer 90% 10% 17,272,000 76% 3,886,200 431,800 0 4,318,000 2-41 Santa Ana River Interceptor Realignment and Prot 90% 10% 63,620,000 57,268,000 6,362,000 0 63,620,000 2-41-1 Abandonment eflhe existing SARI In SA River 90% 10% 8,456,000 7,610,400 845,600 0 8,456,000 2-42 Abend.of Ycrba Linda Pump Station 90% 10% 955,000 $59,600 95,500 0 955,000 2-49 Taft Stanch Improvements 90% 10% 3,608,000 50% 1,578,600 175,400 0 1,754,000 2-50 Atwood Subtrunk improvements 90% 10% 3,187,000 50% 1,434,150 159,350 0 1,693,600 2-61 Lower Santa Ana River Intercepter Improvements 90% 10% 35,012,000 75% 7,877,700 875,300 0 8.753,000 2-62 Euclid Relief Improvements-Reach"A" 90% 10% 20,856,000 50% 9,385,200 1,042,800 0 10,428,000 2.53 Euclid Relief Improvements-Reach"B" 90% 10% 10,298,155 75% 2,317.085 257,454 0 2,574,539 2-66 Santa Ana River Relief Sewer,Reach B 90% 10% 32,702,000 100% 0 0 0 0 2-65 Newhope-Plaeentle 8 Cypress Trunk Replacements 90% 10% 28,785,000 75% 6,476,625 719,625 0 7,196,250 2-66 Upper B Lower Newhope-PleoentleMHReheb(lWlon 90% 10% 4,351,000 3,915,900 435,100 0 4,351,000 2-67 SARI and South Anaheim Interceptor MH Rehab 90% 10% 3,087,000 2,778,300 308,700 0 3,087,000 2-68 Rehabilitate District Siphons By Adding Ali Jumper 90% 10% 6,731,000 5,167,900 673,100 0 5,731,000 3.36-R2 Rehabilitation of Ma9nolle Trunk Sewer 90% 10% 48,868,000 43,981,200 4,866,600 0 48,868,000 3-45 Trask Branch ofthe Hoover-Western Subtrunk 90% 10% 1,410,000 75% 317,250 35,250 0 362,600 3-62 Rehabilitation of the WeaWde Pump Station 90% 10% 2,991,000 2,691.900 299,100 0 2,991,000 3-65 Westelde Relief Interceptor/Los Alamitos MH Rehab 90% 10% 17,136,000 75% 3,855,600 428,400 0 4,284,000 3-66 Rehabilitation ofthe Sesi Beach and Edinger PS 90% 10% 8,574,000 7,716,600 867,400 0 8,574,000 6-29-R1 Lining of W'NPTB FM(Juno Bat to end Angie Pt) 90% 10% 1,996,000 1,796.400 199,600 0 1,996,000 5-46 Replacement of Back Bay Trunk Sewer 90% 10% 7,189,000 6,470,100 718,900 0 7,189,000 6-47 Balboa Trunk Sewer Rehsbh tdcn 90% 10% 5,759,000 5,183,100 575,900 0 5,759,000 6-49 Replacement of the Bitter Point Pump Station 90% 10% 8,159,000 10% 6,608,790 734,310 0 7,343,100 6-60 Replacement of the Rocky Point Pump Station 90% 10% 9,362,000 10% 7,583,220 842,580 0 8.425,800 6-61 Rehabilitation of the 14th Street Pump Station 90% 10% 4,617,000 4,155,300 461,700 0 4,617,000 6-52 Rehabilitation of the"A"SU tPumpStation 90% 10% 5,013,000 4,511,700 501,300 0 6,013,000 6-63 Rehabilitation cfthe Bay Bridge Pump Station 90% 10% 2,612,000 10% 2,115,720 235,080 0 2,350,800 6.64 Rehabilitation ofthe Crystal Cove Pump Station 90% 10% 1,512,000 1,360,800 151,200 0 1,512,000 "a PCH FM Bitter Pt Pa To Coast Trunk 418 hurst a PCH 90% 10% 13,927,000 12,534,300 1,392,700 0 13,927,000 6-69 Big Canyon Trunk Sewer Rehab 8 Replacement 90% 10% 2,534,000 2,260,600 253,400 0 2,534,000 6-13 Abend of AS Trunk,Watson and Col.Sewers 90% 10% 351,000 315,900 36,100 0 351,000 6-13.3 Abandonment of Alrbase Trunk Sewer-California St 90% 10% 975,000 877,600 97,500 0 975,000 6-16 Abandonment of Alrbase Trunk(Watson St)8 Co:lege 90% 10% 3,276,000 2,948,400 327,600 0 3,276,000 7-7-2 Modi icaticns to the Main Street Pump Station 90% 10% 9691000 872,100 981800 0 969,000 7-14-4 Covey Lane Pump Station Abandonment 90% 10% 153,000 137,700 15,300 0 153,000 7-21 Sunflower Interceptor Manhole Rehab 90% 10% 3,991,000 3,591,900 399,100 0 3,991,000 7-32-1 Gisler Red Hill Trunk Sewer Relocation-Phase 1 90% 10% 936.000 $42,400 93,600 0 936,000 7-37 Glaler-Redhlli System Improvements,Reach 8 90% 10% 6,893,000 50% 3,101,850 344,850 0 3,446,500 7-47 Replacement of the College Ave.Pump Sidon 90% 10% 6,021,000 30% 3,793,230 421,470 0 4,214,700 7-49 Rehabilitation cf the MacArthur Pump Station 90% 10% 2,355,000 10% 1,907,550 211,950 0 2.119,500 H:ldeptltint21t118TREED1Exceilold d ccpylSTRATPLNIVCIP by flaw,bod,se 21203 FAHR.xI9 VCIP lea capacity 9/29/2004 Validated Capital Improvement Program Page 2 of 5 Allocation to Flow,BOD and SS Less Capadty Projects A B C D E F 0 H I New Capacity Total Allocated Total Allocated Total Allocated Total Alocated project Title Flow 800 TSS Total thru 21320 PeroWtege of Non Capeofty CIP Non Cape"CIP Non Capacity CIP Non Capacity CIP Cost Flaw SOD SS Total Allocated 7-66 Tustin WestiLemon Heights Trunk Improvements 90% 10% 5,926,000 50% 2,666,700 296,300 0 2,963,000 7-57 Lower 01slar-Redhlll Trunk Relocation and MH Rehab 90% 10% 6,615,000 26% 4.466,125 496,126 0 4,961.250 7-68 Gleler Radhill Trunk Impray.6 orange Trunk Improv 90% 10% 23,561,000 50% 10,602,450 1,178,050 0 11,780,500 7.69 Upper 13lsler-RedhlllNH Rehabilitation 9CempueOr 90% 10% 2,121,000 1,908,900 212,100 0 2,121,000 11-14-R Newland Street Interceptor Sewer Protection 90% 10% 127,000 114,300 12,700 0 127,000 11-22 Warner Avenue Relief Sewer 90% 10% 7,480,000 75% 11683,000 187,000 0 1,870,000 11-26 EdingerlSClasChlce Trunk lmprovemente 90% 10% 2,128,000 76% 478.350 63,150 0 531,500 11-26 Coast Trunk Sewer Rehabilitation 90% 10% 16,635,000 14,971,5C0 1,663,500 0 16,635,000 FE-Collect Facilities Engineering Projects-Collections 90% 10% 5,400,000 4,660,000 540,000 0 5,400,000 1.2-4 Bushard Trunk Sewer Rehabilitation 90% 10% 39,393,000 35,463,700 3,939,300 0 39,393,000 1-10 Replacement of the Ellie Ave Pump Stn 00% 10% 33,837,000 90% 3,046,330 336,370 0 3,383,7C0 SP-95 Pump Station P81Ds and Equipment Tagging 90% 10°% 720,000 648,000 72,000 0 720,000 Collections Facilities Total 574,645,155 322,984,025 35,687,114 0 358,871,139 Weighted Average Allocation 90% 10% 0% P1-62 Sunflower Drive Replacement 75% 5% 20% 815,000 611,250 40,750 163,000 815,000 P1-71 HeadwerksRehobfIRAMcn/RetLrMshment 75% 5% 20% 37,510,000 28,132,500 1,876,500 7,502,000 37,510,000 P2-66 Headwaft Improvements at Plant No 2 75% 5% 20% 226,130,000 169,597,500 11,306,500 46,226,000 226,130,000 J-83 PLC Programming and Integration 75% 5% 20% 515,000 386,250 26,750 103,000 515,000 Headworks Total 264,970,000 198,727,500 13,248,500 52,994,000 264,970,000 P1-37 PH Clarifers 16-31 8 Related Facilities 30% 70% 86,561,000 100% 0 0 0 0 P2-80 Primary Treatment RehaWRefurb 30% 70% 55,093,000 0 16,527,900 38,666,100 55,093,000 SP-70 Sludge Density Meter Upgrades 30% 70% 800,000 0 240,000 560,000 800,000 122-66 Circular Clarifier Drive RepleoementfUpgrade 30% 70% 3,467,000 0 1,040,100 2,426,900 3,467,000 Primary Treatment Total 147,921,000 0 17,808,000 41,552,000 59,360,000 P2-74 Secondary Plant Rehabilitation 93% 7% 20,474,000 0 19,11 7,063 1,436,937 20,474,C00 p2.47-3 Sec Treat Monftcrtng 8 Crdrl Sya Upgrade 93% 7% 8,703,000 0 8,092,193 610,807 8,703,000 P1-76 Tricking Filter Rehabilitation and New Clarifiers 93% 7% 46,210,000 33% 0 28,787,770 2,172,930 30,960,700 P1-82 Activated Sludge Plant Rehabilitation 93% 7% 23,870,000 26% 0 16,646,040 1,256,460 17,902,500 SP-72 Oxygen Perri Repacement/RehabElita@on Assessment 93% 7% 2,145,000 0 1,994,466 160,544 2,145,000 SP-74 Activated Sludge Aeration Basin Selector Study 93% 7% 945,000 0 878,677 66,323 945,000 SP-91 Computer Modeling of Activated Sludge System 93% 7% 120,000 0 111,678 8,422 120,C00 Pt-102 New secondary treatment"am at Plant No.1 93% 7% 261.100.000 60% 0 93.390,771 7,049.229 100,440,000 P2-90 New Tricking Filters 93% 7% 128,727,000 60% 0 47,876,996 3,613,804 51,490,800 Secondary Treatment Total 482,294,000 0 216,815,644 16,365,455 233,181,000 SP-36 Sludge Grinder Replacement 20% 80% 224,000 0 44,800 179,200 224,000 P2-60 Solids Storage and Trunk Loading Facility 46% 55% 14,582,000 20% 0 6,249,620 6,416,080 11,665,600 SP-30-2 High Rate Digester Mix Pumps Mach,Seale 25% 75% 517,000 0 129,250 387,760 617,000 SP-79 Tula Rench Mafntensnce/Blosolids Management Needs 45% 55% 200,000 0 90,000 110,000 200,CC0 Pt-99 Digesters,Centrtfuge/Press 8 Cake Storage Hopper 25% 75% 61,605,000 80% 0 3,080,260 9,240,760 12,321,000 P2-89 Digesters and Sludge Cake Hoppers at Plant 2 25% 75% 42,325,000 60% 0 2,116,250 6,348,750 8,465,CC0 122-92 Sludge Dewatering and Odor control at Plant 2 20% 80% 79,082,000 0 15,816,400 63,265,600 79,082,000 P2-91 Digester RehebottatlanatP%rt2 25% 75% 25,621,000 0 6,405,260 19,216,750 25,621,000 P1-100 Sludge Digester Rehabllftatlon at Plant 1 26% 76% 30,223,000 0 7,655,760 22,667,260 30,223,000 121-101 Sludge Dewatering and Odor central at Plant 1 20% 80% 62,905,000 0 12,681,000 50,324,000 62,905,000 131-96 Ammonia Side Stream Treatment 100% 18,600,000 100% 0 0 0 0 H:1depllftnt2101STREED''Excdlcid d oopylSTRATPLNWCIP by flow,bad,as 2003 FAHR.k19 VCIP lass capacity 9/29/2004 Validated Capital Improvement Program Page 3 of 5 Allocation to Flow,BOD and SS Leas Capacity Projects A B C D E F p H I New Capacity Total Allocated Total Aft" Total Allocated Total Mac" Project TWO Flaw SOD TSS TOW thru 2020 Percentege of Non Cepecity CIP Non Capacity CIP Non Cepedty CIP Non Capactly CIP Celt Flaw BOD 55 ToW Alec" Solids Handling&Digeation Total 335,884,000 0 53,068,470 178,155,130 231,223,600 HIdeptTn121 t11STREEMExoMold d Oopy15TRATPLNWCIP by flaw,bad,as 20M FAHR xls MIR less Oepedty 9/29/2004 Validated Capital Improvement Program Page 4 of 5 Allocation to Flaw,BOD and SS Less Capacity Projects A 8 C 0 E F G H I New Capacity Total Allocated Total Allocated Total Allocated Total Allacated Project Title now BOD TSS Total thru 2020 Percentage of Non Capacity CIP Non CspadV CIP Non Capacity CIP Non Cap"CIP Coat Flaw BOD SS Total Allocated J-77 Effluent Pumping Station Annex 100% 50,757,000 50% 25.378,500 0 0 25,378,500 J-67 Peak Raw Management 100% 11,257.000 100% 0 0 0 0 SP-88 NPOES Permit Renewal 100% 1,512,000 1,512,000 0 0 1,512,000 J-87 Short Term Outsell Bacteria Reduction 100% 7,578,000 7,578,000 0 0 7,578,000 Ocean Outfall Systems Total 71,104,000 34,468,600 0 0 34,468,500 JA7 Cable Trey Improvements at Plants 1&2 29,526,000 0 0 0 0 P2-79 Gas Compressor Addition at Plant No 2 4,326,000 0 0 0 0 J-2" Elec Power System Single-line Diagrams 3,368,000 0 0 0 0 J-33-IA Standby Power and Reliability Modification 17,643,000 0 0 0 0 P2-82 UtllfUes Rehabilitation and Refurbishment 4,929,000 0 0 0 0 J-79 Central Generation Automation 8,038,000 0 0 0 0 SP-81 Electrical Equipment Refurbishment and Protection 3,312,000 0 0 0 0 SP-93 Indoor/Outdoor Lighting Study 132,000 0 0 0 0 P1-97 Plant 1 66kV Substation 4,645,000 50% 0 0 0 0 SP-92 Rehabilitation of Low Pressure Gas Holder 422,000 0 0 0 0 P2-87 Fuel Station Replacement at Plant No 2 3,231,000 0 0 0 0 SP-94 Plant 1 Plant Water VFD Replacement 2,334,000 0 0 0 0 J-92 Area Clessiffcaticn Studies Implementation Plan 21,283,000 50% 0 0 0 0 Utility Systems Total 103,189,000 0 0 0 0 J-71-3 Facilities ModlAcations for Odor Control 4,127,000 0 0 0 0 J-71-8 Rehabilitation of Odor Control Fsdllties 33,224,000 0 0 0 0 Odor Control Related Projects Total 37,351,000 0 0 0 0 J-42 Plant Reinvention f Automation Project 21,915,000 0 0 0 0 SP-01 Document Management 864,000 0 0 0 0 SP-02 Data ttegrattan 4,334,000 0 0 0 0 SP-13 Source Control Programming 2.956,000 0 0 0 0 SP-03 Strategic Information Architecture(SIA) 724,000 0 0 0 0 SP-15 Geographic lnformation System 4,157,000 0 0 0 0 J-33-3 Power Monitoring and Control Systems 3,790,000 0 0 0 0 SP-09 Internetllntranet Development 650,000 0 0 0 0 SP-61 SCADA System Replacement Study 300,000 25% 0 0 0 0 SP-62 SCADA Graphics Tagging Update 425,000 0 0 0 0 SP-64 FIS Upgrade 3,213,000 0 0 0 0 SP-65 Information Technology Disaster Recovery 332,000 0 0 0 0 SP-89 Network Equipment upgrade 2,901,000 0 0 0 0 SP-100 CMMS System Replacement 3,789,000 25% 0 0 0 0 Plant Automation d Computerization Total 50,350,000 0 0 0 0 SP-63 Plant O&M Manuel&SOP Project-Phase I 4,000,000 0 0 0 0 SP-64 Hazardous Energy Control Procedures 1,190,000 0 0 0 0 J-44-R Standard SpedRoiticne Revisions and Updates 657,000 0 0 0 0 SP-68-1 Corrosion Management 7,548,000 0 0 0 0 SP-1 Special Projects:Ammonia Reduction Options 277,000 100% 0 0 0 0 SP-90-1 Special Projects:Anoxlc Gas Flotation(AGF) 798,000 0 0 0 0 SP-90-7 Spacial Projects:Bictrlcktng Filter(BTF) 328,000 0 0 0 0 SP-SO-2 Special Projects:Anaerobic Beffled Reactor(ABR) 514,000 0 0 0 0 SP-90-6 Special Projects Dewatering Options Comparison 99,000 0 0 0 0 H:>deptlfln\21 ONSTREEMExcenold 4 copyMRATPLNIVCIP by Row,bod,as 2003 FAHR xle VCIP less capacity 9/29/2004 Validated Capital Improvement Program Page 5 of 5 Allocation to Flow,BCD and SS Less Capacity Projects A B C D E F Q H I New Capacity Total Allocated Total Allocated Total Allocated Total Allocated Project Title now BOO TSS Total thru 2020 Percentage of Non Capacity CIP Nan Capacity CIP Non Capacity CIP Non Capacity CIP Cost Flaw BOO as Total Allocated SP-90-5 Special Projects:Mlerditratlen/Prlmary Effluent 4,095,000 50% 0 0 0 0 SP-90-4 Special Projedn Oxygen Ionization I Odcr Contrci 210,000 0 0 0 0 SP-90.3 Special Projects:Primary Effluent Filtration 470,000 0 0 0 0 J-94 Effluent Pathogen Reduction Alternatives Plan 1,549,000 0 0 0 0 Process Related Special Projects Total 21,735,000 0 0 0 0 J-62 Mcc(McaBons to Existing Mach Systems 3,007,000 0 0 0 0 FE-J Facilities Engineering Projects-Joint 18,200,000 0 0 0 0 FE-132 Facilities Engineering Projects-Plant 2 18,200,000 0 0 0 0 FE-P1 Facilities Engineering Projects-Plant 1 18,200,000 0 0 0 0 J-69 Building RehabllRatlon/Refurblahment 1,455,000 0 0 0 0 SP-34 Smell Cap Equip Replacement Project 3,000,000 0 0 0 0 SP-06 Security System Improvements 1,100,000 0 0 0 0 SP-68-2 Asset Management Program 16,555,000 0 0 0 0 SP-T7 Warehouse Relnventlon Project 600,000 0 0 0 0 J-25-6 interim Fac Retard 8 Eng Data Syst Malnt Services 628,000 0 0 0 0 SP-85 Plume Modeling 377,000 0 0 0 0 J40.6 Supplement No 1 to the 1999 Strategic Plan EIR 832.000 0 0 0 0 J-40-7 Long Range Blosollds Management Plan 2,833,000 0 0 0 0 J-40-9 Strategic Plan Update 3,419,000 25% 0 0 0 0 1-84 Space Aliecatlon and interior Renovation 16,388,000 0 0 0 0 J-88 Laboratory Rehabtlttdon 1,829,000 0 0 0 0 J-89 Tenant Improvements to Rebuild Shop 321,000 0 0 0 0 J-40-10 Supplemental Full Secondary Treatment CEQA Doc 425,000 15% 0 0 0 0 J-90 Engineering Trailer Complex 2,006,000 0 0 0 0 P1-103 Support Building Power System ModiflcaUcne 2,751,000 0 0 0 0 SP-98 Plant 2 Maintenance Building ModhIcadons 300,000 0 0 0 0 Mlacellaneoua&Support Projects Total 112,426,000 0 0 0 0 J-36 t3roundwater Replenishment System 100% 236,206,000 64% 85,034,160 0 0 85,034,160 J-72 Water Canservatlen 100% 4,644,000 100% 0 0 0 0 J-73 C"p Projects,intlownnfllt Reduction 0 100% 0 0 0 0 J-73-2 Long Term Permanent Menftoring Program 100% 2,852,000 100% 0 0 0 0 Water Management Projects Total 243,702,000 85,034,160 0 0 85,034,160 Districts Cepftal Equipment Budget 59,092,000 25% 0 0 0 0 Diatricta Capital Equipment Budget 59,092,000 0 0 0 0 Treatment d,Disposal Total 1,930,018,000 318,230,160 300,940,514 289,066,586 908,237,260 Weighted Average Allocation 36% 33% 32% Combined Total CIP 2,504,663,155 641,214,185 336,827,628 289.066,686 1,267,108,399 Combined Weighted Average Allocation For COPS 60% 27% 23% H:ldept\@nt21MSTREEI 1Exoellold d ccpylSTRATPLN%VCIP by flow,bod,se 2CO3 FAHR xis VCIP leas oapsdty ORDINANCE NO. OCSD-24 ADOPTING REVISED TABLE G RE PERMITTEE CHARGES FOR USE AND REAFFIRMING ALL OTHER CHARGES AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING SANITARY SEWER SERVICE CHARGES; ESTABLISHING CAPITAL FACILITIES CAPACITY CHARGES; ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL CHARGES, SOURCE CONTROL PERMITTEES AND WASTEHAULERS; AND REPEALING ORDINANCE NO. OCSD-22. WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-22, establishing annual Sanitary Sewer Service Charges for all uses, establishing Capital Facilities Capacity Charges to be imposed when properties either newly-connect to the District's system, or expand the use of the property previously connected to the District; establishing miscellaneous industrial discharger fees, source control/non-compliance sampling fees, and wastehauler charges, which Ordinance is presently in full force and effect; and WHEREAS, for purposes of improved efficiency and effectiveness of the District's operations, it is the intent, by the adoption of this Ordinance, to re-enact the existing Ordinance that establishes sanitary sewer service charges and capital facilities fees, and to provide for increases in certain miscellaneous charges and fees. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Fees and Charges Ordinance —Adopted TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS Section 1.01, Findings — Declaration of Intent ARTICLE II: SANITARY SEWER SERVICE CHARGES Section 2.01, Purpose and Scope Section 2.02, Annual Sanitary Sewer Service Charge WS&S-TLW:pj:188361,v-3:11/02//04 1 Section 2.03 A. Exemptions B. Application for Rebate C. Application for Refund D. Limitation Period E. Determination F. Administrative Fee Section 2.04, Annual Charge Based on Fiscal Year Section 2.05, Method of Collection Section 2.06, Credit for Industrial Permittees Table A Annual Sewer Service Charges for Residential Users Table B Annual Sewer Service Charges Property Use Classifications for Commercial or Industrial Users ARTICLE III: CAPITAL FACILITIES CAPACITY CHARGES Section 3.01, Purpose and Scope Section 3.02, Definitions Section 3.03, Connection Permits: Required Section 3.04, Capital Facilities Capacity Charge: Payment Section 3.05, Capital Facilities Capacity Charge: Time of Payment Section 3.06, Capital Facilities Capacity Charge: Schedule of Amounts Section 3.07, Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users — Special Purpose Dischargers — Definitions Section 3.08, Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users Section 3.09, Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers Section 3.10, Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users — Special Purpose Dischargers Table C Supplemental Capital Facilities Capacity Charges Section 3.11, Capital Facilities Capacity Charge: Replacement Section 3.12, Capital Facilities Capacity Charge: Remodeled Section 3.13, Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements WS&S-TLW:pj:188361,v-3:11/02//04 2 Section 3.14, No Refund or Transfer Section 3.15, Baseline Transferability Table D Capital Facilities Capacity Charges ARTICLE IV: MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 4.01, Purpose and Scope Section 4.02, Administrative Fees and Charges Relating to Permittees Section 4.03, Industrial Discharger, Source Control, and Non-Compliance Sampling Fees Section 4.04, Special Purpose Discharge Permittees; Charges for Use Section 4.05, Class I and Class II Permittees — Charges for Use Section 4.06, Wastehauler Charges for Use Section 4.07, Administrative Appeals Table E Administrative Fees and Charges Relating To Permittees Table F Industrial Discharger, Source Control and Non-Compliance Sampling Fees Table G Class I and Class II Permittees and Special Purpose Discharge Permittees Charges For Use Table H Wastehauler Charges for Use ARTICLE V: MISCELLANEOUS Section 5.01, Application of Ordinance Section 5.02, Exceptions Section 5.03, Severability Section 5.04, Effective Date Section 5.05, Repeal Section 5.06, Certification and Publication ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings — Declaration of Intent. The Board of Directors of District has previously adopted Master Plans, as more particularly described in Findings B, C, D, and E below, setting forth the financial and engineering needs of the District, and hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. WS&S-TLW:pj:188361,v-3:11/02//04 3 A. That the former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 et seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998. As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District, came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts. B. That a comprehensive 30-year Master Plan of Capital Facilities, entitled "Collection, Treatment and Disposal Facilities Master Plan — 1989", hereinafter referred to as the "Master Plan", which includes detailed financial and engineering reports, was prepared, approved, and adopted by the Boards of Directors of the Predecessor Districts in 1989, setting forth and identifying the required future development of District Facilities, including the financial projections for providing sewer service to all properties within the individual service areas of each of the nine Predecessor Districts. C. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of the California Constitution and Government Code Section 66016, and other provisions of law. D. That the District, in 1997, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive Master Plan of Capital Facilities, which was approved and adopted by OCSD Resolution No. 99-21 of the Board of Directors on October 27, 1999. E. That in support of this Ordinance and the revised charges for sewer service and/or Capital Facilities Capacity Charges as provided for on Tables A, C, D and G herein, the Board of Directors finds that the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the WS&S-TLW:pj:188361,v-3:11/02//04 4 Secondary Treatment Peer Review, as approved by the Board of Directors, has resulted in the development of a Capital Improvement Program that provides for the implementation of secondary treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities. The Board further finds that programming annual adjustments in sewer service charges over a period of years is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. The Board of Directors also finds that such Sanitary Sewer Service Charges and Capital Facilities Capacity Charges are reasonably related to, and do not exceed the cost of providing sewer services. F. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Strategic Plan and the CIP validation studies, are based on current, reliable information and data relating to population projections, wastewater flow, and capital facilities' needs, and are expected to be realized in each year as described in the reports. G. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District; to repay principal and interest on debt instruments; to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves; and to assist in the payment of costs to the District to provide all regulatory administration and laboratory services related to the industrial dischargers, source control permittees, and wastehauler users of the District's systems. H. That the owners or occupants of properties upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. I. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. J. That the Sanitary Sewer Service Charges established and levied by this Ordinance are to allow the District to recover the reasonable costs WS&S-TLW:pj:188361,v-3:11/02/104 5 to provide a service to individual properties which have been improved for any of numerous types of uses. The basis for the respective charge is the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service based upon actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. K. That the Sanitary Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the estimated reasonable cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article MID. L. That the Sanitary Sewer Service Charges adopted herein will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The adoption of these Sanitary Sewer Service Charges will not result in any specific project, nor result in a direct physical change in the environment. M. That the Sanitary Sewer Service Charges adopted herein are established upon a rational basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. N. That the Board of Directors has previously, by duly adopted Ordinances, commencing in 1969, and most recently by Ordinance No. OCSD- 22, established Capital Facilities Capacity Charges, formerly known commonly as "connection charges" or "fees", to be paid by all persons obtaining a permit to connect to the District's system. Said Charges are required as a financial payment to have access to and use of the District's wastewater collection, treatment and disposal facilities in existence at the time of connecting to the system, and for future facilities to be constructed. O. That the Sanitary Sewer Service Charges and Capital Facilities Capacity Charges established here, are an incident but not a condition of development, payable only on request to receive service by the property owner for the benefit of those persons on the property that use the service. The charges are not an incident of property ownership, nor are they a property- related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. P. That the District's previous and present Capital Facilities Capacity Charges Ordinances, include[d] authority for the District to levy an WS&S-TLW:pj:188361,v-3:11/02//04 6 excess or supplemental capacity charge upon commercial and industrial users who discharge quantities or high strength wastewater greater than the established base line of authorized discharge. Q. That the Capital Facilities Capacity Charges re-enacted by this Ordinance are non-discriminatory, as applied to all users of the system, and are established upon a rational basis between the fees charged each category of property that is connecting, and the service and facilities provided to each connected property or structure, by the District, within a given category. R. That the miscellaneous charges and fees re-enacted by this Ordinance without change are established upon a rational basis between the fees charged to each industrial discharger, source control permittee, or wastehauler and the service and facilities provided to each. S. That the District is required by federal and state law, including the Federal Water Pollution Control Act, also known as the Federal Clean Water Act (33 U.S.C. 1251, et seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (California Water Code Sections 13000 et seq.) to implement and enforce a program for the regulation of wastewater discharges to the District's sewers. T. That the District is required by federal, state and local law, to meet applicable standards of treatment plant effluent quality. U. That pursuant to these requirements, the Board of Directors has adopted Ordinance No. OCSD-01, as amended, Establishing Wastewater Discharge Regulations. V. That the District incurs additional costs in conducting non- compliance sampling of those industrial wastewater dischargers who violate the District's Wastewater Discharge Regulations and in administering the industrial, wastehauler, and special discharge permit programs. W. That Ordinance No OCSD-01, as amended, Establishing Wastewater Discharge Regulations, provides that the Board of Directors is to establish various fees and charges to recover those costs to the District which are made necessary by industrial dischargers and wastehaulers who violate the District's Wastewater Discharge Regulations. X. That the industrial discharger, source control, and wastehauler fees and charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the District of industrial discharger, source control, or wastehauler use of the District's facilities and for the administration and implementation of permit and fee processing, non-compliance WS&S-TLW:pj:188361,v-3:11/02//04 7 sampling, and related services associated with the District's Source Control Program. Y. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. Z. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). AA. That each of the Findings set forth in previous Ordinances Nos. OCSD-05, OCSD-06, OCSD-11, OCSD-13, OCSD-15, OCSD-18, OCSD-19, OCSD-20, and OCSD-22 are reaffirmed and readopted hereat, except to the extent that they have been specifically superseded or otherwise amended by specific Findings herein. ARTICLE II SANITARY SEWER SERVICE CHARGES Section 2.01. Purpose and Scope. The purpose of this Ordinance is to establish Sanitary Sewer Service Charges required to be paid by property owners for the services and facilities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for the acquisition, construction, reconstruction, maintenance, and operation of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2.02. Annual Sanitary Sewer Service Charge. Commencing with the effective date of this Ordinance, the owner of each parcel of real property located within the District which is improved with structures designed for residential, commercial, or industrial use and which, at the request of the owner or the owner's predecessor-in-interest, is connected to the District's system, shall pay an annual Sanitary Sewer Service Charge based on the respective class of users, in the sum or sums, as set forth in Tables A and B of this Ordinance, below. The annual Sanitary Sewer Service Charges for residential users are set forth in Table A. The annual Sanitary Sewer Service Charges for commercial or industrial users are dependent upon the respective classifications of property use, determined by reference to Table B; the applicable percentage figure shown on Table B with respect to the particular use classification is multiplied by the applicable single family residential rate shown in WS&S-TLW:pj:188361,v-3:11/02//04 8 Table A, to arrive at the annual Sanitary Sewer Service Charge rate per 1,000 square feet for the commercial or industrial user. Section 2.03. A. Exemptions. It is the intent of the District that the legal owner(s) of parcels of real property, otherwise subject to the levy and payment of the Sanitary Sewer Service Charges, as prescribed herein, be relieved, in whole or in part, from the payment of said charges, in certain circumstances and under conditions prescribed herein, and be entitled to either a rebate or a refund with respect to charges paid, as more specifically set forth in Subparagraphs 2.03E and 2.03C below, provided an inequity is established or a billing error is proven, as specified in Subparagraphs B or C. B. Application for Rebate. Any property owner may apply to the District for a rebate of Sanitary Sewer Service Charges paid to the District by establishing that an unfair valuation of the property has been made by the District. An applicant for a rebate must establish, by proof satisfactory to the General Manager of the District, or his designee, that an inequity exists between the amount of the charge paid and the amount of wastewater discharged to the District's system, resulting in an unfair valuation. Satisfactory proof shall establish that either: (1) The principal water use is agricultural or horticultural; or (2) The property is devoted to any other use wherein the amount of wastewater discharged to the District's system is significantly less on a regular basis than the amount that would normally be expected to be discharged by the class of property in question. Satisfactory proof shall include, but not be limited to, documentation showing actual water usage for each billing cycle during the entire period for which the rebate is sought. The amount of any rebate shall not reduce the charge payable by any property owner, whose property is connected to the District's system, to less than the single family residential charge shown on the applicable Table attached hereto. C. Application for Refund. Any property owner may apply to the District for a refund of Sanitary Sewer Service Charges paid to the District by establishing that the amount paid was pursuant to an error in the amount billed or the amount paid. The applicant for a refund must submit proof satisfactory to the General Manager of the District, or his designee, that a billing error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: WS&S-TLW:pj:188361,v-3:11/02//04 9 (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper land use category; or (3) A clerical error has been made. D. Limitations Period. Applications for rebates and refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097, allowing for refunds for a period of four (4) years from the date of payment of the second installment of the bill claimed to be either inequitable or incorrect. E. Determination. All applications for rebates or refunds of the Sanitary Sewer Service Charge will be determined by the General Manager of the District, or his designee, who, based on the submitted proof, may grant a full or partial rebate or refund. F. Administrative Fee. At the time of filing the application for rebate or refund, the property owner shall pay District an administrative fee for the processing of such application. The amount of the fee shall be equal to the total of all fees and charges imposed on the District by any other public entity, such as the Orange County Tax Collector, the Orange County Auditor, or the Orange County Recorder, in connection with the rebate or refund. Section 2.04. Annual Charge Based on Fiscal Year. The Sanitary Sewer Service Charges established by this Ordinance shall be effective as of July 1 of each year, as set forth in Tables A and B, attached hereto, for the District's fiscal year, and shall remain in effect until such time as the rates adopted herein are changed by District Ordinance. There shall be no proration of such charges in any fiscal year. Section 2.05. Method of Collection. A. Pursuant to the authority granted by California Health & Safety Code Section 5473, and except as otherwise provided in Subparagraph 2.05B below, all sanitary sewer service charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and the District. B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner has WSBS-TLW:pj:188361,v-3:11/02//04 10 underpaid annual Sanitary Sewer Service Charges payable to District, District, within four (4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll, (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 2.06. Credit for Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of District Ordinance No. OCSD-01, as amended, in an amount equal to the annual Sanitary Sewer Service Charge established by Section 2.02 of this Ordinance, in the same manner as credit is allowed for ad valorem taxes pursuant to Sections 302.6(B), and 303.6(B) of District Ordinance No. OCSD-01, as amended. TABLE A ANNUAL SEWER SERVICE USER FEES RESIDENTIAL USERS FISCAL YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 SFR $100.00 $115.00 $132.00 $153.00 $175.00 MFR $ 70.00 $ 80.50 $ 92.40 $107.10 $122.50 SFR = SINGLE FAMILY RESIDENTIAL MFR = MULTI FAMILY RESIDENTIAL All properties located within Revenue Area No. 14 pay no annual service fees. District costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. WS&S-TLW:pj:188361,v-3:11102//04 11 TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 1 Vacant Land Parcel 0% 5 Common Area Parcel 0% 6 "Hold" Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0% 124 Oil/Mineral Rights 0% 125 Mineral Rights Equipment 0% 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption Addl. 0% 666 Unassigned Vacant 0% 777 Septic Tank Property 0% 112 Steel Building 7% 113 Mini-Warehouse 7% 58 Nurseries (Plants) 10% 100 Drive-In Theater 10% 44 Lumber/Constr. Material Yard 17% 71 Parking Garage 17% 72 Paved Parking Lot 17% 110 Warehouse—Single Tenant 17% 111 Warehouse — Multi Tenant 17% 115 Recreational Vehicle Storage 17% 116 Truck Terminal 17% 33 Church Buildings 20% 94 Department Store 23% 95 Discount Store 23% 96 Unattached Single Store 23% 97 Strip Store 23% 74 Recreational Vehicle Park 27% 36 Financial Buildings 27% 40 Health Club 29% 68 High Rise Office 30% 21 Automobile Dealership 41% 22 Auto Repair Shop 41% 23 Automotive Service 41% 24 Used Car Lot 41% 39 Golf Course 41% 57 Motorcycle/Small Vehicle Building 41% 83 Automotive Service Station 41% WS&S-TLW:pj:188361,v-3:11/02//04 12 TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 84 Marine Service Station 41% 86 Combin.-Service Station/Convenience 41% 65 Single Office Bldgs. to 3 Stories 41% 66 Small Office Center 41% 67 Office Complex 41% 69 Converted Residence to Office 41% 7 Mobile Home 50% 55 Mobile Home Park 50% 107 Light Industrial —Single Tenant 50% 108 Light Industrial —Multi Tenant 50% 109 Research and Development 50% 114 Industrial Park 50% 37 Fraternal Buildings 51% 101 Unattached Theater 51% 26 Airport and Related Buildings 53% 45 Marinas 53% 88 Low Flow Shopping Center 53% 3 Two or More Residences 70% 10 Duplex Only 70% 11 Triplex Only 70% 12 04-Units Only 70% 13 5 to 16 Units 70% 14 17 to 25 Units 70% 15 26 to 40 Units Only 70% 16 41-99 Units Only 70% 17 100 or More Units 70% 18 Developed with a Mix of Forms 70% 63 Low Rise Retirement Building 70% 64 High Rise Retirement Building 70% 81 Pre-Schools, Nursery or Care 82% 82 Private Schools 82% 98 Store with Offices or Living Quarter 82% 99 Store with Office Upstairs 82% 118 Governmental Use Vacant/Develop. 82% 19 SFR with 1 or 2 rental units 85% 34 Dormitory 97% 42 Hospital 97% 43 Hotel 97% 56 Motels and Motor Hotels 97% WS&S-TLW:pj:188361,v-3:11/02//04 13 TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 0 Conversion-C/1, Rural PC 100% 2 One Residence 100% 4 Miscellaneous Improvement 100% 85 Comb. Serv. Stn./Restaurant 100% 103 Chemical Tank and Bulk Storage 100% 104 Food Processing Plant 100% 105 Cold Storage Plant 100% 106 Factory 100% 119 Public Utility 100% 120 Water Mutual or Company 100% 888 Conversion-Composite Prop. 100% 32 Cemetery & Related Buildings 101% 38 Funeral Home 101% 60 Nursing Home 102% 61 Convalescent Hospitals 102% 62 Converted Res. Used as Nursing 102% 28 Bowling Alleys 112% 92 Skating Rinks 112% 50 Single Medical Bldgs. to 3 Stories 124% 51 Small Medical Center 124% 52 Medical Center Complex 124% 53 High Rise Medical 124% 54 Converted Residence to Medical 124% 89 Average Flow Shopping Center 139% 20 Amusement Parks 144% 35 Entertainment Center 144% 73 Recreation 144% 30 Coin Operated Car Wash 151% 47 Supermarket 151% 48 Convenience Market 151% 90 High Flow Shopping Center 226% 76 Restaurant—Take Out 300% 77 Restaurant—Coffee Shop 600% 78 Restaurant— Dinner House 600% 79 Restaurant— Conversion from SF 600% 29 Conventional Car Wash 796% NOTE: Multiply the Table A Single Family Residential Rate by the percentage figure above in order to determine the rate per 1,000 square feet for the commercial or industrial user. WS&S-TLW:pj:188361,v-3:11/02//04 14 ARTICLE III CAPITAL FACILITIES CAPACITY CHARGES Section 3.01. Purpose and Scope. The purpose of this Ordinance is to impose Capital Facilities Capacity Charges when properties, either newly- connect to the District's system, or expand the use of the property previously connected to the District. Revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, and reconstruction of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal or state loans for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 3.02. Definitions. A. "Actual construction costs" include the cost of all activities necessary or incidental to the construction of a District facility, such as financing, planning, designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. "Capital Facilities Capacity Charge" means a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose Discharge Permit. C. "Connection fee" means a fee equal to the cost necessary to physically connect a property to the District's system, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection and which fee does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities. D. "Non-discriminatory" means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non- public users, and is not in excess of the proportionate share of the cost of the District's facilities of benefit to the person or property being charged, based upon the proportionate share of use of those facilities. WS&S-TLW:pj:188361,v-3:11/02//04 15 E. "Public agency" means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of California, a county, city, district, school district, local or regional public authority, or any other political entity, subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 3.07, 3.08, 3.09, and 3.10 of this Ordinance, is an annual charge payable to the District on a quarterly or annual basis, as determined by the District. Said charge is required to be paid by dischargers that exceed the maximum quantity of flow or constituents (BOD or SS) allowed as a base use for which the CFCC is paid. Section 3.03. Connection Permits: Required. A. Connection permits are required of each and every dwelling unit, and each commercial or industrial building, and structure connecting directly or indirectly to the District's sewerage system facilities. Included are the connections of laterals to local municipal sewerage facilities, and the connection of local municipal sewerage facilities and laterals to the District's facilities. Multiple detached structures on a single parcel of property shall each be required to obtain a connection permit. B. Except as authorized by the issuance of a Special Purpose Discharge Permit under Sections 305 — 305.6 of Ordinance No. OCSD-01, or as amended, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, no permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the District and within the boundaries of a local sewering agency authorized to maintain public sewering facilities. However, a permit, as authorized above, may be issued for property to be served outside the boundaries of a local sewering agency if a local sewering agency makes application for the issuance of such permit. There will be a non-discriminatory Capital Facilities Capacity Charge assessed to public agencies for connecting directly or indirectly to the District's sewerage system facilities, and a connection permit must be obtained. Section 3.04. Capital Facilities Capacity Charge: Payment Required. No application for a permit for a connection of a structure to a District sewerage facility, or to any sewerage facility which discharges into a District sewerage facility, shall be approved, nor a permit issued, until a District Capital Facilities Capacity Charge is paid by the applicant, except as provided for discharges under a Special Purpose Discharge Permit. No connection permit shall be issued unless there is an established category of use of the property to be served or a valid building permit issued which establishes the category of use of said property. WS&S-TLW:pj:188361,v-3:11/02//04 16 Section 3.05. Capital Facilities Capacity Charqe: Time of Payment. A. Payment of the Capital Facilities Capacity Charge established by this Ordinance for connection to the District's sewerage system facilities shall be required at the time of issuance of the building permit for all construction within the District, excepting in the case of a building legally exempt from the requirement of obtaining a permit. The payment of the Capital Facilities Capacity Charge for such exempt buildings will be required at the time of and prior to the issuing of a plumbing connection permit for any construction within the territorial limits of the District, or if none, prior to the issuance of a Certificate of Occupancy. B. Upon application of any property owner seeking to connect to the District's system, the Board of Directors of District, in its sole and absolute discretion and upon a finding of compelling need, may, pursuant to the authority of California Health & Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge in installments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum, and that the charges and interest shall constitute a lien on the property. Section 3.06. Capital Facilities Capacity Charge. Schedule of Amounts. Every person or entity connecting any new or expanded building or structure to the District's system facilities shall pay a Capital Facilities Capacity Charge in the amount for the applicable category of use set forth on Table C, below. WS&S-TLW:pj:188361,v-3:11/02//04 17 r TABLE C CAPITAL FACILITIES CAPACITY CHARGES Use Category Rate Basis Base Charge Commercial — Industrial Per 1,000 square feet' Low Demand' Per 1,000 square feet $ 170.001 Average Demand` Per 1,000 square feet $1,050.001 High Demand Per 1,000 square feet $2,490.001 Single Family Residential (SFR) * % of Base Base Charge 5+ Bedrooms (Per Unit) 1.39 $4,020.00 4 Bedrooms (Per Unit) 1.19 $3,440.00 3 Bedrooms (Per Unit) 1.00 (Base) $2,890.00 2 Bedrooms (Per Unit) 0.81 $2,340.00 1 Bedroom (Per Unit) 0.62 $1,790.00 Multi-Family Residential (MFR) * % of Base Base Charge 4+ Bedrooms (Per Unit) 1.08 $3,120.00 3 Bedrooms (Per Unit) 0.89 $2,570.00 2 Bedrooms (Per Unit) 0.70 $2,020.00 1 Bedroom (Per Unit) 0.50 $1,450.00 Studio (Per Unit) 0.32 $ 920.00 Supplemental CFCC for Permit Users, includes 5% cost of funds. Flow, gallons per day $0.001001 BOD, pounds per day $0.289100 SS, pounds per day $0.187150 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $2,890.00; and all calculations shall be on a 1,000 square foot, or portion thereof, basis. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the District, and in the Building Department of each City within the District. 'Low Demand connections are the following categories of Users: Nurseries; Warehouses; Parking Structures; RV Storage; Churches; Truck Terminals; RV Parks; Lumber/Construction Yards; and other dischargers whose flow is similar in volume to these listed categories. 3High Demand connections are the following categories of users: Restaurants, Supermarkets; Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with Restaurants; Food Processing Facilities; Textile Manufacturers; and other dischargers whose flow is similar in volume to these listed categories. 4All other connections are Average demand users. *SFR—The rates for each size of SFR and MFR are established with a 3-bedroom SFR having a base of 1.0, and all others are a relative percentage higher or lower than 1.0, depending on size of unit, as noted. WS&S-TLW:pj:188361,v-3:11/02//04 18 Section 3.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users and Special Purpose Dischargers — Definitions. A. A Significant Commercial — Industrial User ("SCIU") is any person or entity who discharges commercial or industrial process flow, but excluding domestic sewage flow, in an amount greater than 25,000 gallons per day ("gpd"), or Biochemical Oxygen Demand ("BOD") greater than 150 pounds per day, or Suspended Solids ("SS") greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Ordinance No. OCSD-01, as amended, Article 3, due to having federally or District regulated or significant discharges. B. A special purpose discharger ("SPD") is any person or entity who discharges to the sewer system wastewater or process flow in an amount greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of Ordinance No. OCSD-01 or its successor. C. An Existing SCIU or SPD is any SCIU or SPD connected and discharging to the District's system prior to January 1, 2000. D. A New SCIU or SPD is any user who connects and discharges to the District's system pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraphs 3.07A and B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU or SPD. E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table C, above, is 25,000 gallons per day ("gpd"), or 150 pounds each of BOD and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subsection 3.07E shall be subject to the provisions of Sections 3.08 and 3.09 hereof. F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the District as of January 1, 2000. The baseline shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge data which the District determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU's solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section 3.07A above, shall have a minimum baseline established as follows: Flow— 25,000 gallons per day; BOD — 150 pounds per day; and SS — 150 pounds per day. The SCIU shall be authorized to discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. WS&S-TLW:pj:188361,v-3:11/02//04 19 G. Each Existing SPD shall have a baseline of 25,000 gpd, 150 pounds per day of BOD and 150 pounds of SS. The Existing SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a Supplemental Capital Facilities Capacity Charge. H. The Supplemental Capital Facilities Capacity Charge, as prescribed by Sections 3.08, 3.09, and 3.10 below, shall be payable commencing with the effective date of this Ordinance. I. Within two (2) years from the date of the District's written notice to the existing SCIU of its baseline amounts, the existing SCIU, as described in Section 3.07C, shall have a right to appeal the District's established baseline for the SCIU. The appeal shall be to the General Manager, or his designated representative, who shall have discretion, based upon extraordinary circumstances, wherein the established baseline is not representative of the historical average daily discharge by the SCIU for a yearly period, to modify the baseline amounts for the current year, or on a permanent basis, subject to terms and conditions as prescribed by the General Manager. The decision of the General Manager shall be final. Section 3.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table C, for commercial — industrial use category properties, all New SCIU's shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge maximums, in the amount shown in Table D. Section 3.09. Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers. All New SPDs shall pay a Supplemental Capital Facilities Capacity Charge of $0.001001 per gallon per day for each gallon of flow exceeding 25,000 gallons per day. Upon issue of permission to discharge, SPD with discharges above 25,000 gpd shall pay a nonrefundable Supplemental Capital Facilities Capacity Charge, prior to discharge, for one million gallons above 25,000 gpd. The deposit will be credited by the District against future Supplemental Capital Facilities Capacity Charges. Section 3.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users and Special Purpose Dischargers. A. All Existing Significant Commercial — Industrial Users connected to and discharging to the District's system shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd"), or 25% per day over its established baseline authorization, whichever is lesser; or (ii) an increase WS&S-TLW:pj:188361,v-3:11/02//04 20 3 of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section 3.10A above: TABLE D SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge Flow Gallons Per Day $0.001001 BOD Pounds Per Day $0.289100 SS Pounds Per Day $0.187150 C. All Existing SPDs connected and discharging to the sewer shall be required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity Charge shall be $0.001001 per gallon per day of discharge for each gallon above 25,000 gpd. D. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User's baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the District. Section 3.11. Capital Facilities Capacity Charge: Replacement Structures. For new construction replacing former structures, the Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Table C, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table C that would be for the prior category of use which was terminated and removed. Section 3.12. Capital Facilities Capacity Charge: Remodeled Structures. In the case of existing structures connected to the District's system facilities, to which new construction or alteration is made to change or increase the category of use, a Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Table C, less a credit amount, up to the amount of the WS&S-TLW:pj:188361,v-3:11/02//04 21 new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table C for the prior category of use. Section 3.13. Payment of Capital Facilities Capacity Charge: Off- Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for connection to off-site sewers which are not included as part of the District Master Plan and for which a Non-Master Plan Reimbursement Agreement has been entered into between the District and the property owner, shall be paid in the amount provided for in said Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in said Agreement shall be the amount due, provided the original Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall be in addition to the other Capital Facilities Capacity Charges provided for in Sections 3.06 through 3.10 hereinabove, established for property connecting to said facilities. Section 3.14. No Refund or Transfer. A Capital Facilities Capacity Charge is paid for the connection of a specific building or structure on a parcel of property. No refund of any charge shall be made because of non-use or change of use, or any other reason. The connection permit is non-transferable to any other parcel of property. Section 3.15. Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable, nor shall a credit for such previously existing baseline be provided to another SCIU concurrently or subsequently occupying the same property. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 3.08 above. WSBS-TLW:pj:188361,v-3:11/02//04 22 ARTICLE IV MISCELLANEOUS CHARGES AND FEES RELATING T O INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 4.01. Purpose and Scope. The purpose of this Ordinance is to recover those costs incurred by the District (i) on account of industrial dischargers' and wastehaulers' use of the District's facilities; (ii) when administering the District's Source Control Program; and (iii) when performing non-compliance sampling of industrial wastewater dischargers who have violated the District's Wastewater Discharge Regulations or the terms and conditions of the discharger's permit. Revenues derived under the provisions of this Ordinance shall be used to defray the costs incurred by the District (i) on account of such use of the District's facilities; and (ii) in performing these tasks. Section 4.02. Administrative Fees and Charges Relating to Permittees. Administrative fees and charges relating to permittees are hereby established in the sum or sums as set forth in Table E, below. Section 4.03. Source Control Non-Compliance Fees. Source control non-compliance fees are hereby established for dischargers' non- compliance sampling and for self-monitoring and data reporting non-compliance, in the sum or sums as set forth in Table F, below. Section 4.04. Special Purpose Discharge Permittees; Charges for Use. As authorized by Sections 305.5 and 305.6 of the District's Wastewater Discharge Regulations adopted by Ordinance No. OCSD-01, as amended, charges for use are hereby established for Special Purpose Discharge Permittees, as set forth in Table G, below Section 4.05. Class I and Class II Permittees — Charges for Use. As authorized by Sections 302.3, 302.6, 303.3 and 303.6 of the District's Wastewater Discharge Regulations adopted by Ordinance No. OCSD-01, as amended, the charges for use are hereby established for Class I and Class II Permittees as set forth in Table G, below. Section 4.06. Wastehauler Charges for Use. As authorized by Sections 306.3 and 306.7 of the District's Wastewater Discharge Regulations adopted by Ordinance No. OCSD-01, as amended, the charges for use are hereby established for wastehaulers as set forth in Table H, below. WS&S-TLW:pj:188361.v-3:11l02!!04 23 T f Section 4.07. Administrative Appeals. A. Any user, permit applicant, or permittee affected by any decision, action, or determination by the District may, within forty-five (45) days of the date of mailing by the District of the initial invoice for fees imposed pursuant to this Ordinance, request that the District reconsider imposition of such fees. Following review of such a request, the District shall notify the user, permit applicant, or permittee by certified mail of the District's decision on the reconsideration request. B. Any user, permit applicant, or permittee adversely affected by the District's decision on the reconsideration request, may file an appeal in accordance with Sections 617 and 619 of the District's Wastewater Discharge Regulations Ordinance No. OCSD-01, as amended. WS&S-TLW:pj:188361,v-3:11/02//04 24 TABLE E ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES Permit Fees Charges A. Class I Wastewater Discharge Permit $335.00/year B. Class II Wastewater Discharge Permit $70.00/year C. Special Purpose Discharge Permit $250.00/year - One-Time Application $975.00/permit - Nonrefundable Deposit for First One Million Gallons — New Permit Only $368.58 D. Wastehauler Discharge Permit $75.00/year Wastehauler Fees Charges F. Permit Decal Initial Issue $25.00 G. Permit Decal Replacement $50.00 H. Entry Card Initial Issue $50.00 I. Entry Card Replacement $100.00 J. After Hours Discharge — Prearranged $85.00/event K. After Hours Discharge — Emergency $100.00/event Administrative/Processing Fees Charges L. District's Collection of Tax Data $100.00/permit M. District's Collection of Water Consumption Data $100.00/permit N. Appeal Hearing Filing Fee $400/appeal WS&S-TLW:pj:188361,v-3:11/02//04 25 r TABLE F INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES Charge Cost of Processing and Sampling Following a Minor Violation $225.00/event Cost of Processing and Sampling Following a Major Violation $500.00/event Cost of Analysis Charge Heavy Metals: $35.00/each - Aluminum - Antimony - Arsenic - Cadmium - Chromium - Copper - Gold - Lead - Molybdenum - Nickel - Palladrum - Platinum - Selenium - Silver -Thallium - Zinc Mercury $78.00 601/602 $152.00 604 $223.00 606 $254.00 608 $523.00 610 $73.00 WS&S-TLW:pj:188361,v-3:11/02//04 26 TABLE F (CONTINUED) INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES Charge 612 $200.00 624 $355.00 625 $661.00 Ammonia Analysis as Nitrogen $ 21.00 Biochemical Oxygen Demand (BOD) $ 44.00 BOD and Suspended Solids (SS) Analysis $ 67.00 Chemical Oxygen Demand $ 44.00 Conductivity $ 15.00 Cyanide (Amenable) $ 70.00 Dissolved Mineral Solids $ 15.00 Gamma Radiation Determination $115.00 Gross Alpha and Beta Determination $ 50.00 Tritium Determination $ 50.00 Oil & Grease (Hexane Soluble Matter) $ 74.00 Oil & Grease (Mineral Partition) $ 74.00 Total Organic Nitrogen $ 48.00 pH $ 8.00 Fluoride $ 51.00 Suspended Solids (Total) $ 23.00 Suspended Solids (Total and Volatile) $ 44.00 Total Dissolved Solids $ 14.00 Total Sulfides $ 29.00 SELF-MONITORING AND DATA REPORTING NON-COMPLIANCE Cost of Processing and Issuing Significant Non-Compliance Notification $165.00 Cost of Processing Annual SNC and Publication $260.00 WS&S-TLW:pj:188361,v-3:11/02//04 27 T TABLE G CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Flow (*) $316.38 $577.30 $637.55 $711.27 $773.32 B.O.D. (**) $216.13 $270.68 $288.50 $311.21 $330.53 S.S. (***) $207.35 $414.27 $432.14 $454.19 $473.50 Domestic Equivalent $100.00 $115.00 $132.00 $153.00 $175.00 Special Purpose Discharge Permit FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Flow(*) $316.38 $577.30 $637.55 $711.27 $773.32 B.O.D. (**) $216.13 $270.68 $288.50 $311.21 $330.53 S.S. (***) $207.35 $414.27 $432.14 $454.19 $473.50 Domestic Equivalent $100.00 $115.00 $132.00 $153.00 $175.00 (*) Flow Per million gallons of Flow (**) B.O.D. Per thousand pounds of Biochemical Oxygen Demand (***) S.S. Per thousand pounds of Suspended Solids All properties located within Revenue Area No. 14 pay no annual service fees. District costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. WS&S-TLW:pj:188361,v-3:11/02//04 28 TABLE H WASTEHAULER CHARGES FOR USE Wastehauler Fees Charges Charge for Use —Waste originating $0.035/gallon of within Orange County truck capacity Charge for Use —Waste originating $0.11/gallon of outside Orange County truck capacity WS&S-TLW:pj:188361,v-3:11/02/104 29 ARTICLE V MISCELLANEOUS Section 5.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of District Ordinance No. OCSD- 01, as amended, Establishing Wastewater Discharge Regulations for Use of District's Sewage Facilities, including provisions for payment of charges or fees related thereto; District Ordinance No. OCSD-21, as amended, Establishing Fees Concerning Annexations of Territory to the District; and any other District Ordinances and Resolutions not in conflict herewith. Section 5.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: Section II. Severability. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section III. Effective Date. This Ordinance shall take effect January 1, 2005. Section IV. Repeal. Ordinance No. OCSD-22 is hereby repealed. Section V. Certification and Publication. The Secretary of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law. H H H WS&S-TLW:pj:188361,v-3:11/02//04 30 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: SECRETARY, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT THOMAS L. WOODRUFF DISTRICT GENERAL COUNSEL WS&S-TLW:pj:188361,v-3:11/02//04 31 OMTS COMMITTEE Meeting Date To Bd.of Dir. 10/06/04 11/17/04 AGENDA REPORT Item Number Item Number OMTSO4-51 16 Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Mahin Talebi, Source Control Manager SUBJECT: Ordinance No. OCSD-25, Adopting Fats, Oils, and Grease Control Regulations Applicable to Food Service Establishments for the City of Tustin and Unincorporated Area above Tustin — First Reading GENERAL MANAGER'S RECOMMENDATION Adopt Ordinance No. OCSD-25, An Ordinance of the Board of Directors of Orange County Sanitation District. Adopting Fats, Oils and Grease Control Regulations Applicable to Food Service Establishments. SUMMARY Staff is presenting Ordinance No. OCSD-25, regarding Fats, Oils, and Grease Control Regulations applicable to food service establishments for the City of Tustin and the unincorporated area north of Tustin and seeking the committee's recommendation to proceed with the first reading for adopting Ordinance No. OCSD-25, on October 27, 2004. The second reading and final adoption by the Board of Directors is anticipated in November 2004. FOG Control Ordinance • Under sewer service agreements dating back to the 1980's, OCSD owns and operates the local sewers in Tustin and the unincorporated area north of Tustin. As the local sewer authority, the District is responsible for the FOG Control Program in these areas. • The Regional Water Quality Control Board requires the District to execute a FOG Ordinance by December 30, 2004. Staff is presenting the draft Ordinance for initial consideration. The Core Elements of the proposed Ordinance include permitting, kitchen BMPs and grease interceptor requirements, monitoring, and enforcement provisions. Staff believes that the proposed Ordinance will enable the District to implement an economically feasible, practical, and effective FOG Control Program for about 250 food service establishments (FSEs) in the Tustin area. ■ The proposed Ordinance provides a flexible approach based on a case-by-case evaluation at each FSE before installation of a grease inceptor is required. It also includes provisions to issue waivers to de minimis FOG dischargers and variances to those that provide equivalent alternative technology for controlling FOG discharges. ■ Initial outreach to FSEs was conducted during the FOG characterization phase, when FSEs were inspected and informed about the upcoming FOG Control Program. Staff briefed the Tustin City Council about the program on August 2. 2004. The District also held a workshop in Tustin on August 3, 2004, to inform restaurant owners about the Ordinance and to solicit their comments. ■ On September 1. 2004, staff informed this committee about the proposed Ordinance and its intent to pursue the adoption of the Ordinance. On September 3, 2004, staff mailed to the FSEs the Ordinance and fact sheets that summarize the core elements of the Ordinance in layman's language. To date, a few comments have been received. After reviewing these comments, staff is not recommending any changes to the Ordinance. Staff is planning additional outreach activities before the adoption of the Ordinance in November 2004. ■ Barring any unforeseen complications, the second reading (and adoption) will occur in November, and the Ordinance will be published 15 days after it has been adopted and become effective in December. ■ After adoption of the Ordinance No. OCSD-25, staff will recommend a fee resolution for both permit and non-compliance fees (estimated at $100 each) to this committee. PRIOR COMMITTEE/BOARD ACTIONS NONE 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 In April 2002, the Santa Ana California Regional Water Control Board (Regional Board) issued Order No. R8-2002-0014, General Waste Discharge Requirements (WDR), requiring Orange County cities and sewering agencies under the jurisdiction of the Regional Board to monitor and control sewer spills and to prepare and implement FOG Control Programs by December 30, 2004. The District was named as one of the co-permittees and also designated as a facilitator for the regional effort to coordinate the development of the programs and implementation. Page 2 3 t Following the promulgation of the Order, the co-permittees determined that the interests of the county would best be met by conducting a comprehensive FOG Control Study to establish the technical, administrative, and ordinance building blocks of such a program, while providing a regional, practical, and equitable approach throughout Orange County. Staff and co-permittees agreed to conduct the study in two phases. Phase I ended in June 2003, and resulted in a draft Phase I report, which identified 12 programmatic building blocks for an effective FOG Control Program. The study also identified regional issues and three newer technologies that must be addressed in Phase II of the FOG Control Study before the report can be finalized. In July 2003, the Board authorized staff to enter into an agreement to conduct Phase II of the FOG Control Study and to enter into agreements with the other co-permittees to fund the study by using a fair-share formula based on population. The District also received a Proposition 13 grant to help offset some of the cost of Phase II. In addition to the regional efforts, the District is also preparing the FOG Control Program for the sewer systems in the City of Tustin and the unincorporated area above Tustin, which are owned and operated by the District. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS N/A Page 3 t ORDINANCE NO. OCSD-25 ADOPTING FATS, OILS AND GREASE CONTROL REGULATIONS APPLICABLE TO FOOD SERVICE ESTABLISHMENTS AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING FATS, OILS AND GREASE CONTROL REGULATIONS APPLICABLE TO FOOD SERVICE ESTABLISHMENTS WHEREAS, pursuant to the County Sanitation District Act, Health & Safety Code §§4700 et seq., the Orange County Sanitation District ("District") has the authority to adopt ordinances relating to the provision of sewer services and facilities, and regulations of those services and facilities; and WHEREAS, the Regional Water Quality Control Board ("RWQCB") for the Santa Ana Region adopted Order R8-2002-0014, which prescribes general waste discharge requirements prohibiting sanitary sewer overflows ("SSOs") by sewer collection agencies; and WHEREAS, in Order R8-2002-0014, the RWQCB found that one of the leading causes of SSOs within the Santa Ana Region, which encompasses the District's service area is "grease blockages;" and WHEREAS, SSOs often caused by discharge of wastewater containing high levels of fat, oils and grease (`FOG"), suspended solids, pathogenic organisms, and other pollutants, may cause temporary exceedances of applicable water quality objectives, pose a threat to the public health, adversely affect aquatic life, and impair the public recreational use and aesthetic enjoyment of surface waters within the District's service area; and WHEREAS, the 2000-2001 Orange County Grand Jury ("Grand Jury") conducted a survey among 35 wastewater collection and treatment agencies in Orange County and concluded that one of the leading causes of SSOs and sewage spills is sewer lines clogged from the accumulation of FOG discharged from Food Service Establishments; and WHEREAS, the Grand Jury further concluded that more effective methods of minimizing grease discharges into the sewer system must be developed and implemented to reduce the discharge of FOG to the sewer system in order to prevent sewer blockages and SSOs; and WHEREAS, Order No. R8-2002-0014 requires the District to monitor and control SSOs and to develop a FOG Control Program by December 30, 2004; and WHEREAS, in light of the overwhelming evidence that FOG is a primary cause of SSOs, the District desires to implement a FOG Control Program to prevent SSOs; and ws&s-0xs:pi:#189145:08/06/(9 1 WHEREAS, Section 1014 of the 2001 California Plumbing Code, applicable to all occupancies in the State pursuant to the California Building Standards Law, requires the installation of grease traps or interceptors when in the opinion of the Building Official waste pretreatment is required; and WHEREAS, the foregoing findings indicate that a FOG Control Program is required for Food Service Establishments within the District's jurisdiction to comply with waste discharge regulations and prevent the harmful effects of SSOs; and WHEREAS, the regulations adopted herein will require existing Food Service Establishments to install grease control devices or interceptors no later than three years from the effective date of this Ordinance, and the Board finds that three years is a reasonable amortization period for existing Food Service Establishments that are operating without a grease control device or grease interceptor; and WHEREAS, the Board of Directors finds that specific enforcement provisions must be adopted to govern discharges of wastewater to the District's system by Food Service Establishments. NOW, THEREFORE,the Board of Directors does hereby ordain as follows: ws&s-0x5:pi:#189145:08/06/04 2 ARTICLE 1 - GENERAL PROVISIONS 1.1 PURPOSE AND POLICY A. The purpose of this Ordinance is to facilitate the maximum beneficial public use of the District's sewer services and facilities while preventing blockages of the sewer lines resulting from discharges of FOG to the sewer facilities, and to specify appropriate FOG discharge requirements for Food Service Establishments. B. This Ordinance shall be interpreted in accordance with the definitions set forth in Section 1.2. The provisions of this Ordinance shall apply to the direct or indirect discharge of all wastewater or waste containing FOG carried to the sewer facilities of the District. C. To comply with Federal, State, and local policies and to allow the District to meet applicable standards, provisions are made in this Ordinance for the regulations of wastewater or waste containing FOG discharges to the sewer facilities. D. This Ordinance establishes quantity and quality standards on all wastewater and/or waste discharges containing FOG, which may alone or collectively cause or contribute to FOG accumulation in the sewer facilities causing or potentially causing or contributing to the occurrence of SSOs. 1.2 DEFINITIONS A. Unless otherwise defined herein, terms related to water quality shall be as adopted in the latest edition of Standard Methods for Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works Association and the Water Environment Federation. The testing procedures for waste constituents and characteristics shall be as provided in 40 CFR 136 (Code of Federal Regulations). B. Other terms not herein defined are defined as being the same as set forth in the latest adopted applicable editions of the California Codes applicable to building construction adopted pursuant to the California Building Standards Law. C. Subject to the foregoing provisions, the following definitions shall apply in this Ordinance: WS&S-0XS:pi:#189145:08/06/04 Best Management Schedules of activities, prohibitions of practices, Practices maintenance procedures and other management practices to prevent or reduce the introduction of FOG to the sewer facilities. Board The Board of Directors of the District. Change in Operations Any change in the ownership, food types, or operational procedures that have the potential to increase the amount of FOG generated and/or discharged by Food Service Establishments in an amount that alone or collectively causes or creates a potential for SSOs to occur. Composite Sample A collection of individual samples obtained at selected intervals based on an increment of either flow or time. The resulting mixture (composite sample) forms a representative sample of the wastestream discharged during the sample period. Samples will be collected when a wastewater discharge occurs. Discharger Any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. Discharger shall mean the same as User. District The Orange County Sanitation District. Sewer Facility or Any property belonging to the District used in the System treatment, reclamation, reuse, transportation, or disposal of wastewater, or sludge. Effluent Any liquid outflow from the Food Service Establishment that is discharged to the sewer. Fats, Oils, and Any substance such as a vegetable or animal product Grease ("FOG") that is used in, or is a by product of, the cooking or food preparation process, and that turns or may turn viscous or solidifies with a change in temperature or other conditions. FOG Control Program The FOG Control Program required by and developed pursuant to RWQCB Order No. R8-2002-0014, Section (c)(12)(viii). WS&S-OXS:pj:#189145:08/06/(A 4 FOG Control Program The individual designated by the District to administer Manager the FOG Control Program. The FOG Control Program Manager is responsible for all determinations of compliance with the program, including approval of discretionary variances and waivers. FOG Wastewater A permit issued by the District subject to the Discharge Permit requirements and conditions established by the District authorizing the permittee or discharger to discharge wastewater into the District's facilities or into sewer facilities which ultimately discharge into a District facility. Food Service Facilities defined in California Uniform Retail Food Establishment Service Establishments Law (CURFFL) Section 113785, and any commercial entity within the boundaries of the District, operating in a permanently constructed structure such as a room, building, or place, or portion thereof, maintained, used, or operated for the purpose of storing, preparing, serving, or manufacturing, packaging, or otherwise handling food for sale to other entities, or for consumption by the public, its members or employees, and which has any process or device that uses or produces FOG, or grease vapors, steam, fumes, smoke or odors that are required to be removed by a Type I or Type II hood, as defined in CURFFL Section 113785. A limited food preparation establishment is not considered a Food Service Establishment when engaged only in reheating, hot holding or assembly of ready to eat food products and as a result, there is no wastewater discharge containing a significant amount of FOG. A limited food preparation establishment does not include any operation that changes the form, flavor, or consistency of food. Food Grinder Any device installed in the plumbing or sewage system for the purpose of grinding food waste or food preparation by products for the purpose of disposing it in the sewer system. Grease Control Any grease interceptor, grease trap or other Device mechanism, device, or process, which attaches to, or is applied to, wastewater plumbing fixtures and lines, the purpose of which is to trap or collect or treat FOG prior to it being discharged into the sewer system. "Grease control device" may also include any other proven method to reduce FOG subject to the approval of the District. WS&S-OXS:pi:#1891 15:08/06/N 5 Grease Disposal A fee charged to an Owner/Operator of a Food Service Mitigation Fee Establishment when there are physical limitations to the property that make the installation of the usual and customary grease interceptor or grease control device for the Food Service Establishment under consideration, impossible or impracticable. The Grease Disposal Mitigation Fee is intended to cover the costs of increased maintenance of the sewer system for inspection and cleaning of FOG and other viscous or solidifying agents that a properly employed grease control device would otherwise prevent from entering the sewer system. Grease Interceptor A multi-compartment device that is constructed in different sizes and is generally required to be located, according to the California Plumbing Code, underground between a Food Service Establishment and the connection to the sewer system. These devices primarily use gravity to separate FOG from the wastewater as it moves from one compartment to the next. These devices must be cleaned, maintained, and have the FOG removed and disposed of in a proper manner on regular intervals to be effective. Grease Trap A grease control device that is used to serve individual fixtures and have limited effect and should only be used in those cases where the use of a grease interceptor or other grease control device is determined to be impossible or impracticable. General Manager The individual duly designated by the Board of Directors of the District to administer this Ordinance. Grab Sample A sample taken from a waste stream on a one-time basis without regard to the flow in the waste stream and without consideration of time. Hot Spots Areas in sewer lines that have experienced sanitary sewer overflows or that must be cleaned or maintained frequently to avoid blockages of sewer system. Inflow Water entering a sewer system through a direct stormwater/ runoff connection to the sanitary sewer, which may cause an almost immediate increase in wastewater flows. Infiltration Water entering a sewer system, including sewer service connections, from the ground through such means as defective pipes, pipe joints, connections, or manhole walls. ws&s—0xs:Fi:#189145:08/06/c4 6 Inspector A person authorized by the District to inspect any existing or proposed wastewater generation, conveyance, processing, and disposal facilities. Interceptor A grease interceptor. Interference Any discharge which, alone or in conjunction with discharges from other sources, inhibits or disrupts the District's sewer system, treatment processes or operations; or is a cause of violation of the District's NPDES or Waste Discharge Requirements or prevents lawful sludge use or disposal. Local Sewering Any public agency or private entity responsible for the Agency collection and disposal of wastewater to the District's sewer facilities duly authorized under the laws of the State of California to construct and/or maintain public sewers. NPDES The National Pollutant Discharge Elimination System; the permit issued to control the discharge of liquids or other substances or solids to surface waters of the United States as detailed in Public Law 92-500, Section 402. New Construction Any structure planned or under construction for which a sewer connection permit has not been issued. Permittee A person who has received a permit to discharge wastewater into the District's sewer facilities subject to the requirements and conditions established by the District. Person Any individual, partnership, firm, association, corporation or public agency, including the State of California and the United States of America_ Public Agency The State of California and/or any city, county, special district, other local governmental authority or public body of or within this State. Public Sewer A sewer owned and operated by the District, or other local Public Agency, which is tributary to the District's sewer facilities. WS&S-OX5:pj:#189145:08/0h/04 7 Regulatory Agencies Regulatory Agencies shall mean those agencies having regulatory jurisdiction over the operations of the District, including, but not limited to: a) United States Environmental Protection Agency, Region IX, San Francisco and Washington, DC (EPA). b) California State Water Resources Control Board (SWRCB). c) California Regional Water Quality Control Board, Santa Ana Region (RWQCB). d) South Coast Air Quality Management District (SCAQMD). e) California Department of Health Services (DOHS). Remodeling A physical change or operational change causing generation of the amount of FOG that exceed the current amount of FOG discharge to the sewer system by the Food Service Establishment in an amount that alone or collectively causes or create a potential for SSOs to occur; or exceeding a cost of $50,000 to a Food Service Establishment that requires a building permit, and involves any one or combination of the following: (1) Under slab plumbing in the food processing area, (2) a 30% increase in the net public seating area, (3) a 30% increase in the size of the kitchen area, or (4) any change in the size or type of food preparation equipment. Sample Point A location approved by the District, from which wastewater can be collected that is representative in content and consistency of the entire flow of wastewater being sampled. Sampling Facilities Structure(s) provided at the user's expense for the District or user to measure and record wastewater constituent mass, concentrations, collect a representative sample, or provide access to plug or terminate the discharge. Sewage Wastewater. Sewer Facilities or Any and all facilities used for collecting, conveying, System pumping, treating, and disposing of wastewater and sludge_ WS&S-OXS:pi:#1891.15:08/06/04 8 Sewer Lateral A building sewer as defined in the latest edition of the California Plumbing Code. It is the wastewater connection between the building's wastewater facilities and a public sewer system. Sludge Any solid, semi-solid or liquid decant, subnate or supernate from a manufacturing process, utility service, or pretreatment facility. Twenty-five percent Requirement for grease interceptors to be maintained (25%) Rule such that the combined FOG and solids accumulation does not exceed 25% of the design hydraulic depth of the grease interceptor. This is to ensure that the minimum hydraulic retention time and required available hydraulic volume is maintained to effectively intercept and retain FOG discharged to the sewer system. User Any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer system. User shall mean the same as Discharger. Waste Sewage and any and all other waste substances, liquid, solid, gaseous or radioactive, associated with human habitation or of human or animal nature, including such wastes placed within containers of whatever nature prior to and for the purpose of disposal. Manifest That receipt which is retained by the generator of wastes for disposing recyclable wastes or liquid wastes as required by the District. Waste Minimization Plans or programs intended to reduce or eliminate Practices discharges to the sewer system or to conserve water, including, but not limited to, product substitutions, housekeeping practices, inventory control, employee education, and other steps as necessary to minimize wastewater produced. Wastehauler Any person carrying on or engaging in vehicular transport of waste as part of, or incidental to, any business for that purpose. Wastewater The liquid and water-carried wastes of the community and all constituents thereof, whether treated or untreated, discharged into or permitted to enter a public sewer. WS&S-OXS:pj:#189145:08/06/04 9 Wastewater The individual chemical, physical, bacteriological, and Constituents and other parameters, including volume and flow rate and Characteristics such other parameters that serve to define, classify or measure the quality and quantity of wastewater. D. Words used in this Ordinance in the singular may include the plural and the plural the singular. Use of masculine shall mean feminine and use of feminine shall mean masculine. Shall is mandatory; may is permissive or discretionary. WS&S-0XS:pj:#189145:08/06/(A 10 0 ARTICLE 2 -GENERAL LIMITATIONS, PROHIBITIONS, AND REQUIREMENTS ON FATS, OILS, AND GREASE ("FOG") DISCHARGES 2.1 FOG DISCHARGE REQUIREMENT No Food Service establishment shall discharge or cause to be discharged into the sewer system FOG that exceeds a concentration level adopted by the Board or that may accumulate and/or cause or contribute to blockages in the sewer system or at the sewer system lateral which connects the Food Service Establishment to the sewer system. 2.2 PROHIBITIONS The following prohibitions shall apply to all Food Service Establishments: A. Installation of food grinders in the plumbing system of new constructions of Food Service Establishments shall be prohibited. Furthermore, all food grinders shall be removed from all existing Food Service Establishments within 180 days of the effective date of this Ordinance, except when expressly allowed by the FOG Control Program Manager. B. Introduction of any additives into a Food Service Establishment's wastewater system for the purpose of emulsifying FOG or biologically/chemically treating FOG for grease remediation or as a supplement to interceptor maintenance, unless a specific written authorization from the FOG Control Program Manager is obtained. C. Disposal of waste cooking oil into drainage pipes is prohibited. All waste cooking oils shall be collected and stored properly in receptacles such as barrels or drums for recycling or other acceptable methods of disposal. D. Discharge of wastewater from dishwashers to any grease trap or grease interceptor is prohibited. E. Discharge of wastewater with temperatures in excess of 140°F to any grease control device, including grease traps and grease interceptors, is prohibited. F. Discharge of wastes from toilets, urinals, wash basins, and other fixtures containing fecal materials to sewer lines intended for grease interceptor service, or vice versa, is prohibited. G. Discharge of any waste including FOG and solid materials removed from the grease control device to the sewer system is prohibited. Grease removed from grease interceptors shall be wastehauled periodically as part of the operation and maintenance requirements for grease interceptors. WS&S-OXS:pj:#189145:08/05/04 11 D H. Operation of grease interceptors with FOG and solids accumulation exceeding 25% of the design hydraulic depth of the grease interceptor (25% Rule) 2.3 FOG WASTEWATER DISCHARGE PERMIT REQUIRED No person shall discharge, or cause to be discharged any wastewater from Food Service Establishments directly or indirectly into the sewer system without first obtaining a FOG Wastewater Discharge Permit pursuant to this Ordinance. 2.4 BEST MANAGEMENT PRACTICES REQUIRED All Food Services Establishments shall implement Best Management Practices in its operation to minimize the discharge of FOG to the sewer system. Detailed requirements for Best Management Practices shall be specified in the permit. This may include kitchen practices and employee training that are essential in minimizing FOG discharge. 2.5 FOG PRETREATMENT REQUIRED Food Service Establishments are required to install, operate and maintain an approved type and adequately sized grease interceptor necessary to maintain compliance with the objectives of this Ordinance, subject to the variance and waiver provisions of Section 2.6. The grease interceptor shall be adequate to separate and remove FOG contained in wastewater discharges from Food Service Establishments prior to discharge to the sewer system. Fixtures, equipment, and drain lines located in the food preparation and clean up areas of Food Service Establishments that are sources of FOG discharges shall be connected to the grease interceptor. Compliance shall be established as follows: A. New Construction of Food Service Establishments New construction of Food Service Establishments shall include and install grease interceptors prior to commencing discharges of wastewater to the sewer system. B. Existing Food Service Establishments 1. For existing Food Service Establishments, the requirement to install and to properly operate and maintain a grease interceptor may be conditionally stayed, that is, delayed in its implementation by the FOG Control Program Manager for a maximum period of three years from the effective date of this Ordinance (3-year Amortization Period). Terms and conditions for application of a stay to a Food Service Establishment shall be set forth in the permit. The Board finds that three years is a reasonable amortization period for existing Food Service Establishments that are operating without a grease interceptor. WS&S-OXS:p1:#189145:08/06/(M 12 2. Existing Food Service Establishments, which have caused or contributed to grease-related blockage in the sewer system, or which have sewer laterals connected to hot spots, or which have been determined to contribute significant FOG to the sewer system by the FOG Control Program Manager based on inspection or sampling, shall be deemed to have reasonable potential to adversely impact the sewer system, and shall install grease interceptors within 180 days upon notification by the District. 3. Existing Food Service Establishments or Food Service Establishments that change ownership, that undergo remodeling or a change in operations as defined in Section 1.2 of this Ordinance, shall be required to install a grease interceptor. 2.6 VARIANCE AND WAIVER OF GREASE INTERCEPTOR REQUIREMENT A. Variance from Grease Interceptor Requirements An existing Food Service Establishment may obtain a variance from the grease interceptor requirement to allow alternative pretreatment technology that is, at least, equally effective in controlling the FOG discharge in lieu of a grease interceptor, if the Food Service Establishment demonstrates that it is impossible or impracticable to install, operate or maintain a grease interceptor. The FOG Control Program Manager's determination to grant a variance will be based upon, but not limited to, evaluation of the following conditions: 1. There is no adequate space for installation and/or maintenance of a grease interceptor. 2. There is no adequate slope for gravity flow between kitchen plumbing fixtures and the grease interceptor and/or between the grease interceptor and the private collection lines or the public sewer. 3. The Food Service Establishment can justify that the alternative pretreatment technology is equivalent or better than a grease interceptor in controlling its FOG discharge. In addition, the Food Service Establishment must be able to demonstrate, after installation of the proposed alternative pretreatment, its effectiveness to control FOG discharge through downstream visual monitoring of the sewer system, for at least three months, at its own expense. A Variance may be granted if the results show no visible accumulation of FOG in its lateral and/or tributary downstream sewer lines. B. Conditional Waiver from Installation of Grease Interceptor An existing Food Service Establishment may obtain a conditional waiver from installation of a grease interceptor, if the Food Service WS&S-0XS:pj:#189145:()8/06/(9 13 Establishment demonstrates that it has negligible FOG discharge and insignificant impact to the sewer system. Although a waiver from installation of grease interceptor may be granted, the Food Service Establishment may be required to provide space and plumbing segregation for future installation of grease interceptor. The FOG Control Program Manager's determination to grant or revoke a conditional waiver shall be based upon, but not limited to, evaluation of the following conditions: 1. Quantity of FOG discharge as measured or as indicated by the size of Food Service Establishment based on seating capacity, number of meals served, menu, water usage, amount of on-site consumption of prepared food and other conditions that may reasonably be shown to contribute to FOG discharges. 2. Adequacy of implementation of Best Management Practices and compliance history. 3. Sewer size, grade, condition based on visual information, FOG deposition in the sewer by the Food Service Establishment, and history of maintenance and sewage spills in the receiving sewer system. 4. Changes in operations that significantly affect FOG discharge. 5. Any other condition deemed reasonably related to the generation of FOG discharges by the FOG Control Program Manager. C. Waiver from Grease Interceptor Installation with a Grease Disposal Mitigation Fee For Food Service Establishments where the installation of grease interceptor is not feasible and no equivalent alternative pretreatment can be installed, a waiver from the grease interceptor requirement may be granted with the imposition of a Grease Disposal Mitigation Fee as described in Section 2.8. Additional requirements may be imposed to mitigate the discharge of FOG into the sewer system. The FOG Control Program Manager's determination to grant the waiver with a Grease Disposal Mitigation Fee will be based upon, but not limited to, evaluation of the following conditions: 1. There is no adequate space for installation and/or maintenance of a grease interceptor. 2. There is no adequate slope for gravity flow between kitchen plumbing fixtures and the grease interceptor and/or between the grease interceptor and the private collection lines or the public sewer. 3. A variance from grease interceptor installation to allow alternative pretreatment technology cannot be granted. ws&s-0x5:pi:#1891 45:os/c6/«+ 14 D. Application for Waiver or Variance of Requirement for Grease Interceptor A Food Service Establishment may submit an application for waiver or variance from the grease interceptor requirement to the FOG Control Program Manager. The Food Service Establishment bears the burden of demonstrating, to the FOG Control Program Manager's reasonable satisfaction, that the installation of a grease interceptor is not feasible or applicable. Upon determination by the FOG Control Program Manager that reasons are sufficient to justify a variance or waiver, the permit will be issued or revised to include the variance or waiver and relieve the Food Service Establishment from the requirement. E. Terms and conditions A variance or waiver shall contain terms and conditions that serve as basis for its issuance. A waiver or variance may be revoked at any time when any of the terms and conditions for its issuance is not satisfied or if the conditions upon which the waiver was based change so that the justification for the waiver no longer exists. The waiver or variance shall be valid so long as the Food Service Establishment remains in compliance with their terms and conditions until the expiration date specified in the variance or waiver. 2.7 COMMERCIAL PROPERTIES Property owners of commercial properties or their official designee(s) shall be responsible for the installation and maintenance of the grease interceptor serving multiple Food Service Establishments that are located on a single parcel. 2.8 GREASE DISPOSAL MITIGATION FEE Food Service Establishments that operate without a grease control interceptor may be required to pay an annual Grease Disposal Mitigation Fee to equitably cover the costs of increased maintenance of the sewer system as a result of the Food Service Establishments' inability to adequately remove FOG from its wastewater discharge. This Section shall not be interpreted to allow the new construction of, or existing Food Service Establishments undergoing remodeling or change in operations to operate without an approved grease interceptor unless the District has determined that it is impossible or impracticable to install or operate a grease control interceptor for the subject facility under the provisions of Section 2.6 of this Ordinance. A. The Grease Disposal Mitigation Fee shall be established by ordinance or resolution of the Board of Directors, and shall be based on the estimated annual increased cost of maintaining the sewer system for inspection and removal of FOG and other viscous or solidifying agents attributable to the Food Service Establishment resulting from the lack of a grease interceptor or grease control device. WS&S-0XS:pi:#189145:08/06/04 15 B. The Grease Disposal Mitigation Fee may be waived or reduced on a no less than an annual basis when the discharger demonstrates to the reasonable satisfaction of the FOG Control Program Manager that they had used best management and waste minimization practices on a regular basis that has significantly reduced the introduction of FOG into the sewer system. C. The Grease Disposal Mitigation Fee may not be waived or reduced when the Food Service Establishment does not comply with the minimum requirements of this Ordinance and/or its discharge into the sewer system in the preceding 12 months has caused or potentially caused or contributed alone or collectively, in sewer blockage or SSO in the sewer downstream, or surrounding the Food Service Establishment prior to the waiver request. 2.9 SEWER SYSTEM OVERFLOWS, PUBLIC NUISANCE, ABATEMENT ORDERS AND CLEANUP COSTS Notwithstanding the three-year amortization period established in Section 2.5, Food Service Establishments found to have contributed to a sewer blockage, SSOs or any sewer system interferences resulting from the discharge of wastewater or waste containing FOG, shall be ordered to install and maintain a grease interceptor, and may be subject to a plan to abate the nuisance and prevent any future health hazards created by sewer line failures and blockages, SSOs or any other sewer system interferences. SSOs may cause threat and injury to public health, safety, and welfare of life and property and are hereby declared public nuisances. Furthermore, sewer lateral failures and SSOs caused by Food Service Establishments alone or collectively, are the responsibility of the private property owner or Food Service Establishment, and individual(s) as a responsible officer or owner of the Food Service Establishment. If the District must act immediately to contain and clean up an SSO caused by blockage of a private or public sewer lateral or system serving a Food Service Establishment , or at the request of the property owner or operator of the Food Service Establishment, or because of the failure of the property owner or Food Service Establishment to abate the condition causing immediate threat of injury to the health, safety, welfare, or property of the public, the District's costs for such abatement may be entirely borne by the property owner or operator of the Food Service Establishment, and individual(s) as a responsible officer or owner of the Food Service Establishment(s) and may constitute a debt to the District and become due and payable upon the District's request for reimbursement of such costs. WS&S-0X5:pi:#189145:08/06/04 16 ARTICLE 3 - FOG WASTEWATER DISCHARGE PERMITS FOR FOOD SERVICE ESTABLISHMENTS 3.1 FOG WASTEWATER DISCHARGE PERMIT REQUIRED A Food Service Establishments proposing to discharge or currently discharging wastewater containing FOG into the District's sewer system shall obtain a FOG Wastewater Discharge Permit from the District. B. FOG Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the District. The conditions of FOG Wastewater Discharge Permits shall be enforced by the District in accordance with this Ordinance and applicable State and Federal Regulations. 3.2 FOG WASTEWATER DISCHARGE PERMIT APPLICATION A. Any person required to obtain a FOG Wastewater Discharge Permit shall complete and file with the District prior to commencing or continuing discharges, an application in a form prescribed by the District. The applicable fees shall accompany this application. The applicant shall submit, in units and terms appropriate for evaluation, the following information at a minimum: 1. Name, address, telephone number, assessor's parcel number(s), description of the Food Service Establishment, operation, cuisine, service activities, or clients using the applicant's services. 2. (Whichever is applicable) Name, address of any and all principals/owners/major shareholders of the Food Service Establishment; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Name and address of property owner or lessor and the property manager where the Food Service Establishment is located. 4. Any other information as specified in the application form. B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, FOG control device, grease interceptor or other pretreatment equipment and appurtenances by size, location, and elevation for evaluation. C. Other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, the District may issue a FOG Wastewater Discharge Permit, subject to terms and conditions set forth in WS&S-OXS:pj:#189145:08/06/(M 17 this Ordinance and as otherwise determined by the FOG Control Program Manager to be appropriate to protect the District's sewer system. 3.3 FOG WASTEWATER DISCHARGE PERMIT CONDITIONS The issuance of a FOG Wastewater Discharge Permit may contain any of the following conditions or limits: A. Limits on discharge of FOG and other priority pollutants. B. Requirements for proper operation and maintenance of grease interceptors and other grease control devices. C. Grease interceptor maintenance frequency and schedule. D. Requirements for implementation of Best Management Practices and installation of adequate grease interceptor and/or grease control device. E. Requirements for maintaining and reporting status of Best Management Practices F. Requirements for maintaining and submitting logs and records, including wastehauling records and waste manifests. G. Requirements to self-monitor. H. Requirements for the Food Service Establishment to construct, operate and maintain, at its own expense, FOG control device and sampling facilities. I. Additional requirements as otherwise determined to be reasonably appropriate by the FOG Control Program Manager to protect the District's system or as specified by other Regulatory Agencies. J. Other terms and conditions, which may be reasonably applicable to ensure compliance with this Ordinance. 3.4 FOG WASTEWATER DISCHARGE PERMIT APPLICATION FEE The FOG Wastewater Discharge Permit Application fee shall be paid by the applicant in an amount adopted by ordinance or resolution of the Board of Directors of the District. Payment of permit application fee must be received by the District upon submission of the permit application. A permittee shall also pay any delinquent invoices in full prior to permit renewal. 3.5 FOG WASTEWATER DISCHARGE PERMIT MODIFICATION OF TERMS AND CONDITIONS A. The terms and conditions of an issued permit may be subject to modification and change by the sole determination of the FOG Control Program Manager during the life of the permit based on: ws&s-oxs:pi:#189145:08/06/0+ 18 1. The discharger's current or anticipated operating data; 2. The District's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the District; or 4. A determination by the FOG Control Program Manager that such modification is appropriate to further the objectives of this Ordinance. B. The Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The FOG Control Program Manager shall review the request, make a determination on the request, and respond in writing. C. The Permittee shall be informed of any change in the permit limits, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 3.6 FOG WASTEWATER DISCHARGE PERMIT DURATION AND RENEWAL FOG Wastewater Discharge Permits shall be issued for a period not to exceed four (4) years. At least 60 days prior to the expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. 3.7 EXEMPTION FROM FOG WASTEWATER DISCHARGE PERMIT A limited food preparation establishment is not considered a Food Service Establishment and is exempt from obtaining a FOG Wastewater Discharge Permit. Exempted establishments shall be engaged only in reheating, hot holding or assembly of ready to eat food products and as a result, there is no wastewater discharge containing significant amount of FOG. A limited food preparation establishment does not include any operation that changes the form, flavor, or consistency of food. 3.8 NON-TRANSFERABILITY OF PERMITS FOG Wastewater Discharge Permits issued under this Ordinance are for a specific Food Service Establishment, for a specific operation and create no vested rights. A. No permit holder shall assign, transfer, sell any FOG Wastewater Discharge Permit issued under this Ordinance nor use any such permit for or on any premises or for facilities or operations or discharges not expressly encompassed within the underlying permit. B. Any permit which is transferred to a new owner or operator or to a new facility is void. ws&s-oxs:pi:#189145:08/06/(M 19 3.9 FOG WASTEWATER DISCHARGE PERMIT CHARGE FOR USE A charge to cover all costs of the District for providing the sewer service and monitoring shall be established by Ordinance or Resolution of the Board of Directors of the District. WS&S-OXS:pj:#189145:08/06/04 20 ARTICLE 4 - FACILITIES REQUIREMENTS 4.1 DRAWING SUBMITTAL REQUIREMENTS Upon request by the District: A. Food Service Establishments may be required to submit two copies of facility site plans, mechanical and plumbing plans, and details to show all sewer locations and connections. The submittal shall be in a form and content acceptable to the District for review of existing or proposed grease control device, grease interceptor, monitoring facilities, metering facilities, and operating procedures. The review of the plans and procedures shall in no way relieve the Food Service Establishments of the responsibility of modifying the facilities or procedures in the future, as necessary to produce an acceptable discharge, and to meet the requirements of this Ordinance or any requirements of other Regulatory Agencies. B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, FOG control device, grease interceptor or other pretreatment equipment and appurtenances by size, location, and elevation for evaluation. C. Food Service Establishments may be required to submit a schematic drawing of the FOG control device, grease interceptor or other pretreatment equipment, piping and instrumentation diagram, and wastewater characterization report. D. The District may require the drawings be prepared by a California Registered Civil, Chemical, Mechanical, or Electrical Engineer. 4.2 GREASE INTERCEPTOR REQUIREMENTS A. All Food Service Establishments shall provide wastewater acceptable to the District, under the requirements and standards established herein before discharging to any public sewer. Any Food Service Establishment required to provide FOG pretreatment shall install, operate, and maintain an approved type and adequately sized grease interceptor necessary to maintain compliance with the objectives of this Ordinance. B. Grease interceptor sizing and installation shall conform to the current edition of the Uniform Plumbing Code. Grease interceptors shall be constructed in accordance with the design approved by the FOG Control Program Manager and shall have a minimum of two compartments with fittings designed for grease retention. C. The grease interceptor shall be installed at a location where it shall be at all times easily accessible for inspection, cleaning, and removal of accumulated grease. WS&S-OXS:pi:#189145:08/06/04 21 D. Access manholes, with a minimum diameter of 24 inches, shall be provided over each grease interceptor chamber and sanitary tee. The access manholes shall extend at least to finished grade and be designed and maintained to prevent water inflow or infiltration. The manholes shall also have readily removable covers to facilitate inspection, grease removal, and wastewater sampling activities. 4.3 GREASE TRAP REQUIREMENTS A. Food Service Establishments may be required to install grease traps in the waste line leading from drains, sink, and other fixtures or equipment where grease may be introduced into the sewer system in quantities that can cause blockage. B. Sizing and installation of grease traps shall conform to the current edition of the California Plumbing Code. C. Grease traps shall be maintained in efficient operating conditions by removing accumulated grease on a daily basis. D. Grease traps shall be maintained free of all food residues and any FOG waste removed during the cleaning and scraping process. E. Grease traps shall be inspected periodically to check for leaking seams and pipes, and for effective operation of the baffles and flow regulating device. Grease traps and their baffles shall be maintained free of all caked-on FOG and waste. Removable baffles shall be removed and cleaned during the maintenance process. F. Dishwashers and food waste disposal units shall not be connected to or discharged into any grease trap. 4.4 MONITORING FACILITIES REQUIREMENTS A. The District may require the Food Service Establishments to construct and maintain in proper operating condition at the Food Service Establishment's sole expense, flow monitoring, constituent monitoring and/or sampling facilities. B. The location of the monitoring or metering facilities shall be subject to approval by the FOG Control Program Manager. C. Food Service Establishments may be required to provide immediate, clear, safe and uninterrupted access to the FOG Control Program Manager or inspectors to the Food Service Establishment's monitoring and metering facilities. D. Food Service Establishments may also be required by the FOG Control Program Manager to submit waste analysis plans, contingency plans, and meet other necessary requirements to ensure proper operation and WS&S-0XS:pj:##189145:08/06/ll4 22 maintenance of the grease control device or grease interceptor and compliance with this Ordinance. E. No Food Service Establishment shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the FOG Wastewater Discharge Permit. 4.5 REQUIREMENTS FOR BEST MANAGEMENT PRACTICES A. All Food Service Establishments shall implement best management practices in accordance with the requirements and guidelines established by the District under its FOG Control Program in an effort to minimize the discharge of FOG to the sewer system. B. All Food Service Establishments shall be required, at a minimum, to comply with the following Best Management Practices, when applicable: 1. Installation of drain screens. Drain screens shall be installed on all drainage pipes in food preparation areas. 2. Segregation and collection of waste cookinq oil. All waste cooking oil shall be collected and stored properly in recycling receptacles such as barrels or drums. Such recycling receptacles shall be maintained properly to ensure that they do not leak. Licensed wastehaulers or an approved recycling facility must be used to dispose of waste cooking oil. 3. Disposal of food waste. All food waste shall be disposed of directly into the trash or garbage, and not in sinks. Double- bagging food wastes that have the potential to leak in trash bins is highly recommended. 4. Employee training. Employees of the food service establishment shall be trained by ownership/management periodically as specified in the permit, on the following subjects: a) How to "dry wipe" pots, pans, dishware and work areas before washing to remove grease. b) How to properly dispose of food waste and solids in enclosed plastic bags prior to disposal in trash bins or containers to prevent leaking and odors. c) The location and use of absorption products to clean under fryer baskets and other locations where grease may be spilled or dripped. ws&s—0x5:pi:#7 H9745:08/u6/c4 23 d) How to properly dispose of grease or oils from cooking equipment into a grease receptacle such as a barrel or drum without spilling. Training shall be documented and employee signatures retained indicating each employee's attendance and understanding of the practices reviewed. Training records shall be available for review at any reasonable time by the FOG Control Program Manager or an inspector. 5. Maintenance of kitchen exhaust filters. Filters shall be cleaned as frequently as necessary to be maintained in good operating condition. The wastewater generated from cleaning the exhaust filter shall be disposed properly. 6. Kitchen signage. Best management and waste minimization practices shall be posted conspicuously in the food preparation and dishwashing areas at all times. 4.6 GREASE INTERCEPTOR MAINTENANCE REQUIREMENTS A. Grease Interceptors shall be maintained in efficient operating condition by periodic removal of the full content of the interceptor which includes wastewater, accumulated FOG, floating materials, sludge and solids. B. All existing and newly installed grease interceptors shall be maintained in a manner consistent with a maintenance frequency approved by the FOG Control Program Manager pursuant to this section. C. No FOG that has accumulated in a grease interceptor shall be allowed to pass into any sewer lateral, sewer system, storm drain, or public right of way during maintenance activities. D. Food Service Establishments with grease interceptors may be required to submit data and information necessary to establish the maintenance frequency grease interceptors. E. The maintenance frequency for all Food Service Establishments with a grease interceptor shall be determined in one of the following methods: 1. Grease interceptors shall be fully pumped out and cleaned at a frequency such that the combined FOG and solids accumulation does not exceed 25% of the total design hydraulic depth of the grease interceptor. This is to ensure that the minimum hydraulic retention time and required available hydraulic volume is maintained to effectively intercept and retain FOG discharged to the sewer system. wS&S-OxS:pi:#189145:08/06/04 24 2. All Food Service Establishments with a Grease Interceptor shall maintain their grease interceptor not less than every 6 months. 3. Grease interceptors shall be fully pumped out and cleaned quarterly when the frequency described in (1) has not been established. The maintenance frequency shall be adjusted when sufficient data have been obtained to establish an average frequency based on the requirements described in (1) and guidelines adopted pursuant to the FOG Control Program. The District may change the maintenance frequency at any time to reflect changes in actual operating conditions in accordance with the FOG Control Program. Based on the actual generation of FOG from the Food Service Establishment, the maintenance frequency may increase or decrease. 4. The owner/operator of a Food Service Establishment may submit a request to the FOG Control Program Manager requesting a change in the maintenance frequency at any time. The Food Service Establishment has the burden of responsibility to demonstrate that the requested change in frequency reflects actual operating conditions based on the average FOG accumulation over time and meets the requirements described in (1), and that it is in full compliance with the conditions of its permit and this Ordinance. Upon determination by the FOG Control Program Manager that requested revision is justified, the permit shall be revised accordingly to reflect the change in maintenance frequency. 5. If the grease interceptor, at any time, contains FOG and solids accumulation that does not meet the requirements described in (1), the Food Service Establishment shall be required to have the grease interceptor serviced immediately such that all fats, oils, grease, sludge, and other materials are completely removed from the grease interceptor. If deemed necessary, the FOG Control Program Manager may also increase the maintenance frequency of the grease interceptor from the current frequency. F. Wastewater, accumulated FOG, floating materials, sludge/solids, and other materials removed from the grease interceptor shall be disposed off site properly by wastehaulers in accordance with federal, state and/or local laws. WS&S-0XS:pj:#189145:08/06/ll4 25 ARTICLE 5 - MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS 5.1 MONITORING AND REPORTING CONDITIONS A. Monitoring for Compliance with Permit Conditions and Reporting Requirements 1. The FOG Control Program Manager may require periodic reporting of the status of implementation of Best Management Practices, in accordance with the FOG Control Program. 2. The FOG Control Program Manager may require visual monitoring at the sole expense of the Permittee to observe the actual conditions of the Food Service Establishment's sewer lateral and sewer lines downstream. 3. The FOG Control Program Manager may require reports for self-monitoring of wastewater constituents and FOG characteristics of the Permittee needed for determining compliance with any conditions or requirements as specified in the FOG Wastewater Discharge Permit or this Ordinance. Monitoring reports of the analyses of wastewater constituents and FOG characteristics shall be in a manner and form approved by the FOG Control Program Manager and shall be submitted upon request of the FOG Control Program Manager. Failure by the Permittee to perform any required monitoring, or to submit monitoring reports required by the FOG Control Program Manager constitutes a violation of this Ordinance and be cause for the District to initiate all necessary tasks and analyses to determine the wastewater constituents and FOG characteristics for compliance with any conditions and requirements specified in the FOG Wastewater Discharge Permit or in this Ordinance. The Permittee shall be responsible for any and all expenses of the District in undertaking such monitoring analyses and preparation of reports. 4. Other reports may be required such as compliance schedule progress reports, FOG control monitoring reports, and any other reports deemed reasonably appropriate by the FOG Control Program Manager to ensure compliance with this Ordinance. B. Record Keeping Requirements The Permittee shall be required to keep all manifests, receipts and invoices of all cleaning, maintenance, grease removal of/from the grease control device, disposal carrier and disposal site location for no less than two years. The Permittee shall, upon request, make the manifests, WS&S-OXS:pj:#1R91(5:08/05/(4 26 receipts and invoices available to any District representative, or inspector. These records may include: 1. A logbook of grease interceptor, grease trap or grease control device cleaning and maintenance practices. 2. A record of Best Management Practices being implemented including employee training. 3. Copies of records and manifests of wastehauling interceptor contents. 4. Records of sampling data and sludge height monitoring for FOG and solids accumulation in the grease interceptors. 5. Records of any spills and/or cleaning of the lateral or sewer system. 6. Any other information deemed appropriate by the FOG Control Program Manager to ensure compliance with this Ordinance. C. Falsifying Information or Tampering with Process It shall be unlawful to make any false statement, representation, record, report, plan or other document that is filed with the District, or to tamper with or knowingly render inoperable any grease control device, monitoring device or method or access point required under this Ordinance. 5.2 INSPECTION AND SAMPLING CONDITIONS A. The FOG Control Program Manager may inspect or order the inspection and sample the wastewater discharges of any Food Service Establishment to ascertain whether the intent of this Ordinance is being met and the Permittee is complying with all requirements. The Permittee shall allow the District access to the Food Service Establishment premises, during normal business hours, for purposes of inspecting the Food Service Establishment's grease control devices or interceptor, reviewing the manifests, receipts and invoices relating to the cleaning, maintenance and inspection of the grease control devices or interceptor. B. The FOG Control Program Manager shall have the right to place or order the placement on the Food Service Establishment's property or other locations as determined by the FOG Control Program Manager, such devices as are necessary to conduct sampling or metering operations. Where a Food Service Establishment has security measures in force, the Permittee shall make necessary arrangements so that representatives of the District shall be permitted to enter without delay for the purpose of performing their specific responsibilities. WS&S-OXS:pj:#"189"145:08/06/04 27 C. In order for the FOG Control Program Manager to determine the wastewater characteristics of the discharger for purposes of determining the annual use charge and for compliance with permit requirements, the Permittee shall make available for inspection and copying by the District all notices, monitoring reports, waste manifests, and records including, but not limited to, those related to wastewater generation, and wastewater disposal without restriction but subject to the confidentiality provision set forth in this Ordinance. All such records shall be kept by the Permittee a minimum of two (2) years. 5.3 RIGHT OF ENTRY Persons or occupants of premises where wastewater is created or discharged shall allow the FOG Control Program Manager, or District representatives, reasonable access to all parts of the wastewater generating and disposal facilities for the purposes of inspection and sampling during all times the discharger's facility is open, operating, or any other reasonable time. No person shall interfere with, delay, resist or refuse entrance to District representatives attempting to inspect any facility involved directly or indirectly with a discharge of wastewater to the District's sewer system. In the event of an emergency involving actual or imminent sanitary sewer overflow, District's representatives may access adjoining businesses or properties which share a sewer system with a Food Service Establishment in order to prevent or remediate an actual or imminent sanitary overflow. 5.4 NOTIFICATION OF SPILL A. In the event a permittee is unable to comply with any permit condition due to a breakdown of equipment, accidents, or human error or the Permittee has reasonable opportunity to know that his/her/its discharge will exceed the discharge provisions of the FOG Wastewater Discharge Permit or this Ordinance, the discharger shall immediately notify the District by telephone at the number specified in the Permit. If the material discharged to the sewer has the potential to cause or result in sewer blockages or SSOs, the discharger shall immediately notify the local Health Department, City or County, and the District. B. Confirmation of this notification shall be made in writing to the FOG Control Program Manager at the address specified in the Permit no later than five (5) working days from the date of the incident. The written notification shall state the date of the incident, the reasons for the discharge or spill, what steps were taken to immediately correct the problem, and what steps are being taken to prevent the problem from recurring. C. Such notification shall not relieve the Permittee of any expense, loss, damage or other liability which may be incurred as a result of damage or loss to the District or any other damage or loss to person or property; nor shall such notification relieve the Permittee of any fees or other liability which may be imposed by this Ordinance or other applicable law. WS&S-0XS:pj:##189145:08/06/(9 28 5.5 NOTIFICATION OF PLANNED CHANGES Permittee shall notify the District at least 60 days in advance prior to any facility expansion/remodeling, or process modifications that may result in new or substantially increased FOG discharges or a change in the nature of the discharge. Permittee shall notify the District in writing of the proposed expansion or remodeling and shall submit any information requested by the District for evaluation of the effect of such expansion on Permittee's FOG discharge to the sewer system. WS&S-0XS:pj:#'189145:08/06/(9 29 ARTICLE 6 - ENFORCEMENT 6.1 PURPOSES AND SCOPE A. The Board of Directors finds that in order for the District to comply with the laws, regulations, and rules imposed upon it by Regulatory Agencies and to ensure that the District's sewer facilities are protected and are able to operate with the highest degree of efficiency, and to protect the public health and environment, specific enforcement provisions must be adopted to govern the discharges to the District's system by Food Service Establishments. B. To ensure that all interested parties are afforded due process of law and that violations are resolved as soon as possible, the general policy of the District is that: 1. Any determination relating to a notice of violation and Compliance Schedule Agreement (CSA) will be made by the FOG Control Program Manager, with a right of appeal by the permittee to the General Manager pursuant to the procedures set forth in Section 6.12. 2. A permittee, or applicant for a permit may request the Board of Directors of the District to hear an appeal of the General Manager's decision pursuant to Section 6.13. Such request may be granted or denied by the Board of Directors. 3. Any permit suspension or revocation recommended by the FOG Control Program Manager will be heard and a recommendation made to the General Manager or other person designated by the General Manager with a right of appeal of the General Manager's order by the permittee to the Board of Directors pursuant to the provisions of Section 6.13. C. The District, at its discretion, may utilize any one, combination, or all enforcement remedies provided in Article 6 in response to any permit or Ordinance violations. 6.2 DETERMINATION OF NONCOMPLIANCE WITH FOG WASTEWATER DISCHARGE PERMIT CONDITIONS A. Inspection Procedures 1. Inspection of Food Service Establishments shall be conducted in the time, place, manner, and frequency determined at the sole discretion of the FOG Control Program Manager. 2. Noncompliance with Best Management Practices, 25% Rule for grease interceptors, maintenance frequency requirements for WS&S-Oxs:pi:4189145:08/06/04 30 grease interceptors, permit discharge conditions, or any discharge provisions of this Ordinance may be determined by an inspection of the Food Service Establishment. B. Sampling Procedures 1. Sampling of Food Service Establishments shall be conducted in the time, place, manner, and frequency determined at the sole discretion of the District. 2. Non-compliance with mass emission rate limits, concentration limits, permit discharge conditions, or any discharge provision of this Ordinance may be determined by an analysis of a grab or composite sample of the effluent of a user. Non-compliance with mass emission rate limits shall be determined by an analysis of a composite sample of the user's effluent, except that a grab sample may be used to determine compliance with mass emission rate limits when the discharge is from a closed (batch) treatment system in which there is no wastewater flow into the system when the discharge is occurring, the volume of wastewater contained in the batch system is known, the time interval of discharge is known, and the grab sample is homogeneous and representative of the discharge. 3. Any sample taken from a sample point is considered to be representative of the discharge to the public sewer. C. Noncompliance Fees Any permittee determined to be in noncompliance with the terms and conditions specified in its permit or with any provision of this Ordinance shall pay a noncompliance fee. The purpose of the noncompliance fee is to compensate the District for costs of additional inspection and follow-up, sampling, monitoring, laboratory analysis, treatment, disposal, and administrative processing incurred as a result of the noncompliance, and shall be in addition to and not in lieu of any penalties as may be assessed pursuant to Sections 6.10 and 6.11. Noncompliance fees shall be in the amount adopted by ordinance or resolution by the District's Board of Directors. 6.3 COMPLIANCE SCHEDULE AGREEMENT (CSA) A. Upon determination that a permittee is in noncompliance with the terms and conditions specified in its permit or any provision of this Ordinance, or needs to construct and/or acquire and install a grease control device or grease interceptor, the FOG Control Program Manager may require the permittee to enter into a CSA. B. The issuance of a CSA may contain terms and conditions including but not limited to requirements for installation of a grease control device, WS&S-0XS:pj:#189145:08/05/04 31 grease interceptor and facilities, submittal of drawings or reports, audit of waste hauling records, best management and waste minimization practices, payment of fees, or other provisions to ensure compliance with this Ordinance. C. The FOG Control Program Manager shall not enter into a CSA until such time as all amounts owed to the District, including user fees, noncompliance sampling fees, or other amounts due are paid in full, or an agreement for deferred payment secured by collateral or a third party, is approved by the FOG Control Program Manager. D. If compliance is not achieved in accordance with the terms and conditions of a CSA during its term, the FOG Control Program Manager may issue an order suspending or revoking the discharge permit pursuant to Section 6.4 or 6.5 of this Ordinance. 6.4 PERMIT SUSPENSION A. The General Manager may suspend any permit when it is determined that a permittee: 1. Fails to comply with the terms and conditions of a CSA order. 2. Knowingly provides a false statement, representation, record, report, or other document to the District. 3. Refuses to provide records, reports, plans, or other documents required by the District to determine permit terms or conditions, discharge compliance, or compliance with this Ordinance. 4. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 5. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 6. Does not make timely payment of all amounts owed to the District for user charges, permit fees, or any other fees imposed pursuant to this Ordinance. 7. Causes interference, sewer blockages, or SSOs with the District's collection, treatment, or disposal system. 8. Violates grease interceptor maintenance requirements, any condition or limit of its discharge permit or any provision of the District's Ordinance. B. When the FOG Control Program Manager has reason to believe that grounds exist for permit suspension, he/she shall give written notice thereof by certified mail to the permittee setting forth a statement of the facts and grounds deemed to exist, together with the time and place ws&s-0xs:Fi:#189145:08/06/(9 32 where the charges shall be heard by the General Manager or his/her designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the suspension hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the District's General Counsel. 2. If the General Manager designated a hearing officer, after the conclusion of the hearing, the hearing officer shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 3. Upon receipt of the written report of a hearing officer or conclusion of the hearing, if the General Manager conducted the hearing, the General Manager shall make his/her determination and should he/she find that grounds exist for suspension of the permit, he/she shall issue his/her decision and order in writing within thirty (30) calendar days after the conclusion of the hearing. The written decision and order of the General Manager shall be sent by certified mail to the permittee or its legal counsel/representative at the permittee's business address. C. Effect 1. Upon an order of suspension by the General Manager becoming final, the permittee shall immediately cease and desist its discharge and shall have no right to discharge any wastewater containing FOG directly or indirectly to the District's system for the duration of the suspension. All costs for physically terminating and reinstating service shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of suspension. 3. An order of permit suspension issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Board of Directors of the District pursuant to Section 6.13. no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 6.5 PERMIT REVOCATION A. The General Manager may revoke any permit when it is determined that a permittee: WS&S-OXS:pj:#189145:08/06/04 33 1. Knowingly provides a false statement, representation, record, report, or other document to the District. 2. Refuses to provide records, reports, plans, or other documents required by the District to determine permit terms, conditions, discharge compliance, or compliance with this Ordinance. 3. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 4. Fails to comply with the terms and conditions of permit suspension or CSA. 5. Discharges effluent to the District's sewer system while its permit is suspended. 6. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 7. Does not make timely payment of all amounts owed to the District for user charges, permit fees, or any other fees imposed pursuant to this Ordinance. 8. Causes interference, sewer blockages, or SSOs with the District collection, treatment, or disposal system. 9. Violates grease interceptor maintenance requirements, any condition or limit of its discharge permit or any provision of the District's Ordinance. B. Approval. When the FOG Control Program Manager has reason to believe that grounds exist for the revocation of a permit, he/she shall give written notice by certified mail thereof to the permittee setting forth a statement of the facts and grounds deemed to exist together with the time and place where the charges shall be heard by the General Manager or his/her designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The revocation hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the District's General Counsel. 2. If the General Manager designated a hearing officer, after the conclusion of the hearing, the hearing officer shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. WS&S-OXS:pj:#189145:08/06/04 34 3. Upon receipt of the written report by the hearing officer, or conclusion of the hearing, if the General Manager conducted the hearing, the General Manager shall make his/her determination and should he/she find that grounds exist for permanent revocation of the permit, he/she shall issue his/her decision and order in writing within thirty (30) calendar days after the conclusion of the hearing. The written decision and order of the General Manager shall be sent by certified mail to the permittee or its legal counsel/representative at the permittee's business address. In the event the General Manager determines to not revoke the permit, he/she may order other enforcement actions, including, but not limited to, a temporary suspension of the permit, under terms and conditions that he/she deems appropriate. C. Effect 1. Upon an order of revocation by the General Manager becoming final, the permittee shall permanently lose all rights to discharge any wastewater containing FOG directly or indirectly to the District's system. All costs for physical termination shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of revocation. 3. Any future application for a permit at any location within the District by any person associated with an order of revocation will be considered by the District after fully reviewing the records of the revoked permit, which records may be the basis for denial of a new permit. 4. An order of permit revocation issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Board of Directors pursuant to Section 6.13 no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 6.6 DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS A. Any person who discharges any waste which causes or contributes to any sewer blockage, SSOs, obstruction, interference, damage, or any other impairment to the District's sewer facilities or to the operation of those facilities shall be liable for all costs required to clean or repair the facilities together with expenses incurred by the District to resume normal operations. A service charge of twenty-five percent (25%) of District's costs shall be added to the costs and charges to reimburse the District for miscellaneous overhead, including administrative personnel and record keeping. The total amount shall be payable within forty five (45) days of invoicing by the District. WS&S-0XS:pj:#1891 15:08/0h/04 35 B. Any person who discharges a waste which causes or contributes to the District violating its discharge requirements established by any Regulatory Agency incurring additional expenses or suffering losses or damage to the facilities, shall be liable for any costs or expenses incurred by the District, including regulatory fines, penalties, and assessments made by other agencies or a court. 6.7 PUBLIC NUISANCE Discharge of wastewater in any manner in violation of this Ordinance or of any order issued by the FOG Control Program Manager or General Manager, as authorized by this Ordinance, is hereby declared a public nuisance and shall be corrected or abated as directed by the FOG Control Program Manager or General Manager. Any person creating a public nuisance is guilty of a misdemeanor. 6.8 TERMINATION OF SERVICE A. The District, by order of the General Manager, may physically terminate sewer service to any property as follows: 1. On a term of any order of suspension or revocation of a permit; or 2. Upon the failure of a person not holding a valid FOG Wastewater Discharge Permit to immediately cease the discharge, whether direct or indirect, to the District's sewer facilities after the notice and process in Section 6.5 herein. B. All costs for physical termination shall be paid by the owner or operator of the Food Service Establishment or permittee as well as all costs for reinstating service. 6.9 EMERGENCY SUSPENSION ORDER A. The District may, by order of the General Manager, suspend sewer service when the General Manager determines that such suspension is necessary in order to stop an actual or impending discharge which presents or may present an imminent or substantial endangerment to the health and welfare of persons, or to the environment, or may cause SSOs, sewer blockages, interference to the District's sewer facilities, or may cause the District to violate any State or Federal Law or Regulation. Any discharger notified of and subject to an Emergency Suspension Order shall immediately cease and desist the discharge of all wastewater containing FOG to the sewer system. B. As soon as reasonably practicable following the issuance of an Emergency Suspension Order, but in no event more than five (5) business days following the issuance of such order, the General Manager shall hold a hearing to provide the Food Service Establishment or Permittee the opportunity to present information in opposition to the issuance of the Emergency Suspension Order. Such a hearing shall not ws&s-0xs:pi:#I89145:08/06/04 36 stay the effect of the Emergency Suspension Order. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the District's General Counsel. The General Manager shall issue a written decision and order within two (2) business days following the hearing, which decision shall be sent by certified mail to the Food Service Establishment or its legal counsel/representative at that Food Service Establishment's business address. The decision of the General Manager following the hearing shall be final and not appealable to the Board, but may be subject to judicial review pursuant to Section 6.16. 6.10 CIVIL PENALTIES A. All users of the District's system and facilities are subject to enforcement actions administratively or judicially by the District, U.S. EPA, State of California Regional Water Quality Control Board, the County of Orange or District Attorney. Said actions may be taken pursuant to the authority and provisions of several laws, including but not limited to: (1) Federal Water Pollution Control Act, commonly known as the Clean Water Act (33 U.S.C.A. Section 1251 et seq.); (2) California Porter-Cologne Water Quality Control Act (California Water Code Section 13000 et seq.); (3) California Hazardous Waste Control Law (California Health & Safety Code Sections 25100 to 25250); (4) Resource Conservation and Recovery Act of 1976 (42 U.S.C.A Section 6901 et seq.); and (5) California Government Code, Sections 54739-54740. B. In the event the District is subject to the payment of fines or penalties pursuant to the legal authority and actions of other regulatory or enforcement agencies based on a violation of law or regulation or its permits, and said violation can be established by the District, as caused by the discharge of any user of the District's system which is in violation of any provision of the District's Ordinance or the user's permit, the District shall be entitled to recover from the user all costs and expenses, including, but not limited to, the full amount of said fines or penalties to which it has been subjected. C. Pursuant to the authority of California Government Code Sections 54739 - 54740, any person who violates any provision of this Ordinance; any permit condition, prohibition or effluent limit; or any suspension or revocation order shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. Pursuant to the authority of the Clean Water Act, 33 U.S.C. Section 1251 et seq., any person who violates any provision of this Ordinance, or any permit condition, prohibition, or effluent limit shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. The General Counsel of the District, upon request of the General Manager, shall petition the Superior Court to impose, assess, and recover such penalties, or such other penalties as the District may impose, assess, and recover pursuant to Federal and/or State legislative authorization. WS&S-OXS:pj:#1891-45:08/06/0-4 37 D. Administrative Civil Penalties 1. Pursuant to the authority of California Government Code Sections 54740.5 and 54740.6, the District may issue an administrative complaint to any person who violates: a) any provision of this Ordinance; b) any permit condition, prohibition, or effluent limit; or c) any suspension or revocation order. 2. The administrative complaint shall be served by personal delivery or certified mail on the person and shall inform the person that a hearing will be conducted, and shall specify a hearing date within sixty (60) days following service. The administrative complaint will allege the act or failure to act that constitutes the violation of the District's regulations, the provisions of law authorizing civil liability to be imposed, and the proposed civil penalty. The matter shall be heard by the General Manager or his/her designee. The person to whom an administrative complaint has been issued may waive the right to a hearing, in which case a hearing will not be conducted. 3. At the hearing, the person shall have an opportunity to respond to the allegations set forth in the administrative complaint by presenting written or oral evidence. The hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the District's General Counsel. 4. If the General Manager designated a hearing officer, after the conclusion of the hearing, the hearing officer shall submit a written report to the General Manager setting forth a brief statement of the facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 5. Upon receipt of the written report by the hearing officer, or conclusion of the hearing if the General Manager conducted the hearing, the General Manager shall make his/her determination and should he/she find that grounds exist for assessment of a civil penalty against the person, he/she shall issue his/her decision and order in writing within thirty (30) calendar days after the conclusion of the hearing . 6. If, after the hearing or appeal, if any, it is found that the person has violated reporting or discharge requirements, the General Manager or Board of Directors may assess a civil penalty against that person. In determining the amount of the civil penalty, the General Manager or Board of Directors may take into consideration all relevant circumstances, including but not limited to the extent of harm caused by the violation, the economic benefit WS&S-0XS:pj:#189145:08/06/04 38 derived through any non-compliance, the nature and persistence of the violation, the length of time over which the violation occurs, and corrective action, if any, attempted or taken by the person involved. 7. Civil penalties may be assessed as follows: a) In an amount which shall not exceed two thousand dollars ($2,000.00) for each day for failing or refusing to furnish required reports; b) In an amount which shall not exceed three thousand dollars ($3,000.00) for each day for failing or refusing to timely comply with any compliance schedules established by the District; c) In an amount which shall not exceed five thousand dollars ($5,000.00) per violation for each day of discharge in violation of any waste discharge limit, permit condition, or requirement issued, reissued, or adopted by the District; d) In any amount which does not exceed ten dollars ($10.00) per gallon for discharges in violation of any suspension, revocation, cease and desist order or other orders, or prohibition issued, reissued, or adopted by the District; 8. An order assessing administrative civil penalties issued by the General Manager shall be final in all respects on the thirty-first (31 st) day after it is served on the person unless an appeal and request for hearing is filed with the Board of Directors pursuant to Section 6.13 no later than the thirtieth (30th) day following such mailing. An order assessing administrative civil penalties issued by the Board of Directors shall be final upon issuance. 9. Copies of the administrative order shall be served on the party served with the administrative complaint, either by personal service or by registered mail to the person at his/her/its business or residence address, and upon other persons who appeared at the hearing and requested a copy of the order. 10. Any person aggrieved by a final order issued by the Board of Directors, after granting review of the order of the General Manager, may obtain review of the order of the Board of Directors in the superior court, pursuant to Government Code Section 54740.6, by filing in the court a petition for writ of mandate within thirty (30) days following the service of a copy of the decision or order issued by the Board of Directors. 11. Payment of any order setting administrative civil penalties shall be made within thirty (30) days of the date the order becomes final. w5&5-ox5:pi:#189145:08/06/W 39 The amount of any administrative civil penalties imposed shall constitute a debt to the District. 12. No administrative civil penalties shall be recoverable for any violation for which the District has recovered civil penalties through a judicial proceeding filed pursuant to Government Code Section 54740. 6.11 CRIMINAL PENALTIES Any person who violates any provision of this Ordinance is guilty of a misdemeanor, which upon conviction is punishable by a fine not to exceed $1,000.00, or imprisonment for not more than 6 months, or both. Each violation and each day in which a violation occurs may constitute a new and separate violation of this Ordinance and shall be subject to the penalties contained herein. 6.12 APPEALS TO GENERAL MANAGER A. Any Food Service Establishment, permit applicant or permittee affected by any decision, action or determination made by the FOG Control Program Manager or notice of violation issued by any District inspector may file with the General Manager a written request for an appeal hearing. The request must be received by the District within fifteen (15) days of mailing of notice of the decision, action, or determination of the FOG Control Program Manager to the appellant. The request for hearing shall set forth in detail all facts supporting the appellant's request. B. The General Manager shall, within fifteen (15) days of receiving the request for appeal, designate a Department Head or other person to hear the appeal and provide written notice to the appellant of the hearing date, time and place. The hearing date shall not be more than thirty (30) days from the mailing of such notice by certified mail to the appellant unless a later date is agreed to by the appellant. If the hearing is not held within said time due to actions or inactions of the appellant, then the staff decision shall be deemed final. C. At the hearing, the appellant shall have the opportunity to present information supporting its position concerning the FOG Control Program Manager's decision, action or determination. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the District's General Counsel. D. After the conclusion of the hearing, the Department Head (or other designee) shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation whether to uphold, modify or reverse the FOG Control Program Manager's original decision, action or determination. Upon receipt of the written report, the General Manager shall make his/her determination and shall issue his/her decision and order within thirty (30) calendar days of the hearing by his/her designee. The written decision and order of the General Manager ws&s-Oxs:pi:#1891 5:os/06/0w 40 shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. The order of the General/City Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the appellant unless a request for hearing is filed with the Board of Directors pursuant to Section 6.13, no later than 5:00 p.m. on the fifteenth day following such mailing. 6.13 APPEALS TO THE BOARD OF DIRECTORS A. Any Food Service Establishment, permit applicant, or permittee adversely affected by a decision, action, or determination made by the General Manager may, prior to the date that the General Manager's order becomes final, file a written request for hearing before the Board of Directors accompanied by an appeal fee in the amount established by a separate resolution of the District's Board of Directors. The request for hearing shall set forth in detail all the issues in dispute for which the appellant seeks determination and all facts supporting appellant's request. No later than sixty (60) days after receipt of the request for hearing, the Board of Directors shall either set the matter for a hearing, or deny the request for a hearing. A hearing shall be held by the Board of Directors within sixty-five (65) days from the date of determination granting a hearing, unless a later date is agreed to by the appellant and the Board of Directors. If the matter is not heard within the required time, due to actions or inactions of the appellant, the General Manager's order shall be deemed final. B. The Board of Directors shall grant all requests for a hearing on appeals concerning permit suspension, revocation, or denial. Whether to grant or deny the request for a hearing on appeals of other decisions of the General Manager shall be within the sole discretion of the Board of Directors. C. The appeal fee shall be refunded if the Board of Directors denies a hearing or reverses or modifies, in favor of the appellant, the order of the General Manager. The fee shall not be refunded if the Board of Directors denies the appeal. D. After the hearing, the Board of Directors shall make a determination whether to uphold, modify, or reverse the decision, action, or determination made by the General Manager. The decision of the Board of Directors shall be set forth in writing within sixty-five (65) days after the close of the hearing and shall contain a finding of the facts found to be true, the determination of issues presented, and the conclusions. The written decision and order of the Board of Directors shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. WS&S-OXS:pj:#1891.15:()8/06/04 41 r The order of the Board of Directors shall be final upon its adoption. In the event the Board of Directors fails to reverse or modify the General Manager's order, it shall be deemed affirmed. 6.14 PAYMENT OF CHARGES A. Except as otherwise provided, all fees, charges and penalties established by this Ordinance are due and payable upon receipt of notice thereof. All such amounts are delinquent if unpaid forty-five (45) days after date of invoice. B. Any charge that becomes delinquent shall have added to it a penalty in accordance with the following: 1. Forty-six (46) days after date of invoice, a basic penalty of ten percent (10%) of the base invoice amount, not to exceed a maximum of$1,000.00; and 2. A penalty of one and one-half percent (1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the forty-sixth (46th) day after date of invoice. C. Any invoice outstanding and unpaid after ninety (90) days shall be cause for immediate initiation of permit revocation proceedings or immediate suspension of the permit. D. Penalties charged under this Section shall not accrue to those invoices successfully appealed, provided the District receives written notification of said appeal prior to the payment due date. E. Payment of disputed charges is still required by the due date during District review of any appeal submitted by permittees. Collection of Delinquent Accounts Collection of delinquent accounts shall be in accordance with the District's policy resolution establishing procedures for collection of delinquent obligations owed to the District, as amended from time to time by the Board of Directors. Any such action for collection may include an application for an injunction to prevent repeated and recurring violations of this Ordinance. 6.15 FINANCIAL SECURITY/AMENDMENTS TO PERMIT A. Delinquent Accounts The District may require an amendment to the permit of any Permittee who fails to make payment in full of all fees and charges assessed by the District, including reconciliation amounts, delinquency penalties, and other costs or fees incurred by the Permittee. B. Bankruptcy WS&S-0X5:pi:#189145:08/06/04 42 Every Permittee filing any legal action in any court of competent jurisdiction, including the United States Bankruptcy Court, for purposes of discharging its financial debts or obligations or seeking court-ordered, protection from its creditors, shall, within ten (10) days of filing such action, apply for and obtain the issuance of an amendment to its permit. C. Security An amendment to a waste discharge permit issued, may be conditioned upon the Permittee depositing financial security in an amount equal to the average total fees and charges for two (2) calendar quarters during the preceding year. Said deposit shall be used to guarantee payment of all fees and charges incurred for future services and facilities furnished by District and shall not be used by the District to recover outstanding fees and charges incurred prior to the Permittee filing and receiving protection from creditors in the United States Bankruptcy Court. D. Return of Security In the event the Permittee makes payment in full within the time prescribed by this Ordinance of all fees and charges incurred over a period of two (2) years following the issuance of an amendment to the permit, the District shall either return the security deposit posted by the Permittee or credit their account. 6.16 JUDICIAL REVIEW A. Pursuant to Section 1094.6 of the California Code of Civil Procedure, the District hereby enacts this part to limit to ninety (90) days following final decisions in adjudicatory administrative hearings the time within which an action can be brought to review such decisions by means of administrative mandamus. B. Definitions As used in this Section, the following terms and words shall have the following meanings: 1. Decision shall mean and include adjudicatory administrative decisions that are made after hearing, or after revoking, suspending, or denying an application for a permit. 2. Complete Record shall mean and include the transcript, if any exists, of the proceedings, all pleadings, all notices and orders, any proposed decision by the District's officers, agents, or employees, the final decision, all admitted exhibits, all rejected exhibits in the possession of the District or its officers, agents or employees, all written evidence, and any other papers in the case. C. Time Limit for Judicial Review. Judicial review of any decision of the District or its officer or agent may be made pursuant to Section 1094.5 of WS&S-OXS:pj:#189145:08/06/04 43 the Code of Civil Procedure only if the petition for writ of mandate is filed not later than the ninetieth (9Oth) day following the date on which the decision becomes final. If there is no provision for reconsideration in the procedures governing the proceedings or if the date is not otherwise specified, the decision is final on the date it is made. If there is provision for reconsideration, the decision is final upon the expiration of the period during which such reconsideration can be sought; provided that if reconsideration is sought pursuant to such provision the decision is final for the purposes of this Section on the date that reconsideration is rejected. D. The complete record of the proceedings shall be prepared by the District officer or agent who made the decision and shall be delivered to the petitioner within ninety (90) days after he/she has filed written request therefor. The District may recover from the petitioner its actual costs for transcribing or otherwise preparing the record. E. If the petitioner files a request for the record within ten (10) days after the date the decision becomes final, the time within which a petition, pursuant to Section 1094.5 of the Code of Civil Procedure, may be filed shall be extended to not later than the thirtieth (3Oth) day following the date on which the record is either personally delivered or mailed to the petitioner or the petitioner's attorney of record, if appropriate. F. In making a final decision, the District shall provide notice to the party that Section 1094.6 of the Code of Civil Procedure governs the time within which judicial review must be sought. G. Notwithstanding the foregoing in this Section 6.16, and pursuant to Government Code Section 54740.6, judicial review of an order of the Board of Directors imposing administrative civil penalties pursuant to Section 6.10.D may be made only if the petition for writ of mandate is filed not later than the thirtieth (30th) day following the day on which the order of the Board of Directors becomes final. WS&S-OX5:pj:#189145:08/06/04 44 1• ARTICLE 7 - SEVERABILITY If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such invalidity shall not affect the validity of this entire Ordinance or any of the remaining portions hereof. The Board of Directors hereby declares that it would have passed this Ordinance, and each section, subsection, subdivision, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sees, clauses or phrases be declared unconstitutional or otherwise invalid. ARTICLE 8 - CALIFORNIA BUILDING STANDARDS LAW FINDINGS Pursuant to the provisions of the California Building Standards Law, California Health and Safety Code §§ 18941.5, 17958, 17958.5 and 17958.7, the Board hereby finds that the amendments to the State Building Standards and Housing Laws, more particularly the California Plumbing Code, adopted herein are necessary because of climatic, geological or topographical conditions of property in the District's jurisdiction, and as more specifically described below. A. Articles 2 and 4 modify the authority and discretion of the "Administrative Authority" of Section 1014.1 of the 2001 California Plumbing Code by requiring all Food Service Establishments to install and operate a grease control device, which may be a grease interceptor or grease trap, if no other device, mechanism, or process is found to successfully trap or collect or treat FOG prior to it being discharged into the sewer system. B. Article 4 modifies the general maintenance requirements for grease interceptors of Section 1014.6 of the 2001 California Plumbing Code and establishes more specific maintenance requirements. FINDINGS FOR "A" AND "B": The District's topography and geography that has created the Santa Ana Watershed and the District's proximity to the Pacific Ocean coupled with the general waste discharge requirements imposed by the RWQCB require the strict compliance with grease control device regulations to prevent sewer system overflows that threaten the health and safety of the public within the immediate vicinity of the overflow and downstream to the local beaches. C. ADMINISTRATIVE-PROCEDURAL AMENDMENTS. Additional amendments and deletions to the California Plumbing Code are found to be administrative or procedural and are found to be reasonable and necessary to safeguard life and property within the District. w5&5-0x5:pi:#189145:08/06/04 45 7 ARTICLE 9 - FILING WITH CALIFORNIA BUILDING STANDARDS COMMISSION A copy of this Ordinance shall be filed with the California Building Standards Commission and the California Department of Housing and Community Development by the Secretary of the Board as required by State law (Health & Safety Code Section 17958.7). ARTICLE 10 - EFFECTIVE DATE This Ordinance shall take effect immediately upon its adoption and a summary shall be published in a newspaper of general circulation as provided by law. PASSED AND ADOPTED by the Board of Directors of Orange County Sanitation District this day of 2004. Chair, Board of Directors Orange County Sanitation District Attest: Secretary of the Board of Directors Orange County Sanitation District Thomas L. Woodruff, General Counsel Orange County Sanitation District H:\dept\agenda\Board Agenda Reports\2004 Board Agenda Reports\1004\Item 16.FOG Ordinance-Aft 1.doc ws&s-Oxs:pi:#1 R9145:08/06/cu 46 V�JNjV SANI>gT/Oy = 9 c '•�' C Cf ,+.i.l."`F ��••_ ��7 .. •t Fcl/NG 7HE ENv\Po� L - 1 � .1 � -- � 'l u�¢♦ ��1i � • _iris" •� � �r ��• � �t I •.♦ \ OCSD 1954-2004 Proudly Protecting the Environment for 50 Years OrangeFirst Quarter Ended September 30 , 2004 County Sanitation District, California Ved Table of Contents Section 1 - Overview........................ 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 du, Comparison of Expenses by Department..............................................................................3 Summary of Expenses by Major Category..................................................... Summary of Joint Operating Revenues by Line Item............................................................5 Summary of 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 ON Summary of Capital Improvement Construction Requirements - Project Life........................6 Section 4 - Budget Review by Revenue Area Summary Budget Reviews -All Revenue Areas ...................................................................1 1!0 Consolidated Revenue Area Budget Review.........................................................................2 Revenue Area No. 14 Budget Review ..................................................................................3 Section 5—Self Insurance Budget Review General Liability and Property Fund Budget Review.............................................................1 Workers' Compensation Fund Budget Review......................................................................2 i� FY 2004-05 First Quarter Report r r� This Page Intentionally Left Blank L4 Overview First Quarter Financial Report September 30,.2004 The Finance Department is pleased to present the FY 2004-05 first quarter l comprehensive financial report. This report provides the Directors, staff, and the general public with a 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 �J contained within this report is provided below. Joint Operating Budget Review: At September 30, 2004, 22.01 percent, or$18.41 million of the FY 2004-05 net joint operating budget of $83.61 million has been expended. Net operating expenses decreased by $403,000 from the same period last year. Total joint operating expenses are $19.36 million after cost allocation to revenue t' areas and capital improvement projects, and are essentially the same as at September 30, 2003, with a variance of only 0.58 percent. r•i The total cost per million gallons at September 30, 2004, is $844.60 based on flows of 21.79 billion gallons, or 236.88 million gallons per day. This is $71.72, or 7.83 percent less than the budgeted cost per million gallons of $916.32. This lower cost per million ,..► gallons is primarily due to net expenses being 11.95 percent less than the proportionate budget through September 30, 2004. This is somewhat offset by flows being 5.25 percent lower than the budgeted 250 million gallons per day. ask Some of the significant joint operating results as of September 30, 2004 include: Salaries, Wages and Benefits— Overall, personnel costs are near to being on target at 22.57 percent of budget through September 30, while staffing is 51 full-time equivalents (FTE's), or 8.11 percent below the total 629 FTE's approved in the �. 2004-05 budget. Net joint operating personnel costs are expected to approximate budget throughout the remainder of the year. Memberships— Membership expense totaled $144,200, or 48.88 percent of the • $295,010 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 budget at year-end. • Training & Meetings—As of September 30, training and meetings costs totaled $156,700, or 15.63 percent of the $1,002,760 budget. These costs are proportionately low through the first quarter because many of the training programs are in the development stage. Training and meeting expenses are expected to increase throughout the remainder of the year and are projected to approximate budget at year-end. b Section 1 - Page 1 FY 2004-05 First Quarter Report �1. This Page Intentionally Left Blank �1 l I . W 4 � Section 1 - Page 6 .eJ Overview First Quarter Financial Report September 30,.2004 The Finance Department is pleased to present the FY 2004-05 first quarter comprehensive financial report. This report provides the Directors, staff, and the general public with a 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. Joint Operating Budget Review: At September 30, 2004, 22.01 percent, or$18.41 million of the FY 2004-05 net joint operating budget of $83.61 million has been expended. Net operating expenses decreased by $403,000 from the same period last year. Total joint operating expenses are $19.36 million after cost allocation to revenue areas and capital improvement projects, and are essentially the same as at September 30, 2003, with a variance of only 0.58 percent. The total cost per million gallons at September 30, 2004, is $844.60 based on flows of 21.79 billion gallons, or 236.88 million gallons per day. This is $71.72, or 7.83 percent less than the budgeted cost per million gallons of $916.32. This lower cost per million •r gallons is primarily due to net expenses being 11.95 percent less than the proportionate budget through September 30, 2004. This is somewhat offset by flows being 5.25 percent lower than the budgeted 250 million gallons per day. Some of the significant joint operating results as of September 30, 2004 include: • Salaries, Wades and Benefits—Overall, personnel costs are near to being on target at 22.57 percent of budget through September 30, while staffing is 51 full-time equivalents (FTE's), or 8.11 percent below the total 629 FTE's approved in the 2004-05 budget. Net joint operating personnel costs are expected to approximate budget throughout the remainder of the year. Memberships— Membership expense totaled $144,200, or 48.88 percent of the $295,010 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 budget at year-end. • Training & Meetings—As of September 30, training and meetings costs totaled $156,700, or 15.63 percent of the $1,002,760 budget. These costs are proportionately low through the first quarter because many of the training programs are in the development stage. Training and meeting expenses are expected to increase throughout the remainder of the year and are projected to approximate budget at year-end. Section 1 - Page 1 FY 2004-05 First Quarter Report • Operating Expenses—Overall operating expenses were near the proportionate budget through September 30 and totaled $3,311,200, or 23.83 percent of the composite $13,893,270 budget. Other than personnel costs, the operating expense category is the largest expense item in the operating budget, and chemicals comprise the majority of these operating expenses. Based on current processes, chemical costs are anticipated to parallel the budget throughout the remainder of the year and to be at or below budget at year-end. 6W • Contractual Services— Overall costs for contractual services were slightly lower than the proportionate budget through September 30 and totaled $2,816,200, or 22.97 percent of the composite $12,262,500. Solids removal costs comprise the majority of this expense category. Costs are anticipated to be at or below budget at year- end. • Professional Services— Overall professional services totaled $412,300, or 13.82 percent of the composite $2,984,130 budget. Legal and Audit & Accounting '•` categories are all higher than the proportionate budget through September 30, due to the timing of when the services are provided. The other professional services are all proportionately low through September 30 due to being in the planning stages. It W is anticipated that the overall costs for this category will increase in the second and third quarters of the fiscal year. ftw • Utilities— Utilities costs totaled $1,511,300, or 27.59 percent of the composite $5,476,950 budget. These costs are proportionately high through September 30 due to higher than anticipated costs for natural gas. However, it is anticipated that the overall utilities category will approximate budget at year-end. • Revenues—Through September 30, revenues totaled $956,300, or 31.88 percent of the $3,000,000 budget. The largest joint operating revenue is the Interdistrict Sewer ; Charge to the Santa Ana Watershed Protection Agency for treatment of flows. This revenue totaled $527,700 at September 30, or 32.98 percent of the $1,600,000 budgeted revenue, due to higher than anticipated discharges into the treatment system. i ` Section 1 - Page 2 1�:i Overview Comparison of First Quarter Cost per Million Gallon Results With Year-End Actuals (Budget) Last Five Years 91632 950 882 91 r1 84460 875 -123,82 800 13032 725 650 563.0:� r.r _ 575 512.78 523 53 473.76 500 425 00-01 01-02 02.03 03-04 04-05 .w 1st Year tsl Year 1st Year 1st Year 1st Annual OR end Qtr end Olr end Qtr end Qtr Budget As demonstrated in the preceding graph, the cost per million gallons at the end of the first quarter for each of the last four years has been between 6.7 percent and 9.5 percent of year-end totals. The cost comparison for the first quarter of 2004-05 is consistent with this trend when compared with this year's budget. Section 2 - Page 1 provides a graphical comparison of each Department's actual contribution towards the gallonage charge through the first quarter of FY 2004-05 and as budgeted for FY 2004-05. 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 through September 30 for the current and two prior years; Section 2 — Page 4 provides a summary of expenses by major category through September 30, 2004 and 2003; Section 2 — Page 5 provides a summary of joint operating revenues by line item through September 30, 2004 and 2003; Section 2 — pages 6 and 7 provide a summary of expenses by line item through September 30, 2004 and 2003; Section 2 — Page 8 provides a summary of expenses by treatment process through September 30, 2004 and 2003; Section 2 — Page 9 provides staffing trends over the last five years including total positions authorized, actual positions filled, and vacant positions. Section 1 - Page 3 FY 2004-05 First Quarter Report Capital Outlay Review: $250,000,000 ..� $200,000,000 S150,000,000 $100,000,000 S50,000,000 so 9/30/04 Actual Projected 2004-05 2004-05 Capital Outlay Capital Outlay Capital Outlay Cashflow Budget $46,071,300 $232,069.500 S231,223,600 �► As depicted by the preceding chart, Capital Outlay expenditures totaled $46,071,300 or 19.92 percent of the capital outlay cashflow budget for FY 2004-05 as of September 30, 2004. Costs are proportionately low through the first quarter as many projects are still in the design phase or have experienced various delays. Capital outlay costs are W. expected to be $232,069,500, approximately 100 percent of budget at 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. 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 project life. Budget Review by Revenue Areas: At September 30, 2004, revenues from all Revenue Areas totaled $19,706,000, or 10.17 percent of budget. Tax allocation and subvention revenue and Other User Fees comprise the largest part of the revenue .. budget and are at 11 .41 percent and 4.04 percent of the budget, respectively. These revenues are proportionately low through the first quarter because most of the property tax apportionment and user fee receipts are collected by the County through the property tax roll and are not distributed to the District until after the first quarter of each year. These revenues are anticipated to approximate budget at year-end. Capital Facilities Capacity Charges, budgeted at $11 .56 million, are at 6.52 percent of budget. These fees are proportionately low through the first quarter due to lower than anticipated building activity within the member cities. No current year sale of capacity rights has occurred as of September 30, 2004. Interest earnings, budgeted at $32.18 Section 1 - Page 4 Overview million, are at 21.15 percent of budget. Interest earnings are anticipated to approximate budget at year-end. ,.� Conversely, the capital assessment to the Irvine Ranch Water District, budgeted at $8.4 million is at 53.00 percent of the budget at September 30, 2004. By year-end, this assessment to the Irvine Ranch Water District is expected to exceed the budgeted amount by approximately$2.6 million. Expenses and outlays of all Revenue Areas totaled $86.52 million, or 22.81 percent of budget through the first quarter. The costs incurred related to capital improvement projects are proportionately low at $46.07 million or 19.92 percent of budget, as previously explained in the Capital Outlay Section. The overall costs of the Revenue Area programs are at 16.81 percent of the composite program budget of$22.61 million. These costs are proportionately low through the first quarter mainly because the grants paid to participating agencies are in the planning stages. The overall costs of the Revenue Area programs are anticipated to approximate budget by year-end. w As previously stated, joint works operating expenses of the Revenue Areas are at 22.01 percent of the budget, and are anticipated to approximate budget at year-end. The costs related to the District's outstanding Certificates of Participation are at 43.51 percent of budget because the annual principal payments are due during the first quarter of the fiscal year. Self-Insurance Budget Reviews: The District is self-insured for portions of workers' 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 ''W administration, and excess loss policies. The Self-Insurance Fund revenues totaled $450,700 or 24.40 percent of the $1,846,600 budget at September 30, while total expenses were $510,400 or 27.21 percent of the $1,876,000 budget. low MW Section 1 - Page 5 , FY 2004-05 First Quarter Report f This Page Intentionally Left Blank � r � 1 Section 1 - Page 6 w Joint Operating Budget Review Cost per Million Gallons by Department Budget and Actual September 30, 2004 r $750 $700 - $650 - $600 -I i $550 - $500 $450 $400 $350 $300 $250 $200 - - — - $150 � - — — $100 - 50 $$0 z - Executive Finance Human Technical Engineering Operations& Information Management Resources Services Maintenance Technology ■Budget ■Actual r. " Net Expenses by Major Category Budget and Actual (in thousands) September 30, 2004 $55,000 I� - $50,000 - - — - $45.000 $40,000 — - - - $35,000 - - _ .. $30,000 $25.000 $20.000 S15,000 S 10,000 $5,0$0 - - - -� 0 air'-' > ot$ O y CJ j y C N C d N > O 7 J � C - N �cc C N �. A C C ct7 C U U_ rj 2 ` t'J = C ✓J f9 C m n d a x v ¢ a:E aw ¢ m > a r a E < O U in n w ■Budget ■Actual Section 2 - Page 1 2004-05 First Quarter Report ) Summary of Expenses by Treatment Process ir1. For the Three Months Ended September 30, 2004 }j Increase Increase V Actual Actual (Decrease) (Decrease) 9/30104 9130103 $ % { Treatment Process: WL Preliminary Treatment $ 1,402,479 $ 1,224,904 $ 177,575 14.50% Primary Treatment 1,915,638 1,220,495 695,143 56.96% Secondary Treatment 1,341,989 2,119,011 (777,022) -36.67% S j Cryogenic Plant(Plant 2) 143,114 136,571 6,543 4.79% I�,L Effluent Disposal 130,304 225,360 (95,056) -42.18% (� Solids Handling 6,031,250 7.582,425 (1,551,175) -20.46% Cogeneration 2,611,296 1,984,630 626,666 31.58% Utilities 2,606,991 1,320,774 1,286,217 97.38% 1 Electrical Distribution 316,376 175,379 140,997 80.40% Miscellaneous Buildings 882,960 1,616,044 (733,084) -45.36% Air Quality 468,627 396,010 72,617 18.34% Laboratory 1,511,567 1,474,078 37,489 2.54% fL•tl Net Joint Operating Requirements 19,362,591 19,475,681 (113,090) -0.58% Less: Revenues (956,281) (666,483) (289,798) 43.48% Net Joint Operating Expenses $ 18,406,310 $ 18,809,198 $ (402,888) -2.14% del Vn1 4� J Section 2-Page 8 Joint Operating Budget Review Cost per Million Gallons by Department Budget and Actual September 30, 2004 $750 $700 • $650 - - - $600 - - $550 - - $500 w $450 - - $400 - $350 $300 - - - $250 - $200 - $10 $100 Ilt $$0 - Executive Finance Human Technical Engineering Operations& Information Management Resources Services Maintenance Technology IN Budget ■Actual Net Expenses by Major Category Budget and Actual (in thousands) September 30,2004 $55,000 $50,000 $45,000- $40,000 -I - R $35.000 $30.000 $25,000 - Yr $20,000 - S15,000 - - - — $10,000 . - - $5,OS0 0 N >CD .0 p `6 N C 0 6 y N °6 CD U N _N U O U7 N Of 01 W C 0 t C �tS _ ..r c9 O ro d lb C C f0 C U U O N ` N (9 = Cn C9 C C m ° m c 6 ai a s .Z N Z a0i E m CD ° �s o > d Fji Ow 0 (0 o � aN 0 aa� Q Cr Z E X a U ¢ ¢ m o ¢ a L a o Cz CI U cn E p m w IN Budget ■Actual '- Section 2- Page 1 2004-05 First Quarter Report Summary of Expenses by Line Item For the Three Months Ended September 30,2004 i - Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2004-05 9/30/04 9/30/04 Budget 9/30/03 $ % Salaries,Wages&Benefits Salaries&Wages $ 49,954,650 $ 11,375,563 22.77% $ 38,579,087 $ 9,998,919 $1,376,644 13.77% Employee Benefits Retirement 7,962,800 1,918,270 24.09% 6,044,530 1,142,003 776,267 67.970/6 Group Insurances 6,699,900 1,274,691 19.03% 5,425,209 1,262,994 11,697 0.93% Tuition&Certification Reimb 100,000 18,741 18.74% 81,259 10,739 8,002 74.51%. Uniform Rental 72,200 16,556 22.93% 55,644 18,844 (2,288) -12.14% Workers'Compensation 700,000 175,000 25.00% 525,000 249,999 ° Unemployment Insurance 11,800 5,110 43.31% 6,690 - 5,110 WA Total Benefits 15,546,700 3,408,368 21.92% 12,138,332 2,684,579 723,789 26.96% Salaries,Wages&Benefits 65,501,350 14,783,931 22.57% 50,717,419 12,683,498 2,100,433 16.560/6 Matl.Sunaly.&Services Administrative Expenses Memberships 295,010 144,214 48.88% 150,796 172,185 (27,971) -16.24% Office Exp-Supplies 151,250 26,650 17.62% 124,600 28,504 (1,854) -6.50% Office Expense-Other 94,200 24,187 25.68% 70,013 18,784 5,403 28.76% Small Computer Items 574,000 129,392 22.54% 444,608 49,919 79,473 159.20% Minor Furniture&Fixtures 176,100 17,221 9.780/6 158,879 48,769 (31,548) -64.69% Subtotal 1,290,560 341,664 26.47% 948,896 318,161 23,503 7.39% Printing&Publication � i Repro-In-House 297,700 47,120 15.83% 250,580 82,315 (35,195) -42.76% }„(_ Printing-Outside 61,350 12,724 20.74% 48,626 5,716 7,008 122.60% Notices&Ads 39,750 6,343 15.96% 33,407 11,530 (5,187) -44.99% Photo Processing 5,890 504 8.56% 5,386 2,214 (1,710) -77.24% j Subtotal 404,690 66,691 16.48% 337,999 101,775 (35,094) -34.47% Training&Meetings Meetings 287,460 44,723 15.56% 242,737 51,246 (6,523) -12.73% Training 715,300 112,020 15.66% 603,280 155,544 (43,524) -27.98% Subtotal 1,002,760 156,743 15.63% 846,017 206,790 (50,047) -24.20% Yi1 Operating Expenses Chemical Coagulants 4,935,200 1,038,862 21.05% 3,896,338 504,671 534,191 105.85% Sulfide Control - - WA - 736,466 (736,466) -100.000/0 Odor Control 1,549,000 333,430 21.53% 1,215,570 291,767 41,663 14.28% Disinfection 5,737,500 1,546,982 26.96% 4,190,518 1,306,971 240,011 18.36% Chemicals-Misc&Cogen 44,000 2,321 5.28'/° 41,679 7,878 (5,557) -70.54% Gasoline,Diesel&Oil 341,900 55,392 16.200/6 286,508 66,166 (10,774) -16.28% Tools 266,290 49,053 18.42% 217,237 35,970 13,083 36.37% Safety equipment/tools 249,650 34,137 13.67% 215,513 38,496 (4,359) -11.32% Solv,Paints&Jan.Supplies 67,380 22,250 33.02% 45,130 21,375 875 4.090/6 Lab Chemicals&Supplies 506,250 189,617 37.46% 316,633 164,697 24,920 15.130/6 . Other Operating Supplies 172,100 33,120 19.24% 138,980 48,644 (15,524) -31.91% Property Tax Fees 24,000 6,038 25.160/6 17,962 - 6,038 N/A Subtotal 13,893,270 3,311,202 23.83% 10,582,068 3,223,1 11 88,101 2.73% L Contractual Services Solids Removal 9,686,000 2,314,694 23.90% 7,371,306 2,518,307 (203,613) -8.09% Other Waste Disposal 617,000 139,440 22.60% 477,560 156,685 (17,245) -11.01% Groundskeeping 270.000 35,532 13.16% 234,468 42,223 (6,691) -15.85% Janitorial 350,000 80,355 22.960/6 269,645 52,470 27,B85 53.14% Outside Lab Services 238,000 22,438 9.43% 215,562 18,002 4,436 24.64% Oxygen Plant Oper 342,000 81,294 23.77% 260,706 105,117 (23,823) -22.66% Temporary Services 250,500 68,498 27.34% 182,002 107,910 (39,412) -36.52% Security Services 245,000 65,018 26.54% 179,982 49,362 15,656 31.72% Other 264,000 8,930 3.38% 255,070 30,92E (21,998) -71.13% Subtotal 12,262,500 2,816,199 22.97% 9,446,301 3,081,004 (264,805) -8.59% (Continued) Section 2 - Page 6 L Joint Operating Budget Review Cost per Million Gallons by Department Budget and Actual September 30, 2004 $750 l $700 $650 - - �' $600 — $550 - - - $500 --- -- ^ $450 $400 $350 r $300 $250 $200 $10 - $100 $30 Executive Finance Human Technical Engineering Operations& Information Management Resources Services Maintenance Technology IN Budget ■Actual Net Expenses by Major Category Budget and Actual (in thousands) September 30,2004 $55,000 $50,000 - -� $45,000 $40,000 $35,000 " $30,000 $25,000 $20,000 -- $15,000 $10.000 S5,0$$00 - -� - C] > N mC0 N 0 N OC V) C7 Ta C o!1 d tN ja p >II a) C o V CL a cc a)Ca wocn 2 a o Q r i CL O cn U E w IN Budget IN Actual Section 2 - Page 1 2004-05 First Quarter Report Summary of Expenses by Major Category For the Three Months Ended September 30, 2004 1 ! Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2004-05 9/30/04 9/30/03 $ %, Realized Budget i f Salary&Wages $49,954,650 $11,375,563 $ 9,998,919 $ 1,376,644 13.77% 22.77% $38,579,087 u Employee Benefits 15,546,700 3,408,368 2,684,579 723,789 26.96% 21.92% 12,138,332 Administrative Expenses 1,290,560 341,664 318,161 23,503 7.39% 26.47% 948,896 Printing&Publication 404,690 66,691 101,775 (35,084) -34,47% 16.48% 337,999 Training&Meetings 1,002,760 156,743 205,790 (50,047) -24.20% 15.63% 846,017 I�•!! Operating Expenses 13,893.270 3,311,202 3,223,101 88,101 2.73% 23.83% 10,582,068 Contractual Services 12,262,500 2,816,199 3,081,004 (264,805) -8.59% 22.97% 9,446.301 Professional Services 2,984,130 412,340 544,479 (132,139) -24.27% 13.82% 2,571,790 j Research&Monitoring 1,223,900 292,814 416,074 (123,260) -29.62% 23.92% 931,086 Repairs&Maintenance 7,353,250 1,907,812 1,791,111 116,701 6.52% 25.95% 5,445,438 Utilities 5,476,950 1,511,295 1,368,199 143,096 10.46% 27.59% 3,965,655 Other Materials,Supplies, �( and Services 1,300,420 198,753 339,040 (140,287) -41.38% 15.28% 1,101,667 Net Cost Allocation (26,079,640) (6,436,853) (4,597,551) (1,839,302) 40.01% 24.68% (19,642,787) Net J.O. Requirements 86,614,140 19,362,591 19,475,681 (113,090) -0.58% 22.36% 67,251,549 Revenues (3,000,000) (956,281) (666,483) (289,798) 43.48% 31.88% (2,043,719) 1 NetJ. O. Expenses $83,614,140 $18,406,310 $18,809,198 $ (402,888) -2.14% 22.01% $65,207,830 �f Gallonage Flow(MG) 91,250.00 21,793.00 22,831.79 (1,038.79) -4.55% Gallonage Flow(MGD) 250.00 236.88 248.17 (11.29) -4.55% Gallonage Flow($'s/MG) $916.32 $844.60 $823.82 $20.78 2.52% L I > Section 2- Page 4 Ii iv Joint Operating Budget Review Cost per Million Gallons by Department Budget and Actual y September 30,2004 $750 — $700 $650 $600 $550 $500 S450 $400 - $350 $300 $250 $200 S150 $100 r - 1 $ $0 =�-� - Executive Finance Human Technical Engineering Operations& Information Management Resources Services Maintenance Technology ■Budget IN Actual Net Expenses by Major Category Budget and Actual (in thousands) September 30, 2004 $55,000 ., $50,000 - $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000- $0 - —7,w— N V M CM _ y V O U - C ._ fJ > V V j C M C r C C `J C U V ` c9 = U) �J C n V m y .V O m � m `0 'Fa ? °C, a .E�2 CD .- ¢ Tw v O a D_ . a0� ¢ `9 E O U w ■Budget ■Actual Section 2 - Page 1 f 2004-05 First Quarter Report Summary of Expenses by Major Category ! For the Three Months Ended September 30,2004 Expense Expense Increase Increase Percent Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2004-05 9/30/04 9/30/03 $ % Realized Budget Salary&Wages $49,954,650 $11,375,563 $ 9,998.919 $ 1.376.644 13.77% 22.77% $38,579,087 Employee Benefits 15,546,700 3,408,368 2,684,579 723,789 26.96% 21.92% 12,138,332 Administrative Expenses 1,290,560 341,664 318,161 23,503 7.39% 26.47% 948,896 Printing&Publication 404,690 66,691 101,775 (35,084) -34.47% 16.48% 337,999 I� Training&Meetings 1,002,760 156,743 206,790 (50,047) -24.20% 15.63% 846,017 Operating Expenses 13,893,270 3,311,202 3.223,101 88,101 2.73% 23.83% 10,582,068 Contractual Services 12,262,500 2,816,199 3,081,004 (264,805) -8.59% 22.97% 9,446,301 Professional Services 2,984,130 412,340 544,479 (132,139) -24.27% 13.82% 2,571,790 Research&Monitoring 1,223,900 292,814 416,074 (123,260) -29.62% 23.92% 931,086 Repairs&Maintenance 7,353,250 1,907,812 1,791,111 116,701 6.52% 25.95% 5,445,438 Utilities 5,476,950 1,511,295 1,368,199 143,096 10.46% 27.59% 3,965,655 Other Materials,Supplies, and Services 1.300,420 198,753 339,040 (140,287) -41.38% 15.28% 1,101,667 Net Cost Allocation (26,079,640) (6,436,853) (4,597.551) (1,839,302) 40.01% 24.68% (19.642,787) Net J.O. Requirements 86,614,140 19,362,591 19,475,681 (113,090) -0.58% 22.360/6 67,251,549 Revenues (3,000,000) (956,281) (666,483) (289,798) 43.48% 31.88% (2,043,719) Net J.O. Expenses $83,614,140 $18,406,310 $18,809,198 $ (402,888) -2.14% 22.01% $65,207,830 Gallonage Flow(MG) 91,250.00 21,793.00 22,831.79 (1,038.79) 4.55% Gallonage Flow(MGD) 250.00 236.88 248.17 (11.29) -4.55% A i Gallonage Flow($'s/MG) $916.32 $844.60 $823.82 $20.78 2.52% 7 f n Section 2-Page 4 i Joint Operating Budget Review Cost per Million Gallons by Department Budget and Actual September 30, 2004 $750 .� $700 $650 $600 tQ $550 — $500 S450 $400 $350 $300 $250 $200 s $150 $100 - S� ®- Executive Finance Human Technical Engineering Operations& Information Management Resources Services Maintenance Technology ■Budget ■Actual Net Expenses by Major Category Budget and Actual (in thousands) September 30, 2004 $55.000 $50.000 S45,000 — —— $40,000 $35.000 $30,000 $20,000 $15,000 $10,000 00 ..r $5 OSO _y y —� — — — — N > N O m OI CP N O N C N cn at7 V m N U O O L > 3 c H c o m = c U7 m c °� y c c E z N CO, L° Z �^ 'Z a0 tG m ° a o > W E CLU L � � Q. w �0 Cn o n Q 2o m < m a < L a U rn E p w ■Budget ■Actual Section 2 - Page 1 r+ 2004-05 First Quarter Report V Divisional Contributions to Gallonage Charge For the Three Months Ended September 30, 2004-05 «�* 9/30102 9/30/03 Annual 9/30104 Actual Actual Budget Actual Flow In Million Gallons 22,071.26 22,831.79 91,250.00 21,793.00 Flow in Million Gallons per Day 239.91 248.17 250.00 236.88 71 General Manager's Department General Management Administration $ 17.08 $ 19.88 $ 16.48 $ 21.59 Administrative Services 9.04 8.64 9.06 5.79 Communications 6.56 6.33 9.58 9.69 Subtotal 32.68 34.85 35.12 37.07 -- Finance Department 14�* Finance Administration 12.98 11.68 3.99 3.47 Accounting 17.20 18.33 22.64 21.92 Purchasing&Warehouse 14.17 15.86 22.16 20.17 Subtotal 44.35 45.87 48.79 45.56 f" Human Resources Department Human Resources Administration 5.49 8.85 11.56 10.56 Employee Development/Training 2.22 5.23 12.40 8.62 Safety and Health 7.67 9.43 18.67 12.94 j Employee Services 5.32 6.41 8.24 6.39 Subtotal 20.70 29.92 50.87 38.51 Technical Services Department Technical Services Administration 11.30 8.74 12.75 14.92 Environmental Assessment 32.12 40.77 29.54 25.18 - Environmental Sciences Laboratory 46.60 48.42 57.62 58.32 Source Control 34.20 39.31 49.97 48.37 Environmental Compliance Services 15.98 16.51 31.43 28.36 Subtotal 140.20 153.75 181.31 175.15 Engineering Department Engineering Administration 6.10 4.26 5.44 5.28 Planning 9.78 14.00 18.92 17.39 _ Project Management Office 12.41 13.80 20.85 17.21 Engineering and Construction 50.88 53.59 71.64 65.39 Subtotal 79.17 85.65 116.85 105.27 Operations& Maintenance Department Operations& Maintenance Administration 4.98 5.00 7.30 7.27 O&M Process Engineering 15.14 16.03 24.95 20.68 Plant No. 1 Operations 102.94 147.91 154.89 151.44 Plant No. 2 Operations 153.19 203.84 214.34 213.56 Mechanical Maintenance&Power Production 102.83 133.52 135.25 150.90 Instrumentation&Electrical Maintenance 66.12 68.12 82.49 74.60 Collection Facilities Maintenance 17.93 22.26 63.62 28.84 Plant Facilities Maintenance 52.67 46.68 30.92 56.04 Subtotal 515.80 643.36 713.76 703.33 Information Technology Department Information Technology Administration 7.22 2.89 3.61 3.52 Customer& Network Support 19.54 27.11 45.34 38.59 Programing& Database 11,97 16.70 18.68 17.72 7 Process Ctrl Integration 14.25 14.27 20.67 19.12 Subtotal 52.98 60.97 88.30 78.95 Total Joint Operating Expenses 885.88 1,054.37 1,235.00 1,183.84 r Less: Cost Allocation (192.48) (201.36) (285.80) (295.36) I Net Joint Operating Requirements 693.40 853.01 949.20 888.48 Less: Revenues (32.15) (29.19) (32.88) (43,88) r Net Joint Operating Expenses $ 661.25 $ 823.82 $ 916.32 $ 844.60 r Section 2- Page 2 I Joint Operating Budget Review Comparison of Expenses by Department For the Three Months Ended September 30, AIN 2004-05 9130102 9130103 Year to Date Budget% Department and Division Actual Actual Budget 9/30104 Realized °p General Manager's Department General Management Administration $ 377,003 $ 453,992 $ 1,504,090 $ 470,514 31.28% Administrative Services 199,593 197,375 826,730 126,210 15.27% MR Communications 144,730 144,619 874,110 211,255 24.17% Subtotal 721,326 795,986 3,204,930 807,979 25.21% Finance Department Finance Administration 286,513 266,656 363,740 75,597 20.78% +�. Accounting 379,665 418,584 2,065,730 477,762 23.13% Purchasing&Warehouse 312,802 362,055 2,021,980 439,558 21.74% Subtotal 978,980 1,047,295 4,451,450 992,917 22.31% Human Resources Department Human Resources Administration 121,163 202,042 1,055,180 230,139 21.81% Employee Development/Training 48,937 119,350 1,131,300 187,935 16.61% Safety and Health 169,367 215,415 1,704,090 282,033 16.55% Employee Services 117,420 146,349 752,240 139,243 18.51% Subtotal 456,887 683,156 4,642,810 839,350 18.08% Technical Services Department Technical Services Administration 249,442 199,496 1,163,810 325,236 27.95% Environmental Assessment 708,835 930,760 2,695,670 548,738 20.36% Environmental Sciences Laboratory 1,028,453 1,105,518 5,258,100 1,270,914 24.17% Source Control 754,849 897,476 4,559,660 1,054,131 23.12% WA Environmental Compliance Services 352,722 376,858 2,868,440 617,951 21.54% Subtotal 3,094,301 3,510,108 16,545,680 3,816,970 23.07% Engineering Department 416 Engineering Administration 134,675 97,362 496,010 115,140 23.21% Planning 215,932 319,537 1,726,360 379,032 21.96% Project Management Office 273,840 315,161 1,902,650 374,961 19.71% Engineering and Construction 1,123,035 1,223,643 6,536,930 1,425,129 21.80% Subtotal 1,747,482 1,955,703 10,661,950 2,294,262 21.52% Operations&Maintenance Department Operations&Maintenance Administration 109,987 114,269 666,410 158,350 23.76% O&M Process Engineering 334,163 366,023 2,276,500 450,751 19.80% Plant No. 1 Operations 2,272.023 3,376,981 14,133,620 3,300,414 23.35% Plant No.2 Operations 3,380,836 4,653,737 19,557,240 4,654,143 23.80% Mechanical Maintenance&Power Production 2,269,675 3,048,528 12,341,330 3,288,488 26.65% .,� Instrumentation&Electrical Maintenance 1,459,365 1,555,201 7,526,940 1,625,766 21.60% Regional Assets&Services 395,814 508,192 5,805,570 628,509 10.83% Facilities Maintenance 1,162,544 1,065,728 2,821,480 1,221,181 43.28% Subtotal 11,384,407 14,688,659 65,129,090 15,327,602 23.53% Information Technology Department Information Technology Administration 159,256 66,096 329,000 76,618 23.29% Customer&Network Support 431,377 619,008 4,137,630 841,014 20.33% Programing&Database 264,139 381,310 1,704,830 386,158 22.65% Process Ctrl Integration 314,621 325.911 1.886,410 416,574 22.08% Subtotal 1,169,393 1,392,325 8,057,870 1,720,364 21.35% Aw Total Joint Operating Expenses 19,552,776 24,073,232 112,693,780 25,799,444 22.89% Less: Cost Allocation (4,248,469) (4,597,551) (26,079,640) (6,436,853) 24.68% Net Joint Operating Requirements 15.304,307 19,475,681 86,614,140 19,362,591 22-36% Less:Revenues (709,582) (666,483) (3,000,000) (956,281) 31.88% Net Joint Operating Expenses $ 14,594,725 $ 18,809,198 $ 83,614,140 $ 18,406,310 22.01% "'� Section 2-Page 3 2004-05 First Quarter Report Summary of Expenses by Major Category For the Three Months Ended September 30, 2004 sue+ Expense Expense Increase Increase Percent - Budget Through Through (Decrease) (Decrease) Budget Remaining Description 2004-05 9/30/04 9/30/03 $ %, Realized Budget ''^ i Salary&Wages $49,954,650 $11,375,563 $ 9,998,919 $ 1,376,644 13.77% 22.77% $38,579,087 Employee Benefits 15,546,700 3,408,368 2,684,579 723,789 26.96% 21.92% 12,138,332 + Administrative Expenses 1,290,560 341,664 318,161 23,503 7.39% 26.47% 948,896 Printing&Publication 404,690 66,691 101,775 (35,084) -34A7% 16.48% 337,999 Training&Meetings 1,002,760 156,743 206,790 (50,047) -24.20% 15.63% 846,017 Operating Expenses 13,893,270 3,311,202 3,223,101 88,101 2.73% 23.83% 10,582,068 Contractual Services 12,262,500 2,816,199 3,081,004 (264,805) -8.59% 22.97% 9,446,301 Professional Services 2,984,130 412,340 544,479 (132,139) -24.27% 13.82% 2,571,790 Research&Monitoring 1,223,900 292,814 416,074 (123,260) -29.62% 23.92% 931,086 Merl Repairs&Maintenance 7,353,250 1,907,812 1,791,111 116.701 6.52% 25.95% 5,445,438 Utilities 5,476,950 1,511,295 1,368,199 143,096 10.46% 27.59% 3,965,655 Other Materials,Supplies, and Services 1,300,420 198,753 339,040 (140,287) -41.38% 15.28% 1,101,667 prr Net Cost Allocation (26,079,640) (6,436,853) (4,597,551) (1,839,302) 40.01% 24.68% (19,642,787) Net J.O. Requirements 86,614,140 19,362,591 19,475,681 (113,090) -0.58% 22,36% 67,251,549 Revenues (3,000,000) (956,281) (666,483) (289,798) 43.48% 31.88% (2,043,719) Net J.O. Expenses $83,614,140 $18,406,310 $18,809,198 $ (402,888) -2.14%u 22.01% $65,207,830 r� Gallonage Flow(MG) 91,250.00 21,793.00 22,831.79 (1,038.79) -4.55% 1 Gallonage Flow(MGD) 250.00 236.88 248.17 (11.29) -4.55% pq Gallonage Flow($'s/MG) $916.32 $844.60 $823.82 $20.78 2.52% Pak r� r Section 2 -Page 4 pow% 04 Joint Operating Budget Review Summary of Joint Operating Revenues by Line Item For the Three Months Ended September 30, 2004 Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2004-06 9130/04 9130/04 Budget 9/30103 $ % Inter District Sewer Use $ 1,600,000 $ 527,700 32.98% $ 1,072,300 $ 400,833 $ 126,867 31.65% Wastehauler 500,000 141,268 28.25% 358,732 46,490 94,778 203.87% Sludge Disposal 620,000 174,300 28.11% 445,700 137,400 36,900 26.86% CNG Sales 130,000 17,025 13.10% 112,975 55,489 (38,464) -69.32% Other Sales - 42 N/A (42) 3,059 (3,017) -98.63% Rents&Leases 25,000 5,397 21.59% 19,603 5,257 140 2.66% .W General Non-Operating 50,000 40,145 80.29% 9,855 11,501 28,644 249.06% Power Sales 75,000 50,404 67.21% 24,596 6,454 43,950 680.97% Total $3,000,000 $ 956,281 31.88% $2,043,719 $ 666,483 $289,798 43.48% ail a� a.► ,m Section 2-Page 5 2004-05 First Quarter Report Summary of Expenses by Line Item For the Three Months Ended September 30,2004 Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2004-05 9/30/04 9130/04 Budget 9/30/03 $ % Salaries,Wages&Benefits_ Salaries&Wages $ 49,954,650 $ 11,375,563 22.77% $ 38,579,087 $ 9,998,919 $1,376,644 13.77% Employee Benefits Retirement 7,962,800 1,918,270 24.09% 6,044,530 1,142,003 776,267 67.97% Group Insurances 6,699,900 1,274,691 19.03% 5,425,209 1,262,994 11,697 0.93% Tuition&Certification Reimb 100,000 18,741 18.74% 81,259 10,739 8,002 74.51%. Uniform Rental 72,200 16,556 22.93% 55,644 18,844 (2,288) -12.14% - Workers'Compensation 700,000 175,000 25.00% 525,000 249,999 (74,999) -30.00% Unemployment Insurance 11,800 5,110 43.31% 6,690 - 5,110 N/A 1"^ Total Benefits 15,546,700 3,408,368 21.920/6 12,138,332 2,684,579 723,789 26.96% Salaries,Wages&Benefits 65,501,350 14,783,931 22.57% 50,717,419 12,693,498 2,100,433 16.560/6 Matl,Supply,&Services t`q Administrative Expenses Memberships 295,010 144,214 48.88% 150,796 172,185 (27,971) -16.24% Office Exp-Supplies 151,250 26,650 17.62% 124,600 28,504 (1,854) -6.50% Office Expense-Other 94,200 24,187 25.68% 70,013 18,784 5,403 28.76% t* Small Computer Items 574,000 129,392 22.54% 444,608 49,919 79,473 159.200/6 Minor Furniture&Fixtures 176,100 17,221 9.78% 158,879 48,769 (31,548) -64.69% Subtotal 1,290,560 341.664 26.47% 948,896 318,161 23,503 7.39% Printing&Publication Repro-In-House 297,700 47,120 15.83% 250,580 82,315 (35,195) -42.76% Printing-Outside 61,350 12,724 20.74% 48,626 5,716 7,008 122.60% Notices&Ads 39,750 6,343 15.96% 33,407 11,530 (5,187) -44.99% Photo Processing 5,890 504 8.56% 5,386 2,214 (1,710) -77.24% Subtotal 404,690 66,691 16.48% 337,999 101,775 (35,084) -34.47% Training&Meetings Meetings 287,460 44,723 15.56% 242,737 51,246 (6,523) -12.73% fat Training 715,300 112,020 15.66% 603,280 155,544 (43,524) -27.98% Subtotal 1,002,760 156,743 15.63% 846,017 206,790 (50,047) -24.200/6 Operating Expenses Chemical Coagulants 4,935,200 1,038,862 21.05% 3,896,338 504,671 534,191 105.85% 1"1 Sulfide Control - - WA - 736,466 (736,466) -100.00% Odor Control 1,549,000 333,430 21.53% 1.215,570 291,767 41,663 14.28% Disinfection 5,737,500 1,546,982 26.96% 4,190,518 1,306,971 240,011 18.361/6 Chemicals-Misc&Cogen 44,000 2,321 5.28% 41,679 7,878 (5,557) -70.54% Gasoline,Diesel&Oil 341,900 55,392 16.20% 286,508 66,166 (10,774) -16.28% Tools 266,290 49,053 18.42% 217,237 35,970 13.083 36.37% Safety equipment/tools 249,650 34,137 13.679/o 215,513 38,496 (4,359) -11.32% +„q Solv,Paints&Jan.Supplies 67,380 22,250 33.02% 45,130 21,375 875 4.09% Lab Chemicals&Supplies 506,250 189,617 37.46% 316,633 164,697 24,920 15.13% Other Operating Supplies 172,100 33,120 19.24% 138.980 48,644 (15,524) -31.91% Property Tax Fees 24,000 6,038 25.16% 17,962 - 6,038 N/A Subtotal 13,893,270 3,311,202 23.83% 10.582,068 3,223,101 88,101 2.73% Contractual Services Solids Removal 9,686,000 2,314,694 23.90% 7,371,306 2,518,307 (203,613) -8.09% Other Waste Disposal 617,000 139,440 22.600/a 477,560 156,685 (17,245) -11.01% A Groundskeeping 270,000 35,532 13.16% 234,468 42,223 (6,691) -15.85% Janitorial 350,000 80,355 22.96% 269,645 52,470 27,885 53.14% Outside Lab Services 238,000 22,438 9.43% 215,562 18,002 4,436 24.64% r Oxygen Plant Oper 342,000 81,294 23.77% 260,706 105,117 (23,823) -22.66% Temporary Services 250,500 68,498 27.34% 182,002 107,910 (39.412) -36.520/6 Security Services 245,000 65,018 26.54% 179,982 49,362 15,656 31.72% Other 264,000 8,930 3.38% 255,070 30,928 (21,998) -71.13% p,q Subtotal 12,262,500 2,816,199 22.97% 9,446,301 3,081,004 (264,805) -8.59% ontinued Section 2- Page 6 r4 I Joint Operating Budget Review rA Summary of Expenses by Line Item For the Three Months Ended September 30, 2004 AR Expense %Expense Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2004-05 9/30104 9/30104 Budget 9/30103 $ % Continued: Professional Services Legal 457,000 126,381 27.65% 330,619 137,539 (11,158) -8.11% Audit&Accounting 109,700 37,304 34.01% 72,396 39,500 (2,196) -5.56% Engineering 214,900 10,332 4.81% 204,568 53,334 (43,002) -80.63% Enviro Scientific Consulting 260,000 8,000 3.08% 252,000 - 8,000 N/A PeopleSoft Support 237,540 47,780 20.11% 189,760 105,560 (57,780) -54.74% Software Prgm Consulting 140,000 21,164 15.12% 118.836 7,181 13,983 194.72% «.. Advocacy Efforts 374,000 64,577 17.27% 309,423 72,012 (7,435) -10.32% Industrial Hygiene Services 55,000 3,707 6.74% 51,293 - 3,707 N/A Labor Negotiation Services 10,000 - 0.00% 10,000 13,063 (13,063) -100.00% Other 1,125,990 93,095 8.27% 1,032,895 116,290 (23,195) -19.95% Subtotal 2,984,130 412,340 13.82% 2,571,790 544,479 (132,139) -24.27% Research&Monitoring Environmental Monitoring 552,900 149,400 27.02% 403,500 235,785 (86,385) -36.64% AR Air Quality Monitoring 145,000 12,949 8.93% 132,051 - 12,949 N/A Research 526,000 130,465 24.80% 395,535 180,289 (49,824) -27.64% Subtotal 1,223,900 292,814 23.92% 931,086 416,074 (123,260) -29.62% Repairs&Maintenance ON Materials&Services 5,776,550 1,599,841 27.70% 4,176,709 1,506,518 93,323 6.19% Svc.Mtc.Agreements 1,576,700 307,971 19.53% 1,268,729 284,593 23,378 8.21% Subtotal 7,353,250 1,907,812 25.95% 5,445,438 1,791,111 116,701 6.52% Utilities +� Telephone 220,600 31,627 14.34% 188,973 46,217 (14,590) -31.57% Diesel For Generators 18,000 3,323 18.46% 14,677 6,592 (3,269) 49.59% Natural Gas 1,922,100 618,246 32.17% 1,303,854 443,529 174,717 39.39% Power 1,937,000 562,275 29.03% 1,374,725 618,661 (56,386) -9.11% Water 1,379,250 295,824 21.45% 1,083,426 253,200 42,624 16.83% Subtotal 5,476,950 1,511,295 27.59% 3,965,655 1,368,199 143,096 10.46% Other Operating Supplies OW* Outside Equip Rental 88,250 31,577 35.78% 56,673 17,607 13,970 79.34% Insurance - - WA - 202,572 (202,572) -100.00% Freight 98,000 22,382 22.84% 75,618 22,448 (66) -0.29% Misc.Operating Expense 152,630 16,558 10.85% 136,072 19,587 (3,029) -15.46% 119� Regulatory Operating Fees 398,680 104,188 26.13% 294,492 71,188 33,000 46.36% Subtotal 737,560 174,705 23.69% 562,855 333,402 (158,697) 47.60% General Manager Contingency &Reappropriations 224,810 - 0.00% 224,810 - - N/A Other Non-Oper Expense 338,050 24,048 7,11% 314,002 5,638 18,410 326.53% Total Materials, 4M Supplies&Services 47,192,430 11,015,513 23.34% 36,176,917 11,389,734 (374,221) -3.29% Total Expenditures 112,693,780 25,799,444 22.89% 86,894,336 24,073,232 1,726,212 7.17% Less:Cost Allocation (26.079,640) (6,436,853) 24.68% (19,642,787) (4,597,551) (1,839,302) 40.01% Net Joint Operating Requirements 86.614,140 19,362,591 22.36% 67,251.549 19,475,681 (113,090) -0.58% Less: Revenues (3,000,000) (956.281) 31.88% (2,043,719) (666,483) (289,798) 43.48% Net Joint Operating Expenses $ 83,614,140 $18,406,310 22.01% $ 65,207.830 $ 18,809,198 $ (402,888) -2.14% Section 2 - Page 7 2004-05 First Quarter Report Summary of Expenses by Treatment Process For the Three Months Ended September 30,2004 1 Increase Increase Actual Actual (Decrease) (Decrease) 9130104 9130103 $ % Treatment Process: Preliminary Treatment $ 1,402,479 $ 1,224,904 $ 177,575 14.50% Primary Treatment 1,915,638 1,220,495 695,143 56.96% Secondary Treatment 1,341,989 2,119,011 (777,022) -36.67% Cryogenic Plant(Plant 2) 143,114 136,571 6,543 4.79% Effluent Disposal 130,304 225,360 (95,056) -42.18% Solids Handling 6,031,250 7,582,425 (1,551,175) -20.46% I Cogeneration 2,611,296 1,984,630 626,666 31.58% Utilities 2,606,991 1,320,774 1,286,217 97.38% Electrical Distribution 316,376 175,379 140,997 80.40% 1 Miscellaneous Buildings 882,960 1,616,044 (733,084) -45.36% Air Quality 468,627 396,010 72,617 18.34% / Laboratory 1,511,567 1,474,078 37,489 2.54% Net Joint Operating Requirements 19,362,591 19,475,681 (113.090) -0.58% Less: Revenues (956,281) (666,483) (289,798) 43.48% Net Joint Operating Expenses $ 18,406,310 $ 18,809,198 $ (402,888) -2.14% roll Section 2-Page 8 1 P"` Joint Operating Budget Review Staffing Trends Full Time Equivalents September 30, 2004 650 629 598 .r 600 51 5 567 26 .w 550 b 578 510 500 450 . 6/30/2001 6/30/2002 6/30/2003 6/30/2004 9/30/2004 ■Actual ®Vacant At September 30, 2004, the total head count was 588 employees, or a full time equivalency of 578. Section 2 - Page 9 2004-05 First Quarter Report M I 1 1 J This Page Intentionally Left Blank r r 1 r1 i rr ,r 7 7 Section 2-Page 10 r CIP Review Capital Improvement Program By Type and Funding Source For the Three Months Ended September 30, 2004 Primary Treatment Secondary Headworks 6% Treatment 1 17% Collections Facilities Odor Control Projects 2% 18% Utility Systems 3% _ Solids Handling&Digestion 19; Plant Automation 1% Ocean Outfall Systems Equipment 2% 9% -- Prior Year Treatment Projects 2°% Miscellaneous Support Projects 4% Water Management Projects 34% Total Capital Improvement Expenditure- $46,071,285 Replacement/Rehabilitation, 515,568,501 34% Improved Treatment, Support, $19,423,959 42% $1,069,800 2% Additional Capacity, $10,009,025 22% Total Capital Improvement Expenditure - $46,O71,285 Section 3 - Page 1 2004-05 First Quarter Report Summary of Capital Improvement Construction Requirements - Current Year I" For the Three Months Ended September 30, 2004 2004-05 2004-05 2004-05 Cashflow Actual at Projected Budget 9/30/04 Outlay Collection System Improvement Projects Collections Greenville Sullivan/Raitt STreet Manhole Rehab $ - $ $ Santa Ana Trunk Sewer Rehab. 588,000 803 588,000 Lower Main-Broadway MH Rehabilitation - Continuous Feed Chemical Treatment Facility 287.000 11,183 287,000 Carbon Cnyn Sewer and Pump Stn.Abandonment 55,000 21,290 55,000 - Santa Ana River Interceptor Relief Sewer Santa Ana River Interceptor Realignment and Prot. 238,000 15,833 238,000 Abandonment of the Existing SARI in SA River - Abandonment of Yorba Linda Pump Station - Taft Branch Improvements - Atwood Subtrunk Improvements - Lower Santa Ana River Interceptor Improvements - Euclid Relief Improvements-Reach"A" - Euclid Relief Improvements-Reach"B" - Santa Ana River Relief Sewer,Reach B - Newhope-Placentia&Cypress Trunk Replacements - Upper&Lower Newhope-Placentia MH Rehabilitation - SARI and South Anaheim Interceptor MH Rehabilitaiton - - P"+ Rehabilitate District Siphons by Adding Air Jumper 193,000 16.836 193,000 Newhope-Placentia Trunk Diversion 85.000 - 85,000 Green River Meter Station - - Rehabilitation of the Magnolia Trunk Sewer Trask Branch of the Hoover-Western Subtrunk - - - Rehabilitation of the Westside Pump Station 425.000 14,094 425,000 Westside Relief Interceptor/Los Alamitos MH Rehab - - - y„R Rehabilitaiton of the Seal Beach and Edinger PS 188,000 641 188,000 Miller-Holder Trunk Condition Assessment 250.000 321 250.000 Big Canyon Trunk Sewer Rehabilitation 1,515.000 27.767 1,515,000 Big Canyon Trunk Sewer Replacement 6,000 2,050 6,000 t� Balboa Trunk Sewer Rehabilitaiton - - - Replacement of the Bitter Point Pump Station 1,340,000 91.949 1,340.000 Replacement of the Rocky Point Pump Station 3,315,000 2,625,543 3,315.000 Rehabilitation of the 14th Street Pump Station 2,908,000 155,501 2,908.000 Rehabilitation of the"A"Street Pump Station 2,867,000 152.559 2.867.000 Rehabilitation of the Bay Bridge Pump Station 355,000 18.875 355.000 Rehabilitation of the Crystal Cove Pump Station 263,000 3,465 263.000 fi"I Crystal Cove Pump Station Interior Rehabilitation 93.000 93,000 Bitter Point Force Main Rehabilitation 1,168,000 167,911 1,168,000 Newport Foce Main Consition Assessment 600,000 - 600,000 Abandonment of Airbase Trunk Sewers&College Ave 934.000 21,159 934,000 Abandonment of Airbase Trunk Sewer-California St 896.000 411,845 896,000 Sunflower Interceptor Manhole Rehab 371.000 66,066 371,000 Lemon Heights Subtrunk Street Rehabilitation 74,000 10,352 74,000 College Ave.Pump Station Parallel Force Main 838,000 40,793 838,000 I* Gisler-Redhill Trunk Sewer Relocation-Phase 1 192,000 20.358 192,000 Gisler-Redhill Trunk Improvements,Reach A 4,826,000 99,127 4,826,000 Gisler-Redhill System Improvements,Reach B 489,000 14,660 489,000 Tustin Trunk Improvements 517.000 35,766 517,000 Orange Trunk Improvements 3,634,000 1,712.139 3.634.000 West Trunk Improvements 50,000 11,176 50,000 Gisler-Redhill/North Trunk Improvements 4,766.000 1,177,713 4.766.000 Rehabilitation of the College Ave Pump Station 577,000 8,840 577,000 1 (Continued) Section 3 - Page 2 f `w CIP Review Summary of Capital Improvement Construction Requirements-Current Year For the Three Months Ended September 30,2004 2004-05 2004-05 2004-05 Cashflow Actual at Projected Budget 9/30/04 Outlay Plant Automation&Computerization SCADA Historian Replacement 456,000 456,000 Electronic Time Entry System 225,000 225,000 Power Monitoring and Control Systems 276,000 276,000 Fats,Oils,and Grease(FOG)Software 60,000 60,000 Enterprise Contract Management Solution 175,000 - 175,000 Document Management 68.000 10,298 68,000 Data Integration 156,000 108,306 156,000 Strategic Information Architecture(SIA) 25,000 - 25,000 InterneUlntranet Development 142,000 10,492 142,000 wry CMMS System Replacement 176,000 8,252 176.000 PDS213 Software Replacement 250,000 - 250,000 Environmental Compliance Awareness Program 330,000 - 330,000 Source Control Programming 404,000 72,019 404,000 Geographic Information System 325,000 87,236 325,000 Financial Information System Upgrade 440,000 59,687 440,000 Subtotal-Plant Automation&Computerization 3,508,000 356,290 3,508,000 Miscellaneous&Support Projects Facilities Engineering Projects-Joint 1,132,000 24,945 1,132,000 Facilities Engineering Projects-Plant 1 1,122,000 271,776 1,122,000 Facilities Engineering Projects-Plant 2 1,118,000 14,720 1,118,000 Area Classification Study Implementation Plan 4,264,000 856.985 4,264,000 Supplemental Full Secondary Treatment CEQA Doc 385,000 - 385,000 Supplement No.1 to the 1999 Strategic Plan EIR 309,000 64,737 309,000 Long Range Biosolids Management Plan 350,000 94,544 350,000 Modifications to Existing Mech Systems - - - Building Rehabilitation/Refurbishment - - - Space Allocation and Interior Renovation 511,000 20,798 511,000 Laboratory Rehabilitation 321,000 30,872 321,000 Tenant Improvements to Rebuild Shop 252,000 72,752 252,000 Laboratory Refurbishment at Plant No.1 - - - Regional FOG Control Collection at Plant No.1 - - - Small Cap.Equip.Replacement Project 500,000 20,664 500,000 "~ Asset Management Program 1,210,000 100,849 1,210,000 Warehouse Reinvention Project 120,000 38,842 120,000 Plant 2 Maintenance Building Modifications 20,000 442 20,000 Subtotal-Miscellaneous&Support Projects 11,614,000 1,612,826 11,614.000 Water Management Projects Groundwater Replenishment System 48,024,000 15,928,560 48,024,000 Water Conservation 600,000 759 600,000 Long Term Permanent Monitoring Program 713,000 201,704 713,000 Subtotal-Water Management Projects 49,337,000 16,131,023 49,337,000 Strategic&Master Planning Collection System Model and Strategic Plan Update 300,000 2,822 300,000 Treatment Plant Strategic Plan Update 330,000 5,177 330,000 Orange County Biosolids Production Siting Study 250,000 250,000 Subtotal-Strategic&Master Planning 880.000 7,999 880,000 Additional Charges to CIP Completed at 6130/04 - 742,354 742,400 Total Treatment and Disposal Projects 166,013,000 36,745,804 166,755,400 Capital Equipment Purchases 3,152,600 724,041 3,152,600 Total Collections and Treatment&Disposal Projects and Capital Equipment Purchases $231,223,600 $46,071,285 $232,069,500 Section 3-Page 5 ea i 2004-05 First Quarter Report Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30,2004 Current Total - Approved June 30,2004 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2005 Budget Collection System Improvement Prolects Colloctions Greenville Sullivan/Raiff STreet Manhole Rehab $ 3.269,000 $ - $ - $ - $ 3,269,000 Santa Ana Trunk Sewer Rehab. 14,638,000 403,838 588,000 991,838 13,646,162 Lower Main-Broadway MH Rehabilitation 1,467,000 - - - 1,467,000 Continuous Feed Chemical Treatment Facility 861,000 120,764 287,000 407,764 453,236 Carbon Cnyn Sewer and Pump Sin.Abandonment 3,970,000 516,344 55,000 571,344 3.398,656 Santa Ana River Interceptor Relief Sewer 17,272,000 - - - 17,272,000 Santa Ana River Interceptor Realignment and Prot. 9,583,000 2,092,082 238,000 2,330,082 7,252,918 Abandonment of the Existing SARI in SA River 8,456,000 151 - 151 8,455,849 Abandonment of Yorba Linda Pump Station 955,000 - - - 955,000 Taft Branch Improvements 3,508,000 9,386 - 9,386 3,498,614 Atwood Subtrunk Improvements 3,187,000 110,352 - 110,352 3,076,648 Lower Santa Ana River Interceptor Improvements 35,012,000 - - 35,012,000 Euclid Relief Improvements-Reach"A" 20,856,000 13,510 - 13,510 20,842,490 Euclid Relief Improvements-Reach"B" 10,319,000 - - - 10,319,000 Santa Ana River Relief Sewer,Reach B 32,702,000 - - - 32.702,000 Newhope-Placentia&Cypress Trunk Replacements 28,785,000 - - - 28,785,000 Upper&Lower Newhope-Placentia MH Rehabilitation 4,351,000 - - - 4,351,000 SARI and South Anaheim Interceptor MH Rehabilitaiton 3,087,000 - - - 3,087,000 Rehabilitate District Siphons by Adding Air Jumper 5,731,000 - 193,000 193,000 5,538,000 Newhope-Placentia Trunk Diversion 2,746,000 - 85,000 85,000 2,661,000 Green River Meter Station 704,000 - - - 704.000 Rehabilitation of the Magnolia Trunk Sewer 48,868,000 - - 48,868,000 Trask Branch of the Hoover-Westem Subtrunk 1,410,000 - - - 1,410,000 Rehabilitation of the Westside Pump Station 3,500,000 393,316 425,000 818,316 2,681,684 Westside Relief Interceptor/Los Alamitos MH Rehab 17.136,000 - - - 17.136,000 Rehabilitaiton of the Seal Beach and Edinger PS 8,574,000 - 188,000 188,000 8,386,000 Miller-Holder Trunk Condition Assessment 250,000 - 250,000 250,000 - Big Canyon Trunk Sewer Rehabilitation 1,973,000 291,583 1,515,000 1.806,583 166,417 Big Canyon Trunk Sewer Replacement 922,000 - 6,000 6,000 916,000 Balboa Trunk Sewer Rehabilitaiton 5.759,000 - - - 5,759,000 Replacement of the Bitter Point Pump Station 8,159,000 639.839 1,340,000 1,979,839 6,179,161 Replacement of the Rocky Point Pump Station 9,511.000 503,396 3,315,000 3,818,396 5,692,604 Rehabilitation of the 14th Street Pump Station 6,422,000 1,175,839 2,908,000 4,083,839 2,338,161 Rehabilitation of the"A"Street Pump Station 6,609,000 1,843.242 2,867,000 4,710,242 1,898.758 Rehabilitation of the Bay Bridge Pump Station 2,612,000 160,708 355,000 515,708 2,095,292 Rehabilitation of the Crystal Cove Pump Station 549,000 429,813 263,000 692,813 (143,813) T Crystal Cove Pump Station Interior Rehabilitation 963,000 - 93,000 93,000 870,000 Bitter Point Force Main Rehabilitation 20,935,000 683,309 1,168,000 1,851,309 19,083,691 Newport Foce Main Consition Assessment 600,000 - 600,000 600,000 - Abandonment of Airbase Trunk Sewers&College Ave 1,768,000 - 934,000 934,000 834,000 Abandonment of Airbase Trunk Sewer-Califomia St 1,125,000 134.479 896,000 1,030,479 94,521 Sunflower Interceptor Manhole Rehab 3,782,000 649,901 371,000 1,020,901 2,761,099 Lemon Heights Subtrunk Street Rehabilitation 1,043,000 34,999 74,000 108,999 934,001 _ College Ave.Pump Station Parallel Force Main 1,734,000 - 838,000 838.000 896,000 Gisler-Redhill Trunk Sewer Relocation-Phase 1 936.000 19.500 192,000 211,500 724,500 ( Gisler-Redhill Trunk Improvements,Reach A 7,066,000 - 4,826,000 4,826,000 2,240,000 Gisler-Redhill System Improvements,Reach B 6,893,000 462,597 489,000 951,597 5,941,403 Tustin Trunk Improvements 5,004,000 - 517,000 517,000 4,487,000 Orange Trunk Improvements 5,298,000 3,634,000 3,634,000 1,664,000 West Trunk Improvements 452,000 50,000 50,000 402,000 Gisler-Redhill/North Trunk Improvements 15.359,000 - 4.766,000 4,766,000 10,593,000 Rehabilitation of the College Ave Pump Station 6,321,000 148,183 577,000 725,183 5,595,817 (Continued) Section 3-Page 6 1 � CIP Review Summary of Capital Improvement Construction Requirements-Project Life +.+ For the Three Months Ended September 30, 2004 Current Total Approved June 30,2004 Year Projected Remaining �+ Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2005 Budget (Collections continued) Rehabilitaiton of the MacArthur Pump Station 2,914,000 187.412 322,000 509,412 2.404,588 Lower Gisler-Redhill Trunk Relocation and MH Rehab 6,615,000 - - - 6,615,000 Upper Gisler-Redhill MH Rehabilitaiton&Campus Dr 2,121,000 - - 2,121,000 Warner Avenue Relief Sewer 7,480,000 6,699,017 1,411,000 8,110,017 (630,017) ✓ Edinger/Bosla Chica Trunk Improvements 2,126,000 - - - 2,126,000 Coast Trunk Sewer Rehabilitaiton 16,635,000 90,809 160,000 250,809 16,384,191 Warner Sewer Siphon 1,179.000 - 39,000 39,000 1,140,000 OCTA Sewer Relocation Projects 300,000 - 100.000 100,000 200,000 two North County Collections Support Facility Study 50,000 - 50,000 50,000 - Permanent Odor Control Facilities 3,848,000 - - - 3,848,000 Facilities Engineering Projects-Collections 5,400,000 - 306,000 306,000 5,094,000 Replacement of the Ellis Ave.Pump Station 34,337,000 1,419,483 3,296,000 4,715,483 29,621.517 �+ Bushard Trunk Sewer Rehabilitation 40,793,000 18,624,053 21.291,000 39,915.053 877,947 Pump Station P&IDs and Equipment Tagging 720,000 - 180,000 180,000 540,000 Additional Charges to CIP Closed at 6/30/04 10,918,348 8,547,100 101,600 8,648,700 2,269.648 Subtotal-Collections 548,428,348 46,405,005 62.159,600 108,564,605 439,863.743 r� Revenue Area 14 Additional Charges to CIP Closed at 6/30/04 - 175,164 1,900 177,064 (177.064) Subtotal-Revenue Area 14 - 175.164 1,900 177,064 (177,064) urn Total Collection System Improvement Projects 548,428,348 46,580,169 62,161.500 108,741,669 439,686,679 Treatment&Disposal Projects Headworks r.a PLC Programming and Integration 209,000 107.159 120,000 227,159 (18,159) Headworks Rehabilitation and Expansion at Plant No.1 25,002,000 - - - 25,002,000 Headworks Rehabilitation/Refurbishment 20,758,000 70.922 82,000 152,922 20,605,078 Headworks Improvements at Plant No.2 229,241,000 16,501,804 1,852,000 18.353.804 210,887,196 vra Subtotal-Headworks 275,210,000 16,679,885 2,054,000 18,733,885 256,476,115 Primary Treatment Pri.Clarifiers 16-31 &Related Facilities 88,561,000 68,789,546 13,339,000 82,128,546 6,432,454 Primary Treatment Rehab/Refurb 55,093,000 651,528 3,504.000 4,155,528 50,937,472 Sludge Density Meter Upgrades 800,000 23,227 390,000 413,227 386,773 Subtotal-Primary Treatment 144,454,000 69,464,301 17,233,000 86,697,301 57,756,699 Secondary Treatment New Secondary Treatment System at Plant No. 1 242,543,000 1,569,307 8,751,000 10,320,307 232,222,693 Trickling Filter Rehabilitation and New Clarifiers 46,210,000 17,745.002 18,215,000 35.960,002 10,249,998 Activated Sludge Plant Rehabilitation 44,569.000 1,608,126 2,840,000 4,448,126 40,120,874 Sec Treat Monitoring&Cntrl Sys Upgrad 8,703,000 3.102.273 4,555,000 7,657,273 1,045,727 Rehabilitation of Activated Sludge Plant at Plant 2 20,474,000 896.461 2,318.000 3,214,461 17,259,539 Trickling Filters at Plant No.2 138.487,000 486,676 2,387,000 2,873,676 135,613,324 e.e Oxygen Plant Assessment 507,000 141,335 360,000 501,335 5,665 Oxygen Plant Rehabilitation 2,300,000 - - - 2,300,000 Activated Sludge Aeration Basin Selector Study 775,000 602,930 95,000 697,930 77,070 Computer Modeling of Activated Sludge System 110,000 1135 56,000 56,135 53,865 Subtotal-Secondary Treatment 504,678.000 26,152 245 39,577,000 65,729,245 438.948,755 Solids Handling&Digestion Sludge Digester Rehabilitation at Plant 1 31,928.000 174,059 829,000 1,003,059 30.924,941 Sludge Dewatering and Odor control at Plant 1 109,518,000 198,395 1,481,000 1,679.395 107,838,605 Truck Wash and Dewatering Beds at Plant No.1 2,131,000 - 56,000 56,000 2.075,000 (Continued) Section 3-Page 7 2004-05 First Quarter Report Summary of Capital Improvement Construction Requirements-Project Life For the Three Months Ended September 30, 2004 Current Total i Approved June 30,2004 Year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2005 Budget (Solids Handling&Digestion continued) Solids Storage and Truck Loading Facility 14.950,000 14,015,201 482,000 14,497,201 452,799 Rehabilitation of Solids Storage Silos A&B at P2 9,100,000 - 106,000 106,000 8.994,000 Digester Rehabilitation at Plant 2 25,621,000 123.856 445,000 568,856 25,052,144 _ Sludge Dewatering and Odor Control at Plant 2 38,922,000 - - - 38,922,000 Dewatering Beds at Plant No.2 Siting Study 50,000 - 50,000 50,000 - Digester Gas Venting Study 100,000 - 100,000 100,000 - High Rate Digester Mix Pumps Mech.Seals 517,000 542,970 43,000 585,970 (68,970) - Tule Ranch Biosolids Management Needs 780,000 258,468 297,000 555,468 224,532 Subtotal-Solids Handling&Digestion 233,617,000 15,312,949 3,889,000 19,201,949 214,415,051 Ocean Outfall Systems _ Peak Flow Management 3,393,000 1,755,253 1,501.000 3,256,253 136,747 Effluent Pumping Station Annex 61,338,000 11.876,647 17,264,000 29,140,647 32,197,353 Short Term Outfall Bacteria Reduction 8,067,000 8,114,412 52,000 8,166,412 (99,412) COBS Rehabilitation Assessment Study 200,000 - 200,000 200,000 - NPDES Permit Renewal 214,000 1,150,657 100,000 1,250,657 (1,036,657) Subtotal-Ocean Outfall Systems 73.212,000 22,896,969 19,117,000 42,013,969 31,198,031 Utility Systems Arc Flash Hazard Evaluation 160,000 - 160,000 160,000 - Underground Storage Tank Rehabilitation 1.390,000 - 150,000 150,000 1,240,000 Interplant Gas Line Rehabilitation 2,887,000 - 380,000 380,000 2,507,000 Standby Power and Reliability Modifications 17,643,000 14.502,998 2,035,000 16,537.998 1,105,002 Cable Tray Improvements at Plants 1 &2 29,526,000 1,150,865 263,000 1,413,865 28,112,135 Central Generation Air Quality Upgrades 5,440,000 1,471,985 1,447,000 2,918,985 2,521,015 lrJ Central Generation Automation 2,597,000 - 48,000 48,000 2,549,000 Fire Supression for Servers and Equipment at P1 &P2 686,000 - 601.000 601,000 85,000 Electrical Power Distribution System Improvements 7.600,000 - 340,000 340,000 7,260,000 Plant 1 66kV Substation 4,486,000 77 31,000 31,077 4.454,923 ta+ Gas Compressor Addition at Plant No.2 4,326,000 714,559 453,000 1,167,559 3,158,441 Utilities Rehabilitation and Refurbishment 5,175,000 2,008,484 3,636,000 5,644,484 (469,484) Electrical Equipment Refurbishment and Protection 3,091,000 79,553 2,436,000 2,515,553 575,447 Indoor/Outdoor Lighting Study 132,000 33,820 115,000 148,820 (16,820) Plant 1 Plant Water VFD Replacement 2,224,000 17,531 1,056,000 1,073,531 1,150,469 Subtotal-Utility Systems 87,363,000 19,979,872 13.151,000 33,130,872 54,232.128 - Odor Control Related Projects W Facilities Modifications for Odor Control 3,645,000 2,642,717 1.270,000 3,912.717 (267,717) Rehabilitation of Odor Control Facilities 33,224,000 1,632,138 2.925,000 4,557.138 28,666.862 Biological Scrubbers Souce Water Control Study 150,000 - 150,000 150,000 - Subtotal-Odor Control Related Projects 37,019,000 4,274,855 4,345.000 8,619.855 28,399,145 Process Related Special Projects Diesel Exhaust Emissions Controls Options Study 250,000 - 100,000 100,000 150,000 � Digester Gas Siloxane Removal Study 100,000 100,000 100,000 - Brine Management Study 200,000 - 100,000 100,000 100,000 Plant O&M Manual and SOP Project-Phase 1 4,000,000 467,343 70.000 537,343 3,462,657 Hazardous Energy Control Procedures 1,190,000 911,617 220.000 1,131,617 58.383 Corrosion Management 7,548,000 263,818 130,000 393,818 7,154,182 Special Projects: Anoxic Gas Flotation(AGF) 798,000 585,321 208,000 793,321 4,679 Special Projects: Anaerobic Baffled Reactor(ABR) 195.000 122,320 100,000 222,320 (27,320) Special Projects: Biotrickling Filter(BTF) 770.000 532,054 280,000 812,054 (42,054) Subtotal-Process Related Special Projects 15,051,000 2,882,473 1,308,000 4,190,473 10,860,527 (Continued) l.J Section 3- Page 8 CIP Review Summary of Capital Improvement Construction Requirements-Project Life a+ For the Three Months Ended September 30, 2004 Current Total Approved June 30,2004 Year Projected Remaining "W Project Accumulated Projected Cost at Future Plant Automation 8 Computerization Budget Cost Cost June 30,2005 Budget SCADA Historian Replacement 456,000 456,000 456,000 - ,�, Electronic Time Entry System 250,000 - 225,000 225,000 25,000 Power Monitoring and Control Systems 3,478,000 24,402 276,000 300,402 3,177,598 Fats,Oils,and Grease(FOG)Software 100,000 - 60,000 60,000 40,000 Enterprise Contract Management Solution 1.175,000 - 175,000 175,000 1,000,000 ,.d Document Management 864,000 907,383 68,000 975,383 (111,383) Data Integration 4,334,000 3,764,536 156,000 3,920,536 413,464 Strategic Information Architecture(SIA) 724,000 440,665 25,000 465,665 258,335 Intemet/Intranet Development 650,000 350.517 142,000 492,517 157,483 air CMMS System Replacement 3,789,000 4,557 176,000 180,557 3,608,443 PDS2D Software Replacement 250,000 - 250,000 250,000 - Environmental Compliance Awareness Program 330,000 - 330,000 330,000 Source Control Programming 2,956,000 1,761,412 404,000 2,165,412 790,588 �++ Geographic Information System 4,157,000 686,343 325,000 1,011,343 3.145,657 Financial Information System Upgrade 3,223,000 2,322,798 440,000 2,762,798 460,202 Subtotal-Plant Automation&Computerization 26,736,000 10,262,613 3,508.000 13,770,613 12,965,387 Miscellaneous&Support Projects Facilities Engineering Projects-Joint 18,200,000 144,408 1,132,000 1,276,408 16,923,592 Facilities Engineering Projects-Plant 1 18,200,000 414,625 1,122,000 1,536,625 16,663,375 Facilities Engineering Projects-Plant 2 18,200,000 362,316 1,118.000 1,480,316 16,719,684 >� Area Classification Study Implementation Plan 25,283,000 20,481,680 4,264,000 24,745,680 537,320 Supplemental Full Secondary Treatment CEQA Doc 475,000 - 385,000 385,000 90,000 Supplement No.1 to the 1999 Strategic Plan EIR 832,000 644,337 309,000 953,337 (121,337) Long Range Biosolids Management Plan 1,561,000 1,343,630 350,000 1,693.630 (132,630) a. Modifications to Existing Mech Systems 3,007,000 272,215 - 272,215 2,734,785 Building Rehabilitation/Refurbishment 1,455,000 169 - 169 1,454,831 Space Allocation and Interior Renovation 17.888,000 923,070 511,000 1,434,070 16,453,930 Laboratory Rehabilitation 1,829,000 86,179 321,000 407,179 1,421,821 WW Tenant Improvements to Rebuild Shop 321,000 68,142 252,000 320,142 858 Laboratory Refurbishment at Plant No.1 6,261,000 - - - 6,261,000 Regional FOG Control Collection at Plant No.1 2,666,000 - - - 2,666,000 Small Cap.Equip.Replacement Project 3,000,000 2,192,538 500,000 2,692,538 307,462 �+ Asset Management Program 13,055,000 18,381 1,210,000 1,228,381 11,826,619 Warehouse Reinvention Project 600,000 130,969 120,000 250,969 349,031 Plant 2 Maintenance Building Modifications 340,000 1,926 20,000 21,926 318.074 Subtotal-Miscellaneous&Support Projects 133,173,000 27,084.585 11,614,000 38,698,585 94,474,415 Water Management Projects Groundwater Replenishment System 251,660,000 31,756,456 48,024.000 79,780,456 171,879,544 Water Conservation 3,900,000 3,563,823 600.000 4,163,823 (263,823) �t Long Tenn Permanent Monitoring Program 7.074,000 5,294,528 713,000 6,007,528 1,066,472 Subtotal-Water Management Projects 262,634,000 40,614,807 49,337,000 89,951,807 172,682,193 Strategic&Master Planning Collection System Model and Strategic Plan Update 500,000 - 300,000 300,000 200,000 Treatment Plant Strategic Plan Update 3,620,000 - 330,000 330,000 3,290,000 Orange County Biosolids Production Siting Study 250,000 - 250,000 250,000 - Subtotal-Strategic&Master Planning 4,370,000 - 880,000 880,000 3,490,000 rri Additional Charges to CIP Completed at 6130104 37,850,768 92,965,665 742,400 93,708,065 (55,857,297) Total Treatment and Disposal Projects 1,835,367,768 348,571,219 166,755,400 515,326,619 1,320,041.149 ,o, Capital Equipment Purchases 57,152,600 3,152.600 3,152,600 54,000,000 Total Collections and Treatment&Disposal Projects and Capital Equipment Purchases $2,440,948,716 $395,151,388 $232,069,500 $627,220,888 $1,813,727,828 rr ' Section 3-Page 9 r i 2004-05 First Quarter Report I V i This Page Intentionally Left Blank , s � 6w Section 3-Page 10 Budget Review by Revenue Area All Revenue Areas Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2004 m Operating Budget Review 2004-05 Year-To- Remaining Year-To-Date Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions (Share of 1%) $ 28,161,000 $ 3,212,279 $ 24,948,721 11.41% Other User Fees 110,928,000 4,481,120 106,446,880 4.04% woo Capital Facilities Capacity Charges 11,560,000 753,148 10,806,852 6.52% Sale of Capacity Rights 2,600,000 - 2,600,000 0.00% Capital Assessment(IRWD) 8,400,000 4,451,677 3,948,323 53.00% Interest& Miscellaneous Revenue 32,183,520 6,807,748 25,375,772 21.15% rr Total Receipts $ 193,832,520 $19,705,972 $174,126,548 10.17% CASH DISBURSEMENTS: `d Revenue Area Programs: Collection System $ 12,061,200 $ 3.274,158 $ 8,787,042 27.15% Odor Control Program 5,839,480 246,227 5,593,253 4.22% Now Fats, Oil, & Grease Program 187,370 210,701 (23,331) 112.45% Urban Runoff Program 442,510 44,320 398,190 10.02% Cooperative Projects Grant Program 4,075,230 24,253 4,050,977 0,60% Revenue Area Programs Subtotal 22,605,790 3,799,659 18,806,131 16.81% Share of Joint Works Capital Improvements 169,165,600 37,469,845 131,695,755 22.15% Collection Activity Capital Improvements 62,058,000 8,601,440 53,456,560 13.86% Share of Joint Works Operating Expenses 83,614,140 18,406,310 65,207,830 22.01% COP Retirement and Interest Expense 41,917,000 18,238,645 23,678,355 43.51% Total Disbursements $ 379,360,530 $86,515,899 $292,844,631 22.81% Capital Facilities Budget Review Balance Adjustments Transfer to Balance 07/01/04 &Additions Fixed Assets 9/30/04 CONSTRUCTION IN PROGRESS: Share of Joint Works Treatment Plant CIP $ 324.089,013 $37,469,845 $ - $ 361,558,858 Collection Activity Construction in Progress 35,014,857 8,601,440 - 43,616,297 Subtotal 359,103,870 46,071,285 - 405,175,155 PROPERTY, PLANT& EQUIPMENT(at cost): Land and Property Rights 11,446,087 - - 11,446,087 Collection Lines and Pump Stations 425,430,380 - - 425,430,380 ,.r Treatment Facilities 657,941,648 - - 657,941,648 Disposal Facilities 90,161,860 - - 90,161,860 General Plant and Administrative Facilities 125,801,901 - - 125,801,901 bow Subtotal 1,310,781,876 - - 1,310,781,876 Total Property, Plant& Equipment& CIP $1,669,885,746 $46,071,285 $ - $1.715,957,031 rr Section 4- Page 1 1 FY 2004-05 First Quarter Report L t Consolidated Revenue Area Operating and Capital Facilities Budget Review j,,, For the Three Months Ended September 30, 2004 Operating Budget Review 2004-05 Year-To- Remaining Year-to-Date Budget Date Budget %of Budget CASH RECEIPTS: Tax Allocations/Subventions (Share of 1%) $ 27,436,000 $ 3,147,870 $ 24,288,130 11.47% Other User Fees 106,728,000 3,209,503 103,518,497 3.01% Capital Facilities Capacity Charges 11,560,000 753,148 10,806,852 6.52% 6d Sale of Capacity Rights 2,470,520 - 2,470,520 - Capital Assessment(IRWD) - - - - Interest&Miscellaneous Revenue 27,713,000 6,807,344 20,905,656 24.56% Total Receipts $ 175,907,520 $13,917,865 $161,989,655 7.91% CASH DISBURSEMENTS: Revenue Area Programs: Collection System $ 11,730,430 $ 3,205,925 $ 8,524,505 27.33% Odor Control Program 5,545,750 246,227 5,299,523 4.44% Fats, Oil, &Grease Program 177,950 195,696 (17,746) 109.97% Urban Runoff Program 420,250 42,090 378,160 10.02% Cooperative Projects Grant Program 4,075,230 24,253 4,050,977 0.60% Revenue Area Programs Subtotal 21,949,610 3,714,191 18,235,419 16.92% Share of Joint Works Capital Improvements 160,741,200 1,877,239 158,863,961 1.17% Collection Activity Capital Improvements 62,058,000 8,599,551 53,458,449 13.86% Share of Joint Works Operating Expenses 79,408,350 17,447,882 61,960,468 21.97% 6.0 COP Retirement and Interest Expense 41,917,000 18,238,645 23,678,355 43.51% Total Disbursements $ 366,074,160 $49,877,508 $316,196,652 13.62% 6W Capital Facilities Budget Review Balance Adjustments Transfer to Balance �d 07/01/04 &Additions Fixed Assets 9/30/04 CONSTRUCTION IN PROGRESS: Share of Joint Works Treatment Plant CIP $ 307,852,153 $ 1,877,239 $ - $ 309,729,392 I.d Collection Activity Construction in Progress 34,948,987 8,599,551 - 43,548,538 Subtotal 342,801,140 10,476,790 - 353,277,930 W PROPERTY, PLANT&EQUIPMENT(at cost): Land and Property Rights 10,876,019 - - 10,876,019 Collection Lines and Pump Stations 394,649,280 - - 394,649,280 Treatment Facilities 624,979,770 - - 624,979,770 Disposal Facilities 85,649,838 - - 85,649,838 General Plant and Administrative Facilities 119,534,931 - - 119,534,931 �..� Subtotal 1,235,689,838 - - 1,235,689,838 Total Property, Plant& Equipment& CIP $1,578,490,978 $10,476,790 $ - $1,588,967,768 Section 4- Page 2 W Vvi Budget Review by Revenue Area Revenue Area No. 14 Operating and Capital Facilities Budget Review For the Three Months Ended September 30, 2004 Operating Budget Review r 2004-05 Year-To- Remaining Year-To-Date Budget Date Budget %of Budget CASH RECEIPTS: �+ Tax Allocations/Subventions(Share of 1%) $ 725,000 $ 64,409 $ 660,591 8.88% Other User Fees 4,200,000 1,271,617 2,928,383 30.28% Capital Facilities Capacity Charges - - - N/A Sale of Capacity Rights 129,480 - 129,480 0.00% Capital Assessment(IRWD) 8,400,000 4.451,677 3,948,323 53.00% Interest&Miscellaneous Revenue 4,470,520 404 4,470,116 0.01% +� Total Receipts $ 17,925.000 $ 5,788,107 $ 12,136,893 32.29% CASH DISBURSEMENTS: Revenue Area Programs: Collection System $ 330,770 $ 68,233 $ 262,537 20.63% Odor Control Program 293,730 - 293,730 0.00% wow Fats,Oil, &Grease Program 9,420 15,005 (5,585) 159.29% Urban Runoff Program 22,260 2,230 20,030 10.02% Cooperative Projects Grant Program - - - N/A Revenue Area Programs Subtotal 656,180 85,468 570,712 13.03% MW Share of Joint Works Capital Improvements 8,424,400 35,592,606 (27,168,206) 422.49% Collection Activity Capital Improvements - 1,889 (1,889) N/A Share of Joint Works Operating Expenses 4,205,790 958,428 3,247,362 22.79% tErl COP Retirement and Interest Expense - - - N/A Total Disbursements $ 13,286,370 $36,638,391 $(23,352,021) 275.76% u.0 Capital Facilities Budget Review Balance Adjustments Transfer to Balance 07/01/04 &Additions Fixed Assets 9130/04 CONSTRUCTION IN PROGRESS: Share of Joint Works Treatment Plant CIP $ 16,236,860 $35,592,606 $ - $ 51,829,466 ..r Collection Activity Construction in Progress 65,870 1,889 - 67,759 Subtotal 16,302,730 35,594,495 - 51,897,225 +.d PROPERTY, PLANT&EQUIPMENT(at cost): Land and Property Rights 570,068 - - 570,068 Collection Lines and Pump Stations 30,781,100 - - 30,781,100 low Treatment Facilities 32,961,878 - - 32,961.878 Disposal Facilities 4,512,022 - - 4,512,022 General Plant and Administrative Facilities 6,266,970 - - 6,266,970 b.r Subtotal 75,092.038 - - 75,092,038 Total Property, Plant& Equipment&CIP $ 91,394.768 $35,594,495 $ - $ 126,989,263 No bow Section 4-Page 3 No I FY 2004-05 First Quarter Report This Page Intentionally Left Blank w Section 4- Page 4 Self Insurance Review General Liability and Property Fund Budget Review VW For the Three Months Ended September 30,2004 Percent Actual of Budget Remaining Actual 2004-05 Through Through 2004-05 Through Increase two Budget 9/30104 9/30104 Budget 9130103 (Decrease) Revenues: MW In-Lieu Premiums $ 1,100,000 $ 275,001 25.00% $ 824.999 $675,000 $ (399,999) Interest&Miscellaneous 20,000 - 0.00% 20,000 191 (191) tow Service Department Allocation - 522 N/A (522) (354,498) 355,020 Allocation from Other Funds 14,100 - 0.00% 14,100 1,456 (1,456) Total Revenues 1,134,100 275,523 24.29% 858,577 322,149 (46,626) tow Expenses: Benefits/Claims 300,000 1.303 0.43% 298.697 65,548 (64,245) Contractual Services 1,000 300 30.00% 700 300 - Legal Services 325,000 104,695 32.21% 220,305 34,611 70,084 Professional Services 5,000 299 5.98% 4,701 - 299 Subtotal 631,000 106,597 16.89% 524,403 100,459 6,138 Insurance premium 510,000 290,579 56.98% 219,421 97,053 193,526 Total Expenses 1,141,000 397,176 34.81% 743,824 197,512 199,664 taw Excess Revenue(Expenses) (6,900) (121,653) 1763.09% $ 114,753 124,637 (246,290) Beginning Reserves 554,200 55,000,000 94,372 54,905,628 kow Ending Reserves $ 547,300 $54,878,347 $219,009 $54,659,338 UW bw Section 5-Page 1 No i FY 2004-05 First Quarter Report L Workers'Compensation Fund Budget Review L For the Three Months Ended September 30,2004 L Percent Actual of Budget Remaining Actual 2004-05 Through Through 2004-05 Through Increase Budget 9130/04 9/30/04 Budget 9/30/03 (Decrease) Revenues: In-Lieu Premiums $ 700,000 $ 175,000 25.00% $ 525,000 $250,000 $ (75,000) Interest& Miscellaneous 12,000 - 12,000 36 (36) Service Department Allocations 500 129 25.80% 371 (3,912) 4,041 Total Revenues 712,500_ 175,129 24.58% 537,371 246,124 (70,996) , Iw Expenses: Benefits/Claims 400,000 38,577 9.64% 361,423 62,209 (23,632) Contractual Services 25,000 15,125 60.50% 9,875 6,250 8,875 Legal Services 25,000 4,700 18.80% 20,300 2,149 2,551 Professional Services 25,000 2,710 10.84% 22,290 3,350 (640) 6.i Subtotal 475,000 61,112 12.87% 413,888 73,958 (12,846) Insurance premium 260,000 52,096 20.04% 207,904 40,171 11,925 Total Expenses 735,000 113,208 15.40% 621,792 114,129 (921) Excess Revenue(Expenses) (22,500) 61,921 -275.20% $ (84.421) 131,995 (70,074) Beginning Reserves 325,200 2,000,000 (32,841) 2,032,841 Ending Reserves $ 302,700 $2.061,921 _$1,962,767 6.+ Section 5- Page 2 ORANGE COUNTY SANITATION DISTRICT Finance Department (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 9/30/04 . S i i Orange County Sanitation District Corporate Identity Program Phase 1 - Final Report WN . A"M�, Me :• \ :1111 1 R I F 7 1 N October 10, 2004 Mi ww ow w Orange County Sanitation District Corporate Identity Program Phase 1 — Final Report 10/4/04 Johnson lUkropina Iwo Md r HI \ : C K E A T I V E M A R K E T I N G Orange County Sanitation District Corporate Identity Program Phase 1 — Final Report 10/4/04 Executive Summary Johnson IUkropina (JIU) was selected to perform an assessment of OCSD's current identity and determine if it needed to be changed. The assessment included the following: • Service area demographic review • Media audit • Peer review of similar agencies • Focus groups of ratepayers • Quantitative survey of ratepayers • Employee interviews • Executive Management Team (EMT) interviews • Board member interviews Based on the above activities, we conclude the following: • Orange County Sanitation District (OCSD) is confusing for the general public, who ascribe trash and solid waste management rather than i wastewater treatment to the term "sanitation." • "Orange County" is thought to encompass the entire county, but this is a much less important issue. • There is general agreement that the current name does not encompass the mission and scope of the agency, primarily because the correct use of the term "sanitation" is widely unknown. Does the name need to change? • While the public would like to know what the agency does, they do not engage directly with OCSD. • Employees want a more descriptive name but lack the will to change. • EMT members want a new name • The Board appears to lack the political will to take on the issue of a name change. JIU recommendation: Do not change the name or logo. It is too costly for the benefit received. Instead, consider adding a more descriptive tagline that becomes integrated with the name and logo. Taglines are used by many companies to clarify their name and deliver additional messaging about themselves. (See page 17 and 18 for examples.) A tagline can be phased in as new materials are printed, vehicles are acquired or refurbished and supplies are restocked. 24 Executive Park, Suite 250, Irvine, CA 92614-6738 phone fax a-mail 9 4 9.8 5 2.5 9 6 0 949.852.2090 mail@j-u.com I" I Orange County Sanitation District Corporate Identity Program Phase 1 Final Report 10/4/04 Background and Scope of Project On March 11, 2004, OCSD issued an RFP to find a qualified firm or consultant team to conduct customer awareness and perception surveys to gather baseline information and report on findings. This was deemed Phase 1. Phase 2 is planned to be a review of the current Corporate Identify System and assessment of all data from Phase 1, resulting in a recommendation for change or no change. Phase 3 would then be educational marketing campaign to promote a positive agency image and identity to the general public and target audiences in OCSD's service area. Phases 2 and 3 were scoped to be handled under a separate procurement from Phase 1. RFPs were due on April 20, 2004 and Johnson IUkropina received notice to proceed on May 21, 2004. The kickoff meeting with OCSD Communications Staff and JIU project team was held on June 3, 2004. The team collectively determined that research must be completed for the October cycle of EMT, I FAHR and Board meetings. The goal of this identity project is to establish a corporate identity system that clearly communicates the Orange County Sanitation District's function and vision. Overall corporate identity objectives include: • Increase public awareness of who OCSD is and what the District does • Have the public perceive OCSD as the essential service it is • Position OCSD within the community • Reinforce positive messages .r • Determine the needs and expectations of the Community • Increase stakeholder involvement Phase 1 consists of qualitative and quantitative research analysis. The tasks and deliverables are as follows: Tasks 1. Conduct research studies of: a. OCSD's service area demographics and ethnic groups b. OCSD as referenced in the media, including past and current events from news articles, technical journals, broadcasts and OCSD press ,NN releases c. Peer review of OCSD to similar wastewater treatment agencies or publicly-owned treatment works .d rr Orange County Sanitation District Page 4 Corporate Identity Program— Final Report I 2. Establish customer and stakeholder baseline information: a. Conduct four focus groups and 500 random telephone surveys with general public to explore identity, image and awareness of OCSD b. Conduct representative random telephone surveys with 50 OCSD «� employees, board members and Executive Management Team to evaluate their opinion of OCSD's image and identity and what they perceive customer's opinions to be Deliverables 1. Report, including an executive summary and separate review of findings for each element of the statement of work tasks, and appendices with raw or supporting documentation. Project Methodology Because of the need to collect a vast amount of information in a compressed timeframe, the JIU project team elected to conduct external residential ratepayer research concurrently with internal interviews with employees, EMT and board members. Simultaneously, the team collected market information about the service area, press relations and conducted peer reviews. External residential ratepayer research was conducted by FLEXO HINER & Partners and the balance of the research was conducted by JIU. The analysis contained in this report was performed by JIU. Task is — Service Area Demographics OCSD service area demographic/ethnicity tables can be found in Appendix 1. Demographics were used to ensure an appropriate balance of participants were solicited for the focus groups and quantitative telephone survey. Task 1 b— Media Review JIU undertook a media review to see how the agency and the media characterize the name of the agency. OCSD Internally Prepared Documents Internally, OCSD refers to itself as: • Orange County Sanitation District • Orange County Sanitation District (OCSD) i • Orange County Sanitation District (District) 0 OCSD .d Orange County Sanitation District Page 5 Corporate Identity Program—Final Report Press releases found at ocsd.com sometimes use the full name in the title and sometimes the acronym OCSD. The full name always appears somewhere in the release albeit one was found ••� where it only appeared as the "where" for a public meeting and OCSD was used otherwise. Some releases use the full name and the acronym and some use only the full name in the headline or leading copy line. If the acronym is not in the lead, it may still be used in the body of the release without explanation. Two fact sheets found on the site refer only to OCSD although the logo is also on the page; and the assumption is that people can determine the authoring agency. Two other fact sheets used the full name and the acronym Some technical documents found on the site use "District" after the full name instead of the acronym. +�+ Search Engines Popular internet search engines Google, Go2, Lycos, MSN and Yahoo were utilized to search keywords OCSD, sanitation, sanitation district, wastewater, wastewater treatment and sewage. All searches for OCSD returned Orange County Sanitation District in the first or second position. The second position (google) does not alphabetize through the URL so Sheriff Department (org) places before Sanitation District (com). These searches all also returned Sheriff in 1 s, or 2"d position with Oswego two School District, Oxford Learning Center and OCSD Interactive Games rounding out the top 5. The following table shows the relative position of OSCD for each search term: OCSD Sanitation Sanitation Wastewater Wastewater Sewage Now District Treatment Google 2 2 Not in top 5 Not in top 5 Not in top 5 Not in top 5 No go2 1 3 Not in top 5 Not in top 5 Not in top 5 Not in top 5 Lycos 1 2 Not in top 5 Not in top 5 Not in top 5 Not in top 5 msn 1 2 Not in top 5 Not in top 5 Not in top 5 Not in top 5 Yahoo 1 2 Not in top 5 Not in top 5 Not in top 5 Not in top 5 I `r Orange County Sanitation District Page 6 Corporate Identity Program—Final Report Note that the city of Austin was in the top 5 for"wastewater" under Google. King County was in the top 5 for "wastewater treatment" under Google, MSN and Yahoo. The following table shows the number of returns against each search term: OCSD Sanitation Sanitation Wastewater Wastewater Sewage District Treatment Google 15,400 332,000 2,200,000 1,200,000 2,700,000 2,200,000 go2 Lycos 3,000 8,600 484,000 293,000 492,000 545,000 msn 3,000 8,300 473,000 299,000 472,000 552,000 Yahoo 16,000 417,000 2,300,000 1,500,000 2,400,000 2,620,000 Note that go2 does not provide volume of results for searches. Newspapers Two hundred forty-two (242) items were found for OCSD in a search of y Orange County Register ster (includes Irvine World News, Fountain Valley View, Huntington Beach Wave and Laguna News Post) archives (2002 to present). At least half were classified/employment ads. Twenty-eight (28) articles were read. One was not about OCSD (it was about other sanitation district rates) and might have been a sidecar to a story about OCSD run the same day. None of the articles used the full name in the title (most frequently "sanitation district" appeared in headline) although most used the full name the first mention and moved to "sanitation district' or "district" or "agency" in subsequent mentions. One article used only "O.C. Sanitation District' in the story. Four of the 27 articles also used the acronym OCSD. Forty-two (42) items were found in the Los Angeles Times (includes Huntington Beach Independent, Daily Pilot and Coastline Pilot) archives (2002 to present). All were articles —there were no classifieds. `w Fifteen of the sixteen (16) articles read made first mention of "Orange County Sanitation District." One article was about Orange County pension payments too in general and referenced "...Orange County Transportation Authority, the I Sanitation District and the Fire Authority." ow Orange County Sanitation District Page 7 Corporate Identity Program—Final Report I Roughly equal percentages of the articles had positive and negative slants regarding the agency (32% and 34% respectively). A significant percentage were simply factual reports (23%) and the remainder were not specific to any event or issue at OCSD (11 Articles long enough to reference more than one time generally followed first mention with "the district," "sanitation district,"or "the Agency." Technical Journals In the timeframe of the research compilation, only online sources could be checked. Articles were found in Water & Wastes Digest, U.S. Water News and Water Environment Research. All references in Water & Wastes included full name albeit one story abbreviated California as "Calif." U.S. Water News, in a 1998 article, referred to the organization as "County Sanitation Districts of Orange County." Mai Summary Task 1 b There are varying degrees of inconsistency with which the organization is -� named in the media yet most often the communication is clear that OCSD/Orange County Sanitation District is the subject. Writers apparently I carefully consider the audience and use appropriate names, acronyms and abbreviations to ensure clarity of communication. Task 1 c — Peer Review JIU conducted interviews with four agencies: Metro Wastewater Reclamation District (Denver) Steve Frank, Public Information Officer, (303)286-3000 .r Sanitation Districts of Lost Angeles County Joe Haworth, Information Officer, (562)699-7411 fto Central Contra Costa Sanitary District Harriette Heibel, Community Affairs Manager, (925)229-7310 Irvine Ranch Water District. Pat Brockley, Purchasing Manager, Susan Gallagher, Purchasing Coordinator, (949)453-5300 Johnson IUkropina was unable, after multiple attempts, to make contact with King County Department of Natural Resources and Parks of Washington, East Bay Municipal Utility District, and Sacramento Regional County Sanitation District. Orange County Sanitation District Page 8 Corporate Identity Program—Final Report i It was difficult to establish contact with the person at the above agencies who could provide information about agency identities, experiences with name recognition, name confusion or name changes and branding strategies and programs. For the most part, the agencies contacted could identify the mission or vision of their agency but either did not have knowledge of a brand i ngAd entify strategy or advised that it was not a priority or concerted effort at their agency. Reviews of their websites and collateral material demonstrate varying levels of brand implementation. Target markets are universally acknowledged to be "anyone who flushes a toilet' and to some extent additional stakeholders such as local government were also acknowledged as a target audience. bow Overall, the agencies interviewed acknowledged that the public has little interest in their services and little involvement unless impacted personally by -�+ a particular issue. I A higher emphasis was placed on public outreach and education. Outreach efforts discussed include: • Newsletters (up to two per year) • Public Meetings (town hall type where public is invited in to ask questions) • Participation in events/shows with booths (e.g. Home & Garden) • Alignment with environmental groups • Alliances with diverse groups from Girl Scouts to local farmer associations • Partnerships with water district if not the same agency • Regular contact with news reporters/agencies • Web support (e.g. customer service and FAQs) • Visits to schools from brief presentation/videos to week long simulated treatment plant on school site • Tours for public, interested groups and particularly schools (including provision of bus transportation for students) Effectiveness, if measured, was often based only on quantity of people contacted. One agency tests students before and after class visits or tours. Of the agencies contacted, Metro Wastewater Reclamation District undertook a name change in 1990 from the Metropolitan Denver Sewage Disposal District No. 1. `r Orange County Sanitation District Page 9 Corporate Identity Program—Final Report i Summary Task 1 c When the activities of peer agencies are compared against OCSD's corporate identity objectives, it becomes clear that their focus is mostly about outreach and in increasing public awareness of who the agency is and what it does. To a lesser degree is the attempt to increase stakeholder involvement. Brand efforts such as positioning the agency as delivering the essential service it provides as well as positioning within the community is assumed to come as a result of outreach activities. Most peer agencies are not engaging in true branding as a strategized priority. The belief is that outreach brings education and awareness, which translates to branding. The missing link is branding that leads to "investment" — stakeholder knowledge and understanding at a level that satisfaction, kinship and even ownership is present. "I know them." "They understand me ,.� and take care of my needs." "They do things the way I would." "I prefer to do business with them." "I trust them."These are the stakeholder investments that can be missed when outreach is substituted for branding. Outreach can certainly educate the public about what you do and who you are but it does not build the bond that branding solidifies. Task 2a —Qualitative (Focus Groups) Survey Methodology Four focus group discussions were hosted by Flexo Hiner June 29-30, 2004— two each in Irvine and Orange. The primary purpose of the focus groups was to collect information in preparation for the telephone survey and to "take the pulse" of the public regarding OCSD. ,.. Participants were screened to include only registered voters, with the rationale that registered voters would generally be more informed about issues impacting the county. Roughly equal numbers of participants were: • Homeowners and renters • Married and Single • Clusters of ages 18-35, 36-55 & 56+ years of age Caucasian and other ethnicities Male and female 9 With and without children at home I ar Orange County Sanitation District Page 10 Corporate Identity Program—Final Report w+ I Participants by community were as follows: Number of City Participants Anaheim 2 Costa Mesa 1 Fountain Valley 2 Fullerton 1 Garden Grove 2 Huntington Beach 4 Irvine 3 Newport Beach 1 Orange 1 Placentia 2 Santa Ana 8 Tustin 5 Villa Park 3 Yorba Linda 3 Summary of Focus Group Findings OCSD is, for residents, a blank page. There is virtually no awareness of the name or acronym OCSD and little is known about the agency's functions. The current name communicates the wrong identity. The individual words of the name imply functions that are very different from reality. And, when the functions that it does handle are outlined for residents, they do not include all that residents would expect. • Recognition of the name "Orange County Sanitation District' was virtually zero. • When asked to speculate about its functions the most often mentioned were "trash collection" and "sewage" (not"treatment'). Other functions are attributed to OCSD — no doubt based on the confusion about trash collection — such as recycling and landfills. Residents did not appear overly concerned that "Orange County" within the District's name doesn't encompass the entire county. • This part of the name does imply coverage of the entire county. There is, however, little concern that the coverage is not the entire county • There is little concern that the name implies that the district is overseen by the Board of Supervisors versus a Board composed of city council officials Orange County Sanitation District Page 11 Corporate Identity Program— Final Report Task 2a — Quantitative (Telephone) Survey The qualitative phase of the residential research was designed to fuel development of the questionnaire that was used in the quantitative phase that is reported here. The quantitative study has sought to determine quantitatively: • The incidence of confusion among OCSD served households about its y' identity (role and responsibilities) • Strategic and tactical priorities that residential households would like to see in the conduct of those agencies of government who manage water. Methodology Randomly selected households in the OCSD service territory were contacted by telephone by Flexo Hiner. 501 interviews, averaging 8 minutes in length were completed. The specific respondent in each household was either the utility bill-payer (renters) or the person who typically pays the property taxes (homeowners). The portion of all respondents from the following communities in this survey: Anaheim 12% Huntington Beach 11% Irvine 9% Fullerton 8% Garden Grove 8% Orange 8% Santa Ana 7% Newport Beach 6% Yorba Linda 5% Fountain Valley 4% Costa Mesa 4% Tustin 4% La Habra 3% Placentia 3% Brea 2% Seal Beach 1% Westminster 1% Los Alamitos 1% Cypress <0.5% Stanton <0.5% Villa Park <0.5% Midway City <0.5% Now Other 3% t" WW Orange County Sanitation District Page 12 Corporate Identity Program—Final Report Study participants included: Renters 27% Homeowners 73% Married 60% Not Married 40% With children at home 45% No children at home 55% Caucasian 66% Hispanic 12% Asian-American or a Pacific Islander 8% Native American 2% African American 2% Other 7% Refused /Don't Know 3% Now 18-35 20% 36-55 43% 56+ 37% .r Findings I OCSD has very low (4%) unaided awareness, which rises to 74% when added with aided awareness. On an unaided basis ("who is responsible for..."), respondents were virtually unable to name OCSD's service functions. On an aided basis, 30% of the respondents ascribed garbage collection and 27% sewage treatment and disposal functions to OCSD. By far, city governments are perceived most often to be responsible for the task of water treatment (28%), garbage collection (31%), supplying water to homes (42%), water reclamation (11%) «. and storm drainage system (16%). The survey also delved into the priorities for agencies of government who have responsibility for managing water to help understand what the public perceives as important. The number one social value is "protecting public health" (71%) followed by "being proactive" [in decision making] (65%). The respondents were then asked about tactical priorities and forced to make tradeoffs. The top tactical priority was "protection of the groundwater from industrial pollution" (67%), which is a reflection of the protection of public health priority mentioned above. Clustered in the next set was "assurance of a reliable water supply" (58%) and "safe disposal of treated sewage water" too (56%). Now WW Orange County Sanitation District Page 13 Corporate Identity Program—Final Report Telephone Survey Conclusions In the final report for the quantitative report, Flexo Hiner emphatically states that the OCSD identity must be changed. It is clear that the public is confused about who is OCSD and what it does. The current name gives the public no clues about its scope or mission. The priorities of residents in the context of an agency that has water management responsibilities are clear. They want to know OCSD is an agency that: • Proactively protects public health • Helps assure future water supply • Does so in an honest and trustworthy manner Flexo Hiner concludes with a possible positioning to resonate with the general public: build the reputation as the water agency that Proactively Protects Public Health. Task 2b— Employee, Board and Executive Management Team Interviews Concurrent with the focus groups and quantitative survey, JIU conducted I interviews from June 16 to September 8, 2004 with the following groups of stakeholders within the OCSD organization: • Employees: 46 telephone interviews completed. (Over 300 calls were placed in attempt to interview 50 employees.) • Executive Management Team (EMT): 8 in-person interviews completed. (Only the GM was included in scope of work. Scope was expanded, with no change order, to include entire team.) • Board Members: 11 interviews completed. (10 in-person, 1 telephone.) �+ The subject of the interviews was to gather respondent perceptions of the OCSD name and how they refer to the agency when speaking with members of the public, what confusion may exist, and if they were going to rename the agency, what that name would be. As a baseline, it is interesting to note that almost every single employee voluntarily expressed pride in the agency. They were able to express the mission of the agency and believe that they personally, and the agency as a whole, are fulfilling that mission every day. With EMT members, each was cognizant of the mission and of the existing and under-development unifying strategies of the organization. No Orange County Sanitation District Page 14 Corporate Identity Program—Final Report I In general, most employees, EMT and board members acknowledge that the public is confused by the term "sanitation." While it is a technically accurate term, it is often confused with trash and solid waste. The term also does not encompass what many see as the expanded mission of the agency: management of wastewater, pollution control and watershed protection. Most respondents prefer incorporating terms within the name that are more descriptive of the agency's activities, such as (in alphabetical order): • Pollution control • Wastewater management • Wastewater treatment • Water protection • Water quality management • Water resource management • Water treatment • Watershed management Respondents indicated, to a much lesser degree, that the name "Orange County" causes some confusion with the County of Orange and because the District does not cover the entire county. Several respondents recalled the District's previous name (Consolidated Sanitation Districts of Orange County) as being more descriptive of the geography and not implying total blanket saturation of the county. Yet, when asked if the agency needs a new name, the results were clearly mixed: employees and the board were less in favor of changing the name, whereas the EMT was more strongly in favor of a name change. Employees who did not want to change the name generally felt there was not a better ,.� name. Those who wanted to change felt a new name would cause less confusion. EMT members felt that the current name doesn't capture the essence and mission of the agency and a new name could be more descriptive. Board members not in favor of the name change were either satisfied with the current name or were concerned about the cost of the name change and uncertain whether the confusion justified such expenditure. There does not appear, from the sample pulled, to be sufficient political will to undertake a name and identity change. Summary Task 2b I While it is generally felt that the current name does not encompass the scope Now or mission of the agency and, in fact, causes confusion in the public, there is "r Orange County Sanitation District Page 15 Corporate Identity Program— Final Report no strong conviction that the name could or should be changed. Employees do not see that a name change would result in an improvement, in other words, they do not see a benefit of changing the name of the organization. This is not surprising because most people tend to resist change. EMT members are more inclined to look favorably at a change. While the board was clearly mixed, this does not appear to be the issue to arouse �+ passion and cause a groundswell of support to override the concerns of those members who feel it is imprudent to change. low Conclusion From OCSD's Communication Service Strategic Plan FY 03-04, OCSD has a `�' wide list of audiences. In the following table, we've broken down those audiences based on the communication they receive about OCSD: No Name & Logo Name Only Possibly Not Even Name Board of Directors Community leaders Business and industry �+ County of Orange, Elected officials — local, Chambers of Commerce Board of Supervisors state and federal within the service area Employees Environmental Groups General public and the community Media — local, regional, Opinion leaders Ratepayers state and national Orange County Grand Jury Schools/students Regional, state and Stakeholders national regulatory agencies Special interest groups Taxpayer groups (Orange County Taxpayers Association) Trade organizations (e.g., AMSA, CASA, CWEA, WEF Water districts and producers (e.g., OCWD, MWDOC) Note that audiences are categorized in the table based on direct contact with OCSD — not based on what they may hear/read in media reports, which would typically be a name or abbreviation only. kEw Orange County Sanitation District Page 16 Corporate Identity Program—Final Report I Research conducted through this contract reveals much confusion about the identity of OCSD. This is not surprising in light of the fact that OCSD as an agency is virtually transparent to the general public; there is no monthly or quarterly bill aside from a possible line on a city utilities billing (see sample in ,ow Appendix 3) to tie the agency to the public's consciousness and the line item on the property tax bill (OCSD Sewer Use Fee—see sample in Appendix 3) is not enough to raise public consciousness. Unless there are issues "in the public" eye being reported by the media, there is little contact, and little desire for contact, between the public and the agency. low The quantitative survey does indicate that confusion over the identity of OCSD can lead to public perception that the agency's total mission is not being fulfilled. However, this must be weighted against the potentially WW monumental task of clarifying the agency identity—with no guarantee of success with an audience that admittedly isn't that interested on a daily basis — and the cost of such an attempt. There is also a factor that the public will �+ not accept the clarifying communication unless it is relevant to them at the time and, again, the audience has expressed some disinterest in learning more as it relates to wastewater. This research (quantitative and all the qualitative tasks) tells us that there is interest from the public that the "job gets done" and even more interest in securing a safe and plentiful water supply and protecting the environment. While the present name of the agency doesn't help clarify the agency's low services, mission or scope, it also does not apparently do damage to the agency either. Ind Although not in the scope of this contract (Phase 2 is planned for review and assessment of the current identity and recommendation for possible change), am research under this contract does not indicate sufficient political will to make a name change viable at this time. JJU would suggest the following options for OCSD when it comes to an identity change: 1) No change. With this option nothing is changed and subsequent phases of this program would entail the building of a brand identity manual that includes the brand personality of the agency as well as the graphic standards for use of the existing name and the existing logo. Cost implication for building the manual is estimated from $5,000 to $7,500. Distribution and implementation of the manual is unknown. This option is not recommended since there is opportunity for improved l communication and because the existing name and logo do not convey the current business strategy, scope, mission or position of the agency. kMM Orange County Sanitation District Page 17 Corporate Identity Program—Final Report i 2) Keep the name and change the logo. Under this scenario only the logo would be changed with the aim of bringing clarity of mission/scope to agency communication. Logo changes can range from $5,000 to as much as you could possibly budget with costs dependent on the firm selected for the project, the number of explorations and the number of revisions. Estimate for an organization the size of OCSD is $25,000-$50,000. As with Option 1, implementation costs could not be estimated with the data available. This option is not recommended based on the fact that the logo is often not part of the communication and therefore would be an expensive but oft unused adjunct. Additionally, there is considerable debate and derision over the current Los Angeles City logo situation and OCSD would undoubtedly be associated with it in some way. 3) Change the name and the logo. This implies and entails a massive effort, not just in developing a new name and logo to satisfy all the requirements of the agency's mission, strategies and positioning but also the myriad of stakeholders in the process. As with Option 2, this can be a costly project. Estimates are in the $35,000 to $75,000 range with implementation unknown. This option is not recommended based on the extensive cost involved and the fact that there is apparently not support from the board to make such a change. 4) Add a tagline to the existing name and logo. This allows the agency to clarify the communicated confusion of the name and logo with a brief statement that becomes permanently associated with the name and logo. Delivery of a tagline could be in the $5,000 to $15,000 range. As with the other options, implementation costs are unknown. This tagline could be phased in as new materials are printed, added to vehicles with decals, etc. A tagline can be used to clarify an organization's services/products and �+ deliver additional messaging that the organization wants their customer to have —even when the company name might be meaningless. As an outgrowth of a company's positioning, it can be the underpinning on which communication is built. Examples include: • People Soft "We work in your world" I • Lincoln "What a luxury car should be" • Timken: "Leader in bearings and steel" 0 PK Ware "The data compression experts" tow Orange County Sanitation District Page 18 Corporate Identity Program—Final Report i • Netcom "We put the Net to work for you" • Microway "Technology you can count on" • Anderson Consulting "Business performance improvement" • Dell Computer "Be direct" Mal • The United States Post Office "We deliver" • Ameritech "In a world of technology, people make the difference" • Citibank "The Citi never sleeps" 'md • Jazz Jamaica "The world's favorite dance band" • General Electric: "We Bring Good Things To Life" "Imagination at Work" kmd • Hyatt Hotels: "We've Thought of Everything" • Lexus: "The Relentless Pursuit of Perfection" WW • British Airways: "The World's Favorite Airline" • King County Department of Natural Resources "Clean Water — A Sound Investment' ,o, • Metro St. Louis Sanitation "Your Clean Water People" • Inland Empire Utilities Agency "Clean, inexpensive, plentiful water" • Monterey Regional Water Pollution Control Agency "Turning WNW Wastewater into Safe Water" • Union Sanitary District "Protecting human health and the environment" • Mt. View Sanitary District"A Friend to the Environment" • Ontario Water Agency "The Clean Water Experts" • Tacoma Water "Pure. Reliable. Precious Water. • Fox Metro Water Reclamation District"Giving Water a Second Chance" tow • D.C. Water & Sewer Authority "Serving the Public. Protecting the Environment." kw • Sacramento Regional Sanitation District "Technology in Balance with Nature" Based on the research from Phase 1, the option of adding a tagline to the existing name and logo would be Johnson I Ukropina's recommendation for OCSD. Such a tagline can clarify the confusion engendered by the word "sanitation" in OCSD's name. We do not believe that the tagline needs to clarify confusion about OCSD's service area, which is not a relevant issue to most people. It should communicate the agency's mission, to some degree its scope and solidify in the consumer's minds that the agency is working for them, on issues important to them. I now �I �I �I i r i , I I I I 1 1 Environmental Stewardship 5' c� fn N I , T +1 LLI W M -� c t.. I ;�; � ��►�/ice. j�� . . Wastewater Management • - dF • • 1 1 1 m ONO mb aw ORANGE COUNTY SANITATION DISTRICT ORANGE COUNTY, CALIFORNIA 40 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2004 Mw wj Prepared By: Department of Finance Accounting Division Michael D. White, CPA ,�, Controller I� I..I �W (THIS PAGE LEFT INTENTIONALLY BLANK) .V �1 E W u W W 6r i ea WO ORANGE COUNTY SANITATION DISTRICT Comprehensive Annual Financial Report Table of Contents 40' For the Year Ended June 30, 2004 Pape INTRODUCTORY SECTION: Letterof Transmittal..................................................................................................................... i GFOA Certificate of Achievement............... "' CSMFO Certificate of Award ....................................................................................................... ix Board of Directors OrganizationChart....................................................................................................................... xi Mapof Service Area..................................................................................................................... xii �a FINANCIAL SECTION: Independent Auditors' Report....................................................................................................... 1 Management's Discussion and Analysis—Required Supplementary Information....................... 3-8 Basic Financial Statements: Statement of Net Assets...................................................................................................... 10 Statement of Revenues, Expenses, and Changes in Net Assets ...................................... 11 Statementof Cash Flows.................................................................................................... 12 Notes to Basic Financial Statements................................................................................... 13-27 Supplementary Information: Combining Statement of Net Assets ................................................................................... 30 Combining Statement of Revenues, Expenses,and Changes in Net Assets .................... 31 Combining Statement of Cash Flows.................................................................................. 32 Schedule of Changes in Net Assets by Activity and Revenue Area.................................... 33 STATISTICAL SECTION: Net Assets by Component—Last Four Fiscal Years ................................................................... 35 Revenues and Gross Capital Contributions by Source-Last Ten Fiscal Years.......................... 36 Expenses by Type- Last Ten Fiscal Years.................................. ......... 37 ....................................... Change in Net Assets—Last Four Fiscal Years ................................................... Cash and Investments Reserves Balances—Last Ten Fiscal Years .......................................... 39 tow Cash and Investment Portfolio—Current Fiscal Year.................................................................. 40 Assessed and Estimated Actual Value of Taxable Property- LastTen Fiscal Years............................................................................................................... 41 Property Tax and User Fee Levies and Collections-Last Ten Fiscal Years............................... 42 1;10 Property Tax Rates- Direct and Overlapping Governments- LastTen Fiscal Years............................................................................................................... 43 Principal Users—Current Fiscal Year and Nine Years Ago......................................................... 43 No Number of Accounts and Revenues by Customer Class—Last Ten Fiscal Years...................... 44 Annual Sewer Service Charges, SFR—Last Five Fiscal Years and Next Fiscal Year................ 44 Comparison of the Volume of Wastewater Treated With Revenues and Expenses- LastTen Fiscal Years.............................................................................................................. 45 ow Property Value and Construction - Last Ten Fiscal Years ........................................................... 46 Ratio of Annual Debt Service for Bonded Debt to Total Expenses—Last Ten Fiscal Years....... 47 Bond Coverage- Last Six Fiscal Years........................................................................................ 48 Computation of Direct and Overlapping Debt—Current Fiscal Year........................................... 49 Demographic Statistics-Last Ten Fiscal Years Estimated Populations Served by the Orange County Sanitation District.................................... 51 Insurancein Force........................................................................................................................ 52 Authorized Full-time Equivalents by Function—Last Ten Fiscal Years ....................................... 53 Biosolids Produced - Last Ten Fiscal Years ...................................... ......... 54 ................................. MiscellaneousStatistics............................................................................................................... 55 e. L,F W (THIS PAGE LEFT INTENTIONALLY BLANK) W � I is W I, W U i 1, Wei ammi ; dr Introductory Section r w r rr1 r see troduct°ry �n ORANGE COUNTY SANITATION DISTRICT 9 i Ij September 3, 2004 phone: 714)962-2411 The Board of Directors of the fax: Orange County Sanitation District, 714)962-0356 Orange County, California www.ocsd.com mailing address: Submitted herewith is the Comprehensive Annual Financial Report of the Orange County Sanitation P.O. Box 8127 District, Orange County, California for the fiscal year ended June 30, 2004. This report includes the untain Valley,CA sz7ze 8 CA financial position and activity of individual revenue areas, as described within the Governmental Structure below, as of June 30, 2004 and was prepared by the Accounting Division of the District's Finance street address:444 Ellis Avenue Department. ,-jntain Valley,CA �. 92708-7018 Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the District. To the best of our knowledge and belief, the enclosed Member data is accurate in all material respects and is reported in a manner designed to present fairly the financial Agencies position and results of operations of the District. All disclosures necessary to enable the reader to gain an ® understanding of the District's financial activities have been included. Cities The report presented herewith consists of three parts: (1) an introductory section consisting of a letter of �. Anaheim transmittal, awards received for the prior year's Comprehensive Annual Financial Report, a listing of the Brea Board of Directors, an organization chart, and a map of the individual revenue areas; (2) a financial Buena Park Cypress section consisting of the independent auditors' report, Management's Discussion and Analysis of the Fountain Valley Financial Statements, basic financial statements, and supplementary financial statements and schedule of Fullerton the individual Revenue Area Funds; and (3) a statistical section consisting of pertinent financial and Garden Grove nonfinancial data that resents historical trends and other information about the District. mtington Beach p Irvine La Habra Included within the accompanying financial statements are all of the organizations, activities, and functions La Palma Los Alamitos controlled by the District's Board of Directors in accordance with the Governmental Accounting Standards Newport Beach Board Statement Number 14, "The Financial Reporting Entity For the purpose of this evaluation, control Orange was determined by the Board's responsibility for: (1) adoption of the budget and user charges, (2) taxing Placentia authority, and (3) establishment of policies. The reporting entity and its services are described in further Santa Ana Seal Beach detail in Note 1 of the financial statements. Stanton Tustin Villa Park GOVERNMENTAL STRUCTURE Yorba Linda f inty of Orange The Orange County Sanitation District encompasses the Northern section of Orange County. The District provides wastewater treatment for an area of the County covering 471 square miles and serving a SQnitary Districts population of approximately 2.4 million, or 81 percent of the County's population. The District was originally incorporated in 1954 as nine separate public corporations, or districts. In April of 1998, at the Costa Mesa District's request, the Board of Supervisors of the County of Orange passed Resolution No. 98-140 Midway City ordering the consolidation of these nine County Sanitation Districts into a new, single sanitation district, to 'ater Districts be known as the Orange County Sanitation District, effective July 1, 1998. This action was recommended to the Board by the Local Agency Formation Commission in order to simplify governance structures, rrv"'' H""''' 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 T to as nine individual revenue areas through June 30, 2000. Effective July 1, 2003, all Revenue Areas, except Revenue Area 14, consolidated user fee rates and all enterprise fund accounting and budgeting activities and are now known as the Consolidated Revenue Area. i To maintain world-class leadership in wastewater and water resource management. 4� �J The District is managed by an administrative organization composed of directors appointed by the r agencies or cities which are serviced by the District. Each of the two remaining Revenue Areas, the Consolidated Revenue Area and Revenue Area 14, has its own budget and is 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 f own share of the one-percent ad valorem property tax levy. In addition, all Revenue Areas except LI 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. { ` 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. {•� The District sewerage system includes approximately 650 miles of sewers that convey wastewater i 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 Huntington Beach. Plants No. 1 and No. 2 have primary treatment capacities, including standby, of 108 million gallons per L� day (mgd) and 168 mgd, respectively. Approximately 60 percent of the 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 f - Huntington Beach coast through an outfall pipe that is 120 inches in diameter and approximately five miles i long. The last mile of the outfall pipe is a diffuser that dilutes the wastewater with seawater in a ratio of t.+ 148 parts seawater to one part treated wastewater at an average depth of 185 feet. ECONOMIC CONDITIONS AND OUTLOOK J The Anderson Center for Economic Research at Chapman University is forecasting a continuing recovery for Orange County from 2002 with a high of 3.3 percent growth in their economic indictor series, a composite of all of the major economic forces, in the fourth quarter of 2004 and the first quarter of 2005. In addition, job growth is expected to continue to grow 2.5 percent during this same time period. This 1 + translates to an average annual percentage increase of 1.9 percent in 2004 and 2.1 percent in 2005, with net job creation of about 27,200 jobs in 2004 and 29,900 in 2005. The unemployment rate for Orange County decreased from 4.0 percent in FY 2002-03 to 3.6 percent in FY 2003-04. Total taxable sales is forecasted to increase 4.8 percent in 2004 and 4.9 percent in 2005 while personal income is forecasted to increase over the same time period 5.1 percent and 5.5 percent, respectively. Fueled by the growth on the job front, nonresidential valuation is forecasted to increase 7.9 percent, or $79.9 million in 2004 and 4.3 percent, or$46.3 million, in 2005. Although residential valuation is expected to achieve a 14.8 percent, or $308.0 million growth in 2004, a decline of 3.3 percent, or $33.4 million is forecasted for 2005. According to Chapman University, higher long-term interest rates will more negatively impact resale housing activity. As measured by the number of deeds recorded, resale activity is forecasted to decline about 12 percent. r•�+ Chapman University is not forecasting an imminent housing price decline. Current supply conditions remain tight and point to continued housing price appreciation, at least for 2004. The unsold housing �.rl inventory for new homes is at historic lows. The median number of days it takes to sell a home is also at its lowest level in history. This factor is significant, since a major downturn in appreciation has never _ occurred without being preceded by a sharp increase in this indicator. ii Current mortgage rates are now around six percent. Chapman University is forecasting 8 percent mortgage rates by the end of 2005, which is similar to rates in 1999, yet this increase will almost double the monthly payment in 2005,just six years later. This is the major reason they are calling for a drop in resale housing prices of 2.7 percent in 2005. MAJOR INITIATIVES A New Ocean Discharge Permit The District's Board of Directors decided in July 2002 to voluntarily give up its modified ocean discharge permit, issued under section 301(h) of the Federal Clean Water Act, which allowed the District to discharge a higher level of Suspended Solids and Biochemical Oxygen Demand than otherwise required by the Act if we demonstrate adequate environmental and public health protection. It was for this reason, in fact, that the U.S. Environmental Protection Agency (EPA) and the State of California issued us the modified permit and consistently supported what we were doing. s To obtain a renewal of its ocean discharge permit without the modification (oftentimes referred to as a "waiver"), the District will undertake a massive capital improvement program ("CIP")of building new, and rehabilitating existing, facilities in order for the District to operate its facilities in a manner that will allow it to achieve secondary treatment standards as defined by the Act. d Achieving secondary treatment standards will take approximately 8.5 years to complete. Permits are issued for five (5)years duration, and the EPA has no authority to waive the discharge limits requirements or grant a longer permit (except per Sec. 301(h)). The alternative is to obtain a court order approving the schedule and decreeing that no penalties will be imposed for discharges that exceed the secondary treatment limits during the period of construction. A proposed Consent Decree is under negotiation by and among the District, EPA, and the State of California Regional Water Quality Control Board. It will be filed with the U.S. District Court with a request to approve it pursuant to the stipulated agreement of the parties. This will be done concurrently with the issue of the new ocean discharge permit. On July 21, 2004, the California Regional Water Quality Board and the EPA issued a public notice proposing to jointly reissue a National Pollutant Discharge Elimination System (NPDES) permit. Following a joint public hearing to be held on September 17, 2004, the California Regional Water Quality Board and the EPA will make a final decision on the approval of the District's NPDES permit. Groundwater Replenishment System aw The District and the Orange County Water District (OCWD) are currently developing the Groundwater Replenishment System (GWRS) project that will be the largest water reclamation project in the nation. GWRS is a joint effort by the two agencies to initially provide 78,400 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion W�' barrier. GWRS will have the capacity to divert up to 100 million gallons of water a day from the District's ocean vi discharge during peak winter storms, which will allow the District to defer construction of an additional ocean outfall at an estimated cost of$170 million. iii The District and OCWD have agr eed to match the funding for this project. The District alone has on of this budgeted $251.7 million through FY 2007-08. Through the cash flow outlay fold FY 2004-05 amount Federal and incurred with an additional $48.0 million included State Grants are expected to reduce these local costs. Biosolids Program The District produces approximately 650 tons of digested and dewatered biosolids per day. The District relies on land application of biosolids in Kern and Kings Counties in California, and at the Fort Mojave Indian Reservation in California, Nevada, and Arizona. Counties throughout California and Arizona have developed, or are in the process of developing, ordinances that severely restrict or ban the land application of Class B biosolids. Kern and Kings Counties have already banned land application of Class B biosolids. It has become clear that future requirements for managing biosolids will be more restrictive and costs will increase as current options are eliminated. The dynamic regulatory issues, land application ordinances and bans, and public perception challenges prompted the District to develop a Long-Range Biosolids Management Plan. This plan was approved by the Board in December 2003. The goal is to develop a sustainable, reliable, and economical program for long-range biosolids management providing environmentally sound practices that meet the stringent W federal, state, and local regulatory requirements. The Plan includes an analysis of potential technologies and markets for biosolids derived products, an analysis of treatment plant processes to reduce overall biosolids handling and treatment costs, and a long range implementation strategy. In order to transition from Class B to Class A biosolids production before the Class B market collapses, requests for proposals (RFP) have been released for biosolids management. These RFP's provide services and facilities to participate in the markets recommended in the Long Range Biosolids Management Plan. VW During FY 2004-05, staff will be performing due diligence in the analysis of permitting, site selection and financing options such as composting, peletization, and energy production. In addition, staff will be evaluating public/private partnership scenarios in the funding of these facilities that range from an estimate of$10-60 million. The costs to beneficially reuse biosolids are expected to increase by about $3 million per year starting in FY 2006-07. The FY 2003-04 budget for biosolids management alone is $9.7 million. Asset Management w In June 2001, the District began the initial development of a strategic level Asset Management (AM) Improvement Program that will be followed with the eventual implementation of specific AM improvement 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 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 assets. Being the sixth largest wastewater treatment facility in the nation, the District has a net capital asset value of $1.045 billion as of June 30, 2004 and anticipates the investment of approximately $2.1 billion in new capital assets over the next decade. W- The development of the Asset Management program was subdivided into two phases: Strategic Plan Development, and Implementation Plan Development and Implementation. The Asset Management 4, Strategic Plan was completed and adopted by the Board of Directors in December 2002. The strategic plan will include; an analysis of the current state of asset management at the District, the development of a basic and advanced asset management program tailored to the District, a gap analysis showing the 6W iv w needed changes for each level of asset management, a scope of work for the implementation phase of the effort, and approval of the plan from the Board of Directors. The Asset Management Strategic Plan is located on the District's website under special reports. Although the AM Strategic Plan was adopted by the Board in December, the size,complexity, and method for the implementation approach is still being determined. The AM Strategic Plan presented a business .r case for the District for implementation of advanced asset management practices. The business case showed that an expenditure ranging between $22 million and $38 million over a ten year period would conservatively save at least $350 million in life cycle asset costs over a 25 year period, save an additional $50 million in reduced capital expenditures, as well as put the District on track to developing a platform for sustainable infrastructure. In April 2003, the Board directed staff to submit the Asset Management Program to an independent peer review process with the intent of developing recommendations for the Board. That review was completed in November 2003 and was reviewed by the Board in February 2004. The recommendation from the independent review was for OCSD to implement advanced asset management practices. A staff driven approach was approved in April 2004 by the Board of Directors. Full implementation of the asset management program is projected to take up to eight years. As Asset Management is a process of continuous improvement, the future state of asset management will continually be reviewed. SERVICE EFFORTS AND ACCOMPLISHMENTS In August 2003, the District was the first public wastewater agency in the nation to receive national certification of its Biosolids Environmental Management System (EMS). An independent, third party auditor recently confirmed that the District's Biosolids EMS meets or exceeds the standards set by the National Biosolids Partnership. EMS is a modern management approach based on continuous improvement and environmentally sustainable practices. This certification will help convey that the District creates consistent, high quality biosolids. The program participants include the Source Control Division, who ensure that biosolids product is low in metals and other constituent, the Operation Division, who low ensure that the pathogens are adequately eliminated through heat treatment within the digesters, the haulers and appliers, who ensure that the biosolids are tracked and used properly as a fertilizer, and the Environmental Compliance and Monitoring Division, who ensure that the biosolids contractors are in compliance with EMS standards. to In January 2004, the District received the Wastewater Treatment Plant of the Year Award for the District's Plant No. 2 from the Santa Ana River Basin Section of the California Water Environment Association. The award winning plant demonstrated accomplishments in compliance, original practices, cost-effectiveness, and other indications of superior plant operations. ACCOUNTING AND BUDGETARY CONTROLS 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: (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. v 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 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. i+,r CASH MANAGEMENT The District's investment portfolio, except for the District's debt service reserves, investments with the 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 $112,427,000 at June 30, 2004 that has maturities out to 120 days, and a long- term investment pool of $388,447,000 that has average maturities out to 2.6 years. Investments of this L%� 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 totaling $88.0 million consist of bank investment contracts of$34.0 million with JPMorgan Bank and State Street Bank, maturing on August 1, 2013, and $54.0 million in U.S. Government securities and open- ended mutual funds. Investment income includes changes in the fair value of investments. Increases or decreases in fair value during the current year do not necessarily represent trends that will continue; nor is it always expected that such amounts will be realized, especially in the instance of temporary changes in the fair value of investments. Investment earnings for the year were $6,786,000, a decrease of $19,103,000 from the prior fiscal year _ total of $25,889,000. The decrease in investment and interest income is attributable to lower yields earned on investments that are somewhat offset by the higher cash and investment balances over the prior year. Cash and investment balances increased in FY 2003-04 from the prior year by$179.2 million from $427.1 million to $606.3 million, or 42.0 percent, primarily due to debt proceeds received from the - issuance of $280 million in certificates of participation. However, yields earned on investments declined from 5.80 percent to 1.31 percent during this same time period. ' The decline on the yields earned on investments can be attributed to the change in unrealized gains and losses from year-to-year. As of June 30, 2003, the District had unrealized gains on investments totaling $8,879,000. As of June 30, 2004, the District had unrealized losses of$2,617,000 for a total year-to-year decrease in investments of $11,496,000. The District's investment policy is structured conservatively towards liquidity to avoid having to sell investments at a loss and having unrealized losses become realized losses. In 1998, the District conducted an in-depth review of its reserve policy. This review included a survey of 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, 2004, the District's designated net assets totaled $427 million, and have been earmarked for the following specific purposes in accordance with the District's reserve policy: Designated For Cash Flow Contingency $ 71 million Designated For Self-Insurance 57 million Designated For Capital Improvements 390 million Designated For Debt Service Requirements 88 million Total Designated Net Assets $606 mi11iQ vi uw 404 RISK MANAGEMENT to For the year ended June 30, 2004, the District was self-insured for a portion of workers' compensation and property damage. The self-insured portion for workers' compensation is $500,000 per person per occurrence with outside excess insurance coverage to $50 million. The self-insured portion for property damage covering fire, and other perils other than flood and earthquake is $25,000 per occurrence with am outside excess insurance coverage to $750 million. The self-insured portion for property damage covering flood is $100,000 per occurrence with outside excess insurance coverage to $300 million. The District is self-insured for all property 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$250,000. District management believes that there are no outstanding claims as of June 30, 2004 that would materially affect the financial position of the District. 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, 2004. 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, 2004. 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, 2003. This was the tenth consecutive year that the District has received this award. In order to be awarded a Certificate of 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. 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 conducting the financial operations of the District in a responsible and progressive manner. bid Respectfully submitted, Michael D.White, CPA Controller vii W Certificate of Achievement U-6 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, 2003 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. OF ST&IS `CWMT= President - QUO jWW *0�oe�AO� Executive Director w w viii ,�, r California Societ o y (.�, nnicip aZ 7inance Of Leers Certificate of Award Outstanding Financial Reporting 2002-2003 Presented to the X Orange County Sanitation District This cerff"mare iv isvird in rerer,Qnl/rMr of Staerfards med rriferia is reporting wkich rejlee►a higk fetv,'of gnnli►j,it f/re nrnnrof fianneki slatewems and in fire uoAerfjin,T aecauurfingsist.+M fiAM which fAc.repur1A'"tore prL'parad. March 1. 2004 Ckmir,Profmicnal do Tr(l a eal Stauiardo Cammkvc Dedicaied to Excellence in Municipal Financial Management ORANGE COUNTY SANITATION DISTRICT Board of Directors As of June 30, 2004 AGENCY ACTIVE DIRECTOR ALTERNATE DIRECTOR Cities: Anaheim Shirley McCracken Bob Hernandez Brea Roy Moore John Beauman Buena Park Patsy Marshall Jim Dow Cypress Anna L. Piercy Tim Keenan Fountain Valley John Collins Larry Crandall Fullerton Don Bankhead Leland Wilson Garden Grove Bill Dalton Bruce Broadwater Huntington Beach Cathy Green Gil Coerper Irvine Beth Krom Christina Shea ad La Habra Steve Anderson Steve Simonian La Palma Paul Walker Larry Herman Los Alamitos Alice B.Jempsa Marilynn M. Poe Newport Beach Tod Ridgeway Don Webb Orange Carolyn Cavecche Steve Ambriz Placentia Norman Z. Eckenrode Judy Dickinson Santa Ana Alberta Christy Mike Garcia Seal Beach Charles Antos Paul Yost Stanton Brian Donahue David Shawver Tustin Tony Kawashima Doug Davert Villa Park Patricia Bortle Richard A. Freschi - - Yorba Linda Michael Duvall Keri Lynn Wilson Sanitary/Water Districts: Costa Mesa Sanitary District James M. Ferryman Arlene Schafer Midway City Sanitary District Joy Neugebauer Grace Epperson Irvine Ranch Water District Brian Brady Peer A. Swan County Areas: Member of the Board of Supervisors Jim Silva Chuck Smith i W x 1 vm ORANGE COUNTY SANITATION DISTRICT Organizational Chart Uw June 30, 2004 7GENERAL bd GENERAL COUNSEL OFFICE ADMINISTRATION HUMAN RESOURCES FINANCE INFORMATION OPERATIONS 8 TECHNICAL ENGINEERING AND EMPLOYEE TECHNOLOGY MAINTENANCE SERVICES DEVELOPMENT �d ADMINISTRATIVE HUMAN FINANCE INFORMATION OPERATIONS 8 TECHNICAL ENGINEERING SERVICES RESOURCES ADMINISTRATION TECHNOLOGY MAINTENANCE SERVICES ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION COMMUNICATIONS EMPLOYEE ACCOUNTING CUSTOMER& REGIONAL ENVIRONMENTAL PLANNING DEVELOPMENT) NETWORK COMPLIANCE& TRAINING SUPPORT ASSETS AND SERVICES MONITORING SAFETY& PURCHASING& PROGRAMMING FACILITIES ENVIRONMENTAL PROJECT �1 HEALTH WAREHOUSE &DATABASE MAINTENANCE SCIENCES MAp GI EMENT SYSTEMS SERVICES LABORATORY HUMAN PROCESS PROCESS SOURCE ENGINEERING& RESOURCES CONTROLS ENGINEERING CONTROL CONSTRUCTION INTEGRATION m' PLANT NO. OPERATIONS PLANT NO.2 �1 OPERATIONS MECHANICAL yy MAINTENANCES POWER PRODUCTION ELECTRICAL& INSTRUMENTATION MAINTENANCE AIR QUALITY& SPECIAL PROJECTS A ad ORANGE COUNTY SANITATION DISTRICT Map of Service Area As of June 30, 2004 LOS ANGELES COUNTY LA HABRA nl•..n�.i EA qR GO :Y" YORBA LINDA FULL TON „Pc1 c --a,A.. PLACENTIA CO p UENJ1 ANAHEIM O PARF� 5 I, - CYPRESS- - s e.r= VILLA ANAHEIM PARK ~ ILOS iSTANT, ON ORANGE ALAMITOS.�, GARDEN GROVE SEAL BEACH TERII M166AY .. 1 CITY e SANTA ANA TUSTIN 11.—A— ,. 1 FOUNTA VAL Y ir • :�4� • r HUNTINGTON , '- BEAC COSTA MESA _ 7 r• Reclamation j 4 IRVINE Plant No. 1 i I ` Treatment ^br�r NEWP T BEA Plant No.2 F ONtr EA �DITTO NO � 90 ? �F •A �- - Orange County Sanitation District(OCSD) �r xsoP.ncs.,en Orange County.CA Rev.1999 XII Y rr mi Ow IN wrf () 4: Ow Financial Section .r- nancial Section Fi 1201 DOVE STREET,SUITE 680 [ ,�f f- ' �/ NEWPORT BEACH,CALIFOR141A 92660 oreland C�� "yCC"1� tr!?.�/. (949)221-0025 CERTIFIED PUBLIC ACCOUNTANTS 570 RANCHEROS DRIVE,SUITE 260 SAN MARCOS,CA 92069 (760)752-3390 September 3, 2004 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, 2004, 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 States 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, 2004, 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. In accordance with Government Auditing Standards, we have also issued a report dated September 3, 2004 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 Government 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 as 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. 1 L (THIS PAGE INTENTIONALLY LEFT BLANK) L L L L L L L Ll ON s+ Management Discussion and Analysis June 30,2004 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, 2004. The information presented here is to be considered in conjunction with additional +d information provided within the letter of transmittal located in the Introductory Section of this report. Financial Highlights • As of June 30, 2004, the assets of the District exceeded its liabilities by $1,024.1 million (net assets). Of this amount, $517.3 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 $13.8 million, or 1.4 percent over the year. ■ Net Capital Assets, consisting of non-depreciable capital assets and depreciable capital assets net of accumulated depreciation, increased $105.5 million, or 11.2 percent over the prior year. ■ Net Assets invested in capital assets, net of related debt decreased $160.4 million, or 2.8 percent. ■ Unrestricted Net Assets increased $120.8 million, or 30.5 percent from the prior year. .r 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. In accordance with Governmental Accounting Standards Board (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. 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 cash flows. The statement reports cash receipts, cash payments, and net changes in cash resulting from operations and investments during the reporting period. Net Assets As previously stated, net assets increased $13.8 million, or 1.4 percent to $1,024.1 million in FY 2003-04 over the prior year. In comparison, net assets increased $36.4 million, or 3.7 percent, to $1,010.3 million in FY 2002-03 over FY 2001-02. r 3 (Dollars in thousands) Percentage _ June 30, June 30, Increase Increase 2004 2003 (Decrease) (Decrease) Assets Current and other assets $ 649,482 $ 465,661 $ 183,821 39.5% Capital assets, net 1,045,518 940,000 105,518 11.2% i..i Total assets 1,695,000 1,405,661 289,339 20.6% Liabilities Long-term debt outstanding 622,111 353,843 268,268 75.8% Other liabilities 48,757 41,471 7,286 17.6% _ Total liabilities 670,868 395,314 275,564 69.7% Net assets: Investment in capital assets, net of related debt 418,267 578,647 (160,380) -27.7% Restricted 88,519 35,182 53,337 151.6% _. Unrestricted 517,346 396,518 120,828 30.5% Total net assets $ 1,024,132 $ 1,010,347 $ 13,785 1.4% W Current and other assets increased $183.8 million, or 39.5 percent, due primarily to the issuance of $280.0 million in certificates of participation debt (COP) financing issued in August 2003, and is partially offset by the$105.5 million in capital improvements completed in FY 2003-04. Capital assets, net increased $105.5 million, or 11.2 percent, due primarily to the continuing capital �I improvement program that includes construction of 16 new primary clarifiers at Plant No. 1 that will add 96 million gallons per day of primary treatment capacity. In FY 2003-04, $24.8 million of the estimated $88.6 million construction cost for this project was incurred bringing the total cost-to-date to $68.8 million with completion expected in FY 2006-07. Another major project underway is the replacement of the 54-inch diameter trunk sewer on Bushard Avenue from Plant No. 2 to Ellis Avenue with a 21,500 foot, 108-inch concrete sewer. In FY 2003-04, $9.5 million of the estimated $40.8 million construction cost for this project was incurred bringing the total project cost-to-date to$18.6 million with completion expected in FY 2005-06. The Groundwater Replenishment System (GWRS) is another ongoing construction project. GWRS is a 6W 50150 joint cost sharing effort of the Orange County Sanitation District and the Orange County Water District that will initially provide 78,400 acre-feet per year of reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier at a cost of $503.3 million. The District incurred $16.3 million in construction during FY 2003-04 for this project bringing the total project cost-to-date to $31.8 million with a projected completion date in FY 2007-08. - See page 7 for the Schedule of Capital Assets and a listing of the other major capital additions for FY 2003-04. Net assets invested in capital assets, net of related debt decreased $160.4 million, or 27.7 percent over y, the prior year is primarily a result of the increase in the net outstanding debt due to the issuance of $280.0 million in COP to fund future capital improvements that is somewhat offset by the $105.5 million increase in net capital assets over the prior year and by the $11.6 million in debt service principal payments. w 4 w Changes in Net Assets Net assets increased $13.8 million in FY 2003-04, a 1.4 percent increase over the prior year's increase. (Dollars in thousands) Percentage June 30, June 30, Increase Increase 2004 2003 (Decrease) (Decrease) Revenues: Operating revenues Service Charges $ 101,995 $ 88,640 $ 13,355 15.1% Permit and inspection fees 332 524 (192) -36.6% _ Total operating revenues 102,327 89,164 13,163 14.8% Non-operating revenues Property taxes 46,943 44,591 2,352 5.3% Investment and interest income 6,785 25,889 (19,104) -73.8% Capital facilitites capacity charges 8,998 10,146 (1,148) -11.3% Other 928 706 222 31.4% Total non-operating revenues 63,654 81,332 (17,678) -21.7% Total revenues 165,981 170,496 (4,515) -2.6% Expenses: Operating expense other than depreciation and amortization 95,403 79,669 15,734 19.7% Depreciation and amortization 46,118 43,695 2,423 5.5% Non-operating expense 19,920 13,925 5,995 43.1% Total expenses 161,441 137,289 24,152 17.6% Income before capital contributions 4,540 33,207 (28,667) -86.3% Capital contributions ' (distributions), net 9,245 3,166 6,079 192.0% Increase in net assets 13,785 36,373 (22,588) -62.1% -" Beginning net assets 1,010,347 973,974 36,373 3.7% Ending net assets $ 1,024,132 $ 1,010,347 $ 13,785 1.40/6 Sources of Revenue Functional Expenses June 30,2003 June 30,2003 28% ° ° 6% 10% 12% ®Collections ®User Fees ■Treatment& ■Taxes Levied 29% Disposal ❑Interest _ ❑Depreciation& ❑Other Amortization 049% ❑Interest -t 62% Expense 5 L� As previously stated, an enterprise fund is used to account for the operations of the District, which is w 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. Sewer service user 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•�+ In FY 2003-04, operating revenues increased $13.2 million, or 14.8 percent over the prior year, reflective of the $13.4 million, or 15.0 percent increase in service charges. The increase in service charges is primarily due to 14.29 percent increase in the average sewer user fee rate over the prior year. The $17.7 million, or 21.7 percent, decline in non-operating revenues includes a $19.1 million, or 73.8 percent decline in investment and interest income and a $1.1 million, or 11.3 percent decline in capital w facilities capacity charges. These decreases are somewhat offset by a $2.4 million, or 5.3 percent increase in property tax revenues. The decrease in investment and interest income is attributable to lower yields earned on investments that are somewhat offset by the higher cash and investment balances . over the prior year. Cash and investment balances increased in FY 2003-04 from the prior year by $179.2 million from $427.1 million to $606.3 million, or 42.0 percent, primarily due to debt proceeds received from the issuance of $280 million of COP. However, yields earned on investments declined from 5.80 percent to 1.31 percent during this same time period. The $2.4 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 6.8 percent. The $1.5 million decline in capital facilities capacity charges is attributable to the cyclical nature of construction as new construction was relatively flat in comparison with the prior year. Of the 19.7 percent increase in operating expense before depreciation and amortization, collection system operating activities increased 23.8 percent, or$3.1 million, while treatment and disposal operating w expenses increased by 20.9 percent, or $13.9 million. The increase in collection system operating activities is primarily attributable to an increase in overhead allocations of $1.2 million, write-off of obsolete inventory of $1.0 million, and an increase of $0.5 million in salaries and related costs associated with the District's participation in the Fats, Oil, and Grease Control Program, Odor Control Program and Urban Runoff Program over the prior year. These programs are designed to regulate the quantity and quality of the wastewater discharged into the District's sewer system. The increase in treatment and disposal operating expenses is primarily due to the increase in supplies, repairs, and maintenance of$1.5 L40 million, or 13.5 percent, the increase in contractual services of $1.9 million, or 14.7 percent, and the increase in salaries and benefits of $9.3 million, or 27.2 percent. Of the $1.5 million increase in supplies, " repairs, and maintenance, approximately $1.0 of this increase is attributable to the timing of the co- � generation engine overhauls at the District's two treatment plant facilities. The remaining net increase of $500,000 is in chemical supplies as disinfection alone increased $900,000. This increase follows the prior year increase of $5.7 million over FY 2001-02 because of the policy decision made by the District's Board of Directors to fully disinfect the effluent discharged out the District's ocean outfall. The increase in ►„ contractual services is primarily attributable to the $2.3 million increase in biosolid removal cost based on the Board of Directors' decision to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards. Although salaries and benefits expense increased $9.32 million, or 27.2 percent within the treatment and disposal activities, the collection activity increase was much less at $660,000, or 14.7 percent. These total increases of $9.98 million in salary and benefit operating expenses is part of the overall increase in w the District salaries and benefits of $10.44 million when including salaries and benefits capitalized within the capital improvement program. Overall, total District salaries and benefits were $57.70 million, a 22.1 percent increase over the prior year total of $47.3 million. This increase is attributable to the addition of 26.7 full time equivalent employees over the prior year that were necessary to support the District's decision to disinfect the ocean discharge and to optimize the existing secondary treatment facilities to achieve the highest possible treatment standards. 6 4-0+ V* aw The 43.1 percent, or $6.0 million increase in non-operating expense is comprised of an increase of $2.8 million, or 21.9 percent in interest expense; an increase of$1.9 million, or 161.2 percent in capital grants to member agencies; and a $1.3 million, or 5,070.5 percent increase in other non-operating expense. „a, The $6.0 million increase in interest expense is primarily attributable to the additional interest paid on the new $280 million COP that were issued one month into the fiscal year. The overall increase was somewhat offset by the favorable decline in the daily and weekly interest rates on the District's variable rate certificates of participation debt program that fell from a composite average of 1.17 percent in FY *" 2002-03 to a composite average of 0.92 percent in FY 2003-04. A total of $3.1 million in capital grants was provided to member agencies during this past fiscal year for funding the repair and replacement of local sewers owned and maintained by member agencies in order to reduce rainfall induced inflow and 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. The $1.3 million increase in other non-operating expense is attributable to the write-off of fixed assets no longer in use. Over the past year, the Finance Department made a concerted effort to review recently ,r, completed rehabilitation and replacement capital improvement projects to ensure that the old related infrastructure was properly accounted for. The net increase in capital contributions of $6.1 million, or 192.0 percent, is primarily attributable to capacity rights sold to the Santa Ana Watershed Project Authority. Capital Assets At June 30, 2004, the District had a net investment of $1.045 billion in capital assets. This amount represents a net increase (including additions and deletions) of $105.5 million, or 11.2 percent over the prior year. (Dollars in thousands) sa Percentage June 30, June 30, Increase Increase 2004 2003 (Decrease) (Decrease) Land $ 11,446 $ 10,399 $ 1,047 10.1% Construction in Progress 359,104 244,214 114,890 47.0% ,.Y Sewage collection facilities 255,755 245,997 9,758 4.0% Sewage treatment facilities 317,979 333,885 (15,906) 4.8% Effluent disposal facilities 50,089 52,361 (2,272) 4.3% Solids disposal facilities 3 4 (1) -25.0% General and administrative facilities 51,142 53,140 (1,998) -3.8% Capital assets, net $ 1,045,518 $ 940,000 $ 105,518 11.27 Major capital asset additions for the current fiscal year included the following: • $24.8 million on the construction of 16 Additional Primary Clarifiers at Plant No. 1 • $16.3 million on the Ground Water Replenishment System • $14.5 million on the Standby Power and Reliability Modifications • $14.4 million on the Plant Reinvention/Automation Project • $13.4 million on the Rehabilitation of the Trickling Filters & Construction of Secondary Clarifiers • $11.9 million on the Effluent Pump Station Annex • $ 9.5 million on the Bushard Trunk Sewer Rehabilitation ,.a $ 8.8 million on Area Classification Studies 7 The District's FY 2004-05 capital budget forecasts spending of$231.2 million with a total CIP budget-to- completion of $2.1 billion. More detailed information about the District's capital assets is provided in Notes 1 and 3 of Notes to the Financial Statements. Debt Administration At June 30, 2004, the District had $633.4 million outstanding in COP, a net increase of$268.4 million, or �+ 73.5 percent from the prior year. This increase is due to the issuance of$280 million of new COP fixed rate debt in August 2003 as reimbursements for capital improvements constructed over the past three years, and a share of those to be constructed over the next two years. This increase from the debt issuance was offset by installment payments made on existing COP debt. 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 $2.1 billion in future treatment plant and collection system capital improvements. In accordance with the District's long-term debt fiscal policy, the District will restrict long-term borrowing to capital improvements that cannot be financed from Lao current revenue. Although no new debt financing is scheduled for FY 2004-05, a total of$1.1 billion 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. 1d For more detailed information on long-term debt activities, refer to Note 4 of the Notes to Basic Financial Statements. w Economic Factors and Next Year's Budgets and Rates ■ The unemployment rate within the County of Orange is currently 3.6 percent, which is a decrease from a rate of 4.0 percent a year ago. ■ Inflation for Orange County in FY 2004-05 is projected to be 2.9 percent based on the 2004 projected percentage change in consumer price index obtained from the December 2003 Economic and Business Review report prepared by Chapman University. ■ Projected rate of return on investments was increased from the 1.31 percent earnings rate in FY 2003-04 to 4.0 percent for FY 2004-05. All of these factors were considered in preparing the District's budget for FY 2004-05. The District user fee schedule was increased by 15.0 percent for FY 2004-05 over the prior year. The fee _ applicable to the District's largest customer base, the single-family residential fee, increased annually $15.00 from $100.00 to $115.00. These rate increases were necessary to finance the District's cash flow needs as capital improvement outlays alone will increase 59.3 percent to $231.0 million in FY 2004-05, and are projected to total $2.1 billion over the next 10 years in order to rehabilitate and upgrade existing facilities and provide for full secondary treatment standards. w 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 Finance Department, Orange County Sanitation District, P.O. Box 8127, Fountain Valley, CA 92728-8127. i� 8 rl y.+ ari b ORANGE COUNTY SANITATION DISTRICT BASIC FINANCIAL STATEMENTS low 9 ORANGE COUNTY SANITATION DISTRICT Statement of Net Assets June 30, 2004 (With Comparative Data for June 30, 2003) 2004 2003 Current assets: Cash and cash equivalents $ 101,667,204 $ 7,142,459 Investments 416,653,124 385,300,317 Accounts receivable, net of allowance for uncollectibles 9,465,565 7,646,687 Accrued interest receivable 4,005,023 4,103,715 Due from other governmental agencies 4,182,762 1,635,825 Connection fees receivable 561,697 917,859 Property tax receivable 1,073,114 1,289,484 Inventories 4,338,777 4,882,228 W Prepaid and other assets 672,228 876,702 Total current assets 542,619,494 413,795,276 Noncurrent assets: b+ Restricted: Cash and cash equivalents 5,964,807 2,938,113 Investments 81,994,903 31,709,443 6W Accrued interest receivable 559,270 534,038 _ Unrestricted: Non-depreciable capital assets 370,549,957 254,612,834 W Depreciable capital assets, net of accumulated depreciation 674,967,717 685,387,045 Deferred charges 4,106,715 1,843,374 Excess purchase price over book value on acquired assets, net 8,140,238 8,797,947 law Other assets, net 6,096,856 6,043,422 _ Total noncurrent assets 1,152,380,463 991,866,216 Total assets 1,694,999,957 1,405,661,492 Current liabilities: Accounts payable 13,914,502 16,029,577 Accrued expenses 6,076,755 5,479,532 Retentions payable 3,343,920 1,428,429 Interest payable 8,855,862 3,073,632 Current portion of long-term obligations 16,565,607 15,459,439 Total current liabilities 48,756,646 41,470,609 Noncurrent liabilities: Noncurrent portion of long-term obligations 622,111,252 353,843,588 Total liabilities 670,867,898 395,314,197 Net assets: Invested in capital assets, net of related debt 418,266,586 578,647,534 691 Restricted for debt service 88,518,980 35,181,594 Unrestricted 517,346,493 396,518,167 Total net assets $1,024,132,059 $1,010,347,295 iwd i.w See Accompanying Notes to Basic Financial Statements. 10 ON ORANGE COUNTY SANITATION DISTRICT Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2004 (With Comparative Data for the Year Ended June 30, 2003) „ 2004 2003 Operating revenues: Service charges $ 101,994,667 $ 88,640,114 Permit and inspection fees 332,329 523,866 Total operating revenues 102,326,996 89,163,980 Operating expenses other than depreciation and amortization: Salaries and benefits 48,711,494 38,732,528 Utilities 5,408,223 4,622,254 Supplies, repairs and maintenance 16,954,161 14,383,290 Contractual services 18,498,097 15,958,742 Directors'fees 141,440 139,751 Meetings and training 979,802 999,103 Other 4,710,179 4,833,132 goo Total operating expenses other than depreciation and amortization 95,403,396 79,668,800 Operating income before depreciation and amortization 6,923,600 9,495,180 Depreciation and amortization 45,460,338 43,036,601 Amortization of excess purchase price over book value on acquired assets 657,709 657,709 Operating loss (39,194,447) (34,199,130) Non-operating revenues: Property taxes 46,943,327 44,591,496 Investment and interest income 6,785,653 25,888,943 Capital facilities capacity charges 8,997,737 10,145,758 Other 927,906 705,706 Total non-operating revenues 63,654,623 81,331,903 Non-operating expenses: Interest 15,524,457 12,731,179 Capital grants to member agencies 3,050,918 1,168,254 Other 1,344,842 26,010 ti Total non-operating expenses 19,920,217 13,925,443 Income before capital contributions 4,539,959 33,207,330 Capital contributions from other agencies 9,244,805 3,166,280 Change in net assets 13,784,764 36,373,610 Total net assets- beginning 1,010,347,295 973,973,685 Total net assets- ending $1,024,132,059 $1,010,347,295 See Accompanying Notes to Basic Financial Statements. 11 ORANGE COUNTY SANITATION DISTRICT Statement of Cash Flows For the Year Ended June 30, 2004 (With Comparative Data for the Year Ended June 30, 2003) 2004 2003 Cash flows from operating activities: Receipts from customers and users $ 100,701,615 $ 93,042,680 Payments to employees (47,971,535) (38,388,953) Payments to suppliers (45,282,276) (40,025,486) Net cash provided by operations 7,447,804 14,628,241 NMI Cash flows from noncapital financing activities: Capital facilities capacity charges 9,353,899 10,688,100 Proceeds from property taxes 47,159,697 44,368,254 Grants to member agencies (3,050,918) (1,168,254) Net cash provided by noncapital financing activities 53,462,678 53,888,100 Cash flows from capital and related financing activities: Additions to property, plant and equipment (149,480,823) (112,913,330) Disposal of property,plant,and equipment 4,227,802 523,794 Additions to other assets (3,416) (2,231) Disposal of other assets 3,416 2,231 L, Interest paid (16,763,529) (11,661,494) Principal payments on certificates of participation (11,610,000) (11,024,999) Proceeds from certificates of participation issuance 278,672,948 - Certificates of participation issuance costs (1,616,176) - Proceeds from capital contributions 7,432,277 3,012,734 Net cash provided(used)by capital and related financing activities 110,862,499 (132,063,295) Cash flows from investing activities: ►.a Proceeds from the sale of investments 2,602.462,257 4,324,857,132 Purchases of investments (2,695,596,858) (4,425,681,766) Interest received 18,913,059 24,010,931 Net cash used by investing activities (74,221,542) (76,813,703) Net increase(decrease)in cash and cash equivalents 97,551,439 (140,360,657) Cash and cash equivalents, beginning of year 10,080,572 150,441,229 Cash and cash equivalents,end of year $ 107,632,011 $ 10,080,572 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $ (39,194,447) $ (34,199,130) LWJ Adjustments to reconcile operating loss to net cash provided by operations: Depreciation and amortization 46,118,047 43,694,310 Other non-operating revenues and expenses 993,334 746,185 (Increase)/decrease in operating assets: Accounts receivable (1,818,878) 1,565,010 Due from other governmental agencies (734,409) 1,607.984 Inventories 270,296 (99,535) Prepaid and other assets 204,474 26,725 Increase/(decrease)in operating liabilities: Accounts payable (2,115,075) 2,070,692 Accrued expenses 597,223 (773,466) Retentions payable 1,915,491 464,375 Arbitrage payable 235,890 (283.170) Compensated absences 695,112 220,8B5 Claims and judgments 280,746 (412.624) La✓ Net cash provided by operations $ 7,447,804 $ 14,628,241 Noncash Activities: Unrealized gain(loss)on the fair value of investments $ (11,496,334) $ 1,375,603 Disposal of assets with no cash effect (1,137,115) (66,489) Certificates of participation issuance cost-underwriter's fee (829,244) - Certificates of participation original issue discount (497,808) - See Accompanying Notes to Basic Financial Statements. 12 IM ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements "r June 30, 2004 bad (1) Summary of Significant Accountinq Policies Reporting Entity ow 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 2.4 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. met Effective July 1, 1998, the organization became known as the Orange County Sanitation District. The boundaries of one of the previous districts, now known as Revenue Area No. 14, has been maintained separately because their use of the District's collection, treatment, and disposal system is funded by the Irvine Ranch Water District. The boundaries of the other eight districts have been "w consolidated and are collectively referred to as the Consolidated Revenue Area. The District utilizes joint operating and capital outlay accounts to pay joint treatment, disposal, and construction costs. These joint costs are allocated to each revenue area based on gallons of sewage flow. ow 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 governed 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 No not prepared. The Corporation had no financial activity during the fiscal year ended June 30, 2004, other than the issuance of certificates of participation and principal and interest payments on outstanding certificates of participation (see Note 4). The District is independent of and overlaps other formal political jurisdictions. There are many governmental entities, 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 (GASB)Statement 14. Measurement Focus and Basis of Accounting �Ww 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 Mai 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 June 30, 2004 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 flow 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 related cash flows. The District applies all GASB pronouncements currently 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 w pronouncements. Operating Plans W 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. Cash Equivalents Investments with original maturities of three months or less are considered to be cash equivalents. W 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 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 uncollectibles which was $88,600 at June low 30, 2004. Any unbilled sewer service receivables are recorded at year-end. Inventory Inventory is stated at cost, which approximates market, on a weighted-average basis. Capital Assets 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 a revenue area's share of joint assets. Capital assets of property, plant, and equipment are defined by the District as assets with an initial, individual cost of more than $1,000 and an estimated useful life of at least three years. Such - assets 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; 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. During the fiscal year ended June 30, 2004, La, net interest costs of$6.9 million were capitalized. Depreciation of plant and equipment is provided for over the estimated useful lives of the assets 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 I.r (Continued) 14 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 for major classes of depreciable assets: Sewage collection facilities—50 years, Sewage treatment facilities — 40 years, Sewage disposal facilities — 40 years, and General plant and administrative facilities—11.5 years. r 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 classified 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 unreported claims. The distribution between current and long-term portions of the liability are based on historical trends. r 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. law 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 ►.r ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2004 Capital Facilities Capacity Charges W-d Capital facilities capacity charges 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. tn► Capital Contributions Capital contributions consist of charges to certain special districts and agencies for their agreed- 6,� upon share of additions to capital assets. Operating 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 lad expenses not meeting these definitions and which are not capital in nature are reported as non- operating revenues and expenses. Self-Insurance Plans 6"r For the year ended June 30, 2004, 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 $50 million. The self-insured portion for property damage covering fire and other perils is $25,000 per occurrence with outside excess insurance coverage to $750 million. The self-insured portion for property damage covering flood is $100,000 per occurrence with outside excess insurance w coverage to $300 million. The District is self-insured for all property 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 substantially self-insured for general liability coverage with a $250,000 he"` 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, , 2004 except for (1) the self-insurance portion of general liability was $100,000 per occurrence at June 30, 2003 and (2) the outside excess insurance coverage of workers' compensation was $25 million at June 30, 2003. w 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, 2004 that would materially affect the financial position of the District. 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 portion of their salary until future years. The amount deferred is not available to employees until 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 administered by an outside party and are not subject to the claims of the District's general creditors, in accordance with GASB Statement 32, the plan's assets and liabilities are not included within the District's financial statements. (Continued) 16 Wo ORANGE COUNTY SANITATION DISTRICT �wd Notes to Basic Financial Statements June 30,2004 'asi (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. a.i Deposits are categorized as follows, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 3, to give an indication of the level of credit risk assumed by the District at year-end. .r 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. Investments 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 et seq. Investments are categorized as follows, 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 name. Category 2- Uninsured and unregistered, with securities held by the purchasing financial institution's trust department or agent in the District's name. Category 3- Uninsured and unregistered, with securities held by the purchasing financial y institution's trust department or agent but not in the District's name. Investments Not Subject to Categorization Investments in the California Local Agency Investment Fund (LAIF) 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 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 required to be categorized under interpretive guidelines issued by the GASB. .r (Continued) 17 law ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 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 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 LAIF 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 LAIF has indicated to the District that as of June 30, 2004 the amortized cost of the pool was $57,630,116,554 and the fair value of the pool was $57,536,996,461. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. A summary of deposits and investments as of June 30, 2004, is categorized as follows: June 30,2004 Carrying Amount Bank Deposits: Unrestricted Restricted Balance Category Demand cash accounts $ (8,472,632) $ - $ 1,308,811 2 Bank investment contracts: -with JPMorgan Bank - 4,250,000 4,250,000 3 -with US Bank - 29,728,427 29,728,427 3 Total Deposits (8,472,632) 33,978,427 $ 35,287,238 Investments: Cash and investments with LAIF 29,860,436 - N/A U.S.government securities 432,808,635 - 1 Commercial paper 2,989,360 - 1 Corporate bonds/notes 50,627,579 - 1 Mutual funds 10,506,950 - N/A e.+ Investments held with fiscal agents: -U.S.government securities - 53,014,776 3 -mutual funds - 966,507 N/A Total Investments 526,792,960 53,981,283 ISO Total Carrying Amount $ 518,320,328 $ 87,959,710 Cash and cash equivalents and w+ investments as reported on the statement of net assets: Cash and cash equivalents $ 101,667,204 $ 5,964,807 Investments 416,653,124 81,994,903 $ 518,320,328 $ 87,959,710 - Although the bank investment contract with US Bank is classified 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"Aa3". At June 30, 2004, the U.S. Government Securities investments included mortgage-backed securities totaling $167,817,885, and the U.S. Government Securities and Corporate Bond investments included floating-rate notes totaling$19,780,392. (Continued) 18 rrr ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 too (3) Capital Assets Capital asset activity for the year ended June 30, 2004 is as follows: .. Balance at Balance at June 30,2003 Additions Deletions June 30,2004 Capital assets not depreciated: No Cost: Land $ 10,398,595 $ 1,059,359 $ (11,867) $ 11.446,087 Construction in progress 244,214,239 149,458,782 (34,569,151) 359,103,870 am Total nondepreciable assets 254,612,834 150,518,141 (34,581,018) 370,549,957 Depreciable capital assets: Cost: "d Sewage collection facilities 396,426,189 29,417,670 (413,479) 425,430,380 Sewage treatment facilities 650,908,862 12,782,068 (5,749,282) 657,941,648 Effluent disposal facilities 87,110,617 317,068 (317,068) 87,110,617 ,o Solids disposal facilities 3,051,243 10,984 (10,984) 3,051,243 General and administrative facilities 124,120,780 5,844,355 (4,163,234) 125.801,901 Subtotal 1,261,617,691 48,372,145 (10,654,047) 1,299,335,789 W+ Accumulated depreciation: Sewage collection facilities (150,429,275) (19,540,903) 294,554 (169,675,624) Sewage treatment facilities (317,024.013) (26,015,815) 3,077,082 (339,962,746) Effluent disposal facilities (34,749,385) (2,410,465) 138,356 (37,021,494) Solids disposal facilities (3,047,456) (12.504) 11,424 (3,048,536) General and administrative facilities (70,980,517) (7,472,379) 3,793,224 (74,659,672) Subtotal (576,230,646) (55,452,066) 7,314,640 (624,368,072) �e Net depreciable assets 685,387,045 (7,079,921) (3,339,407) 674,967,717 Net capital assets $ 939,999,879 $ 143,438,220 $ (37,920,425) $ 1,045,517,674 (4) Lon4-Term Liabilities - The following is a summary of the changes in long-term liabilities for the year ended June 30, 2004: Certificates Arbitrage Compensated Claims and of Payable Absences Judgments Participation Totals Balance,July 1 $ 760,720 $ 4,025,585 $ 1,321,003 $ 364,975,000 $ 371,082,308 Additions 235,890 4,748,869 887,496 280,000,000 285,872,255 Deletions - 4,053,757 606,750 11,610,000 16,270,507 Balance,June 30 996,610 4,720,697 1,601,749 633,365,000 640,684,056 Due within one year - 4,053,757 471,850 12,040,000 16,565,607 Unamortized discount - - - 849,413 849,413 Unamortized deferred amount on refundings - - - 1,157,784 1,157,784 Long-term amount $ 996,610 $ 666,940 $ 1,129,899 $ 619,317,803 $ 622,111,252 .. (Continued) 19 WW ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2004 Arbitrage Payable td 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 earnings on the proceeds thereof are subject to the requirements of the Act. The District's liability +"� at June 30, 2004 is $996,610 for future years' remittances. Compensated Absences Lei The District's policies related to compensated absences are described in Note 1. The District's liability at June 30, 2004 is $4,720,697 with an estimated $4,053,757 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, 2004 and 2003: 2003-04 2002-03 Claims and judgments payable at July 1 $1,321,003 $1,733,627 Claims incurred during the fiscal year 887,496 63,866 Payments on claims during the fiscal year (606,750) (476,490) Claims and judgments payable at June 30 1,601,749 1,321,003 Less: current portion (471,850) (476,490) Total long-term claims and judgments payable $1,129,899 $ 844,513 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 lawfully available funds of the District. Certificates of participation at June 30, 2004 are summarized as follows: Amount W 1992 refunding certificates of participation $ 106,965,000 1993 refunding certificates of participation 42,500,000 2000 refunding certificates of participation 203,900,000 2003 certificates of participation 280,000,000 Total certificates of participation payable $ 633,365,000 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. (Continued) 20 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 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. 1990-1992 Series B Certificates of Participation On May 1, 1991, District Numbers 1, 2, 3, 5, 6, 7 and 11 completed the sale of $117,555,000 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 "d 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, s 2001. 1990-1992 Series C Certificates of Participation On September 1, 1992, District Numbers 1, 2, 3, 6, 7 and 11 completed the sale of $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 YAW refund the remaining principal balance, at no call premium, of the 1990-92 Series C certificates on the call date of October 6, 2000. Outstandinq Certificates of Participation Wo December 1992 Refunding Certificates of Participation On December 3, 1992, the District completed the sale of$160,600,000 of refunding certificates bow of participation. 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). 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, 2004 was 0.98 percent. On October 1, 1992, the District and a brokerage company entered �.+ into an interest rate exchange swap agreement (Note 5). Annual principal payments are due on 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, 2004 reserve of $12,417,008 is held by the trustee, US Bank, and meets the reserve requirement. Additionally, AMBAC provides municipal bond insurance for the certificates. (Continued) 21 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2004 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 certificates were issued to refund $39,740,000 of the outstanding principal balance of the 1990-92 Series B certificates of participation (see above). 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, j 2004,was 0.92 percent. On September 1, 1993, the District and a brokerage company entered into an interest rate exchange swap agreement(Note 5). Annual principal payments are due on 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, 2004 reserve of $4,653,381 is held by the trustee, JPMorgan, and meets the reserve requirement. , August 2000 Refunding Certificates of Participation On August 31, 2000, the District completed the sale of$218,600,000 of refunding certificates 6mi of participation. The certificates 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 improvements made to the wastewater system. 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, 2004 was 0.92 percent. Annual principal payments are due on August 1, beginning August 1, 6-d 2001. The trust agreement for the certificates requires the establishment of a reserve which was iw� funded from certificate proceeds. The June 30, 2004 reserve of $17,311,428 is held by US Bank, the trustee, and meets the reserve requirement. August 2003 Certificates of Participation On August 26, 2003, the District completed the sale of $280,000,000 of certificates of participation. The certificates were issued to finance and to reimburse the District for the acquisition, construction, and installation of additional improvements made to the wastewater w system. The interest rate on the certificates is fixed and ranges from 5.00 percent to 5.25 percent. Annual principal payments are due on February 1, beginning February 1,2021. The trust agreement for the certificates requires the establishment of a reserve which was funded from certificate proceeds. The June 30, 2004 reserve of$27,058,873 is held by Union Bank, the trustee, and meets the reserve requirement. i.r Annual Amortization Requirements The annual requirements to amortize all debt related to certificates of participation as of June 30, 2004, are as follows: ►.d (Continued) 22 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 Estimated Year Interest Rate Ending Estimated Swaps, Net r. June 30, Principal Interest (See Note 5) Total 2005 $ 12,040,000 $ 17,801,632 $ 6,008,859 $ 35,850,491 2006 12,755,000 17,668,175 5,533,140 35,956,315 2007 13,465,000 17,527,240 5,015,920 36,008,160 2008 14,265,000 17,377,952 4,465,544 36,108,496 2009 15,060,000 17,219,295 3,833,862 36,113,157 2010-2014 102,780,000 83,195,635 10,581,737 196,557,372 2015-2019 115,100,000 77,223,444 1,019,333 193,342,777 2020-2024 107,440,000 68,115,922 - 175,555,922 2025-2029 105,130,000 47,040,527 - 152,170,527 2030-2033 135,330,000 16,214,712 - 151,544,712 Total $633,365,000 $ 379,384,534 $36,458,395 $ 1,049,207,929 (5) Interest Rate Swaps on Certificates of Participation As indicated in Note 4, the District has entered into interest rate swap agreements in connection with the 1992 and the 1993 Refunding Certificates of Participation. Objective: The objective of the interest rate swaps is to lower the District's borrowing costs when compared against fixed-rate bonds at the time of issuance. The swaps effectively change the District's variable interest rate to a synthetic fixed rate of 5.55 percent on the 1992 Refunding Certificates of Participation and to a synthetic fixed rate of 4.56 percent on the 1993 Refunding Certificates of Participation. 1992 Refunding Certificates of Participation Terms of the Swap: 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. The District will receive a variable interest rate equal to the interest paid to the holders of the certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of $160,600,000. The notional value of the swap declines in tandem with the principal amount of the associated debt. 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. Fair Value: Because interest rates have declined since execution of the swap agreement, the swap had an estimated negative fair value of $11.96 million as of June 30, 2004. Because the variable-rate certificates adjust to changing interest rates, the certificates do not have a corresponding fair value increase. The fair value was estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Credit Risk: As of June 30, 2004, the District was not exposed to credit risk because the swap had a negative fair value. However, should interest rates change, and the fair value of the swap become positive, the District would be exposed to credit risk in the amount of the swap's fair value. (Continued) 23 i.e ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements V June 30, 2004 The swap's counterparty, AIG Financial Products Corporation, was rated AAA by Standard & 6d Poor's and Aaa by Moody's Investors Service as of June 30, 2004. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA- by Standard & Poor's or Aa3 by Moody's Investors Service, the fair value of the swap (if the swap has a positive fair value) will be collateralized by the counterparty as follows: 1) with bonds, debentures and other debt issued or guaranteed by the United States of America equaling 106 percent of the fair value, or 2) with securities issued by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association equaling 108 percent of the fair value, or 3) other securities to be agreed upon and in an amount to be agreed upon by the District, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. Basis Risk. The swap does not expose the District to basis risk because the variable-rate interest law paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of the swap. Wid Termination Risk: The District or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In the event of termination due to default, the defaulting party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. The swap may be terminated by the District if the counterparty's credit quality rating falls below AA- by Standard & Poor's or Aa3 by Moody's Investors Service. If the swap is terminated, the variable- rate certificates of participation would no longer carry a synthetic interest rate. 1993 Refunding Certificates of Participation Terms of the Swap: 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. The District will receive a variable interest rate equal to the interest paid to the holders of the certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of $46,000,000. The notional value of the swap ►W declines in tandem with the principal amount of the associated debt. 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 22-year swap agreement matures on August 1, 2016. Fair Value: Because interest rates have declined since execution of the swap agreement, the swap had an estimated negative fair value of $2.28 million as of June 30, 2004. Because the u variable-rate certificates adjust to changing interest rates, the certificates do not have a corresponding fair value increase. The fair value was estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. haul Credit Risk: As of June 30, 2004, the District was not exposed to credit risk because the swap had a negative fair value. However, should interest rates change, and the fair value of the swap become positive, the District would be exposed to credit risk in the amount of the swap's fair value. The swap's counterparty, Societe Generale Bank, was rated AA- by Standard & Poor's and Aa3 by 6o+ Moody's Investors Service as of June 30, 2004. To mitigate the potential for credit risk, if the counterparty's credit quality falls below AA- by Standard & Poor's or Aa3 by Moody's Investors Service, the fair value of the swap (if the swap has a positive fair value)will be collateralized by the counterparty as follows: 1)with securities issued or guaranteed by the United States Government equaling 106 percent of the fair value, or 2) with securities issued by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, or the Government National (Continued) 24 rr ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 "' Mortgage Association equaling 108 percent of the fair value, or 3) other securities to be agreed upon and in an amount to be agreed upon by the District, the counterparty, and the Swap Insurer. The collateral would be held by a third-party custodian. no Basis Risk: The swap does not expose the District to basis risk because the variable-rate interest paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of the swap. Termination Risk., The District or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In the event of termination due to default, the defaulting party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. The swap may be terminated by the District if the counterparty's credit quality rating falls below AA-by Standard & Poor's or Aa3 by Moody's Investors Service. If the swap is terminated, the variable- rate certificates of participation would no longer carry a synthetic interest rate. (6) 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, 2004 consisted of the following: June 30, 2004 Invested in capital assets, net of related debt: Capital assets, net of accumulated depreciation $ 1,045,517,674 Outstanding debt issued to acquire capital assets, net of unamortized bond discount and deferred amount on refundings (631,357,803) Unamortized deferred charges of debt issued to acquire capital assets 4,106,715 Subtotal 418,266,586 Restricted by debt covenants for debt service on certificates of participation 88,518,980 Unrestricted 517,346,493 $ 1,024,132,059 (7) Pension Plan 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 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. Benefits �+ 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 member's "final compen- ..a (Continued) 25 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30,2004 sation" as defined in Section 31462 of the Retirement Law of 1937, the total years of service under W 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. 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 3.94%- 7.72%and 5.44%- 10.65%, respectively, of their annual compensation to OCERS. The District is required to make periodic 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. For the fiscal years ended June 30, 2004, 2003, and 2002, the required contribution equaled the contribution actually made. The following table provides salary and contributions requirements for the current and two prior 6e+ fiscal years. For the Fiscal Year Ending June 30, 2004 June 30,2003 June 30,2002 601 Total Payroll Costs $ 45,738,510 $ 38,514,484 $ 36,387,839 Payroll Costs of Employees Covered by OCERS 40,094,512 35,341,483 32,391,018 Contributions Requirements: Contributed by Employees 1,092,292 1,072,477 1,030,924 Contributed by the District on Behalf of Employees 1,777,201 1,549,829 1,457,596 Total Employee Required Contribution 2,869,493 2,622,306 2,488,520 District Required Contribution 3,668,650 1,943,056 765,459 Total Contribution $ 6,538,143 $ 4,565,362 $ 3,253,979 Employee Required Contribution as a Percent of Covered Payroll 7.16% 7.42% 7.68% District Required Contribution as a Percent of 6W Covered Payroll 9.15% 5.50% 2.36% Total Contribution as a Percent of all Participating Entities'Contributions 3.79% 4.11% 4.03% (8)Transactions with Irvine Ranch Water District 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 15,000,000 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-rata interest in real property based on flow of 32,000,000 gallons per day.The book value of the bull 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, 2004, $11,838,762 of the excess of purchase price over the assets'book value was amortized. (Continued) 26 ORANGE COUNTY SANITATION DISTRICT Notes to Basic Financial Statements June 30, 2004 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 outlay revolving fund budget requirements and certain capital improvements during the term of the agreement, which contribution amounted to$3,992,790 in 2004. (9)Commitments dr Groundwater Replenishment System: 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 August 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. 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. As of June 30, 2004, the total estimated cost of GWRS Phase 1 was $489.62 million. Of this amount, up to $92.50 million may be reimbursed through grants from the U.S. Environmental Protection Agency, the U.S. Bureau of Reclamation,the State Water Resources Control Board, and others. The District's estimated gross and net share is $244.81 million and $198.56 million, respectively. Costs incurred by the District through June 30, 2004 total $31.76 million. Secondary Treatment: On July 17, 2002, the Board of Directors Approved Resolution No. OCSD- 's' 14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean". This resolution established 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. 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. The District estimates that it will take approximately eleven years and additional capital improvement costs of $271 million to reach secondary treatment discharge standards. Secondary treatment discharge standards are scheduled to be reached in 2013. 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 4" facilities are constructed and placed in service over the next eleven years. rr 27 Ih W W W l�1 �eJ W W (THIS PAGE INTENTIONALLY LEFT BLANK) L �i 41 I 28 wo a� .r .d ORANGE COUNTY SANITATION DISTRICT SUPPLEMENTARY INFORMATION e.d Now tm! mi ww ar kw too 29 ww ORANGE COUNTY SANITATION DISTRICT WW Combining Statement of Net Assets June 30,2004 With Comparative Totals for June 30,2003 b,) Revenue Consolidated Interfund Totals w0i Area No.14 Revenue Area Eliminations 2004 2003 Current assets: Cash and cash equivalents $ - $ 101,667,204 $ - $ 101,667,204 $ 7,142,459 Investments - 416,653,124 - 416,653,124 385,300,317 Due from other funds - 1,583,472 (1,583,472) - - Accounts receivable,net of allowance for uncollectibles 737,036 8,728,529 - 9.465,565 7,646.687 Accrued interest receivable 201,052 3,803,971 - 4,005.023 4,103,715 Due from other governmental agencies 4,182,762 - - 4,182.762 1.635,825 Connection fees receivable - 561,697 - 561.697 917,859 Property tax receivable - 1,073,114 - 1,073,114 1,289,484 W Inventories 222,285 4,116,492 - 4,338,777 4,882,228 Prepaid and other assets 33,745 638,483 - 672,228 876,702 Total current assets 5,376,880 538,826,086 (1,583,472) 542,619,494 413,795,276 Noncurrent assets: Restricted: Cash and cash equivalents - 5,964,807 - 5,964,807 2,938,113 Investments - 81,994,903 - 81,994,903 31,709,443 Accrued interest receivable - 559,270 - 559,270 534,038 Unrestricted: Non-depreciable capital assets 16,872,797 353,677,160 - 370,549,957 254,612,834 Depreciable capital assets,net of accumulated depreciation 42,878,444 632,089,273 - 674,967,717 685,387,045 Deferred charges - 4,106,715 - 4,106,715 1,843.374 Excess purchase price over book value on acquired assets,net 8,140,238 - - 8,140,238 8,797,947 Other assets,net 142,515 5,954,341 - 6,096,856 6,043,422 Total noncurrent assets 68,033,994 1,084,346,469 - 1,152,380,463 991,866,216 6W Total assets 73,410,874 1,623,172,555 (1,583,472) 1,694,999,957 1.405,661,492 Current liabilities: hr Accounts payable 604,022 13,310,480 - 13,914,502 16,029,577 Accrued expenses 296,767 5,779,988 - 6,076,755 5,479,532 Due to other funds 1.583,472 - (1,583,472) - - Retentions payable 128,725 3,215,195 - 3,343,920 1,428,429 Interest payable - 8,855,862 - 8,855,862 3,073,632 Current portion of long-term obligations 227,186 16,338,421 - _ 16,565,607 15,459,439 Total current liabilities 2,840,172 47,499,946 (1,583,472) 48,756,646 41,470,609 Noncurrent liabilities: Noncurrent portion of W long-term obligations 90,201 622,021,051 - 622,111 252 353,843,588 Total liabilities 2,930,373 669,520,997 (1,583,472) 670,867,898 395,314,197 LrJ Net assets: Invested in capital assets, net of related debt 59,751,241 358,515,345 - 418,266,586 578,647,534 Restricted for debt service - 88,518,980 88,518,980 35,181,594 Unrestricted 10,729,260 506,617,233 - 517,346,493 396,518,167 Total net assets $70,480,501 $953,651,558 $ - $1,024,132,059 $1,010,347,295 Low 30 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended June 30, 2004 With Comparative Totals for June 30, 2003 Revenue Consolidated Interfund Totals Area No.14 Revenue Area Eliminations 2004 2003 Operating revenues: „e Service charges $ 4,557,942 $ 97,436,725 $ - $ 101,994,667 $ 88,640,114 Permit and inspection fees 6,977 325,352 - 332,329 523,866 Total operating revenues 4,564,919 97,762,077 - 102,326,996 89,163,980 Operating expenses other than depreciation and amortization: Salaries and benefits 2,324,270 46,387,224 48,711,494 38,732,528 ` Utilities 299,487 5,108,736 - 5,408,223 4,622,254 Supplies,repairs and maintenance 793,150 16,161,011 - 16,954,161 14,383,290 Contractual services 819,008 17,679,089 - 18,498,097 15,958,742 Directors'fees 15,714 125,726 - 141,440 139,751 Meetings and training 49,445 930,357 - 979,802 999,103 Other 232,616 4,477,563 4,710,179 4,833,132 Total operating expenses other than depreciation and amortization 4,533,690 90.869,706 - 95,403,396 79,668,800 Operating income(loss)before "w depreciation and amortization 31,229 6,892,371 - 6,923,600 9,495,180 Depreciation and amortization 4,067,150 41,393,188 - 45,460,338 43,036,601 %Ed Amortization of excess purchase price over book value on acquired assets 657,709 - - 657,709 657,709 Operating loss (4,693,630) (34,500,817) - (39.194,447) (34,199,130) Non-operating revenues: Property taxes - 46,943,327 - 46,943,327 44,591,496 Investment and interest income 113,554 6,672,099 - 6,785,653 25,888,943 holo Capital facilities capacity charges 1,054,961 7,942,776 - 8,997,737 10,145,758 Other 10,716,057 898,110 (10,686,261) 927,906 705,706 Total non-operating revenues 11,884,572 62,456,312 (10,686,261) 63,654,623 81,331,903 wo Non-operating expenses: Interest - 15,524,457 15,524,457 12,731,179 wc� Capital grants to member agencies - 3,050,918 - 3,050,918 1,168,254 Other 56,121 11,974,982 (10,686,261) 1,344,842 26,010 Total non-operating expenses 56,121 30,550,357 (10,686,261) 19,920,217 13,925,443 Mel Income(loss)before capital contributions 7,134,821 (2,594,862) - 4,539,959 33.207,330 Capital contributions from other agencies 3,992,790 5,252,015 - 9,244,805 3,166,280 Change in net assets 11,127,611 2,657,153 - 13,784,764 36,373,610 %Ed Total net assets-beginning 59,352,890 950,994,405 - 1,010,347,295 973,973,685 Total net assets-ending $70,480,501 $953,651,558 $ - $1,024,132,059 $1,010,347,295 .ter 31 ORANGE COUNTY SANITATION DISTRICT Combining Statement of Cash Flows For the Year Ended June 30,2004 With Comparative Totals for June 30,2003 Revenue Consolidated Interfund Totals Area No.14 Revenue Area Eliminations 2004 2003 Cash flows from operating activities: Receipts from customers and users $ 4,822,159 $ 95,879,456 $ - $ 100,701,615 $ 93,042,680 Payments to employees (2,152,081) (45,819,454) - (47,971,535) (38,388,953) Payments to suppliers (1,952,987) (43,329,289) - (45,282,276) (40,025,486) Net cash provided by operations 717,091 6,730,713 - 7,447,804 14,628,241 Cash flows from noncapital financing activities: Capital facilities capacity charges 1,054,961 8,298,938 - 9,353,899 10,688,100 Proceeds from property taxes - 47,159,697 - 47,159,697 44,368,254 6di Grants to member agencies - (3,050,918) - (3,050,918) (1,168,254) Net cash provided by noncapital financing activities 1,054,961 52,407,717 53,462.678 53,888,100 Cash flows from capital and related financing activities: yd Additions to property,plant and equipment (10,781,767) (138,699,056) - (149,480,823) (112,913,330) Disposal of property,plant,and equipment - 4,227,802 - 4,227,802 523,794 Additions to other assets - (3,416) - (3,416) (2,231) Disposal of other assets 3,416 - - 3,416 2,231 Interest paid - (16,763,529) - (16,763,529) (11,661,494) Principal payments on certificates of participation - (11,610,000) - (11,610,000) (11,024,999) Proceeds from certificates of participation issuance - 278,672,948 - 278,672,948 - Certificates of participation issuance costs - (1,616,176) - (1,616,176) - Proceeds from capital contributions 2,180,262 5,252.015 - 7,432,277 3,012,734 Net cash provided(used)by capital and related financing activities (8,598,089) 119,460,588 - 110,862,499 (132,063,295) Cash flows from investing activities: Proceeds from the sale of investments 33,530,015 2,568,932,242 - 2,602,462,257 4,324,857,132 Purchases of investments (26,955,969) (2,668,640,889) - (2,695,596,858) (4,425,681,766) Interest received 128,353 18,784,706 18,913,059 24,010,931 Net cash provided(used)by investing activities 6,702,399 (80,923,941) - (74,221,542) (76,813,703) Net increase(decrease)in cash and cash equivalents (123,638) 97,675,077 - 97,551.439 (140,360,657) Cash and cash equivalents,beginning of year 123,638 9,956,934 - 10,080,572 150,441,229 Cash and cash equivalents,end of year $ - $ 107,632,011 $ - $ 107,632,011 $ 10,080,572 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $(4,693,630) $ (34,500,817) $ - $ (39,194,447) $ (34,199,130) Adjustments to reconcile operating loss to net cash provided by operations: Depreciation and amortization 4,724,859 41,393,188 - 46,118,047 43,694,310 Other non-operating revenues and expenses 32,773 960,561 - 993,334 746,185 (Increase)Idecrease in operating assets: Due from other funds - (1,583,472) 1,583,472 - - Accounts receivable (621,619) (1,197,259) - (1,818,878) 1,565,010 Due from other governmental agencies (734,409) - - (734,409) 1,607,984 Inventories (92,947) 363,243 - 270,296 (99,535) Prepaid and other assets (8,057) 212,531 - 204,474 26,725 Increasel(decrease)in operating liabilities: Accounts payable 144,746 (2,259,821) - (2,115,075) 2,070,692 Accrued expenses 131,663 465,560 - 597,223 (773,466) Due to other funds 1,583,472 - (1,583,472) - - Retentions payable 89,507 1,825,984 - 1,915,491 464,375 Arbitrage payable - 235,890 - 235,890 (283,170) 4.J Compensated absences 119,030 576,082 - 695,112 220,885 Claims and judgments 41,703 239,043 - 280,746 (412,624) Net cash provided by operations $ 717,091 $ 6.730,713 $ - $ 7,447,804 $ 14,628,241 Noncash Activities: Unrealized gain(loss)on the fair value of investments $ (95,612) $ (11,400,722) $ - $ (11,496,334) $ 1,375,603 Net disposal of assets with no cash effect (45,386) (1,091,729) - (1,137,115) (66,489) Certificates of participation issuance cost-underwriter's fee - (829,244) (829,244) Certificates of participation original issue discount - (497,808) - (497,808) Net transfer of assets between Revenue Areas 10,686,261 (10,686,261) - - 32 ORANGE COUNTY SANITATION DISTRICT Schedule of Changes in Net Assets by Activity and Revenue Area For the Year Ended June 30, 2004 Revenue Consolidated Area No. 14 Revenue Area Totals Collection activities: Revenues and capital contributions: �+ Permit and inspection fees $ 603 $ 204,745 $ 205,348 Other revenues 20,277 717,992 738,269 Other capital contributions 3,992,790 5,252,015 9,244,805 ,,,4 Total revenues and capital contributions 4,013,670 6,174,752 10,188,422 Expenses: Salaries and benefits 137,530 5,013,422 5,150,952 Now Utilities 49,238 373,945 423,183 Supplies, repairs and maintenance 138,789 3,780,268 3,919,057 Contractual services 61,175 3,340,649 3,401,824 kw Directors'fees 15,714 125,726 141,440 Meetings and training 950 12,776 13,726 Other expenses 141,200 2,974,845 3,116,045 km Total expenses 544,596 15,621.631 16,166,227 Net collection activities 3,469,074 (9,446,879) (5,977,805) �+ Treatment and disposal activities: Revenues: Service charges 166,277 3,146,008 3,312,285 Permit and inspection fees 6,374 120,607 126,981 Investment and interest income 182 3,436 3,618 Other revenues 9,519 180,118 189,637 Total revenues 182,352 3,450,169 3,632,521 Expenses: Salaries and benefits 2,186,740 41,373,802 43,560,542 Utilities 250,249 4,734,791 4,985,040 Supplies, repairs and maintenance 654,361 12,380,743 13,035,104 Contractual services 757,833 14,338,440 15,096,273 Meetings and training 48,495 917,581 966,076 Other expenses 147,537 2,791,439 2,938,976 Total expenses 4,045,215 76,536,796 80,582,011 Net treatment and disposal activities (3,862,863) (73,086,627) (76,949,490) Unallocated revenues(expenses): Service charges 4,391,665 94,290,717 98,682,382 Property taxes - 46,943,327 46,943,327 Investment and interest income 113,372 6,668,663 6,782,035 Capital facilities capacity charges 1,054,961 7,942,776 8,997,737 ++� Transfer IBC area between Revenue Areas 10,686,261 (10,686,261) - Interest expense - (15,524,457) (15,524,457) Capital grants to member agencies - (3,050,918) (3,050,918) Depreciation and amortization (4,724,859) (41,393,188) (46,118,047) Total unallocated revenues(expenses) 11,521,400 85,190,659 96,712,059 Total change in net assets $ 11,127,611 $ 2,657,153 $ 13,784,764 33 W4 �J 1�J W 4.� W (THIS PAGE INTENTIONALLY LEFT BLANK) W W. W lid W W 34 � j Statistical Section 1 Statistical Section J ORANGE COUNTY SANITATION DISTRICT Net Assets by Component (Dollars in Thousands) Last Four Fiscal Years (Note 1) $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 s0 2000-01 2001-02 2002-03 2003-04 ❑Unrestricted ■Restricted for debt service 0Invested in capital assets, net of related debt' Invested in Capital Assets, Restricted Net of Related for Debt Fiscal Year Debt Service Unrestricted Total Net Assets 2000-01 $463,935 $36,468 $446,558 $ 946,961 2001-02 501,997 36,070 435,906 973,973 2002-03 578,647 35,182 396,518 1,010,347 2003-04 418,267 88,519 517,346 1,024,132 Note 1: Net Assets are calculated as a result of GASB 34, which was implemented in FY 2001-2, retrospective to 2000-01. Ten years data will eventually be presented as data is accumulated. Source: Orange County Sanitation District's Accounting Division. 35 ORANGE COUNTY SANITATION DISTRICT Revenues and Gross Capital Contributions by Source r (Dollars in Thousands) Last Ten Fiscal Years $117,980 w. $94,384 $70,788 $47,192 $23,596 R 1994-95 1995.96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 OOperating Revenue ■Non-Operating Revenue ■Contributed Capital rr Capacity Operating Revenue Non-Operating Revenue Rights& Permit& Cap.Facilities Total Capital w Fiscal Service Inspection Total Property Capacity Non- Contrib- Year Charges Fees Operating Taxes Interest Charges Other Operating utions 1994-95 $ 72,909 S 240 S 73,149 S 27,286 S 18,500 S 6,577 S 4,408 S 56,771 S 15,587 1995-96 71,362 120 71,482 29,285 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 59,846 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 2002-03 88,640 524 89,164 44,591 25,889 10,146 706 81,332 3,166 2003-04 101,995 332 102,327 46,943 6,786 8,998 928 63,655 9,245 Source: Orange County Sanitation District's Accounting Division. 36 ORANGE COUNTY SANITATION DISTRICT Expenses by Type (Dollars in Thousands) Last Ten Fiscal Years $150,000 - -- - - -- - $140,000 - -- ---- --- - -- - - -- $130,000 -- -- - - - - - - $120,000 - - --- - - -- -- $110,000 $100,000 $90,000 _ $80,000 $70,000 _f .. $60,000 _ $50,000 $40,000 $30,000 $20,000 - $10,000 .. $0 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 ■Operating Expense ❑Non Operating Expense Operating Non-Operating Fiscal Personal Maint& Depr& Total Interest Total Non- Year Services Utilities Other Amort Operating Expense Other(1) Operating 1994-95 S 29,399 $ 3,180 $ 27,369 $ 34,087 $ 94,035 S 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 22,851 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 28,809 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 5,524 23,062 44,188 106,508 17,923 88 18,011 2001-02 35,629 4,967 27,967 46,990 115,553 14,406 7,609 22,015 2002-03 38,733 4,622 36,314 43,694 123,363 12,731 1,194 13,925 2003-04 48,711 5,408 41,284 46,118 141,521 15,524 4,396 19,920 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. 37 ORANGE COUNTY SANITATION DISTRICT Change in Net Assets _ (Dollars in Thousands) Last Four Fiscal Years (Note 1) $1,040,000 $1,020,000 $1,000,000 $980,000 $960,000 $940,000 $920,000 $900,000 2000-01 2001-02 2002-03 2003.04 Ending Net Assets by Fiscal Year Total Change in Beginning Ending Fiscal Year Revenues Total Expenses Net Assets Net Asset Net Assets 2000-01 $161,971 $ 133,543 $28,428 $ 918,533 $ 946,961 2001-02 164,580 137,568 27,012 946,961 973,973 2002-03 173,662 137,288 36,374 973,973 1,010,347 2003-04 175,226 161,441 13,785 1,010,347 1,024,132 Note 1: Net Assets are calculated as a result of GASB 34, which was implemented in FY 2001-2, retrospective to 2000-01. Ten years information will eventually be presented as data is accumulated. Source: Orange County Sanitation District's Accounting Division. 38 tow ORANGE COUNTY SANITIATION DISTRICT Cash and Investments Reserves Balances tw (Dollars in Millions) Last Ten Fiscal Years tw Capital Debt Cash Flow Self- Improvement Service Fiscal Year Contingency Insurance Program Requirements Total 1994-95 $44 $194 $110 $21 $369 1995-96 42 243 55 46 386 1996-97 39 82 195 60 376 1997-98 63 89 188 33 373 1998-99 56 54 233 33 376 1999-00 60 57 284 32 433 2000-01 77 56 311 33 477 2001-02 70 57 303 35 465 2002-03 100 57 237 33 427 2003-04 71 57 390 88 606 Notes: The Cash Flow Contingency Reserve is to fund operations, maintenance, and certificates of participation debt service expenses for the first half of the fiscal year, prior to the receipt of the first installment of the property tax allocation and sewer service user fees. The Self-Insurance Reserve is to provide requirements for property damage including fire, flood and earthquake, general liability and workers' compensation. The Capital Improvement Program Reserve is to fund annual increments of the capital improvement program with a target level at one half of the average annual capital improvement program through the year 2020. The Debt Service Required Reserves are monies held and controlled by a trustee pursuant to the provisions of certificates of participation issues, and the monies are not available for the general needs of the District. bow bw Source: Orange County Sanitation District's Accounting Division. 39 w ORANGE COUNTY SANITIATION DISTRICT Cash and Investment Portfolio as of June 30, 2004 L' Cost Market Value Net Unrealized Gain/Loss Shares Par Base Base %of Total Base Investment Portfolio: Cash and Cash Equivalents(U.S.Dollar): Pending Trades $ (52,327.483.66) $ (52,327,483.66) -10.45% $ ww Interest - 3,903,191.79 3,903,191.79 0.78% - Certificates of Deposit-Domestic 2,100,000.00 2,100,000.00 2,100,000.00 0.42% - Commercial Paper-Discount 3,000,000.00 2,989,360.00 2,989,360.00 0.60% - Fed Hm Loan Bnk-Less Than 1 Year 15,300,000.00 15,272,553.53 15,272,553.53 3.05% - Federal Home Loan Mortgage-Less Than 1 Yr 22,500,000.00 22,422,007.36 22,422,007.36 4.48% - FNMA Issues-Less Than 1 Year 20,000,000.00 19,941,122.55 19,941,122.55 3.98% - Mutual Funds 10,506,949.92 10,505,949.92 10,506,949.92 2.10% - Repurchase Agreements 17,700,000.00 17,700,000.00 17,700,000.00 3.53% - w Treasury Bills-Less Than 1 Year 30,300,000.00 30,167,391.64 30,167,391.64 6.02% - Subtolal 121,406,949.92 72,675,093.13 72,675,093.13 14.51% - Fixed Income Securities(U.S.Dollar): ABS-Airplane Receivables 1,600,000.00 1,600,000.00 149,216.00 0.03% (1,450,784.00) 6mi ABS-Home Equity 886,044.05 886,044.05 879,260.50 0.18% (6,783.55) Banking&Finance 15,652,000.00 15,773,233,18 15,841,507.68 3.16% 68,274.50 Collateralized Mortgage Obligation 2,069,684.50 2,069,684.50 2,199,453.72 0.44% 129,769.22 FHLMC Multiclass 945,034.19 946,040.98 945.412.20 0.19% (628.78) wow FHLMC Pools 70,064.66 68,356.82 72,409.65 0.01% 4,052.83 FNMA Pools 60,549,689.22 61,255,557.93 60,989,715.55 12.18% (265,842.38) FNMA Remic 900,000.00 918,000.00 906,395.94 0.18% (11,604.06) GNMA Multi Family Pools 3.040.979.67 3,016,895.06 3,031,810.50 0.61% 14,915.44 w GNMA Single Family Pools 8,828,764.08 8,854,464.87 9,049,328.01 1.81% 194.863.14 Inflation Indexed Securities 35,002,290.00 35,019,209.79 38,234,401.22 7.63% 3,215,191.43 Insurance 1,600,000.00 1,594,032.00 1,670,000.00 0.33% 75,968.00 PVT Placements-More Than 1 Year 752,000.00 826,199.84 826,199.84 0.16% - U.S.Agencies 33,990,306.26 34,957,904.32 35,307,019.85 7,05% 349,115.53 U.S.Governments 250,060,886.08 258,298,043.23 253,184,219.25 50.55% (5,113,823.98) Utility-Electric 4,750,000.00 4,694,370.00 4,874,272.50 0.97% 179,902.50 Subtotal 420,697,742.71 430,778,036.57 428,160,622.41 85.49% (2,617,414.16) w Total Investment Portfolio 542,104,692.63 503,453,129.70 500,835,715.54 100.00% $ (2,617,414.16) Less: Interest (3,903,191.79) (3,903,191.79) Demand Cash Accounts (8,472.632.00) (8,472,632.00) L.� Monies Held With Fiscal Agents 87,959,710.00 87,959,710.00 Monies with the Local Agency Investment Fund 29,860,436.00 29,860,436.00 Total Cash and Investments $ 608,897,451.91 $ 606,280,037.75 6.a 6w w w 6w Source: Mellon Trust and the Orange County Sanitation District's Accounting Division. ww 40 ORANGE COUNTY SANITATION DISTRICT Assessed and Estimated Actual Value of Taxable Property (Dollars in Millions) Last Ten Fiscal Years 6250.000-so 5?;YJ cNvl / .a 199596 1996-97 19,97-98 199899 19"00 2000-01 2001-02 2002-03 2003-04 ■Secured Property Assessed Value v Unsecured Property Assessed Value Secured Property Unsecured Property Totals Ratio of Total Percent ., Estimated Estimated Estimated Assessed to Change in Assessed Actual Assessed Actual Assessed Actual Estimated Assessed Fiscal Year Value Value Value Value Value Value Value Value 1994-95 $ 123,525 $ 123,525 $3,871 $3,871 $ 127,396 $ 127,396 100% -0.46% 1995-96 122,524 122,524 3,372 3,372 125,896 125,896 100% -1.18% 1996-97 122,304 122,304 3,247 3,247 125,551 125,551 100% -0.27% 1997-98 125,018 125,018 3,302 3,302 128,320 128,320 100% 2.21% 1998-99 131,295 131,295 3,394 3,394 134,689 134,689 100% 4.96% 1999-00 142,126 142,126 3,507 3,507 145,633 145,633 100% 8.1390 2000-01 155,544 155,544 3,778 3,778 159,322 159,322 100% 9.40% 2001-02 169,357 169,357 4,066 4,066 173,423 173,423 100% 8.85% 2002-03 183,223 183,223 5,657 5,657 188,880 188,880 100% 8.91% 2003-04 197,143 197,143 4,309 4,309 201,452 201,452 100% 6.66% Source: Orange County Auditor-Controller's Office. 41 ORANGE COUNTY SANITATION DISTRICT Property Tax and User Fee Levies and Collections (Dollars in Thousands) Last Ten Fiscal Years w $140,000 $120,000 $100,000 $80,000 - w $60,000 $40,000 w i $20,000 $0 w 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002.03 2003-04 Now OTotal Tax and User Fee Levy ■Total Tax and User Fee Collection r Current Total Tax %of Total Tax Tax and Percent of Delin- and User %of Total O/S Delinquen- and User User Fee Levy quent Fee Collection Delinquen- cies to Tax Fiscal Year Fee Levy Collection Collected Collection Collection to Levy cies Levy r, 1994-95 $92,353 $91,945 99.56% $86 S 92,031 99.65% $408 0.44 % 1995-96 91,775 91,596 99.80 812 92,408 100.69 179 0.20 1996-97 89,794 89.570 99.75 180 89.750 99.95 224 0.25 1997-98 90,589 90,078 99.44 81 90,159 99.53 510 0.56 1998-99 98,557 98,267 99.71 74 98,341 99.78 291 0.30 1999-00 107,948 107,794 99.86 72 107,866 99.92 154 0.14 2000-01 105,890 105,646 99.77 94 105,740 99.86 245 0.23 r. 2001-02 112,419 112,087 99.70 83 112,170 99.78 332 0.30 2002.03 122,450 122,210 99.80 98 122,308 99.88 241 0.20 2003-04 134,389 134,132 99.81 94 134,226 99.88 257 0.19 w Source: Orange County Auditor-Controller's Office. 42 ss ORANGE COUNTY SANITATION DISTRICT Property Tax Rates- Direct and Overlapping Governments WW (per$100 of asessed value) Last Ten Fiscal Years am Fiscal Basic OCSD#11, 1958 Year 1%Levy Bond I&R Fund Total 1994-95 1.00000 0.00019 1.00019 ow 1995-96 1.00000 0.00018 1.00018 1996-97 1.00000 0.00010 1.00010 1997-98 1,00000 0.00010 1.00010 1998-99 1.00000 0.00020 1.00020 No 1999-00 1.00000 0.00000 1.00000 2000-01 1.00000 0.00000 1.00000 2001-02 1.00000 0.00000 1.00000 00 2002-03 1.00000 0.00000 1.00000 2003-04 1.00000 0.00000 1.00000 00 Source: County of Orange Auditor-Controller's Office. ow ORANGE COUNTY SANITATION DISTRICT Principal Users For the Current Fiscal Year and Nine Years Ago MW Fiscal Year Ended 6/30104 Fiscal Year Ended 6130195 %to Total %to Total ew Service Service Charge Service Service Charge User Charges Rank Revenue Charges Rank Revenue Alstyle Apparel-Activewear Mfg. $583,330 1 0.66% ow Stremicks Heritage Foods, LLC 510,594 2 0.58% Disneyland Resort&Park 458,792 3 0.52% MCP Foods, Inc. 454,965 4 0.51% Wd House Foods America Corp. 385,662 5 0.44% Kimberly-Clark Worldwide, Inc. 368,243 6 0.42% $ 671,211 1 0.95% U.S. Dyeing & Finishing, Inc. 290,228 7 0.33% Disneyland Resort--DCA 252,466 8 0.28% tow Van Law Food Products, Inc. 237,297 9 0.27% Knotts Berry Farm Foods 189,281 10 0.21% Hunt-Wesson, Inc. 352,296 2 0.50% Shell Western E&P 261,638 3 0.36% Adohr Farms 249,273 4 0.35% Marine Corps Air Station 210.596 5 0.30% NO Pepsi-Cola Bottling 193,078 6 0.27% Sundor Brands 181,413 7 0.26% Coca-Cola Foods 161,056 8 0.23% Kraft Foods, USA 138,199 9 0.20% Anaheim Citrus 134,342 10 0.19% $3,730,858 4.22% $2,543,102 3.61% Source: Orange County Sanitation District's Accounting Division. 43 w ORANGE COUNTY SANITATION DISTRICT Number of Accounts and Revenues by Customer Class W (Dollars in Millions) Last Ten Fiscal Years Residential/Commercial Industrial 6W Number of Total Percentage Total Percentage Equivalent Sewer Svc. of Sewer Number of Sewer Svc. of Sewer Single-Family Charge Service Charge Customer Charge Service Charge ' Fiscal Year Dwellings Revenue Revenues Accounts Revenue Revenues 1994-95 858,076 $51.1 88% 935 $7.0 12% 1995-96 849,576 58.1 90% 892 6.6 10% W 1996-97 814,001 66.2 92% 869 6.0 8% 1997-98 851,770 62.2 92% 678 5.7 8% 1998-99 882,103 61.6 89% 678 7.8 11% 1999-00 919,072 72.0 89% 649 9.1 11% 2000-01 883,603 64.5 91% 596 6.6 9% 2001-02 898,031 70.3 90% 573 7.5 10% 6W 2002-03 897,757 77.0 92% 603 6.3 8% 2003-04 860,156 86.0 92% 460 7.5 8% W Source: Orange County Sanitation District's Accounting Division. 6W Imi ORANGE COUNTY SANITATION DISTRICT Annual Sewer Service Charges Single Family Residence Rate Last Five Fiscal Years and Next Fiscal Year(Note 1) Sewer Service Fiscal Year Charge 1999-00 $ 81.02 2000-01 78.00 �+ 2001-02 80.00 2002-03 87.50 2003-04 100.00 6W 2004-05 115.00 Note 1: Prior to FY 1999/00, the District was comprised of nine separate Districts, and each District had their own rate. Data on the District's single rate will be compiled and will be added to this schedule until ten year's accumulated data is available. W Source: Orange County Sanitation District's Accounting Division. W 44 6W d. ORANGE COUNTY SANITATION DISTRICT Comparison of The Volume of Wastewater Treated too With Revenues and Expenses Last Ten Fiscal Years .n Millions of Gallons of Waste- Treatment 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 Thousands) (In Thousands) (In Thousands) 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 1999-00 241 500.75 95,798 41,224 81,637 66,833 2000-01 246 512.78 106,508 18,011 73,254 87,446 bob 2001-02 234 563.09 115,553 22,015 80,005 81,975 2002-03 239 730.32 123,363 13,925 89,164 81,332 2003-04 238 882.94 141,521 19,920 102,327 63,655 .w An Interim Strategic Plan Update to the year 2020 was completed in September 2002 that projects wastewater treatment flows to increase to 284 millions of gallons per day(mgd) in 2010, to 302 mgd in 2015, and to 321 mgd in the year 2020. In order to manage the anticipated increase in wastewater flows, the District has identified a$2.4 billion capital expansion plan through 2020. Total expenses in FY 2003-04 increased $42.6 million, or 35.9 percent since FY 1994-95, primarily as a result of (1)the expected increase in wastewater flows, (2)the District's decision beginning in FY 2002-03 to maximize existing secondary treatment facilities as the Agency moves from a 50/50 mix of primary and secondary effluent treatment to meeting secondary treatment standards by December 31, 2012, and (3) the District's decision to eliminate most bacteria from the ocean outfall discharge by disinfecting the effluent beginning in FY 2002-03 at an additional cost in chemicals of$7 million annually. Depreciation expense represents 28.2 percent of the increase as a result of the previous expansion in capital facilities and the financing associated with the expansion. Maintenance, chemicals, utilities, and other operating tow costs represent another 32.6 percent of the increase, and are primarily due to the increase in the levels of treatment referred to above. In FY 2003-04, personnel expenses rose 25.8 percent over the prior year. This increase is mainly due to the additional 27 full-time equivalent positions authorized in FY 2003-04. As depicted from the chart above, actual wastewater treatment flows have consistently remained between 237 mgd and 244 mgd, other than in FY 1997-98 which reached a high of 254 mgd and in FY 2000-01 which .r reached 246 mgd. Due to normal weather conditions during the year, FY 2003-04 had flows of 238 mgd. Source: Orange County Sanitation District. 45 ORANGE COUNTY SANITATION DISTRICT Property Value and Construction Covering The Entire County of Orange(i) (Dollars In Thousands) Last Ten Fiscal Years Non- Assessed Residential Residential Property Value(2) Constr. (3) Construction (3) Total ►�+ Fiscal Calendar No.of Construction Year Value Year Value Units Value Value(3) 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 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 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 8,646 1,905,321 3,254,928 68' 2001-02 248,966,581 2002 1,208,626 12,020 2,328,123 3,536,749 2002-03 269,684,864 2003 1,005,547 9,310 2,076,443 3,081,990 2003-04 287,923,828 2004 (4) 1,085,485 9,370 2,384,401 3,469,886 W Notes and Data Sources 6.j (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-Orange County Auditor-Controller's Office. (3) - Data Source-"The Chapman University Economic& Business Reivew." rw (4) - Forecasted numbers. 6W 46 krd ORANGE COUNTY SANITATION DISTRICT Ratio of Annual Debt Service for -- Bonded Debt to Total Expenses (Dollars in Thousands) Last Ten Fiscal Years 60.0%- 50.0%- 40.0% 30.0%- 20.0%- - 10.0%- .r 1994-95 1995.96 1996-97 1997-98 1998-99 1999-00 2000.01 2001-02 2002-03 2003-04 - Total Ratio of Debt Principal Total Debt Operating Service to Total Fiscal Year (1) Interest Service Expenses(2) Operating Expenses 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 1999-00 12,880 17,169 30,049 59,415 50.57 2000-01 13,790 16,690 30,480 62,320 48.91 2001-02 10,370 13,051 23,421 68,563 34.16 2002-03 11,025 11,433 22,458 79,669 28.19 2003-04 11,610 22,508 34,118 95,403 35.76 - Notes (1)- Excludes principal reductions due to advanced refunding. (2)- Excludes depreciation and amortization expense. Source: Orange County Sanitation District's Accounting Division. 47 - ORANGE COUNTY SANITATION DISTRICT Bond Coverage (Dollars in Millions) Last Six Fiscal Years r- 4.50 - - - -- 4.00 - - -- ---- 3.50 3.00 2.50 2.00 1.50 1.00 0.50 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Fiscal Year Ending June 30, 1999 2000 2001 2002 2003 2004 Revenues Sewer Service Charges, net of refunds $ 61.6 $ 72.0 $ 64.5 $ 70.3 $ 77.0 $ 86.0 Industrial Sewer Service Charges 7.8 9.1 6.6 7.5 6.3 7.5 Revenue Area No. 14 Fees 0.7 2.2 2.0 2.2 3.2 5.8 Ad Valorem Taxes 32.8 35.6 38.4 41.1 44.6 46.9 Interest Earnings 17.9 20.5 39.4 27.8 25.9 6.8 Capital Facilities Capacity Charges 9.5 7.9 7.3 10.6 10.1 9.0 �- Other Revenues 2.4 1.2 2.5 2.5 3.4 4.0 Total Revenues(operating and non-operating) 132.7 148.5 160.7 162.0 170.5 166.0 Operating Expenses(excludes depreciation) 54.7 59.4 62.3 68.6 79.7 95.4 _ Net Revenues $ 78.0 $ 89.1 $ 98.4 $ 93.4 $ 90.8 $ 70.6 Debt Service Requirements Principal Payments 12.1 12.9 13.8 10.4 11.0 11.6 Interest Payments 18.5 17.2 16.7 13.0 11.4 22.5 Total Debt Service Requirements $ 30.6 $ 30.1 $ 30.5 $ 23.4 $ 22.4 $ 34.1 ..y Coverage Ratios 2.55 2.96 3.23 3.99 4.05 2.07 Ending Reserves, Excluding Debt Service Funds $ 343.0 $ 401.0 $ 444.0 $ 430.0 $ 394.0 $ 518.0 r., Source: Orange County Sanitation District's Accounting Division. r 48 r+ ORANGE COUNTY SANITATION DISTRICT Computation of Direct and Overlapping Debt June 30, 2004 to 2003-04 Assessed Valuation(Land&Improvements Only): $180,505,310,165(after deducing$20,947,092,074 redevelopment Incremental valuation) %Applicable Debt 6/30/04 Overlapping Tax and Assessment Debt (Based on redevelopment adjusted all property assessed valuation of$187,808,402,503): WIN Orange County Teeter Plan Obligations 72.465% $ 90,164,576 Metropolitan Water District of Southern California 15.356 68,714.261 Coast Community College District 99.526 109,478,600 North Orange County Joint Community College District 96.844 230,327,960 oft Rancho Santiago Community College District 98.321 94,511,061 Brea-Olinda and Laguna Beach Unified School Districts 97.794&6.659 28,181.285 Newport Mesa Unified School District 99.999 109,083,909 Placentia-Yorba Linda Unified School District 98.597 72,145,933 Santa Ana Unified School District 100.000 142,623,156 bw Tustin Unified School District School Facilities Improvement District No.2002-1 98.701 14,805,150 Anaheim and Fullerton Joint Union High School Districts 100.000 150,217,812 School Districts 100.000 183,088,111 Cities Various 6,999.637 how Irvine Ranch Water District Improvement Districts Various 212,326,602 Yorba Linda County Water District,I.D.No.2 100.000 1,620,000 Other Special Districts 100.000 790,000 Bonita Canyon Community Facilities District No.98-1 100.000 44,325,000 Irvine Unified School District Community Facilities District No.86-1 99.998 98,653,027 Tustin Unified School District Community Facilities District No.88-1 and 97-1 100.000 163,442,675 Orange County Community Facilities District No.87-4 99.836 71,683,796 Other Community Facilities Districts Various 258,027,023 Orange County Assessment Districts 100.000 102,629,366 low City of Irvine 1915 Act Bonds 100.000 633,461,759 City of Tustin 1915 Act Bonds 100.000 64,710,000 Other 1915 Act Bonds Various 25,423,996 Total Overlapping Tax and Assessment Debt $2,977,434,695 rr Direct and Overlapping Other Debt: Orange County General Fund Obligations 72.465% $ 671,257,063 Orange County Pension Obligations 72.465 84,619,186 Orange County Board of Education Certificates of Participation 72.465 14,456,768 WW Orange County Transit District Authority 72.465 3,579,771 Coast Community College District Certificates of Participation 99.526 7,633,644 South Orange County Community College District Certificates of Participation 34,057 14,263,072 Brea-Olinda Unified School District Certificates of Participation 97.794 32,364,924 Orange Unified School District Certificates of Participation 96.671 50,906,949 'm Santa Ana Unified School District Certificates of Participation 100.000 48,587,686 Other Unified School District Certificates of Participation Various 26,555,618 Union High School District Certificates of Participation Various 47,654,729 School District Certificates of Participation Various 26,233,122 wo City of Anaheim General Fund Obligations 99.145 674,948,972 City of Fullerton General Fund Obligations 100.000 36,526,753 City of Huntington Beach General Fund Obligations 99.982 80,940,869 City of Irvine General Fund Obligations 100.000 48,270,000 WW City of Santa Ana General Fund Obligations 100.000 135,595.101 Other City General Fund Obligations Various 187,968,212 Orange County Sanitation District Certificates of Participation(1) 100.000 -0- Irvine Ranch Water District Certificates of Participation 88.188 43,035,744 Municipal Water District of Orange County Water Facilities Corporation 67.203 28,033,731 WW Yorba Linda County Water District Certificates of Participation 97.472 10,375,894 Orange County Fire Authority 44.777 10,099,452 Other Special District Certificates of Participation 100.000 75.000 Total Gross Direct and Overlapping Other Debt $2,433,447,260 WW Less: Orange County Transit District Authority(80%self-supporting) 2,863,817 City of Anaheim self-supporting obligations 639,147,489 Other City self-supporting obligations 10,501,799 MWDOC Water Facilities Corporation(100%self-supporting) 28,033,731 �Xw Total Net Direct and Overlapping Other Debt $1,752,900,424 Gross Combined Total Debt(2) $5,410,881,955 Net Combined Total Debt $4,730,335,119 (1) Excludes certificates of participation supported by wastewater revenues. No (2) Excludes tax and revenue anticipation notes,revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to: Total Overlapping Tax and Assessment Debt Gross Combined Total Debt Net Combined Total Debt Land&Improvement Assessed Valuation 1.49% 3.01% 2.61% All Property Assessed Valuation N/A 2.89% 2.51% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/03: $16,777,042 Source: California Municipal Statistics. 49 l 6.r ORANGE COUNTY SANITATION DISTRICT Demographic Statistics Covering The Entire County of Orange(i) Last Ten Fiscal Years i l�r (2) (3) (4) (6) Population Median Public School (5) Total Debt Fiscal Estimates Family Enrollment Unemployment COP Debt Per Year (In Thousands) Income (In Thousands) Rate (In Thousands) Capita low 1994-95 2,641 $55,507 412 5.1% $418,375 $158 1995-96 2,624 57,106 422 4.1% 408,210 156 1996-97 2,632 59,629 443 3.2% 397,545 151 6w 1997-98 2,615 61,812 458 2.9% 386,240 148 1998-99 2,776 63,478 471 2.6% 374,135 135 1999-00 2,828 69,310 483 2.9% 361,255 128 6w 2000-01 2,880 70,577 494 3.0% 386,370 134 2001-02 2,940 70,887 503 4.1% 376,000 128 2002-03 2,979 72,985 512 4.0% 364,975 123 Ir 2003-04 3,017 74,814 (7) 515 3.6% 633,365 210 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. 6w (3)-Data Source-Anderson Center for Economic Research, Chapman University V (4)-Data Source-California Department of Education, Educational Demographics Unit. (5)-Data Source-State of California, Employment Development Department as of June 30 of each fiscal year. (6)- Data Source-Orange County Sanitation District's Accounting Division. Equals total certificates of participation outstanding at the end of the year. (7)-Estimated number. i 50 ORANGE COUNTY SANITATION DISTRICT Estimated Populations Served by the Orange County Sanitation District June 30, 2004 Population as of bow January 1, 2004 Anaheim 343,000 Brea 38,950 d. Buena Park 80,600 Costa Mesa 113,000 Cypress 48,450 e•+ Fountain Valley 56,500 Fullerton 134,200 Garden Grove 171,000 Md Huntington Beach 198,800 Irvine 171,800 La Habra 61,500 ,d La Palma 16,050 Los Alamitos 11,950 Newport Beach 80,800 tow Orange 136,700 Placentia 49,900 Santa Ana 349,100 WW Seal Beach 24,950 Stanton 38,600 Tustin 70,300 Villa Park 6,200 Westminister 91,500 Yorba Linda 64,000 Subtotal City(1) 2,357,850 Estimated Population Served in Unincorporated Areas(2) 83,500 2,441,350 bW Data Sources: (1) Demographic Research Unit, California Department of Finance. (2)Orange County Sanitation District Accounting Division. 51 ORANGE COUNTY SANITATION DISTRICT Insurance in Force As of July 1,2004 I ' Type Insurer Deductible Limit I..I All-Risk Property Fire and Other Perils Public Entity Property $25,000 per occurrence $750 million/occurrence Insurance Program Flood Public Entity Property $100,000 per occurrence $300 million/occurrence Insurance Program e•+ Earthquake Not Applicable Not Applicable Self-insured Boiler&Machinery Lexington Insurance Co.,CNA $25,000 to $100 million/occurrence Insurance Co., and Foreign $100,000 Excess Insurance Co. Employee Dishonesty/ Hartford Fire, National Union $2,500 $1 million/loss; jam, Faithful Performance/ Fire, and Great American $4 million excess policy Errors &Ommissions Insurance Companies 6W Excess Insurance Co of the State of $250,000 $25 million/occurrence General Liability PA(first$10 million and annual aggregate layer); Gulf Underwriters 6+ Insurance Company($15 million layer excess$10 million) Travel&Accident Nationwide Life Insurance $0 Accidental Death & Dismemberment: Class 1: Elected Officials; $500,000 per occurrence Class 2: Employees; 10 X annnual salary, up to WEI $500,000 per occurrence Excess Workers' Compensation CA Public Entity Insurance $500,000 $50 million each accident, W Authority Each Accident each employee v 6W Source: Orange County Sanitation District's Risk Management Office. iw 52 lam, ORANGE COUNTY SANITATION DISTRICT Authorized Full-time Equivalents by Function �. Last Ten Fiscal Years 400 350- 300 250 200 150 100 50- l _ 0- 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 N General Management ■Finance ❑Human Resources ❑Technical Services ■Engineering 0Operations and Maintenance ■Information Technologies Fiscal Year Ending June 30, 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 General Management 18 21 18 16 15 13 12 17 17 17 Finance 40 42 41 39 38 37 37 39 39 40 Human Resources 25 19 17 18 17 17 18 19 28 30 Technical Services 128 121 104 100 93 88 87 95 94 100 Engineering 74 77 73 72 67 75 73 104 79 80 Operations and Maintenance 362 375 342 289 286 255 250 261 272 285 Information Technologies 21 23 21 26 26 33 33 39 40 44 Total FTE's 668 678 616 560 542 518 510 574 569 596 Source:Orange County Sanitation District's Accounting Division. 53 ORANGE COUNTY SANITATION DISTRICT Biosolids Produced Last Ten Fiscal Years 55,000 50,000 45,000 .. 40,000 35,000 30,000 25,000 20,000 O 1994-95 ■1995-96 O 1996-97 O 1997-98 ■1998-99 ■1999-00 ❑2000-01 O 2001-02 ®2002-03 ■2003.04 Fiscal Year Tonnage 1994-95 40,228 1995-96 38,802 1996-97 39,386 1997-98 42,645 1998-99 41,127 1999-00 42,831 2000-01 42,254 2001-02 42,505 2002-03 47,631 2003-04 50,519 Source:Orange County Sanitation District's Environmental Assessment Division. 54 MW ORANGE COUNTY SANITATION DISTRICT ,t, Miscellaneous Statistics June 30, 2004 MW District Organization: The Orange County Sanitation District is one consolidated district made up of two revenue areas which service unincorporated county areas and twenty-three cities and related special districts, as follows: d.+ Consolidated Revenue Area County of Orange(unincorporated areas) Cities: w Anaheim Huntington Beach Santa Ana Brea Irvine Seal Beach Buena Park La Habra Stanton Costa Mesa La Palma Tustin m-+ Cypress Los Alamitos Villa Park Fountain Valley Newport Beach Westminster Fullerton Orange Yorba Linda Garden Grove Placentia Special Districts: Midway City Sanitary District Costa Mesa Sanitary District Revenue Area No. 14 County of Orange (unincorporated areas) Cities: Irvine Orange Tustin Special District: Irvine Ranch Water District Governing Body: 25-member Board of Directors Authorized Full-Time Equivalent Employees: 596 Operational Date: July 1, 1954 Authority: California Health & Safety Code Section 4700 et. seq. too Services: Wastewater collection, treatment, and disposal Service Area: 471 square miles Population Served: 2.4 million Total Miles of Trunk and Subtrunk Sewers: 650 miles Number of Pumping Stations: 19 Wastewater System Treatment Capacities (Million Gallons per Day) Existing Primary Existing Secondary Planned Capacity Actual Flows Treatment Capacity Treatment Capacity by 2020 Plant 1 87 108 75 170 Plant 2 151 168 90 150 Total ZM 2 Source: Orange County Sanitation District's Accounting Division. m 55 aw W Ll L L L (THIS PAGE INTENTIONALLY LEFT BLANK) L Ll W L L L Ll Ll L 56 L ORANGE COUNTY SANITATION DISTRICT (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 6/30/04