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2006-05-24
,.. ORANGE COUNTY SANITATION DISTRICT May 17, 2006 P1m 962--241 NOTICE OF MEETING tea: I7141 9e2Z356 wrom.a.d.etm m,nlessakrola; BOARD OF DIRECTORS P.O.eiValley,galley Cf] Ftun ORANGE COUNTY SANITATION DISTRICT 92]28-912] street address: 10944 nue Fountanllis Valllley,CA WEDNESDAY, May 24, 2006 — 7:00 P.M. 92]08-7018 Member agencies DISTRICT'S ADMINISTRATIVE OFFICES • 10844 Ellis Avenue Cities Fountain Valley, California 92708 Anaheim Brae Buena Park Cypress Fountain Valley The Regular Meeting of the Board of Directors of the Orange County Sanitation Fullerton Garden Grow, District will be held at the above location, time and date. Huntington Beach ,.a Le Habra La Prune Lee Alamitos ' Newport Beech f orange Q and Secrek ry Placenta Santa An e Beal Beach Stanton Tustin Villa Perk PDC COMMITTEE -Thursday,June 1,2006 at 5:00 p.m. Y rba Linda County of orange OMTS COMMITTEE -Wednesday,June 7, 2006 at 5:00 p.m. Sanitary Districts GWR SYSTEM STEERING COMMITTEE -Monday,June 12,2006 at 5:30 p.m. @OCWD Costa Mee. LEGISLATIVE AFFAIRS -Tuesday,June 13,2006 at 8:00 a.m. Midway City Water Districts FAHR COMMITTEE -Wednesday,June 14, 2006 at 7:00 p.m. Irvme Ranch STEERING COMMITTEE -Wednesday,June 28,2006 at 5:00 p.m. To maintain world-class leadership In wastewater and water resource management. 'FT BOARD MEETING DATES June 28, 2006 *July 19, 2006 August 23, 2006 September 27, 2006 October 25, 2006 'November 15, 2006 *December 20, 2006 January 24, 2007 February 28, 2007 March 28, 2007 April 25, 2007 May 23, 2007 *Meetings are being held on the third Wednesday of the month WdepM6Publlc Aflalrs'320 &Agenda\2006 Meeting NoOmWN05.2.doc i ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE & TIME: May 24, 2006 at 7:00 p.m. (SIMONIAN) .....................ANDERSON................... ( G_� (YOST) .............................ANTOS ......................... (WILSON) ........................BANKHEAD...................�✓ (AMBRIZ)..........................CAVECCHE................... 6iG_d� (GARCIA)..........................CHRISTY..................... (COLLINS)........................CRANDALL................... —� (ROSEN)...........................DALTON....................... �� r (KAWASHIMA)..................DAVERT._....... ........... — (WINDER)........................DUVALL...................... i ✓ (UNDERHILL) ...................ECKENRODE................. �G ✓ (SCHAFER) ......................FERRYMAN................... ✓ — (FAUTEUX).......................FRESCHI .............. ..... �L (CHOI)...............................KANG.......................... ✓ — (SONDHI)..........................LUEBBEN..................... (DOW)...............................MARSHALL.................. i — (REINHART).....................MILLER ......................... �G — (BEALIMAN)......................MOORE........................ — (KIRKPATRICK-PILGER) .NEUGEBAUER.............. (DRISCOLL)......................PARKER....................... y y — (WEBB) ............................RIDGEWAY................... ✓ — (DONAHUE) .....................SHAWVER.................. -G a (HERNANDEZ).................SIDHU.......................... ✓ ✓ — (CORREA)........................SILVA........................... ca, a'� (COOK) ............................SULLIVAN...................... (RODRIGUEZ)..................WALDMAN.................... ✓ — STAFF: Arhontes Colson ✓ Ghirelli 62-1 Herber ✓ Kovac Kyle Ludwin ✓ Miles Ruth Ta TF6t ✓ Tyner OTHERS: peoft r A,A ��� 04/26/06 A� H:WeptladminOS\DIRECTOR\Directors Roll Call.doc ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE & TIME: May 24, 2006 at 7:00 p.m. 6NLaq (SIMONIAN) .....................ANDERSON...................a, W a — (YOST) .............................ANTOS .........................JL — (WILSON) ........................BANKHEAD................... /V_ — (AMBRIZ)..........................CAVECCHE...................� Z — — (GARCIA)..........................CHRISTY..................... �� ✓ (COLLINS)........................CRANDALL................... _� Aj — — (ROSEN)...........................DALTON....................... �� N ✓ — — (KAWASHIMA)..................DAVERT...................... y — (WINDER)........................DUVALL...................... — (UNDERHILL) ...................ECKENRODE................. �� / L — (SCHAFER) ......................FERRYMAN................... — (FAUTEUX).......................FRESCHI .............. ..... (CHOI)...............................KANG.......................... (SONDHI)..........................LUEBBEN..................... (DOW)...............................MARSHALL.................. (REINHART) .....................MILLER ......................... � = y — (BEAUMAN)......................MOORE........................ — (KIRKPATRICK-PILGER) .NEUGEBAUER.............. (DRISCOLL)......................PARKER....................... (WEBB) ............................RIDGEWAY................... = y — (DONAHUE) .....................SHAWVER.................. c r , — (HERNANDEZ) .................SIDHU.......................... , N — (CORREA)........................SILVA........................... cL (COOK) ............................SULLIVAN..................... — (RODRIGUEZ)..................WALDMAN.................... loJre �t - - STAFF: l�r Arhontes Colson Ghirelli Herberg Kovac Kyle Ludwin Miles Ruth Tomko Tyner OTHERS: Ho in 04/26/06 H:\depMdmin\BS\DIRECTOR\Directors Roll Call.doc ION-IN SHEET ORANGE COUNTY SANITATION DISTRICT �C BOARD MEETING NAME ORGANIZATION/FIRM leaseprint) leaseprint) 1 L— KO DTAWDMIMBSIFORMSISIGN-IN FORMDOC Revised MINUTES OF PLANNING. DESIGN AND CONSTRUCTION COMMITTEE MEETING Orange County Sanitation District Thursday, May 4, 2006, at 5 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, May 4, 2006, at 5 p.m., in the Sanitation District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: PDC COMMITTEE MEMBERS: Directors Present: Staff Present: Tod Ridgeway, Chair Jim Ruth, Interim General Manager Norm Eckenrode, Vice Chair David Ludwin, Director of Engineering Steve Anderson, Board Chair Tod Haynes, Construction Manager Charles Antos Matt Smith, Engineering Manager Alberta Christy Jennifer Cabral, Public Information Specialist Larry Crandall Penny Kyle, Committee Secretary Doug Davert Dave May Roy Moore Jeff Reed Harry Sidhu Jim Burror Hardat Khublall Directors Absent: Jim Ferryman, Board Vice Chair Others Present: Patsy Marshall Dave Kendig (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Tod Ridgeway did not make a report. (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, did not make a repc _ Di tributed at S l D Board Meeting PDC Committee Minutes Page 2 May 4, 2006 (6) REPORT OF THE DIRECTOR OF ENGINEERING David Ludwin, Director of Engineering, provided brief updates on the Bushard Trunk Sewer project and pipe procurement and the Santa Ana River Interceptor line. (7) REPORT OF GENERAL COUNSEL General Counsel was not present. (8) CONSENT CALENDAR a. Approve minutes of the April 6, 2006 Planning, Design, and Construction Committee Meeting. b. CHANGE ORDER REPORTS Action on change orders that require PDC Committee or Board approval will be taken separately. There are four changes orders this month for PDC approval. C. PSA AND AMENDMENT REPORT Action on PSAs and Amendments that require PDC Committee or Board approval will be taken separately. There were no PSAs and no Amendments approved by the General Manager from March 24 through April 20,2006. d. FACILITIES ENGINEERING CONSULTANT ACTIVITY REPORT This report is an information only item. e. SANTA ANA RIVER INTERCEPTOR RELOCATION AND PROTECTION STATUS REPORT This is an information only item. f. BUSHARD TRUNK SEWER REHABILITATION REPORT This is an information only item. MOTION: It was moved, seconded, and duly carded to approve the recommended actions specified as Items 8(a)through (f). END OF CONSENT CALENDAR (9) INFORMATIONAL ITEMS a. PDCO6-35 FY 2006-07 and 2007-08 District Budget Lorenzo Tyner, Director of Finance, briefly reviewed highlights and updates to the proposed budgets scheduled to be adopted by the Board of Directors at the June 28, 2006 meeting. PDC Committee Minutes Page 3 May 4, 2006 b. PDCO6-36 MacArthur Pump Station Rehabilitation Project, Contract No. 7-49 Jim Burror, Engineering Supervisor, provided a brief overview of the Initial Study/Negative Declaration for the project. (10) ACTION ITEMS a. PDCO6-37 MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No.1 to Plant 2, Underground Storage Tank Rehabilitation at Headworks Electric Power Building B, Job No. FE05-34,with Western Pump Inc., authorizing an addition of$10,723, Increasing the total contact amount to $139,168; and (2)Accept Plant 2, Underground Storage Tank Rehabilitation at Headworks Electric Power Building B,Job No. FE05-34, as complete,authorizing the Final Closeout Agreement. This item is for PDC approval per Delegation of Authority Resolution No. OCSD 04-08. b. PDCO6-38 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to ratify Change Order No. 26 to Primary Clarifiers 16-31 and Related Facilities,Job No. P1-37,with Margate Construction, authorizing an addition of$272,749 and 142 calendar days, increasing the total contract amount to$72,361,599. C. PDCO6-39 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to ratify Change Order No. 2 to Headworks Improvements at Plant No. 2, Job No. P2-66,with J.F. Shea Construction, Inc., authorizing an addition of$356,647, increasing the total contract amount to $192,724,912. Director Davert abstained. d. PDC06-40 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to (1)Approve a budget Increase of$1,251,353 for a total budget of$11,470,885 for Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3;and (2) Ratify Change Order No. 8 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3, with Morrow-Meadows Corporation, authorizing an addition of$1,251,353 and a time extension of 17 calendar days, increasing the total contract amount to $7,262,408, and extending the contract completion to February 20, 2006. e. PDCO6-41 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve a Professional Services Agreement with Malcolm Pimie, Inc. providing for engineering services for the Rocky Point Pump Station Replacement, Contract No. 5-50, for an amount not to exceed $2,475,973. I. PDCO6-42 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to(1)Approve Amendment No. 1 to the Professional Design Services Agreement with Malcolm Pimie, Inc. for preparation of construction documents and to provide construction support services for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, providing for additional engineering and construction support services at no additional PDC Committee Minutes Page 4 May4, 2006 cost due to the savings realized during the preparation of the Preliminary Design Report; and (2)Approve a reduction of$638,505 to the agreement reducing the total amount to not exceed $1,580,825. 9. PDC06-43 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 2 to the Professional Services Agreements with Geo-Matrix Consultants Inc., Kleinfelder Inc., and Smith- Emery Laboratories, and Amendment No. 3 to the Professional Services Agreements with Ninyo & Moore Geotechnical and Environmental Sciences Consultants to provide for materials testing, Inspection, and geotechnical engineering services, Specification No. PSA-2003-175,for a one-year period for an amount not to exceed $150,000 for each agreement($600,000 total). h. PDC06-44 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 2 to the Professional Services Agreements with Forkert Engineering&Surveying, Inc., MDS Consulting, RBF Consulting, and Amendment No. 3 to the Professional Services Agreement with Bush &Associates Inc. to provide for surveying services for capital projects, Specification No. PSA-2003-176,for a one-year period for an amount not to exceed$150,000 for each agreement($600,000 total). Director Davert abstained. I. PDC06-45 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 3 to the Professional Services Agreement with Electrical Reliability Services, Inc.and Amendment No. 2 to Professional Services Agreement with Hampton-Tedder Electric Inc. to provide for electrical acceptance testing services, Specification No. PSA-2003-177, for a one-year period for an amount not to exceed $150,000 for each agreement($300,000 total). j. PDCO6-46 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 7 to the Professional Service Agreement with Tran Consulting Engineers for additional construction support services for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21,for an additional amount of$30,688, increasing the total amount not to exceed $644,983. k. PDCO6-47 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve funding for four new Cooperative Projects with the Cities of Huntington Beach, Newport Beach, Placentia, and Santa Ana, for a total amount not to exceed $1,515,297, as recommended by the Cooperative Projects Grant Committee. I. PDC06-48 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to consider the following actions relating to the purchase of certain real property interests in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49: PDC Committee Minutes Page 5 May 4, 2006 (1)Approve a Purchase and Sale Agreement with Horizontal Development LLC regarding an approximate one-third acre parcel, in an unincorporated area that is located near the Banning Ranch Pacific Coast Highway entrance for an amount not to exceed $160,000, in a form approved by General Counsel; (2)Authorize the General Manager to execute all Deeds and other evidences of title to the parcels of property, subject to the Purchase and Sale Agreement; (3)Authorize the General Manager to execute any and all other instruments related to the transaction with Caltrans for an amount not to exceed $40,000, in a form approved by General Counsel; (4)Approve an agreement with the City of Newport Beach to quitclaim the Bitter Point Pump Station property in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49,for an amount not to exceed$90,000, in a form approved by General Counsel; and (5)Authorize the General Manager to execute any other agreements necessary to acquire said property for an amount not to exceed $20,000. M. PDC06-49 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Infrastructure&Technology Group, Inc., and CH2M Hill, Inc., authorizing: (1)Establish an amount not to exceed $14,999,656 for year five (Fiscal Year 2006-07)of the five-year contract; and, (2) Increase the total amount of the five-year contract to an amount not to exceed $60,092,039. n. PDC0650 MOVED,SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Change Order No. 1 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2.4A, with Mike Bubalo Construction Company, Inc., authorizing a contract reduction and an adjustment of contract length. o. PDCO6-51 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to authorize execution of an agreement with the Irvine Community Development Company re relocation of SARI Line and Mountain Park Sewer Line,to Include determinatlon of and resolution of maintenance and liability Issues, In a form approved by General Counsel. (11) CLOSED SESSION There was no closed session. (12) OTHER BUSINESS COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY There were none. PDC Committee Minutes Page 6 May 4, 2006 (13) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15) FUTURE MEETINGS DATES The next Planning, Design, and Construction Committee Meeting is scheduled for Thursday,June 1, 2006 at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Submitted by: v� 7 Penny M. le Committe Secrete HaaOofmsandawDC12006Nnnutesw50406 PDC Minut .dw May 24, 2006 sy MEMORAND_LM b — TO: Chair and Members of Board of Directors Orange County Sanitation District FROM: JameB'D'Ruth Interim General Manager, Orange County Sanitation District SUBJECT: May Status Report The following represents a status report on critical district issues that the General Manager and staff have focused on during this past month. 1. Two-Year Budget The first two-year budget will be presented to the Board at the June meeting. The budget is based on a proposed 9.8% rate increase and a scaled back Capital Improvement Program (CIP) reflecting $474 million in deleted, deferred, or re-scoped projects. 2. Independent Reviews Requests for Proposals (RFP)are being finalized by staff to conduct Independent Reviews of our CIP, Operations & Maintenance (O&M), and Regional Assets & Services (RA&S)operations. It is anticipated proposals should be received during the month of July and submitted to the Steering Committee and Board of Directors for review and consideration. 3. Performance Evaluation System Training has been completed for Managers and Executive Management Team (EMT)on the new Performance Evaluation System and will be implemented on July 1, 2006. Board members will receive a draft set of proposed goals for the General Manager, along with instructions, guidelines, and training from our consultant, Barry Newton. 4. Information Technology(IT)Assessment IT assessment has been completed and will be evaluated by the General Manager for any appropriate follow up. 5. Training After a more comprehensive review of our management training needs, I believe a stronger emphasis on the basic fundamentals of management would be more effective in preparing our organization for the future. Such a program is offered by Louis Allen, a worldwide training organization. Our department heads received an introductory to the program and are very supportive. Once the fundamentals are in place, then we could consider establishing a leadership academy. I will report back to the Board in June on our progress. Zi 7ID'stributed at , JG� Board Meeting May 24. 2006 MEMORANDUM TO: Chair and Members of Board of Directors Orange County Sanitation District FROM: Jame*uth Interim General Manager, Orange County Sanitation District SUBJECT: May Status Report The following represents a status report on critical district issues that the General Manager and staff have focused on during this past month. 1. Two-Year Budget The first two-year budget will be presented to the Board at the June meeting. The budget is based on a proposed 9.8% rate increase and a scaled back Capital Improvement Program (CIP)reflecting $474 million in deleted, deferred, or re-scoped projects. 2. Independent Reviews Requests for Proposals (RFP)are being finalized by staff to conduct Independent Reviews of our CIP, Operations & Maintenance (O&M), and Regional Assets & Services (RA&S)operations. It is anticipated proposals should be received during the month of July and submitted to the Steering Committee and Board of Directors for review and consideration. 3. Performance Evaluation System Training has been completed for Managers and Executive Management Team(EMT)on the new Performance Evaluation System and will be implemented on July 1, 2006. Board members will receive a draft set of proposed goals for the General Manager, along with instructions, guidelines, and training from our consultant, Barry Newton. 4. Information Technology(IT)Assessment IT assessment has been completed and will be evaluated by the General Manager for any appropriate follow up. 5. Training After a more comprehensive review of our management training needs, I believe a stronger emphasis on the basic fundamentals of management would be more effective in preparing our organization for the future. Such a program is offered by Louis Allen, a worldwide training organization. Our department heads received an introductory to the program and are very supportive. Once the fundamentals are in place, then we could consider establishing a leadership academy. I will report back to the Board in June on our progress. Distributed at 6 r Board Meeting Board of Directors Page 2 May 24, 2006 6. Succession Plan The Succession Plan is on schedule and will be implemented July 1, 2006. 7. Strategic Initiatives Ten major strategic initiatives impacting the Sanitation District have been incorporated into our proposed 2006-07 budget. These initiatives represent Board policy direction and have been developed through a comprehensive strategic planning process conducted by staff over the past 18 months. There is no current additional fiscal impact resulting from these initiatives. Progress reports to the Board will be updated bi-annually. 8. Joint Campus Ajoint campus between Orange County Sanitation District (OCSD)and Orange County Water District(OCWD) is under review through a cooperative study between our respective staff. Issues of security, traffic, risk and liability are being addressed. I will keep the Board advised of our progress. 9. RABS Property Acquisition An offer was made through our broker to acquire a 2.5 acre parcel with 50,000 sq.ft. of building space located in the Garden Grove industrial park area. The owner made a counter offer with certain conditions, and the Sanitation District has responded through our broker. Board has previously taken action on this item. 10. Labor Negotiations Human Resources staff and I will be working with the FAHR Committee to determine our market position and begin preparing for future labor negotiations. 11. Santa Ana River Interceptor(SARI) Line A meeting with the County of Orange Chief Executive Officer regarding the funding of the SARI line is scheduled for June 8, 2006. 12. Internal Audit Once the Budget is adopted, I have asked the Finance department to form an audit task force within the Finance department to examine our overhead costs and see how they can be reduced. JDR:gg H:WBplkadmlMl 101RUTH JAMES1.Rlalus Reports 2006=240 JDR Status repon memo to Bootoo L 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 V , 2006, was duly posted for public inspection in the main lobby of the Districts' offices on %hu IL 2006. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 2006. Penny M. K e, Secr ry Board of Directors Orange County Sanitation District HADEPT\HR\PUBLIC AFFAIRS\320\BS\F0RMS\AGEN0A CERTIFICATION.DOC ORANGE COUNTY SANITATION DISTRICT Date: May 17, 2006 phone: (7141 96 2-2411 To The Chair and Board of Directors fat: i7�,a.Posm From: James D. Ruth, Interim General Manager mailing address: Subject: Board Letter P.0 S.8127 Pouncain Valle,CA 92728-8127 street add...: 1oe44araA,.nu. CASA Spring Conference rountam Vane,.GA 927oa-7o18 The California Association of Sanitation Agencies (CASA) held its Spring Conference April 27-29 in Squaw Valley. Board Director Jim Silva attended along with Director of Member Technical Services Bob Ghirelli. Their report on the meeting is attached. CASA Ag.a.i.. announced its new Executive Director at the meeting. Catherine Smith, formerly • executive director of the California Special Districts Association, will start with CASA ein.s on July 1. Mike Dillon, CASA's executive director and lobbyist for the past 33 years will be stepping down as executive director, but will continue on as the association's anah9'e..in lobbyist. Buena Park Lypraaa Bushard Construction wurtiiinVeto, Fullerton The 4.5-mile Bushard Trunk is a major sewer line that serves the cities of Fountain Fullerton Garden Grove Valley, Westminster, Garden Grove, Stanton, Fullerton and Buena Park. The existing Handnpron Ir.n. 54-inch pipeline is being replaced with a 108-inch pipeline, to provide additional ne Le Habra storage and sewage capacity for the growing communities. The project is budgeted Ls Palme at $54 million and began in March 2005 with completion slated for summer 2007. Loa Alamitos Newport Beech gang. To receive information on ongoing construction, contact our Construction Hotline at Wecande 714-378-2965 or our Community Liaison, Kira Erquiaga at 949-413-7676. You can Banta Ana Seal Baach also sign up for electronic updates at http://www.ocsd.com/ezines/default.asp. Stanton TaaGn VIIe Park Celebrate Compost Awareness Week lbrba Linda OCSD is pleased to be a member of the U.S. Composting Council which recently co- count, of orange sponsored Compost Awareness Week. Other co-sponsors included well-known corporations such as Coca Cola, Starbucks, Chinet, as well as OCSD's compost Gi nmary Districts manufacturer, Synagro. MiNa,Wan OCSD has contracted with Synagro to create a compost soil amendment from our r h biosolids. Synagro's premium soil amendment is used to beautify landscapes Mtge District. throughout Orange County including parks, medians, planters, and turf fields. Irvine Ranch Synagro's nutrient-rich soil amendment is also available to Orange County consumers as an ingredient in the OMNI planting mix gardening product available at some local Wal-Marts. Using recycled biosolids-based products in Orange County help keep sewer ratepayer's costs low while creating beautiful landscapes. For questions regarding this event or other compost education opportunities, email or call Deirdre Bingman (dbingman@ocsd.com or 714-593-7459). To maintain.6idclass leadership in wsatewater and avatar resource management. °.�. Board of Directors Page 2 May 17, 2006 State Water Board Adopts Waste Discharge Requirements for Sanitary Sewer Collection Systems On May 2, 2006 the Slate Water Resources Control Board adopted their General Waste Discharge Requirement (WDR) and Monitoring and Reporting Program (No. 2006-0003)for all publicly owned sanitary sewer collection systems in California with more than one mile of sewer pipe. Their goal is to provide a consistent statewide approach for reducing Sanitary Sewer Overflows (SSOs). The Sanitation District has been operating under a Santa Ana Regional Board collection system WDR since April 2002. We are applying for coverage under the State's WDR and, within the next six months, will operate under this State WDR and the local WDR will be rescinded. Staff is currently reviewing the differences between Region 8 and State WDRs and will communicate to the Board at a future date any key issues or compliance requirements. GWR System Tours and Speaking Engagements Special lours of the Groundwater Replenishment System are being offered to OCSD and OCWD Directors before the monthly GWRS Steering committee meetings. The next tour will be on Monday, June 12, from 4:30- 5:30 p.m. starting in the OCWD Board Room. There is a lot to see as construction is entering the final phases and operations will soon be ramping up to go online in Fall 2007. Board members can help support GWR System outreach efforts by identifying opportunities for informational presentations to your city and community groups. OCSD and OCWD Directors are also welcome to attend any of the scheduled talks. For more information please contact Ingrid Hellebrand in the Public Information Office at(714) 593-7115. If you would like additional information on any of the above items, please call me. ,0 '� James D. Ruth Interim General Manager JDR:gg H:`QEEP1NGMiMGM90AF0 LERER,7W .N '7"BOARD Ll0.EXK Attachment Meeting Summary Report CASA Spring Conference April 27-29, 2006 Attended by: Director Jim Silva and Bob Ghirelli New Executive Director for CASA • Catherine Smith, formerly executive director of the California Special District Association, was selected as CASA's new Executive Director. She starts July 1. • Mike Dillon, outgoing executive director, will stay on as CASA's lobbyist. State Water Board Chair • In her remarks to the General Session, State Water Board Chair Tam Doduc emphasized her top three priorities for the water boards: o Make the water boards more open and transparent o Work toward greater consistency among regional water boards o Focus on water quality improvements not"bean counting" Water Issues • State Water Resources Control Board will consider May 2, 2006 adopting proposed General Waste Discharge Requirements (WDRs)for all publicly owned sanitary sewer collection systems in California. • CASA generally supports the W DRs and has identified several issues that must be addressed prior to adoption including on-line reporting, definitions of"major" and "minor' overflows, conflicts between the new program and existing permits and fees. • A number of CASA member agencies are planning to attend the hearing to speak to these concerns about the program. Land Issues • CASA Biosolids program manager is developing a strategic plan with emphasis in several areas: o assistance to agencies to help on public education and outreach o explore possible statewide policy to promote responsible biosolids management options • Biosolids to energy technology companies are marketing to wastewater treatment agencies in California. • Legislation is being introduced to proactively support the development of these conversion technologies. Air Issues • Two new state air programs will impact the wastewater industry • Listing of diesel particulate matter as a toxic air contaminant will affect operation of stationary and portable engines used at treatment plants • Newly released Governor's Climate Action Team report mandates reduction in energy usage by water and wastewater facilities in order to help reduce greenhouse gas emissions (e.g., carbon dioxide and methane). Federal Legislative Issues • Top federal legislative priority is to change Clean Water Act's income restriction rule. The rule prevents otherwise qualified individuals from serving on the State Water Board and Regional Water Quality Control Boards. • CASA will be seeking a sponsor to carry the legislation. State Legislative Issues • CASA is tracking about a dozen high priority bills affecting the wastewater industry • SB 1205 (Escutia) entitled the "Children's Breathing Rights Act of 2006 would increase penalties up to $50,000 for violations of a plant's air quality permit requirements. CASA, among others, opposes this legislation. • CASA is actively pursuing modifications to the Governor's infrastructure bond package to include funding for wastewater facilities. A proposal for a $30 billion package could appear on the November ballot if there is ultimate agreement among the Governor and legislative leaders. Diminishing Workforce of Certified Operators • An entire session was devoted to the issue of what can be done to increase the pool of certified operators for our treatment plants and collection systems • New rules are making it harder for employees to become certified, often taking 10 years to reach the top level of certification • Retirements are reducing the number of experienced operators—not enough new ones in the pipeline • Hard to recruit experienced operators in high costof-Irving areas • To avoid a shortage of operators, CASA agencies are: o Offering higher salaries for operators o Offering monetary incentives for certifications o Providing more training opportunities o Offering longevity pay and enhanced benefits for those who stay to 60+ o Restructuring operator position to eliminate routine work that could be done by laborers Design-Build • The design-build project delivery method can benefit public agencies in a variety of ways including 25-35% reduction in project schedules • A number of wastewater treatment projects are using D-B for treatment plant and sewer construction and rehabilitation projects AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING May 24, 2006 — 7:00 P.M. 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. 4. Appointment of Chair pro tem, if necessary 5. Public Comments 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 recommendations, presentations and awards b. Report of General Manager C. Report of General Counsel 7. Open nominations for Chair of the Board of Directors (Election to be held at the regular June Board Meeting). 8. If no corrections or amendments are made, the minutes for the regular meeting held on April 26, 2006, will be deemed approved as mailed and be so ordered by the Chair. 9. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 04/15/06 04/30/06 Totals $12.251.405.20 $13,214,189.32 05/24/06 Page 2 CONSENT CALENDAR 10. 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 summons and complaint re Joel Lorenz vs. Orange County Sanitation District, Orange County Superior Court Case No. 06CC05747, in connection with Standby Power and Reliability Improvements, Job No. J-33-1A; and, (2)Authorize General Counsel to appear and defend the interests of the Sanitation District. END OF CONSENT CALENDAR 11. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 12. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on April 26, 2006, to be filed. Non-Consent Calendar b. Review and consideration of agenda items considered by the Steering Committee re the May 24, 2006 meeting. 13. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE (OMTS) OMITS Consent Calendar a. Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on May 3, 2006 to be filed. b. Adopt Resolution No. OCSD 06-10, Support of Biosolids Recycling, and repealing Resolution No. OCSD 02-16. C. Receive and file the FOG Control Study, Phase II - Final Report, dated March 2006, prepared by Environmental Engineering and Contracting, Inc. Non-Consent Calendar d. Consideration of items deleted from OMITS Consent Calendar, if any. 05/24/06 Page 3 14. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE (PDC) PDC Consent Calendar a. Order draft Planning, Design and Construction Committee Minutes for the regular meeting held on May 4 2006,to be filed. b. Ratify Change Order No. 26 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37,with Margate Construction, authorizing an addition of$272,749 and 142 calendar days, increasing the total contract amount to $72,361,599. C. Ratify Change Order No. 2 to Headworks Improvements at Plant No. 2, Job No. P2-66, with J.F. Shea Construction, Inc., authorizing an addition of$356,647, increasing the total contract amount to$192,724,912. d. (1)Approve a budget increase of$1,251,353 for a total budget of$11,470,885 for Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3; and, (2) Ratify Change Order No. 8 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3, with Morrow-Meadows Corporation, authorizing an addition of$1,251,353 and a time extension of 17 calendar days, increasing the total contract amount to$7,262,408, and extending the contract completion to February 20, 2006. e. Approve a Professional Services Agreement with Malcolm Pimie, Inc. providing for engineering services for the Rocky Point Pump Station Replacement, Contract No. 5-50,for an amount not to exceed $2,475,973. f. (1)Approve Amendment No. 1 to the Professional Design Services Agreement with Malcolm Pirnie, Inc. for preparation of construction documents and to provide construction support services for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, providing for additional engineering and construction support services at no additional cost due to the savings realized during the preparation of the Preliminary Design Report; and, (2)Approve a reduction of$638,505 to the agreement reducing the total amount to not exceed $1,580.825. g. Approve Amendment No. 2 to the Professional Services Agreements with Geo-Matrix Consultants Inc., Kleinfelder Inc., and Smith-Emery Laboratories, and Amendment No. 3 to the Professional Services Agreements with Ninyc & Moore Geotechnical and Environmental Sciences Consultants to provide for materials testing, inspection, and geotechnical engineering services, Specification No. PSA-2003-175, for a one-year period for an amount not to exceed $150,000 for each agreement($600,000 total). 05/24/06 Page 4 h. Approve Amendment No. 2 to the Professional Services Agreements with Forked Engineering &Surveying, Inc., MDS Consulting, RBF Consulting, and Amendment No. 3 to the Professional Services Agreement with Bush & Associates Inc.to provide for surveying services for capital projects, Specification No. PSA-2003-176, for a one-year period for an amount not to exceed $150,000 for each agreement($600,000 total). i. Approve Amendment No. 3 to the Professional Services Agreement with Electrical Reliability Services, Inc. and Amendment No. 2 to Professional Services Agreement with Hampton-Tedder Electric Inc. to provide for electrical acceptance testing services, Specification No. PSA-2003-177, for a one-year period for an amount not to exceed $150,000 for each agreement ($300,000 total). j. Approve Amendment No. 7 to the Professional Service Agreement with Tran Consulting Engineers for additional construction support services for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21,for an additional amount of$30,688, increasing the total amount not to exceed $644,983. k. Approve funding for four new Cooperative Projects with the Cities of Huntington Beach, Newport Beach, Placentia, and Santa Ana, for a total amount not to exceed $1,515,297, as recommended by the Cooperative Projects Grant Committee. I. Consider the following actions relating to the purchase of certain real property interests in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49: (1)Approve a Purchase and Sale Agreement with Horizontal Development LLC regarding an approximate one-third acre parcel, in an unincorporated area that is located near the Banning Ranch Pacific Coast Highway entrance for an amount not to exceed $160,000, in a form approved by General Counsel; (2)Authorize the General Manager to execute all Deeds and other evidences of title to the parcels of property, subject to the Purchase and Sale Agreement; (3) Authorize the General Manager to execute any and all other instruments related to the transaction with Caltrans for an amount not to exceed $40,000, in a form approved by General Counsel; (4)Approve an agreement with the City of Newport Beach to quitclaim the Bitter Point Pump Station property In connection with Replacement of Bitter Point Pump Station, Contract No. 5-49, for an amount not to exceed $90,000, in a form approved by General Counsel; and, (5)Authorize the General Manager to execute any other agreements necessary to acquire said property for an amount not to exceed $20,000. 05/24/06 Page 5 M. Approve Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Infrastructure &Technology Group, Inc., and CH2M Hill, Inc., authorizing: (1) Establish an amount not to exceed $14,999,656 for year five (Fiscal Year 2006-07)of the five-year contract; and, (2) Increase the total amount of the five-year contract to an amount not to exceed $60,092,039. n. Approve Change Order No. 1 to Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4A,with Mike Bubalo Construction Company, Inc., authorizing a no cost value engineering change proposal clause addition to the contract. Non-Consent Calendar o. Consideration of items deleted from PDC Consent Calendar, if any. 15. FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE FAHR Consent Calendar a. Order draft Finance, Administration and Human Resources Committee Minutes for the meetings held on April 19, 2006, and May 10, 2006, to be filed. b. Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. C. Receive and file the FY 2005.06 Quarterly Financial Management Report for the period ended March 31, 2006. d. Approve extension of the commercial lease with Nautical Enterprises, Inc., dba H & S Yacht Sales from the original expiration date of May 31. 2006, to the extended expiration date of December 31, 2007. e. Adopt Resolution No. OCSD 06-11, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 06-09. f. Approve the Second Amended and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System. g. Receive and file Independent Rate Study dated May 2006, prepared by Bartle Wells Associates. FAHR Non-Consent Calendar h. Consideration of items deleted from FAHR Consent Calendar, if any. 05/24/06 Page 6 16. LEGISLATIVE AFFAIRS COMMITTEE a. Order Legislative Affairs Committee Minutes for the meeting held on May 9, 2006 to be fled. 17. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on April 10, 2006, to be filed. b. Approve Amendment No. 13 to the Professional Services Agreement with Camp Dresser& McKee, Inc., providing for the annual cost-of-living adjustment for 2006 and additional out of scope work items for the Groundwater Replenishment System, Job No. J-36,for an additional amount of$219,970, increasing the total amount not to exceed $34,335,753 to be equally shared with the Orange County Water District. GWRSSC Non-Consent Calendar C. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 18. Approve License for Access Purposes Agreement with SWEPI LP for gathering geotechnical data for the Carbon Canyon Sewer and Pump Station Abandonment, Contract No. 2-24-1, in a form approved by General Counsel, at no cost to the Sanitation District. 19. Approve a Three Party Out-of-Service Area Sewer Service Agreement for the Aera Master Planned Community with Aera Energy and Rowland Water District, in a form approved by General Counsel. 20. (a)Adopt Resolution No. 06-12, Certifying the Initial Study/Negative Declaration for the MacArthur Pump Station Rehabilitation Project, Contract No. 7-49, prepared by CH2MHill; and, (2)Approve the MacArthur Pump Station Rehabilitation Project, Contract No. 7-49. 21. (a)Approve a progress payment to Ameron International, Inc. for$75,169 in accordance with the contract terms for Bushard Trunk Sewer Rehabilitation Pipe Procurement,Job No. 1-2-4P; and, (b)Authorize the General Manager, or his designee, to approve all subsequent invoices submitted by Ameron International, Inc. for payment under Job No. 1-24P. 05/24/06 Page 7 22. Adopt Ordinance No. OCSD-27,An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: a. Open meeting 1. Receive and file written comments, if any 2. Verbal reports of staff 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-27 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vole of Directors present.) 2. Motion to adopt Ordinance No. OCSD-27,An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specked Revenue Areas within the District, and Repealing Ordinance No. OCSD-02 23. Adopt Ordinance No. OCSD-29, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21: a. Open meeting 1. Receive and file written comments, H any 2. Verbal reports of staff 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-29 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) 2. Motion to adopt Ordinance No. OCSD-29,An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21. 05/24/06 Page 8 24. (a) Adopt Ordinance No. OCSD-30A, 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-26: -----AND----- (b) Adopt Ordinance No. OCSD-30B,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-26 1. Open meeting a. Receive and file written comments, if any b Verbal reports of staff C. Directors'questions d. Public comments 2. Close meeting 3. Discussion by Board of Directors 4. Recommended actions: a. Motion to read Ordinance No. OCSD-30A by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) b. Motion to adopt Ordinance No. OCSD-30A, 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-26 (Must be approved by a 213 vote of the entire Board of Directors.) -----OR----- C. Motion to read Ordinance No. OCSD-30B by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) d. Motion to adopt Ordinance No. OCSD-30B, 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-26. (Must be approved by a 213 vote of the entire Board of Directors.) 05/24/06 Page 9 25. a. Adopt Resolution No. OCSD 06-13A, directing the County Tax Collector-Treasurer to include sanitary sewer service charges on the 2006-07 property tax bill. - ----OR----- b. Adopt Resolution No. OCSD 06-13B, directing the County Tax Collector-Treasurer to include sanitary sewer service charges on the 2006-07 property tax bill. 26. Closed Session CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8. 54956.9. 54957 or 54957.6, as noted. Reports relating to(a) purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. a. Convene in closed session, if necessary b. Reconvene in regular session C. Consideration of action, if any, on matters considered in closed session 27. Matters which a Director may wish to place on a future agenda for action and staff report. 28. Other business and communications or supplemental agenda items, if any 29. Future Meeting Date: The next Board of Directors regular meeting is scheduled for June 28, 2006, at 7:00 p.m. 30. Adjournment 05j24j06 Page 10 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 dale 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. Public Comments: Any member of the public may address the Board of Directors on specific agenda items or matters of general interest. 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). If you wish to speak,please complete a Speakers Form(located at the table outside of the Board Room)and give it to the Board Secretary. 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 fmm the Consent Calendar. 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). Meetino Adioumment: 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). 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 soecifv the nature of the disabilitv and the tvoe of accommodation requested. 05/24/06 Page 11 _.....__.................... - -'---'--'-.-.__--....-..-'---- MOTICE 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 I 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. ilntedm General Manager James D. Ruth (714)593-7110 iruthgDocsd.00m 'Board Secretary Penny Kyle (714)593.7130 Avle(docsd.com ':Director/Engineering David Ludwin (714)593-7300 dludwinaomd.com ':.Director/Finance/7reasurer Lorenzo Tyner (714)593-7550 Ityner@ocsd.com ;Director/Human Resources Lisa Tomko (714)593-7145 Itomkoagesd.com ;Director/Information Technology Patrick Miles (714)593-7280 pmiles(d)ocsd.com I Director/Operations& I Maintenance Jim Herberg (714)593-7020 iherbem@ocsd.com MirectodTechnical Services Bob Ghirelli (714)593-7400 mhirelliaDocsd.com 'Director/Regional Assets& Services Nick Amonles (714)593-7210 narhontesAoosd.com iGenerol Counsel Brad Hogin..........__..._.— (714)564-2606.-_brh wss-law.com.._.._..._. i H:Wepragenda\Board Agendasr2006 Board Agendas\052406 ageMa.doc BOARD OF DIRECTORS meeing Date To 9d.of Dir. os/za/os AGENDA REPORT Rem N.Mber I Rem Number Orange County Sanitation District FROM: Penny Kyle, Board Secretary SUBJECT: NOMINATIONS FOR CHAIR OF BOARD OF DIRECTORS GENERAL MANAGER'S RECOMMENDATION Open nominations for Chair of Board of Directors (Election to be held at regular June Board Meeting). SUMMARY As provided in the Board's Rules of Procedures, nominations for the Chair are made at the regular May meeting and remain open until election, which takes place at the June meeting. Nominations and election of the Vice Chair will be conducted at the June regular meeting. For new Directors' information, we have included below an excerpt from the current Rules of Procedures for meetings relative to the election of the Chair and Vice Chair of the Joint Administrative Organization. "G. CHAIRPERSON AND VICE CHAIRPERSON OF THE BOARD. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1 at. The nominations for Chairperson shall be made at the regular Board meeting in May of each year, and the nominees may prepare a statement setting forth their qualifications for the office of Chairperson. The statements shall be mailed to members of the Board of Directors with the agenda and other meeting material for the June regular meeting. The nominations and election for Vice Chairperson shall be made at the regular Board meeting in June of each year and shall be made immediately following the election of the Chairperson. The elected Vice Chairperson will assume office July 1st. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board C'YMxumenls.S.Onps,m"sLLoul SMopeRempcs"ry 1.1—.FIbr1GL.10.]Ekc,l— Rov,s tl WOMB Page 1 meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. Subject to the provisions about serving at the pleasure of a majority of the Directors, the Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson." PRIOR COMMITTEE/BOARD ACTIONS N/A 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 N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS N/A C:Dxummle antl Etl0^BiLLeraLLcul5e0in0slTampyery lnlwnel Fllea101K]9Wem]ElxAbn.tl¢ Rwiaetl. M099 Page 2 9 V Orange County Sanitation District MINUTES BOARD MEETING April 26, 2006 �oJNt SANITgr�oy 9 ¢ ca O --1 �cl�N HE ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 Minutes for Board Meeting Page 2 P' 04/26/06 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on April 26, 2006 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 Charles Antos Paul Yost X Don Bankhead Leland Wilson X Carolyn Cavecche Steve Ambriz X Alberta Christy Mike Garcia X Larry Crandall John Collins X Bill Dalton Mark Rosen X Doug Davert Tony Kawashima X Michael Duvall Jim Winder X Norman Eckenrode Constance Underhill Richard Freschi X Bob Fauteux X Sukhee Kang Steven Choi X Phil Luebben Lydia Sondhi A Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore John Beauman A Joy Neugebauer Vivian Kirkpatrick-Pilger X Ken Parker Catherine Driscoll X Tod Ridgeway Don Webb X David Shawver Brian Donahue X Harry Sidhu Bob Hernandez A Jim Silva Lou Correa X Dave Sullivan Debbie Cook X Mark Waldman Ralph Rodriguez STAFF MEMBERS PRESENT: Jim Ruth, Interim General Manager, Penny Kyle, Board Secretary; Nick Amontes; Bret Colson; Bob Ghirelli; Jim Herberg; Dave Ludwin; Lisa Tomko; Lorenzo Tyner; Lilia Kovac; Jeff Reed; Mary Sue Thompson; Deon Carrico; Paula Zeller; Kelly Christiansen; Jim Buror; Bob Bell; Ryal Wheeler, Juanita Skillman OTHERS PRESENT: Brad Hogin, General Counsel; Barry Newton;Toby Weissert;Arlene Schafer, Liz Ostair; Bryan Neil; Mark Miller; Greg Heiertz; Steve Weisberg a " r Minutes for Board Meeting Page 3 ' 04/26/06 PUBLIC COMMENTS There were no public comments. REPORT OF THE CHAIR Jim Herberg, Director of Operations& Maintenance, was recognized who introduced and congratulated Paula Zeller, Sanitation District employee, for her recent election as president of the California Water Environment Federation. Bob Ghirelli, Director of Technical Services, recognized Mary Sue Thompson and Deon Carrico for 20 years of service to the Sanitation District. Chair Anderson reported he and Vice Chair Ferryman were planning a trip to Washington, DC in May to pursue federal funding for secondary treatment and the relocation of the Santa Ana River Interceptor line. The meeting schedule for the working committees was then reviewed for the month of May. It was noted that the Cooperative Projects Grant Committee would meet on May W at 4:00 p.m., and a benefits workshop for the FAHR Committee would be held on May 18' . REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, highlighted a few of the items included in his status report placed in the Directors' meeting folders, as well as a memo regarding the two proposed rate increase options that would be considered later in the meeting. REPORT OF THE GENERAL COUNSEL General Counsel Brad Hogin reported on a memo included in the Directors' meeting folders regarding pending design-build legislation, and urged the Directors to consider and support both bills. APPROVAL OF MINUTES The Chair ordered that the minutes of the regular meeting held March 22, 2006, be deemed approved as corrected. Director Bob Fauteux abstained. A Minutes for Board Meeting Page 4 t 04/26/06 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 03/15/06 03/31/06 Totals $22,961,505.02 $8,889,005.74 Director Cavecche abstained from discussion and voting on Warrant Nos. 79207, 79555, 79676 and 79859. Director Davert abstained from discussion and voting on Warrant Nos. 79204, 79363 and 79471. Director Shawver abstained. Abstentions were pursuant to California Government Code Section 84308. CONSENT CALENDAR 9. a. MOVED, SECONDED AND DULY CARRIED: (1)Approve Reorganization of Annexation No. OCSD-50- Sullivan Annexation, previously approved April 28, 2005, annexing 1.019 acres to the Orange County Sanitation District in the vicinity of Randall Street and Clark Lane, in an unincorporated area of Orange County; and, (2)Adopt Resolution No. OCSD 06-04, authorizing initiation of proceedings to annex said territory to the Sanitation District(Reorganization of Annexation No. OCSD-50—Sullivan Annexation). b. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petition requesting annexation of 71.24 acres to Orange County Sanitation District in the vicinity of Boise Chica Street and Los Patos Avenue, an unincorporated area in Orange County; and, (2)Adopt Resolution No. OCSD 06-05, making certain findings pursuant to the California Environmental Quality Act and authorizing initiation of proceedings to annex certain territory to OCSD (Proposed Annexation No. OCSD-55— Boise Chica Annexation). C. MOVED, SECONDED AND DULY CARRIED: (1) Receive and file petition from Irvine Ranch Water District requesting annexation of 12,000 acres to the Orange County Sanitation District in the vicinity of Irvine Lake, Santiago Canyon Road, extending east to the Orange County/Riverside County boundary in an unincorporated area of Orange County; (2)Adopt Resolution No. OCSD 06-06, Considering Addendum No. 1 to the 1985 Addendum No. 1 to the Final Environmental Impact Report for the Formation of Sanitation District No. 14; and, (3)Authorize initiation of proceedings to annex certain territory to Orange County Sanitation District(Proposed Annexation No. OCSD-56—Irvine Ranch Water District ID-253 Annexation). 0 Minutes for Board Meeting Page 5 04/26/06 COMMITTEE REPORTS AND RECOMMENDED ACTIONS 11. STEERING COMMITTEE: A verbal report was presented by Chair Anderson re the April 25, 2006 meeting. Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Steering Committee Minutes for the meeting held on March 22, 2006, to be filed. Non-Consent Calendar No items were considered. 12. OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE OMITS Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Operations, Maintenance and Technical Services Committee Minutes for the meeting held on April 5, 2006,to be filed. b. MOVED, SECONDED AND DULY CARRIED: Receive and file the 2005 Ocean Monitoring Annual Report. C. MOVED, SECONDED AND DULY CARRIED: Receive and file the 2005 Biosolids Management Compliance Annual Report. d. MOVED, SECONDED AND DULY CARRIED: (1)Authorize the General Manager to issue a Request for Proposals for Biosolids Management for Energy Production, Specification No. S-2003-1688D, and Biosolids Management with Thermal Drying for the Production of Pellets or Granules, Off-Site, Specification No. S-2003-169A BD; and, (2)Approve Amendment No. 8 to the Agreement for Removal and DisposallReuse of District's Residual Solids with Synagro West, Inc., increasing the minimum tonnage to be tendered from 200 tons to 250 tons per day of Class B biosolids to be composted at the South Kern Industrial Center(SKIC) upon SKIC's commissioning, and increasing the cost from $53.11 to$60.11 per ton for an annual amount not to exceed $6,580,000 plus cost escalators. Non-Consent Calendar No Items were considered. e Minutes for Board Meeting Page 6 e 04/26/06 13. PLANNING, DESIGN AND CONSTRUCTION COMMITTEE Tod Ridgeway, Committee Chair, clarified that the approval at the March 22, 2006 meeting for a 66kV Substation at Plant No. 1, Job No. P1-97 with Southern California Edison also included a 20-year renewable commitment while the substation is in operation. PDC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Planning, Design and Construction Committee Minutes for the regular meeting held on April 6, 2006, to be filed. b. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 1 for Headworks Construction Trailers at Plant No. 2, Job No. P2-66-2, with Dalke& Sons Construction, Inc., authorizing an addition of$13,585 and six calendar days, increasing the total contract amount to$832,085; and, (2)Accept Headworks Construction Trailers at Plant No. 2, Job No. P2-66-2, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement. C. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 1 to Santa Ana River Interceptor, 2005 Emergency Repairs from 10,000 CFS Release, Contract No. 2A1-4B, with Ken Thompson, Inc., authorizing an addition of$91,221 and six calendar days, increasing the total contract amount to $1,440,286; and, (2) Ratify Change Order No. 2 to Santa Ana River Interceptor, 2005 Emergency Repairs from 10,000 CFS Release, Contract No. 2414B, with Ken Thompson, Inc.,for an Adjustment of Engineering Quantities, authorizing a decrease of $9,713, decreasing the total contract amount to$1,430,573. d. MOVED, SECONDED AND DULY CARRIED: (1) Ratify Change Order No. 7 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. 741; and City of Tustin Project Nos. 6106 and 6151, with ARB, Inc., authorizing an addition of$169,962 and 27 calendar days, increasing the total contract amount to $20,394,286; and, (2)Approve a reimbursement to the City of Tustin in the amount of$24,000 for deletion of the final asphalt overlay along Holt Avenue between Irvine Boulevard and Newport Avenue intersection. e. MOVED, SECONDED AND DULY CARRIED: (1)Approve a budget amendment of$2,068,822 for Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, for a total project budget of$29,038,822; • Minutes for Board Meeting Page 7 04/26/06 (2) Ratify Change Order No. 15 to Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, with J.F. Shea Construction, Inc. authorizing an addition of$1,056,372 and 256 calendar days, increasing the total contract amount to $18,717,547; (3) Ratify Change Order No. 16 for an Adjustment of Engineered Quantities authorizing an increase of$18,000, increasing the total contract amount to $18,735.547; and, (4)Accept Area Classification Study Implementation Plan, Plant Nos. 1 and 2, Job No. J-35-2, as complete, authorizing execution of the Notice of Completion and approving the Final Closeout Agreement with J.F. Shea Construction, Inc. Director Davert abstained on Item 13(e)(2) and (4). f. MOVED, SECONDED AND DULY CARRIED: Approve Amendment No. 2 to the Joint Exercise of Powers Agreement for the Development, Operation, and Maintenance of the Groundwater Replenishment System and the Green Acres Project with the Orange County Water District, providing for a revised Change Order Policy, in a form approved by General Counsel. g. MOVED, SECONDED AND DULY CARRIED: (1)Approve specification documents for Tule Ranch Biosolids Water Management Needs, Kings County, Job No. SP-79, on file at the office of the Board Secretary; (2) Receive and file bid tabulation; and, (3) Reject all bids for Tule Ranch Biosolids Water Management Needs, Kings County, Job No. SP-79. Non-Consent Calendar No items were considered. 14. FINANCE, ADMINSTRATION AND HUMAN RESOURCES COMMITTEE FAHR Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Finance, Administration and Human Resources Committee Minutes for the meeting held on April 12, 2006, to be filed. b. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 06-07, amending Resolution No. OCSD 98-33, amending Human Resources Policies and Procedures Manual. C. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 06-08, Adopting the Updated Records Retention Schedule and Records Series Definitions, Authorizing Destruction of Obsolete Records, and Repealing Resolution No. OCSD 05-08. Minutes for Board Meeting Page 8 04/26/06 d. MOVED, SECONDED AND DULY CARRIED: Approve the New Performance Appraisal System for EMT and Managers. e. MOVED, SECONDED AND DULY CARRIED: Adopt Resolution No. OCSD 06-09, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 04-16. FAHR Non-Consent Calendar No items were considered. 15. CIP OVERSIGHT COMMITTEE Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft CIP Oversight Committee Minutes for the meetings held on March 15, 2006, March 29, 2006, and April 5, 2006, as corrected, to be filed. b. Item pulled to Non-Consent Calendar for discussion. Non-Consent Calendar C. Interim General Manager Jim Ruth responded to Directors'questions and provided clarification on the FAHR Committee's direction to provide, K possible, a rate increase of less than 10%. He identified those areas that were subjected to additional reductions allowing two options for rate increases: 14.24% and 9.8%. It was then: MOVED, SECONDED AND DULY CARRIED: (1) Approve reduction of approximately $474 million to the Capital Improvement Program through the year 2020 as presented by staff; (2) Direct staff to include the modified Capital Improvement Program in the Fiscal Year 2006-07 Budget; and, (3) Direct the General Manager to obtain services for an independent review of the Capital Improvement Program. 16. LEGISLATIVE AFFAIRS COMMITTEE Legislative Affairs Committee Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Legislative Affairs Committee Minutes for the meetings held on February 14, 2006 and April 11, 2006 to be filed. Minutes for Board Meeting Page 9 04/26/06 Legislative Affairs Committee Non-Consent Calendar No items were considered. 17. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Steering Committee Minutes for the meeting held on March 13, 2006, to be filed. GWRSSC Non-Consent Calendar No items were considered. NON-CONSENT CALENDAR 18. MOVED, SECONDED AND DULY CARRIED: (1) Ratify proposed reimbursement per the Orange County Sanitation District letter to the City of Newport Beach dated March 31, 2006 authorizing the City to proceed with a contract with Clarke Contracting Corporation for an amount estimated not to exceed $30,000 in connection with the Realignment and Rehabilitation of the Big Canyon Offsite Trunk Sewer, Contract No. 5-62; and, (2)Approve Letter Agreement dated April 26, 2006 with the City of Newport Beach and the Big Canyon Country Club, in a form approved by General Counsel, providing for construction access, easements and transferring of easements, for an amount not to exceed $368,500. 19. MOVED, SECONDED AND DULY CARRIED: Approve Change Order No. 4 to the Purchase Agreement 101320-OB issued to Pro Pipe Professional Pipe Services, Innerline Engineering, and National Plant Services for Sewer Line Video Inspection Services, Specification No. 5-2002-81 BD,for an additional amount of$200,000,for a total amount not to exceed $600,000 for the contract period July 1, 2005 to June 30, 2006, and all remaining contract renewal periods. 20. Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: a. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Read Ordinance No. OCSD-27 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Motion to introduce Ordinance No. OCSD-27, and pass to second reading and public hearing on May 24, 2006. Minutes for Board Meeting Page 10 04/26/06 21. Item removed. 22. Ordinance No. OCSD-29, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21: a. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Motion to read Ordinance No. OCSD-29 by title only and waive reading of said entire ordinance. b. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Motion to introduce Ordinance No. OCSD-29, and pass to second reading and public hearing on May 24, 2006. 23. Staff responded to Directors' questions regarding the risks involved in considering the 9.8% rate increase vs. 14.24%, and reviewed those areas where additional reductions were considered to arrive at the 9.8% option. A motion was made to oppose Item 23(a)(1) and (2), and to approve Item 23(b)(1) and (2). The motion failed for a lack of a second. a. Ordinance No. OCSD-30A,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-26: 1. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Motion to read Ordinance No. OCSD-30A by title only and waive reading of said entire ordinance. 2. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Motion to introduce Ordinance No. OCSD-30, and pass to second reading and public hearing on May 24, 2006. b. Ordinance No. OCSD-3013, 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-26: 1. MOVED, SECONDED AND UNANIMOUSLY CARRIED: Motion to read Ordinance No. OCSD-30B by title only and waive reading of said entire ordinance. 2. MOVED, SECONDED AND DULY CARRIED: Motion to introduce Ordinance No. OCSD-30B, and pass to second reading and public hearing on May 24, 2006. Directors Bankhead, Cavecche, Dalton, Duvall, Shawver and Sidhu opposed. • Minutes for Board Meeting Page 11 04/26/06 24. There was no closed session. 26. a. MOVED, SECONDED AND DULY CARRIED:Authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a form approved by General Counsel. b. Item referred to PDC Committee: Authorize the General Manager to execute an agreement with the Irvine Community Development Company re relocation of SARI Line and Mountain Park Sewer Line, in a form approved by General Counsel ADJOURNMENT: The Chair declared the meeting adjourned at 8:15 p.m. ;Ca "-. Penny M. K§le Secretary to the Boar f Directors of Orange County Sanitation District H:depMgenda\Board Minul UD06 Board Minut"XO42606 minums.doo Claims Paid From 03101/06 to 03I16106 Warrant No. Vendor Amount Description Accounts Payable-Warrenta 79050 Albert Grover&Associates 8 88,000.00 Professional Services-Traffic Impact Analysis 1.24 79051 Lewis&Zimmerman Associates,Inc 36,844.63 Professional Services Pt-102 79052 Malcolm Pimfe.Inc. 141.548.10 Professional Services l-ID 79053 MetLife Life Insurance Company 36,945.95 Group Life,Manager Add1.Life,Short&Long-Term Disability&Optional Term Life Ins. 79054 Occidental Energy Marketing,Inc. 75.552.89 Natural Gas for CenGenlCOGen 79055 Southern California Edison 152,656.19 Pourer 79056 Woodruff Spradlin&Smell 63.233.07 Legal Services MO 7-26-95 79057 ACCU Standard 36.30 Freight Charges 79058 Alrgas Safety,Inc. 14.984.25 Safety Supplies 79059 Augas-West 8.68 Demurrage 79060 American Red Cross 1,560.00 CPR Training&Miscellaneous Supplies 79061 ASMS Conference 1,580.00 Training Registration 79062 American Telephone&Telegraph Corp. 25.67 Telephone Service 79063 Awards&Trophies Company 122.49 Awards&Trophies 79064 Black&Veatch Corporation 2.921,12 Engineering Services J-102 79065 BNSF Raihvay Company 2,121.00 Professional Services 241-04 79066 Boyle Engineering Corporation 9,186.35 Professional Services 1-2.4 79067 Brewr ag Pacific.Inc. 1.062.25 Janitorial Supplies 79068 Bush&Associates,Inc. 3,336.00 Professional Services 8-13.1&6-13-3 79069 Court Trustee 90.89 Wage Garnishment 79070 California Auto Collision 2.468.88 Vehicle Repairs-V414 79071 Coast Plumbing 1.145.00 Plumbing Services 79072 Columbia Analytical Services,Inc. 270.OD Analysis of Wastewater,Industrial Wastewater&Biosolids 79073 Cemumers Pipe&Supply Co. 988.87 Plumbing Pads&Supplies 79074 Cortech Engineering 31.75 Mechanical Paris&Supplies 79075 County of Orange 150.00 Wage Garnishment 79076 CWEA 2006 Annual Conference 650.OD Training&Meeting Registration-Div.420(Collection facilities O&M) 79077 Cyberlek Training Centers 495.00 Training Registration 79078 Dal Mar Analytical 320.0D Analysis of Biosolids 79079 Deparknent of Child Support Services 300.00 Wage Garnishment 79080 Detection ImWmence Corporation 4,049.19 Instrument Pads,Supplies&Repairs 79081 DGA Consultants,Inc. 4,350.00 Professional Services-CCTV Data Evaluation&Supporl 79082 OHL Express USA,Inc. 22,72 Freight Services 79083 Ecology Control Industries 4,954.94 Hazardous Waste Disposal 79084 Employee Benefits Specialists,Inc. 10,489.20 Reimbursed Prepaid Employee Medical&Dependent Care 79085 Court Order 445.00 Wage Garnishment 79086 ESRI,Inc. 9000D Training Registration 79067 FEDEX Corporation 54.51 Freight Services 79088 Franchise Tax Board 50.00 Wage Garnishment 79089 Fresco Profiles 1,005.50 Human Resources Background Checks 79090 Pryor Seminars/Career Track 179.00 Training Registration 79091 Gates Fiberglass Installers 1.259.88 Installation of Flanged Access Do" 79092 Geomaldx Consultants,Inc. 1.635.00 Soils,Concrete&Other Materials Testing 79093 Granger,Inc 168.99 Mechanical Paris&Supplies 79094 Graybar Electric Company 3,410.76 Server Software License&Meier 79095 Harold Primrose Ice 80.00 Ice For Samples 79095 Home Cepot 585.22 Misc.Repair&Maintenance Material H:WelaftrNUCELdvx22MPSH4 MINms PW Repmrb Mlxms PNp Reped-O I1 EXHIBITA a,V21M Page 1 of 12 4n"Ned Claim.Paid From 03/01/06 to 03116105 Warrant No. Vendor Amount Description 79097 Hub Auto Supply 42.81 Vehicle Pans&Supplies 79098 City of Huntington Beach 12,107.26 Water Use 79099 Industrial Metal Supply 118.95 Metal 79100 Interval Revenue Service 125.00 Wage Gamichment 79101 Interstate Batteries of Cal Coast 1,270.37 Batteries for Vehicles&Cans 79102 Intl.Union of Oper.Eng.AFL CIO Local 501 4,529.89 Dues Deduction 79103 horned,Pans&Service 182.64 Electrical Parts&Supplies 79104 Irvine Ranch Water District 41.61 Water Use 79105 Jamison Engineering Contractors,Inc. 1.116.61 Professional Services FE0543 79106 Labware,Inc. 1,650.00 Training Registration 79107 Court Order 150.00 Wage Garnishment 79108 Luminary Series 3.486.00 Training Registration 79109 Mandic Motors 475.00 Towing Services 79110 Mission Uniform Service 316.72 Uniform Rentals 79111 Moody's Investors Service 5,000.00 COP Rafing Maintenance Fees-Series 1992 Refunding COPs 79112 Moreland&Associates 790.00 CIP Auditing Services 79113 Court Older 225.00 Wage Garnishment 79114 National Bond&Trost 2.599.52 U.S.Savings Bonds Paymll Deductions 79115 New Horizons,C.L.C.of Santa Ana 1,200.00 Training Registration 79116 City of Newport Beach 161.35 Water Use 79117 OCEA 59524 Dues Deduction 79118 Orange County Sheriff 665.13 Wage Garnishment 79119 Oxygen Service Company 11823 Specialty Gases 79120 Pacific Mechanical Supply 59324 Plumbing Supplies 79121 Peace Officers Council of CA 1,575.00 Dues Deduction,Supervisors&Professionals 79122 Pictomeby International Corp. 20,000.00 Image Library Software License/Training 79123 Polydyne,Inc. 20,301.82 Callonk Polymer MO 3.1142 79124 Prime California Chapter 145.00 Training Registration 79125 Primary Source Office Furnishings,Inc. 5.000.68 Office Furniture&Misc.Equipment 79125 Raney Industries 1,380.00 Contract Service-Fiber Press Equipment Modification 79127 SBC 1.306.66 Telephone Services 79128 SBC Long Distance 1,561.59 Long Distance Telephone Services 79129 SBCIMCI 2.714.85 Telephone Services 79130 South Coast Environmental Co. 17.465.57 Air Quality Monitoring 79131 Schwing America,Inc. 6,535.23 Mechanical Pads&Supplies 79132 Science Applications International 16.819.90 Ocean Monitoring MID 6.8-94 79133 Shuraluck Sales&Engineering 229.34 Mechanical Parts&Supplies 79134 Court Order 721.50 Wage Garnishment 79135 Summit Steel 1.159.09 Metal 79136 Team Pacific Fire Protection 1,900.00 OdlyJAnnual Fire Sprinkler Inspection,Mainl.&Can.at Pit.1&Pit.2 79137 Thompson Industrial Supply,Inc. 1,250.86 Mechanical Pans&Supplies 79138 TMabile 110.63 Wireless Air Time 79139 US Filter Corp. 120.25 Service Agreement-Of Water Systems at Plants 1 &2 79140 Urged Parcel Service 85.00 Parcel Services 79141 United Way 195.00 Employee Contributions 79142 USFiller Weslates Carbon 1,254.00 Repair&Maintenance Services-Carbon Filler 79143 Vnizon California 80.11 Telephone Services 79144 Wellachs,Inc. 630.00 Installation of Carpel at Plant 2 HMeoffv y.CELd sU20 RPSuAREICINms Peld RepuTll6-0TLWme PeW Reeml-0MliL EXHIBIT A nMloac Page 2 of 12 unrswe Claims Paid From 03/01006 to 03115106 Warrant No. Vendor Amount Description 79145 Court Order 597.60 Wage Garnishment 79146 Wayne W.Aegerter 91.31 Me lingTralning Expense Reimbursement 79147 Madan M.Ater 551.95 Meeling/Trammg Expense Reimbursement 79148 Kenneth W.Alplon,Jr. 281.68 MeetirgRraimng Expanse Reimbursement 79149 C.Eddie Baker 604.71 Meefing/fraining Expense Reimbursement 79150 Karen I.Baroldi 132.00 MeetingRrainilg Expense Reimbursement 79151 Deirdre E.Bingman 785.01 MeetingTmining Expense Reimbursement 79152 Pongsakdi Cady 153.00 MeelingTrdiring Expense Reimbursement 79153 Arnold G.Chavez 24.23 Meetintirtreining Expense Reimbursement 79154 James E.Colston 558.90 Meeling/Training Expense Reimbursement 79155 Robert E.Fites 56.00 MeetingTreining Expense Reimbursement 79156 Tom E.Gavorski 450.00 MeetirgTr fining Expense Reimbursement 79157 Law Hsiao 581.39 MeetilgTraining Expense Reimbursement 79168 Andrei loan 721.97 Meeting/Tmining Expense Reimbursement 79159 Jessica Jones 14.15 Meefing/Training Expense Reimbursement 79160 Patricia L.Jpnk 40.41 Meeting/Training Expense Reimbursement 79161 Vladimir A.Kogan 303.59 MeetilgTnaining Expense Reimbursement 79162 Vinerd S.Lockyer 440.00 Meeting/Training Expense Reimbursement 79163 Julie A.Matsumoto 462.42 MeetirgTmining Expense Reimbursement 79164 Sharon Nelius W.73 MeetingTraining Expense Reimbursement 79165 Balachandra P.Rao 80.00 MeetingrTrelning Expense Reimbursement 79166 Ellen Ray 865.75 MeetingTraming Expense Reimbursement M167 Janet K.Roberts 36.00 Meeting/Training Expense Reimbursement 79168 George L.Robertson 16.00 MeefingTreining Expense Reimbursement 79169 James W.Silva 543.38 MeetingTraining Expense Reimbursement 79170 Chns A.Stadclin 350.00 Meetintiffmining Expense Reimbursement 79171 BARBS 250.00 Training Registration 79172 Mandnck S.Taylor 528.77 MeetinglTrainilg Expense Reimbursemenl 79173 Je6W.Woodvrad 541.82 MeetmgTTraining Expense Reimbursement 79174 Paula A.Zeller 515.55 MeetirgTTramirg Expense Reimbursement 79175 CWEA 2006 Conference 295.00 Training Registration(California Water Environment Association) 79176 Synagm West,Inc 14.499.70 Residuals Removal MO 3-29.95 79177 United Slates Postal Service 10,000.00 Poslage 79178 US Peroxide,L.L.C. 7,302.40 Odor&Corrosion Control Treatment for Col.Sys.;Hydrogen Peroxide&Ferrous 79179 Basic Chemical Solutions,L.L.C. 38,623.32 Sodium BisulBte&Sodium Hydroxide 79180 Black&Veatch Corporation 34,700A7 Engineering Services P7-76 79181 Boyle Engineering Corporation 69.682.58 Professional Services 1-24 n192 Voided Check - - 79183 Carollo Engineers 102.776.78 Professional Services P2.66 791M Earth Tech,Inc. 62,956.86 Professional Services P1-100 79185 GHD,L.L.C. 89,261.00 Professional Services-Asset Management Program 79186 IPMC do Parsons 1,002.412.00 Engineering Services-Integrated PmgraMProject Management,Temporary Staging, 79187 Kemiron Companies,Inc. 105211.68 Ferric Chlonde 79188 Lee&Re,Inc 58240.46 Professional Services 549,5-51,5-52,P247-03&FE05 6 79189 Malcolm Pimie,Ina 628,459.12 Professional Services P2-00&J-79 79190 NALCO Company 31,652.90 Anionic Polymer 79191 Niny.&Moore Corporate Accounting 33,717.25 Professional Services-P137,PI-82&P2a66-02 79192 Orange County Water District 71.103.33 Joint GWRS Projed J36 H NapnamrExCEL.EIa17a7AP RE�Pad Repnrai Pxd Repmn-0}15U6 e EXHIBITA pe 3o112 o.r. 9 41111M5 Claims Paid From 03101/06 to 03/15106 Warrant No. Vendor Amount Description 79193 PFE International,Inc. 43,004.78 Fctder4nseder&Equipment Maintenance Agreement 79194 PloneerAmericas,Inc. 266,856.51 Sodium Hypochlorite 79195 Southern California Edison 99,056.35 Power 79196 Southern California Edison 55,390.49 Power 79197 Tule RancMMagan Fame 208,549.06 Residuals Removal MO 3-29-95 79198 US Metm Group,Inc. 29.822.50 Janitorial&Floor Maintenance at Plante 1&2 79199 US Peroxide,L.L.C. 210,672.35 Hydrogen Peroxide&Ferrous Chloride 79200 Waste Markets Corp. 35.673.91 Maint.Agree.-Grit&Screenings Removal&Digester Mall Removal 79201 Weston Solutions,Inc. 44,103.00 Outside Laboratory Services-Care Ocean Monitoring Program 79202 Dalke&Sons Constructions.Inc. 96,652.42 Construction J-88 79203 Denboer Engineering&Construction 308,250.00 Construction P2-6i 79204 J F Shea Construction,Inc. 1,200,689.26 Construe lon J-77&P2A6 79205 J R File=Construc9on 2,382,235.50 Construction Pt-76&P7-52 7920E Margate Construction,Inc. 592.969.00 Construction PI-37 79207 Marrow Meadows Corp. 27,924.00 Construction P247-3 79208 Shasta ElecMc,L.P. 76,372.00 Construction SP44 79209 LA Chemical $74.86 Bleach 79210 A W Chesterton 2.318.68 Mechanical Pads&Supplies 79211 Abatix Environmental Corp. 1,115,13 Hardware 79212 Able Scale Repair 1.493.00 Loading Stales Quarterly Inspection&Codification for Pits.1&2 79213 Absolute Standards,Inc. 90.00 Lab Pares&Supplies 7014 Accounting Options,Inc. 5.485.38 Temporary Employment Services 79215 AcauSlandard 276.81 Lab Paris&Supplies 79216 Agilent Technologies,Inc. 2,079.41 Lab Parts&Supplies 79217 Angst Safely,Inc. 5.883.64 Safety Supplies 79218 AKM Consulting Engineers 8,001.52 Professional Service$741 79219 Anneal,Inc.cJo Inlerservice 1,777.92 Installation of Office Work Stations&Furniture 79220 Amenced Air Filter,Inc. 206.88 Air Fitters 79221 American Airlines 3,964.24 Travel Services 79222 American Concrete Indiana, 316.72 Publication 79223 American Fidelity Assurance Company 344.40 Employee Voluntary Cancer Insurance 79224 Amlech Elevator Services 1.400.00 Monthly Elevator Maintenance at Pits, 1&2 79225 Analysis,Inc. 2.463.63 Oil Test Kit&Analyses 79226 Ancen Marine 396.00 Training Registration 79227 Anixter Inc. 1,714AS Computer Hardware/5ollware 79228 Appleone Employment Service 11.549.55 Temporary Employment Services 79229 Applied Industrial Technology 577.90 Mechanical Pads&Supplies 79230 Arizona Instrument 1.002.01 Instrument Repairs&Calibration Service 79231 American Telephone&Telegraph Corp. 230.35 Telephone Service 79232 Awards&Trophies Company 87.45 Awards&Trophies 79233 Baker Tanks 560.00 Tank Rentals 79234 Battery Specialties 100.85 Batteries 79235 BEC-Building Electronic Controls,Inc 1,50750 Fire Alarm System Maintenance,Repair&Quarterly lnspectian 79236 Ben Meadows Company,Inc. 311.15 Lab Pads&Supplies 79237 Blackburn Mfg.Co. 44.73 Marking Wands 79238 Borden Decal Company 367.62 Contractor Parking Permit Hang Tags 79239 Somemann Pumps Ina 6.614.11 Pump Pads&Supplies 79240 Bush&Associates,Inc. 20,105.00 Professional Services 741&736 H WopianexCEL.naQ20WPSHPRE%mims Paid RepmM6 Mrinnn Paid Repad-Wl5Ua EXHISIXA •. nnclanc Page 4 of 12 V1112M Claims Paid From 03M IMS W 03116/06 Warrant No. Vander Amount Description 79241 California Municipal Treasurers Assoc. 120.00 Membership 79242 California Recreation Company 5,155.82 Boat Slip Rental Fees for Ocean Monitoring Vessel Nensea 79243 Callan Associates,Inc. 3.759.50 Inventoried Advisor 79244 Callrol,Inc. 282.56 Compiler Hardware/Software 79245 Charles King Company,Inc. 4,776.82 Construction-Emergency Sewer Pipe Repairs 79246 Charles P.Crowley Co. 4.202.25 Mechanical Parts&Supplies 79247 Cingular Wireless AidMe 393.93 Wireless Services 79248 City of Buena Park 19.443.44 Cooperative Projects 79249 Coast Fire Equipment 47.21 Annual Fire Extinguisher Inspection&Servicing at Pat.1&2 and Pump Stations 79260 Commercial Transportation Services 520.90 Training Registration 79251 Communications Performance Group,Inc. 4.750.00 Professional Services-Assessment of Integrated Emergency Response Plan 79252 Compressor Components of California 4,328.00 Repair&Mainlenance Services-LSVS Pilot fuel Check Valves 79253 Computer Protection Technology,Inc. 9.862.50 Computer Batteries Maintenance Agreement 79254 Consolidated Electrical Distributors,Inc. 2,326.56 Electrical Pads&Supplies 79255 Consumers Pipe&Supply Co. 3,856.23 Plumbing Pads&Supplies 79266 Controlled Motion Solutions 178.87 Mechanical Pads&Supplies 79257 Corporals Express 17,862.74 Office Supplies 79255 Corporate linage Maintenance,Inc 168.00 Custodial Services Spec.No.91 79259 CORRPRO Companies,Inc. 450.00 Professional Services-Canosion Control Bids.,Speca,Drawings&Data Research 79260 Counterpart Enterprises.Inc. 4,141.13 Mechanical Pads&Supplies 79261 County of Orange Auditor Controller 70.00 Encroachment Permit 1.10 79252 County of Orange Auditor Controller 420.00 Encroachment Permit 741 79263 County Wholesale Electric Co. 668.55 Electrical Parts&Supplied 79264 CPEIA 16.548.90 Excess Workers Compensation Insurance(CA Public Emily Insurance Authority) 79265 CR&R.Inc. 1,575.00 Container Rentals 79266 CRG Marine Laboratories,Inc. 5,925.00 Outside Lab Services 79257 Culligan of Orange County 1.25 Maint.Agreement-Can Gen Water SoBener System 79268 CWEA Membership 300.00 Membership(Calif.Water Environment Assoc.) 79269 DAngelo Co.,Inc. 1,818.25 Mechanical Pads&Supplies 79270 Dezudk Water Controls 2,638.74 Mechanical Pane&Supplies 79271 Doug Harwood Supply 79.50 Repair&Maintenance Services-Admin.Lobby Bid Dale Stamp Clock 79272 DuWs Root Control,Inc. 13,182.69 Broader Root Control Service 79273 Dunn Edwards Corporation 1,234.05 Paint Supplies 79274 Edinger Medical Group,Inc. 1,215.00 Medical Screenings 79276 Enchanter,Inc. 3,150.00 Ocean Monitoring It Oudall Inspection&Maintenance 79276 Environmental Science Associate(ESA) 3,148.20 Professional Services 5.58 79277 ESRI,Inc. 7,001.00 Training Registration 79278 FEDEX Corporation 172.97 Freight Services 79279 Filledlne Corporation imie Filters 79260 Firs)American Real Estate Solutions 324.00 On-line Orange County Property Information 79281 Fisher Scientific Company,L.L.C. 2.694.96 Lab Parts&Supplies 79282 Flo Systems.Inc. 3,303.32 Pump Pads&Supplies 79283 Flomax Products,Inc. 695.05 Mechanical Parts&Supplies 79284 Forestry Suppliers 109.91 Lab Parts&Supplies 79255 Forked Engineering&Surveying,Inc. 1,767.15 Surveying Services Various Location.-5.51 79286 Fountain Valley Paints,Inc. 12.2.19 Paint Supplies 79287 Franklin Covey 43.21 Office Supplies 79288 Darren Callahan Company 2,333.87 Chemicals H Wepasn1E%CELcaUcoaP5HSREChime Paid Repduad-O Manna Pam Report.sun sus EXHIBITA fi'Wnc Page 5o112 411112M Claims Paid From 00101106 to 03/15106 Warrant No. Vandor Amount Description 79289 Gemardis,Inc. 8,195.90 Spark Plugs-LSVB Engine 79290 Golden Slate Water Company 99.24 Water Use 79291 Goldenwest Window Service 1,160.00 Maintenance Services-Clean Roofs of all Leaves&Debris 79292 Government Finance Officers Association 470.00 Membership 79293 Governor Control Systems,Inc. 2,925.00 Training Registration 79294 Grainger,Inc. 2,444.62 Mechanical Pads,Supplies.Software&Tools 79295 Grading Pacific lno. 138.30 Hardware 79296 Grayber Electric Company 206.98 Electrical Parts&Supplies 79297 Hach do Ponlon Industries 23,045.59 Lab Parts&Supplies 79298 Harringlon Industrial Plastics,Inc. 1,928.05 Mechanical Pans&Supplies 79299 Heat Technology Products 2,909.25 Mechanical Pads&Supplies 7930D Hill Brothers 16,835.16 Chemicals-Odor&Corrosion Control-Newport Tmnklte 79301 Home Depot 938.72 Mim Repair&Maintenance Material 79302 Horizon Technology 227.77 Lab Parts&Supplies 79303 Huntington Beach City School District 237.02 Outreach Program-Roam Rental 1-24 79304 Hydmles 1,828.32 Lube Oil 79305 Industrial Disunbulion Group 4.452.29 Mechanical Paris,Supplies,Locks&Tools 79306 Innovative Net Systems 680.00 Lab Pads&Supplies 79307 Irwensys Systems,Inc. 1,434.52 Immanent Pads&Supplies 793GS J&L Industrial Supply 85.25 Toot 79309 JG Tucker and Son.Inc. 2,747.63 Calibration Gas 79310 Jamison Engineering Contractors,Inc. 1.610.90 Repair&Maintenance Services-La Palma Ave. 79311 Jays Catering 2,226.71 Meeting Expenses 79312 Thermo Weslronics 2,478.25 Instrument Supplies 79313 Jabs Available,Inc. 163.20 Notices&Ads M14 Johnstone Supply 1,366.88 Electrical Pads&Supplies 79315 Norm,Inc. 4,118.40 Temporary Employment Services 79316 Long Beach Imn Works 942.82 Manhole France&Covers 79317 London Education Services 1.356.00 Training Registration 79318 Luccrs Gourmet Foods,Inc. 30.00 Meeting Expense 79319 Mamm International 171.32 Janitorial Supplies 79320 Mandic Molors 85.00 Towing Services 79321 ManpowerProtsslonal 19,777.75 Temporary Employment Services 79322 Material and Contract Services 4,960.00 Temporary Employment Services 79323 McMaster Cart Supply Co. 1,038.93 Mechanical Pads,Supplies&Tools 79324 Medlin Controls Co. 414.38 Instrument Pans&Supplies 79325 Metalcraft,Inc. 389.40 Lab Pads&Supplies 79326 Mid West Associates 1,643.72 Hoses 79327 Midway Mfg.&Machining Co. 4,258.28 Mechanical Parts,Supplies&Repairs 79328 Miller Brooks Environmental,Inc. 683.75 Professional Services-UST Feasibility Study&Corrective Active Plan 79329 Mitchell Instrument Co. 2,688.12 Instrument Pads&Supplies 79330 Motorola 3,817.74 Computer Hardware/Software 79331 NaHabit&Associates,Inc. 340.00 Training Registration 79332 National Fire Protection 135.00 Membership 79333 National Plant Services.Inc. 2,550.0E Vacuum Truck Services 79334 Neal Supply Co. 885.84 Plumbing Supplies 79335 New Hormone,C.L.C.of Sant Ana 15.900.00 Training Registration 79336 The Norm Companies 335.72 Mail Delivery Service H W, M1XCELEIUMAPSMRMIW=Pent Reps "nCINme Palo Repm1-a115ae EXHIBIJA 1.1z'M Page 6 of 12 4116011e Claims Pales From 03101108 to 03H8106 Warrant N. Vendor Amount Description 79337 NORLAB 145.14 Chenucels 79338 North American Crane Bureau,Inc. 1,790.DD Training Registration 79339 OCB Reprographics 1,313.01 Printing Service-MO 126100 79340 Once Depot Business Services Division 2,662.59 Office Supplies 79341 Onesource Distributors,Inc. 5,682.88 Electrical Paris&Supplies 79342 Oracle Corporation 3,486.00 Training Registration 79343 Orange Courier 19]6 Courier Services 79344 Orange Fluid System Technologies Inc. 2.935.93 Plumbing Paris&Supplies 79345 ORCO Construction Supply 201.31 Marking Paint 79345 Oxygen Service Company 6,405.35 Lab Paris&Supplies 79347 Pacific Mecha ical Supply 3,557.20 Plumbing Pads&Supplies 79348 Parkhouse Tne,Inc. 1,842.49 Tees 79349 Parsons Water&Infrastructure,Inc. 14.040.09 Professional Services JJ5-1 79350 Peek Scientific,Inc. 12,375.00 Immanent Paris&Supplies 79351 PL Hawn Company,Inc. 733.05 Ek<driwl Pads&Supplies 79352 Poydyne,Inc. 20,249.77 Cationic Polymer MO 3A 1.92 M353 Ponton Industries,Inc. 3.310.57 Flow Meter 79354 Powerno Products,Inc. 90.60 Pump&Pump Supplies 79355 Praxair Distribution,Inc. 38.19 Demurrage 793SS Pmxeir,Inc. 184.25 Lab Pats&Supplies 79357 Pre-Paid Legal Services,Inc. 574.00 Employee Voluntary Legal Service Insurance Premium 79358 Prudential insurance Company of America 2.490.55 Employee Voluntary Long-Temr Care Insurance 79359 Prudential Overall Supply 3,032.67 Uniforms&Related Articles 79360 PS Tek,L.L.C. 10.148.28 Mechanical Parts&Supplies 79361 RF Partridge&Associates,Inc. 4,129.68 Electrical Pads&Supplies 79362 Rainbow Disposal Co. 2,973.12 Trash Removal 79363 RBF Consulting 17.147.53 Engineering Services 7.38&241414 79354 Refmstar Bankers Seanty Life In. 8,349.88 Voluntary Life Ins.,Cancer Ins.&Supplemental Short-Term Disability Ins. 79365 Restek Corporation 396.68 Lab Parts&Supplies 79366 Retrofit Paris&Components,Inc. 40AB Mechanical Parts&Supplies 79367 R.F.MacDonald Cc 1.645.00 Repair&Maintenance Serviees-Tune-Up of(2)Boilers at Plant 2 79368 RMS Engineering&Design,Inc. 1,635.00 Engineering Services-StrucNml Evaluation of DAF Cover 79369 Royale Cleaners 6.00 Dry Cleaning Services 79370 RPM Electric Motors 1,768.92 Motor&Motor Repel. 79371 Slate of California 150.00 Membership 79372 Stale Board of Equalization 1,511.00 Underground Petroleum Storage Tank Fee 79373 Sakati Xleen 632.77 Parts,Washer Lease,&Service 79374 SAWPA 10,000.00 Installation of(2)Cements 79375 SBC 754.29 Telephone Services 79376 SBC/MCI 51.67 Telephone Services 79377 SCAP 15.00 Meeting Registration-Div.660(Erw.Compliance Services) 79378 SCESA 75.00 Training Registration 79379 SchiBAssoclates 1.810.00 Engineering Services-Soil Sampling Drilling 79380 SdwAng America,Inc. 2,322.71 Pump Supplies 79381 Sce8 Specialty Oases,Inc. 910.49 Mechanical Parts&Supplies 79382 Scone)Voice&Data.Inc. 2,284.80 Telephone System Maintenance 79383 SETAC 140.00 Membership 79384 Sewer Equipment Company of America 392.21 Hoses HWepmnTXCEL EIa122DNPSHARMIsims Paid RepoRD60Mirx,a P"Repwl-Oa,l p EXHIBITA fi�tpk Page 7 of 12 anacos Claims Paid From 0=1106 to 03115106 Warrant No. Vendor Amount Description 79365 Shamrock Supply Co.,Inc. 5.604.69 Mechanical&Elaclrial Pads.Supplies&Tools 79386 Shuraluck Sales&Engineering 3.105.38 Mechanical Pads&Supplies 79387 Sigma Aldrich,Inc. 667.20 Lab Pads&Supplies 79388 Skater,Inc. 31.67 Lab Pads&Supplies 79389 Smith Emery Company 280.00 Soils,Concrete&Other Materials Testing 79390 Smith Pipe&Supply,Inc. 169.78 Landscape Irrigation Supplies 79391 So.Cal Gas Company 2,783.38 Natural Gas 79392 Source Graphics 3.790.65 HP Laser Jet 4250dtn Printer 79393 Southern Counties Lubricant 1.547.43 Oil 79394 Sparklelb 2,095.74 Ddrdring WaledCooler Rentals 79395 Spec Services,Inc. 14,679.86 Engineering Services J-33-1 79396 St.Croix Sensory,Inc. 4.195.00 Lab Pads&Supplies 79397 Steams Bank,NA.(Eflua-CMor) 1,045.39 Hydrochloric Add 79398 Summit Steel 816.14 Metal 79399 Sunset industrial Pads 77.02 Mechanical Pads&Supplies 79400 Super Chem Corporations 519.95 Chemicals 79401 Techno Coalings 2,610.00 Painting Services 79402 TekSysroms 5.334.00 Temporary Employment Services 79403 Teledyne Electronic Tech. 96.17 Instrument Pads 79404 Terminix International 1.209.00 Pest Control 79405 Tetra Tech.Inc. 2,009.83 Professional Services 7.37 79406 Thompson Industrial Supply,Inc. 529.10 Mechanical Parts&Supplies 79407 Tony's Lock&Safe Service&Sales 363.98 Locks&Keys 79408 Townsend Public Affairs 5,000.00 Legislative&Exealive Advocate for Grant Funding 79409 Trade SeMce Corporation 2,324.17 Computer HardwarelSoflware Maintenance Agreement 79410 The Training Clinic 2.600.00 On-Site Training-Communicalion Essentials&Managing Conflict Assertively 79411 Tmmce Incorporated 2.800.00 Repair&Maintenance Services-Roof Leak Repairs at Pit.2 Maintenance Bldg. 79412 Truck&Auto Supply,Inc. 126.19 Automotive Paris&Supplies 79413 US Filurr Corp. 50.00 Service Agreement-01 Water Systems at Plants 1&2 79414 UC Regents 4,978,59 Professional Services-Strategic Process Study Research Project 79415 UC Regents 1,150.00 Training Registration 79416 UCI Irvine 195.00 Training Registration 79417 Ultra Scientific 1.185.77 Lab Pads&Supplies 79418 United Pacific Services,Inc. 11.316.99 Landscape Maintenance at Plants 1&2 and Pump Stations 79419 United Parcel Service 177.01 Parcel Services 79420 US Cost,Inc. 795.01) Training Registration 79421 Vapex,Inc. 1.858.00 Vapex Sample Pump 70422 Varian,Inc. 3.075.0E Lab Pads&Supplies 79423 Village Nureer es 64.22 Landscaping Supplies 79424 Vortex Corp. 173.60 Lab Door Repairs&Maintenance 79425 Vossler&Company 3,873.35 Mechanical Pads&Supplies 79426 VWR Scientific Products 10.287.34 Lab Paris&Supplies 79427 The Wackenhut Corporation 6,687.12 Security Guards 79426 Water 3 Engineering,Inc. 1,062.13 Engineering Services J-67 79429 WalerReuse Association CA Section 175.00 Training Registration 79430 Waxis Sanitary Supply 736.79 Janitorial Supplies 79431 West Life Supply Company,Ina 32.97 Electrical Pads&Supplies 79432 Western Stale.C.mmis 1,209.91 Electrical Pads&Supplies H WepluME%CELLIaMMPS1NRErClaim3 Pas RepolKi"nClaims Pend Repun-0}15.06 EXHIBIJA ., 1,o1210x Page 8 of 12 4111020011 Claims Paid From 0=1I08 to 03/15106 Warrant No. Vendor Amount Description 79433 Weslern Switches&Console,Inc. 7,484.32 Controller 79434 Weslmark Pain!Co. 324.02 Painting Supplies 79435 XEROX Corporation 144.12 Stationary&Office Supplies 79436 Xyon Business Solutions,Inc. 22.920.00 Temporary Employment Services 79437 3E Company 870.00 Prohssional Services-OnSile Hazardous Materials Inventory Assessment 79438 California Bank&Trust 628.00 Construction JS3-1,Retention 79439 Olsson Condrudion,Inc. 749.00 Consbuction P2-82 79440 Orange Community Bank 84.00 Construction P242,Retention 79441 Southern Contracting Company 11,932.00 Construction J-33-IA 79442 Torrey Pines Bank 21,982.80 Construction Pt-78,Retention 79443 Layne T.Bar i 325.00 Meeling/rraining Expense Reimbursement 79444 Antonio Breland 55.00 Meeting7Training Expense Reimbursement 79445 Pinky E.Burke 24.50 MeelingRreming Expense Reimbursement 79446 William D.Cassidy 395.53 Meelingrtminirg Expense Reimbursement 79447 Jerry F.Evangelista 250.00 Me tlingRreinirg Expense Reimbursement 79448 Michael H.Harting 125.00 MeetinglTraining Expense Reimbursement 791 Laurie J.Klinger 62.00 Meeting/Training Expense Reimbursement 79450 Tracey L.Murphy 130.00 Meeting7Training Expense Reimbursement 79451 Fred J.O'Brien 125.00 MeetingRraining Expense Reimbursement 79452 Jagadish C.Cougars 153.00 Meelingi-raining Expense Reimbursement 79453 Merrill F.Seiler 63.00 Meelingrrraining Expense Reimbursement 79454 Gary J.Tuiasosopo-Kemper 336.83 Meeling7Trameng Expense Reimbursement 79455 Charles F.Mader 100.00 Meeling7Trainirg Expense Reimbursement 79456 Pleura Wong 400.30 Meeting/Training Expense Reimbursement 79457 Orange County Sanitation District 11.269.14 Wdrkefs Com0.Rehm. 79458 Orange County Sanitation District 1,249.97 Petty Cash Reini 79459 American Express 30.043.58 Purchasing Card Program,Mist.Supplies&Services 79460 Blue Cross of California 371.902.33 Medical Insurance Premium 79461 Brown&Caldwell 448,117.92 Professional Services P2-90 79462 Delta Dental 58.351.21 Dental Insurance Plan 79463 Kaiser Foundation Health Plan 67,842.40 Medical Insurance Premium 79464 Orange County Water District 7.433.352.63 Joint GWRS Project J-36 79465 Persons Water&Infrastructure,Inc. 34,917.61 Professional Services J45-1 79466 RBF Consulting 160,304.63 Engineering Services 7-47 79467 So Cal Gas Company 44,416.04 Natural Gas 79468 Synagro Technologies,Inc. 148,595.46 Residuals Removal MO 3-29-95 79469 WorMoma Software,Inc. 54,325.00 Professional Services-J-1 04 79470 YalelChase Materials Handling,Inc. 59,387A4 Electric Cede&Paris 79471 J F Shea Construction,Inc. 154,577.40 Construction P2-85 79472 A W Chesterton 2.160.70 Mechanical Pads&Supplies 79473 Airgas Safety,Inc. 2,202.70 Safety Supplies 79474 Airgas-West 7.84 Demurrage 79475 American Society of Civil Engineers 416.00 Membership 79476 Aquatic Bioassay and Consulting Labs,Inc. 785.00 Whole Effluent Toxicity Testirg 79477 Arch Weeless 1,011.14 Paging Service-Airtime,Service&Equipment 79478 ABBE American Society of Safety Engineers 140.00 Membership 79479 Americer,Telephone&Telegraph Corp. 27.67 Telephone Service 79480 Court Trustee 90.89 Wage Gamishmenl HW;pp dn rPn%XCEld22aNP5RFRE 1Cs Paid Repnnpa m 0nCldr Pad Repair-01l 06 Page EXHIBITTAA Claims Paid From 03101106 to 03115/06 Warrant No. Vendor Amount Description 79481 California Soil Products 5,838.21 Residuals Removal MO 3-29-95 79482 CAPPO,Inc. 650.00 Membership 79483 CCS 494.00 Training Registration 79484 City of Fountain Valley 2,163.D4 Water Use 79485 CMAA 170.00 Training&Meeting Registration-Div.760(Construction Mgml.Assoc.of America) 70485 Coast Plumbing 1,375.00 Plumbing Services 79487 Columbia Analytical Services,Inc 915.00 Analysis of Wastewater,Industrial Wastewater&Biosollds 79488 Compressor Components of California 440.00 Repair&Maintenance Services-LSVB Pilot fuel Check Valves 79489 CSI Computational Systems 4,576.50 OnSOe-Vibration Sofware Training 79490 Cooper Cameron Corporation 5,321.08 Engine Supplies 79491 Corporate Express 11,206.41 Office Supplies 79492 County of Orange 150.00 Wage Garnishment 79493 County Of Orange Auditor Controller 35.00 Encroachment Permit 7-76 79484 County Of Orange Auditor Controller 1.350.88 RepaiMnstellalion of Sesa,Handheld&Vehicle Radios 79495 CWEA 2006 Conference 425.00 Membership 79496 CWEA Membership 100.00 Membership(Calif.Water Environment Assoc.) 79487 David's Tree Service 1,175.00 Tree Malnt.Service 79498 Dal Mar Analytical 1,052.00 Analysis of Blosolids 79499 Department of Child Support Services 300.00 Wage Garnishment 79500 Desert Pumps&Pads,Inc. 11,877.31 Pump Pads&Supplies 79501 Ecology Control Industries 5.609,42 Hazardous Waste Disposal 79502 Edinger Medical Group,Inc. 140.00 Medical Screenings 79503 Employee Benefits Specialists,Inc. 11,398.31 Relmbumed Prepaid Employee Medlin&Dependent Care 79504 Employers Group 1,500.00 On-Site Training-Customer Service&Telephone Training 79505 Court Order 445.00 Wage Garnishment 79506 Express Lens Lab 1,362.88 Safety Glasses 79507 FEDEX Corporation 280.11 Freight Services 79508 Forked Engineering&Surveying,Inc. 1,443.30 Surveying Services Various Locations 79509 Franchise Tax Board 50.00 Wage Garnishment 79510 Fry'a Electronics 364.11 Computer Supplles 79511 Gas Control Technologies 3,640.00 Repair&Maintenance Services-Gas Leak Detection on the Interplant Gas Line 79512 Goldenwesl Window Service 1,400.00 Groundskeeping Services 79513 Gyn s Systems 5.671.77 Soflvnre Maintenance&Support-On-Site Training Wizard 79514 Hewtell Packard Company 7,447.81 (6)HP Notebooks 79515 City of Huntington Beech 30.71 Water Use 79518 Industrial Distribution Group 499.16 Mechanical Parts,Supplies&Tools 79517 Internal Revenue Barites 125.00 Wage Garnishment 79518 Internet Sammy Systems.Inc. 2.113.76 Software Maintenance Agreement 79519 Intl.Union of Oper.Eng.AFL CIO Loral 501 4,643.78 Dues Deduction 79620 Iran Mountain 101.25 Storage Fee-Bid Documents P 1.37 79521 Irvdne Ranch Water District 6.33 Water Use 79522 Jamison Engineering Contractors,Inc. 2.417.52 Repair&Maintenance of PIL 2,01 Sandmen 79523 Karcher Insulation,Inc. 3,998.00 Remove&Replace Insulation on 02 Engine Exhaust Boller at Pd.1 79524 Lancaster Laboratories,Inc. 525.00 Lab Analyses 79525 Uebed Cassidy 3.262.53 Professional Service-Human Resources 79526 LINJER 5.536.27 Professional Service-DART MO 9.22-99 79627 Court Order 150.00 Wage Garnishment 79528 Mainline Information Systems 21,349.97 Software Subscription&Support-AS1400 H'Ww1dr E%LELEIo@2n1APSXAlm C4lmf Paid RoyrMa-0TLIeImf PNE Repon-0115L5 EXHIBIT �. 5121 Unp Page 10 of 12 411112M Claims Paid From 03101/06 to 03115/08 Warrant No. Vendor Amount Description 79529 Managed Healm Nelwork 1,052A8 Employees Assistance Program 79530 Mss.Mulual Michel Financial Group 145.41 Executive Disability Plan Premium 79531 McMaster Can Supply Co. 608.13 Repair&Maintenance Materials&Supplies 79532 Midway Mfg.&Machining Co. 2,967.63 Repair&Maintenance Services-Engine Realignment 79533 Coud Order 225.00 Wage Gamishmenl 79534 National Bond&Trust 2,622.60 U.S.Savings Bonds Payroll Deductions 79535 National Plant Services,Inc. 480.00 Vacuum Truck Services 79536 Nev,Hudemis,O.L.C.of Santa Ana 760.00 Training Registre0on 79537 NexlN Communications 1,230.81 Cellular Phones&Air Time 795M OCEA 530.49 Dues Deduction 79539 OHMARTA(EGA Corp. 495.00 Training Registration 79540 OneSource Distributors,Inc. 422A1 Electrical Pads&Supplies 79541 Orange County Sheriff 624.77 Wage Garnishment 79542 Oxygen Service Company 189.05 Specialty Gases 79543 Peace Officers Council of CA 1.539.00 Dues Deduction,Supervisors&Professionals 79544 Plane[Associates 5,393.00 Software Maintenance&Support 79545 Project Management Institute 3.000.00 Meeting&Training Registration-Division 750 79546 Registrar,Air&Waste Management Assoc. 615.00 Meeting Registration-Div.660(Ew.Compliance Services) 79547 BARBS 375.00 Training Registration 79548 SBC 1.593.50 Telephone Services 79549 SSCIMCI 769.37 Telephone Services 79550 SCESA 5D00 Meeting Registration-Div.530(Safety&Health) 79551 ScoO Specialty Gases,Inc. 12025 Cylinder Rentals&Demurrage 79552 Sigma Aldrich,Inc. 191.44 Chemicals 79553 Cant Order 721.50 Wage Garnishment 79554 SouOrem California Edison 7,015.84 Paver 79555 Southern Counties Oil Co. 675.00 UST Diesel Fuel Transfer at Pit.1 79556 St.Croix Sensory,Inc. 1,174.94 Olfactometry Testing Services 79557 Star-Odds 1,640.00 Repair&Maintenance Services-Temperature Sensors 79558 Summit Steel 22922 Metal 79559 Technical Service Group,Inc. 1.381.60 SCADA System VAX Service Agreement 79560 Syslat Software,Inc. 1,200.00 Software Maintenance 79561 The Standard Insurance Company 5,240.46 Executive Disability Plan Premium 79562 Times Community News 200.00 Notices&Ads 79563 T-Mobile 110.75 Wireless Air Time 79664 Truck&Auto Supply,Inc. 42.13 Automotive Supplies 79565 US Filter Corp. 142.88 Service Agreement-DI Water Systems at Plants 1 &2 79566 United Way 195.00 Employee Contributions 79567 University of Wisconsin Madison 1,195.00 Training Registration 79668 Verixan California 814.19 Telephone Services 79569 Vision Service Plan CA 9,907.92 Vision Service Premium 79570 The Wackenhut Corporation 14,048.86 Security Guards 7071 WEF 508.00 Membership-Water Environment Federation 79572 WOO(Water Quality,Inc.) 500.00 Training Registration 79573 Xerox Corporation 14,323.21 Copier Leases&Managed Services 79574 Court Order 597.50 Wage Garnishment 79575 Zimmerman Vachl Maintenance 100.00 Repair&Maintenance Service-Nereus 79576 Layne T.Barokil 262.24 MeelinglTraining Expense Reimbursement H WepnM1E%CELd1a 2MPSHAABCIaim3 Peid RepoRA60TCleime PSU Repml-a}15U9 EXHIBIT 11.10Ac Page 11 of 12 111meS Claims Paid From OL01106 W 03116106 Warrant No. Vendor Amount Description 79577 Thomas M.Stands 231.59 MeelingfTmining Expense Reimbursement 79578 Patrick B.Carnahan 319.26 Meeling/Tminirg Expense Reimbursement 79578 Chris A.Cerwellone 125.00 Meefing/Training Expense Reimbursement 79580 Victoria L French 488.80 Meefingrrmining Expense Reimbursement 79581 Tom E.Gaworski 51.50 Meeling/Training Expense Reimbursement 79582 Michele R.Hetherington 132.00 Meeling/rraining Expense Reimbursement 79583 Chandra R.Johennesion 32.65 MeetingrTrakning Expense Reimbursement 79584 Jessica Jane. 55.00 Meeting/Training Expense Reimbursement 79585 Mark H.Kawamolo 27.74 Meefing/Trainmg Expense Reimbursement 79586 Larry E.Lezprek 48.00 Meeting/Trainkng Expense Reimbursement 79687 Charles G.Lee 324.29 MeetinglTrainirg Expense Reimbursement 7958E Patrick W.McNally 7.00 Meeling/Trainirg Expense Reimbursement 79589 Tracey L.Murphy 53.00 Meeling/Traming Expense Reimbursement 79590 Roy Partin 55.00 Meetingrrmining Expense Reimbursement 79591 Curt V.Shelp 695.88 Meetixg[Training Expense Reimbursement 79592 Matthew P.Smil 943.80 Meeting[Trabling Expense Reimbursement 79593 Phillip J.Sullivan 400.03 Meeting/Training Expense Reimbursement 79594 Mary S.Thompson 24.00 Meeting/Treinirg Expense Reimbursement 79595 Jane H.Train 24.00 MeetingRrain'ug Expense Reimbursement 79596 Paul Ward 95.00 Meeting/Traming Expense Reimbursement 79597 Ken H.Wong 600.39 MeetingRramirg Expense Reimbursement 79598 Paula A.Zeller 16.83 Meeling/iraining Expense Reimbursement 79599 State Board of Equalization 800.00 Annexation Fee 79600 Brown 8 Caldwell 8.114.07 Professional Services CMOMANDR Program Total Accounts Payable•Warrants $ 18.918.991.ST Payroll Disbursements 32781 - 32856 Employ.Paychecks 6 134,562.61 Biweekly Payroll 0310V20U6 32867 - 32873 Employee Paychecks 23,870.27 Reim,Late Time Sheet 8 Retirements Payroll 32874 - 32975 Employee Paychecks 153,886.71 Biweekly Peyrofi 03/15/06 32978 - 32980 Employee Paychecks 910.23 Idea Checks 8 Reim Payroll 122554 -123407 Direct Deposit Statements 1,099,661.65 Biweekly Payroll 03/01/06 123408 -123970 Direct Deposit Statements 1 148,3fi3.51 Biweekly Payroll OL15Nfi Total Payroll Disbursements 2. 1,254.98 Win Trmmfar Paymenta OCSD Payroll Taxes B Contributions 6 1.341.674.19 Biweekly Paymfi 03/01/068 03/16106 JP Morgan Chase Bank 139,584.48 Series 1993 Refunding COPs February Interest Payment Total Who Transfer Payments 1,41,258.67 Total Claims Paid 03101106.03/15108 5 22,961,505.02 H wPmwM XCELEtxQ20APSHME\CWM3 Paw Repo DnClwxns Pew Repon-c}i5Le EXHIBIT �. nNLMc Page 12 of 12 4n1/2048 Claims Paid From 03116106 to OU31106 Warrant No. Venda Amount Description Accoulde Payable-Warrenla 72601 Melinda S.Sargent $ 30.000.00 Final Settlement Agreemenl 19602 Black&Veatch COMOmOn 453.925.09 Engineering Services Pt-102&J-77 79603 Brown&Caldwell 156,828.33 Professional Services P2-91 &P1-37 796U Camp Dresser&Mckee,Inc. 200.955.63 Engineering Service J-71-8 79605 City of Anaheim 00,422.47 Cooperative Projects Reimbursement Program 79606 El Du Pont De Nemours and Company 73.964.00 Painting Maint.Services MO 4.22-98 79607 H&H Engineering Conslmcmen,Inc. 85,728.00 Construction-Asphalt RepasslOver OGSD Force MainlSeel Beach Naval Weapons Ste.&Railroad Tracks 79608 Innedirte Engineering 48.035.50 Video Inspections of Se vedine Segments for Damage,Infi0ration&Illegal Connections 79609 IPMC M Persons 975.963.00 Engineering Services-Integrated ProgramlProject Management.Temporary Staffing,Marl.&Supplies 79610 Knobs Berry Fan Foods 42219.26 Reconciliation User Fee Refund Program 79611 Kemon Companies,Inc. 93550.2T Ferdc Chloride 79612 Keys,/Jenks Consultants.Inc. 106.656.13 Professional Services 749 79613 Malcolm Firms.Ina 794.647.10 Professional Servlces 1-10,1-24.11-26&P2.80 79614 MCLLife LNe Insurance Company 36,694.49 Group Life,Manager Add'I.Life,Shod&Long-Term Disability&Optional Term Life Ins. 79615 Olson Cons9uction 118,295.11 Construction P2412 79616 PBS&J 39,92795 Professional Services 3.52 79617 Pioneer Americas,Inc. 236,13556 Sodium Hypochbrile 79618 Paydyce,Inc 27.159.21 Cation¢Poymer MO 3-1142 79619 Rockwell Engineering&Equipment 26,437.26 Chopper Pump 79620 Science Applications International 75.1D3.66 Ocean Monitoring MO 641-N 79621 Southern California Edison 98,927.76 Power 79622 Synagro Technologies,Inc. 286,384,88 Residuals Removal NO 3-29-95 79623 VONed Check - 79624 US Metro Group.Inc. 41,601.50 Janitorial&Fluor Maintenance at Plants 16 2 79625 US Peroxide,L.L.C. 96.114.71 Odor&Corrosion Control Treatment far CON.Sys.;Hydrogen Peroxide&Ferrous Chloride 79626 ARB,Inc. 568,762.20 Construction 7.36 79627 Fleming Environmental,Inc. 109,890.00 Construct..FE05-31 79628 Sammn Engineering.Inc. 127,950.30 Construction 7-21 79629 Union Bank of California 63,195A0 Construction 741&7.36,Retention 7963D Mat Star Environmental,Inc. 30,870.N Construction FE05-33 79631 Alloy Die Casting 4.363.93 Reconciliation User Fee Refund Program 79632 Andres Technical Plating,Inc. 43.83 Reconciliation User Fee Refund Program T8833 Angelica Textile 4,404,03 Reconciliation User Fee Refund Program 79634 Aqua-Con 758.77 Reconciliation User Fee Refund Program 79635 Abslute Standards.Inc 2.030A0 Lab Pads&Supplies 79636 Agifenl Technologies,Inc. 1,209.17 Lab Pads&Supplies 79637 Awco Filler Service 104.74 Nature[Gas Filters 79638 Aigas Safety.1.. 7.585.23 Safety Supplies 79639 AM Consulting Engineers 9,975.00 Professional Services-Pad-Time Dig Alen Technician 79640 American Fibetak,Inc. 6,174.45 Computer Hardware/SOOwere 79641 Amerman Fidelity Assurance Company 344.40 Employee Voluntary Cancer Insurance 79642 American Red Cron 1,595.00 CPR Training&Miscellaneous Supplies 79843 Am morn Traince.Inc. 1,580.00 Tmining Rag6iration 79644 Arouse,Inc. 219.93 Computer Hardware/SoBware 79645 Appk-0ne Employment Service 1,155.60 Temporary Employment Services nM6 Applied Industrial Technology 261.77 Mechanical Paris&Supplies 79647 Aquarium Doctor 116.21 Human Resources Aquarium Service 79648 Archie Ivy,Ina 2,818.00 Repair&Maintenance Services fo Asphal Belween Bulge.A&B 79649 ARGOS Technologies,Inc 92.28 Lab Pads&Supplies 70650 Arizona Instrument 2,034.00 Instrument Repairs&Calibration Service 79651 ARK Technologies 1,803.60 Programming Services 79652 Ashbrook Corporation 2.728.29 Sprayer Assembly-Upper Wash Box 79653 American Telephone&Telegraph Corp. 25.67 Telephone Service HtlepnlRrlE%cELweVa>ynnUOEYJaIme Pe4mpom0Pcss aPea moon-03414e EXHIBIT XMlonc Page 1 of 9 Vllrmoa Claims Paid From 03I1=6 to 0=1106 Warrant No. Vendor Amount Description 70654 Awards&Trophies Company 225.47 Awards&Trophies 79655 AWSI 205.00 Department of Transportation Program Management a Testing 79556 Burrows Ind.IMlnutemen 1.193.18 Reconciliation User Fee Refund Program 79657 Bartle Welk Assocleles 4,229.83 Sewer Rate&Fee Review 79558 Bask Chemical Solutions,L.L.C. 21,727.16 Sodium Blsulfits&Sodium Hydroxide 79659 Battery Specialties 31.79 Surnmes 79860 Bee Buslers 150.00 Pest Control 79661 Bee Man Pest Control,Inc. 150.00 Pest Control 79602 Bennett Bowen Lighthouse 372.38 Repair&Maintenance Services-Blosyslems Monitors 79863 Benshaw Wool 11,257.65 Electrical Pads&Supplies 79664 Boyle Engineering Corporation 789.26 Professional Services p24 79665 Brennlag Pacific,Inc. 233.01 Janitorial Supplies 79666 Bookman&Assocafes,Inc. 005.25 Professional Services-Pavement Management 79667 Cathode Cuslom Shapes,Inc. 24.70 Reconciliation User Fee Refund Program 79668 Cartel Eleclromm,Inc. 4.41 Reconciliation User Fee Refund Program 79669 Come,M.Choudhry 39.90 Meefing/Tralnlrg Expense Reimbursement 79670 Coast Community College 4.617.00 Reconclatlon User Fee Refund Program 79671 Huntington Beech Medical Center 2.109.06 Recenalistlon User Fee Refund Program 79672 Culligan Wafer Conditioning 721.34 Reconciliation User Fee Refund Program 79573 Celgamta Auto Calfision 158.01 Claim SeWement 79874 CALPLY 723.54 Halcyon Fuel 19675 Cdlrol,Inc. 992.59 Mechanical Parts&Supplies 70676 Deadlock Fuel Systems,Inc. 16.440.69 Fuel Card Program-District Vehicles&Monitoring Vessel 79677 Caro0n Engineers 909.71 Professional Services-OCSD Entertainment Rate Class Evaluation 79078 CASA 14,174.00 Membership(Calif.Association of Sanitation Agendas) 79679 Cingular Wireless 5.516.29 Wrefess Services 79580 Coast Fire Equipment 877.47 Fire Extinguishers 70881 Columbia Analytical Services,Inc. 1.170.00 Analysis of Wastewater,Industrial Wastewater&BIos0llds 79582 Consumers Pipe&Supply Co. 294.57 Plumbing Pads&Supplies 79683 Controlled Matron Solu ens 30.57 Electrical Pads&Supplies 79684 Cooper Cameron Corporetlen 504A2 Engine Supplies 79685 Corporate Express 863.87 Ones Supplies 79686 Contract,Engineering 3.884.39 Pump Supplies 798B7 County of Orange Audilor Controller 86.50 Encroachment Permit 7.21 796H County of Orange Auditor Controller 176.00 Maintenance Agreement for Repair/Installation of Base&Handheld Vehicle Radios 79689 County of Venture 18,340.00 Membership-Gadder Grp.Services(3)Advisor Seals&(1)Symposium Ticket 79690 County Wholesale Electric Co. 12.10 Electoral Pads&Supplies 79891 CR&R,Inc. 1.575.00 Container Rentals 79692 CSMFO 100.00 Membership 79683 Culligan of Orange County 44.05 Mount Agreement-Can Gen Water Softener System 79694 CWEA 2006 Conference 415.00 Meeting Registration-DNbion 750 79685 CWEA Membership 500.00 Mendership(Calif.Weler Envimnmenl Assoc.) 79696 Data Solder,Inc. 32.67 Reconciliation User Fee Refund Program 79697 Derm Cosmetic Labs.Inc 2.654.00 Reconciliation User Fee Refund Program 79698 Dlly Drum Co.,Ix. 41,73 Rectu cillaeen User Fee Refund Program 79699 Dr.Smoothie Enterprises 446.22 Reconciliation User Fee Refund Program 79700 Dapper The Co. 2,059.53 Truck Tires 79701 David's Tree Service 12.250.00 Tree Melnt.Service 79702 DDB Engineering.Inc. 2,125.00 Professional Services-Grant Management 79703 Del Mar Analytical 5,830.00 Analysis of Blasolks 79704 Dezur k Water Controls 1,574.44 Mechanical Pads&Supplies 79706 DG k Consultant,Inc. 4,762.50 Professional Services-CCTV Data Evaluation&Support 79706 DHL Express USA,Inc. 22.72 Freight Services 70707 Dtones Corporation 2.236.71 Lab Paris&Supplies H w@pMnlExCEl4aQ2 PSMRMlelMa Puul Rep0fi00 RMIWMS Pud Rspon-030146 EXHIBITB m1fdo Page 2 of 9 N1100011 Claims Paid From 03116g6 W 03131106 Warrant No. Vendor Amount Description 70708 Dr.Harvey Goldstone 900.00 Safety Glasses 79709 Driver Ablaut Insurance Service,Inc. 4.444.00 Crime Insurance 79710 E.Sam Jones Dkbibubra.Inc. 383.59 Electrical Pans It Supplies 79711 Eledrorack Products Co.,Inc. 12.53 Recencilialon User Fee Refund Program 79712 Engravers Ink Company 33.23 Recondlallon User Fee Refund Program 79713 Easy Frame Sign Company,Inc. 876.00 Banners-Milestone Truckling Fiber Event 79714 Edinger Medical Group,Inc. 275.00 Medical Screenings n715 Enchanter.Inc 1.500.00 Omen Monitoring&Dural Inspection If Maintenance 79716 Environmental Resource Association 1.416.58 Lob Paris 8 Supplies 79717 Ewing Irrigation Industrial 212AI Landscape Irrigation Pads If Supplies 79718 Fireline Circuits&Tech. 292.34 Recontllktlon User Fee Refund Program 79719 Frolo un Footle,Inc. 10,487.14 Reconciliation User Fee Refund Program 79720 Fullerton Plating 234.66 Reconciliation User Fee Refund Program 79721 FEDEX Corporation 30.99 Freight Services 79n2 FbstAmerican Real Estate Solutions 394.00 On-Une Orange County Property Information 79723 Fisher Scientific Company,L.L.C. 2,716.19 Lab Paris&Supplies 79724 FLW,Inc. 2,478.81 Plumbing Pads&Supplies 79n5 Forked Engineering It Surveying.Inc. 1,851.30 Surveying Services Various Locations-Sift 79n6 Fountain Valley Rancho Hand Wash 751.00 Vehicle Washing&Waxing Services 79n7 FranlNn Covey 70.99 Off.Supplies 79n8 General Ceramics.L.L.C. 1A31.98 ReconcilWOon User Fee Refund Program 79n9 Goned.h Electroldce 33.03 Reconciliation User Fee Refund Program 79730 Gerald Lumber Company 422.06 LumberiHardware 79731 G T Hall Company 368.09 Flow Switches 79'732 GKN Aerospace Transparomy Systems,Inc. 16.301.W Reconciliation User Fee Refund Program 79733 Goldenweot Wntlow Service 960.D0 Groundskeeping Services n734 Grainger,Inc. 346.13 Electrical Pans&Supplies 79735 Graybar Electric Company 58.36 Electrical Paris&Supplies 79736 Green Parrot 103.44 Meeting Supplies 79737 Guarantee Records Management 361.28 OBsile Records Storage 797:18 Hightower Plating&Manufacturing Co. 9.189.54 Recencillation User Fee Refund Program Tang Hach rho Panton Industries 3.302.76 tab Pans&Supplies 79740 Hagemeyer North America 91.81 Prescription Safety Glasses 79741 Herold Pdmrose Ice 60.00 Ice For Samples 79742 Harringlon Industrial Plastics,Inc. 113.20 Mechanical Paris&Supplies 79743 HOR Engineering,Inc. 1.182.75 Professional Services P2412 797M Henry Company-Sealants Division 409AO Sealer 79745 HI Standard Automotive 985.50 Automotive Pans&Supplies 79746 Hill Brothers 18,697.60 Chemicals-Odor&Corrosion Control-Newport Tmnkline 79747 Hoetger Service,Inc. 240.98 Compressor Pads 70748 Home Depot 363.52 Misc.Repair&Maintenance Material 79749 Hope HBa01JIHAG 543.97 PUMimllan-We0ness Newsletters 7975D Hopkins Technical Products 1.601.12 Mechanical Pads&Supplies 79751 Hub Auto Supply 451.60 Vehicle Pads&Supplies 79752 Ideal An nlizi g 60.0 Reconcillation User Fee Refund Program 79753 Independent Forge Co. 50.68 Reconciliation User Fee Refund Program 79754 IDEXX 1.454.63 tab Pads&Supplies 79755 Industrial Threaded!Products,Inc. 3,245.16 Inventory Fasteners 79756 Inseasys Systems,Inc. 4,691.06 Instrument Pads&Supplies 79757 Ironman Paris&Service 58.59 Sales Tax 79758 Irvine Ranch Water Overshot 42.49 Water Use 79759 ITT Standard do Heat Technology 4.681.72 Mechanical Paris&Supplies 79760 J&L Industrial Supply 381.65 Tools 79761 J.O'Brien Company,Inc. 485AO Retractable Badge Holden NWep11M1XE%LEL 41a1]SMPSXME1LWm Paw ReperM80TClelnu Pu4 Repen-0.}Nd9 EXHIBIT S ae+ok Page 3 of 9 .11ama Claims Paid From 03116106 to=31I06 Windmills. Vendor Amount Description 79762 JeBco Container,Inc. 858.95 Reconciliation User Fee Refund Program 79763 Jays Catering 1.335.70 Meeting Expences 79764 Johnstone Supply 74.50 Efecpicel Parts&Supplies 79765 JP Mogan Chase Bank 11,395100 Administration Fee-1993 Refunding Certificates of Participation 79786 Kenlen Specialties.Inc 183.61 Recormlllatlon User Fee Refund Program 79767 Krylar Cmpomfion 43.25 Reconciliation User Fee Refund Pmgmm 791`63 Kamlier Insulation,Inc. 3,995.00 Repairs&Maintenance-Replacement of Insulation at Plant l.Engine#1.Exhaust Rotor 79769 Kiurce Professional SlafBng 1.53120 Temporary Employment Services 79770 Kirk Key Interlock Company 500." Lock Parts&Supplies 79RI K101afelder,Inc. 685.00 Soils,Concrete&Other Materials Testing 79772 SlNestre Robles 25.88 Reconciliation User Fee Refund Program 79773 Lowell Joint School District 761.00 Reconciliation User Fee Refund Program 79174 Lab Safety Supply.Inc. 821.34 Salary Supplies 79775 Lee&Ro.Inc. 15.509.36 Professional Services 5-51,5.52&FE05-M 79776 LJNJER 5,u013 Professional Serdce-DART M09-22-99 79777 London Bridge Trading Co.,Ltd. 3,052.79 Safety Supplies 79778 Lucci's Gourmet Foods.Inc. 136.60 Meeting Expense 70779 Luminary Series 747.00 Training Registration 79760 Medtronic HeadvaNe Olyist Inc. 107.81 Reconciliation User Fee Refund Program 79781 Micmmetals,Inc.92 300.20 Reconciliation User Fee Refund Program 79782 Millipore Cory. 88.28 Lab Parts&Supplies 79783 Manley'.Boiler,Inc. 650.51 Mechanical Pads If Supplies 79784 Manpower Professional 3.726.00 Tempomry Employment Services 79785 Marketing Group Bus.Solutions.Inc. 599.79 Lab Parts&Supplies 79786 Material and Contract Services 8.928.00 Temporary Employment Services 79787 Mc Junkin Corp. 1.821.68 Plumbing Supplies 79788 McMaster Can Supply Co. 61.47 Mechankal Pads&Supplies 79789 McMurray-Slem 240.00 Repairs&Maintenance on Office Equipment 79790 MM Technologies,Inc. 3.145.14 Instrument Chad Paper M791 Mid Cities Honda 1.075.42 Honda Generator 79792 Midway Mg.&Machining Co. 4,963.0 Pump Pads If Supplies 79793 Mine Safety Appliance Company 62D27 Oxygen Sensors 79784 Mission Uniform Service 303.15 Uniform Rentals 79795 MA SI Americans,Inc. 6.249.88 Professional Services-Modification Requirements on Collection System Model 79796 Neutronk Scarfing&Plating 258.04 Reconciliation User Fee Refund Program 79797 Heal Supply Co. 4114." Plumbing Supplies 79798 New Horizons.C.L.C.of Santa Me 600.00 Training Registration 79799 Nor,&Moore Corporate Accounting 190.00 Professional Services P1-76 79M O C Tanner Recognition Company 1.089.46 Employee Service Awards Program 79801 Ore Beth Sco8 21.57 Reconciliation User Fee Refund Program 79802 OCB Reprographics 7,29826 Printing Service-M01/28N0 79803 Ocean Test Equipment.Inc. 122.91) Mechanical Parts&Supplies&Water Sampling Equipment 79804 Office Depot Business Services Div. 2.826.76 Office Supplies 79805 OMI Industries 367.42 Repair&Maintenance Services-Vapor Phase System 79806 OneSource Continues,Inc. 2.053.74 Electrical Pads&Supplies 79807 Orange County Hose Company 213.15 Hydraulic Hose Supplies&Pads 79808 Oxygen Service Company, 409.95 Lab Pads&Supplies 79809 Payton TechnclWy Corp. 2,807.20 Reconciliation User Fee Refund Program 79810 Ruben L.Perez 119.55 Reconciliation User Fee Refund Pmgram 79811 Precious Metals Phi Co. 37.59 Reconciliation User Fee Refund Program 79812 Precision Pavdenaafing,Inc. 499.30 Reconciliation User Fee Refund Program 79813 Precon,Inc. 31.93 Reconciliation User Fee Refund Pmgmm 79814 Pure Chem Products Co. 77.21 Reconclllallon User Fee Refund Program 79815 Pacific Mechanical Supply 07.18 Plumbing Supplies H:nbpNe4E[CELEbpMJ.P5H41tDLltinf Pan RepwM MWIm P>1 RepM-Olal-06 EKHISrr`B �. wvngls Page 4 of 9 sires i Claims Paid From 03116106 to 03131106 Warrant No. Vendor Amount Deacflytlon 79816 PAPA 130.00 Training Registration 79817 PCG Industries 4,175.00 Pump Repairs 79818 PCS Express.Inc. 122.00 Courier Service 79819 PL Hawn Company.Inc. 338.31 Elechlcel Pads&Supplies 79820 Pre-Peb Legal Servlas,Inc. 559.05 Employee Voluntary Legal Service Insurance Premium 79821 Pressure 4799.00 Printing 79822 Prntech Petroleum Services,Inc. 114.00 SlaOonery&Office Supplies-Thermal Paper 79823 Prudential Overall Supply 1,678.95 Uniforms&Related Adidas 79824 PS TER,L L.C. 1,857.73 Instrument Parts&Supplies 79826 Quartermaster lnwmoreted 42.90 Safely Supplies 70826 Quinn Power System Assoc. 8.65D.00 Maintenance Agreement-Ocean Monitoring Vessel Napless 70827 Ralph's Grocery Company(Bakery) 4,691.16 Reconciliation User Fee Refund Program 79628 Relbslar Life Insurance Company 8,239.02 Voluntary Life,Cancer&Supplamenlal Shart-Term Disability Insurance 79629 Ralnin Instrument,L.L.C. 597.16 Lab Pads B Supplies 79830 Red Devil Equipment Co. 2,42521 Point Mixer&Counter Base 79831 RESTEK Cory. 249.56 Lab Pads&Supplies 79832 Royale Cleaners 6.00 Dry Claiming Services 79833 RSA Sutter Soil Products 1,575.84 Soil Materials 79834 Select Circuits 3.67 Reconciliation User Fee Refund Program 79835 Elaine Sharman 551.00 Reconciliation User Fee Refund Program 79836 South Bey Chrome Sales 1,379.74 Rewnclllation User Fee Refund Program 79837 South Coast Circuits#2 204.57 Reanda.fian User Fee Refund Program 79638 South Coast Water Company 2.631.14 Reconciliation User Fee Refund Program 79839 Star Powder Coating 732.89 Reconciliation User Fee Refund Program 79MO Sun"Delight Beverages Company 24,79C75 Reconciliation User Fee Refund Program 79841 Sehy-Kleen 176.97 Pads,Washer Lease,It Service 79842 Sancon Engineering,Inc. 20,39D.00 Conslruclbn-PVC Pipe Rehabilitation 8 Manhole Rehabilitation Program 79843 SBC 737.20 Telephone Services 7984 SBCMICI 1,461.71 Telephone Services 79845 South Coast Environmental Co. 4,B62AS Air Quality Monitoring 79848 Schwing Ameda,Inc. 73.32 Pump Supplies 79847 SwIrd Voice&Dab,Inc. 2,284.80 Telephone System Maintenance 79848 Seto.Name Plata 1,736.67 Marking Tape 79849 Shamrock Supply Co.,Inc. 86.60 Small Tools 79850 Shureluck Sales&Engineering 258.44 Sealant 79851 Siemens do Jansen Instrument Co. 2,824.12 Instrument Perk&Supplies 79852 Siemens Building Technologies 424.00 SoBwaraMardware Upgrade 79853 Sigma Aldrich,Inc. 299.38 Lab Pads It Supplies 79854 Bidder,Inc. 213.95 Lab Pads&Supplies 79855 SkIIIPath So urc re 1,17.00 Training Registration 79856 Smerdan Supply Company 114.54 Plumbing Pads It Supplies 79857 SoOCholce 3,065.50 (2)DLP Proleclore 70858 Southern California Edison 2,868.43 Power 79859 Southern Co.Oil Co. 14,401.63 Bulk Diesel Fuel 79860 Sparkle8s 1,881.17 Drinking Wider/Cooler Rentals 79661 Spading lnstmments,Inc. 3.016.11 Instrument Parts B Supplies 79862 SummilStael 2,842.21 Metal 79863 Sunset Ford 1,170.10 Vehicle Parts&Service 79864 Sumsel Industrial Pads 1,S77.98 Mechanical Paris it Supplies 79865 Systems Solution Company 1,294.16 Refunds It Maintenance Services-Access CuntmgCCTV Secury System 79866 Tustin Unified School District 8,510.00 Reconciliation User Fee Refund Program 79867 TekSystems 5,838.00 Temporary Employment Services 79868 Terminix International 2,825.00 Pest Central 79B69 Thermo Forma,Inc. 2,969.70 Lab Instruments H RR,%v XCEL d1oo20NP5HARi I cop Poo RopmnGe-011CImmr Palo Repo&-0] 1. page EXHIBIT keg?'W g V1,/MOa Claims Paid From 03/16e6 to 03131MG Warrant No. Vendor Amount Description 79870 Thomas Scientific 748.98 Lab Parts&Supplies 79871 Thompson Industrial Supply Inc. 743.08 Mechanical Paris 8 Supplies 798n Time Warier Communications 51.07 Cable Services 79873 Tony's Lack&Sae Service S Sal" 459.38 Locks&Keys 79874 TPC Training Systems 450.00 Taming Regislothon 79875 Truck S Auto Supply,Inc. 1.175.62 Autionotive Supplies 79876 US Filter Corp. 565.76 Service Agreement-Of Water Systems at Plants 162 79877 U9ra Scientific 761.11 Lab Pans&Supplies 79879 The Unoource Corporation 373.35 Office Supplies 79879 United Formal Service 5.141.51 Panel Services 79880 UOP,L.L.C. 42.88 ReconGlumon User Fee Refund Program 79881 Veece Sasso Fab,Inc.92 26.78 Reconciliation User Fee Refund Program 79982 Verison California 302.13 Telephone Services 79883 Veme's Plumbing 120.00 Service Contract-Testing 6 Can.Back6ow Devkes at Pits.1&2 8 Pump Su. 79884 Village Nurseries 577.88 Landscaping Supplies 7U85 VWR Scientific Products 3701.60 Lab Parts B Supplies 79886 Wastewater Technology Trainers 970.00 Training Registration 79887 WINONICS 329.90 Reconciliation User Fee Refund Program 79808 Wally Machinery and Tool Supply,Inc. 156.88 Mechanical Pans,Supplies B Tools 79889 Waters Coporation 1,030.81 Lab Pans B Supplies 79890 Weather and Wind Instrument Co. 513.27 Waal Sock 79891 West Coast Analytical Service,Inc. 420.00 Outside tab Sersims 79892 West Coast Sw4chgmr,Inc. 711.15 Electrical Pans 8 Supplies 79893 Weston Solutions,Inc. 1,550.00 Outside Laboratory Services-Care Ocean Monitoring Program 79824 Wyesippn Apparatus DBA Breaker Supp. 338.n Eecmml Pans&Supplies 79895 XEROX Corporation 23.103.09 Print Shop Copier Lease,Malnlemarme,Managed Services&(2)Pheser Printer 79896 XYON Business Solutions,Inc. 4,08D.00 Temporary Employment Services 79897 Yale/Chase Materials Handling,Inc. 731.86 Electric Can Paris 79893 DKG Construction 4.905.72 Condonoten FEo445 79899 Olsson Construction 19,264.89 Construction P242 79900 Orange Community Bank 15.294.00 Construction P2-82,Releolion 79901 Kenneth W.Alplon,Jr. 57.23 Meefing/falning Expense Reimbursement 79902 C.Eddie Baker 181.25 Meeling/Training Expense Reimbursement 79903 Patrick F.Bourdy 53.00 Meeting/Traming Expense Reimbursement 70904 David M.Chafe 752.66 MeefingRaining Expense Reimbursement 79905 James E.Colston 292.60 Mee6ng71raining Expense Reimbursement 79906 James M.So 64.0D MeelingRralning Expense Reimbursement 79907 Linde Loaurdo 11.82 MeetingRmining Expense Reimbursement 79908 David A.Ludwin 427.00 Meeling/Tomming Expense Refmbi m xwenl 79809 Daniel R.Miranda 679.95 Meeting/Training Expense Reimbursement 79910 Philip Peterson T0.00 MeefinglTmining Expense Reimbursement 79911 Milton Roche 266.03 Meeting/Training Expense Reimbursement 70912 James D.Ruth 133.69 Meeting/fr uninp Expense Reimbursement 79913 Jufian F.Sabd 27.98 MeetingRralAing Expense Reimbursement 79914 Wendy T.Seveoendl 60.00 Meeting/Tmeing Expense Reimbursement 79915 Donald B.Van Vmodt 328.70 Meeting/Training Expense Reimbursement 79916 Mark S.W11son 58.00 MeetingRrainirg Expense Relmbursement 79917 Jeff W.Woodward 242.70 MeeOngRraining Expanse Reimbursement 79918 Paula A.Zeller 540.12 Meeting/fminirg Expanse Reimbursement 79919 Tula RancWagan Farms 226.215.65 Residuals Removal NO 3-29-95 7992D AKM Consulting Engineers 26.742.03 Professional Services 746 8 741 79921 Black&Veatch Corporation 81,712.30 Professional Services J-79-1 79922 City of Fountain Valley, 32,974.94 Water Use 79923 GHD.L.L.C. 33,874.50 Professional Services-Asset Management Program H.'bpnfnlE%CELEW]eNGSXRRE1LWmc lees R.0034MIsm.Ga'E RepM-N3tte EXHIBIjB - n4S1Mc Page 6 of 9 "'Q. Claims Paid From 03118g8 to OW1106 Warrant No. Vendor Amount Description 79924 Lee&Re,Inc. 37.408.07 Professional Services 549 79925 Southern California Edison 127.308.32 Power 79926 Synagro West,Inc. 179,523.81 Residuals Removal MO 3-29-95 79927 American Water Works Associallon 7890 Books&Publications 79928 ACE Ergonomics 375.00 Professional Services-Ergonomic Workstation Evaluations 79929 American Telephone&Telegraph Corp. 220.65 Telephone Service 79930 BNI Building News 317.14 Books&Publications 79931 California Environmental 30.00 Training Registration 79932 California Recreation Company 2,570.45 Boat Slip Rental Fees for Ocean Monlloring Vessel Nantes 79933 CASA 100A0 General Management Meeting Registration(Calif.Assoc.of Sanitation Agencies) 79934 City of Tustin 510.61 Water Use 79935 Coast Transmission 691.38 Vehicle Repairs&Maintenance Services 79936 Commercial Transportation Services 370.90 Teeming Registration 79937 Consolidated Elect.Distributors.Inc. 265.32 Electrical Pads&Supplies 79938 Consumers Pipe&Supply Co. 978.69 Plumbing Parts&Supplies 79939 CWEA Membership 100.00 Membership(Calif.Water Environment Assoc.) 79940 DR McNally&Associates 3,047.25 Training Registration 79941 Davkrs Tree Service 3.600.00 Tree Melnt,Service 79942 Del Mar Anatybical 592.00 Analysis of 8losolids 79943 Department of Child Support Services 300 W Wage Garnishment 79944 Dudek&Associates,Inc. 9,461.80 Proessimod Services P2-08 79945 Employee BeneBls Specialists,Inc. 10,680.61 Reimbursed Prepaid Employee Medical&Dependent Care 79946 Employers Group 4.375.DD On-She Training-Supervisory Treating 79947 ENS Resources.Inc. 10,000AD Professional Services-Legislative Advocate 79948 ETAC Environmental Training and Comp. 80.00 Training ReBlstretion 70949 FEDEX Corporation 118.64 Freight Services 79950 Fisher Scientific Company.L.L.C. 1,816.82 Lab Pads&Supplies 79951 Franchise Tax Board 50.00 Wage Garnishment 79952 Franklin Covey 78.17 Office Supplies 79953 Hill Brothers 6.720.20 Chemicals-Odor&Corrosion Control-Newport Trunkline 79954 Induslnal Dislabution Group 551A7 Safety Locks 79955 Internal Revenue Service 125.00 Wage Garnishment 79956 Iron Mountain 100A0 Storage Fee-Bid Documents PI-37 79957 ISA 39540 Training Registration 79958 Ktainfelder.Inc. 1.012.50 Sells,Concrete&Other Materials Testing 79959 Michael K.Sund slru e.PhD.P.E. 1,000.00 Professional Services-Oxygen Transfer ElBcienry,Test at Pit.1 Aeration Basins 79000 McMaster Can Supply Co. 2.197.86 Mechanical Paris&Supplies 70961 Mean Consolidated Water District 15.19 Water Use 79962 National Bond&Trust 2,622.60 U.S.Savings Bonds Permit Deductions 79963 National Filter Media Corporation 5,538.39 Filler Press Bells 79964 OCEA M524 Dues Deduction 79965 Voided Check - - 79966 PCS Express,Inc. 122.00 Couner Service 79967 PROPIPE 15.297.52 Sawedine Cleaning-City of Tustin&Unincorporated County Property 79985 RF Partridge&Associates,Inc. 4.129.68 Electrical Pads&Supplies 79969 R L Abbott&Associates 3,000.00 Kam County Blosolads Consulting Services 79970 Republic Engines 377.28 Engine 79971 Rockhurst College Continuing Etlucalen 139.00 Training Regislretion 79972 SBC 1,568,64 Telephone Services 79973 SBC Long Distance 1.269.01 Long Distance Telephone Services 79974 SBC/MCI 1,273.52 Telephone Services 79976 City of Seal Beach Finance Dept. 255.11 Witter Use 79976 Seen Name Plate 157.14 Marking Tape 79977 Shureluck Sales&Engineering 370.31 Mechanical Pads&Supplies HVma0MEXCEL0aV2Mrae RMluxme PoW Rape0050710ann rod Repwl-WJt-00 EXHIBIT prt/FMc Page 7 of 9 1".. Claim.Paid From 03116106In 031311(16 Warrant No. Vendor Amount Description 79078 Spurt Coast Air Quality Mgt. 150.00 Meeting Registration-Division NO 79979 Southern Callbmla Edison 27.89 Powm 7988O Summit Steel 1,098.58 Metal 79981 Terminix International 844.00 Peat Control 70082 The Walking Man,Inc. 1,225.OD Public Notice Printing&Melling Services Vari0us Projects 79983 Thompson Industrial Supply,Inc. 368.D3 Mechanical Pans&Supplies Restocking Fee 79984 US Filter Corp. 80.00 Service Agreement-DI Water Systems at Plants 1&2 79985 United Pascal Service 42.25 Parcel Services 79986 United Way 195.00 Employee Contributions 79987 Venn CalBomla 704.35 Telephone Services 79088 Verve's Plumbing 120.00 Service Contract-Testing&Cad.Backffow Devices at Pits.1&2&Pump St . 79989 The Wackenhut Corporation 14,037.11 Secerlry Guards 79990 Water Environment Federation 149.00 Tralntng Registration 79991 WEF 740.00 Membership-Water Environment Federation 79992 YaWGInase Materials Handling,Inc. 20.598.67 (1)Taylor Dunn ET-150 Electric Truck&Electric Cad Parts 8 Repairs 79993 Robed M.Bee 468.90 MeetingfTmIning Expense Re dbursemenl 79984 Delmore E.Bingman 563.32 Meathq/7raining Expense Reimbursemenl 79985 Jle K.Chong 865.48 MeetlrpRralnln9 Expense Rehnbursemenl 79986 James E.Colston 270.00 Meetingrralning Expense Reimbursement 79997 Jerry F.Evangelista 50.53 Mee11n9/rmining Expense Reimbursement 79998 Douglas Kanis 198.00 Mcetingfrralntrg Expense Reimbursement 70999 Hardat S.Khublall 164.00 Meegngnimining Expense Reimbursement 8000D Jamiann M.Duane 134.22 Mcetingffraining Expense Reimbursement 80001 Doug Rulison 268.W MeelingRrolning Expense Rebmbursement 80002 James D.Ruth 672.35 MeelinglTralning Expense Reimbursement 50003 Edward M.Torres 1,539.08 Meebmiffralning Expense Reimbursement 80004 Yu-LI Teai 520.16 MeelinglTmining Expense Reimbursement 80005 Paul Ward 344.33 Meelingf mining Expense Reimbursement 80006 Emest N.Yeboah 347.35 MeetingfTraining Expense Reimbursement 80007 UBS Financial Services,Inc. 36,653.43 Remarketing Fee-200 A 6 B Series Advanced Refunding COPS WON Modraff Spredlin a Smart 54.611.90 Legal Services MO 7-26.95 80009 Ahgas Safety,Inc. 3.460.27 Safety Supplies 80010 Amedcan Homeland Solutions 1.335.00 On-She Tmining-NIMS Train-the-Tminer for Safety Staff 80011 Jeremy Bonin 551.00 Reconciliation User Fee Refund Program 00012 Becom Mu9tvtsion 64.65 Transcript Fee-KCBS Channel 2 News Re'New Ways to Dispose of PharmaceNicaW 80013 Compressor Compmrents of California 4,924.00 Repairs&Maintenance-LSVB Pilot Fuel Check Valves 00014 Dorm Cosmetic Labs,Inc. 2.654.60 Reconciliation User Fee Refund Program 80015 Earth Resource Foundation 600.00 Sponsorship.2006 River of Life Conference lCrsek Support) 80016 Kenneth B Belinda Gaynor 075.04 User Fee Refund Re Septic Tanks 80017 Harrington Industrial Plastics,Inc. 731.90 Mechanical Pads B Supplies 80018 Ham Oil Co.,Inc. 295.47 Grease 80019 Inflection Point Solutions 40D.00 Mseting Regisiralion-Division 010 80020 Interslele Batlertoa of Cal Coast 1,372.45 Sa0 shun for Vehicles S Cana 80021 KLEE Associates,Inc. 575.OD Books&Publications 80022 David&Linda Lewls 1,595.33 User Fee Refund Re Septic Tanks 80023 Modified Plastics,Inc. 1.570.00 Recenciliagon User Fee Rotund Program 80024 Midway Mfg.6 Machining Co. 662.50 Repair&Maintenance Services-Installation of ImsellerMl-Rate Mixing Pump 80025 Mission Uniform Service WAS Uniform Rentals 80026 Oracle Corp. 728.62 Sofiware Maintenance&Support 80027 Port Supply 15.30 Pads for Ocean Monitoring Vessel Names 80020 Primary Source Office Furnishings,Inc. 82.97 Office Fumllure 60029 Prutlenlial Owed Supply 9.53 Uniforms&Related Adidas M030 Rnmul Systems 3,425.OD Removal&Replacement of Grout&Loos Tiles al Slag.6 Men's Shower 60031 Rose Rooter N00011 325.00 CCTV,Engineering,Inspection B Unclogging Sewer Lateral HWWWmEXCIHdWU20%P8hY0r Meru.Pao Rapma0G4ACIVYm Red Rpen-0-31L0 UHIBIJB mM1mc Page 8 of una�e Clsime Paid From 03116JOS W 03131106 Warrant Ho. Vendor Amount Description 80032 RPM Electric Motors 5359.49 Mawr 80033 Rutan&Tucker Attorneys at Law 0.031.84 Legal Services 80034 Jean&Cathleen Saylor 1,595.33 User Fee Refund Re Septic Tanks 80035 Wiliam&Brands Strin9field 1,163.85 User Fee Refund Re Septic Tanks 80036 SPEX Ceriiprep,Inc. 89.53 Lab Paris&Supplies M037 Thermo Electron Corp. 4,455.47 Lab Pads&Supplies 80038 Beatrice Ward 551.00 Reconciliation User Fee Refund Program 80039 Windiest,Center 836.31 Reconciliation User Fee Refund Program 80040 WEF 144.00 Membership-Water Environment Federation 80041 WPL Publishing 327.00 Books&Publications BOD42 1-800Conference(R) 460.51 Telephone Conference Calls 80043 7272 Chapman,L.L.C. 5,684.68 Reconciliation User Fee Refund Program 80044 Nancy Caruso 6.W MeefinglTralning Expense Reimbursement 80045 MatB Celare 190.00 MeelingTmining Expense Reimbursement 00046 James E.Colston 385.00 Meelingffmining Expense Reimbursement 80047 Tod E.Haynes 125.00 MeelinglTrainln9 Expense Reimbursement 80048 Jeffrey L.Key 48.00 MeelinOTraining Expense Reimbursement 80049 Michael E.McCarthy 13.42 MeelingTmining Expense Reimbursement M050 Raul Ohl. 00.00 MeelinglTralning Expense Reimbursement 80051 Roy J.Reynolds 20.10 Meehnfiffauning Expense Reimbursement 80052 YJ.Shao 125.00 Meelingffmining Expense Reimbursement 80053 Christine M.Thomas 176.00 Meefing/frelning Expense Reimbursement 80054 ARuadum of The Pacific 99.65 Reimbursable Employee Activity Expense 80055 Canes International,Inc. 3,630.00 Legal Services-Construction Management P2A0 80058 Crony of Orange Auditor Controller 390.00 Administrative Fee-Adjustments to Property Tax Bills 80057 Crony of Orange Auditor Controller 1.035.00 Administrative Fee-Adjustments to Property Tax Bills 80058 County of Orange Audibr Controller 435.00 Administrative Fee-Adjustments b Property Tax Bills 80059 Crony,of Orange Auditor Controller 390.00 Administrative Fee-AEjusimenle to Property Tax Bills 80060 Cmmy of Orange Auditor Council 765.00 Adminissetwe Fee-Adjustments to Property Tax Bills 80061 County of Orange Auditor Controller 48D.00 Administrative Fee-Adjustments to Property Tax Bills 80062 Tim Hopkins and Choult City 2.409.60 Employee Computer Loan Program 80063 Orange County Sheriff 35.00 Wage Garnishment Tool Aecounb Payable-grenades $ 6.841,442.1] Payroll Dlabureemenb 32981 - 32984 Employee Paychecks $ 15,239.20 Tenninstiona,Regramenb B Reformat Direct Deposit Payroll 03116/06-03/22106 32985 - 33068 Employee Paychecks 140,806.64 Biweekly Payroll 03129106 33069 - 33084 Employee Paychecks 64,830.19 Terminations 03130/06 123971 - 124525 Direct Deposit Statements 1,154,978.17 Bdevekiy Payroll 0=9106 Total Payroll Disbursements $ 1,3]3,854.20 Wire Transfer Pay..b OCSD Payroll Taxes&Contributions $ 665,709.37 Biweekly Payroll 0=9106 Total Wire Transfer Payments S 665,709.37 Total Claims Paid 133116106-03MVIN $ 8,889,005.74 nWaplllME%CFA.EmttPAPSHAaE1CMM1m Pad RnxrM5LflClnmr Pad RPoon-0131{a EXHIBIT B maim Page 9 of 9 an1130b FAHR COMMITTEE MretingDate TOBd.urDr. 05/24/06 AGENDA REPORT Item Number Rem Number 9 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Financerireasurer 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 COMMITTEEIBOARD ACTIONS N/A PROJECTICONTRACT COST SUMMARY N/A c a Inlem.l F,W.l l(7811.m a MI..P..C.tlo[ n ..a. 01m= Page 1 BUDGETIMPACT ❑ This item has been budgeted. (Line item: R ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CECIA FINDINGS N/A ATTACHMENTS 1. Copies of Claims Paid reports from 04/01/06 to 04/15/06 and 04/16/06 to 04/30/06 CN umems Wd SeMingaWropLwlSellinps\Tempsrsry Inland Filds\)LKMW 8Cklms Paidtla R«I..°: .11MM Page 2 f Claims Paid From 04101106 to 00151 Warrant No. Vendor Amount Description Accounts Payable-Warren 80054 Postmaster S 868.00 Post O16ce Box Rental 80065 LA Chemical 61027 Bleach 80066 A W Chesterton 143.05 Mechanical Parts&Supplies 80067 AOTECH 950.00 Electrical Parts&Supplies BOMB Airgas Safety,Inc. 1,618.00 Safety Supplies 80069 Amlech Elevator Services 1,400.00 Monthly Elevator Maintenance at Pits.1 &2 80070 Analysis,Inc. 108.00 Oil Test Kit&Analyses 80071 Anodyne,Inc. 53.00 Repair&Maintenance Service-Mast on Ocean Monitoring Vessel Nerissa 80072 AppkrQa Empoyment Service 593.73 Temporary Employment Services 80073 Archie Ivy,Inc. 2.410.00 Asphalt Patching at Plant 2 80074 Ashbrook Corporation 6.512.38 Sprayer Assembly-Upper Wash Box&Mechanical Parts&Supplies 80075 AWSI 33.00 Department of Transportation Program Management&Testing 80076 Baker Tanks 1.092.00 Tank Rentals 80077 Bentley Systems,Inc. 4.69728 SoBware Maintenance Agreement Renewal 50078 Cal Glass.Inc. 556,12 Lab Equipment Service 60079 CALPLY 28.85 Ceiling Panels 80080 Camillo Engineers 8.299.39 Professional Services P260 80081 Casual Gourmet 151.17 Meeting Expenses 80082 CEPA Company 1,460.00 Maintenance Service-Semi-Annual Testing&Vedifica0on of Fume Hoods 80083 Charles P.Crowley Co. 3.782.03 Electrical Paris,Supplies&Tools 80084 Cbgular Wireless Airtime 620.63 Wreless Services 80085 CMAA 75.00 Meeting Registration-Division 760 80086 Coats Fire Equipment 598.02 Fire Extinguishers 80087 Cole Partner Instrument Co. 343.32 Tubing 80088 Consumers Pipe&Supply Co. 864.41 Plumbing Parts&Supplies 80089 Cooper Cameron Corporation 125.37 Engine Supplies 80090 Cooper Energy Services 418.64 Valves 80091 Corporate Express 633.04 Office Supplies 60092 Corporate Image Maintenance,Inc 168.00 Custodial Services Spec.No.9899-09 80093 County Wholesale Electric Co. 01.36 Elechical Parts&Supplies 80094 CS-AMSCO 3.175.01 Mechanical Pads&Supplies 80095 Culligan of Orange County 1.25 Main.Agreement-Cen Gen Water Softener System 80096 CWEA Membership 100.00 Membership(Calif.Water Environment Assoc.) 80097 Dawson Company 2,218.63 Pump,Motor&Mechanical Parts 80098 Del Mar Analytical 1.282.00 Analysis of Bfesolids 80099 Desert Pumps&Pads,Inc 145.00 Pump Parts&Supplies 80100 Domnick Hunker,Inc. 366.60 Lab Parts&Supplies 90101 DS Waters 6.418-10 Reconciliation User Fee Refund Program 80102 Dunn Edwards Corporation 64.71 Pand Supplies 80103 Enchanter,Inc. 2.900.00 Ocean Monitoring&Outfall Inspection&Maintenance 80104 EmbonmEnlal Compliance Inspection Serv. 1,040.00 Professional Services-Grease Interceptor Inspections-FOG 80105 Everpure Water Solutions,Inc. 3.511.00 Mechanical Pads&Supplies $0106 Ewing Inigapon Industrial 442.85 Landscape Initiation Parts&Supplies 80107 FEDEX Corporation 232.42 Freight Services 80108 Filtedine Corporation 61.19 Fillers 80109 First American Real Estate Solutions 450.00 On-Line Orange County Property lnformlion 80110 Fisher ScieMfic Company,L.L.C. 4,062.D Lab Pads&Supplies H NepXfinlE%CEL Ne43PAG$HRREWkIma PeM Repan060nLlalms PaIE Repotl-M-15Lfi EXHIBIT A amxtano Page 1 of 8 some Claims Paid From 04101106 to 11,11111151116 WanaM Na Vendor Amount Description 80111 Franklin Covey 216.98 Office Supplies 60112 Frost Company 22.658.61 Repair&Main.Service-Hydraulic Une/Hydmalic Poser Unit/Caks Transfer Pump at Ph.2 80113 Fly's Electronics 204.67 Computer Supplies 80114 Garrett Callahan Company 3.339.18 Chemicals 80115 GT Hell Company 221.59 Mechanical Pam&Supplies $0116 GlemchW11chell,Inc. 10.IU.38 Mechanical Parts&Supplies 80117 Goldenwest Window Service 620.00 Groundskeeping Services 00118 Grainger,Inc. 2,370.58 Electrical Parts&Supplies 80119 Hampton Tedder Technical Services 17.584.00 Professional Services-Electrical Acceptance Testing $0120 Hasco Oil Co.,Inc. 173.31 Grease 80121 Hev&eK Packard Company 8.776.82 Computer HerdmmlSolPwam-H.P.Server 80122 Hi Standard Automotive 211.10 Automotive Pads&Supplies 80123 Hill Brothers 10,818.19 Chemicals-Odor&Corrosion Control-Newport Trinkline 80124 Howard Ridley Company 2.907.38 Repair&Maintenance Services-Digester R Discharge Linea 80125 City of Huntington Beach 13.300.89 Wale,Use 80126 Industrial Disillusion Group 202.65 Mechanical Pads&Supplies 80127 Innedme Engineering 4,717.60 Sexedine Video Inspections&Cleaning in Area 7 80128 Inorganic Ventures,Inc. 152.27 Lab Pads&Supplies $0129 Imrensys Systems,Inc. 1.053.59 Electrical Parts&Supplies 80130 Jamison Engineering Contractors,Inc. 7,987.62 Repairs&Melnt.Services-Replace Electrical Feed Us,at 14th St.Pump Ste, 80131 Jays Catering 1,136.85 Meeting Expenses 80132 Johnstone Supply 368.77 Electrical Pads&Supplies 80133 JPL Compressor Service,Inc. 9.079.60 Gas Compressor Pads&Supplies 80134 Kforce Professional Slanting 3.795.83 Temporary Employment Services 80135 Kings County Tax Collector 11,840.11 ProOaM Texas 80136 Mirxosemi Corp. 10,030.57 Reconciliation User Fee Refund Program 80137 Mandic Motors 115.00 Towing Services 80139 Manpower Professional 3,726.00 Temporary Employment Services 80139 Materiel and Contract Services 4,060.00 Temporary Employment Services 60140 Maximus,Inc. 6,000.00 Professional Services-Update Cast Allocation Plan 60141 Meyer,Brown,Rom&Maw,L.L.P. 14,978.41 Professional Services-Strategic Planning&Advocacy 80142 McMaster Cam Supply Co. 766.81 Mechanical Paris&Supplies 80143 MCR Technologies,Inc. 238AD Mechanical Parts&Supplies 80144 Midway Mfg.&Machining Co. 5,776AB Mechanical Paris,Supplies&Papers 80145 Mine Safety Appliances Co. 1.768.02 Gas Nodded; 80146 Motion Industries,Inc. 476.49 Mechanical Pads&Supplies $0147 MWH Advances,Inc. 24,400.49 Professional Services P2-74 $0148 National Filler Media Corporation 10.653.91 Filler Press Bells 80149 National Fire Promotion Association 135.58 Publication 80150 Natonal Plant Services,Inc. 18,184,12 Vacuum Truck Services 80151 Newark Electronics 191.68 Electrical Pads&Supplies 80152 Nwyo&Moore Corporate Accounting 210.00 Professional Services P1-76 $0153 The Norco Companies 336.72 Mail Delivery Service 80154 Orange County Water District 548.01 Meeting Registration-Division 110 80155 COB Reprographics 876.58 Printing Service-MO 1126/00 80156 Office Depot Business Services Div. 4.171.66 Office Supplies 80157 Omega Industrial Supply,Inc. 1,133.16 Janitorial Supplies 80158 Oneaource Distributors,Inc. 636.85 Electrical Paris&Supplies H 1dep en\EXCEL EbQMNPSHMEU.1rrs Pad Repa,W6UnClemn Pre Repptl-04-15 EKHIBI dnrnwc Page 2 of 8 6011006 14, Claims Paid From W01106 to 04115106 Warrant No. Vendor Amount Description 80159 Orange County Hose Canparry 12.49 Hydraulic Hose Supplies&Pads 80160 Orange Fruit System Technologies,Ix. 1,059.43 Mechanical Pads&Supplies 80161 ORCO ConsluGton Supply 102.56 Marking Paint 80162 Oxygen Service Company 3,817.24 Lab Pads&Supplies 80163 POG Industries 3.300.00 Pump Repairs WIU Peak Technologies 362.66 Lab Pads&Supplies 80165 PedrinElmer Las 14.808.00 Lab Instrument Maintenance Agreement 80166 Pictomeby International Coup. 20.000.00 Image Library Software License/7raining 80167 Pixelpushers,Inc. 7,101.25 Temporary Employment Services 80158 Pneudr Distribution,Inc. 35.00 Demurrage 80169 Primary Source Office Furnishings,Inc 9,382.87 Reconfiguration of Purchasing Div.Central Office Work Slaliom 80170 Printerguy 5,643.76 Primer Maintenance 80171 PROPIPE 8,242.44 Semolina Cleaning-City of Tustin&Unincorporated County Property 80172 Pump Engineering 1,399.40 Pump Pads&Supplies 80173 Quinn Power System Assoc. 2.108.64 Maintenance Agreement-Ocean Monitoring Vessel Nedssa 80174 RSF Consulting 3,833.37 Engineering Services 241&7.38 80175 Rile Camera Centers,Inc. 122.77 Photo Processing&Single-Use Cameras 80176 Rockwell Engineering&Equipment Co. 8,876.25 Pump&Pump Pads&Supplies 80177 RPM Electric Motors 1,590.93 Pump Repairs 80178 Sancon Engineering,Inc. 3,000.00 Construction-Manhole Rehabilitation Program 80179 Rule 222 Filings 150.00 Meeting Registration-Division 660 80180 Schiff Associates 2.606,00 Engineering Services J-106&Time Failure Analysis $0181 SCMving America,Inc. 1.041.37 Pump Supplies 80182 Scientific Refrigeration 712.00 Relocation of Biological Safety Hood to Warehouse 80183 Sea Bird Electronics,Inc. 1.154.00 Lab Instrument Maintenance&Calibration Services 80184 Sigma Aldrich,Inc. 214.21 Lab Paris&Supplies 80185 SKC West,Ina 267.60 Lab Pads&Supplies 80186 Smardan Supply Company 426.22 Valves 80187 Spec Services,Inc. 16,405.12 Engineering Services J-33-1 80188 Summit Steel 1,877.66 Metal 80189 Sunset Ford 414.57 Vehicle Pans&Service 80120 Sunset Industrial Pans 119.66 Mechanical Pans&Supplies WIS1 TCH Associates,Inc 7,777.32 Lab Pads It Supplies 80192 Teduro Coatings 11,800.00 Painting Services-Mach.Shop&PVC Piping at North&South Scrubber Complex 80193 Tenminix International 165.00 Peg Control 80194 Tells Tech,Inc. 15,679AB Professional Services 737 80195 The Wallong Man,Inc. 400.00 Public Wee Printing&Mailing Services-7-21 80196 Thompson Industrial Supply,Inc. 604.54 Medtamcal Paris&Supplies 80197 Time Wrans-Communication 55.82 Cable Services 80198 TMV Systems Engineering,Inc. 6.093.75 Software Maintenance 80199 Todd Painting,Inc. 10,484.00 Painting Services 80200 Townsend Public Affairs 6.000.00 Legislative&Execulive Advocate for Grant Funding 60201 Trade Service Cooperation 2,324.17 Electrical Pads&Supplies 80202 Traffic Control Service.Ina. 170.00 Traffic Safety Equipment Rental 80203 Tran Consulting Engineers 10.387.91 Engineering Services 7.21 80204 TRANSCAT 574.32 Instrument Supplies 80205 Tremce lncorporaled 8,000.00 Repairs&Maintenance Services-Bioassay Trailer Drain&Roof Repairs 80206 Truck&Auto Supply,Inc. 289.72 AutomMive Supplies H:Wep11fin1E%CELdurQ204WSHAREtCl ims Paid Repondese Claims Paid Repo"-0415 EXHIBIT A fiN2�Mc Page 3 of 8 "14006 Claims Paid From 04101/1fi6 to 04l151OS Warrant No. Vendor Amount Description 80207 UC Riverside 7,802.09 Professional Services-Strategic Process Studies 80208 Underground Service Aled of Se.Celli 1,943.10 Membership-Underground Utility Identi0calionMolificaticn Service 80209 The Unisource Corporation 9.101.50 Office Supplies 80210 United Pacific SeMces,Inc. 5,885.00 Landscape Maintenance 8 Roadway Clean-Up 80211 United Parcel Service 267.26 Parcel Services W212 Vapex,Inc. 4.084.00 Instrument Pads B Supplies $0213 Varian,Inc. 5,568.95 Lob Instruments Maintenance Agreement 80214 Verison California 734.13 Telephone Services 80216 Village Nurseries 602.79 Landscaping Supplies 80216 Vortex Corp. 818.10 Gale Repairs-Exit at Engineering Trailers 80217 VWR Scientific Products 2,888.68 Lab Pads 8 Supli 80218 Welly Machinery And Tool Supply,Inc. 82AR Mechanical Pads,Supplies B Tools 80219 Waste Markets 14.308.48 Maint.Agree.-Gnt 8 Screenings Removal S Digester Mall Removal 80220 Water Environment Federollon 69.75 Publication 80221 WeleReuse Association 275.00 Meeting Registration-Division 631 80222 Wetem Corporation 540.00 Meeting Registration-Division 520 80223 WEF 614.00 Membership-Water Environment Federation 80224 Xyon Business Solutions,Inc. 9.600.00 Temporary Employment Services 80225 York International 1,286.53 Repel,B Maintenance Service-Communication Equipment 80226 California Bank 8 Trust 1.909.00 Construction J-33-1,Retention 80227 Fleming Environmental,Inc. 4.254.75 Constructed FE05-29 60228 Morrow Meadows Corp. 6,896.00 Construction P247-3 80229 Orange Community Bank 4,189.00 Construction P2-82,Retention 80230 Steve Anderson 3,039.74 Meeting/Raining Expense Reimbursement 80231 Layne T.Beretta 447.90 Meeting/Training Expense Reimbursement $0232 Shabbir S.Basis 255.81 MeelingRraining Expense Reimbursement 80233 Rebecca A.Brooks 150.00 MeeingRmining Expense Reimbursement 80234 Peter Chaffs 32623 Meeling/Tmining Expense Reimbursement 80235 Yeom Choi 110.00 MeelingRraining Expense Reimbursement 8D236 Kelly J.Christensen 734.60 MeelingfTralnirg Expense Reimbursement 80237 Thomas D.Doddered 123.42 MeelingRraining Expense Reimbursement 80238 James Ferrymen 776.22 Meetingf7raming Expense Reimbursement 80239 Victoria L.Francis 116.14 Mselingffratning Expense Reimbursement 80240 Robed P.GNre01 1,430.69 Meelingf mining Expense Reimbursement 60241 Jeaeics Jones 385.00 Meeling/Training Expense Reimbursement 80242 Ludolph T.Lorimer 1.600.72 MeelingRraining Expense Reimbursement 60243 Efren G.Lucent 1221.48 MeeingRaining Expense Reimbursement 80244 David Manning 613.58 MeelingRraining Expense Reimbursement 80245 Michael D.Masterson 301.30 MeelingRraining Expense Reimbursement 80246 Michael D.Moore 331.00 Meeting/Tmining Expense Reimbursement 80247 Andrew H.Nau 348.61 MeelingRraining Expense Reimbursement 80248 Cud V.Shelp 570.27 MeelingRraining Expense Reimbursement 80249 Chds A.Staoklm 31.00 Meetingftraining Expense Reimbursement $0250 Mahn Talebi 895.69 Meeting/Training Expense Reimbursement 80261 Mork A.Toni 206.80 MeelingRraining Expense Reimbursement 80252 Jane H.Tran 889.02 MeelingRraining Expense Reimbursemenl 80263 Gary J.Tuiasosopodcemper 418.11 Meeting/Training Expense Reimbursement 60254 Simon L.Walson 401.09 MeetinglTraining Expense Reimbursement H WdP1xnWXCE1..EIeU2ONPS1(AR1Fx3ar$Pe!d Repma06OTCInims Paid Repo1-W506 EXHIBIT - nnQlenc Page 4 of 8 5`N2M Claims Paid From 04/01/06 W 04/16106 Warrant No. Vendor Amount Description 80255 Ken H.Wang 45414 Meefing/Tralning Expanse Reimbursement 80256 Employee Activity Commlllea 487.00 Service Award Expanse 80257 SCAGMD 1.450.66 Rule 301 End User Regiskallon of Cerli0ed Equipment 50258 Basic Chemical Botulism.L.L.C. 32,417.81 Sodium Bisulfile 8 Sodium Hydroxide 80259 Brown 8 Caldwell 511.459.41 Professional Services P2-90 80260 City of Santa Ana 75,000.00 Cooperative Projects Reimbursement Program 80261 ESRI,Inc. 25,114.73 So0ware Metal.-Arolnfo,ArcGIS,ArcEtlllor,ArcVlew,ArcSDE,ArcPad 8 ArcIMS 80262 GHO,L.L.C. 82,816.00 Professional Services-Asset Management Program 80263 HDR Engineering,Inc. 74,978,98 Professional Services P1-82 8 Sewer Connection PormigData Development 80264 Kemiron Companies,Inc. 178,400.12 Ferric Chloride 80265 Lewis 8 Zimmerman Associates,Inc. 29,635.84 Engineering Services P2-90 80266 Malmim Plmle,Inc. 240,534.59 Professional Services J49 80367 Mythlm.Inc. 87.547.20 So6ware-Perpetual License for Oracle Data Base-Enterpdse Edition,Maint.8 Supped 80268 Occidental Energy Marketing,Inc. 77.489.10 Natural Gas for CenGen/COGen 80269 Olsson Construction,Inc. 37,516.00 Construction P2-82 80270 Orange County Water Dieldd 58,003.06 GAP Water Use 80271 Pioneer Americas,Inc. 202,302.93 Sodium Hypachlorite 80272 Polydyne,Inc. 68,778.38 Celionic Polymer MO 3.11.92 80273 Southern California Edison 62,143.86 Power 80274 Synagro West,Inc. 268,738.63 Residuals Removal MO 3.29-95 80275 Tule RanchlMagan Farms 220,831.11 Residuals Removal MO 3-29-95 80278 Yale/Chase Materials Handling,Inc. 99,143.81 (19)Electric Cede 60277 Calks 8 Sans Constructions,Inc. 83,416.74 Construction J-88 80278 J F Shea Construction,Inc. 2,479,371.28 Construction J-77 8 P2.66 80279 J R Filanc Construction 1,700,107.20 Construction PI.82 $0280 Klewll Padfic Co. 565,277.40 Consbudlon 5-51 8 5-52 80281 Margate Construction,Inc. 521.187.00 Construction Pt-37 80282 Shasta Electric,L.P. 61.606.00 Construction SP-94 80283 Southern Contracting Company 36,256.00 Construction J-33-1A 80284 Walls Fargo Bank Mac C7300-012 62,808.60 Construction 5-52,Retention 80286 Piers Clark-AINns Water 33,120.00 Anaerobic Baffled Reactor(ABR)Testing 80286 Geomatrix Consultants,Inc, 27,574.64 Sails,Concrete 8 Other Materials Testing 7.36 8 7.41 80287 Inland Empire Utilities Agency 27,525.07 Professional Services-Prado Basin Regional Organics Management Project 8D288 MWH Americas,Inc. 26.649.48 Professlonal Services JA01 80289 Pioneer Americas,Inc. 82,546.13 Sodium Hypochlorhe 80290 So Cal Gas Company 40,065.65 Natural Gas 80291 US Peroxide,L.L.C. 58,448.59 Odor 8 Corrosion Conlrol Treatment for Call.Sys.;Hydrogen Peroxide 8 Ferrous Chloride 80292 Abalix Environmental Corp. 1,115.18 Hardware 80293 American Express 24,634.00 Purchasing Card Program,Mlsc.Supplies 8 Services 80294 Aquatic Bioassay and Consulting Labe,Inc. 1,130.00 Whole Effluent Toxicity Testing 80295 Arch Wireless 1,026.77 Paging Service-Aldime,Service 8 Equipment 80296 American Telephone 8 Telegraph Corp. 29.72 Telephone Service 80297 Awards 8 Trophies Company 18.92 Awards 8 Trophies 80298 Basle Chemical Solutions,L.L.C. 6,246.81 Sodium Blaulfile 8 Sodium Hydroxide 80299 BC Wire Rope 8 Rigging 32.33 Mechanical Pads,Supplies 8 Service 80300 Bell Pipe 8 Supply Co, 34.79 Mechanical Pads 8 Supplies 80301 Black 8 Veatch Comoralion 199.78 Engineering Services J-71-3 80302 Blue Madin Group 368.98 Generator Oil 8 Fuel-Ocean Monitoring Vessel Nerism HltlepllflnlE%CELdle@20KPSHAREICIVIma Peld RepmMSOTCnelma P.Id Rapon ex ISOa EXHIBIT salsa page 5 of 8 Mass Claims Paid From 04/01106 to 04115106 Warrant No. Vendor Amount Description 80303 Bush 8 Associates,Inc. 1,006.00 Professional Services FE05-20 80304 Court Trustee 90.89 Wage Garnishment 80305 CASA 1.200.00 Meeting Registration-Division 110 80306 Casual Gourmet 84.10 Meeting Expenses 80307 CELSOC 178.52 Publication 80308 Clu8hlduslries 2,963.13 Lab Parts B Supplies 80309 Coast Fire Equipment 1,327.48 Fire Extinguishers 80310 Coast Rubber Stamp,Mfg. 328.22 Office Supplies 80311 Columbia Analytical Services,line. 855.00 Analysis of Wastewater,Industrial Wastewater 8 Biosolids 80312 Compressor Components of California 4,480.00 Repairs B Maintenance-LSVB Pilot fuel Check Valves 80313 Conech Engineering 5236.35 Pump Supplies 80314 County of Orange 150.00 Wage Garnishment 80315 County of Orange Auditor Controller 118.50 Encroachment Permit 7-36 W316 County of Orange Auditor Controller 70.D0 Encroachment Permit 741 80317 D.R.McNally 8 Associates 1,016.00 Training Registration 80318 Oavids Tree Service 7,400.01) Tree Mainl.Service $0319 Del Mar Analytical 68.00 Avaysis of Biosolids 80320 Department of Child Support Services 300.00 Wage Garnishment 80321 Diamond Interiors,Inc. 990.00 Installation of Mini Blinds at Purchasing Building 80322 DLT Solutions,Inc. 9,123.41 Map 2006 Nelvvork Licenses 8 Web Support 80323 Ecology Control Industries 2,800.00 Hazardous Waste Disposal 60324 Electra-Band,Inc. 1,578.54 Repair&Maintenance Services-Epoxy Coating 60325 Employee Benefits Specialists.Inc. 10.342.30 Reimbursed Prepaid Employee Medical 8 Dependent Care 80326 ENS Resources.Inc. 10,000.00 Professional Services-Legislative Advocate 80327 Equa-Chlor 3,565.37 Hydrochloric Acid 80328 Equipco Sales 8 Service 5.183.00 Instrument Pads 8 Supplies 80329 Court Order 445.00 Wage Gamishment 80330 FEDEX Corporation 115.75 Freight Services 80331 Ferguson Enterprises,Inc. 347.19 Valves 80332 Forked Engineering 8 Surveying,Inc. 925.65 Surveying Services-P266 80333 Franchise,Tax Board 50.00 Wage Garnishment 80334 FNs Electronics 674.31 Computer Supplies $0335 Ganahl Lumber Company 74.61 Lumber/Hard". 80336 Garrati Callahan Company 2.152.20 Chemicals 80337 Graybar Electric Company 600.24 Electrical Repair 8 Maintenance Services 80338 Great Waslem Sanilary Supplied 20.90 Jaritonal Supplies 80339 Green Parrot 108.29 Meeting Supplies 80340 Masco Oil Co.,Inc. 167.64 Grease 80341 Hewlett Packard Company 4,016.43 (1)HP DL360 Server 80342 Hit Brothers 20,542.53 Chemicals-Odor B Corrosion Control-Newpon Trunkllne 80343 Industrial Distribution Group 34.48 Mechanical Parts 8 Supplies $0344 Institute for International Research 2,093.00 Training Registration 80345 Internal Revenue Service 125.00 Wage Gamtshment 80346 Intl.Union of Oper.Erg.AFL CIO Loral 501 4.552.30 Dues Deduction 80347 Irvine Ranch Water District 5.45 Water Use $0348 K-Micro,Inc tlW Corti nle Services 8,064.0D ACAD Govt.Client Multi-Storage Server Maintenance Agreement Renewal 80349 LA Orange Area MSA 185.00 Training Registration 80350 Court Order 150.00 Wage Garnishment HWepMnlEx6ELAla132MPSHME\Cleima Paid iieparlwxad Claiaa Paid napmL 0N5L5 EXHIBIT sanm4c Page 6 of 8 sa2low Claims Paid From 04/01/06 to 0615106 Warrant No. Vendor Amount Description 80351 McMaster-Cart 926.74 Mechanical Pads&Supplies 80352 McMaster Carr Supply Co. 471.48 Mechanical Pads&Supplies 50353 Measummenl Variables,Inc. 1,468.72 Electrical Paris&Supplies 50354 Court Omer 225.00 Wage Garnishment 50355 National Bond&Trust 2,495.20 U.S.Savings Bantle Payroll Deductions 80356 National Plant Services,Inc. 1,035.00 Vacuum Truck Services 80357 Nexlel Communications 1,461.64 Cellular Friends&Air Time 80358 OCB Repragrephice 449.05 Printing Service-MO 1/26100 80359 OCEA 567.49 Dues Deduclion 80360 Orange County Pest Control,Inc. 13g.00 Pest Control 80361 Orange County Shedd 85.00 Wage Garnishment 80362 Paul Cockrell Photography 752.50 Pholcgmphlc Services-Trickling Filters&Secondary Clarifiers 80363 Peace Officers Council of CA 1,512.00 Dues Deduction,Supervisors&Professionals $0364 Polydydre,Inc. 2,308.78 Cagonic Polymer MO 3.11.92 80365 Pad Supply 65.36 Monitoring Vessel Pads&Supplies-Nerissa 80366 Professional Plastics 1,792.40 Mechanical Pods&Supplies 80367 Reslek Corp. 741.27 Tubing 80368 RM Admission do RM Controls 287.79 Instrument Supplies 80369 Recovered College Continuing Education 1,107.00 Training Registration 80370 Sancen Engineering,Inc. 1.160.00 Repair&Millet.Services-Cumbering Manhole at Baker/Gisler Air Jumper a0371 SBC 1.592.11 Telephone Services 80372 SBC Lang Distance 1.10 Lang Distance Telephone Services 80373 SBC/MCI 788.68 Telephone Services 80374 Sol Associates 2,000.00 Engineering Services-Evaluation of Digester Gas Piping at PIL 2 80375 Scott Specialty Ganes,Inc. 111.20 Lab Pads,Supplies&Demurrage 00378 Secretary of Slate 20.00 Filing Fee-Statement of lnformatlonOomeolic Nonprofit Corporation 80377 SETAC 60.00 Meeting Registration-Divislon 631 80378 Sewer Equipment Company of America 196.11 Hose Guides 8037E Siemens Building Technokigles 9,99800 SofivarelHardware Upgrade 80380 Smith Pipe&Supply,Inc. 127.68 Landscape Irrigation Supplies 80381 Court Omer 721.50 Wage Garnishment 80382 Southern California Edison 9,885.54 Power 80363 Super Chem Corporation 2,790.64 Chemicals 803M Thompson Industrial Supply,Inc 1,492.36 Mechanical Pads&Supplies 80385 T-Molde 110.75 Wreless Air Time 80386 Tony's Lock&Safe Service&Sales 123.47 Locke&Keys 80367 Truck&Auto Supply,Inc. 145.60 Aulomo0ve Supplies 80388 The Unhouroe Corporation 604.26 Office Supplies 80389 United Parcel Service 58.41 Parcel Services 80390 United Way 180.00 Employee Contributions 80391 University of Arizona 10.000.00 Membership-Industry/Universily,Cooperative Research Clr.(UANSF Wlr.Quality Ctr) 80392 Verizon Celifomla 444.27 Telephone Services 80393 Village Nurseries 18.86 Landscaping Supplies 80394 Waste Markets Corp. 14,073.99 Metnt.Agree.-Gnl&Screenings Removal&Digester Mall Removal 80395 Court Omer 697.50 Wage Garnishment 80396 Zlmmemran Yacht Maintenance 118.00 Repair&Maintenance Service-Ocean Mond4dng Venal Nodded 80397 Jeffrey Brown 99.45 Meeting/Training Expense Reimbursement 80398 Marcus D.Dubois 245.08 Meeting/Training Expense Reimburaemanl H VNpNvE%CELAIau120An1 V REM,INme PNd nepeMa6oTCINma Paid Report-W-15U9 EXHIBIT A npglm. Page 7 of 8 apnapa Claim Paid From 04/01/06 to 04115106 Warrant Ho. Vendor Amount Description 50399 Michele Farmer 66.43 Meeting/fraining Expense Reimbursement 80400 Darius Ghszl 670.00 Meefingrrmining Expense Reimbursement BD401 Wanda R.Hagerty 15.38 Meeting/imining Expense Reimbursement 80402 Dale O.Henderson 197.74 MeetillgRraining Expense Reimbursement 80403 Michelle R.Hetherington 699.70 MeelingirTraining Expense Reimbursement 80404 Ludophy T.Lorimar 352.70 Meeting/7raining Expense Relmbureement 80405 Fred J.O'Brien 7.11 Meeling/fraining Expanse Reimbursement W406 Pamela A.Koester 1.013.84 Employee Computer Loan Program 80407 Mail Smith and Dell 3,000.00 Employee Computer Loan Program 80408 Orange County Sanitation District 14,378.09 Workers Comp.Reimb. 80409 Tag Lvt Environmental Services,Inc. 4,554.00 Environmental Services BD410 Robyn A.Wilosx &52.09 Employee Computer Loan Program Total Accounts Payable-Warrants $ g,124,112.97 Pauroll Disburaerm nb 33085 - 33182 Employee Paychecks $ 13&450.91 Biweekly Payroll 04/122006 33183 - 33199 Employee Paychecks 10,361.55 Reissues,Retms,IDEA,OCERS Reini Comic.&Term,Payroll 04110 to 1213106 124526 -125080 Direct Deposit Statements 1,073.D40.90 Biweekly Payroll 04112818 Total Payroll Disbursement $ 1,221,853.38 Who Transfer Paynts, OCSD Payroll Taxes&Contributions $ 730.609.15 Biweel y Payroll 04/1W05 US Bank 410,528.03 Series 2006 A&B Refunding CON March Interest Payment US Bank 627,953.25 Series 2000 A&B Refunding CON March Interest Payment JP Morgan Chase Bank 136,348.44 Series 1993 Refunding COPS March Interest Payment Total Wire Transfer Payments $ 1,905,438.87 Total Claims Paid 04101106.04115108 E 12151,405.20 H Waddd%E%CELEIn@20APS1+RE%Cleims Pee Raporcndciamo Pelf Report-0C-15La EXHIBl7jl--- „ fiW104p Page 8 of 8 di4DEea � - r Clafms Paid From 04116106 to OM 06 W.manl No. Vendor Amount Description Accounts Payable-Warrants $0411 Air Products&Chemicals S 76,230.44 O&M Agreement On.Gan.Sys.MO 8.8-89 80412 Black&Veatch Comorston 108,495.91 Engineering Services J-77&J-79-1 80413 Blue Crass of California 362.288.21 Medical Insurance Premium 80414 Camp Dresser&Mckee,Inc. 111,356.03 Engineering Service J-7141 80415 Delta Dental 57287.36 Denial Insurance Plan ON16 HewleO Packard!Company 77,303.50 (2)Servers(50)PCs and Miscall...Hand"re/Soflware ON17 Keber Foundation Heats Plan 60.804.66 Medical Insurance Premium 80418 Kemimn Companies,Inc. 110,190.75 Ferric Chloride 80419 Kerry/Jenks Consultants,Inc. 55,537.23 Professional Services 749 80420 Malcom Pimie,Inc. 319,120.10 Professional Services 1-10 80421 Mkt Weal Associates 28,688.15 Pump Parts&Supplies 80422 Occidental Energy Marketing,Inc. 75,912.5/ Neutral Gas for CerGerwCoGen 00423 Orange County Water District 5.942.948.58 Joint GWiS Project J-36 W24 Pioneer Amedoas.Inc. 158.581.21 Sodium Hypochloa e 80425 PoWlyne,Inc. 39.61 Cetlonk Polymer MO 3.11.92 80426 RBF Consulling 41,501118 Engineering Services 747 80427 Science Appllcallons lntsmatfonal 25.157.31 Ocean MOMfodng MO 64-94 80426 Sofirboice Corp. 26,196.75 SoBware 80439 Tule RanchlMagan Fames 225.043.96 Residuals Removal MO 3-29-95 BU30 US Peroxide,L.L.C. 90,907.65 Odor&Corrosion Cortina Treatment had Coll.Sys.;Hydrogen Pentad.&Famous Chloride B0431 ARE,Inc. 292,476.60 Construction 7.36&741 80432 Klewit Pacific Co. 473,355.00 Construction 5.51&5.52 80433 Sammn Engineering.Inc. 200.425.50 Construction 7-21 80434 Union Bank of California 32.497.40 Construction 741 Is 7a6,Retention 80435 Wells Fargo Bank Mac C73004)12 52,50.00 Construction 5.51&5-52.Reardon 80436 A W Chesterton 5.256.36 MCManiral Pads&Supplies 80437 ABB Automation,Inc. 393.30 Repair&Maintenance Service-Flow Madera 80438 Accurate Enviommentsl Services.Inc. 7,800.00 Professional Services-RelaBve Accuracy Test Audit for(3)CGS Engines 80439 AccuStandard 72.72 Lab Paris&Supplies SO440 ACE Ergonomics 375.00 Professional Services-Ergonomic Workstation Evaluations 80441 ACGIH W erthyn s 130.75 Publication 81 Acopien Technical Company 142.59 Electrical Pads&Supplies 80wt3 Agiknl Technologies.Inc. 381.79 Lab Paris&Supplies 80444 AIHCE American Industrial Hygiene 485.00 Training Registration 80445 Alga.Safely,Inc. 5,086.94 Safety Supplies 60146 Aigas West 8.68 Demurrage 60447 American Airlines 3.947.65 Trnal Services 80448 American Concrete Immune 7.900.00 OnSlte Seminar-Div.760--fmubleshooMg Concrete Constmcllon' 81 American Water Works AssocJWaler Quality 129.50 Publication 80450 Axon Marine 2.722.50 HaaaNOu.Material Disposal Services 80451 Anixtec Inc 6,69342 CCW Camera Replacements BN52 Applied Industrial Technology 11.34 Mechanical Pads&Supplies 80453 Aquatlum Doctor 110.21 Human Re5pa1C95 Aquarium Service 80454 Aqualic Bioassay and Consulting Lets,Inc. 785.00 Wide Effluent Toxlcfty Testing 80455 Arizona Instrument 1,552.50 Instrument Repairs&Calibration Service 80456 Ashbrook Corporation 740.60 Mechanical Parts&Supplies-Wnklepress 80457 ASIS International 745.00 Training Reglstrelkn 80458 Aulom Pictures,Inc. 495.00 Safety VMeor-Defensive Driving 80459 AWalds&Trophies Company 46.88 Awamds&Trophies 80460 Bask Chemical Saboteurs,L.L.C. 21,631.50 Sodium B15ulfte&Sodium Hydrodde BN61 BC Wre Rope&Rigging 7,307.99 Mechanical Pads&Supplies 60452 Routers"walk.Inc. 1,904.32 Lab Parts&Supplies 80463 Boyle Engineering Cowmilon 914.50 Professional Services 1-24 ..piu rva CFA.CNANPSXARflCIVYv P.s RepPIDLTCW..v d RepM-043046 E%HIBR B manes. Page 1 of 9 srnrzoss Claim Paid From OW16108 to 04/30106 Warrant No. Vendor Amount Description 80464 Buckram&Associates.Inc. 1.422.50 Professional Services-Pavement Management 80465 Bush&Associates,Inc. 8.404.00 Professional Services 7.41&7.36 80466 Cardiac Science Corporation 1,485.79 Safety Supplies 80467 CDWGovanment,lnc. im&n Scum 80468 Chad .Inc. 59.97 Discussible Pens for Yoko9awe Chad RecaNer 80460 CMAA 340.00 Meeting Registration-Division 700 80470 Caddish Technologies 4.829.40 Software License Upgrade $0471 Consumers Pipe&Supply Co. 2.531.86 Plumbing Pads&Supplies 80472 Cooper Energy Services 626.82 VeNes 80473 Corporate Express 634.40 Office Supplies 00474 Catch Engineering 7,707.69 Pump 80475 Council on Edu.In Management 850.00 Training Registration 80476 County of Orange Amster Controllsr 399.50 Encroachment Permit 1.10 80477 CRC Press,Inc. 506.23 Publication 80478 CWEA Annual Conference 400.00 Training Regisirelfon(California Water Enwlmnment Association) 80479 CWEA Membership 300.00 Membership(Calif.Water Environment Assoc.) 80480 Dell 216.13 Service Maintenance Agreement $0451 Dapper The Co. 753.05 Trod Tires 80402 David's Tree Service 2,225.00 Tree Maint.Service 80483 DDB Engineering,Inc. 625.00 Professional Services-Grant Management 80484 Del Mar Analytical 610.00 Analysis of Blotches 80485 Dell Computer 298.66 De0 Orum Kits 80486 DKG Conshu0tfon 8,52641) Constmdon FE04-05 80487 Employers Group 200.00 Training Re9istmtion 80488 Employee Benefits Specialists,Inc. 1,025.70 Reimbursed Prepald Employee Medical&Dependant Care 80489 Employers Group 2.463.50 On-She Training: Cuslomm Servd;Telephone Skills;Dealing w]Change,&Communicating w0p1amecy 80490 Enchanter,Inc. 5.600.00 Ocean Monitoring&OuHell Inspection&Maintenance 80401 Engineered Plastic Systems,L.L.C. 305.05 Bench&Herdwae ON92 Environmental&Occupational Risk Mgmt. 175.W Professional Services-Indoor Air Quality Investigation 80493 EmAmnmenlal Resource Assu0imes 1.415.58 Lab Paris&Supplies 804N Ewing Irrigation Industrial 589.10 Landscape Irrigation Pads&Supplies 00495 Express Lens Lab 2.001.08 Safely Game 80496 prime Edgusion,Inc. 1.894.76 Mechanical Pens&Supplies 80497 Fisher SCIen1I8c Company.L.L.C. 9,389.99 Lab Pads&Supplies $0498 Forestry Suppliers 501.35 Lab Pads&Supplies 80499 Forked Engineering&Surveying.Inc. 673.20 Surveying Services-Various Capital Project;5-51 80500 Fountain Valley Rancho Hand Wesh 462.00 Vehicle Washing&Waxing Service, W501 Franklin Covey 171.14 Office Supplies 80502 Fry,Electronics 193.94 Computer Supplies 80503 Getinge Castle 1,006.00 Instrument Maintenance Service-Autoclaves 80504 Golderwest Wndav Service 3,885.00 Groundskeeping Services 80505 Grainger,Inc. 4,728.13 Pads Storage Cabinet 805M Great Western Sanitary Supplies 744.64 Janitorial Supplies 80507 The Grimaced Company 706.80 Instrument Pads&Supplies 80508 Demoted.Inc. 2.859.38 Instrument Paris&Supplies 80509 Gumanfoe Records Management 294.69 Off-Sue Records Storage 80510 Heaker Equipment Company 4.475.09 Misc.Vehicle.Pads,Repairs&Service 80511 Hour No Popfon Indusitics 1,385.19 Lab Pads&Supplies 80512 Hill Brothers 6.654.90 Chemicals-Odor&Compiled Control-Newport TronNine 80513 Hills Beef Service,Inc. 608.56 Oil&Filter Change-Ocean Monitoring Vessel Nerissa 8D514 Home Depot 2,475.14 Misc.Repair&Maintenance Materiel 80515 Hub Mae Supply 1,870.85 Vahkle Pads&Supplies 80516 IBM Corporation 4,6080D Computer Networking Services 80517 Idexx 2,678.67 Lab Paris&Supplies NWopMMEtCEL dskcP SHARMWM paid Rep fJAalCnbm Paid seem-0430,06 EXHI9fi8_ rsarwc Page 2 of 8 L1 VSMS Claims Paid From 04116106 W 04130 6 Wrimatd No. Vendor Amount Description U518 Industrial Distribution Group 2,232.50 Mechanical Pads,Supplies,Locks&Tools MIS Industrial Metal Supply 495.15 Metal W520 btlustrial Threaded Products.Inc. 721.97 Inventory Fasteners M21 Mnorative Net Systems 1,370.00 Lab Pads&Supplies M22 Jays Catering 1,137.36 Meeting Expenses 80523 JPL Compresses Service,Inc. 8.495.97 Gas Compressor Pals&Supplies 80524 Kfeinfelder,Inc. 15.060.15 Soils.Concrete&Other Materials Testing 80625 LeMOKe Company 926.32 Lab Pads&Supplies 80526 Lehigh Valley Safety Supply Co.,Inc. 201AB Mobile Safety Shoe Service 80627 LINJER 11,033.64 Professional Service-DART M09-22-99 80528 Loman Education Services 319.00 Training Regislraton 80529 Luccys Gmamet Foods.Inc. 200.00 Meeting Expense 80530 Lynde Ordway Company,Inc. 302.50 Repair&Malnlenance Services-Pit.2 Copy Center Electric Paper Cutter 80531 McMaster-Cart 70.38 Tools&Mi..Supplies 80532 Maintenance Technology Corp. 635.33 Mechanical Pans&Supplies 80533 Managed Heald Nehrork 1.265.16 Employees Assistance Program 805U Madley's Boiler,Inc. 575.00 Repair&Maintenance Services-Boller Ex0105ion at Pit.2 80535 MassMutual Michel Financial Group 145.41 Executive Disability Plan Premium 805M Mail CNlor,Inc. 4.545.88 Valves B0537 Maureen Kane&AsaoGalee 880.00 Meeting Registration-Division 320 80538 MBC Applied Environmental Sciences 1,496.00 Ocean Monitoring-Taxonomical Identification of Invertebrate Organisms 80539 McMaster Can Supply Co. 3,783.58 Mechanical Parts&Supplies 80540 MDS Comment 4.960.80 Professional Services 1.24 80541 Measurement Control Systems,Inc. 2.043.82 Instrument Repair&Calibration Services 80542 Medlin Controls Co. 129.71 Instmmenl Pads&Supplies 80543 Midway Mfg.&Machining Co. 7,542.51 Mechanical Paris,Supplies&Repairs 80544 Mine Safety Appliance Company 505.76 Sensor hue 80545 Mission Abrasive Supplies 378.96 JanlOH21 Supplies B0546 Mitchell Instrument Co. 75.71 Instrument Pals&Supplies B0547 National Fire Protection Association 29.91 Safety Supplies 80548 National Plant Services,Inc. 3.160.00 Vacuum Tmrk Services 80549 National Seminars Group 798.00 Training Registration 80550 Neal Supply Co. 1.567.05 Plumbing Supplies 80551 Nostril,Technology 178.00 Software License&Support $0552 Ninyo&Moore Corporate Accounting 1,136.00 Soils&Other Materials Testing Pl-37&PI-82 80553 The Norco Companies 339.96 Mail Delivery Service W554 NRG Themal Services.L.L.C. 1,481.01 Mechanical Pads&Supplies 80555 OCB Reprographics 306.76 Printing Sendca-MID 1126MO 80556 Office Depot Business Services Division 1.288.37 OMce Supplies 80557 01 Analytical 902.95 Lab Paris&Supplies 80558 Olympus NOT.Inc. 4.305.70 Instrument Parts It Supplies 80559 Onesourca Distributors,Inc. 2,450.13 Electrical Pads&Supplies 80560 Operation Technology,Inc. 3.0W.32 Computer HardsmadSOOware Upgrade&SUPPori M61 Orange FIUM System Technologies,Inc. 5.315.16 Plumbing Pads&Supplies 80562 ORE Offshore 277.90 Batteries&Zinc Anodes 80503 Oxygen Service Company 137.50 Specially Gases 80584 Pacific Mech macal Supply 1,474.01 Plumbing Supplies 80565 PCG Industries 7.150.00 Repair&Maintenance Services-Pump Shag 8006 PL Howe Company,Inc. 46.61 Electrical Parts&Supplies 80567 Pdmary Source Office Furnishings.Inc. 371.74 Office Furniture&Misc.Equipment 80588 Prawns Software Corp. 2,607.38 Software License-VAX Mft.up 80569 Prudential Overall Supply 6.241.67 Uniforms&Related Articles 80570 0 Air Calif.Div.Pump Engineering 5,974.22 Air,Oil&Separator Filters and Oil Coolants 80571 Quinn Shepherd Machinery 1,278.22 Fuel,Oil&Air Fillers for Diesel Generators H:rMPMmEXCELEm2MNPmARVCWnr Pea aeooM Mlsms mw moors-oaapas EXHIBITB N021MC Page 3 of 8 yrrrspy Clahln Paid From 04116106 to 04/80/06 Warrant N. Vendor Amount Description 90572 R L Abboit B Associate. 3,000.00 Kern County Blosollds Consulting Services 80573 Lawronre Ragan Communications,Inc. 895.00 Training Registration 80574 RaMbow Disposal Co. 2,973.12 Trash Removal 80575 Restek Corp. 2,600.38 Lab Pans 8 Supplies 80576 RMS Engineering a Design.Inc. 1,600.00 Engineering Sery ices P288-3 80577 Rockwell Engineering 8 Equipment Co. 4.386.08 1W Impellar,Pegs&Supplies 80578 Royale Cleaners 12.00 Dry Cleaning Services 80579 RS Hughes Co.,Inc. 152.09 Pain Supplies 80580 Slate of California 125.00 Membership 80581 Sammn Engineering,Inc. 3,475.00 Construction-Manhole Rehabtimitlon Prolecl&Relaxes 8 Melnt.Services 8D582 Schwin9 America,Inc. 8,095.88 Pump Parts 8 Supplies 80583 Sea Bird Electronics,Inc. 715.00 Lab Instrument Maintenance 6 Calibration Services 80584 Security Land 8 Right of Way Service 2,017.50 Professional Services 549 80585 SETAC 60.00 Membership or Meeting Registration-Division 631 $0586 Shamrock Supply Co..Inc. 1.740.27 Simple Green CleanerlDegreeser 80587 ShumNck Sales&Engineering 276.10 Mechanical Parts 8 Supplies 80588 Stamens Go Jensen Instrument Co. 1,346.33 Instrument Repairs 6 Maintenance Services 80589 Skslar,Inc. 435.63 Lab Pans 8lnstrumenl Repair 6 Maintenance Services Sol Source Gmphiu 8.853.97 36"Color Plotter,Installation 6 Training 80591 Sparklem 2,170.54 Drinking Waler/Cooler Radial. 80592 Sperling Instruments,Inc 250.00 Repair 8 Maintenance Services-Final Effluent Flow Maier 80593 St.Croix Sensory,Inc. 915.00 OOaclemalry Testing Services $0594 State Board of Equaezallon 90.68 Underground Storage Tank Permit Fee 80595 The Slrywell Company 217.79 Safety Supplies 80596 Summll Steel 1,319.00 Metal 80597 Sunset Industrial Pam 416.26 Mechanical Pam 8 Supplies 80598 Technical Service Group,Inc. 1,96f AO SCADA System VAX Service Agreement 80599 Teledyne RD Instruments,Inc. 518.70 Battery Packs 80800 Termini International 125.00 Pest Central 80601 The gladdens Insurance Company 2,620.23 Execulye Disability Plan Premium 801102 Thermo Electron North America 343.25 Lab Pans 6 Supplies 80603 Thompson Industrial Suppy,Inc. 9,721.24 Mechanical Pans B Supplies 80604 TMV Systems Engineering,Inc. 3,031.25 Software Maintenance 80605 Tra81c Control Service,Inc. 571.08 Traffic Safety Supplies SONIN Than Consulting Engineers 16,395.68 Engineering Services 7.21 80807 Tramm Incorporated 2.450.00 Repair 6 Maintenance Services-Control Center Roof Leak at Roof Drain 8OW8 Truck&Auto Supply,Inc. 215.51 Automotive Parts&Supplies 80600 US Fier Corp. 1,337.66 Service Agreement-Di Water Systems at Plants 162 801310 UC Regent. 125.00 lab Pads&Supplies 80611 Ultra Scientific 273.28 Lab Pens&Supplies 80612 United P.W.Services,Ine. 21,077.51 Landscape Maintenance 8 Tree Trimming Services 80613 United Parcel Service 1.505.77 Parcel Services BM14 University of Watchman Madison 1.195.00 Training Registration 80615 Unnol Corporation 7,830.00 Professional Services-Safety Training Audit Poled 80616 US Composting Council 500.00 Membership M17 US Equipment Co.,Inc. 771.51 Filters W018 Mapex Inc. 3,167.50 Instrument Pans B Supplies 80619 Variant Wd less 172.06 Wheless Services 80520 Vision Service Plan CA 9.757.80 Vision Servlco Premium 80821 Vortex Corp. 3,418.78 Repair 6 Maintenance Services-Ellie Ave.Exit Gate&Warehouse,South Roll-Up Door 80622 V WR Scientific Products 1.721.03 Lab Pam&Supplies 80623 The Wackenhut Corporelsen 17.099.15 Security Guards 80624 Waler Environment Federation 192.00 Membership 80625 Waxle Sanitary Supply 414.75 Janilerial Supplies H WwMME%LELwN3PAPSHARE1[3emr Pep aeperf09O764bm Pea Flacon-04]046 EXHIBIT_-- a. 1M1Mc Page 4 of 5,11 eoa Clams Paid From 041116108 to Waring Warrant No. Vendor Amount Description 80626 WEF 728.00 Membership-Water Environment Federation 80627 West Lila Supply Company,Inc. 372.32 Electrical Pads&Supplies BM28 Weslem Slates Controls $21.78 Electrical Pads&Supplies BW29 Weston Sessions,Inc. 14,055.00 Outside Laboratory Services-Core Ocean Monitoring Program $0630 WMh Gas Equipment Co. 7,755.85 Gas Meter w/CEX Transmitter 80631 World Al Work 1.970.00 Training Re9istrallon 80632 Wumbus Corporation 550.79 Safety Videos 80533 Xemx Corporation $68.00 Full Serves Maintenance-Xemx Synergix and Media Overages 80634 YaleXhase Materials Handling,Inc. 781.40 Electric Cads&Pads 80635 Yokogrm Corp.of Armr1. 533.58 Instrument Supplies 80636 1-800-Confemnce(R) 178.48 Telephone Conference Cans 80637 Layne T.Ba eldi 522.70 MeetingRra ling Expense Reimbursement BM38 Thomas M.Blanda 833.04 Meeting Timing Expense Reimbursement 80639 Frank Chavez 581.09 Meeting/fmining Expense Reimbursement BOW Yeom Choi 125.00 MeetingRlaning Expense Reimbursement 80641 Kelly J.Christensen 358.10 Meedlrg/rteming Expense Reimbursement 80642 Martin A.Dix 20.00 Meeting/Training Expense Reimbursement 80643 Themaa D.Dodderer 761.30 MesnngRmining Expense Reimbursement BOW James M.Elo 18.00 MeenngRralnlrrg Expense Reimbursement 90645 Kimberly A.Erickson 74.23 MeegngRrolning Expense Reimbursement 80646 Mark A.Esquer 620.48 Meedn9?rainitg Expense Reimbursement 80647 W.Doug Hauser 1,082.72 Meegng/Trainirg Expense Reimbursement 80848 David R.Helriz 470.90 MeednnrTrelning Expense Reimbursement M49 Ingrid G.Hellebrend 119.0,11 Meeting/Training Expense Reimbursement M650 Mehene R.Hetherington 495.00 Meeting?raining Expense Reimbursement 80651 Penny M.Kyle 277.75 Mewing Training Expense Reimbursement 80652 Michael D.Larkin 771.21 Meetng Tralnlrg Expense Reimbursement M53 Linda Losumo 36.46 MeetInglTraining Expanse Reimbursement 80854 Wllnam S.Malik 195.00 Meetin9rTrelning Expense Reimbursement 80555 James W.Mane 450.00 MregngRraning Expense Reimbursement 80855 Darryl G.Miller 1,168.34 Meeting/Traloing Expense Reimbursement BOOST Sharon Native 97.57 Meetingrrminl g Expense Reimbursement 80058 Plena Wang 295.00 Meenng/Tralnlrg Expense Reimbursement M59 Paula A.Zeller 1.193.35 Meatirg/Tmining Expense Reimbursement 80880 Vatded Check - 80661 Orange County Broadened Daunt 1,265.18 Petry Cash Relmb. 80562 CH21A Hill 52,326.56 Engineering Services-Needs Assessment for Environmental Compliance Program 80863 HDR Engineering,Inc. ",527.07 Professional Services P1.82 80664 Kemiron Companies,Inc. 52.520.97 Farm Chloride 8n885 Pioneer Americas.Irm. 159.260.45 Sodium HypochloMe 80666 Southern California Edison 470,037.52 Power BOOST Spec Services,Inc. 41,532.40 Engineering Services 7a24 BOW US Meho Group,Inc. 30.322.50 Jannoria&Floor Maintenance at Plants 1&2 BW69 US Peroxide,L.L.C. 189.692.12 Odor&Corrosion COntact Treatment for C.B.Sys.;Hydrogen Peroxide&Ferrous Chloride 80870 Accounting Options,Inc. 5.278.00 Temporary Employment Services 80671 Algas Safety,Inc. 069.43 Safety SupPlles 80672 ApplaOne Employment Service 4.644.43 Temporary Employment Services 80673 Aquatic Bioassay and Consulting Labs.Inc. 1,130.00 Whale Effluent Toxicity Testing 80674 Ashbrook Corporation 614.18 Waklepress Pads&Supplies 80875 AT&T Unkrersal Biller 1,W1.19 Telephone Service U575 American Telephone&Telegraph Corp. 25.84 Telephone Service W677 AWWA 226.00 Membership(American Water Works Assoclagon) 80078 Baker Tanks 1.862.00 Tank Renlele 80679 Basic Chemical Solutions,L.L.C. 5,262.54 Sodium BIsuIBle H YepMME%CEI.GIN30UP6NRREleWm!POW RaxONNSOMhans Pad Rporl D0.Mal EXHIBIT s.¢nmc Page 5 of 8 y„Hors Claims Paid From 04116106 to OO130g6 Warrant No. Vendor Amount Description 80680 Basler Electric 4,129.68 Electrical Pads&Supplies 80681 Sellec Industries,Inc. 753.17 Fresh Air Purifier 80682 BioMed...Walk,Inc 655.78 Lab Parts&Supplies 80683 Court Thanes 90.89 Wage Garnishment 80684 CaliforMa Auto Collision 740.97 Motor Pool Vehicle Body Repairs 80685 Cardlock Fuel Systems Inc. 17.396.81 Fuel Cad Program-District Vehicles&Monitoring Vessel 80686 Cingular Wreless AlrBme 5.336.68 wmwss Services 80687 Compressor Components of California 11,630.00 Repair&Maintenance Serviced;-(32)Coils LSVB Ignition 00689 Comex International,Inc. 10.245.00 Legal Services-Construction Management P2430 80689 County of Orange 160.00 Wage Gamishment 80690 County of Orange Auditor Controller 210.00 Inspection Service P142&Encroachment Permit 7.22.1 80691 County Of Orange Auditor Controller 17.50 EnodarlMment Permit Pl-82 80692 CR&R,Inc. 1,575.00 Cpnmmer Rentals 80693 Culligan of Orange Count' 45.30 Maint.Agreement-Can Gen Water Softener System 80894 Cummins Allison Corp. 373.44 Accounting Equipment Malnl.Agreement SM95 Dell 2,478.98 Service Agreement WISH Del Mar Analytical 320.00 Analysis of BiosolNs 80697 Department of Child Support Services 300.00 Wage Gamishmenl 80698 Dickron'c,Inc. 755.55 Heat Pump/Air Conditioner $0699 DIRECTV 4728 Subscription 80700 Doug Horwood Supply 79.50 Acimant Tone&Data Stamp Repabs 80701 Dunn Edwards Corpuatlon 327.57 Paml Supplies 80702 Electra Bond,Inc. 1.815.59 Repair&Maintenance Services-Fusion Bond Gooding 80703 Electrical Refiabiliy,Services 767.50 Electrical Testing-Various Capital Projects 80704 Employee Benefile Specialists,Inc. 10,614.30 Reimbursed Prepaid Employee Medical&Dependent Care 80705 Equa-Chler 3.207.56 Chemicals B0MB Court Order 420.00 Wage Garnishment W707 ESRI,Ix. 1,849.00 Training Registration 80708 FEDEX Commtion 322.70 Freight Services 80709 Find American Real Estate Sdupona 375.00 On-Line Orange County PropeM Imf moldn 80710 Forked Engineering&Surveying•Inc. 5,956.80 Surveying Services-Various CaplUd Projects 80711 Fountain Valley Points.Inc. 528.89 Paint Supplies 80712 Franchise Tax Board 118.55 Wage Garnishment 80713 Franklin Covey 15.24 Office Supplies 80714 Fry.Electronics 969.63 Computer Supplies 80715 Gold Coast Awards,Inc. 25.47 Name Badges W716 Groom Electric Compmry 5.499.86 Communications Equipment&Pads 80717 Hach do Portion Industries 4.42736 Repair&Maintenance Services-Flow Meters 80718 Hasler,Inc. 150.85 Postage Meter Rental Fee 80719 Hit Brothers 14.424.84 Chemlca6-Odor&Corrosion Control-Newport Tmnkllne 80720 Home Depm 70.42 Marc.Repair&Melnlenamce Material 80721 HumminBbOd Communications.Ltd. 1.143.611 Annual Maintenance Agreement 80722 ICMA 103.03 Subscription 80723 Internal Revenue Service 125.00 Wage Garnishment 80724 IBM Comorellon 5,103.66 Maintenance Agreement AS400 50n5 Intl.Union of Opm,Eng.AFL CIO Loce1501 4.550.46 Dues Deduction 80728 Irvine Ranch Water District 43.37 Water Use 80727 N.P.McNamara of CA,Inc. 3,600.00 Hazardous Material Removal/Disposal Services 80728 Wince,Inc. 3,656.40 Temporary Employment Services Sting Niesal Ermhummeml Lab 750.00 Outside Laboratory Services-Testing of Ferric Chloride 80730 Court Order 150.00 Wage Garnishment 80731 Manpower Professional 3.84D.00 Tempomry Employmem Services a0732 Material and Contract Services 4,98D.00 Temporary Employment Services 80733 McMaster Cart Supply Co. 525.49 Mechanical Paris&Supplies N weNaaE%CFLdM37a41P.BA6DCI0iiN PeE mapvwaoncltsu Pea a.pon.0a EXHIBIT@ inu Imc Page 6 of 8 v11/2e06 Claims Paid From 04/16106 b OM30MG Warrant No. Vendor Amount Description $0734 MMway Mfg.&Machining Co. 525.00 Mechanical Pads,Supplies It Rapaks 80735 Mission Uniform Servloe 107.% Unhand Rentals 807M Court Order 225.00 Wage Garnishment 80737 National Bond&Trust 2.44520 U.S.Savings Bonds Penrod Deductions W7W Natsounce,L.L.C. 1,76328 SCAOMO Emission Filing Fee W739 New World Language Service 59.90 Training Registrallon 60740 DOB Reproomphice 21,741.95 Printing Service-MO 1126MO 80741 OCEA 558.24 Dues Deduction 80742 Office Depot Business Services Division 0.03 Office Supplies 80743 Onesource DiMnbulom,Inc. 23.66 Electrical Pads&Supplies 80744 Orange County Sheriff 85.00 Wage Garnishment 80745 Oxygen Service COMPany 40.51 Specialty Gases 80746 Peace Officers Council of CA 1,521.00 Dues Deduction,Supervisors&Professions s 60747 Peak Technologies 2291.54 lab Pads&Supplies 80748 Paydyne.Inc. 10,62827 Cationic Polymer MO 3-114 80749 Pod Supply 16,48 Tools 80750 PROPIPE 5,759.02 Sewedine Cleaning-City of Tustin 6 Unincorporated County Property 80761 Prudential Overall Supply 1,542.26 Uniforms&Related Articles 80762 RMS Engineering&Design,Inc. 2.4n.50 Engineering Services-PII.2 Water Junction Box Stop Plain 80753 Rockhursl College Continuing Education 2,394.00 Training Registration 80754 RS Hughes Co.,Inc. 372.88 Paln1 Supplies 80755 Rutan&Tucker Altameys at Law 2,059.45 Legal Services W756 SBC Long Distance 1,414.01 Long Distance Telephone Services 00757 SSCIMCI 2,868.89 Telephone Services W758 Sco6el Voice 6 Data.Inc. 2,284.80 Telephone Services 80759 SCPLRC-So.Cal Public 200A0 Membership 80760 Siemens oo Jensen Instrument Co. 2,283.97 Robimn Factory Service,Support&Start-Up of VFD Drives M781 Coud Order 721.50 Wage Gamishmenl 80762 Softchoice Corp. 600.99 SaBware INIM3 Southern California Edison 24.65 Power 80764 Southern Counties Lubricants 3,039.97 Oil 80765 Strategic HR 190.00 Training Registration 80166 Summit Steel 610.59 Metal $0767 TBT Value and Instrument 3,166.76 Mechanical Pads&Supplies 80768 TekSystams 5,754.00 Temporary Edployment Services BD769 The Orange County Regiemr 314.00 Notices&Ads BD770 Torre Wader Communication 51.07 Cable Services OD771 Townsend Public Again; 5,000.00 Legislative&Executive Advocate for Grant Funding SD772 Trinity Conwitants,Inc. 725.00 Software Maintenance 80773 Underground Service filed of So.Calif 1,692.50 Membership-Underground!UIIBy Identlf cationMatification Service 80774 United Parcel Service 59.26 Parcel Saracen 80"ll United Way 200.00 Employee Contributions 80776 Verlxon California 81.64 Telephone Services 80777 Wa0y Machinery and Tad Supply,Inc. 471.48 Mechanical Pads,Supplies It Tools M778 WEF 169.00 Membership-Water Environment Federation 80779 Western Pump,Inc. 1,064.90 Inspection&Repair UST Diesel Leak 80780 Xerox Coryoration 16,998.29 Copier Leases&Managed Services $0781 Xyon Business Solutions,Inc. 9,600.00 Temporary Employment Services 807U Coud Order 597.50 Wage Garnishment 80783 Gerardo Amorous 987.44 MeetingiTralnig Expense Reimbursement BD784 Uavld A.Bihl 40.16 Meeting7tralning Expense Reimbursement 80785 WBtud D.Cassidy 717.36 Mee6ngRralning Expense Reimbursement 807M James E.Colston 1,138.51 Mcsfing/TraWng Expense Reimbursement 80787 Steven R.De4611de 633.45 Meetingrrmining Expense Reimbursement H WdMnkExCELd=20AP5HAmCIWM Pee ReIR 411C196ns PeW ROPM O4aaLe EXHIBITB r.niax Page 7 of 8 &11oaca Claims Paid From 04/16106 to 0030MIS Warrant N. Vendor Amount Description 80788 Cade D.Dillon 939.07 MeelingyT eking Expense Reimbursement 80789 Thomas D.Dodderer 53.00 Meefing/rrskin9 Expense Reimbursement 80790 Jeank M.Fields 110.00 Mee8ng7rmining Expense Reimbursement 80701 Victoria L.Francis 625.61 MeefingRrsining Expense Reimbursement 80792 Norbed Gets 491.31 Meeting/ urnIng Expense Reimbursement U793 Devid 0.Halverson 20.00 MeetingRrainkg Expense Reimbursement U794 Vladimir A.Kagan 1,151.11 Meeling/Tralning Expense Reimbursement W785 Paul K.,lak 90.00 Meeling/Tralning Expense Reimbursement 80726 Michael D.Moore 231.00 Meelingrrraining Expense Reimbursement 80797 Je0rsy T.Reed 110.32 Meeting/]raining Expense Reimbursement 80798 Roy J.Reynolds 870.40 Mceting/7ralning Expense Reimbursement 80799 Ernest S.Ruckman 15.00 MeetlnthRraining Expense Reimbursement 80800 Jeremy J.Baum 799.00 Meeting/Training Expense Reimbursement 80801 Man0dck S.Taylor 60920 Meeling/Training Expense Reimbursement 80802 Ronald L.Wade 622.00 M¢elingRraining Expense Reimbursement SD803 Michael I.Zedek 162.75 Meeting/7mining Expanse Reimbursement W804 Farmers Insurance Group 4.914.23 Vehicle Damage Claim 60805 County of Orange Auditor Columnar 17.50 Encroachment Pemtli Pl-82 Total Accounts Payable-Warrants S 10,908,222.84 Payroll Disbumements 33200 - 33201 Employee Paychecks E 1,223.69 Terminations 4117106 33202 - 33282 Employee Paychecks 145.893.42 Shan ldy primal 04/211106 33283 - 33288 Employee Paychecks 13,395.86 Rebid,OCERS Reimbursement,Correction to EE Pay&Termination 0424106 to 04127AW 125081 - 125627 Direct Deciding Sklements 1,124,466.80 Slxreeky Payroll 0426106 Total Payroll Disbursements S 1,28/,8]8.i7 Wire Transfer Palmer. OCSD Payroll Taxes&Contributions $ 650.058.76 Bia eeky Paying 04261116 US Bank 370,927.95 Series 2000 A&B Refunding COPS April Interest Payment Total Whe Transfer Payments S 1,020,986.]7 Total Claims Paid 0V16MG-OV30106 E 13,214,189.32 H iduun NE%CEL ObV20APSHARE\Clams PelO Rapaa1WO11Chime Paid Rsion- 0.]nC6 EXHIBIT. a, .Irui, Page 8 of 8 5,111200e BOARD OF DIRECTORS MeeOngDate Toed.ofDr. 5/24/D6 AGENDA REPORT Item Number Item Number 10(a) Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance Originator: Michael D. White, Risk Manager SUBJECT: SUMMONS & COMPLAINT RE LORENZ V. ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Receive and file summons and complaint re Joel Lorenz v. Orange County Sanitation District, Orange County Superior Court Case No. 06CCO574, in connection with Standby Power and Reliability Improvements, Job No. J-33-1A; and, (2) authorize General Counsel to appear and defend the interests of the District. SUMMARY Please see attached memo dated 5/16/06 from General Counsel. 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 ALTERNATIVES CEQA FINDINGS ATTACHMENTS Memo from General Counsel. LT:MW:BG Page 1 w MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, April 26, 2006, at 5 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday.April 26, 2006 at 5 p.m., in the Disbicrs Administrative Office. (1) The rail was called and a quorum declared present,as follows: STEERING COMMITTEE MEMBERS: OTHERS PRESENT: Directors Present: Bradley R. Hogin, General Counsel Steve Anderson, Chair Don Hughes Jim Ferryman,Vice Chair David Webb, Huntington Beach Carolyn Cavecche, Chair, OMTS Committee Steve Weisberg, SCCWRP Darryl Miller, Chairman, FAHR Committee Tod Ridgeway, Chairman, PDC Committee STAFF PRESENT: Jim Ruth, Interim General Manager Nick Arhontes, Director of Regional Assets and Services Bob Ghirelli, Director of Technical Services Directors Absent: Jim Herberg, Director of Operations and Jim Silva, County Supervisor Maintenance David Ludwin, Director of Engineering Lorenzo Tyner, Director of Finance/Treasurer Lisa Tomko, Director of Human Resources Gail Garrett, Committee Secretary Juanita Skillman Ryan Wheeler (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no comments by any member of the public. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Steve Anderson announced that Supervisor Silva and Dr. Ghirelli will attend the CASA conference in Squaw Valley tomorrow. Chair Anderson provided highlights of his meeting with Director Miller and David Ludwin where they Minutes of the Steering Committee Page 2 April 26, 2006 discussed the Irvine Company's SARI line relocation alternative. He will also meet with County CEO Tom Mauk early in June to further discuss the SARI alternatives and funding. Jim Ruth, Director Miller, Herb Nakasone, and Dan Cozad will also attend. A trip to Washington DC is planned for Chair Anderson, Vice Chair Ferryman and Bob Ghirelli In May to meet with elected officials and their staff as part of the effort to pursue federal funding for secondary treatment and the SARI line. Chair Anderson announced upcoming standing committee meetings for May. (5) REPORT OF THE GENERAL MANAGER Interim General Manager Jim Ruth provided highlights of his monthly status report which was included in the Board package. He informed that two proposed rate increase options will be presented in the CIP report to the full Board tonight. Staff is developing a scope of work for conducting Independent Reviews to evaluate the efficiency and effectiveness of the CIP program. Barry Newton, Creative Management Solutions, has completed his work on the proposed Performance Appraisal System for EMT and managers and the item is on tonight's Board agenda for approval. He is currently developing the General Managers new performance evaluation criteria and will present his report to the EMT, FAHR and full Board in June. Succession planning is progressing and training will commence in July. Director Cavecche will meet with Supervisors Campbell and Silva to facilitate the resolution of issues relating to the Orange Park Acres annexation. Huntington Beach new Warner Avenue Lift Station and sewers—As a follow up to the Mr. Ruth's letter of April 20 to the city and the October 2005 Steering Committee action on this topic, Nick Arhontes, Director of Regional Assets R Services, introduced David Webb, Deputy Director of Public Works from the City of Huntington Beach. Mr. Webb provided historical background information on the facilities now under construction and the city's standing request to transfer the Lift Station and related sewers to the Sanitation District as regional facilities about one year after completion. Mr. Webb distributed handouts and answered Directors' questions. He explained the City is willing to fund OCSD's cost of legal and technical due diligence at this time and was open to possible change orders during construction to achieve compliance. Concern was expressed that this proposed transfer could set a precedent for future infrastructure transfers, and bring added operating costs, regulatory compliance and capacity issues,and risks. After considerable discussion, staff was directed at this time to provide the City with OCSD's latest engineering guidelines and standards for the city's review and use in analyzing how compatible their current design is. Nick will obtain and forward the info to Mr.Webb for city staff use. (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin provided a memorandum summarizing two pending bills that would grant OCSD the authority to utilize the design-build process for public works construction projects. Minutes of the Steering Committee Page 3 f April 26, 2006 He outlined the four-step process and explained that SB 1431 would expand authorization for design- build contracts for all counties, cities, and special districts to procure for projects that cost a minimum of$2.5 million. Rep. Mimi Walter's office is carrying Assembly Bill 2580, sponsored by the Sanitation District, which provides design-build authorization solely for sanitation districts for projects that exceed $10 million, and is limited to best value procurement. (7) CONSENT CALENDAR ITEMS a. The minutes of the March 22,2006 Steering Committee meeting were approved as drafted. END OF CONSENT CALENDAR (8) ACTION ITEMS None. (9) INFORMATIONAL ITEMS a. The Agenda Items scheduled to be reviewed by the Board's working committees in March were reviewed. b. The agenda items scheduled to be presented to the Board at tonight's meeting were reviewed. (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY a. Recommend to the Board to authorize the General Manager to sign the Southern California Coastal Water Research Project Office Lease Guarantee, in a farm approved by General Counsel. Bob Ghirelli, Director of Technical Services, introduced Steve Weisberg of SCCW RP and presented detailed information on the negotiations with the landlord for SCCWRP's new office space in Costa Mesa. He and Dr. Weisberg provided answers to the Directors' questions. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors- b. Recommend to the Board to authorize execution of agreement with the Irvine Community Development Company re relocation of SARI Line and Mountain Park Sewer Line, in a form approved by General Counsel. After considerable discussion, it was recommended to consider this item at the May PDC Committee. (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. f Minutes of the Steering Committee Page 4 April 26, 2006 k (12) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND/OR STAFF REPORT There were none. (13) CONSIDERATION OF UPCOMING MEETINGS The next Steering Committee meeting is scheduled for Wednesday, May 24, 2006 at 5 p.m. The next Board Meeting is scheduled for Wednesday, May 24, 2006 at 7 p.m. (14) CLOSED SESSION The Committee convened at 6:24 p.m. in Closed Session, pursuant to Section 54956.9(b), to discuss one matter. 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 7:00 p.m., the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjoumed at 7:00 p.m. Submitted by: Gail Garnett Steering Committee Secretary H vxyan5o.moivwm cmmnevueomanoM scrr, w T5.m MINUTES OF THE OPERATIONS, MAINTENANCE AND TECHNICAL SERVICES COMMITTEE Orange County Sanitation District Wednesday, May 3, 2006—5:00 P.M. A meeting of the Operations, Maintenance and Technical Services Committee of the Orange County Sanitation District was held on May 3, 2006, at 5:00 p.m. in the Sanitation 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 Jim Ruth, Interim General Manager Ken Parker Nick Arhontes, Director of Reg. Assets & Services. David Shawver Bob Ghirelli, Director of Technical Services Dave Sullivan Jim Herberg, Director of Operations&Maintenance Steve Anderson, Board Chair Lilia Kovac, Committee Secretary Layne Baroldi, Legal & Regulatory Affairs Liaison Jennifer Cabral, Public Information Specialist OMTS Directors Absent: Marc Dubois, Contract& Purchasing Manager Don Bankhead,Vice Chair Mark Kawamoto, Engineer James M. Ferryman, Board Vice Chair Jeff Reed, Human Resources Manager Sukhee Kang Rob Thompson, Process Controls Manager Juanita Skillman, Records Management Specialist Others: John Shaffer, E.E.C. (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Caveoche had no report. (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. Minutes of the Operations, Maintenance '1 / and Technical Services Committee May 3, 2006 Page 2 (6) CONSENT CALENDAR ITEMS a. Approve minutes of the April 5, 2006 Operations, Maintenance and Technical Services Committee meeting. b. OMTSDB-23 Receive and file Technical Services Monthly Report, which focuses on regulatory biosolids and performance measures for the Technical Services Department. C. OMTSO6-24 Receive and file Operations& Maintenance Monthly Report, which focuses on compliance, financial data and performance measures for Operations and Maintenance Department. d. OMTS06-25 Receive and file Regional Assets and Services Monthly Report for January which focuses on current business information, performance trends and financial information of the business units. e. OMTS06-26 Recommend to the Board of Directors to Adopt Board Resolution No. OCSD 06-_, revising the Biosolids Recycling Resolution and repealing Board Resolution No. OCSD 02-18. Motion: Moved, seconded and duly carried to approve the recommended actions for items specified as 6(a)through (a) under Consent Calendar. (7) ACTION ITEMS a. OMTS06-27 Recommend to the Board of Directors to receive and file the FOG Control Study, Phase II - Final Report, dated March 2006, prepared by Environmental Engineering and Contracting, Inc. Mark Kawamoto briefly presented an overview of the FOG Control Study, Phase II program, the total cost, and acknowledged all participating agencies. John Shaffer from Environmental Engineering and Contracting, Inc., presented the study's conclusions and comprehensive staff report identifying results with new technologies, results of sewer additives, line cleaning, and interceptor line monitoring devices. The report was submitted to the State Water Resources Control Board and will be distributed to all Co-Pernittees and City Managers. Motion: It was moved, seconded and duly carried to recommend approval to the Board of Directors. (8) INFORMATIONAL ITEMS .. Minutes of the Operations, Maintenance and Technical Services Committee May 3, 2006 Page 3 a. OMTS06-28 FY 06107 and 07/08 Budget Development Lorenzo Tyner, Director of Finance, presented the budget that will be submitted to the Board of Directors in June, highlighting the limited growth for the proposed two-year budget,flat staffing levels, and the revised CIP while maintaining the Sanitation District's strong financial position. b. OMTSO6-29 Beach Microbiology Report. Bob Ghirelli briefly presented a report showing continuing improvement in beach water quality for the past six years associated with dry weather urban runoff diverted to the Sanitation District for treatment prior to releasing into the ocean. C. OMTS06-30 Joint Purchase Agreement re Chemicals Marc Dubois, Contract and Purchasing Manager, presented the findings of the Sanitation District's investigation, concluding there are many obstacles preventing the Sanitation District from Joining with other similar agencies for the purpose of reducing costs with higher volume pricing. (9) REPORT OF DIRECTOR OF INFORMATION TECHNOLOGY. Jim Ruth reported on behalf of Patrick Miles, Director of Information Technology that the Enterprise IT strategic plan is underway and will be reported in detail at next month's meeting. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE Jim Herberg, Director of Operations and Maintenance, reported on the April 29?emergency discharge to the 78" outfall that occurred during the planned repair of an air release valve that did not seal properly the first time due to heavily corroded flange. The second repair with epoxy extended the cure time beyond the plant's holding capacity, delaying the planned restored flow through the normal 120" outfall, requiring the treated flow to be released to the 78" outfall. Emergency precautions were set in place, proper authorities were notified of the planned repair, and personnel were on standby allowing for immediate response. As an extra precaution, the Orange County Health Care Agency(OCHCA) closed the beaches until test results of beach water were confirmed to be safe. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Director of Technical Services, Bob Ghirelli, introduced Jennifer Cabral, Senior Public Information Specialist, who updated the committee on the pharmaceutical outreach program. The activities are designed to diminish the dumping of pharmaceuticals in the sewer system, including surveys, distributing stuffers, table cards, and posters to the 430+ pharmacies located in the service area; as well as a press release, and TV news coverage. Minutes of the Operations, Maintenance and Technical Services Committee May 3, 2006 Page 4 (12) REPORT OF DIRECTOR OF REGIONAL ASSETS AND SERVICES The Director of Regional Assets and Services, Nick Arhontes, briefly reported that the State Water Resources Control Board adopted new statewide sewer system regulations and new web-based sewer spill reporting requirements. A staff report comparing regulation requirements will be submitted to the committee. Nick also reported on Staff working with Finance to finalize repair costs to invoice GMR for the SARI line damage, as well for the Newhope Trunk damage. Staff will conduct an information briefing and a tour of the Buena Park facilities prior to the 5 Fwy. widening project. Nick also reported that an offer may be presented by a broker for a possible North County Yard. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15) FUTURE MEETING DATES The next Operations, Maintenance and Technical Services Committee meeting is scheduled for June 7, 2006, at 5 p.m. (16) CLOSED SESSION There was no closed session. (17) ADJOURNMENT The Chair declared the meeting adjourned at 6:40 p.m. Submitted by: Yv_ Lilia Kovac Committee Secretary Operations, Maintenance and Technical Services H:Wept\agendalOWSl2006105061050306 draft OMB Mmutmdw OMTS COMMITTEE meedug Date TDBd.of Dlr. 05/03/06 05/29/Ofi AGENDA REPORT Item Number Rem Number OMr506626 13 b Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Deirdre Bingman Principal Environmental Specialist Michael Moore, Manager of Environmental Assessment Division SUBJECT: REVISED RESOLUTION ON BIOSOLIDS RECYCLING GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 06-10, In Support of Biosolids Recycling, and Repealing Resolution No. OCSD 02-18. SUMMARY Minor word changes are being submitted for the Board's consideration in adopting a revised Biosolids Recycling Resolution to address legacy language that focuses solely on agricultural biosolids recycling options. The District is now pursuing several biosolids recycling options including compost and energy that are not specifically "agriculturally- based." The proposed language changes in the resolution will conform to the recommendation of the District's Long-Range Biosolids Master Plan and management contracts. PRIOR COMMITTEE/BOARD ACTIONS 1. September 2002: Adopt Resolution No. OCSD 02-18, in Support of Biosolids Recycling, and repealing Resolution No. OCSD 00-05. 2. April 2000: Adopt Resolution No. OCSD 00-05, Declaring Support for Biosolids Application, and Repealing Resolution No. OCSD 99-03. 3. April 1999: Adopt Resolution No. OCSD 99-03, Declaring Support for Biosolids Application. PROJECT/CONTRACT COST SUMMARY There is no cost associated with this update to the biosolids resolution language. This language is consistent with the Long-Range Biosolids Management Plan that was received and filed by the Board in December 2003. Dea, D:� enema and enebpeaemac`ai senlndskT F«aw im.na F1WvX.Vemem ixnl ebeomedac Revised: 04118/06(wh) Page 1 BUDGETIMPACT ® This item has been budgeted. (Line item: N/A) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION When the District's current Resolution No. OCSD 02-18 on Biosolids Recycling, was adopted in September 2002, the District's biosolids management contracts were focused on beneficially reusing its biosolids with land application options for non-food crops. As a result, there is legacy language in the Resolution on Biosolids Recycling from 2002 that makes reference to the District "promoting the recycling of biosolids to nontable- food crop agricultural land." Staff is proposing to amend the Resolution language to broaden the range of markets and technologies, while still maintaining the beneficial reuse emphasis of the original policy resolution. Other minor language changes include references to the: • Importance of biosolids research, • District's use of compost and energy as management options, • Importance of energy as a biosolids management option • District's use of National Biosolids Partnership's National Manual of Code of Good Practice for Biosolids, and • Consolidation of paragraphs referencing management practices. Staff is submitting the updated resolution for the Board's adoption. ALTERNATIVES If the current resolution is not amended, there would be a conflict between the existing biosolids management contracts and the Resolution on Biosolids Recycling. This could be identified as a nonconformance during the biannual external audit of the District's Environmental Management System for Biosolids. CEQA FINDINGS N/A ATTACHMENTS Resolution No. OCSD 06-10 M. L"Ltr ...n8 Sel,M.ITempauy W.Flb.WLI(8M.1]0 Sb M-Ox ReNsed: Oe/leroe(wfi) Page 2 , F RESOLUTION NO. OCSD 06-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT IN SUPPORT OF BIOSOLIDS RECYCLING AND REPEALING RESOLUTION NO. OCSD 02-18 WHEREAS, biosolids are the solid product of municipal wastewater processing which have been extensively and properly treated so that they may be safely recycled to amend soil, produce energy, create compost, or other beneficial uses, rather than take up limited landfill space in California; and WHEREAS, the Orange County Sanitation District("District") produces biosolids at its two wastewater treatment plants; and WHEREAS, the United States Environmental Protection Agency (EPA) has adopted detailed and scientifically sound rules regulating the production and use of biosolids [40 Code of Federal Regulations Part 503 (Part 503 Rule)]. These Regulations assure the safe and beneficial use of biosolids when properly managed in accordance with the rules; and WHEREAS, the District supports ongoing research regarding emerging biosolids-related questions including studies performed by the EPA, Water Environment Research Foundation, and the National Science Foundation to ensure the continued safety of biosolids recycling practices; and WHEREAS, in order to promote a standard of excellence and to assure for the proper oversight, the District commits to implementing the biosolids management practices found in the California Water Environment Association's (CWEA) Manual of Good Practice for Agricultural Land Application of Biosolids and the National Biosolids Partnership's National Manual of Code of Good Practice for Biosolids, as a basis for its Biosolids Environmental Management System; and WHEREAS, the application of high quality biosolids on nonfood products is safe, provides beneficial nutrients to the soil when applied at agronomic rates, and is consistent with the environmental application of fertilizers, pesticides, and herbicides on agricultural lands; and WHEREAS, the production of energy products from biosolids is a safe and environmentally-friendly option for recycling District's biosolids and ensures continued diversity of the District's biosolids management options for continued sustainability; and WHEREAS, it is the law of the State of California that municipalities divert recyclable materials from disposal in landfills in order to achieve a 50% waste diversion by Year 2000 (Assembly Bill 939); and WHEREAS, in order to maintain the highest quality biosolids for beneficial use, the District maintains a comprehensive Industrial Waste Pretreatment and Source Control Program, which has received the United States Environmental Protection Agency's award for excellence; and WHEREAS, the District maintains a diverse program of biosolids management, including the application to nontable-food crop agricultural land in Southern California, consistent with the District's mission to protect public health and the environment through excellence in wastewater systems, WHEREAS, the District promotes the recycling of biosolids in a manner that is safe, environmentally beneficial, and is sensitive to the needs of the communities involved. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER. Section 1. The District declares its full support for the recycling of biosolids. Section 2: The District will use on its site, and encourage its Member Agencies to use at their facilities, compost made using District biosolids. Section 3: The District supports the proper management and oversight of this practice in accordance with the United States Environmental Protection Agency's Part 503 Rule and the CWEA Manual of Good Practice. Section 4: Resolution No. OCSD 02-18 is hereby repealed. Section 5: This Resolution shall become effective Immediately upon its adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors held on the 24th day of May, 2006. Chair ATTEST: Board Secretary OMTS COMMITTEE Meeang Dale To Bd.of Dir. 05(03ro6 05/24/06 y AGENDA REPORT 1tem N~ toen Number OMTS06-27 13(c) Orange County Sanitation District FROM: Robert P. Ghirelli, D.Env., Director of Technical Services Originator: Mark Kawamoto, Engineer SUBJECT: FATS, OILS, AND GREASE (FOG) CONTROL STUDY, PHASE II - FINAL REPORT GENERAL MANAGER'S RECOMMENDATION Receive and file the FOG Control Study, Phase II - Final Report, dated March 2006, prepared by Environmental Engineering and Contracting, Inc. SUMMARY In July 2003, the Board of Directors approved a contract with Environmental Engineering and Contracting, Inc. (EEC) for an amount not to exceed $300,000 to conduct Phase II of the FOG Control Study. The purpose of the study was to field test 3 technologies that reportedly are alternatives to conventional grease interceptors, sewer line cleaning, and inspections of conventional grease interceptors. In April 2004, the Board of Directors adopted a resolution accepting a $250,000 Proposition 13 Watershed Protection Grant to fund the study. The grant required that a final report for the study be filed with the State Water Resources Control Board by March 31, 2006. The study found unfavorable results for sewer line-applied additives, mixed results for FSE-applied additives, promising results for grease removal devices when risks are properly mitigated, and favorable results for interceptor monitoring devices. PRIOR COMMITTEEIBOARD ACTIONS April 24, 2002— (1)Authorized development of a Fats, Oil and Grease (FOG) Control Program (2) Authorized staff to develop a funding program with the County of Orange and cities within the District's jurisdiction for development of the FOG Control Program; (3)Approved a contract with EEC to conduct a study for Phase I of the FOG Control Program for an amount not to exceed $268,000; and (4) Established a budget of $150,000 for development of OCSD's FOG Control Program. July 23, 2003 - (1) Received and filed Phase I FOG Control Study Report Executive Summary; (2) Approved a contract with EEC to conduct Phase II of the FOG Control Study, for an amount not to exceed $300,000; (3)Authorized the District to enter into agreements with the County of Orange and the Co-Permittees for funding of the Phase II of the FOG Control Study, in a form approved by General Counsel. C Wcunnn,sstl SrN^OF�e,o[larel$ennqlTxryaruy Imam,F..MK7ft—IN,)FOG. e«,.b ovame Page 1 April 28, 2004 -Adopted a resolution accepting the $250,000 Proposition 13 Watershed Protection Grant for Phase II of the FOG Control Study and authorized the General Manager to enter into an agreement with the SWRCB for the grant. r PROJECT/CONTRACT COST SUMMARY On July 23, 2003, the Board of Directors approved a contract not to exceed $300,000 to conduct the study. The total cost of the project was $299,937. OCSD received a Proposition 13 grant for $250,000. The total cost of the project after the grant is $49,937, which is 17% of the original amount. This amount was cost-shared by 24 of the 26 Co-Permittees. BUDGETIMPACT ® This item has been budgeted. (Line item: 138) ❑ 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 California Regional Water Control Board, Santa Ana Region (Regional Board) issued Order No. R8-2002-0014, General Waste Discharge Requirements (WDR), requiring northern Orange County sewering agencies under the Regional Board's jurisdiction (Co-Permittees) to implement FOG Control Programs by December 30, 2004. OCSD was named one of the Co-Permittees and designated as facilitator for the regional effort to coordinate development and implementation of the programs. Following the promulgation of the WDR, the Co-Permittees determined that the interests of the county would best be met by conducting a comprehensive regional FOG Control Study to establish the technical, administrative, and ordinance building blocks of such a program. The Co-Permittees agreed to conduct the study in two phases. OCSD Source Control Division administered the study on behalf of the Co-Permittees. Phase I ended in May 2003 and resulted in a Phase I report, which identified 12 programmatic building blocks for an effective FOG Control Program. The study also identified three promising FOG control technologies to be addressed in Phase II of the study. In July 2003, the Board of Directors 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. In February 2004, OCSD was awarded a $250,000 Proposition 13 Watershed Protection Grant for the Phase II Study. On April 28, 2004, the Board of Directors passed Resolution No. OCSD 04-11 accepting the grant. A consultant was hired to conduct a scientific field test of the technologies and report on the results. C LbcumwYavM$eM1Ma\axaK�$Nngf\Tenpaay IMs,M Fibf'ALgBV,em 1]�CI FOG Erc Arab o,�. Page 2 In March 2006, a Technical Advisory Committee (TAC), consisting of representatives from the Regional Board, Irvine Ranch Water District and the City of Orange, reviewed ``+ the Final Report. Key findings from the report are: General Characteristics Observed with Additives • In this study, 12 different biological additives were studied. Biological additives are bacterial products that are reported to "eat" FOG, thereby preventing clogs in the sewer. This technology is similar to OCSD's use of bacteria in our treatment processes to digest organic matter. • None of the 12 additives tested appeared to disperse the FOG in the sewer line. This is a positive outcome because tt answers the concern expressed by some sewer professionals that the additives pass the problem down to the next sewer line. • Based on testing of the oxygen uptake rate in our activated sludge treatment facilities, the additives were not toxic to the activated sludge treatment processes utilized at OCSD. Sewer-Line Applied Additives (applied in the sewer downstream from food service establishments (FSEs)) • Based on closed-circuit television (CCTV) images taken after the tests, the Sewer Line-applied additives tested were not effective in preventing FOG accumulation. However, there were a couple of evaluations where the accumulation was less. • Improving sewer line cleaning practices through the use of post-cleaning CCTV monitoring appears to be a more logical focus for sewering agencies until Sewer Line-applied additives are shown to be more effective. FSE-Applied Additives (applied at the FSE through drains) • Four (4) of the 5 evaluations indicated encouraging results, because there was less FOG accumulation at the end of the FSE's lateral and in the hot spot. • Although each FSE was identified by a sewering agency as a significant FOG source, it was impossible to determine if the less-than-anticipated FOG accumulation was due to the additive, improved kitchen best management practices (BMPs), or both. FSEs that might have been required to install a conventional grease interceptor had an incentive to minimize FOG discharges, knowing that their sewer lines were being monitored. • Nevertheless, encouraging results at 4 FSEs provided some evidence that FSE- applied additives could be considered as an alternative to the requirement to install a grease interceptor at FSEs that cannot install a grease interceptor, due to factors such as space limitation and lack of slope. • If an FSE requests to use an FSE-applied additive because they cannot install a conventional grease interceptor, an agency may consider approving the request on a conditional basis. The agency would need to monitor the effectiveness of c Nccu Is vm selling64emKrca'.SenLp:rcempa,a,y IW. MFHWOL emem 13 FOG eoc R.". miwms Page 3 the additive (and/or the kitchen BMPs) as was done in the Study using CCTV. - The conditional variance can be revoked if an accumulation of grease is identified through CCTV evidence in the sewer system downstream of the FSE. Non-Conventional Grease Traps (or Grease Removal Devices, GRDs: • Despite the GRD's shorter flow retention time than a conventional grease interceptor, the GRD's ability to remove FOG from the wastewater is encouraging based on the floating FOG removal results from well-maintained units. These results are specific to well maintained units and for the drains that discharged to the GIRD. • GRDs may work effectively on the fixtures they are properly connected to, as long as they are properly sized, installed, and maintained. However, inspectors approving GIRD installations must ensure that all GRDs are sized and installed correctly and that the isolation-type GRDs are connected to all potential significant grease waste drains. In addition, frequent maintenance inspections by a regulatory agency will be required to ensure proper maintenance. • Each agency will need to evaluate the inspection requirements and associated agency costs related to GRDs. The agency will also need to evaluate the potential risk of a GIRD providing inadequate FOG control, which may be due to poor maintenance or not being installed on all of the grease waste drains. • In general, GRDs pose a higher risk than conventional grease interceptors due to the maintenance and installation issues discussed in this report. However, if these risks can be sufficiently mitigated or managed, GRDs may have a role in Orange County FOG Control Programs as an alternative to a conventional grease interceptor at certain FSEs. The risks associated with GRDs and the potential mitigation measures are described in detail in the report. • Due to the risks associated with GRDs, it is recommended that the GIRD should be approved only as part of a conditional variance. The conditional variance can be revoked due to a track record of improper maintenance or if an accumulation of grease is identified through CCTV evidence in the sewer system downstream of the FSE. If designed properly with an effective inspection and enforcement strategy, the FSE will be motivated to perform the proper GIRD maintenance. Interceptor Monitoring Devices (IMDs): • The technology was generally accurate and durable for at least 6 months. This data suggests that this technology can be useful for the purposes of monitoring an interceptor to determine when it would need to be pumped, if it was pumped, and if it was pumped completely. • Based on the data evaluated in the Study, IMDs should be seriously considered for use in Orange County FOG Control Programs because of their potential monitoring and enforcement benefits, provided they are inspected for proper installation, calibration, and accuracy over time. C:Nxummt d0 In09mm�15p ,,,T—,,H—.F11.1pM.I31 )FOG.Eec R_.. 01N'W Page 4 • Agencies should not view IMDs as a technology that will completely remove the need for inspection of conventional grease interceptors. Verification of the `+ accuracy of any IMD is recommended within 3 months after installation and a minimum of once per year by a qualified inspector or technician. • If solids monitoring is important, then an IMD that is capable of measuring the settled solids in an interceptor is preferable. Monitoring the solids in the interceptor can be important to prevent clogging the middle tee of the interceptor, solids pass through, and hydrogen suede generation caused by decaying solids. NEXT STEPS • As with Phase I, each Co-Permittee City/General Manager will be sent a copy of the Executive Summary and the full report will go to the staff contact directly involved with the FOG Control Program. The full report and Executive Summary will also be posted on OCSD's website. • OCSD will prepare guidelines on how it will use the Phase II Study results in its area of jurisdiction and will share the guidelines with the other Co-Permittees. • Based on each Co-Permittee's site-specific conditions and the Phase II Study results, each Co-Permittee can make appropriate decisions on tailoring their FOG ordinances and programs, if necessary, to allow usage of the additives, grease removal devices, and interceptor monitoring devices. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS Executive Summary available upon request. For a copy, contact Mark Kawamoto at (714) 593-7424. cmm,mewm sew,o�s MSNTm„pnvY ld. F�QLM INc)roc m w.•,a 01 w Page 5 MINUTES OF PLANNING, DESIGN, AND CONSTRUCTION COMMITTEE MEETING Orange County Sanitation District Thursday, May 4, 2006, at 5 p.m. A meeting of the Planning, Design, and Construction Committee of the Orange County Sanitation District was held on Thursday, May 4, 2006. at 5 p.m., in the Sanitation District's Administrative Office. (1) ROLL CALL The roll was called and a quorum declared present, as follows: PDC COMMITTEE MEMBERS: Directors Present: Staff Present: Tod Ridgeway, Chair Jim Ruth, Interim General Manager Norm Eckenrode, Vice Chair David Ludwin, Director of Engineering Steve Anderson, Board Chair Tod Haynes, Construction Manager Charles Antos Matt Smith, Engineering Manager Alberta Christy Jennifer Cabral, Public Information Specialist Lary Crandall Penny Kyle, Committee Secretary Doug Davert Dave May Roy Moore Jeff Reed Harty Sidhu Jim Buror Hardat Khublall Directors Absent• Jim Fenyman, Board Vice Chair Others Present: Patsy Marshall Dave Kendig (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR Committee Chair Tod Ridgeway did not make a report. (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, did not make a report. r PDC Committee Minutes �( Page 2 May 4, 2006 (6) REPORT OF THE DIRECTOR OF ENGINEERING David Ludwin, Director of Engineering, provided brief updates on the Bushard Trunk Sewer project and pipe procurement and the Santa Ana River Interceptor line. (7) REPORT OF GENERAL COUNSEL General Counsel was not present. (8) CONSENT CALENDAR a. Approve minutes of the April 6, 2006 Planning, Design, and Construction Committee Meeting. b. CHANGE ORDER REPORTS Action on change orders that require PDC Committee or Board approval will be taken separately. There are four changes orders this month for PDC approval. C. PSA AND AMENDMENT REPORT Action on PSAs and Amendments that require PDC Committee or Board approval will be taken separately. There were no PSAs and no Amendments approved by the General Manager from March 24 through April 20, 2006. d. FACILITIES ENGINEERING CONSULTANT ACTIVITY REPORT This report is an information only item. e. SANTA ANA RIVER INTERCEPTOR RELOCATION AND PROTECTION STATUS REPORT This is an information only item. f. BUSHARD TRUNK SEWER REHABILITATION REPORT This is an information only item. MOTION: It was moved, seconded, and duly carded to approve the recommended actions specked as Items 8(a)through (f). END OF CONSENT CALENDAR (9) INFORMATIONAL ITEMS a. PDC06-35 FY 2006-07 and 2007-08 District Budget Lorenzo Tyner, Director of Finance, briefly reviewed highlights and updates to the proposed budgets scheduled to be adopted by the Board of Directors at the June 28, 2006 meeting. PDC Committee Minutes Page 3 May 4, 2006 b. PDC06-36 MacArthur Pump Station Rehabilitation Project, Contract No. 749 Jim Burror, Engineering Supervisor, provided a brief overview of the Initial Study/Negative Declaration for the project. (10) ACTION ITEMS a. PDC06-37 MOVED, SECONDED AND DULY CARRIED: (1)Ratify Change Order No.1 to Plant 2, Underground Storage Tank Rehabilitation at Headworks Electric Power Building B, Job No. FE05-34, with Western Pump Inc., authorizing an addition of$10,723, increasing the total contact amount to $139,168; and (2)Accept Plant 2, Underground Storage Tank Rehabilitation at Headworks Electric Power Building B.Job No. FE05-34, as complete, authorizing the Final Closeout Agreement. This item is for PDC approval per Delegation of Authority Resolution No. OCSD 04-08. b. PDC06-38 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to ratify Change Order No. 26 to Primary Clarifiers 16-31 and Related Facilities, Job No. P11-37,with Margate Construction, authorizing an addition of$272,749 and 142 calendar days, increasing the total contract amount to$72,361,599. C. PDC06-39 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to ratify Change Order No. 2 to Headworks Improvements at Plant No. 2,Job No. P2-06,with J.F. Shea Construction, Inc.,authorzing an addition of$356,647, increasing the total contract amount to $192,724,912. Director Davert abstained. d. PDC0640 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to (1)Approve a budget increase of$1.251,353 for a total budget of$11,470,885 for Secondary Treatment Facilities Process Upgrades at Plant No.2, Job No. P247-3;and (2) Ratify Change Order No. 8 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P247-3, with Morrow-Meadows Corporation, authorizing an addition of$1,251,353 and a time extension of 17 calendar days, increasing the total contract amount to$7,262,408, and extending the contract completion to February 20, 2006. e. PDC0641 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve a Professional Services Agreement with Malcolm Pimie, Inc. providing for engineering services for the Rocky Point Pump Station Replacement, Contract No. 5-50, for an amount not to exceed $2,475,973. f. PDC0642 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to(1)Approve Amendment No. 1 to the Professional Design Services Agreement with Malcolm Pimie, Inc.for preparation of construction documents and to provide construction support services for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, providing for additional engineering and construction support services at no additional PDC Committee Minutes Page 4 May 4, 2006 cost due to the savings realized during the preparation of the Preliminary Design Report;and (2)Approve a reduction of$638,505 to the agreement reducing the total amount to not exceed $1,580,825. g. PDC0643 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No.2 to the Professional Services Agreements with Geo-Matrix Consultants Inc., I(leinfelder Inc., and Smith- Emery Laboratories, and Amendment No. 3 to the Professional Services Agreements with Ninyo & Moore Geotechnical and Environmental Sciences Consultants to provide for materials testing, inspection,and geotechnical engineering services, Specification No. PSA-2003-175,for a one-year period for an amount not to exceed $150,000 for each agreement ($600,000 total). h. PDC0644 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 2 to the Professional Services Agreements with Forked Engineering&Surveying, Inc., MDS Consulting, RBF Consulting, and Amendment No. 3 to the Professional Services Agreement with Bush &Associates Inc.to provide for surveying services for capital projects, Specification No. PSA-2003-176,for a one-year period for an amount not to exceed $150,000 for each agreement($600,000 total). Director Davert abstained. i. PDC0645 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 3 to the Professional Services Agreement with Electrical Reliability Services, Inc. and Amendment No. 2 to Professional Services Agreement with Hampton-Tedder Electric Inc. to provide for electrical acceptance testing services, Specification No. PSA-2003-177, for a one-year period for an amount not to exceed $150,000 for each agreement($300,000 total). j. PDC0646 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 7 to the Professional Service Agreement with Tran Consulting Engineers for additional construction support services for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21, for an additional amount of$30,688, increasing the total amount not to exceed$644,983. k. PDC0647 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve funding for four new Cooperative Projects with the Cities of Huntington Beach, Newport Beach, Placentia, and Santa Ana,for a total amount not to exceed$1,515,297, as recommended by the Cooperative Projects Grant Committee. I. PDC0648 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to consider the following actions relating to the purchase of certain real property interests in connection with Replacement of Bitter Point Pump Station, Contract No. 549: y PDC Committee Minutes Page 5 May 4, 2006 (1)Approve a Purchase and Sale Agreement with Horizontal Development LLC regarding an approximate one-third acre parcel, in an unincorporated area that is located near the Banning Ranch Pacific Coast Highway entrance for an amount not to exceed $160,000, in a form approved by General Counsel; (2)Authorize the General Manager to execute all Deeds and other evidences of title to the parcels of property, subject to the Purchase and Sale Agreement; (3)Authorize the General Manager to execute any and all other instruments related to the transaction with Caltrans for an amount not to exceed $40,000, in a forth approved by General Counsel; (4)Approve an agreement with the City of Newport Beach to quitclaim the Bitter Point Pump Station property in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49, for an amount not to exceed $90,000, in a form approved by General Counsel; and (5)Authorize the General Manager to execute any other agreements necessary to acquire said property for an amount not to exceed $20,000. M. PDC06-49 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Infrastructure&Technology Group, Inc., and CH2M Hill, Inc., authorizing: (1) Establish an amount not to exceed $14,999,656 for year five (Fiscal Year 200"7)of the five-year contract; and, (2) Increase the total amount of the five-year contract to an amount not to exceed $60,092,039. n. PDC06-50 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to approve Change Order No. 1 to Bushard Trunk Sewer Rehabilitation,Job No. 1-2-4A, with Mike Bubalo Construction Company, Inc., authorizing a contract reduction and an adjustment of contract length. 0. PDC06-51 Recommend to the Board of Directors to authorize execution of agreement with the Irvine Community Development Company re relocation of SARI Line and Mountain Park Sewer Line, in a form approved by General Counsel. MOVED, SECONDED AND DULY CARRIED: PDC Committee directed staff to meet with the City of Anaheim, and the Irvine Community Development Company to determine the maintenance and liability issues in connection with a temporary sewer connection permit, and to return to the PDC Committee for consideration. (11) CLOSED SESSION There was no closed session. (12) OTHER BUSINESS. COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. PDC Committee Minutes l Page 6 May 4, 2006 (13) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15) FUTURE MEETINGS DATES The next Planning, Design, and Construction Committee Meeting is scheduled for Thursday, June 1, 2006 at 5 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6:55 p.m. Submitted by: Penny M. yle Committee Secre H:Xdep6agendaVDC12006\Mlnutest040606 PDC Minutes.dw r PDC COMMITTEE Meebny Dale To9d.of Dir. 05/04106 05/24�06 AGENDA REPORT Item Number 10em Number PDO06-38 1Mb1 Orange County Sanitation District Primary Treatment FROM: David Ludwin, Director of Engineering Originator: Michael Puccio, CIP Project Manager SUBJECT: PRIMARY CLARIFIERS 16-31 AND RELATED FACILITIES, JOB NO. P1-37 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 26 to Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37, with Margate Construction, authorizing an addition of$272,749 and 142 calendar days, increasing the total contract amount to$72,361,599. SUMMARY • Job Number P1-37, Primary Clarifiers 16-31 and Related Facilities, includes the construction of 16 new primary clarifiers with all support equipment, improvements to existing Primary Clarifiers 6-15, and improvements to Primary Clarifiers 1-5. • Brown and Caldwell prepared the plans and specifications and the contract was awarded to Margate Construction on October 24, 2001, • This change order includes 19 items of work and one credit item. There are 12 non- reimbursable design errors and two reimbursable design errors associated with this change order. There is a 142-day time extension associated with this change order. Liquidated damages on this project are $3,000 per day and there are no bonus provisions. The project is 92%complete. • The Sanitation District is seeking reimbursement from the design consultant, Brown and Caldwell, for two items that have been classed as reimbursable design errors(Items 11 and 16). PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on October 24, 2001. Please refer to the attached Change Order Status Report for more information on previous change orders. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 70,366,000 Previously Authorized Changes $ 1,722,850 This Change Order(Add) $ 272.749 Change Orders to Date $ 1,995.599 Percentage Increase to Date 2.83% Amended Contract Price $ 72,361,599 1 BUDGETIMPACT , ® This Rem has been budgeted. (Line Rem: Section 8, CIP, P1-37, Page 52) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Contract Schedule Contract Start Date January 7, 2002 Original Contract Completion Date November 7, 2005 Total Number of Change Orders to Date 26 Current Contract Completion Date February 15, 2007 Actual Completion Date N/A Days Subject to Liquidated Damages 0 Change Order No. 26 Content Item Description Amount Days Type No. Nonreimbursable 1 Add Piles and a Grade Beam at 81,826 0 Design Error Existing Main Gallery Wall-Mounted Transformer Structural Nonreimbursable 2 Support 1,242 0 Design Error Add Larger Door at Polymer Electrical Nonreimbursable 3 Room 10,417 0 Design Error Existing Main Gallery Additional Grade Nonreimbursable 4 1 Beam Removal 77,651 132 1 Design Error Provide Remote Control Block for Air Nonreimbursable 5 Operated Valves 9,711 0 Design Error Provide Grade Beam Termination Nonreimbursable 6 Dowels 1,305 0 Design Error Repair of Headworks Splitter Box No. 3 Unknown Conditions 7 30,934 0 Provide Housekeeping Pad for CRISP Staff Requested Design 8 Work Station 595 0 Change Nonreimbursable 9 Epoxy Influent Channel Column 12,130 0 Design Error Dowels Grade Beam Epoxy Dowels at Existing Nonreimbursable 10 Expansion Joints 1.473 0 Design Error Reimbursable Design 11 Mixer Motors Overload Breakers 604 0 Error Staff Requested Design 12 Temporary Polymer Bypass Piping 2,017 1 Change Existing Primary Clarifier Grade Beam 13 and Column Rebar Changes 6,287 0 Unknown Conditions Connection Details between Columns Nonreimbursable 14 and Beams 3,096 0 Desi n Error 2 L Polymer Building Public Address Nonreimbursable 15 System Wring 1,374 0 Design Error Modify Reinforcing Steel at Existing Reimbursable Design 16 Gallery Intersection 2,506 0 Error Other 17 Mini-Piling Revised Testing Program 0 10 Primary Clarifier 3, 4, 5 Elevated Nonreimbursable 18 Aluminum Cover at Center 28,160 0 Design Error Primary Clarifier 3, 4, 5 Coating of New Nonreimbursable 19 Concrete Modfications 22 421 0 Des' n Error Credit for Deletion of Extruded 20 Polystyrene Fill (21,000) 0 Other Total Change Order $272,749 142 Item 1. This item modifies the stab connection and provides three additional piles under the slab of the existing main gallery. This change was required by the Sanitation District's design consultant, Brown and Caldwell, in order to provide additional structural support. Item 2. This item increases the structural support capacity for the wall-mounted electrical transformer located in the existing Primary Clarfiers East Control Building. The support detail on the plans was designed for solid concrete walls, but the wall to which the transformer is mounted is a hollow CMU (concrete block)wall. Item 3. This item increases the size of the existing door and jamb on the west end of the Polymer Facility electrical room. The plans require the removal of existing equipment and the installation of new equipment which is too large to fit through the existing door opening. Item 4. This item provides compensation for demolition and removal of ten existing grade beams located in the existing main gallery. The contract demolition drawings failed to accurately reflect the as-built drawings and did not identify the grade beams that require demolition. These grade beams must be demolished in order to install the new grade beams engineered to carry the load of the new Center Feed Channel. Item 5. This item provides for a remote contact block for 80 air operated valves. As shown in the contract documents, feedback to the remote input causes erroneous status indication. To correct this condition, the "Local-Remote" selector switch is being fitted with an additional contact block to ensure isolation of the remote status signal. Item 6. This item provides for the procurement and installation of dowels at the north/south ends of the new grade beams. The contract documents did not show the connection details of the new north/south grade beams to the existing east/west grade beams. Item 7. This item provides for repair of the expansion joint on the headworks splitter box No. 2 and No. 3 so that the Contractor could perform contract work. This was not part of the original project scope and was an unknown condition. Item 8. This Rem adds a concrete housekeeping pad to support the CRISP work station that will be installed on the west side of the new main gallery. Installing a housekeeping pad is needed to prevent the CRISP work station from getting wet and damaged from the wash water. 3 Item 9. This item provides for labor and epoxy grout material to drill and place three concrete , reinforcing steel dowels at each of the 20 columns in the existing main gallery. The reinforcing steel dowels are required for widening the columns needed to support the new center feed channel. This change corrects the contract drawing omission and compensates the Contractor for the additional work. Item 10. This item provides for epoxy resin material and labor to drill and install epoxy dowels at eight locations where the new north/south grade beams terminate at existing expansion joints. The contract drawings failed to include a detail showing how the new north/south grade beams terminate at the existing floor slab expansion joints. Item 11. This Rem provides two new sets of overload breakers for mixer motors. Electrical drawings incorrectly stated the size of the mixer motors as 1-Hp instead of the actual 10-Hp. Item 12. This Rem provides for installing a temporary polymer piping bypass so that the new polymer system can be operated during the interim time period before the Center Feed Channel is operational. The completed design introduces polymer at the new cutthroat flumes leaving the center feed channel. During the construction of phase 2A and 2B, the center feed channel is not in service and polymer must be introduced at the Clarifier 6-15 splifter box. This change added piping and valves to allow operators the ability to use the splifter box now and later switch to the center feed channel when R becomes operational at the completion of phase 2B. Item 13. This item includes all the rebar changes needed for the grade beams and columns at the south end of the new main gallery. These changes were needed to address column geometry differences, as well as coordination with the existing grade beam locations. Item 14. This item modifies the connection details between the new widened columns and roof support beam at the Clarifier 6-15 main gallery intersection. The structural drawings were found to be in error and following them would have severely weakened the existing influent channel structure. This item reoriented the concrete beam and added additional reinforcing steel. Item 15. This item provides labor and material to reconnect the Polymer Building Public Address(PA) system wiring. The contract drawings did not address any of the wiring for the existing PA speakers. Item 16. Due to design dimensional errors, the reinforcing steel running east to west was fabricated too short. This Rem corrects these dimensional errors and provides for cuffing the supplied steel and adding splice bars to make up the dimensional difference. Item 17. This item provides the contract time extension associated with Item 10 of previous Change Order 24. A time extension was not included with the original change order because the schedule impact was not known at that time. Item 18. This item raises the cover sections over the center feed mechanism on Primary Clarifiers 3, 4, and 5 to provide clearance. The center mechanism is higher than the elevation of the originally proposed flat cover. The contract design drawings did not indicate any conflict. This change resolves the discrepancies. Item 19. This item provides for coating the new concrete pilasters for Primary Clarifiers 3, 4, and S. To prevent deterioration caused by the harsh primary clarifier process environment, the new concrete must be coated. This change will provide the necessary protective coating. 4 Item 20. This item provides for a credit to the Sanitation District for deleting the requirement for extruded polystyrene fill at the Primary Clarifiers 6-15 influent splifter box. The Sanitation District's design consultant, Brown and Caldwell, has reviewed the need for the polystyrene fill and determined that it was acceptable to delete it provided the shoring required for construction remain permanently in place. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project was included in the Strategic Plan EIR that was 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 Performance Report 4. Change Order 5. Location and Photo Description of Change Order MID el:kf H1dept'agendatBoard Agenda Reports=06 Board Agenda&Agenda ReportsW508\Item 14(b).P137.dx 5 BUDGET INFORMATION TABLE Primary Clarifiers No. 16-31 and Related Facilities Job No. P1-37 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED ESTIMATED PROJECTIPHASE. AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED AUTHORIZATION TOTAL EXPENDITURE TO :EXPENDED BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION DATE TO.DATEI%) Phase 1 -Project Develo meat $ 173,000 $ 173,000 $ 173.000 $ 173,000 $ 173.000 100% Phase 2-Preliminary Design $ 317.000 $ 317,000 $ 317000 $ 317.000 $ 317.000 100% Phase 3-Des' n $ 4,595,000 $ 4,595,000 $ 4,595.000 $ 4595,000 $ 4,626,D92 101% Phase 4-Constmction $ 81.974,068 $ 272,749. $ 82,246,817 S 81,928,292 $ M.749, $ 82,201,041 $ 76,411,998 93% Phase 5-Comrnissioning $ 398000 n, �rs41 '.: $ 396000 $ 396000 $ 396,000 $ 115,812 29% Phase 6-Mseout $ 61000 T^` S 61,000 ". $ 61000 ' �'.' $ 61.000 $ 11787 19% Phase 7-Contingency $ 2.243932 $ _ 749 $ 1971,183 Is PROJECT TOTAL $ - $ 89,760,000 $ $ 89,760,000 c. $ 87,470,292 $ 272.749 $ 87.743.041 $ 61.655,689 93% Reimbursable Costsf x PROJECT NET $ - $ 89,7600W . '`-. w •- $ 89.760000 $ 87.470292 ,.$, `s07 ,749, $ 87,743,041 $ 81,855,689 93% PSA/Contract Desi nPSA 1 $ 6,198861 1 $ 6.198861 $ 6.198.861 $ 6.198.861 $ 5,994,554 1 �7% Construction Contract $ 72,088850 $s�� 749` $ 72,381589 is $ 72,088,850 72,361,599 $ 66,DB3,086 91% CHANGE ORDER PERFORMANCE REPORT PRIMARY CLARIFIERS 16-31 AND RELATED FACILITIES JOB NO.P147,CHANGE ORDER NO.26 Contractor:MARGATE CONSTRUCTION Project Type:PLANT EXPANSION Design Consultant:BROWN&CALDWELL Contract%Complete: 91.81% Original Contract Price: $70,366,000 CHANGE ORDER TYPES TRACKED INFORMATION ONLY Staff Requested Reimbursable Design Non-Reimbursable Subtotal CO Typ» Unknown ConditionCMnge Emrs Design Errors Tracked' Other Total Change Orders to $700944 1.00% s8,204 0.01% $180.38g 0.26% $033,204 1.33% $1.828.741 2.00% ($105,891) -0.15% $1,722,860 2.45% Date Change Orders this Period $6,287 0.01% $2,612 0.00% $3,110 0.00% $200,225 0.28% $212,234 0.30% $30,934 0.04% $243.168 0.35% Change Order Total $707,231 1.01% $10,818 0.02% $189,499 0.27% $1,133,429 1.61% $2.040,975 2.90% ($74,957) -0.11% $1,966,018 2.79% 'The Change Order Management Plan tracks the preceding four change order types EDM6'.003806342 Page 1 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Twenty Six(26) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. Pt-37 Consultant: Brown and Caldwell Amount of this Change Order (Add)(Dsdust) $272,749.00 In accordance with contract provisions, the following changes in the contract and/or contract work are hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. ITEM 1 —ADD PILES AND A GRADE BEAM AT EXISTING MAIN GALLERY This item modifies the slab connection, and provides three additional piles under the slab of the existing Main Gallery. The work included demolition of existing concrete, excavation, and 100 yards of additional concrete and reinforcing steel required for installation of a new grade beam. This item provides required additional structural support necessary for the new Centerfield Channel extension which was not provided for in the design. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements(Reference FCO-P137-109). ADDED COST THIS CHANGE ORDER ITEM: $81,826.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 2—WALL MOUNTED TRANSFORMER STRUCTURAL SUPPORT This item increases the structural support capacity for the wall-mounted electrical transformer located in the existing Primary Clarifiers East Control Building. The support detail on the plans was designed for solid concrete walls, but the wall to which the transformer is mounted is a hollow CMU (concrete block) wall. This item adds a unistrut support frame and epoxy anchors. The work was accomplished on Contractor's force account pursuant to Section 48 (B)2 of the General Requirements(Reference FCO-13137-171). ADDED COST THIS CHANGE ORDER ITEM: $1,242.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 2 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 9272MI27 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Twenty Six (26) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities Job No. P1-37 Consultant: Brown and Caldwell ITEM 3—ADD LARGER DOOR AT POLYMER ELECTRICAL ROOM This item increases the size of the existing door and jamb on the West end of the Polymer Facility electrical room. The plans require the removal of existing equipment and the installation of new equipment which is too large to fit through the existing door opening. The Contractor removed the existing door and jamb, increased the opening size to accommodate a 3-foot wide by 8-foot tall steel door, reinforced the door header, installed an OCSD selected door and jamb, provided and installed door hardware similar to what was existing and provided a temporary door such as plywood until the permanent door is installed. The work was accomplished on Contractor's force account pursuant to Section 48 (B) 2 of the General Requirements(Reference FCO-P137-173). ADDED COST THIS CHANGE ORDER ITEM: $10,417.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 4—EXISTING MAIN GALLERY ADDITIONAL GRADE BEAM REMOVAL This item provides compensation for demolition and removal of nine 20-foot and one 10-foot existing North/South grade beams located in the existing Main Gallery. The contract demolition drawings failed to accurately reflect the as-built drawings and did not identify the North/South grade beams that require demolition. These grade beams must be demolished in order to install the new grade beams engineered to carry the load of the new Center Feed Channel. This change compensates the Contractor for the additional work. The additional grade beam removal affected the critical path of this project, thus requiring a contract time extension. The work was accomplished on Contractor's force account pursuant to Section 48 (B) 2 of the General Requirements (Reference FCO-13137-270). ADDED COST THIS CHANGE ORDER ITEM: $77,651.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 132 Calendar Days ITEM 5— PROVIDE REMOTE CONTACT BLOCK FOR AIR OPERATED VALVES This item provides for a remote contact block for 80 air-operated valves. As shown in the contract documents,feedback to the remote input causes erroneous status indication. This condition was not shown on the contract drawings. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48(B) 1 of the General Requirements(Reference FCO-P137-282). ADDED COST THIS CHANGE ORDER ITEM: $9,711.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 3 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Marcate Construction, Inc. C.O. No.: Twenty Six (26) Date: Mav 24. 2006 Job: Primary Clarifiers 16.31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell ITEM 6—PROVIDE GRADE BEAM TERMINATION DOWELS This item provides for the procurement and installation of epoxy dowels at the North/South ends of the new grade beams. The contract documents did not show the connection details of the new North/South grade beams to the existing East/West grade beams. This change corrects these omissions. The work was accomplished on Contractors force account pursuant to Section 48(B) 2 of the General Requirements(Reference FC0-P137-291). ADDED COST THIS CHANGE ORDER ITEM: $1.305.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 7—REPAIR OF HEADWORKS SPUTTER BOX No. 3 This item provides for repair of the expansion joint on the Headworks Splitter Box No. 2 and No. 3. A leak was discovered when the Contractor tried to isolate piping for downstream contract work in Clarifiers 3, 4, and 5. Investigation showed broken concrete and leaking expansion joint. This work was not part of the original project scope but an emergency to repair a discovered leak. A future small project will permanently repair this structure. The work was accomplished on Contractor's force account pursuant to Section 48 (B) 2 of the General Requirements(Reference FCO-P137-295). ADDED COST THIS CHANGE ORDER ITEM: $30.934.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 8—PROVIDE HOUSEKEEPING PAD FOR CRISP WORK STATION This item adds a concrete housekeeping pad under the CRISP work station that will be installed on the west side of the new Main Gallery. A housekeeping pad is needed to prevent the CRISP work station from getting wet and damaged from wash water. The work was accomplished on Contractor's force account pursuant to Section 48 (B)2 of the General Requirements (Reference FCO-P137-302). ADDED COST THIS CHANGE ORDER ITEM: $595.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 4 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor: Margate Construction Inc. C.O. No.: Twenty Six (26) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities Job No. P1-37 Consultant: Brown and Caldwell ITEM 9—EPDXY INFLUENT CHANNEL COLUMN DOWELS This item provides for labor and epoxy grout material to drill and place three concrete reinforcing steel dowels at each of the 20 columns in the existing Main Gallery. The design documents require that each of the existing Main Gallery columns to be thickened from 18-inch square to 4-feet wide by 2-feet 3-inch deep. The concrete reinforcing steel was shown on contract drawings. However, the drawing did not indicate that the steel bars were to be embedded into the existing floor slab. The work was accomplished on Contractor's force account pursuant to Section 48 (B) 2 of the General Requirements (Reference FC0-P137-310). ADDED COST THIS CHANGE ORDER ITEM: $12,130.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 10—GRADE BEAM EPDXY DOWELS AT EXISTING EXPANSION JOINTS This Rem provides for epoxy resin material and labor to drill and install epoxy dowels at eight locations where the new North/South grade beams terminate at existing expansion joints. The contract drawings did not show how the new North/South grade beams terminate at the existing floor slab expansion joints. The work was accomplished on Contractors force account pursuant to Section 48 (B)2 of the General Requirements(Reference FCO-P137-311). ADDED COST THIS CHANGE ORDER ITEM: $1,473.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 11 —MIXER MOTORS OVERLOAD BREAKERS This Rem provides two new sets of overload breakers for mixer motors. Electrical drawings incorrectly stated the size of Mixer Motors as 1-Hp instead of the required 10-Hp. This change resolves the problem. The work was accomplished on Contractor's force account pursuant to Section 48 (B)2 of the General Requirements(Reference FCO-12737-315). ADDED COST THIS CHANGE ORDER ITEM: $604.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ` Page 5 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Twenty Six(26) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities. Job No. P1-37 Consultant: Brown and Caldwell ITEM 12 —TEMPORARY POLYMER BYPASS PIPING This item provides for installing a temporary polymer piping bypass so that the new polymer system can be operated while the Center Feed Channel cannot be used during Phase 2 work. The completed design introduces polymer at the new cutthroat flumes leaving the center feed channel. During the construction of phase 2A and 2B the center feed channel is not in service and polymer must be introduced at the Clarifier 6-15 splitter box. This change added piping and valves to allow operators the ability to use the splitter box now and later switch to the center feed channel when it becomes operational at the completion of phase 2B. The work was accomplished on Contractor's force account pursuant to Section 48(B)2 of the General Requirements(Reference FCO-P137-318). ADDED COST THIS CHANGE ORDER ITEM: $2,017.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 13— EXISTING PRIMARY CLARIFIER GRADE BEAM AND COLUMN REBAR CHANGES This item modifies concrete reinforcing steel needed for the new grade beams and thickened columns to support the new Centerfield Channel. Four structural columns at the South end of the new Main Gallery are different in physical geometry than the remaining columns. This difference was not shown on the contract documents. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-320). ADDED COST THIS CHANGE ORDER ITEM: $6,287.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 14—CONNECTION DETAILS BETWEEN COLUMNS AND BEAMS This item modifies the connection details between the new widened columns and roof support beam at the Clarifier 6-15 main gallery intersection. The structural drawings were found to be in error and following them would have severely weakened the existing influent channel structure. This item reoriented the concrete beam and added additional reinforcing steel. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements(Reference FCO-P137-321). ADDED COST THIS CHANGE ORDER ITEM: $3,096.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 6 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction. Inc. C.O. No.: Twenty Six (26) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities. Job No. P1-37 Consultant: Brown and Caldwell ITEM 15— POLYMER BUILDING PUBLIC ADDRESS SYSTEM WIRING This item provides labor and material to reconnect the Polymer Building Public Address (PA) system wiring. The contract drawings did not address any of the wiring for the existing PA speakers. The feeder for the existing PA speakers was being fed via the existing PLC which was demolished as part of this project's scope of work. Due to the PLC demolition, the raceway and the PA cable were also removed. This change reconnects the PA wiring. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-322). ADDED COST THIS CHANGE ORDER ITEM: $1,374.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 16—MODIFY REINFORCING STEEL AT EXISTING GALLERY INTERSECTION Due to design dimensional errors, the reinforcing steel running East to West was fabricated too short. This item corrects these dimensional errors and provides for cutting the steel supplied and adding splice bars to make up the dimensional difference. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (6) 1 of the General Requirements (Reference FCO-P137-323). ADDED COST THIS CHANGE ORDER ITEM: $2,506.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 17—MINI-PILING REVISED TESTING PROGRAM This Rem provides the contract time extension associated with a previous change order. It was determined that the changes involved in Item 10 of Change Order 24 (Mini-Piling Revised Testing Program) delayed the critical path of the project 10 days. A time extension was not included with the original change order because the schedule impact was not known at that time, as documented in the Sanitation District's December 13, 2005 letter. This time extension addresses all outstanding time related issues associated with items contained in Change Order 24, as further detailed in Sanitation District's December 13, 2005 letter. This change affected the Contractor's start of the mini pile production. The time extension associated with this Change Order item was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-304). Page 7 of 9 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Twenty Six (26) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell ADDED COST THIS CHANGE ORDER ITEM: $0.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 10 Calendar Days ITEM 18— Primary Clarifier 3. 4. 5 Elevated Aluminum Cover at Center This item provides for fabrication and delivery to site of raised aluminum cover sections for the center feed mechanism on Primary Clarifiers 3, 4, and 5. The center mechanism is higher than the elevation of the previously proposed flat cover. The cover section over the center mechanism will be raised to provide clearance over the top of the mechanism. The contract design drawings did not indicate any conflict. This change resolves the discrepancies. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements (Reference FCO-P137-328). ADDED COST THIS CHANGE ORDER ITEM: $28,160.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 19—Primary Clarifier 3. 4. 5 Coating of New Concrete Modifications This item provides for coating the new concrete pilasters for Primary Clarifiers 3, 4, and 5. The new concrete pilasters were not part of the original contract and are being done under a separate change order. The coaling of the new concrete pilasters is needed to prevent deterioration caused by the harsh primary clarifier process environment. The work associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements(Reference FCO-P137-330). ADDED COST THIS CHANGE ORDER ITEM: $22,421.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 20—Credit for Deletion of Extruded Polystyrene Fill This Item provides for a credit to the Sanitation District for deleting the requirement for extruded polystyrene fill at the Primary Clarifiers 6-15 influent splitter box. The Sanitation District's design consultant, Brown and Caldwell has reviewed the need for the polystyrene fill and determined that it was acceptable to delete it provided the shoring required for construction remain permanently in place. The credit associated with this Change Order was negotiated with the Contractor pursuant to Section 48 (B) 1 of the General Requirements(Reference FCO-P137-332). ADDED COST THIS CHANGE ORDER ITEM: $(21,000.00) TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 8 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Twenty Six(26) Dale: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities Job No. Pt-37 Consultant: Brown and Caldwell TOTAL ADDED COST THIS CHANGE ORDER: $272,749.00 TIME EXTENSION THIS CHANGE ORDER: 142 Calendar Days The additional work contained in the 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. The Sanitation District and Contractor agree that the added cost and time described above constitutes full and equitable consideration for all direct costs and time extension incurred by the Contractor and its subcontractors and suppliers, and that the right to any amount of any other extra costs caused by or resulting from delays caused by the work pertaining to Item 4(FCO 270)and Item 17 (FCO 304), as described in this Change Order, that have been or will be incurred by the Contractor, except as expressly granted and approved by this Change Order, are reserved by the Contractor. Nothing contained herein shall be deemed as a waiver by OCSD of the Contractor's contractual obligations set forth in the Contract with OCSD for this Project, including but not limited to, Section 52 of the General Conditions and Section 31(1) of the General Requirements. SUMMARY OF CONTRACT TIME Original Contract Date: January 7, 2002 Original Contract Time: 1,400 Days Original Completion Dale: November 7,2005 Time Extension this C.O: 142 Days Total Contract Time Extension: 465 Days Revised Contract Time: 1,865 Days Revised Final Completion Due Date: February 15, 2007 Time Subject to Liquidated Damages: NIA Actual Final Completion Date: N/A Original Contract Price $ 70,366,000.00 Prev. Authorized $ 1,722,850.00 This Change(Add) (Deduct) $ 272,749.00 Amended Contract Price $ 72,361,599.00 Page 9 of 9 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Margate Construction, Inc. C.O. No.: Twenty Six(28) Date: May 24, 2006 Job: Primary Clarifiers 16-31 and Related Facilities, Job No. P1-37 Consultant: Brown and Caldwell Board Authorization Date: May 24, 2006 ORANGE COUNTY SANITATION DISTRICT Recommended by: Michael Puccio, P.E. Dale CIP Project Manager Approved by: David A. Ludwin, P.E. Date Director of Engineering Accepted by: MARGATE CONSTRUCTION Contractor Date MP:el EDMS:003807813 r PDC COMMITTEE MeedngDate lbBdorDr. "1'06 051 i4/O6 AGENDA REPORT Item Number Item Number PDC06-39 14(c) Orange County Sanitation District 4 HHeadwarks FROM: David Ludwin, Director of Engineering Originator: Pam Koester, CIP Project Manager SUBJECT: HEADWORKS IMPROVEMENTS AT PLANT NO. 2, JOB NO. P2-66 GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 2 to Headworks Improvements at Plant No. 2, Job No. P2-66, with J.F. Shea Construction Inc., authorizing an addition of$356,647, increasing the total contract amount to $192,724,912. SUMMARY • Job No. 132-66 provides for the construction of new 340 mgd Headworks which includes new odor control facilities and a new power facility (Power Building E). • Carollo Engineers prepared the plans and specifications and the contract was awarded to J.F. Shea Construction, Inc. on May 25, 2005. • This change order includes one item of added work with no time extension. There are no reimbursable design errors and one non-reimbursable design error associated with this change order. Liquidated damages for this contract are $6,000 per day and no bonus provisions. The contract is now 9.3% complete. PRIOR COMMITTEE/BOARD ACTIONS The construction contract was awarded to J.F. Shea Construction, Inc., by the Board of Directors on May 25, 2005. Change Order No. 1 is currently being processed by Orange County Sanitation District (Sanitation District) staff and will be sent to the General Manager for signature. PROJECT/CONTRACT COST SUMMARY Original Contract Price $192,296,073 Previously Authorized Changes $ 72,192 This Change (Add) $ 356,647 Change Orders to Date $ 428,839 Percentage Increase to Date 0.22 Amended Contract Price $192,724,912 na.:m. .13. Page 1 BUDGETIMPACT ® This item has been budgeted. (Line item: Section 8— Page 50) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Contract Schedule Contract Start Date September 15, 2005 Original Contract Completion Date February 8, 2011 Total Number of Change Orders to Date 2 Current Contract Completion Date February 8, 2011 Actual Contract Completion Date February 8, 2011 Days subjected to Liquidated Damages N/A Change Order No. 2 Content Item No. Description Amount Days Type Potable and Reclaimed Water Non-Reimbursable 1 Piping Changes $356,647 0 Design Error Total Chan a Order No. 2 $356,647 0 Item 1 involved an alignment change and added pipe for the new 12-inch potable water (POTW) and 12-inch reclaimed water (RW) ductile iron piping in the vicinity of the Central Generation Building. The change was required to facilitate demolition of sections of the existing POTW and RW networks to accommodate new facilities, while maintaining service throughout the plant during construction. The contract documents assumed that the Contactor would be responsible for any temporary rerouting of utility piping during construction. However, due to the location of the 108-inch pipeline in the vicinity of the utility lines, the engineering solution to reroute the piping was not simple and could not have been reasonably determined by the Contractor during the bidding process. A major portion of this change adds permanent piping in the existing Central Generation Building piping network. The installation of this piping involves extensive labor due to space limitations within the building. ALTERNATIVES None CEQA FINDINGS Replacement of the Plant No. 2 Headworks was not included in the 1999 Strategic Plan Program Environmental Impact Report (EIR). A subsequent EIR to the 1999 Strategic Plan Program EIR was approved by the Sanitation District's Board of Directors in April 2004. a...,.a Wv % Page 2 ATTACHMENTS 1. Budget Information Table 2. Change Order Status Report 3. Change Order Performance Report 4. Change Order 5. Location and Photo Description of Change Order TCH:lg:eh KWepttagendatBoard Agenda Reports=W Board Agenda&Agenda Repods\0508Vtem Nc).P2AeBdoc a„1.: 06W6 Page 3 BUDGET INFORMATION TABLE HEADWORKS IMPROVEMENTS AT PLANT NO. 2 JOB NO. P2.66 ORIGINAL CURRENT PROPOSED PROPOSED FUNDS THIS PROPOSED ESTIMATED 1 QED BUDGET PROJECT/PHASE- AUTHORIZED PROJECT REVISED AUTHORIZED TO AUTHORIZATION TOTAL EXPENDITURE E%PENE10" BUDGET BUDGET INCREASE BUDGET GATE REQUEST AUTHORIZATION TO DATE OATP(%I%1. IDECPEASE Phase 1-Project Develo m $ 57,999 S 64,398 $ 64.398 $ 64,398 $ 64,39B $ 64.395 100% Phase 2-Prelhnina Des' n $ 92,400 $ 3,902,989 S 3.902,989 S 3,902.989 S 3,902.989 $ 3,903.723 100% Phase 3-Des n $ 450.401 $ 14,361,707 $ 14,361707 $ 14.361,707 $ 14,361.707 S 14.971610 104% Phase 4-Construction S 1,799,600 $ 241.637736 $ 356.647 1 $ 24ISD4.383 $ 212.032.285 $ 356647 $ 212388,932 $ 20,458.630 10% Phase 6-Commissioning $ 5.679,802 $ 5.679,802 $ 5.679.802 S 6,679.602 $ 17,366 0% N Phase 6-Close-Out $ 524,694 $ 524,604 �`-': $ 524.694 $ 524,694 $ 0% Phase 7-Confingency $ 17232.602 E 356,647 $ 16.875.955 _. $ PROJECT TOTAL $ 2,400.400 $ 283.403.928 S - $ 283,400,928 :it. $ 236,665,875 S 356,647 $ 236,922.522 $ 39,416,627 17% k'_ Reimbursable Costs PROJECT NET 1 $ 2.400,400 $ 283,403.928 1$ - $ 283.403,928 S 236,565.875 S 356,647 5 236,922,522 $ 39,415.627 17% PSAIContmt Lesion PEA 1 $ 26.740.004 1 is 26700,004 't $ 26.740.004 1 $ W.740,004 Construction Contract 1 $ 192.368,265 1 S 356,64]1 S 192724,912 ',. $ 192.M.265 1$ 356.647 $ 192,724.912 EDW 003001653 CHANGE ORDER STATUS REPORT Headworks Improvements at Plant No. 2 Job No. P2-66, Change Order No. 2 CUMULATIVE AUTHORIZED AUTHORIZED TIME APPROVAL CONTRACT CONTRACT COST PERCENTAGE ITEM TIME TO DATE DATE COST TO DATE INCREASE/ (DAYS) (DAYS) DECREASE CONTRACT 9/15/2005 $192,296,073 $192,296.073 0.00 1973 1973 CO NO, 1 Pending $72,192 $192.368,265 0.04% 0 1973 CO NO.2 Pending $356,647 $192,724,912 0.22% 0 1973 EDMS 003807650 f CHANGE ORDER PERFORMANCE REPORT HEADWORKS IMPROVEMENTS AT PLANT NO.2, JOB NO.PbgB,CHANGE ORDER NO.2 Connector:JF SHEA CONSTRUCTION,INC. Project Category:EXPANSION Design Consultant CAROLLO ENGINEERS Contract%Complete:9.3% Original COMred Price: S192Rg6,079 CHANGE ORDER TYPES TRACKED INFORMATION ONLY Reimbursable Design N -Relnbursebb SutaebI CO Types Unionists Coastal.. Sbfl Rpuevletl Change Ennis Design Error, Trncaetl' Me, Total Change Orden $0 0.110% SO 0.00% $0 0.00% $358,847 0.19% $355,847 0.19% $0 O.OD% $356.64 0.19% this Period Change Ordee to $12.218 0.01% $1.150 0.00% $0 0.00% $58,824 0.03% $72,192 0.04% $0 D.00% $T2.192Dow Change Order Total $12.218 0.01% $7,150 0.00% $0 0.00% 5415,471 0.22% 3428.83E 0.22% $0 D.00% $428,839 0.22% Program <3.00% <1.00% 0.00% <1.00% <5.0D% 0,00% <5.00% ParMrmance Goeb 'the Change Ocher Manpement Plan"as the preceding fourchange wds,typos Veraicn W1I2008 EOW 030D701 Page 1 of 3 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F.Shea Construction, Inc C.O. No.: Two 2 Date: May 24, 2006 Job: Plant No. 2 Headworks Replacement, Job No. P2-66 Consultant: Carollo Engineers Amount of this Change Order(Add)$356 647.00 In accordance with contract provisions, the following changes in the contract and/or contract work are hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. ITEM -1 POTW AND RW PIPING CHANGES This item is for the labor, material and equipment to change the alignment and add pipe to the 12-inch Potable Water (POTW) and 12-inch Reclaimed Water (R" piping in the vicinity of the Central Generation Building. The change was required to facilitate demolition of sections of the piping to accommodate new facilities while maintaining POTW and RW service throughout the plant during construction of the new headworks. The existing pipes run through the P2-66 project site. This item will permit routing water around the site during construction. This change includes the addition of approximately 130 If of 12-inch ductile iron yard piping, and 550 If of 12-inch ductile iron piping, pipe supports, and victolic couplings in the basement of the Central Generation Building at Plant No. 2. Installation of the pipe sections in the basement is labor intensive, requiring the cutting and fitting of small sections as well as the construction of temporary structures to protect existing equipment. Prior to connecting the new piping to the existing networks, the contractor will test POTW and RW systems for leakage, and chlorinate the POTW pipes. After connection, the contractor shall demolish sections of the existing water networks as shown on the contract documents, which will permit excavation and construction of Building 6 (Grit Basins) and Building 9 (Primary Influent Metering Structure) of the 132-66 project. This work was negotiated with the Contractor pursuant to Section 44 C (1) of the general Requirements (Reference FCO-P2664 and J.F. Shea's cost proposal dated 01/26/2006). ADDED/COST THIS CHANGE ORDER ITEM: $ 356,647.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 2 of 3 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: J.F.Shea Construction Inc C.O. No.: Two 2 Date: May 24, 2006 Job: Plant No. 2 Headworks Replacement, Job No. P2-66 Consultant: Carollo Engineers TOTAL ADDED COSTS THIS CHANGE ORDER: $356,647.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days 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. It is therefore mutually agreed that no time extension 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 the Contractor, except as expressly granted and approved by this change order. SUMMARY OF CONTRACT TIME Original Contract Date September 15, 2005 Original Contract Time: 1973 Calendar Days Original Completion Date: February 8, 2011 Time Extension this C.O.: 0 Days Total Contract Time Extension: 0 Days Revised Contract Time: 1973 Calendar Days Revised Final Completion Due Date: February 8, 2011 Time Subject to Liquidated Damages: 0 Actual Final Completion Date: February 8, 2011 Original Contract Price $ 192,296.073 Prev. Authorized Changes $ 72,192 This Change (Add) $ 356,647 Amended Contract Price $ 192,724,912 Page 3 of 3 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor: J.F.Shea Construction, Inc C.O. No.: Two 2 Date: May 24, 2006 Job: Plant No. 2 Headworks Replacement, Job No. P2-66 Consultant: Carollo Engineers Board Authorization Date: May 24, 2006 ORANGE COUNTY SANITATION DISTRICT Recommended by: Pam Koester Date CIP Project Manager Approved by: David A. Ludwin P.E. Date Director of Engineering Accepted by: J.F. Shea Construction, Inc. Contractor Date EOM$00660766 PDC COMMITTEE Neeeng Date To ad.of Dk. 05/04/06 05/24/06 AGENDA REPORT Item Number the Number _ PDC0640 14(d) Orange County Sanitation District RSecondary Treatment FROM: David A. Ludwin, Director of Engineering Originator: Bob Schirripa, IPMC Project Manager SUBJECT: SECONDARY TREATMENT FACILITIES PROCESS UPGRADES AT PLANT NO. 2, JOB NO. P2-47-3 GENERAL MANAGER'S RECOMMENDATION (1) Approve a budget increase of$1,251,353 for a total budget of$11,470,885 for Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3; and (2) Ratify Change Order No. 8 to Secondary Treatment Facilities Process Upgrades at Plant No. 2, Job No. P2-47-3, with Morrow-Meadows Corporation, authorizing an addition of$1,251,353 and a time extension of 17 calendar days, increasing the total contract amount to $7,262,408, and extending the contract completion to February 20, 2006. SUMMARY • Job No. P2-47-3 provides for the rehabilitation of electrical equipment, instrumentation, and controls for the secondary treatment facilities located at Plant No. 2. • Lee & Ro prepared the plans and specifications and the contract was awarded to Morrow-Meadows Corporation on September 24, 2003. • Change Order No. 8 includes eight items of added work and one time extension item. There are two non-reimbursable design errors and no reimbursable design errors associated with this change order. The contract includes liquidated damages at $2,000 per day and no bonus provisions. The project is now 95% complete. • Request approval of a budget increase of$1,251,353 to cover the added scope of work from other projects. This budget increase covers the majority of the labor costs associated with replacing the existing wires and cables in the cable trays which is not rated for cable trays with new wires and cables that are rated for cable trays. This work was originally part of the Job No. J47, Cable Tray Improvements at Plants 1 & 2. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on September 24, 2003. Please refer to the attached Change Order Status Report for information on all previous change orders. Page 1 PROJECT/CONTRACT COST SUMMARY y Original Contract Price $ 4,712,000 i Previously Authorized Changes $ 1,299,055 This Change (add)(deduGE) $ 1,251,353 Change Orders to Date $ 2,550,408 Percentage Increase to Date 54.13% Amended Contract Price $ 7,262,408 Change Order No. 6 and No. 7, which were presented to the Board in August 2005 and December 2005, identified that there was considerable work being added to P2-47-3 that was originally planned to be performed by several other projects. Some of this additional work involved the replacement of wires and cables in the existing cable trays. The work added to this project came primarily from three other projects, namely, J-33-1A, P2-74, and J-47. Staff determined that the extra work was similar to the project scope of P2-47-3, and the inclusion of work would avoid future conflicts, improve the safety of the cable tray system throughout the secondary treatment plant, and result in cost savings to the overall construction program. It should be noted that of the $2,550,408 change orders to date, $2,212,355 is attributed to "other" projects. If the "other" category is excluded, the total change order percentage for P2-47-3 is 7.17%. Please refer to the attached Change Order Performance Report. BUDGETIMPACT ❑ This item has been budgeted. (Line item: Section 8 —Page 64) ® This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) The recommendation also requests a budget increase of$1,251,353 to cover the costs associated with added work from other projects. Much of the work has been completed with respect to the J-33-1A and P2-74 projects under previous change orders. The majority of this budget increase covers Item 8 of this change order, which includes labor cost for the addition of almost 118,000 feet of wiring and cabling throughout the secondary treatment plant. Staff understands that the budgeted contingency that remains is high based on the fact that the construction is essentially complete and that the Contractor has completed almost all of the contract work. However, there are a number of field change orders (FCO) that are still being worked by the Contractor under a force account basis and cannot be included at this time. Staff anticipates that the costs associated with the outstanding FCOs will utilize the remaining contingency. Page 2 ADDITIONAL INFORMATION Contract Schedule Contract Start Date November 6, 2003 Original Contract Completion Date March 4, 2005 Total Number of Change Orders to Date 8 Current Contract Completion Date February 20, 2006 Projected Contract Completion Date May 31, 2006 Actual Completion Date N/A Days Subject to Liquidated Damages N/A Change Order No. 8 Content Item Description Amount Days Type No. 1 Repair Existing Pipe on RAS Pump 1,347 0 Unknown Condition 2 Vibration Switch and Timer 33,612 0 Unknown Condition Replacements 3 First Stage Gas Analyzer Panel 7,453 0 Staff Requested Modifications Design Change 4 Additional Permanent Patch Cables 4,734 0 Non-reimbursable Desi n Error 5 Field Verification of Loop Diagrams 13,673 0 1 Unknown Condition 6 Replacement of Existing Aerator 928 0 Non-reimbursable Bucket Lugs Desigin Error 7 Replacement of Existing Purge Air 2,409 0 Unknown Condition Valve Switches 8 Cable Tray Wire and Cable Additions 1,187,197 0 Other 9 Time Extension 0 17 Other Total Change Order No. 8 $1,251,353 17 Item 1 repairs the corroded discharge line on Return Activated Sludge Pump #2. The corroded pressure indicator feed pipe was discovered during commissioning, and the repair was required to keep the activated sludge system operational which maintains the Sanitation District's current level of secondary wastewater treatment. Item 2 replaces 24 corroded vibration switches and adds 16 timers to the aeration mixer motors located on the west side aeration basins. The corroded switches were discovered during the commissioning phase, and new timers were required. These additions were required in order to protect the equipment and ensure reliable operation of the critically needed equipment. Item 3 reorients one of the four first stage gas analyzer panels located on the deck of the aeration basins. Staff also required the modification to the remaining (uninstalled) panels to better facilitate maintenance of all of the first stage gas analyzer panels. Item 4 adds permanent patch cables between each remote 1/0 panels and its corresponding fiber optic patch panel located at both the east and west RAS pump control room. The cables are needed in order to complete the installation but were omitted from the contract documents. Page 3 Item 5 verifies existing equipment loop drawings provided to the Contractor as part of the contract documents. This requirement was necessary as a result of recent changes made to the Oxygen Generation Plant, under separate contract with Air Products following the completion of the design of this project. Item 6 replaces existing aerator bucket lugs (connectors) in order to accommodate the larger contract specified wire. The contract documents did not show the size of the existing lugs. Item 7 replaces corroded purge air valve switches located on the oxygen supply purge air system. This condition was considered a safety issue and was not known during the design phase of this project. Item 8 includes additional labor costs for replacing cable and wire that was to be rehabilitated under the future J-47 project. Staff identified areas within and near the project site that required upgrading of the electrical system but were not included in the scope of the project. The areas included the east and west RAS Pump Stations, Scott Tunnel and Kinnison Tunnel. This item includes only the labor costs for the installation of approximately 94,000 feet of tray-rated cable, 24,000 feet of wiring, and coordination with Staff for numerous shut downs. Single-conductor wiring was replaced with multi- conductor cabling. Non tray-rated cable was replaced with tray-rated cable. The amount of labor required to perform this work was 16,000 hours. Material costs associated with this item are estimated at $250,000 and will be included in a future change order after the contractor submits documentation required by the contract. Item 9 is for a time extension in order to accommodate repairs and additional testing required for equipment that was supplied by the Sanitation District to the Contractor that failed during testing. The Contractor submitted a time impact analysis (TIA) and a request for a time extension that was reviewed and approved. The result is a 17 day time extension to the contract for which the Contractor has agreed to be non- compensable. The following is associated with Item 8 of this change order. Work associated with the P2-47-3 project involved the installation of new electrical gear in the east and west Returned Activated Sludge (RAS) Pump Stations and the removal and re-connection of existing electrical feeds for this gear. The existing electrical cable and wire in the cable trays servicing the electrical gear did not meet current electrical codes and the wire and cable in the cable trays was not rated for cable tray installations. The current electrical code requires a different type of insulation which is thicker and isolates the individual conductor from other near-by conductors. It was the new electrical code that required the work associated with Item#8. This replacement provides additional protection for the "open air" environment of a cable tray installation. Because of the code problems with the existing wiring and cable located in the existing cable trays, the Contractor could not safely perform the proposed contract work in compliance with the applicable electrical codes. In order to avoid installing new work that would not be in compliance with the current electrical code, it was determined that the existing conductors should be rehabilitated at this time in lieu of waking for the future J-47 project which is in the preliminary design phase. Staff determined that Page 4 performing the work at this time was cost effective and resulted in a safer and more reliable secondary treatment facility. In addition, the performance of the work relating to the cable trays provided some valuable lessons for the future Job No. J-47. Specifically, this work provided reliable estimates for the effort that is required to replace the wires and cables based on the quantities of materials used as well as the amount of hours expended to perform the work. This information can be used by Job No. J-47 as it proceeds through preliminary design, design, and into construction. It could also be used as a basis to have Job No. J47 performed as a design-build project. As part of the recent CIP budget reduction plan, the J47 project budget was reduced to account for this work being performed under this project. ALTERNATIVES None CEQA FINDINGS This project was included in the Strategic Plan EIR that was 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 Performance Report 4. Change Order 5. Location and Photo Description of Change Order CH:dm:eh:kf K%depSagendaXftard Agenda Repane=6 Board Agenda 8 Agenda Repo %0506MWn 14(d).P2373.dw Page 5 performing the work at this time was cost effective and resulted in a safer and more - reliable secondary treatment facility. In addition, the performance of the work relating to the cable trays provided some valuable lessons for the future Job No. J-47. Specifically, this work provided reliable estimates for the effort that is required to replace the wires and cables based on the quantities of materials used as well as the amount of hours expended to perform the work. This information can be used by Job No. J-47 as it proceeds through preliminary design, design, and into construction. It could also be used as a basis to have Job No. J47 performed as a design-build project. As part of the recent CIP budget reduction plan, the J47 project budget was reduced to account for this work being performed under this project. ALTERNATIVES None CEQA FINDINGS This project was included in the Strategic Plan EIR that was 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 Performance Report 4. Change Order 5. Location and Photo Description of Change Order CH:dm:eh:kf WdeptlagendMBoard Agenda ReportsMX Board Agenda&Agenda ReportsMOGtltem 14(d).FT47-3.doc Page 5 BUDGET INFORMATION TABLE SECONDARY TREATMENT FACILITIES PROCESS UPGRADES AT PLANT NO. 2 P2-47-3 ORIGINAL CURRENT PROPOSEDPROPOSED FUNDS THIS ESTIMATED ESTIMATED PROJECDPHA9E AUTHORIZED PROJECT BUDGET REVISED AUTHORIZED TO AUTHORIZATION PROPOSED TOTALEXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%) (DECREASE - Phase l-Pto tDevelopment $ - $ 260 $ - S 260 $ 260 $ - $ 260 $ 260 100% Phase 2-Prelinlne Design $ 6,DD0 $ 8,42] $ - $ 6,427 $ 6.427 $ - $ 6,427 S 8427 IN% Phase 3-Design S 677.DD2 $ 709,134 $ 709.134 - $ 709.134 $ 709,134 $ 708849 IN% Phase 4-Constmtlion S 6,697.W0 $ 5,366.740 S 1251353 $ 9.620,093 $ 8.368.740 $ 1,251.353 $ 9.620.093 $ 7.012.815 73% Phase 5-CDMmissionfng S 1581905 S 358.906 S 358,906 `.`t $ 358.906 $ 358,906 S 164.630 51% Phase 6-Clos ul $ 39977 S 39977 S - $ 39,977 $ 39.977 S - S 39.977 $ 131 0% Phase 7-Cohtlnge $ 1.124.115 S 736.065 S 708A88 $ - E - 8 - S 0% PROJECTTOTAL $ 8,703.00D S 10,210,532 $ 1.251.353 $ 11,470,665 $ 9,483,444 1$ 1,251,353 E 10.734,797 $ 7.913,112 r 74% Relmhuma9le Costs 0% PROJECT NET $ 8703.000 1 $ 10219.532 3 1,251,353 $ 8703,000 'I $ 9,483.444 1$ 1251,353 S 10.734,797 1 $ 7.913,112 74% PSAIConbact Des ion PEA S 637709 $ 637.709 $ - S 637,709 11 1 $ 637,709 S $ 637,709 1 S 572.841 90% COnslmollen Conked $ 5 17217 I S 6,011.055 S 1251353 1 $ 7,282.406 $ 8011.055 1 S 1,251368 $ 7262408 1 $ 504D.456 69% EDN60oID]W19 CHANGE ORDER STATUS REPORT SECONDARY TREATMENT FACILITIES PROCESS UPGRADES AT PLANT NO. 2 JOB NO. P2-47-3 APPROVAL CONTRACT CONTRACT COST CUMULATIVE AUTHORIZED AUTHORIZED TIME ITEM PERCENTAGE TIME TO DATE DATE COST TO DATE INCREASE (DAYS) (DAYS) CONTRACT 9/24/2003 $4,712,000 34,712,000 0.00 485 485 CO NO. 1 10/27/2004 $205,903 $4,917,903 4.37 0 485 CO NO.2 12/15/2004 $12,765 $4,930,668 4.64 0 485 CO NO. 3 2/23/2005 $331,811 $5,262,479 11.11 0 485 CO NO.4 3/23/2005 $526,958 $5,789,437 22.87 215 700 CO NO.5 5/25/2005 $95,602 $5,885,039 24.89 0 700 CO NO. 6 8/24/2005 $31,879 $5,916,918 25.57 21 721 CO NO. 7 12/17/2005 $94,137 $6,011,055 27.57 99 820 CO tJ0. 6 Pading' $1,26103 "$7,'262988 'S4�7,3 �"' - 47 Bd7 EOMS 003806949 CHANGE ORDER PERFORMANCE REPORT SECONDARY TREATMENT FACILITIES PROCESS UPGRADES AT PLANT NO.2 JOB NO.P2.473,CHANGE ORDER NO.8 Contractor:MORROW-MEADOWS CORPORATION Project Type:REHABILITATION Design Consultant:LEE&RO Contract%Complete:100% Original Contract Price: $4,712,000 CHANGE ORDER TYPES TRACKED INFORMATION ONLY Unknown Condition Stan Requested Change Reimbursable Design Noo-flelnbureable Design Sublotal CO Types Other Total Errors Errors Tracked Change Orden $51,041 1.08% $7,453 0.16% $0 0.00% $5,662 0.12% $64,156 1.36% $1.187.197 25.20% $1,261,363 26.56% this Period Change Orden to ($6.466) -0.14% $145,618 3.09% $36.261 0.77% $98.684 2.D9% $273.887 5.81% $1,026.168 21.76% $1,299,055 27.57% Date Change Order Total $44,575 0.95% $152,871 3.25% $36,261 0.77% $104,2 2.21% $338,053 7.17% $2,212.355 46.85% $2,660,408 54,13% Program <3.00% <1.00% 0.00% < 1.00% <5.00% 0.00% <5.00% Performance Goals The Change ONer Management Plan traeks the preceding four change order types Vmvan 3/1/2005 EDMS 003806968 r Page 1 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Morrow-Meadows Corporation C.O. No.: Fight (B) Date: May 24 2006 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P247-3 Consultant: Lee& Re Amount of this Change Order(Add)(Decl $1,251,353.00 In accordance with contract provisions, the following changes in the contract and/or contract work are hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. ITEM 1 —REPAIR EXISTING PIPE ON RETURN ACTIVATED SLUDGE PUMP This item is for labor, material, and equipment needed to repair the pressure indicator feed pipe associated with Return Activated Sludge (RAS) Pump#2. The corroded 1-inch galvanized steel pipe was discovered during the commissioning phase of the East Side Aeration Basins. The Contractor was also directed to replace the existing fitting associated with the pressure indicator feed pipe with a schedule 80 nipple as a result of excessive corrosion. Repair of the corroded line was required in order to keep the Activated Sludge System operational. The work associated with this change order item was accomplished by the Contractor's force account in accordance with Division 1, Section 43.13.1 of the General Requirement(Reference FCO-P2-47-03-09). ADDED COST THIS CHANGE ORDER ITEM: $1,347.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 2—VIBRATION SWITCH AND TIMER REPLACEMENTS This item is for labor, material, and equipment needed to replace 24 corroded vibration switches (Robert Shaw#366-A8)and add 16 IDEC timers to the existing West Side Aerator Mixer Motors. Due to excessive corrosion discovered in the field during the Construction Phase, The Sanitation District required replacement of all corroded Aerator Motor Vibration Switches located on the West Side Aeration Decks. In the past, the Sanitation District has experienced problems during start-up as a result of initial vibration. The Sanitation District required installation of the timers to delay the vibration sensing devices from causing premature motor shut-down. The costs associated with this change order item were negotiated with the Contractor in accordance with Division 1, Section 43.B.1 of the General Requirements(Reference FCO-P2-47-03-65). ADDED COST THIS CHANGE ORDER ITEM: $33,612.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 2 of 7 I ORANGE COUNTY SANITATION DISTRICT 108"ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor: Morrow-Meadows Corporation C.O. No.: Ei ht 8 Date: May 24, 2006 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P2-47-3 Consultant: Lee& Ro ITEM 3—FIRST STAGE GAS ANALYZER PANEL MODIFICATIONS This item is for labor, material, and equipment needed to reorient the A&B first stage gas analyzer panel located on the deck of the Aeration Basins. The Sanitation District noted insufficient space to facilitate maintenance associated with installation of the A&B first stage gas analyzer panel. This additional work included installation of additional anchors, removal and relocation of the panels(yet to be installed), and re-plumbing the oxygen/gas sampling lines. The remaining three, first stage gas analyzer panels are to be reoriented similar to the first panel to avoid space/maintenance issues at no additional cost to the project. The work associated with this change order Rem was accomplished by the Contractor's force account in accordance with Division 1, Section 43.B.1 of the General Requirement(Reference FCO-P2-47-03-53). ADDED COST THIS CHANGE ORDER: $7,453.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 4—ADDITIONAL PERMANENT PATCH CABLES This item is for labor, material, and equipment needed to add additional permanent patch cables between each remote input/output control panel and its corresponding fiber optic patch panel in the East and West Return Activated Sludge Pump Control Rooms. This work involved 150 feet of cables, 70 feet of 1-inch PVC coated galvanized rigid conduit, and 70 feet of 2-inch PVC coated galvanized rigid conduit. The costs associated with this change order item were negotiated with the Contractor in accordance with Division 1, Section 43.8.1 of the General Requirements(Reference FCO-P2-47-03-70). ADDED COST THIS CHANGE ORDER: $4,734.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 3 of 7 ORANGE COUNTY SANITATION DISTRICT 108"ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728.8127 CHANGE ORDER Contractor: Morrow-Meadows Corporation C.O. No.: Eight(8) Date: May 24, 2006 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P2-47-3 Consultant: Lee& Ro ITEM 5—FIELD VERIFICATION OF LOOP DIAGRAMS This item is for labor needed to field verify existing loop drawings that were provided to the Contractor as part of the contract documents. Recently, following the design of the P247-3 project, modifications to the Oxygen Generation Plant occurred under separate contract with Air Products. This field investigation was necessary to insure continued reliable operation of the Oxygen Generation Plant and continuous supply of oxygen to the Activated Sludge Treatment Process. The work associated with this change order item was accomplished by the Contractor's force account in accordance with Division 1, Section 43.B.1 of the General Requirement(Reference FCO-P2.47-03- 49). ADDED COST THIS CHANGE ORDER: $13,673.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 6 - REPLACEMENT OF EXISTING AERATION BUCKET LUGS This item is for labor, material, and equipment needed to replace sixteen existing size 1/0 wire lugs with size 2/0 wire lugs at the Aerators E3, E4, F3 and F4 Motor Control Center(MCC) buckets. The contract documents indicate feeder wire size 210. The existing wire lugs can only accommodate a smaller size wire 1/0. The work associated with this change order item was negotiated with the Contractor in accordance with Division 1, Section 43.B.1 of the General Requirements (Reference FCO-P2-47-03-62). ADDED COST THIS CHANGE ORDER ITEM: $928.00 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: Morrow-Meadows Corporation C.O. No.: Eight 8 Date: May 24, 2008 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P2-47-3 Consultant: Lee& Ro ITEM 7 - REPLACEMENT OF EXISTING PURGE AIR VALVE SWITCHES This item is for labor, material, and equipment needed to replace four Oxygen Supply Purge Air System power switches located at Aeration Decks A/B, CID, E/F, and G/H. During a field investigation conducted during the construction phase, corrosion was found on the existing power switches, which created an immediate safety concern associated with the Oxygen Supply Purge Air System. This additional work is not part of the original scope contained in the contract documents. The work associated with this change order item was negotiated with the Contractor in accordance with Division 1, Section 43.B.1 of the General Requirements(Reference FCO-P2-47-03-63). ADDED COST THIS CHANGE ORDER ITEM: $2,409.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days ITEM 8 —CABLE TRAY WIRE AND CABLE ADDITION This Rem is for labor required to install approximately 94,000 feet of Flame Retardant/Heat Resistant Tray Rated Cable and 24,000 feet of Flame RetardanUHeat Resistant Wiring. The amount of labor involved in this effort included approximately 16,000 hours. Also included is the furnishing and installation of 12 junction boxes, ancillary support, nuts, bolts, washers and labels required to complete the installation. This Rem includes all labor costs associated with Field Change Order (FCO) Nos. 32 and 68. The costs of materials and any justified contract time extension associated with these FCOs will be included in a future change order. The work associated with this change order item was accomplished by the Contractor's force account in accordance with Division 1, Section 44.13.1 of the General Requirements (Reference FCO Nos. 32 and 68). ADDED COST THIS CHANGE ORDER ITEM: $1,187,197.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days Page 5 of 7 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Morrow-Meadows Corporation C.O. No.: Ei ht 8 Date: May 24, 2006 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P247-3 Consultant: Lee& Ro ITEM 9 -TIME EXTENSION PURSUANT TO TIME IMPACT ANALYSIS NO. 5 This item is to extend the contract duration in order to accommodate repairs and additional testing required of non-contract supplied equipment. Pursuant to FCO No. 68,the P2-47-3 Contractor was required to install equipment supplied by the J-33-1A Contractor. Following installation, this equipment(Motor Control Center RAS—W3)failed NETA Testing and required subsequent repair to be provided by the J-33-1A Contractor. As a result of the non-contract supplied equipment failure, the Contractor requested a time extension of 17 days to the current contract completion date. The time impact analysis (TIA No. 5)was reviewed and approved by the Sanitation District. The Contractor agrees that this request for an extension of time to the contract completion date is non-compensable. The work associated with this change order was negotiated with the Contractor in accordance with Division 1, Section 43.B.1 of the General Requirements (Reference FCO-P2-47-03-92). ADDED COST THIS CHANGE ORDER ITEM: $0.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 17 Calendar Days TOTAL ADDED COST THIS CHANGE ORDER: $1,251,353.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 17 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: Morrow-Meadows Corporation C.O. No.: Ei ht 8 Date: May 24, 2006 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P247-3 Consultant: Lee& Ro The additional work contained within this change order can be performed incidental to the prime work and within the time allotted for the original contract and any extensions to the contract time made by this and all previously issued change orders. It is therefore mutually agreed that a 17 day extension of time to perform the work is required for this change order. The Sanitation District and Contractor agreed that the added costs described above constitutes full and equitable consideration for all the impacts occurred by the Contractor, and no other 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: November 6, 2003 Original Contract Time: 485 Calendar Days Original Completion Date: March 4, 2005 Time Extension this C.O.: 17 Calendar Days Total Contract Time Extension: 352 Calendar Days Revised Contract Time: 837 Calendar Days Revised Final Completion Due Date: February 20, 2006 Projected Contracted Completion Date May 31, 2006 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $4,712.000 Prev. Authorized Changes $ 1,299,055 This Change(Add) (PedusE) $ 1,251.353 Amended Contract Price $7,262,408 l 1 Page 7 of 7 ORANGE COUNTY SANITATION DISTRICT 108"ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Morrow-Meadows Corporation C.O. No.: Ei ht 8 Date: May 24, 2006 Job: Secondary Treatment Facilities Process Upgrades at Plant No. 2 Job No. P2-47-3 Consultant: Lee& Ro Board Authorization Date: May 24, 2006 ORANGE COUNTY SANITATION DISTRICT Recommended by: Tod Haynes, P.E. Date Engineering and Construction Division Manager Approved by: David A. Ludwin P.E. Date Director of Engineering Accepted by: MORROW-MEADOWS CORPORATION Contractor Date EDMS 003807019 PDC COMMITTEE Mee"Dave To Bd.of dr. 05/04/06 05/24/06 AGENDA REPORT HernNumber rtea,Nen� J _ PDLU641 Wel Orange County Sanitation District �Collecti m Facilities FROM: David Ludwin, Director of Engineering Originator: Martin Dix, Project Manager SUBJECT: ROCKY POINT PUMP STATION REPLACEMENT, CONTRACT NO. 5-50 GENERAL MANAGER'S RECOMMENDATION Approve a Professional Services Agreement with Malcolm Pimie, Inc. providing for engineering services for the Rocky Point Pump Station Replacement, Contract No. 5-50, for an amount not to exceed $2,475,973. SUMMARY • The purpose of this project is to prepare the construction documents necessary to complete the relocation of the Rocky Point Pump Station, and to construct a new facility that meets national and state codes, utilizing current Orange County Sanitation District (Sanitation District) Design Guidelines. The project will include the design of a new pump station and all appurtenances located on property acquired by the Sanitation District across the street from the existing station. • The Orange Coast College School of Sailing and Seamanship (College) is looking to expand their educational programs and build a two-story building and pedestrian bridge linking this property with their main educational facilities located directly across the street at 1801 West Coast Highway. Therefore, close coordination between the two agencies will be necessary throughout the project. • Requests for Proposals were sent to five engineering firms. All five firms provided proposals to the Sanitation District. The proposals were evaluated in accordance with defined Sanitation District procedures, and staff recommends the approval of Professional Service Agreement (PSA)to Malcolm Pirnie, Inc. • The amount requested is for preliminary and final design of the new Rocky Point Pump Station. Staff plans to request additional funds for construction support services, once the project has been bid and the magnitude of the work is known. PRIOR COMMITTEEIBOARD ACTIONS A PSA was approved with Lee & Ro on March 22, 2000 for$344,679. One amendment for an additional $149,344 was authorized on September 22, 2004 for a total not to exceed of $494,023. PROJECT/CONTRACT COST SUMMARY The PSA amount and budget necessary for the project are presented in the attached Budget Information Table. Authorization of$2,475,973 for Consultant design services is a.m.ea. 01m Page 1 being requested. The current budget for this project is being evaluated and will be revised during the next budget cycle. As a result, most of the funds for this authorization will come w1Yi from project contingency. BUDGET IMPACT ® This item has been budgeted. (Line item: FY05-06 CIP, Section 8, Page 22) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION Malcolm Pimie was ranked number one by five of the six reviewers. Malcolm Pimie demonstrated the best understanding of the requested work and submitted a thorough plan for execution. Malcolm Pirnie is also performing very well on another Sanitation District pump station project. Please see the attached summary of staff evaluation of proposals. The existing Rocky Point Pump Station is located at 1575 West Coast Highway in the City of Newport Beach. The pump station lies within the boundaries of the Balboa Bay Club (1221 West Cost Highway), adjacent to the College. The pump station was built in the early 1940s for the City of Newport Beach and later transferred over to the Sanitation District. The new replacement station will be located on a four-parcel site, 1700 through 2000 West Coast Highway, across the street from the College. In 1999, the Sanitation District hired MacDonald Stevens Engineers to prepare an assessment report on 17 pump stations throughout the service area. The report entitled, Rehabilitation of Outlying Pump Stations, documented the deficiencies, and recommended modifications or relocation for each pump station. The report found deficiencies related to the latest federal and state codes (e.g. seismic, electrical, safety), the Sanitation District standards pertaining to operation, maintenance safety, and spill prevention. In addition, the proposed pump station needs to increase in capacity by about 2 mgd. This is required to meet the future peak wet weather flow rates predicted by the most recent Flow monitoring and modeling. In March 2000, the Sanitation District entered into a PSA with Lee & Ro, Inc. for design, and construction support services for the replacement of the Rocky Point Pump Station. In October 2003, Lee & Ro, Inc. performed a Site Study to investigate possible locations for the new pump station. Lee& Ro, Inc. also supported the CEQA investigation, prepared a temporary flow monitoring study, and performed a hydraulic analysis of the Newport Beach force main network. In October 2004, after completing an Environmental Impact Report, the Sanitation District purchased the property for $2,600,000. In September 2005, Lee & Ro, Inc. was directed to stop work. Their remaining design budget was not adequate to prepare the preliminary design report. Therefore, the Sanitation District prepared and released a new Scope of Work that included many new design elements that were not anticipated in the original Lee & Ro, Inc. Scope of Work authored in 1999 prior to selecting a site for the replacement pump station. The new Scope of Work elements included: demolition of the existing on-site buildings (four buildings), CEQA mitigation measures (i.e., gas collection and treatment, geologic/geotechnical mitigation, preparation of traffic control plan, etc.), modifications to the existing gravity A«..b. 01, M Page 2 sewers and force mains on the Highway, community outreach, building architecture compatible with the "Mariner's Mile Strategic Vision and Design Framework," and V coordination of joint project with the neighboring College. On going coordination with the College is a need that resulted from discussions concerning the College's desire to expand their existing School of Sailing and Seamanship's vocational program located directly across Coast Highway at 1801 West Coast Highway. Expansion is necessary since their exiting facility lacks adequate parking and classroom space to accommodate future enrollment. This joint project would solve the College's land shortage and benefit the Sanitation District through the sale, lease, or transfer of the excess land since only a portion of the site is being utilized for the future pump station leaving a significant portion of the property available for other uses. In an effort to achieve the multiple public benefits represented by both projects, the Sanitation District and College staff drafted the terms of a joint project agreement Memorandum of Understanding (MOU). The MOU states that both agencies will cooperate to build their respective projects for the greater benefit of the public. The Sanitation District will build a replacement pump station while the College will build a new school expansion; together both projects represent a greater good to the communities they serve. In December 2005, the Sanitation District Board of Directors approved the MOU and authorized the General Manager to negotiate with the College concerning the sale, lease, or transfer and eventual use of the unused portion of the Rocky Point Pump Station property at 1700-2000 West Coast Highway. ALTERNATIVES "No action"would stop the replacement of the Rocky Point Pump Station. The existing station is nearly 70 years old, and the 1999 assessment report recommended replacing the existing station principally due to the lack of space for pumps capable of meeting projected peak wet weather flows. Also, during the land acquisition process, the Sanitation District entered into a "Conveyance, Disassembly and Abandonment Agreement"with the Balboa Bay Club, which "No action"would violate the agreement, and stop progress towards the abandonment of the existing Rocky Point Pump Station which resides in the parking lot of the Balboa Bay Club, and "No action" would also halt the joint project with the College. The newly acquired land would remain undeveloped by the Sanitation District. CEQA FINDINGS In August 2004, the Sanitation District's Board of Directors certified the Final Environmental Impact Report implementing the Rocky Point Pump Station Replacement Project, Contract No, 5-50; Making certain findings relating to environmental effects identified in the Final Environmental Impact Report; and adopting a Mitigation Monitoring and Reporting Program. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Summary of Staff Evaluation of Proposals MD:kf H:\ntglobaMgenda Draft Repo1s\PDC\5-50 AR PSA.dm R".." o,.,. Page 3 5-5e BUDGET INFORMATION TABLE Replacement of Rocky Point Pump Station CONTRACT NO. 5-50 ORIGINALPROPOSEDOINAL CURRENT PROPOSED FUNDS THIS T ESTIMATED ESTMATEq BUDGET PROPOSED TOTAL PROJECTIPNASE AUTHORIZED PROJECT REVISED AUTHORIZED TO AUTHORIZATION EXPENDITURE EXPENDEDTO. INCREASE AUTHORWTON ' BUDGET BUDGES IOECREABE BUDGET GATE ' REQUEST TO DATE DATEI%1.' Phess l-Pmjed Dmb nl $ 10,724 3 10,232 3 10.02 S 10,232 S 1002 S 12.701 124% PIwa 2-Pm11m1ne De ' n S 421018 $ W9160 S 1326284 3 1924.4 S 383.160E 13202114 S 1.924.444 $ 530.376 33% Phase 3-Design S 3.2110.2051$ 3.314.143 S 1130a39 S 9464032 - $ 3.31410 3 11W ES 3 4.4641.8321$ 2,529.816 SS% Phase 4-Canstl n S 4202885 S 17188608 3 17103608 3 SBOOW $ WO= $ ]]] 0% Phase 6-UOmm nin $ 140.119 3 179.000 S 173000 4" $ 86,0m S 68000 $ SS632 104% Phase6-Class-Out 3 36030 E W 00 $ WWD $ 17000 S 17W0 S 0% Mau)-COntin e S 702.1N $ 3290061 S 2476013 $ 814,108 '; $ - PROJECT TOTAL S 91361,833 $ 24003822 $ - $ 24,609,622 If S 4,616.636 $ 2.476,973 S 7.091,508 S 3,36A301 4m Pelmbunable Cosb PROJECT NET S 0,381.933 $ 24,1103,822 1 S -IS 24.6D9.622 c S 4,616,636 S 2,476,373 $ 7,091,508 1 3 3.362,301 47% PSINContseel Devi nPSA 3 Men 3 404.023 3 24]88]3 1$ 2.969,990 S 41D.121 $ 206973 $ 2,686,109 11 S 261.923 0% Cone dbnCOn88M $ 4.011802 $ V1450,409 - S 1645040 I'f 3 DD33D)Bs4 Pe381 Professional Services Agreement Status Report Contract Nos.: 5-49, 5-50, 5.51, 5-52 Total Project Budget: $71,600,000 Consultant: Lee & Ro, Inc. Start Date of Project: March 22, 2000 Date Amendment Descrlptlon Cost Accumulated Costs 3/222000 Original PSA Engineering & Construction Support Services $1,149,801 $1,149,801 3272002 1 Additional Engineering Services $495,247 $1,645.048 9242003 2 Additional Engineering Services $447,047 $2,092,095 9222004 3 Additional Engineering Services $818,093 $2,910,188 5252005 4 Additional Engineering & Construction Support $553,312 $3,463,500 Services 2222006 5 Additional Engineering & Construction Support $1 017,316 $4,480,816 Services for Bitter Point Pump Station Only Pending 6 Additional Engineering & Construction Support $328,566 $4,809,382 Services contracts 5-51 and 5-52 only Note: Project Budget shown is for Contracts 549, 5-50, 5-51 and 5-52. EOMS:003805073 Remed 01109106 J REPLACEMENT OF ROCKY POINT PUMP STATION CONTRACT NO. 5-50 Summary of Staff Evaluation of Proposals The following consulting firms received Requests for Proposals: • Brown and Caldwell • CDM • Earth Tech • Malcolm Pirnie • Metcalf& Eddy All five consultants submitted a proposal. Representatives of the five firms attended the mandatory pre-proposal meeting conducted on February 1, 2006. All five consulting firms submitted responsive proposals, which were received on February 23, 2006. An in-house Evaluation Team, including six Sanitation District staff members from the Engineering, Operations and Maintenance, and Regional Assets and Services Departments, was formed to review and evaluate the proposals. Each member of the Evaluation Team individually ranked the proposals. Each proposal was graded from one to ten (ten being the best) in seven weighted categories described below: 1. Project Approach and Understanding of Scope of Work (Weight 9) - Rates the team's understanding of the Scope of Work included in the RFP. 2. Plan for Managing and Performing the Work (Weight 9)- Rates the team's approach to address the technical issues on the project, methodology, and task breakdown. 3. Staff Qualifications (Weight 9) - Rates team member's educational background, professional qualifications, experience, and roles as they relate to the Scope of Work for this project. 4. Related Experience (Weight 8)- Rates the team's recent experience on applicable projects as it relates directly to the Scope of Work. 5. Team Organization and Use of Sub-Consultants (Weight 4) -Addresses the appropriateness of assignments to consultant staff and/or subconsultants to consultant. Syr 6. Proposed Schedule (Weight 4) — Rates the consultant's proposed schedule as to understanding the schedule drivers and meeting the Sanitation District needs. 7. Reliability Centered Maintenance (Weight 7)— Rates the consultant's knowledge of functions and associated desired standards of performance of the design assets from a maintenance point of view. All five proposals were evaluated and the rankings were complied on March 16, 2006. Based on the evaluation reports received from the evaluators, the five consulting firms were ranked according to the score achieved. The results of the evaluation are as follows: 1. Malcolm Pirnie 412 points 2. CDM 374 points 3. Earth Tech 373 points 4. Brown and Caldwell 342 points 5. Metcalf& Eddy 332 points Compiled scores ranked Malcolm Pirnie as the most responsive proposal. The following is a summary of how the evaluation team collectively viewed the top ranked firm: The overall consensus was that Malcolm Pirnie's proposal was exceptional in project approach and understanding of the SOW, and exceeded the others in plan for managing and performing the work, staff qualifications, related project experience, and team organizations (see table below). Judging Criteria Malcolm Pirnie's Rankin Project Approach and Understanding of Scope Second of Work Plan for Managing and Performing the Work First Staff Qualifications First Related Experience First Team Organization and Use of Sub- First Consultants Furthermore, Malcolm Pimie's team qualifications are superior, consisting of the same project team that is currently completing work on the Ellis Pump Station (Project 1 -10). According to the Sanitation District's Project Manager for the Ellis Pump Station, Malcolm Pimie's team is performing very well in meeting project objectives and milestones. They have exceeded his expectations and demonstrated their knowledge of pump station design, Sanitation District v Engineering Design Guidelines, and overall knowledge of Sanitation District procedures during the course of this very challenging and time sensitive project. Fee Proposals On March 16, 2006, the technical proposals, Evaluation Team rankings, and the sealed fee proposals were presented to the Engineering Management for review and the sealed fee proposals were opened. The fee proposal summary for each of the consultants is as follows. • Brown and Caldwell $2,246,709 • CDM $2,358,052 • Earth Tech $2,811,832 • Malcolm Pirnie $2,680,694 • Metcalf& Eddy $1,646,782 The overall fees proposed by Malcolm Pirnie are within the upper range of the top 4 ranked firms. The Sanitation District's staff met with Malcolm Pirnie to clarify the requirements of the Scope of Work. During these meetings the fee was reduced by $310,577 based on the consolidation of meetings, workshops and the elimination of tasks not required by the Scope of Work. An additional scope item was also added increasing the hydraulic modeling effort and sequencing this work prior to all other scope elements. Sanitation District staff was concerned that the new Rocky Point Pump Station may negatively impact the performance the existing Bay Bridge and Lido pump stations. Since these stations operate in parallel and pump into the same force main system, additional hydraulic analysis is necessary to determine the best way to operate the stations using life cycle cost as the basis. Malcolm Pirnie agreed to perform this additional analysis for $104,856 which is reflected in the negotiated fee presented in Table 1. The net fee reduction from the original proposal is $204,721. Low Cost Proposal The bottom ranked firm, Metcalf& Eddy, proposed a fee significantly lower than the top ranked consultants. After careful review, the reason for the lower fee is as follows, Metcalf& Eddy is currently not performing work for the Sanitation District and have not performed work in the last 6 years; therefore, they are not familiar with our Engineering Design Guidelines and may have underestimated the level of effort to comply with Sanitation District design standards. • Staff believes Metcalf& Eddy underestimated the total number of sheets �( required to perform the pump station design. Metcalf& Eddy proposed 95 plan sheets, while the top ranked firm Malcolm Pirnie proposed 143 plan sheets. The sheet count is indicative of the work that must be performed to complete the Scope of Work. Previous Change Order Performance History with the Sanitation District The recommended consultant has not designed any projects for the Sanitation District that have completed construction; therefore, no previous change order history is available. Recommendation Table 1 compares the ranking by each evaluator. Table 2 compares the final negotiated level of effort and fee from Malcolm Pirnie and the proposed level of effort and fee from the other proposing consultants. Malcolm Pirnie has shown a thorough understanding of the project, including the Sanitation District's expectations in terms of project approach, plan for managing and performing the work, staff qualifications, and related project experience. Staff believes that Malcolm Pirnie's team has extensive experience as demonstrated by the Ellis Pump Station project. Their team proposed the most effective project methodology addressing all project concerns including quality assurance and quality control. Staff recommends that Malcolm Pirnie be awarded the Professional Services Agreement (PSA), for the services for the Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total fee not to exceed $2,475,973. W TABLE 1 TECHNICAL PROPOSAL EVALUATION Consultant Malcolm CDM Earth Brown Metcalf& Pimle Tech & Eddy Evaluator Caldwell Reviewer A 435 288 326 273 279 Reviewer B 429 357 405 362 349 Reviewer C 419 393 376 340 361 Reviewer D 411 357 403 364 346 Reviewer E 410 408 352 359 296 Reviewer F 1 369 442 1 376 353 1 361 Total Score: 2473 2245 2238 2051 1992 Average Score: 1 412 374 373 342 332 Rankin 1 2 3 4 5 TABLE 2 FEE PROPOSAL EVALUATION Consultant Malcolm CDM Earth Brown & Metcalf& Pirnie (1) Tech Caldwell Eddy Evaluator Total Hours 16,562 14,357 18,289 11,350 9,687 (including major Subconsultants Total labor Fee $2,182,865 $2,012,466 $2,395,632 $1,741,575 $1,257,693 (include. major Subconsultants Average Labor $132/hr $140/hr $131/hr $153/hr $130/hr Rate Total Direct $167,464 $125,444 $165,214 $73,200 $127,789 Costs Minor $125,644 $220,142 $250,986 $431,934 $261,300 Subconsultants Total Fees: $2,476,973 $2,358 062 $2 811 832 $2,246,709 $1 646 782 Planned Sheet 143 112 116 107 95 Count Total Fee $17,314 1 $21,054 $24,240 $20,997 $17,335 /Sheet (1) Negotiated fee MD: EDMS: 0038D8148 PDC COMMITTEE MeebngDo TOsd.oron. 05/04/06 05/24/O6 AGENDA REPORT Rem Number Item Number P000642 14(f) Orange County Sanitation District ®C4li•ctt•nc Faeie ion FROM: Dave A. Ludwin, Director of Engineering Originator: Alberto Acevedo, Project Manager SUBJECT: COAST TRUNK SEWER REHABILITATION, CONTRACT NO. 11-26 GENERAL MANAGER'S RECOMMENDATION (1) Approve Amendment No. 1 to the Professional Design Services Agreement with Malcolm Pirnie, Inc. for preparation of construction documents and to provide construction support services for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26, providing for additional engineering and construction support services at no additional cost due to the savings realized during the preparation of the Preliminary Design Report; and (2) Approve a reduction of$638,505 to the agreement reducing the total amount to not exceed $1,580,825. SUMMARY • The original Professional Design 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 included 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. • The PDR report recommended that the solids deposited in the pipeline should not be removed at this time because they are protecting the lining from further deterioration. RmWW. MIN100 Page 1 The PDR recommended preparation of the construction documents for the rehabilitation of the portions of the pipeline and manholes with deterioration of the protective lining. Approximately 8,300 feet of pipeline and 13 manholes will require rehabilitation of the protective lining PRIOR COMMITTEE/BOARD ACTIONS Please see the attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY The original PSA awarded to Malcolm Pirnie, Inc. was for an amount not to exceed $2,219,330. This PSA included an amount equal to $1,462,175 for the prime consultant which will be reduced by $407,850 for a revised amount equal to $1,054,325. In addition, there are cost savings from the subconsultants in the areas of surveying, geotechnical investigations and structural assessments, totaling $230,655 for a total project savings of$638,505. The work reduction was due to the opportunity to complete the pipeline investigations without having to bypass sewage and to the fact that one third of the pipeline was in good condition. Authorization of Amendment No. 1 will provide for the final design and construction support services. Per the attached proposal from Malcolm Pirnie, Inc., the fee for final design and construction support services is estimated to be $302,494. BUDGETIMPACT ® This item has been budgeted. (Line item: Section 8, Page 41) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) To account for the reduced rehabilitation project that resulted from the Preliminary Design Report, the total project budget of$20,964,000 will be reduced in FY 06/07 to $10,949,800. To accurately account for consultant and staff costs, it will be necessary to transfer $400,000 from Phase 2-Preliminary Design into Phase 3-Final Design. Please see the attached Budget Information Table. 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 Boise Chica area. Due to environmental constraints, the development never materialized. a . a W Page 2 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 more shallow than planned; leaving exposed a portion of the bare concrete pipe under the edge of the PVC lining. 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. The original PSA provided for the physical inspection of the entire Trunk Sewer. The Consultant prepared a final document to report the assessment of the structural conditions of the pipeline, lining integrity, and rehabilitation options. Amendment No.1 to the PSA with Malcolm Pirnie, Inc. will provide for preparation of construction documents and construction support services for the Coast Trunk Sewer Rehabilitation, Contract No. 11-26 at no additional cost to the Orange County Sanitation District. A detailed list of the design elements and services during construction to be provided under this Amendment No. 1 is provided in the attached proposal letter from Malcolm Pimie, Inc. dated April 19, 2006. ALTERNATIVES No alternatives are proposed. CEQA FINDINGS This project was included in the Orange County Sanitation 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 Letter from Malcolm Pirnie, Inc. dated April 19, 2006 AAC:eh:bm RVAglobal'Agmda Draft ReporWPDC111-26 DRAFT AR AMENDMENT NO. 1.doc R�. aawiw Page 3 BUDGET INFORMATION TABLE COAST TRUNK SEWER REHABILITATION, CONTRACT NO. 11-26 ORIGINAL CURRENT PROPOSED FUNDS THIS ESTIMATED ESTIMATED AUTHORIZE PROPOSED PROPOSED TOTAL PROJELTIPNA6E PROJECT BUDGET BUDGET INCREASE AUTHORIZED TO AUTHORIZATION EXPENDITURE TO EXPENDED TO 04/OSI BUDGET IFY (FY 06106) IDEOREASE REVISED BUDGET DATE REQUEST AUTHORIZATION DATE DATE(%) Pnaae l-Pm ecl Dewlamenl $ 66000 $ 93000 S - S 93.000 5 66.000 S - S 66.000 $ 92]93 141% Phase 2-Pmlimina Design f 2A05AW $ 340400E 5 - S 2.404.00E S 2401000 S 400.00E $ 3001.00E S 1M.731 O% PM.3-D%i n S 1.050.000 S 1.50.00E S - S 1.06000E $ 272,000 S 400.00E 3 672,000 S IN 0% P6a4e4-CPmau69en S 10.T0XSN f 14.5)E No f - S 14,570.O0D S - S - S 4,176 SDNrID Pane S-CEmmissom S 130.00E S 13090E S - S 130.0E0 S - S - S - f SDNNI PEe>ee-Cbse-Oul f N.m $ 35.900 S - S ]5.000 S - S f - $ SDNAI Pllese)-LEnO S 2.22).ON S 2.665.00E S - 5 3698.00E S - S MOJEDTTOTAL S 11935.00E S 20,964,000 S - S ]0.9W.OE 1 2T45.000 S - S 2.742.00E 1 S 1.51 BU A. Re bursaMa Casa PROJECT NET S I6.6]3000 S -.4000 5 - S 20,BWA00 I 1 1 2742,000 1 S -IS 274200E 1 5 1.51.0.1E 42% PSA/Conlrf0l Des,,PSA �1 -IS 2219.030 S 2.215.33E 6 2219.9E S ".505) S 1.M.825 S 1.60.W0 W% Consuuclron Contract S I1.113.E00 S 13.366AN 1 f - $ 13.345AW 11 $ S eo9s%Jfe01% 11-26 8,W I Table 4(t)Fl006 Professional Design Services Agreement Status Report COAST TRUNK SEWER REHABILITATION, CONTRACT NO. 11-26 Total Project Budget: $20,964,000 Consultant: MALCOLM PIRNIE, INC. Date Amendment Description Cost Accumulated Costs 11/17/2004 Original PSA Coast Trunk Sewer Rehabilitation — Preliminary Design Report $ 2,219,330 $ 2,219,330 Pending Amendment No.1 Preparation of Final Design and to provide Construction Support Services $638,505 $ 1,580,825 11.26 PSA Status Report.doc 04/27/06 EDMS: 003780193 • � � • Me1c01m'P'me.alnc^ lade:;[: MpCPCMOCxi SttPIPONM 71 m_.1 ��J]}:y [xWNE[RS:SCICxy53 lNY C0Y401 i14T5 April 19, 2fHJ6 Mr. Alberto Acevedo, RE Orange County Sanitation District 10844 Ellis Avenue Fountain Valley,CA 92708 Re: Amendment No. I Professional Service Services Agreement Coast Trunk Sewer Rehabilitation Contract 11-26 Purchase Order Number 102082-OB Dear Mr. Acevedo: Attached please find our fee estimate for the scope of work under Amendment No. 1. We have included die Scope of Work. Labor Hour Matrix. Labor Cost Matrix, Summary of ODC's.Cost Summary. and revised Preliminary list of Drawings. We trust these are responsive to your needs and should you have any questions or need any further information. please do not hesitate to call us. Sincerely. MwM ALCOLM PIRNIE. INC. �.. DEI:rojectanager COAST TRUNK SEWER REHABILITATION AMENDMENT NO. 1 PRELIMINARY LIST OF DRAWINGS Sheet Drawia No. Description 1 G-0001 Title Sheet 2 G-0010 Key Map and Index Sheet 3 C-1001 Bypass Plan—S4-inch Sewer—Manhole CST0045 to CST0035 4 C-1002 Bypass Plan-54-inch Sewer—Manhole CST0070 to CSTDW 5 C-1003 Bypass Plan—54-inch Scwer—Manhole CST0095 to CST0070 6 C-10D4 Bypass Plm—724nch Sewer—Manhole CST0105 to CSTOD95 7 C-5001 Pipe Repair Details 8 C-5002 Pipe Repair Details 9 C-5003 Manhole and Street Repair Details 10 C-5004 Odor Control Details 11 C-5005 Odor Control Details 12 C-7001 Traffic Control Plan—Intersection of First and PCH 13 C7002 Traffic Control Plan—3 Entrances to Beach Parking Lot 14 C7003 Traffic Control Plan—3 Entrances to Beach Parking Lot Coast Trunk Sewer Amendment No. I DRAM'4/19/2000 Phase 3,45- Final Design,Bid Services,and Construction Managemnent Services FINAL DESIGN SERVICES INCLUDING: • MALCOLM PIRNIE,INC. Raw Labor $ 92,327 Fringe Rate @ 51.0% 51.0% X Raw Labor $ 47,087 Burdened Labor (Raw Labor+Fringe $ 139,414 Rate) Overhead @ 95% $ 132 443 (95%X Burden Labor) Subtotal(Burden $ 271.858 Labor+Overhead) Profit @ 9.43%(overhead+ $ 25,636 burdened labor) Total Direct Costs, not $ 5 000 Direct Costs,not to exceed to exceed TOTAL-Malcolm Pimis,Inc.Consulting Services,not to exceed $ 302,494 Subconsultant Services Subconsuhant fees at hourly rates,Not to exceed Subtotal: $ - TOTAL For Project Development Services,Not to Exceed $ 302,494 ATTACHMENT RFP-1 Coast Trunk sewer Relbabllknalon CONTRACT NO.11-26-AMMENOMENT NO.1 Labor Hour Matrix WMNauY Tul nem Proj Mpr ONOC PmiEq S=Enp.neer Enor., JlkbewlT.Iuawxi 'Rex Ten Hour` EC FA ER ES E{ E] Te AS R.......Warrant,No.1 Pon P erwn1`r..n I A I pusbe ki,"paxesubl. @ t0 B {0 I.e2 uodro NANIN 0 le In. IW 6WTMn 1 9p 9.Twur Whear., 0. Y M IwIM mOepY 201 a...ubauap'-eMRfon R 10 10 0 W 2w CONutl mue"' B 10 ] be TRM selste an no 59 ep ui .0-West"bob lUlp111OnA, a11rNW 3.01 pl.m Mxurq Pmremmix, B 0 12 0 ]0 2.w CaltluelMmnq 0 0 12 -771.1 iW Su0i01o1 I{ I{P. 4 e {R an Bn aN we I..,PMpRURIN4rp PMWmelbn I] be B {0 102 Gar.I k1wel, 0 10 IO T SupIOY le ]0 p 50 5. O`On 5.01 Dsbxn SWmiwI I10611 N Ie5 M m IN 5p5 SA]Dnpn 6w wau v3per"I 2. 110 RB IN 24 w0 a 03 05 W VA.M.W.I. 0 IB 1) {I N Iw 6WF Fiat D.Wt orellpl 0 .0 IB ]0 a 'anB4O,-llon`NCwabw MCx, IB 22 {0 sm Pnminnq { w u TRw6WTa N) 2m {w 120s L `n Gen`0Yc pn look ..Or An"PreC.r.r. CWwbx,uu Sm Tam 0 a 12 e.02 am2e4gcmuuutoreamene" 12 {e 52 6.w lekvunnI lenEmea Contour. 2 31 w e.w SIMp OYynB anew 2p 20 10 Iw 605vvxx,Malwx Rvrww I ]0 2 w O.M RFb I at, 2 w ,"Oh. p0EFn { 18 I6 ]] B.w AnvN maxia, 20 20 w 6w Anvrd Waer Mpelllp{ 2p 20 W link 6ub)a` ex 78 re 14 {w Mk"w 1.01 Paler Pane na be { be 2.O25aq McProu"l 10 N w S.OS Plgo[I Sxperan p I B f,09 P,O.I rl.- N la 5 16 ).05 Quemb n z, N w M ).O6 WWnY Cam�tl w w w 7.01 MwOaxwe to BUMYYJr{M` 'All Cw,brawnMMWHrpaxwe { e 1p TW B T 14 w 1. xx N) ATTACHMENT RFP-2 Comical Trunk Sewer Rehablllatalon CONTRACT NO.11.26-AMMENOMENT NO.i Labor Coal MalMi Inmrcoq Task for Pr,sk" ONOC Prat EW Ji Ergircm TVNinian Solari TOMICa[I &INanW labx qel 129,95 3 109.23 S 76M )A). RANI MrMMHP4S. 4d7u`5 : a:gx !; ;ITfl n 1; al _ 'I ;r _r 4womw 1.Tamm Marlin No,1•POR Of"iFlMn 101 RgMre Nak'mp P....woof. 5 ISN $ L I" $ 6 k 2M S &31. I.o2 C..Near S T)B $ 1 704 f i i 5 lAa, Tank Sabi. 6 2.337 S S 2 fall 4.1136 2. 01 retook Nv.2�MS1eNma1 RVM1YNI[Nw RetloHe R. Pqua Mxl'rrg Prewkar. S ]19 3 f MS S ]SB i f aM i 1,9a5 2.02 CxMUM 61ee0ry TM SubTro 3S f 1 f m FIBS S.Tpm MFellnp Xe.S•farReM1YII1N pn .1 [ 5.01P11.1.1hNOrp PmunMMn 5 IASB $ S 612 f No S S 226 S MM SNCNtlucllAoanxl S m S S 459 { i i f 1,2N Task SYToS IA16 $ S 1071 f s30 S S m 3 3 4.Fkul BFrlpn Kickoff Meeting ,.of Prepxe M.",Presen4Nn S I'm 3 5 1.530 f f $ P'N f S,BIF 4.02 GOMsct Mecall S )]9 S 5 765 i f S { +Sari Task Sublale S 2.337 S 3285 f 6 3 225 S rim s.FInM B*. 5.010eYpn5YMaY 110511 S 3.117 S S I2,622 i 3.939 $ II.724 S 6P i 32.1in 5.02 bxgn Subminel a)rt(09291 S 3.1V S f i,.1s i 4AM $ Salo S 6" S 25.Sa9 6.02erar, sWmlam 2n vYenlan N04F Fko s )]9 5 { 2.M 5 SM f 2A59 S an f C515 Sm Fh000l rs"kl $ IA]9 S $ a.SN f Ball $ iSB] 6 238 S 6,510 SM Fro-io[al CorrsWgbn Cml S f S I.3N f 1.466 S S S 2.6W S.W Pprmillbq S f { 306 { f f f . TmMSWTo 0 I SIS 12S41 2.6F1 ) S 2258 1 )470]6D 6 101 Al CON1ruC8an uaW C 9a 601 Allmtl Pro Ccnslruclian fonlxxw eM 511a T. S ))9 f S 459 $ f $ - S 113e 502ai.kyfgne0uttbn M&rw" $ 1.55e f S 3.M f S $ S 4,618 6.01 TONpIwwFavlEmall ConeuOxlan S MO S S 2.907 S f - f $ 3.I67 504SMp0m"Revim f f { MD f SXk S - $ 2112 f 5.018 6.05 Vanua Manual Reeiev f S f 612 f 1.374 $ $ M S 2.042 6a6 RF1[ $ S f 512 S 1.374 S S 56 6 ZNi Oc"los orlac f 51B S f I,2N S AS f 3 f 241e 6.08 ANM shmorfN S 259) 6 S 1."a f Is 6 $ 4.1V 9Ae Mertl Tor MCNInp[ 3 2.87 f f ISM f $ 6 f 4.12) Task Sub]a nn u4a >I i Is MIS Ulm T.R.T.Menep.m.m ).Ol Pki MCTORn { S $ 1.224 S $ - S 113 f 1,337 )A2 ewpe MaroN... f 1}N S S 2.216 S S f S J,SN ).N Prcp[1 S[M1NUNp f S { 612 $ f i S 612 ).N No.RepwM, $ f f 918 f $ S M f IA03 7.09 Pmpnl War, $ 3 f Ime S S $ 1.354 S 3.I90 ].N W[Ilty Cvnb4 $ S a.SSB f JAM S S $ S ].0]Mxxm aaMlal9uavnaullmae $ 3 f 6 f 6 5 7.01f000Ninallan µaaalMr Polxb $ 519 3 f 612 f S $ 5 1.131 cask Sol f Iata $ aa69 f SOBS] S S 3 L551 5 Ie PS 1 MI ` !I ip's 131 11"b B52iS ':tjo '1391ie� ATTACHMENT RFP-2 Coast Trunk Sewer Rehabiitataion CONTRACT NO. 11-26 - AMMENDMENT NO. 1 ODCs PHASE 2 1 3 1 4 1 5 6 Total Cost Subconsultants � ps :also , Long Distance Toll Charges n .',,,^i r:= $ - Facsimile Transmission Charges ylb $ Reproduction Charges '.{ �� 4r $ - Overnight Mail Delivery& Messenger Service %` .{;r:ssf ' 1,000 $ 1.000 Postage $ - Printing 1,500 $ 1,500 Film Processing $ Computer Usage Mileage ,Y 1,500 $ 1,500 Temporary Staff ;rl�i $ - Office Supplies sir 5 `x' 1.000 $ 1,000 Travel& Per Diem }�rw s� $ - Software $ - Other ODCs(Please list) t�n. . $ - $ $ $ M $ Total PDC COMMITTEE roam•'oate TOBI a(qr. OSIO4106 05/29/O6 AGENDA REPORT It Number Rem Number P000643 IMa) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Chuck Lee, Sr. Construction Inspection Supervisor SUBJECT: PROFESSIONAL SERVICES AGREEMENTS FOR MATERIALS TESTING AND GEOTECHNICAL ENGINEERING SERVICES, SPECIFICATION NO. PSA-2003-175 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Professional Services Agreements with Geo- Matrix Consultants Inc., Kleinfelder Inc., and Smith-Emery Laboratories, and Amendment No. 3 to the Professional Services Agreements with Ninyo & Moore Geotechnical and Environmental Sciences Consultants to provide for materials testing, inspection, and geotechnical engineering services, Specification No. PSA-2003-175, for a one-year period for an amount not to exceed $150.000 for each agreement ($600,000 total). SUMMARY • In May 2004, the Board of Directors approved Professional Services Agreements (PSA) with Geo-Matrix Consultants Inc., Kleinfelder Inc., Smith- Emery Laboratories, and Ninyo & Moore Geotechnical and Environmental Sciences Consultants for an amount not to exceed $150,000 for each agreement for Fiscal Year (FY) 2004/2005 ($600,000 total), with the option to renew for two additional one-year periods for an amount not to exceed $200,000 for each agreement for FY 2005/2006 ($800,000 total), and for an amount not to exceed $150,000 for each agreement for FY 2006/2007 ($600,000 total). • Staff has determined that a one-year renewal is required to successfully complete materials testing, inspection, and geotechnical engineering services on capital projects during the next fiscal year. • The PSA amounts for each consultant will be used on an as-needed basis. Materials testing, inspection, and geotechnical engineering services are budgeted on each capital project as required. All services will be charged to the project budgets. Page 1 PRIOR COMMITTEEIBOARD ACTIONS Amendment No. 1 to the PSA with Ninyo & Moore Geotechnical and Environmental Sciences Consultants is for additional funds for FY 2004/2005. See PDC Item PDC05-43. Amendment No. 2 to the PSA with Ninyo & Moore Geotechnical and Environmental Sciences Consultants and Amendment No. 1 to the PSA with Geo-Matrix Consultants Inc., Kleinfelder Inc., and Smith-Emery Laboratories were for additional funds for FY 2005/2006. See PDC Item PDC05-44. Please see the attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY The PSA renewal amounts with each consultant for FY 2006/2007 are listed in the table below. The amounts were Board approved in May 2004 and derived by staff by considering present materials testing, inspection, and geotechnical engineering services fees and scheduled future capital projects. Consultant FY 06/07 Ninyo & Moore $150,000 Smith-Emery $150,000 Geo-Matrix $150,000 Kleinfelder $150,000 TOTAL $600,000 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) This item does not impact the overall budget because it is not paid separately as a lump sum item. Materials testing and geotechnical engineering services funds have been included in the individual project budgets that require these services. They are expensed as the services are used on the projects. ADDITIONAL INFORMATION Staff will issue Requests for Proposals to interested materials testing and geotechnical engineering service companies next fiscal year for services to be provided in FY 2007/2008 through 2009/2010. The agreements will continue to require renewal for each year. Page 2 ALTERNATIVES None CEQA FINDINGS None ATTACHMENTS 1. Scope of Work—Attachment A 2. Fee Schedule with Escalation Rates FY 2006/2007—Attachment B 3. PSA Status Report—Attachment C CL:dm HMIg1o0aMgenda Draft ReportsWDOPSA-2003-175 AR Material Testing FY 0897 050406A= Page 3 ATTACHMENT"A" SCOPE OF WORK For MATERIALS TESTING, INSPECTION, AND OTHER GEOTECHNICAL SERVICES FOR COLLECTION SYSTEM AND TREATMENT PLANT PROJECTS SPECIFICATION NO. PSA-2003-175 TYPICAL TASKS SOILS: Provide lab testing for maximum density, sieve analysis and soil identification. Field-test compacted soil using sandcone and nuclear density meter methods. Inspect compaction efforts by contractors to achieve specification-required densities. On a less frequent basis, be prepared to conduct soil sampling to depths as required by the District. CONCRETE/MASONRY: Provide concrete, mortar and grout cylinder compressive testing, masonry prism test, and shear test on brick cores. Pick up test specimen from construction sites. ASPHALT: Provide density field testing and core sample collection and lab testing. Inspect compaction efforts by contractors to achieve specification-required densities. METALS: Provide tensile strength lab testing. Provide field testing for welds and inspect welding operations. REQUIREMENTS 1. Field technician shall be available upon 24-hour notice. 2. Invoices shall be coded with District assigned project title and job or contract number along with an adequate work description of the services provided. Monthly invoices shall be submitted to the District's Resident Engineer for each project. 3. All test results shall be clearly summarized in a standard report format and submitted to the District. 1 4. Field technicians shall provide a detailed daily report for each day of field testing and observation. 5. Field technicians shall be available for occasional night work upon 24-hour advance notice. 6. Equipment that requires calibration shall be calibrated prior to the work. Calibration costs shall be included in the total hourly rate for field service fees. H'.t "IP g\CM Mms oiMSimeyConttens\PSA20o3-175 Metmiel Turing FY 0607\PSA-2W3-175 Anacl tA-Materiels SOW FY Ob 07.d. 2 ATTACHMENT B FEE SCHEDULE FY 2004/2005, FY 2005/2006 AND FY 200612007 MATERIAL TESTING AND GEOTECHNICAL ENGINEERING SERVICES: Geo-Matrix Consultants Inc. Service i 6130105 r r r . r6 r r Compaction Testing/inspection (per hour $60.00 $60.00 $60.00 Concrete Testing (per each $20.00 $20.00 $20.00 Licensed Geotechnical Engineer (per hour $160.00 $160.00 $160.00 Test Specimen Pick-up $40.00 $40.00 $40.00 C TileNETWIP%C6ange06-43.2a doc ATTACHMENT B FEE SCHEDULE FY 200412005, FY 2005/2006 AND FY 2006/2007 MATERIAL TESTING AND GEOTECHNICAL ENGINEERING SERVICES: Kleinfelder Inc. Service l 6130106 1 1 l . 1 . 1 1 Compaction Testing/inspection (per hour $65.00 $68.00 $71.00 Concrete Testing (per each $20.00 $20.00 $20.00 Licensed Geotechnical Engineer(per hour $135.00 $138.00 $141.00 Test Specimen Pick-up $40.00 $43.00 $46.00 CTileNETWIP1Change\PSA-2o03-175 Attachment B-Kleinkper Fee Table FY 06-07.doc ATTCHMENT B FEE SCHEDULE FY 200412005, FY 200512006 AND FY 2006/2007 MATERIAL TESTING AND GEOTECHNICAL ENGINEERING SERVICES: Ninyo & Moore Consultants Service 1 11 1 01 . 711106 Ir Compaction Testing/inspection (per hour $69.00 $69.00 $69.00 Concrete Testing (per each) $20.00 $20.00 $20.00 Licensed Geotechnical Engineer (per hour $130.00 $130.00 $130.00 Test Specimen Pick-u $50.00 $50.00 $50.00 C.WileNETWIPIChange\PSA-2003-175 Atlachment a-Ninyo Moore Fee Table FY 05-07.doc ATTACHMENT FEE SCHEDULE FY 200412005, FY 2005/2006 AND FY 2006/2007 MATERIAL TESTING AND GEOTECHNICAL ENGINEERING SERVICES: Smith-Emery Laboratories Service t t t t t6 t . 6130/07 Compaction Testing/inspection (per hour $65.00 $57.00 $59.00 Concrete Testing (per each $15.00 $15.00 $15.00 Licensed Geotechnical Engineer(per hour $75.00 $75.00 $75.00 Test Specimen Pick-up $10.00 $10.00 $10.00 C:1FIIeNETVJIP\Change\PSA-2003-176 Attachment B-Smith Emery Fee Table FY 06-07.Goc ATTACHMENT C Professional Services Agreement Status Report Materials Testing and Geotechnical Engineering Services PSA-2003-175 Total Project Budget: $150,000 FY 2004/2005, $200,000 FY 2005/2006, $150,000 FY 2006/2007 Consultant: Geo-Matrix Consultants, Incorporated Start Date of Project: July 1, 2004 Date Amendment Description Cost Authorized Costs 5/26/2004 Original PSA Materials Testing Geotechnical Services for capital $150,000 $150,000 projects (FY 2004/2005) 5/5/2005 1 Materials Testing Geotechnical Services for capital $200,000 $350,000 projects (FY 200512006) PENDING 2 Materials Testing Geotechnical Services for capital $150,000 $500,000 projects (FY 2006/2007) C:\FIIeNETWIMChange\PSA-2003-175 Ahachmenl C-Geo-Mall%PSA Status Report FY 06-07.doc ATTACHMENT C Professional Services Agreement Status Report Materials Testing and Geotechnical Engineering Services PSA-2003-175 Total Project Budget: $150,000 FY 2004/2005, $200,000 FY 2005/2006, $150,000 FY 2006/2007 Consultant: Kleinfelder Incorporated Start Date of Project: July 1, 2004 Date Amendment Description Cost Authorized Costs 5/2 612 0 0 4 Original PSA Materials Testing Geotechnical Services for capital $150,000 $150,000 projects (FY 2004/2005) 5/5/2005 1 Materials Testing Geotechnical Services for capital $200,000 $350,000 projects (FY 2005/2006) PENDING 2 Materials Testing Geotechnical Services for capital $150,000 $500,000 projects (FY 2006/2007) CAReNET W IMChangeW643.3b.doc ATTACHMENT C Professional Services Agreement Status Report Materials Testing and Geotechnical Engineering Services PSA-2003-175 Total Project Budget: $150,000 FY 2004/2005, $40,000 FY 2004/2005, $200,000 FY 2005/2006 Consultant: Ninyo & Moore Geotechnical and Environmental Sciences Consultants Start Date of Project: July 1, 2004 Date Amendment Description Cost Authorized Costs 5/26/2004 Original PSA Materials Testing Geotechnical Services for $150,000 $150,000 capital projects (FY 2004/2005) 5/5/2005 1 Materials Testing Geotechnical Services for $40,000 $190,000 capital projects (FY 2004/2005) 5/5/2005 2 Materials Testing Geotechnical Services for $200,000 $390,000 capital projects (FY 2005/2006) PENDING 3 Materials Testing Geotechnical Services for $150,000 $540,000 Materials projects (FY 2006/2007) C:1Pi1eNET 1MChangMPSA-2003-175 Attachment C-Ninyc Moore PSA Status Report FY OE07.doc ATTACHMENT C Professional Services Agreement Status Report Materials Testing and Geotechnical Engineering Services PSA-2003-175 Total Project Budget: $150,000 FY 2004/2005, $200,000 FY 2005/2006, $150,000 FY 2006/2007 Consultant: Smith-Emery Laboratories Start Date of Project: July 1, 2004 Date Amendment Description Cost Authorized Costs 5/26/2004 Original PSA Materials Testing Geotechnical Services for capital $150,000 $150,000 projects (FY 2004/2005) 5/5/2005 1 Materials Testing Geotechnical Services for capital $200,000 $350.000 projects (FY 2005/2006) PENDING 2 Materials Testing Geotechnical Services for capital $150,000 $500,000 projects (FY 2006/2007) C:TWNETWIP%Changet SA-2003175 Attachment C-Smith Emery PSA Status Report FY O6-07.doc PDC COMMITTEE MeetlngDile Tesd.orwr. 05/04/06 os/z4/os AGENDA REPORT Item Number Item Number VDC06-44 14(h) Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Chuck Lee, Sr. Construction Inspection Supervisor SUBJECT: PROFESSIONAL SERVICES AGREEMENTS FOR SURVEYING SERVICES, SPECIFICATION NO. PSA-2003-176. GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 2 to the Professional Services Agreements with Forkert Engineering & Surveying, Inc., MDS Consulting, RBF Consulting, and Amendment No. 3 to the Professional Services Agreement with Bush & Associates Inc. to provide for surveying services for capital projects, Specification No. PSA-2003-176, for a one-year period for an amount not to exceed $150,000 for each agreement ($600,000 total). SUMMARY • In May 2004, the Board of Directors approved a Professional Services Agreements (PSA) with Forkert Engineering & Surveying, Inc., MDS Consulting, RBF Consulting, and Bush &Associates Inc. for an amount not to exceed $150,000 for each agreement for Fiscal Year (FY) 2004/2005 ($600,000 total), with the option to renew for two additional one-year periods for an amount not to exceed $200,000 for each agreement for FY 2005/2006 ($800,000 total), and for an amount not to exceed $150,000 for each agreement for FY 2006/2007 ($600,000 total). • Staff has determined that a one-year renewal is required to successfully complete surveying services on capital projects during the next fiscal year. • The PSA amounts for each consultant will be used on an as-needed basis. Surveying services are budgeted on each capital project as required. All services will be charged to the project budgets. PRIOR COMMITTEEIBOARD ACTIONS Amendment No. 1 to the PSA with Bush &Associates is for additional funds for FY 2004/2005. Amendment No. 2 to the PSA with Bush &Associates and Amendment No. 1 to the PSA with MDS Consulting, Forkert Engineering, and RBF Consulting was for funding FY 200512006. See PDC Item PDC0546. Page 1 Please see the attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY The PSA renewal amounts with each consultant for FY 2006/2007 are listed in the table below. These amounts were Board-approved in May 2004 and were derived by staff by considering average survey hours of past years, along with present survey fees and scheduled future capital projects. Consultant FY 06107 Bush &Assoc. $150,000 Forkert Engineering $150,000 MDS Consulting $150,000 RBF Consulting $150,000 TOTAL $600,000 BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) This item does not impact the overall budget because it is not paid separately as a lump sum item. Surveying funds have been included in the individual project budgets that require these services. They are expensed as the services are used on the projects. ADDITIONAL INFORMATION Staff will issue Requests for Proposals to interested surveying services companies next fiscal year for services to be provided in FY 2007/2008 through 2009/2010. The agreements will continue to require renewal for each year. ALTERNATIVES None CEQA FINDINGS None Page 2 v ATTACHMENTS 1. Scope of Work — Attachment A 2. Fee Schedule with Escalation Rates 2005/2006 —Attachment B 3. PSA Status Report —Attachment C CL:dm H?ntgloCaMgenda Draft ReP la DG1 SA-2CO3-176 AR Surveying Services"O 7 g5g X doe Page 3 r ATTACHMENT "A" SCOPE OF WORK SURVEYING SERVICES FOR COLLECTIONS SYSTEM AND TREATMENT PLANT PROJECTS SPECIFICATION NO. PSA-2003-176 TYPICAL TASKS PRELIMINARY ALIGNMENT: Provide preliminary stationing at intervals as required by District Engineer. CONSTRUCTION ALIGNMENT: Provide horizontal and vertical controls. Paint centerline of sewer for collections projects when requested by District Engineer. CONTRACTOR'S STAKING: Provide one set of offset line-and-grade stakes for pipeline, manholes, structures, etc. at 25 to 50-foot intervals, or as required by District Engineer along with cut sheets for contractor's use. PIPE CASINGS/TUNNELS: Provide one set of offset stakes for each pit location and one set for horizontal and vertical control in pits, with cut sheets. Provide line-and-grade checks inside casings. PIPELINE HEADING CHECK: Provide line-and-grade checks daily or as required by the District Engineer. STREET CENTERLINE TIES: Prior to construction, tie-out street centerline monumentation, and after construction, replace disturbed or destroyed street centerline ties. PAVEMENT REPLACEMENT: At the locations requested by the District, street cross sections will be surveyed prior to construction. For pavement replacement after construction, one set of paving and curb stakes will be provided at locations designated by the District. 1 MISCELLANEOUS SURVEY: As requested by the District, provide boundary and topographic surveys, monument replacement, aerial control, settlement monitoring, and other miscellaneous items. Prepare base maps and exhibits using AutoCAD, latest version. REQUIREMENTS 1. Survey crew should be available within a 24 hour notice. 2. Survey crew should be experienced with tunnel and casing surveys. 3. Three copies of all survey notes shall be furnished to the District within 24 hours of survey or stakeout. 4. Surveyor's field personnel should be able to recognize survey errors or omissions on the contract drawings, survey or stakeout. 5. Survey party should consist of two or three persons per crew with a certified party chief. 6. Party chief or company representative should be available for the pre-construction meeting and other key meetings as the project progresses. 7. All supplies, such as, but not limited to, stakes, flagging, nails, spikes, ties, paint, etc. shall be included in the hourly rate for the survey party. S. All surveyors must be adequately insured for liability and property damage, and a copy of the policy must be forwarded to OCSD. 9. Survey crew shall be able to provide proper traffic control in accordance with the W.A.T.C.H. Manual or as required by the governing agency when carrying out their functions and duties. 10.At least one member of the party should have a cell phone/pager or other form of communication so as to be in contact with the home office in the event the District requires immediate communication with the party during normal working hours. 11. Survey crew should be available for occasional night work (4:30 p.m. to 7:00 a.m.) upon 24-hour advance notice. 2 12.Survey work shall be documented in English Standard Units and/or Metric Units, as required by the District. 13.Invoice shall be coded with District assigned project name and number for each work item. H.WeptwnglCM Mis %Sols&SurveyContadst SA2003176Surveying Services F 06-0T SA-2003196 PSAA=ac entA- Survey SOW FYO 7.da 3 ATTACHMENT C Professional Services Agreement Status Report Surveying Services PSA-2003-176 Total Project Budget: $150,000 FY 2004/2005, $50,000 FY 2005/2006, $200,000 FY 2006/2007 Consultant: Bush and Associates Inc. Start Date of Project: July 1, 2004 Date Amendment Description Cost Accumulated Costs 5/26/2004 Original PSA Surveying Services for capital projects (FY 04/05) $150,000 $150,000 4/24/2005 1 Surveying Services for capital projects (FY 04/05) $50,000 $200,000 4/24/2005 2 Surveying Services for capital projects (FY 05/06) $200,000 $400,000 PENDING 3 Surveying Services for capital projects (FY 06107) $150,000 $550,000 C:1FileNE3WIP\Change\PSA-2003-176 Attachment C-Bush Status Repart FY 06-07.doc ATTACHMENT B FEE SCHEDULE FY 200412005, FY 2005/2006 AND FY 2006/2007 SURVEY SERVICES: Forkert Engineering and Surveying Inc. Servicet tt r tt . 0. 010 PLS/1-party crew $90.00 $91.80 $93.64 2-parry crew $166.00 $168.30 $171.67 3-party crew $190.00 $193.80 $197.68 Office Calcs. $65.00 $66.30 $67.63 CAD Time $55.00 $56.10 $67.22 Minimum callout 0 0 0 Travel charge $0.00 $0.00 $0.00 Escalation FY 05/06 2% Escalation FY 06/07 20h C TileNETWMhangel SA-2W0 176 Attachment B-Forken Fee Table FY 06-07 d. ATTACHMENT B FEE SCHEDULE FY 200412005, FY 2005/2006 AND FY 2006/2007 SURVEY SERVICES: MDS Consulting Service r - rr r rr6 r . rr PLS/1-party crew $120.00 $124.80 $129.79 2-party,crew $196.00* $202.80 $210.91 3-party crew $228.00* $237.12 $246.60 Office Calcs. $90.00 $93.60 $97.34 CAD Time $76.00 $78.00 $81.12 Minimum callout 2 hr 2 hr 2 hr Travel charge N/A N/A N/A Escalation FY 05/06 40/a Escalation FY 06/07 4% *Negotiated Rates C9FileNEfW RChangelPSA-200&176 Attachment B-MDS Fee Table FY 06-07.d. ATTACHMENT B FEE SCHEDULE FY 200412005, FY 2005/2006 AND FY 2006/2007 SURVEY SERVICES: RBF Consulting Service i.4 ii i ii6 i . ii PLS/1-party crew $138.00/ $140.76/ 143.581 $127.00' $129.54 $132.13 2-party crew $180.00' $183.60 $187.27 3-party crew $234.00' $238.68 $243.46 Office Calcs. $106.00 $108.12 $110.28 CAD Time $106.00 $108.12 $110.25 Minimum callout 2 hr 2 hr 2 hr Travel charge $130 hr Schad/ $130 hr Schad/ $130 hr Sched/ Super Super Super Escalation FY 05/06 2% Escalation FY 06/07 2% *Negotiated Rates C T3lcNETWP%Change\PSA-200J476 Attachment B RBF Fee Table FY O6 Tdac ATTACHMENT C Professional Services Agreement Status Report Surveying Services PSA-2003-176 Total Project Budget: $150,000 FY 2004/2005, $50,000 FY 2005/2006, $200,000 FY 2006/2007 Consultant: Bush and Associates Inc. Start Date of Project: July 1, 2004 Date Amendment Description Cost Accumulated Costs 5/26/2004 Original PSA Surveying Services for capital projects (FY 04/05) $150,000 $150,000 4/24/2005 1 Surveying Services for capital projects (FY 04/05) $50,000 $200,000 4/24/2005 2 Surveying Services for capital projects (FY 05/06) $200,000 $400,000 PENDING 3 Surveying Services for capital projects (FY 06/07) $150,000 $550,000 C:WileNElWPIChange\PSA-2003-176 AMachmenl C-Bush Status Repots FY 06-07.doc ATTACHMENT C Professional Services Agreement Status Report Surveying Services PSA-2003-176 Total Project Budget: $150,000 FY 2004/2005, $200,000 FY 2005/2006, $150,000 FY 2006/2007 Consultant: Forkert Engineering Start Date of Project: July 1, 2004 Date Amendment Description Cost Accumulated Costs 5/26/2004 Original PSA Surveying Services for capital projects (FY 04/05) $150,000 $150,000 4/24/2005 1 Surveying Services for capital projects (FY 05/06) $200,000 $350,000 PENDING 2 Surveying Services for capital projects (FY 06/07) $150,000 $500,000 C:W!IeNETWIP1ChangelPSh2003.176 Atlachment C-Fokert Status Report FY 06-07Aoc ATTACHMENT Professional Services Agreement Status Report Surveying Services PSA-2003-176 Total Project Budget: $150,000 FY 2004/2005, $200,000 FY 200512006, $150,000 FY 2006/2007 Consultant: MDS Consulting Start Date of Project: July 1, 2004 Date Amendment Description Cost Accumulated Costa 5/26/2004 Original PSA Surveying Services for capital projects (FY 04/05) $150,000 $150,000 4/24/2005 1 Surveying Services for capital projects (FY 05/06) $200,000 $350,000 PENDING 2 Surveying Services for capital projects (FY 06107) $150,000 $500.000 C1FileNET lP1ChangelPSA-2003-176 Attachment C-MDS Status Report FY 06-07.doc ATTACHMENT C Professional Services Agreement Status Report Surveying Services PSA-2003-176 Total Project Budget: $150,000 FY 200412005, $200,000 FY 2005/2006, $150,000 FY 2006/2007 Consultant: RBF Consulting Start Date of Project: July 1, 20D4 Date Amendment Description Cost Accumulated Costs 5/26/2004 Original PSA Surveying Services for capital projects (FY 04/05) $150,000 $150,000 5/5/2005 1 Surveying Services for capital projects (FY 05/06) $200,000 $350,000 PENDING 2 Surveying Services for capital projects (FY 06/07) $150,000 $500,000 C1FraNENJIMhangeWSA-2003-M Attachment C-RBF Staka Repo"FY 06-07.doc PDC COMMITTEE Mee Date To 8tl.01Dir. 05/09/O6 05/29I AGENDA REPORT Item Number Rem Number PDC0645 19(n Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Chuck Lee, Sr. Construction Inspection Supervisor SUBJECT: PROFESSIONAL SERVICES AGREEMENTS FOR ELECTRICAL ACCEPTANCE TESTING SERVICES, SPECIFICATION NO. PSA-2003-177 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 3 to the Professional Services Agreement with Electrical Reliability Services, Inc. and Amendment No. 2 to Professional Services Agreement with Hampton-Tedder Electric Inc. to provide for electrical acceptance testing services, Specification No. PSA-2003-177, for a one-year period for an amount not to exceed $150,000 for each agreement ($300,000 total). SUMMARY • In May 2004, the Board of Directors approved Professional Services Agreements (PSA) with Electrical Reliability, Inc. and Hampton-Tedder Electric Inc. for an amount not to exceed $100,000 for each agreement for Fiscal Year (FY) 2004/2005 ($200,000 total), with the option to renew for two additional one-year periods for an amount not to exceed $150,000 for each agreement for FY 2005/2006 ($300,000 total), and for an amount not to exceed $150,000 for each agreement for FY 2006/2007 ($300,000 total). • Staff has determined that a one-year renewal is required to successfully complete electrical acceptance testing services on capital projects during the next fiscal year. • The PSA amounts for each consultant will be used on an as-needed basis. Electrical acceptance testing services are budgeted on each capital project as required. All services will be charged to the project budgets. PRIOR COMMITTEE/BOARD ACTIONS Please see the attached PSA Status Report. Page 1 PROJECT/CONTRACT COST SUMMARY The PSA renewal amounts with each consultant for FY 2006/2007 are listed in the table below. The amounts were Board approved in May 2004 and derived by staff by considering present electrical acceptance testing services fees and scheduled future capital projects. Consultant FY 2006/2007 Electrical Reliability Services, Inc. $150,000 Hampton-Tedder Electric $150,000 TOTAL $300,000 BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) This item does not impact the overall budget because it is not paid separately as a lump sum item. Electrical acceptance testing services funds have been included in the individual project budgets that require these services. They are expensed as the services are used on the projects. ADDITIONAL INFORMATION Staff will issue Requests for Proposals to interested electrical acceptance testing services companies next fiscal year for services to be provided in FY 2007/2008 through 2009/2010. The agreements will continue to require renewal for each year. ALTERNATIVES None CEQA FINDINGS None ATTACHMENTS 1. Scope of Work—Attachment A 2. Fee Schedule with Escalation Rates 2006-2007 —Attachment B 3. PSA Status Report—Attachment C CL:dm H:tntglobaMgenCa Draft Report TDCTSA-2000-177 AR Electncal Acceptance Testing FY W-07 050406.dw Page 2 ATTACHMENT A SCOPE OF WORK ELECTRICAL ACCEPTANCE TESTING SERVICES FOR COLLECTION SYSTEM AND TREATMENT PLANT PROJECTS SPECIFICATION NO. PSA 2003-177 Provide electrical acceptance testing services on an as-needed basis for Collections System and Treatment Plant construction projects. Electrical acceptance testing shall follow the latest edition of the National Electrical Testing Association's, Inc. (NETA) Acceptance Testing Specirications for Electric Power Distribution Equipment and Systems, with modifications as listed in the "GENERAL REQUIREMENTS, TASKS and PROPOSED FEES SCHEDULE"that is part of this Scope of Work. In addition to those requirements called out in the Schedule, the following ADDITIONAL REQUIREMENTS apply: 1. Normal working hours will be anytime between Monday and Friday, 7 a.m. to 5 p.m. Some testing situations might require longer hours and occasional night and weekend work. Field technicians shall be available upon 24-hour notice for all situations. 2. Invoices shall be coded with District assigned project title and job/contract number along with NETA test identification and a work description of the services provided. 3. All lest results shall be clearly summarized in a standard report format and submitted to the District. The electrical equipment and/or circuit being tested shall be clearly identified by name and loop or equipment tag number on each sheet to prevent confusion. The name(s) of the employees(s) performing the testing shall be provided on each sheet. 4. Test equipment shall be calibrated at the contractor's shop prior to the work and not at District testing site. Calibration stickers shall be attached to each piece of test equipment and shall clearly indicate date and source of latest calibration. All calibrations shall be traceable to NIST calibration standards. Records of these calibrations shall be submitted to the District upon request of the electrical Inspector. Calibration costs shall be included in total hourly rate as noted in the "GENERAL REQUIREMENTS, TASKS and PROPOSED FEES SCHEDULE". C:T1WNE1WIP1Chan9elPSA-2D03 177 AUGhment A ENctdw]Testing SOW FY 0697.dw ATTACHMENT FEE SCHEDULE FY 2004/2005, FY 2005/2006 AND FY 200612007 ELECTRICAL TESTING SERVICE: Electrical Reliability Services, Inc. Service/Test Flat Fee (per hour $117.00 $123.50 $130.00 Minimum Daily Call-Out Charge $600.00 $600.00 $600.00 Travel Time (per hour $150.00 $150.00 $150.00 Mileage Charge Included Included Included C\FileNETWIP\Change\PSA-2003-177 Attachment 6 ERS Fee Table FY 06-07.doc ATTACHMENT B FEE SCHEDULE FY 200412005, FY 2005/2006 AND FY 2006/2007 ELECTRICAL TESTING SERVICE: Hampton-Tedder Inc. Service i tt i tt6 t . tt Serviceffest Flat Fee (per hour $118.00 $118.00 $118.00 Minimum Daily Call-Out Charge $500.00 $600.00 $500.00 Travel Time (per hour $95.00 $95.00 $95.00 Mileage Charge $0.50 $0.50 $0.50 C\FIIeNETWIPtChangetPSA-200]-177 Attachment B Hampton-Tedder Fee Table FY 06-07,doc fc ATTACHMENT Professional Services Agreement Status Report Electrical Reliability Services PSA-2003-177 Total Project Budget: $100,000 FY 2004/2005, $150,000 FY 20052006, $150,000 FY 2006/2007 Consultant: Electrical Reliability Services, Inc. Start Date of Project: July 1, 2004 Date Amendment Description Cost Accumulated Costs 5262004 Original PSA Electrical Testing Services for capital projects (FY 04/05) $100,000 $100,000 5/5/2005 1 Electrical Testing Services for capital projects (FY 05/06) $150,000 $250,000 5/5/2005 2 Electrical Testing Services for capital projects (FY 05/06) $150,000 $400,000 PENDING 3 Electrical Testing Services for capital projects (FY 06/07) 1 $150,000 $550,000 C:%RleNETWIMhangeWS4-2000.177 Attachment C ERS PSA Status Report FY 00-07.doe ATTACHMENT C Professional Services Agreement Status Report Electrical Testing Services PSA-2003-177 Total Project Budget: $100,000 FY 2004/2005, $150,000 FY 2005/2006, $150,000 FY 2006/2007 Consultant: Hampton-Tedder Electric Inc. Start Date of Project: July 1, 2004 Date Amendment Description Cost Accumulated Costs 5/2 612 0 0 4 Original PSA Electrical Testing Services for capital projects (FY 04/05) $100,000 $100,000 5/5/2005 1 Electrical Testing Services for capital projects (FY 05/06) $150,000 $250,000 PENDING 2 Electrical Testing Services for capital projects (FY 06/07) $150,000 $400,000 CAF11eNETMMChangeTSA-2003-177 Attachment C Hampton-Tedder PSA Status Report F 06-07.doc i PDC COMMITTEE Mee"n,Date Toed.Cr01) 05104ID6 051i4i 6 '» AGENDA REPORT ten Number Hem Number PDC06-46 14G) Orange County Sanitation District 111 aceei Facilities llecti FROM: David Ludwin, Director of Engineering Originator: Jag Salgaonkar, Project Manager SUBJECT: SUNFLOWER INTERCEPTOR MANHOLE REHABILITATION, CONTRACT NO. 7-21 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 7 to the Professional Service Agreement with Tran Consulting Engineers, for additional construction support services for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21, for an additional amount of$30,688, increasing the total amount not to exceed $644,983. SUMMARY • This contract is for the rehabilitation of 31 manholes and pipeline point repairs consisting of liner repairs at several locations on the Sunflower Interceptor Sewer line. • Construction on the project started in January 2006, but delays have resulted due to unforeseen field conditions. The construction support effort required by Tran Consulting and their subconsultant, CSI Services, performing inspection services, has increased due to these project delays. • Proposed scope modifications to CSI Services agreement includes additional construction inspection of point repairs inside the sewer interceptor. The work in the interceptor is nighttime work and, therefore, requires a cost premium compared to the inspection of work in the manholes. • The fees proposed for additional services are estimates prepared by Tran Consulting Engineers and the Orange County Sanitation District (Sanitation District) staff, and are based on current project experience and project needs. All work performed and billed will be on an as requested basis by the Sanitation District staff to support the project. PRIOR COMMITTEEIBOARD ACTIONS See attached PSA Status Report. PROJECTICONTRACT COST SUMMARY See attached Budget Information Table for the explanation on the requested amount of $30,688. Page 1 BUDGETIMPACT - ® This item has been budgeted. (Line item: Section 6— Page 34 of Budget) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION This project involves manhole rehabilitation which includes coating of the manhole interior for longevity. In the past, the Sanitation District has been predominantly using polyurethane material for coating. In this project, based on the Consultant's recommendation and the operating department's, two different types of coating materials (polyurethane and epoxy) will be used. If the epoxy coating is successful, it will provide a cost-effective alternative to polyurethane coating. This project will provide vital information about the performance of both types of coating which could be useful to the Sanitation District to improve the longevity, performance, and saving cost when more manholes may need a similar type of rehabilitation in the future. In order to determine the performance of both types of coating that could be vital for all future similar projects, it is necessary to establish uniform baseline conditions. At this point in time, the Sanitation District staff does not have sufficient experience in National Association of Corrosion Engineers (NACE), Standards of the Society of Protective Coatings (SSPC), and American Society for Testing and Materials (ASTM) standard testing practices necessary to make that determination. Therefore, it is necessary to retain third party (expert) coating and surface preparation inspection services. CSI has extensive background in inspecting corrosion resistant coatings, and their CSI inspection to-date on this project has been very satisfactory. Construction on the project started in January 2006, but has resulted in delays due to unforeseen field conditions. The delays were a result of unforeseen field conditions, and surface preparation has taken much longer than anticipated due to excessive discoloration and corrosion in the manholes. Additionally, work planned to be done simultaneously did not occur, resulting in project delays. The effort required by Tran Consulting and their subconsultant, CSI Services, who perform inspection services, has increased due to these project delays. ALTERNATIVES Sanitation District inspectors may be assigned to perform the inspection services required. This alternative is not recommended by the Sanitation District staff since the Sanitation District inspectors do not have the necessary experience and training in this type of coating applications in manholes or point repairs in interceptors. Additionally, it is desired to provide inspection continuity between completed work and outstanding work. This will provide a consistent basis for evaluation of the two types of coating systems. Page 2 i CEQA FINDINGS This project has been determined to be exempt from CEQA under Article 19 (Categorical Exemptions), Section 15301 (d) Existing facilities, restoration or rehabilitation of deteriorated or damaged structures. A Notice of Exemption has been filed. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Proposal Letter from Tran Consulting Engineers JS:ha:ba:eh:kf H:l tglobaMgenda Draft RepOrlslPlx:11-21 Am ment]R2.dw Page 3 BUDGET INFORMATION TABLE SUNFLOWER INTERCEPTOR MANHOLE REHABILITATION CONTRACT NO. 7-21 PROPOSED ORIGINAL CURRENT PROPOSED FUNDS THIS. PROPOSED E$TIMATEg +EXPENDED TO BUDGET PROJECTIPHASE AUTHORIZED PROJECT REVISED AUTHORIZED TO AUTHORIZATION TOTAL E%TO DATE EXPENDED TO BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%). (DECREASE Phase 1 -Pmjed Development $ 17,000 3 35,521 $ 35,521 S 35,521 $ 35,521 $ 35,755 101% Phase2-P.N.ina Deal n $ 215.000 S 186243 $ 185,243 $ 185,243 $ 185243 $ 186,407 101% Phase 3-Des' n $ 264.400 1 S 727.006 $ - $ 727.006 $ 727,006 $ - $ 727.006 $ 820287 113% Phase 4-Combudien $ 3511,000 $ 2,400,442 $ 2,40D,442 $ 1,949,242 $ 30.688 $ 1.979930 S 323882 16% Phase S-Cammissionin $ 482300 $ 95,029 $ 95,029 $ 76.317 $ 76,317 $ 1.304 Phase 6-Cbse-Out $ - $ 30,132 $ 30,132 $ 25,353 $ 25.383 S 451 Phase 7-Conlin en $ 887,900 $ 3W,413 $ - $ 308.413 $ 8 PROJECTTOTAL $ 5.387,600 $ 3.781,786 $ 3,781.786 $ 2.998.712 $ 30.688 $ 3,029,400 $ 1,368,086 45% Reimbursable Costs PROJECT NET 1 $ 5.387,600 $ 3.781,786 1 $ 3,781,786 11 $ 2,998.712 $ 30.688 $ 3,029,4W 1 $ 1.368.086 45% PSAIContmcl Des' nPBA $ 561.760 $ 614295 $ 30688 1 $ 644,983 $ 614 95 $ 30688 $ 6N,983 Camtmdion Contrail is 2.949240 1 $ 2,000,W0 1 $ 2,000,000 $ 15192W I$ - $ 1.518200 EDNIS:003787549 Professional Services Agreement Status Report SUNFLOWER INTERCEPTOR MANHOLE REHABILITATION CONTRACT NO 7-21 Total Project Budget: $3,781,786 Consultant: Tran Consulting Engineers Date Amendment Description Cost Accumulated Costs Provide physical inspection and engineering services to evaluate the structural integrity of Bushard Trunk 1/17/2001 Original PSA Sewer 1-2-4 ($268,859), Santa Ana Trunk Sewer 1-17 $900,000 $900,000 ($300,207), Sunflower Interceptor Sewer 7-21 $330,935 Contract No. 1-2-4: Additional labor, material, and equipment necessary to operate the flow diversion 4/17/2001 1 structures. Increase original amount of$268,859 by $24,990 $924,990 $24,990 to $293,849 Additional labor, material, and equipment necessary to operate the flow diversion structures for Contract 9/06/2001 2 No.1-17 & No. 7-21. Increase original amount for $47,099 $972,089 Contract No. 1-17 from $300,207 by $11,519 to $311,726 and for Contract No. 7-21 from 330,935 by $35,580 to $366,515 Contract No. 1-2-4: Additional labor, material, and equipment necessary to set-up and remove by-pass 4/04/2002 3 pumps, flow evaluation, field investigation, and $12,515 $984,604 technical analysis. Increase original amount from $293 849 b $12,515 to $306,364 Page 1 of 2 Contract No. 7-21: Additional engineering services necessary for the design of rehabilitation of the 5/20/2004 4 manholes and portions of trunk sewers. Increase $152,093 $1,136,697 original amount from $366,515 by $152,093 to $518,608 Contract No. 7-21: Additional engineering services necessary to develop and test a diversion plan 4/27/2005 5 including flow rate measurement necessary for the $66,087 $1,202,784 pipeline repair. Increase original amount from $518,608 b $66 087 to $584,695 Contract No. 7-21: Additional engineering services 9/28/2005 6 necessary to inspect the new type coatings in $29,600 $1,232,384 accordance with NACE, SSPC, and ASTM standard testing practices Contract No. 7-21: Additional engineering services Pending 7 necessary to complete inspection of coating $30,688 $1,263,072 (') application in manholes and rehabilitation of the interce for lining. (•) This Professional Service Contract (PSA)covers three separate projects and the accumulated cost is for the combined contract. The total not to exceed amount for Engineering Services for Sunflower Interceptor Manhole Rehabilitation, Contract No. 7-21, is $644,983. The balance of the cost is for work on the Santa Ana Trunk Sewer, Contract No. 1-17, and the Bushard Trunk Sewer, Contract No. 1-2-4 EOMS:003763698 Page 2 of 2 TRANCONSULTINGENGMENS Civil, Environmental, Mechanical, Utility Systems and Resource Recovery March 21,2006 Mr.Jag Salgaonkar Project Manager Orange County Sanitation District P. 0. Box 8127 Fountain Valley,CA 92728-8127 Subject: Request for Amendment to Contract No. 7-21 -Sunflower Interceptor Manhole Rehabilitation Dear Mr. Salgaonkar: Tran Consulting Engineers(TCE) is requesting an amendment to our contract in order to provide construction support services during the construction of Contract 7.21, Sunflower Interceptor Manhole Rehabilitation project. CST is currently under contract with TCE to provide third-party inspection services; however,the extension of time to complete the contract was not anticipated by TCE or CST and will require additional construction support services. We had assumed that the polyurethane coating and the Raven epoxy coating would take place simultaneously,which has not occurred. This is resulting in more field time for the coating inspector. In addition, we understand the District would like to retain the services of CST to inspect the T- Lock lining repairs that will take place towards the end of the project. Scope of Work Provide all labor, materials and equipment as necessary to complete the inspection of the manhole coatings. Inspect the repair of the T-Lock Lining. The inspector will enter the interceptor pipeline with the repair crew to observe and guide the repair process. Perform work in accordance with OSHA and Orange County Sanitation District standards and requirements. CST will be the subcontractor for the field work. The CST detailed proposal is attached. TCE will oversee and coordinate the CST work. TCE will attend additional meetings, provide one additional field visit, and CA work in this portion of the project. 4891 Paci ric Iliglnvay.Suite 218.Son Uiep.CA 92110—Tel:(619)275-5878—foe:(619)275-5879 Proposed Fee TCE will provide professional engineering services to complete all work as described above for a lump sum of$30,689 (see attached proposed fee estimate spreadsheet). Please contact us if you have any questions regarding this request of addendum. Very truly yours, TRAN CONSULTING ENGINEERS Paul Hoa Tran, PhD, DEL-, PE Principal attachments 4891 Pacific 1 liphwuy,Suite 218.Son Diego.CA 92110—Tcl:(619)275-5878—I-a<:(619)275-5879 P. O. Box 801357 Santa Clarita, CA 91380-2316 . . Phone:877.274.2422(toll free) ., . " Fax:661.775.7528 www.CSlServices.biz 9M_M0 -X Providing Quality Technical Services to the Coating Industry March 18, 2006 Via E-mail Mr. Carl Sepponen Phone: 619.275.5878 Tran Consulting Engineers E-mail: sepponen(ciltran-c-e.com 4894 Pacific Highway, Suite 218 San Diego, CA 92110 Subject: Estimated Additional Cost of Inspection Re: Sunflower Interceptor Manhole Rehabilitation, Orange County Sanitation District(Project 7-21) Dear Carl: The total amountof inspection time required on the above referenced project is expected to exceed the amount originally estimated. The anticipated increase is simply based on our T&M fees extended out over the contractor's current production rates and the amount of work to be completed. As you know, the contractor's production level is less than what was originally anticipated. You asked for both a current cost for our services and a revised estimated cost of inspection—to include the addifion of not only the additional time required for the manhole work, but also 20 additional days(nights)to inspect the repair of the T-lock liner in the project pipeline. Discussions with various project personnel estimate that current production rates may require an additional 1-2 months of manhole inspection. Since we will only invoice for the actual time worked, we are using the 2 month projection for contingency purposes. Our current and projected inspection costs follow: Current Inspection Costs through March 18 Amount Invoiced: 160 hours @ $46.75/Hr... $ 7,480.00 Amount to be Invoiced: 146 hours @ $46.75/Hr... $ 6,825.50 Total Cost of Inspection through March 18: $14,305.50 Amount Budgeted for Inspection: $16,830.00 Total Amount of Funds Remaining for Inspection: $ 2.524.50 Estimated Future Inspection Costs Manhole Work: 346 hours@ $46.75/Hr...$16,175.50 Pipeline Work: 160 hours @ $55.00/Hr. $ 8,800.00 Total Estimated Future Costs of Inspection: $ 24,975.50 Additional Funds Required: $ 22,461.00 Coating Specialists and Inspection Services, Inc. Consulting Evaluations Surveys Inspection O Estimated Additional Cost of Inspection Sunflower Interceptor Manhole Rehabilitation, e:pluaa:a_s orange County Sanitation District 1Project 7-21) Page 2 As a result, CSI Services, Inc. respectfully requests that$22,451.00 in additional funding be authorized so that we can complete the increased inspection scope, as noted above. Since we are working on a time and materials basis, we will only charge for the actual hours worked. Please let me know how you would like to proceed, and if you have any questions. I can always be reached at psweenev(cDcsiservices.biz or by cell (681.478.8900). Sincerely, CSI Services, Inc. Paaag--7 Patrick Sweeney Project Manager March 18, 2006 7.21 - Sunflower Amendment No. 7 Additional Coating Inspection Fee Estimate C q C rw O w C y P n pV C 0 J C T N F -0 tiP TASK a w` c" Q m' do 60 50 37 15 Ccordine0on 6 14 6 $ 1150 Meets s 3 meeting x t etsons 1s 3 $ 945 Site visit 0 x 1 vemen each 7 1 $ 365 Mena ement(including QA/DO 14 14 6 $ 1630 TOTALS- 20 93 0 16 3 3 4090 Overhead gil 90° - 881 Total with OH- 7 77 Prot 6%= CSI Inspection Services-Addiflonal Manhole Inspection(Direct coat = $ 13,661 CSI InspectionServices-Pl aline T- ock Repair Inspection Dimet cost = a,eao Total Estimated Amendmento.7 Fee= 301688 =W2006 10:27 AM 1 Of 1 PDC COMMITTEE n-ti•y Dare Tu6u.ur Dk. 05/09/06 0512i/06 AGENDA REPORT Rem NUMW Imo Number PDC0"- 1Mk1 Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Ann Tobin, Engineer SUBJECT: COOPERATIVE PROJECTS GRANT PROGRAM, JOB NO. J-73 GENERAL MANAGER'S RECOMMENDATION Approve funding for four new Cooperative Projects with the Cities of Huntington Beach, Newport Beach, Placentia, and Santa Ana, for a total amount not to exceed $1,515,297, as recommended by the Cooperative Projects Grant Committee. SUMMARY • The Cooperative Projects Grant Program (Program) provides funds to local agencies for projects that reduce or eliminate inflow and infiltration (1/1) to the sewer collection system and for projects with environmental benefits. • The City of Huntington Beach requests a grant for$201,153 for the Hamilton/ Banning sewer lining project. The project will reduce infiltration in the local Huntington Beach sewer. The project is expected to be completed in FY 2007/08. • The City of Newport Beach requests a grant of$322,710 for 1/1 analysis and a master plan update. The project will permit Newport Beach to estimate potential 1/1 reduction and prioritize capital improvements with significant benefits to both the City of Newport Beach and the Orange County Sanitation District (Sanitation District). The project is expected to be completed in FY 2007/08. • The City of Placentia requests a grant of$501,483 for the Walnut Avenue Drainage Project. The project provides sewer and storm drain improvements, which will reduce local flooding and potential subsurface sewage leakage and is expected to be completed in FY 2007/08. • The City of Santa Ana requests a grant of$489,950 for a new sewer in Civic Center Drive. The new sewer will reduce potential sanitary sewer overflows (SSO) in Santa Ana and help relieve wet-weather surcharging in the Sanitation District's Bristol trunk sewer. The project is expected to be completed in FY 2007/08. PRIOR COMMITTEE/BOARD ACTIONS The Cooperative Projects Grant Committee, formerly an ad hoc committee, will become a special committee. Beginning in July 2006, the Committee will meet quarterly to review grant requests on an ongoing basis. M'd^H`+Ben¢amaa Ppxpe figvl•ZlC68av0RJe,W¢/pxtla Aro�anSRNam ta1R).f»mc na,,.a. uirowc Page 1 A At its meeting of April 6, 2006, the Cooperative Projects Grant Committee recommended grant funding for the four projects presented in this agenda report. PROJECT/CONTRACT COST SUMMARY Once awarded, Cooperative Project grants are paid to local agencies on a reimbursement basis after project completion. The total amount of grant reimbursements provided to member agencies since 1999 through the Program is approximately $12.9 million. Capital grants to member agencies are currently included as an item in the Sanitation District's Joint Operating budget. There are 14 outstanding contract agreements and a total of approximately $3.5 million in grant authorizations for ongoing cooperative projects. The new projects would increase outstanding obligations to approximately $5 million. Reimbursements for the new projects are anticipated to be paid out during FY 2007/08 and would increase the 2007/08 projection to $2.2 million. BUDGETIMPACT ® This item has been budgeted. (Line item: 05/06 - Section 5, pages 1 and 4) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The Program was initiated in 1998 to delay or eliminate the need to construct additional treatment and disposal facilities resulting from increasing amounts of rain dependent 1/1. 1/1 is storm and/or groundwater that enters the sewer system through cracked pipes, leaky manholes, or improperly connected storm drains, down spouts, and sump pumps. Most inflow comes from storm water and most infiltration comes from groundwater. The primary purpose of the Program is to improve local sewer systems in order to achieve a 20% reduction in the rain dependent 1/1 contribution to the Sanitation District's peak wet weather flows by the year 2020. Increasing 1/1 associated with aging sewer pipes in the Sanitation District's service area was identified as largely responsible for the increase in wet weather flow. Without a program to control 1/1, the Sanitation District will continue to see higher peak flows and be required to expand its Capital Improvement Program. Since 1999, the Sanitation District has solicited project applications from local agencies for Cooperative Project grants. The Sanitation District did not solicit applications during FY 2003/04 and FY 2005/06 to allow time to track delayed projects, to process reimbursement requests, and to analyze wet weather data. Proposed projects have generally been ranked based on payback period (cost of project/savings per year from reduced 1/1), type of funding request, environmental benefits, nature of project, and any other overriding considerations. H Weppagendag d Agenda RogansVd0a R rd Agenda&Agenda RegMaWSWVIem14Ik).J4]d- ftn'. gwamR Page 2 Examples of overriding considerations are potential beach closures caused by leakage from sewers, potential subsurface sewage leakage, or potential SSOs. Once approved, ' contracts are drawn up to define the scope of work, schedule, budget, and requirements. The City of Huntington Beach requests $201,153 to line 8,992 of eight-inch sewers and rehabilitate 41 manholes in the area bounded by Hamilton and Banning Avenues and Bushard and Brookhurst Streets. Based on flow monitoring information and the Sanitation District's staff analysis, the payback for the Sanitation District is just over 20 years. The City of Newport Beach requests $322,710 to develop an 1/1 reduction plan, building on the Sanitation District flow monitoring effort which identified significant IA in the City of Newport Beach. The project will provide for update of the City of Newport Beach Sewer Master Plan. The work will include manhole plugging in flood prone areas, flow monitoring, CCTV inspection, condition assessment, 1/1 analysis, capital improvement planning, and a rate study. The proposed project will permit Newport Beach to estimate potential 1/1 reduction and prioritize capital improvements with significant benefits to both the City and the Sanitation District. The City of Placentia requests $501,483 to design and construct storm and sewer improvements in the vicinity of Chapman and Walnut Avenues. During heavy rains, flooding and ponding of water occurs in this area. Placentia intends to repair known sewer and storm defects in this area to reduce the potential for subsurface leakage and sewer overflows. The City of Santa Ana requests $484,950 for design and construction of a relief sewer in Civic Center Drive from Flower Street to Bristol Street. The new sewer will help address wet weather capacity deficiencies in the Sanitation District's Bristol Trunk Sewer. ALTERNATIVES No alternatives are recommended. CEQA FINDINGS Local agencies are responsible for CEQA compliance. ATTACHMENTS None AT:sa H:\depNgenda\6aard Agenda Rewls\2006 Board Agenda 8 Agenda Reports\05061\Item 14(k).J-93.doe X tlplNpsMelamERpeMaflgote"LCOS aamOlgBMa 8 Agm aKMB�➢SJ5' U:Pn 14(k)�73 w—e 01 o Page 3 PDC COMMITTEE OS/09� mea.ar /06/O6 OS/N AGENDA REPORT 1OeniNiibe 1eniNinber Pocasse tatu Orange County Sanitation District Facilities FROM: David Ludwin, Director of Engineering Originator: Martin Dix, Project Manager SUBJECT: REPLACEMENT OF BITTER POINT PUMP STATION, CONTRACT NO. 5-49 GENERAL MANAGER'S RECOMMENDATION Consider the following actions relating to the purchase of certain real property interests in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49: (1) Approve a Purchase and Sale Agreement with Horizontal Development LLC regarding an approximate one-third acre parcel, in an unincorporated area that is located near the Banning Ranch Pacific Coast Highway entrance for an amount not to exceed $160,000, in a form approved by General Counsel; (2) Authorize the General Manager to execute all Deeds and other evidences of title to the parcels of property, subject to the Purchase and Sale Agreement; (3)Authorize the General Manager to execute any and all other instruments related to the transaction with Caltrans for an amount not to exceed $40,000, in a form approved by General Counsel; (4) Approve an agreement with the City of Newport Beach to quitclaim the Bitter Point Pump Station property in connection with Replacement of Bitter Point Pump Station, Contract No. 5-49, for an amount not to exceed $90,000, in a form approved by General Counsel; and (5) Authorize the General Manager to execute any other agreements necessary to acquire said property for an amount not to exceed $20,000. SUMMARY • The existing Bitter Point Pump Station is located at the Banning Ranch entrance from Pacific Coast Highway (PCH) within an unincorporated portion of Orange County, near the Santa Ana River(see attached vicinity map). • The existing pump station is 70 years old and needs to be replaced in order to accommodate future sewage flows. • The existing Bitter Point Pump Station property is not large enough to accommodate replacement. The purchase of new property for $160,000 adjacent to the existing pump station would accommodate all project replacement needs. • The City of Newport Beach (City) owns the lease rights for the new pump station property. The City is willing to quitclaim to the Sanitation District all property interests in exchange for $90,000. • Caltrans also owns a drainage easement over a portion of the new property. Staff has been working with Caltrans to decertify or declare a portion of the said easement as excess land. If Caltrans agrees to quitclaim their portion of the property to the Sanitation District, the property will be appraised and transferred at fair market value. Staff believes this cost will not exceed $40,000. PRIOR COMMITTEE/BOARD ACTIONS See attached PSA Status Report. PROJECT/CONTRACT COST SUMMARY See attached Budget Information Table. Staff is recommending approval of$160,000 for the land purchase, $90,000 for the City to release their interest in the property, and $40,000 for Caltrans to release their portion of the property for a total not to exceed $290,000. BUDGETIMPACT ® This item has been budgeted. (Line Rem: 2005-06 CIP, Section 8 - Page 21) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item). Applies to future budget periods ADDITIONAL INFORMATION The Bitter Point Pump Station was identified in the Orange County Sanitation District's (Sanitation District) 1999 Strategic Plan for capacity improvements. In addition, subsequent engineering assessment found that the pump station fell short of various codes and safety standards. Hydraulic modeling of the entire South Coast Force Main/Pump Station system also revealed that upsizing the capacity of this pump station by 30 mgd will negate the need to up-size the capacity of the other upstream pump stations. The improvements require that a replacement pump station be built next to the existing one. The existing pump station would be abandoned upon startup of the new pump station. Staff obtained a property appraisal in June 2004. The appraisal gave a range of values depending on how easily the land could be developed. The low end of this appraisal came in at $133,000. West Newport Oil made a counter offer at $160,000 that represents a 20% increase over the initial offer. Since the initial acceptance of the offer, West Newport Oil has restructured ownership, and is now owned by Horizontal Development LLC. This restructuring of ownership has delayed the purchase and sale of this property. However, Horizontal Development LLC is still honoring the $160,000 price. In general, the Purchase and Sale Agreement would entail: • The property will be sold to the Sanitation District in fee for $160,000. • The Sanitation District will make a $40,000 deposit. • Escrow and other fees estimated not to exceed $20,000. Page 2 The property is encumbered by a City property lease. The City leases the surface rights to operate an oil field directly behind the property. The City is currently using the property to house their well field starters and controls. The small wooden structure housing the starters and controls will have to be relocated during the construction of the new pump station. The City has offered to quitclaim and release all their property interests to the Sanitation District in exchange for $90,000. As a further condition of the agreement, the Sanitation District would be obligated to relocate the City's interfering utilities, reduce the design building heights of the replacement pump station from 20 feet to 16.5 feet, and collaborate with the Newport Shores Community to develop adequate architecture. On February 22, 2006, the Sanitation District Board of Directors approved Amendment No. 5 with Lee & Ro, Inc., adding additional design funds to meet the City's design requirements. The physical size and location of the new pump station partially overlaps a California Department of Transportation (Catrans) right of way. On October 19, 2004 the Sanitation District requested a meeting with Caltrans to discuss and address the overlap. It was decided that the most appropriate course of action for the Sanitation District would be to formally request that Catrans declare a portion of the said easement (O.R. 94-032786 PCL. 73170-3) as excess land. Once the excess land declaration is made Caltrans could then quitclaim this portion of the drainage easement to the Sanitation District at fair market value. Caltrans is currently in the process of estimating the fair market value. ALTERNATIVES None CEQA FINDINGS A Mitigated Negative Declaration was approved via Resolution No. OCSD 03-07, and was subsequently filed in March, 2003. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Vicinity Map 4. Exhibit 6 - Property Boundaries and Easements MD:kf H:1ntglobaMgenda Draft RepohsTDCZ-49 Real Property Pumhase aM Duddaim.dw Page 3 BUDGET INFORMATION TABLE Replacement of Bitter Point Pump Station CONTRACT NO.5-49 PROPOSED ORIGINAL CURRENT PROPOSED FUNDS THIS ESTIMATED ESTIMATED 6UDOET PROPOSED TOTAL PROJECTIPHASE AUTHORIZED PROJECT REVISED AUTHORIZED AUTHORZATION EXPENDITURE EXPENDED TO BUDGET BUDGET INCREASE BUDGET TO DATE REQUEST AUTHORIZATION TO DATE DATE(X) IOECREASE Phase t-Pm'ect De elo ment S 3],52] S 38.000 S 38,000 $ 38p0o $ 38y00 $ 39,971 105% Phase 2-P.I,.ih.q Design S 505,053 S 523.000 S 593.000 $ 593,000 $ 593.008 S 592.601 100% PMse 3-Dei n 3 1.511101 S 2.202.928 S 2.292,928 S 2.292,920 $ 290,000 3 2.582.925 s 1.232.947 48% Phase 4-Contlmotbn S 5A85.152 5 23445.943 $ 23445943 1 1$ 762911 $ 762.911 S 831a 1% Phase S-Commissionin $ 143,731 S 190,945 S 198,945 S 171,699 $ 171,599 3 1.230 1% Phase S-Close-Out $ 35.933 S 100500 $ 100.500 S 78502 S 78502 S 774 1% Phase 7-Contingeng S 539.088 S 2.349,684 $ 5 2,949,684 $ PROJECT TOTAL $ 8,155.585 5 29,019,000 S - S 29,O19,000 $ 3.936.940 $ 290.000 $ 4.226.940 S 1.802,024 45% Reimbursable COsis PROJECT NET S 8,158,685 1$ 29.019p00 S - $ 28.019.000 S 3.936.940 S 290000 S 4,226,040 $ 1,882,82I 45% PSPJCOntract De.1,PSA S 324.537 S 2,I111,678 S - S 2.187.676 11 S 2,196.927 $ - $ 2.105,927 1 S 1044,24T 50% ConelwWn Contract $ 4,073.016 $ 22444.994 1$ - $ 22.444.994 5 - $ - S EDM5:003808015 Professional Services Agreement Status Report Contract Nos.: 5-49, 5-50, 5-51, 5-52 Total Project Budget: $71,600,000 Consultant: Lee & Ro, Inc. Start Date of Project: March 22, 2000 Date Amendment Description Cost Accumulated Costs 3/22/2000 Original PSA Engineering & Construction Support Services $1,149,801 $1,149,801 3/272002 1 Additional Engineering Services $495,247 $1,645,048 924/2003 2 Additional Engineering Services $447,047 $2,092,095 9222004 3 Additional Engineering Services $818,093 $2,910,188 525/2005 4 Additional Engineering & Construction Support $553,312 $3,463,500 Services 2222006 5 Additional Engineering & Construction Support $1,017,316 $4,480,816 Services for Bitter Point PumpStation Only 3222006 6 Additional Engineering & Construction Support $328,566 $4,809,382 Services contracts 5-51 and 5-52 only Note: Project Budget shown is for Contracts 5-49, 5-50, 5-51 and 5-52. EDM6:w3606014 Revised 01/09/06 :'MnPauEzr T0�70Om N R meal $ 210oft Garza Cedar PI a e Park 1 Banning Ava 5� W 19d1 St n W 1 gth. St T.. St Centel St ,tJ W 161h St Sunset DT Perk Dr 0 a A w 17th St W 17th St to �c 0, Newhall St oast '7 vv 161111 St D 2 Bitter Point_ ¢ z Pumping Statio'O o a 6� Coast 2 W Coast Hwy Po=tfr, nccarz Newport Beach ^v��AyS �fd St pie 4do C 2004 MepQuestcom,Ine.;10 2004 NAVTEQ �N. VICINITY MAP Location is north of Pacific Coast Highway between Superior Ave and 60th Street in the City of Newport Beach. 1:\PROIVJ7\01-Biner Point\Govemmenl Agencies\Caltrans\Excess Land\duochmems for Request for Excess Lend lever\Vicinity Map.doc © e •nPpl(Wr P..M.Ptl•i •T+i-\f 4• n-ONIP 1 O ap•yr Ov.iNr.Sn vNtu` ni� � rNr.p arnv wrr � �pwtaNN. rar ny»av ,tip uiA ..ppµs• 1 ��14.ilFl. N iN>wN � � .gym mm mmmmmm mmmp ® m o- „n•r •• N"N",'� J hjF'n � _ --� n•fA>H WMAA A .1. { 1✓ vn tKtR.W n.N»N �rNn NNp„r 1« P N AEPIPCE �N �3TAT10H ES OINI pR�p q N AALEEaRO Inc. PDC COMMITTEE Meeting Date Toed.ofDir. • 05/04/06 05/24/06 AGENDA REPORT I"Number Item Number PDC0649 14f 7 Orange County Sanitation District ® Misc.B Support Projects FROM: David Ludwin, Director of Engineering Originator: Matt Smith, PMO Manager SUBJECT: IPMC CONTRACT GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Infrastructure & Technology Group, Inc., and CH2M Hill, Inc., authorizing: (1) Establish an amount not to exceed $14,999,656 for year five (Fiscal Year 2006/07) of the five-year contract; and (2) Increase the total amount of the five-year contract to an amount not to exceed $60,092,039. SUMMARY • We are currently in the fourth year of a five-year contract with Integrated Program Management Consultants (IPMC). It is anticipated that the current Capital Improvement Program (CIP) will require the use of IPMC at least through Fiscal Year (FY) 2011/12. Each year, Staff evaluates future IPMC requirements. • Staff will be working on 87 active projects during FY 2006/07 with estimated cash expenditures in excess of$250 million. This is an increase over the projected expenditures of$237 million for the current fiscal year. • A detailed planning effort, along with resource forecasting, has identified the need for 64 IPMC staff to augment the Orange County Sanitation District (Sanitation District) staff to complete next fiscal year's work. This is a reduction of four positions from the current fiscal year, and supports the planned CIP. Most of the identified staff are currently working on Sanitation District projects. New hires, and/or replacement staff will be phased in over the fiscal year as required. IPMC will augment Sanitation District staff in Division 750 (Project Management), Division 820 (Process Engineering), and Division 760 (Engineering, and Construction). The functions these people will perform are described in more detail below, along with the recommended budget for FY 2006/07. • The benefits provided by IPMC include the rapid mobilization of highly skilled/technical staff, flexibility of staff mix on an immediate, and as-needed basis, the ability to quickly reduce staff as work loads decrease, project controls expertise, and many years of experience working on similar programs throughout the United States. Staff believes that using a Program Management Consultant approach is a practical, cost-effective, and efficient way to augment Sanitation District staff to deliver the CIP. PRIOR COMMITTEEIBOARD ACTIONS Please see the attached Professional Services Agreement Status Report. Page 1 PROJECT/CONTRACT COST SUMMARY It is anticipated that the Sanitation District will require IPMC's services beyond the existing , five-year contract which is currently scheduled for expiration at the end of FY O6/07. Based on the current schedule and project workload, staff has estimated the level of effort that will be required through FY 20112012. It is currently anticipated that no IPMC Staff will be required after FY 2011/2012; however, staff will continually estimate the need for staff, both permanent and temporary, to support the CIP. Staff is continually evaluating whether to hire permanent staff and reduce the number of IPMC staff requirements. IPMC staff for next fiscal year has been reduced by four. The estimate of IPMC staff required for each fiscal year does not include the addition of more permanent Sanitation District staff which would reduce the IPMC staff needs currently projected. For the anticipated nine-year duration of the IPMC contract,the overall staff costs associated with the CIP are about $300 million (currently estimated at $200 million for Sanitation District staff, and $100 million for IPMC staff). During this period of time, the Sanitation District will be expending approximately$2.2 billion for engineering, design, and construction of capital facilities. The $100 million planned to be expended for IPMC support equates to 4.6% of the total planned expenditures. The average hourly billing rate for IPMC staff is approximately $1201hr. IPMC's billing rate includes salaries, benefits, fixed costs which are sometimes referred to as overhead (Buildings, Administration, Utilities, Insurance, etc.), and a 5% profit. This compares to the projected average billing rate in the Sanitation District's Engineering Department of$118/hr, which also includes salaries, benefits, and overhead costs. The "overhead" rate which is applied to an employee's raw salary is approximately 145%for IPMC, and 175% for the Sanitation District's Engineering Department. As a comparison, the engineering consultants who conduct studies, and develop designs for the Sanitation District typically have an overhead rate range of about 190 to 200%. IPMC overhead rate is 145% because the Sanitation District is providing office space and equipment to their field staff. BUDGET IMPACT ® This item has been budgeted. (Line item: Section ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) No additional funding is requested The costs for IPMC will be charged to the CIP projects. A budget breakdown is not included because funding is included in individual project budgets. Each fiscal year, as projects are planned, scheduled, budgeted, and resource needs identified, a projected cost will be presented to the Planning, Design, and Construction Committee (PDC)for approval. Semi-annual updates on the entire program will also be provided. ADDITIONAL INFORMATION Project Management Office (PMO): The PMO is home to the project management and project controls staff. Page 2 ' Project Management Staffing: In FY O6/07, the PMO will be managing 87 active projects with a budget of$2.3 billion. These project budget range in size from $1 million to over $256 million. The Sanitation District has completed a staffing analysis, and believes a workload of three to eight projects per Project Manager(PM) (based on size, and complexity) is appropriate. IPMC will provide eight personnel to augment the Sanitation District's Project Management Personnel in the PMO. Additionally, two personnel support the PMs in leading their project teams and performing administrative tasks. The ten positions are described below: • One Senior Project Manager and PMO lead (Salgaonkar) to provide general management and supervision of all IPMC staff. The Senior PM will work with the Director of Engineering and the PMO Manager to ensure compliance with contracts, policies, and procedures. The senior PM will provide technical oversight and direction in all aspects of the program, and help ensure successful delivery of the CIP. The senior PM also manages projects when PMs are overloaded or in transition. • Five Project Managers (Acevedo, MacDonald, May, Rapagna, Schirripa) to supplement the seven Sanitation District PMs. The PMs provide day-to-day management and technical knowledge to deliver the assigned projects. • Two Project Managers (MacLeod and Burdette) to deliver the Facilities Engineering (FE)and Special Projects (SP). These smaller capital projects are needed to enhance safety, reliability, and efficiency of facility operations. • One Projects Business Manager(Bilihardt) to provide assistance in the areas of time keeping, resources, accounting, and contracts management. • One Administrative Assistant (Moore) to provide clerical and general administrative support. Project Controls Staff: During the FY06-07, there are 169 projects being tracked by the Project Controls Group. Of these, 87 are active engineering projects, 9 are Planning projects, 9 are in close-out phase and 64 are cancelled or completed. All these projects require a variety of monthly updates including cost reporting, development of performance measures, reports, and other presentation materials. Each function is described below: • One Senior Project Scheduler/Controls Lead (Michael) to provide scheduling and cost reporting support, QA/QC, technical oversight, and direction to the controls staff. • Three Project Schedulers(Strand, Rodriquez, Moseley) assigned to PMO to prepare costs, and schedule updates and milestone tracking in support of PMO Project Managers. Other duties performed by the schedulers include assisting in the CIP budgeting process, cash flow updates, preparation and updating of resource and workload planning information, providing input to the preparation of the Engineering CIP Quarterly Report, and training Sanitation District staff on the use of the various tools including P3ec, Access, and Business Object. • One Program Scheduler/Database Manager(Gaus) to maintain and process the baseline cost, and schedule data in the P3ec and PCS databases. Other duties include providing technical support to Project Managers in preparing monthly and fiscal year cash flow analysis and report development, preparation of bi-weekly PMO meeting presentation materials, and assisting in the preparation of annual CIP updates and other programmatic cost and schedule reports. Page 3 r • One Cost Engineer/Document Control (Ulrich) assigned to assist in time reporting, charge numbers, and general quality assurance of data used in the system. Other duties include preparation of the semi-annual reports, updating the Project Managers' Manual, and maintaining the automated weekly timesheet for Sanitation District staff. She also serves as part-time scheduler on three Engineering CIP projects. Engineering & Construction Management(Division 760) IPMC shall provide personnel to augment the Sanitation District's Engineering and Construction Management(E&CM) staff. E&CM is responsible for providing all the technical resources to the Project Managers. General assignments and duties are as follows: • One Senior Construction Manager (Collins) to assist the Sanitation District's E&CM Division Manager. He will provide technical assistance to the Sanitation District staff in construction related matters, ensure compliance of policies and procedures, coordinate IPMC safety issues, and provide technical input and oversight in areas of construction management, design guidelines, commissioning, and startup. He will also act as resident engineer on selected projects. • Three Field Schedulers (Brand, Meyers, new hire) assigned to E&CM to ensure contractors provide quality baseline schedules and keep them current (a vital element in our claims avoidance program). Field Schedulers review the contractor's initial schedule submittal and the schedule of values. Monthly updates are required from the contractors, which must also be reviewed. Progress claimed by the contractor's must be reviewed against the schedule plan each month for payment, and any request for additional time through change orders must be analyzed. • Two cost estimators (Davison, Zimmerman) assigned to E&CM to prepare estimates for change orders, help negotiate changes during construction, check the design consultant's estimates, and provide input during the annual CIP validation process. • Three Instrumentation & Control (I&C) Engineers (Corey, Wilcox, Woods), and one Electrical Engineer(Etemadi). These Engineers are assigned to the CIP projects to provide specialized technical advice to the project teams during both the design and construction phases. They ensure consultant and construction contractor compliance with Sanitation District requirements, guidelines, and polices. • Nine Project Engineers (Nazemi, Rein, Aghanian, Schock, Shah, Tang, Waite, Vohra, new hire), and one Civil Designer/CADD Operator(Tran), and two CADD operators (Beltran, Muniz). Project Engineers serve as the technical leads within the Sanitation District's project teams, and assist the Project Managers with verification of the project elements, coordinating project requirements with the O&M Department, developing the design consultant SOW, selecting the design consultant, and ensuring the construction documents are prepared using the Sanitation District standards. During the construction phase, they resolve design questions and issues for the Resident Engineers. The Civil Designer/CADD Operator supports the Facilities Engineer PM. CADD operators provide drafting support as directed. • Two Resident Engineers (Cuellar, Bomberger)to support construction management of CIP pipeline and pump station contracts. They will utilize existing Sanitation District CM policies and procedures to represent the Sanitation District, coordinate construction activities, manage the construction contract, and document contractor compliance with the contract requirements. Page 4 • Five Resident Engineers (Held, Bryan, Bomkamp, Davis, new hire)to support construction management of CIP projects within the boundaries of the Sanitation District's two operating treatment facilities. They will utilize existing Sanitation District CM policies and procedures to represent the Sanitation District, coordinate construction activities, manage the construction contract, and document contractor compliance with the contract requirements. • Three Civil Inspectors (Martin, Chemotti, Sankar) to support Quality Assurance of CIP pipeline and pump station projects. They will utilize existing Sanitation District QA policies and procedures to represent the Sanitation District, coordinate construction and traffic control activities, monitor construction site safety, and document contractor compliance with the contract requirements. • Five Civil Inspectors (Kordick, Jimenez, new hire Civil P2-66, two new 1-10 tunnel), one Electrical Inspector(Whitney), one Mechanical Inspector(new hire P2-66), and two Instrumentation & Control Inspector (Stewart, new hire P2.66)to support Quality Assurance of CIP projects within the two Treatment facilities. They will utilize existing Sanitation District QA policies and procedures to represent the Sanitation District, coordinate construction and O&M activities, monitor construction site safety, and document contractor compliance with the contract requirements. • Two Submittals/Document Clerks (Yousef, Hays) to assist Sanitation District staff with processing and tracking of construction contractor submittals, utilizing established Sanitation District procedures, and tools. One Administrative Assistant (Gonzales)to assist Sanitation District staff with processing project correspondence and filing on the P2-66 construction project. • One Electrical/I & C Engineer(Lai)to update the existing single line diagrams for Plant Nos. 1 and 2. Presently, the electronic versions of the single line diagrams do not match the existing field conditions. In addition, there is an existing backlog of field markups ready to be inputted into AutoCAD. The engineering group is very busy working on CIP projects as well as engineering standards, and hence cannot address this backlog in a timely manner. Process Engineering (Division 820) The Process Engineering Division within the O&M Department provides technical support to the Engineering Division during design and construction of the CIP. IPMC will provide three project engineers (Phillips, Takahashi, Sharma)to represent O&M at the various design and construction meetings. Home Office Support: "Home Office Support" is supplementary services from the offices of the Joint Venture Parties, Parsons, and CH2MHill, made readily available to support the needs of the Engineering Department. Technical study (task orders) work is based on providing engineering and other technical support for specific assignments using a pre-agreed upon scope of work, fee, and schedule. These tasks will be as authorized by the Director of Engineering when required, and may include assistance in the following areas: General Administration and Home Office technical Support—general administration support includes accounting, contract administration, invoices, reproduction, and safety reports and reviews. Routine home office technical support includes urgent Page 5 technical support (usually task less than 40 hours) in all areas of waste water process engineering, tunneling, construction and project controls. • STAG Grant Assistance - Preparing and maintaining schedules; compliance .. verification activities, and technical support for grants administration. • CEQA Assistance —support to the Planning Division on a variety of collections and pump station projects in preparing environmental documentation. • NEPA Assistance —primarily for secondary treatment projects. Tunneling Expertise—provide as needed technical expertise on several jobs which involve tunneling. • O&M studies— Support O&M with studies on various issues. • Community Outreach Support —assist the Communications Department as needed on all collections projects in preparing outreach plans, conducting meetings, crisis management plans, etc. • Expedition Training—assist in training on web based Expedition. • PCS troubleshooting and upgrades—assist IT in maintaining the PCS system and upgrades. • General technical support—through out the year issues come up which need immediate attention and technical support. For example, in FY 05/06 we completed the biosolids hauling study, and SARI pipeline realignment study. ALTERNATIVES Increase the Sanitation District's permanent Staff—This option would require a lengthy process and extensive effort to recruit, hire, train, and make productive a large number of new employees. It is also projected that staffing needs will vary from year to year, and that after the completion of the consent order work, the Sanitation District will not need these permanent staff to manage the future CIP. This option would not be optimum for filling these varying needs. CEQA FINDINGS N/A ATTACHMENTS PSA Status Report MS:kf:eh K%depttagendaGoard Agenda Repnds=w Board Agenda&Agenda ReportsWBOBgtem 14(nn)JPMC.doc Page 6 Professional Services Agreement Status Report For IPMC Total Project Budget: $45,092,383 Consultant: IPMC Date Amendment Description Cost Accumulated Costs 8/28/02 Original PSA Program Management Services $3 935,274 $3 935,274 June 3, 1 An increase for the first year of the agreement for an 2003 additional amount of$50,000 $50,000 $3 985 274 June 3, An increase for the first year of the agreement for an 2003 2 additional amount of$50,000. $50,000 $4 035,274 An increase for the first year of the agreement for an June 25, additional amount of$150,000. $150,000 $4,185.274 2003 3 Establish an amount not to exceed $12,484,750 for year two of the contract, FY2003104 $12,484 750 $16 670 024 June 23, 4 Establish an amount not to exceed $12,836,801 for 2004 year three of the contract FY2004/05 $12 836 801 $29 506 825 June 22, Establish an amount not to exceed $15,585,558 for 2005 5 year four of the contract FY2005/06 $15,585,558 $45 092 383 Pending 6 Establish an amount not to exceed $15,319,478 for year five of the contract, FY2006107 $14 999,656 $60 092 039 MS:kf:eh \\Filer-lb dWepl\engUPMCVPMC PSASMIus Repml M62006.doc 04/27/08 PDC COMMITTEE Meeting Date To Bd.of Dir. 05/04/06 05/24/06 �1 AGENDA REPORT Item Number Item Number PDI 14(n) Orange County Sanitation District ®Collect one FacilitiCollet o FROM: David Ludwin, Director of Engineering Originator: David May, Project Manager SUBJECT: BUSHARD TRUNK SEWER REHABILITATION, JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION Approve Change Order No. 1 to, Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4A, with Mike Bubalo Construction Company, Inc. authorizing a no cost value engineering change proposal clause addition to the contract. SUMMARY • The project consists of construction of piping improvements to the Knott and Bushard trunk sewers and the addition of flow diversion structures. • The plans and specifications were prepared by Malcolm Pirnie Inc. and Boyle Engineering and the contract was awarded to Mike Bubalo Construction Company Inc. (MBC) on February 22, 2006 • Change Order No. 1 includes one item. This Rem is to add Value Engineering Change Proposal clause (VECP) to the contract. Addition of the VECP does not change the contract amount or contract duration. Contract Schedule Contract Start Date May 6, 2006 Original Contract Completion Date January 2, 2007 Total Number of Change Orders to Date 1 Current Contract Completion Date January 2, 2007 Actual Completion Date Days Subject to Liquidated Damages 0 Chancre Order No. 1 Content Item No. I Description Amount I Days Type 1 Addition of Value Engineering $0 0 1 Other Change Proposal Clause Total —Change Order No. t 1 $01 0 Item 1 adds a contract mechanism that provides a process for submitting and accepting value engineering change proposals as well as how the Sanitation District, and the contractor will share in the cost savings realized. R.I. aI.. Page 1 Job Completion S r The contract is now 0% complete. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on February 22, 2006 to MBC for an amount not to exceed $11,191,500. There are no change orders to the contract to date. PROJECT/CONTRACT COST SUMMARY Original Contract Price $ 11,191,500 Previously Authorized Changes $ 0 This Change Order (CO No. 1, No Cost) $ 0 Change Orders to Date $ 0 Percent Increase to Date 0% Amended Contract Price $ 11,191,500 BUDGETIMPACT ® This item has been budgeted. (Line item: 2005-06 Budget Book, page 8 47) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ❑ Not applicable (information Rem) The budget for this project was approved and authorized under the Collections Facilities category. See attached Budget Information Table. ADDITIONAL INFORMATION Shortly after the award of contract, MBC approached staff with a concept to reduce project cost, risk, and public impact during the construction of the project. Staff asked MBC to present the technical aspect of their proposed concept for review to see if R was feasible. The concept presented by MBC is to eliminate bypass flow pumping during the construction of the facilities. To do this, MBC proposes an innovative construction method. Facilities will be constructed such that diversion box interiors are placed during low flows. This concept also requires a horizontal realignment of the 96-inch Knott Trunk within the intersection. In addition to substantially reducing project costs, elimination of the bypass flows reduces the risk of spills or accidents from temporary pumps and piping located on the street surface. Staff determined that the concept was technically sound, constructible, and met project objectives. Staff believes that if this concept is adopted, construction will proceed within the nine month duration that has previously been coordinated with the City of Fountain Valley. a .e. 01ro Page 2 To enact this concept, the contract with MBC must be changed. MBC has formally proposed their concept and proposes to split the cost savings with the Sanitation v District. The original MBC proposal, dated April 17, 2006 is attached for reference. Staff has negotiated all changes to contract terms necessary to enact the proposal presented by MBC. The contract terms negotiated for PDC consideration are as follows: • A VECP will be added to the contract by this change order. This will provide a contract mechanism to share cost savings. • The VECP specifies that the net savings to the contract will be split 60% /40% between OCSD and MBC, respectively. When the net savings amount is finalized it will be included in a future change order brought to the PDC for ratification. • The contract bonus amount (Contract Special Provision 2) will also be adjusted from $10,000 to$5,000 per calendar day. This will be included in a future change order brought to the PDC for ratification. • The liquidated damage amount (Contract Special Provision 2) will be adjusted to $5,400 per calendar day. This will be included in a future change order brought to the PDC for ratification. The change to the contract and the deal points will be enacted as follows. First, the VECP clause will be added to the contract via this change order. The VECP specifies that the net contract savings are split 60% /40% as previously explained. This will result in a net contract savings of approximately $1,350,000. The Sanitation District 60% share of this net contract savings is approximately $810,000 and MBC's 40% share would be approximately $540,000. These approximate amounts will be finalized when the final proposal by MBC is submitted and approved by the District. The attached sample calculation based on current estimated costs and savings is attached for reference. Second, MBC will prepare a final proposal that includes final engineering drawings and final cost and savings values as stipulated by the VECP. After acceptance of the full proposal staff would then issue a change order updating the contract. Per the VECP and using the values in the MBC April 17, 2006 proposal, but at a 60% /40% spilt, the contract change would occur in order as follows: Item Description Contract Comment Value 1 Contract Amount $11,191,500 Through CO# 1 2 Net Contract Savings (ICS) per VECP ($1,374,056) Based on MBC proposal 3 Adjusted Contract Amount $9,817,444 4 CO for MBC share to be paid at $540,000.00 40% share of net completion contract savings to MBC 5 Potential CO for bonus payment TBD $5,000 per calendar should MBC qualify day early finish 6 Potential CO for liquidated damages TBD $5,400 per calendar should MBC be assessed. day late finish Note that the Sanitation District share of the net contract savings (approximately $810,000) is credited immediately by contract price reduction. The MBC share of net w„. 01m Page 3 contract savings (approximately $540,000) is processed and paid at the end of the ' contract. Staff is bringing a future change order to the PDC for action in approximately June or July 2006. The future change order will be based upon the acceptance of the final MBC proposal. The change in contract amount would go into affect upon approval of this subsequent change order. ALTERNATIVES The first alternative is to approve Change Order No. 1 with MBC authorizing a contract change. This change is to add a new contract clause only and does not change contract amount or contract length. The second alternative is to take no action and continue with the current contract. The MBC contract amount would remain unchanged. The work would continue with bypass pumping and it's associated higher risk. MBC pursued the value engineering concept at their own risk. By taking this approach no effort has been made to start the procurement process for bypass pumping equipment. Should the project move forward based upon this alternative the contract will likely not be executed within the contract duration because of the lost procurement lead time. CEQA FINDINGS The Program Environmental Impact Report (EIR) was certified in 1999 by the Board of Directors. Addendum No. 8 to the program EIR was certified at the February 2006 Board meeting. ATTACHMENTS 1. Budget Information Table 2. Change Order No. 1 3. Change Order Status Report 4. Change Order Performance Report 5. MBC Value Engineering Proposal, dated April 17, 2006 6. Sample VECP calculation MB:kf:dm:eh H:1dep0agenda1Board Agenda Repons\2006 Board Agenda&Agenda Repods105064tem 14(n).1-24A.doc Raw . .11.1% Page 4 BUDGET INFORMATION TABLE Bushard Trunk Sewer Rehabilitation JOB NO. 1-2-4P CO No. 1 ORIGINAL CURRENT PROPOSEDPROPOSED FUNDS THIS ESTIMATED ESTIMATED: BUDGET PROPOSED TOTAL PROJECT/PHASE . AUTHORIZED PROJECT REVISED AUTHORIZED TO AUTHORIZATION EXPENDITURE . E%PENOED.TD /DECREASE BUDGET BUDGET INCREASE BUDGET DATE REQUEST AUTHORIZATION TO DATE DATE(%) Phase I-Proed Development S 74,000 $ 74,000 $ 74.000 S 74000 $ 74.000 S 74,1349 101% Phase 2-PmIlmina Design $ 10,000 $ 10.000 $ 101000 $ 10.000 $ 10000 E 9,148 91% Phase 3-Deal n E 2,168,000 $ 2.168,000 $ 2,168,000 S 2.168.000 $ 2.168,M $ 2,176,612 100% Phase 4-Corotmatbn IS 48,142,000 S 58.142.000 S 184,948 I $ 56.326,948 S 53,934.054 $ 184,B48 $ 54,119,002 1 $ 26,061.405 48% Phase 5-CommWitik,ning S 416.000 $ 416,000 $ 416.000 $ 326.000 $ 326000 $ 251509 77% Phase 6-Cloae40ul S 72,000 $ 72.000 S 72,000 $ 40000 $ 40,000 S 1,857 4% Phase 7-Cttnfirt,,erty $ 2.698.000 $ 2,698,000 $ 184,948 $ 2.513.052 °, S 2.698,000 S 2.698,000 0% PROJECT TOTAL S 53,580,000 $ 63.580.000 $ - S 63.580,000 :i $ 59,250,054 $ 184,948 $ 59,435,002 S 28.59g180 48% Reimbursable Cosla $ (6D.765) PROJECT NET $ 53.58D.000 $ 63,580,000 1$ - $ 63.580.000 $ 59.250.054 $ 184,948 $ 59,435,002 1 S 28,654.975 46% PSAIContract J PDSA-Bole S 845.300 S 2,487,825 $ 2467.825 'k $ 2467825 $ 2,487,825 E 2,166745 88% PDSA-Ear01 Tech $ 2,000.000 f 2052383 E 2,052,583 ;: $ 2,052583 $ 2,052593 E 09E 1'. PDSA-Malcolm Pirnie $ - S 223.D45 $ 223,M -'. $ 223,045 S 223,045 S 99,267 38% PDSA-Albert Grover 5 - $ 153,000 S 153,000 ;!. S 153.000 S 153000 $ 88.000 58% Contract 1-24P-Amemn $ - 5 7.699777 $ 184,946 S 7,684,725 $ 7.698777 $ imma $ 7,584,726 S 0% atlos E 30.280934 $ 32,24,139 S 3 ,26 ,13: 32281N 30 S 16.247395 5 % f 1,1B1b0 " S111-2 GR 1500 0%S 12iB1, Do $Southem Calitomia Edison Is -is 360000 E 350000 191 It 360,0001 Is 350,000 1$ OX EDMS W380903 y Page 1 of 8 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Mike Subalo Construction Co.. Inc. C.O. No.: One 1 Date: May 24, 2006 Job: Bushard Trunk Sewer Rehabilitation. Ellis and Bushard Intersection Job No. 1-2-4A Consultant: Malcolm Pimie Inc. Amount of this Change Order(Add)(DedusF) $0.00 In accordance with contract provisions, the following changes In the contract and/or contract work are hereby authorized and as compensation, the following additions to or deductions from the contract price are hereby approved. ITEM 1 -ADDITION OF VALUE ENGINEERING CHANGE PROPOSAL CLAUSE This item adds a clause for value engineering proposals to the General Conditions of this contract. The additional terms were required when the Contractor submitted a value engineering change proposal for the elimination of sewer bypass pumping during construction of the proposed facilities in the Ellis-Bushard Intersection. The following provision is added to the General Conditions as Section 60, "Value Engineering Cost Proposal," as follows: A. General. The CONTRACTOR is encouraged and authorized to develop, prepare, and submit in writing proposes for modifying the plans, specifications or other requirements of the contract documents for the sole purpose of reducing the total cost of construction (aka Value Engineering Change Proposals(VECPs) voluntarily. The VECP shall not impair, in any manner, the essential functions or characteristics of the project, including but not limited to service life, economy of operation, and ease of maintenance, desired appearance, or design and safety standards. The CONTRACTOR shall share in any instant contract savings realized from accepted VECPs, in accordance with paragraph (F)of this clause. B. Definitions. 1. "CONTRACTOR's development and implementation costs," as used in this clause, means those costs the CONTRACTOR incurs on a VECP specifically in developing, testing, preparing, and submitting the VECP, as well as those costs the CONTRACTOR incurs to make the contractual changes required by OCSD acceptance of a VECP. 2. "OCSD costs," as used in this clause, means those OCSD costs that result directly from developing and implementing the VECP, such as any net increases in the cost of testing, operations, maintenance, and logistic support. The term includes OCSD's costs of investigating and analyzing a VECP Page 2 of 8 r ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 9272M127 CHANGE ORDER Contractor: Mike Bubalo Construction Co.. Inc. C.O. No.: One 1 Date: May 24 2006 Job: Bushard Trunk Sewer Rehabilitation Ellis and Bushard Intersection Job No. I Consultant: Malcolm Pimie. Inc. submitted by the CONTRACTOR, including any portion thereof paid by the CONTRACTOR pursuant to paragraph (E)(4). The term does not include the normal administrative costs of processing the VECP. 3. "Instant contract savings,"as used in this clause, means the estimated reduction in CONTRACTOR cost of performance resulting from acceptance of the VECP, minus allowable CONTRACTOR development and implementation costs, including Subcontractors' development and implementation costs(see paragraph (G) of this clause). 4. "Net contract savings," as used in this clause, means the total instant contract savings less OCSD cost. 5. 'Value engineering change proposal (VECP)" means a proposal that: a. Requires a change to the contract documents, to implement; and b. Results in reducing the contract price or estimated cost without impairing essential functions or characteristics; provided that it does not involve a change: (i) In deliverable end item quantities only; or (ii) To the contract type only. C. VECP Preparation. As a minimum, the CONTRACTOR shall include in each VECP the information described in paragraphs C(1)through (8) of this clause. If the proposed change is affected by contractually required configuration management or similar procedures, the instructions in those procedures relating to format, identification, and priority assignment shall govern VECP preparation. The VECP shall include the following: 1. A description of the difference between the existing contract requirement and that proposed, the comparative advantages and disadvantages of each, a justification when an item's function or characteristics are being altered, and the effect of the change on the end item's performance. 2. A list and analysis of the contract requirements that must be changed if the VECP is accepted, including any suggested specification revisions. 3. A separate, detailed cost estimate for(a)the affected portions of the existing contract requirement and (b)the VECP. The cost reduction associated with the VECP shall take into account the CONTRACTOR's allowable development and Page 3of8 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Mike Bubalo Construction Co.. Inc. C.O. No.: One 1 Date: May 24. 2006 Job: Bushard Trunk Sewer Rehabilitation. Ellis and Bushard Intersection Job No. 1-24A Consultant: Malcolm Pirnie. Inc. implementation costs, including any amount attributable to subcontracts under paragraph (G)of this clause. 4. A description and estimate of costs OCSD may incur in implementing the VECP, such as test and evaluation and operating and support costs. 5. A prediction of any effects the proposed change would have on collateral costs to OCSD. 6. A statement of the time by which a contract modification accepting the VECP must be issued in order to achieve the maximum cost reduction, noting any effect on the contract completion time or delivery schedule. 7. Identification of any previous submissions of the VECP, including the dates submitted, OCSD and contract numbers involved, and previous OCSD actions, if known. 8. All required design documents, including plans and specifications, necessary to implement the change work pursuant to the VECP. D. Submission. The Contractor shall submit VECPs to the ENGINEER. E. OCSD Action. 1. The ENGINEER will notify the CONTRACTOR of the status of the VECP within 45 calendar days after the ENGINEER receives ft. If additional time is required, the ENGINEER will notify the CONTRACTOR within the 45-day period and provide the reason for the delay and the expected date of the decision. OCSD will process VECPs expeditiously; however, R will not be liable for any delay in acting upon a VECP. If an executed change order or a notice to proceed with the change has not been issued by OCSD, as described in paragraph (E)(3) by the date upon which the CONTRACTOR's VECP specifies that a decision thereon should be made, or such other date as the CONTRACTOR as may subsequently have specified in writing, the VECP shall be deemed rejected. 2. If the VECP is not accepted, the ENGINEER will notify the CONTRACTOR in writing, explaining the reasons for rejection. The CONTRACTOR may withdraw any VECP, in whole or in part, at any time before it is accepted by OCSD. The ENGINEER may require that the CONTRACTOR provide written notification before undertaking significant expenditures for VECP effort. Page 4 of 8 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Mike Bubalo Construction Co.. Inc. C.O. No.: One 1 Dale: May 24, 2006 Job: Bushard Trunk Sewer Rehabilitation Ellis and Bushard Intersection Job No. 1-2-4A Consultant: Malcolm Pirnie. Inc. 3. Any VECP may be accepted, in whole or in part, by OCSD's award of a modification to this contract via an approved change order citing this clause. OCSD may accept the VECP, even though an agreement on price reduction has not been reached, by Issuing the CONTRACTOR a notice to proceed with the change. Until a notice to proceed is issued or a contract modification applies a VECP to this contract,the CONTRACTOR shall perform in accordance with the existing contract documents. The decision to accept or reject all or part of any VECP is a unilateral decision made solely at the discretion of OCSD. The change order shall incorporate the changes in the contract documents which are necessary to permit the VECP or that part which has been accepted to be put into effect, and shall include any conditions upon which OCSD's approval thereof is based if OCSD's approval is conditional. The change order shall also set forth the estimated total net contract savings in construction costs attributable to the cost reduction proposal effectuated by the change order, and shall further provide that the CONTRACTOR be paid forty percent(40%) of that estimated net contract savings in accordance with paragraph (F) below. The CONTRACTOR's cost of preparing the VECP and OCSD's costs of Investigating a cost reduction incentive proposal, including any portion thereof paid by the CONTRACTOR, are excluded from the total estimated net contract savings, as defined in paragraph (B), above. 4. OCSD reserves the right where it deems such action appropriate to require the CONTRACTOR to share in OCSD's costs of investigating and analyzing a VECP submitted by the CONTRACTOR as a condition of considering a VECP. Where such condition is imposed, the CONTRACTOR shall indicate acceptance thereof in writing, and that acceptance shall constitute full authority for OCSD to deduct amounts payable to OCSD from any monies due or that may become due to the CONTRACTOR under the contract. 5. OCSD shall be the sole judge of the acceptability of a VECP and of the estimated share of savings in construction costs from the adoption of all or any part of the VECP. In determining the share of savings, the right is reserved to disregard the contract Bid prices if in the judgment of OCSD those prices do not represent a fair measure of the value of work to be performed or to be deleted. Page 5 of 8 ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Mike Bubalo Construction Co.. Inc. C.O. No.: One 1 Date: May 24, 2006 Job: Bushard Trunk Sewer Rehabilitation. Ellis and Bushard Intersection Job No. I-2-4A Consultant: Malcolm Pirnie, Inc. 6. Acceptance of the VECP and performance of the work there under shall not extend the contract time of completion unless specifically provided for in the Change Order authorizing the use of the VECP. 7. The amount specified to be paid to the CONTRACTOR in the Change Order which effectuates a VECP shall constitute full compensation to the CONTRACTOR for the VECP and the performance of the work there under pursuant to the Change Order. This shall include any actual, consequential or other foreseeable or unforeseeable costs not already accounted for in the CONTRACTOR's development and implementation costs that the CONTRACTOR incurs in the course of performing the work defined by the VECP. This shall also include damages arises from or relating to unknown or differing site conditions, delays arising from the VECP work, escalation of construction costs, unanticipated construction costs, etc. F. Sharing. 1. Rates. If the VECP is accepted, the CONTRACTOR shall share in the net contract savings as follows: OCSD's share of savings is determined by multiplying the net contract savings by sixty percent (60%). CONTRACTOR's share of savings is determined by multiplying net contract savings by forty percent (40%). 2. If OCSD does not accept and receive all items on which it paid the CONTRACTOR's share,the CONTRACTOR shall reimburse OCSD for the proportionate share of these payments. 3. Payment. Payment of the share due the CONTRACTOR for use of a VECP on this contract shall be authorized by a modification to this contract via an approved Change Order to: a. Accept the VECP; b. Reduce the contract price or estimated cost by the amount of instant contract savings; and C. Provide the CONTRACTOR's share of savings by adding the amount calculated to the contract price or fee pursuant to paragraph (F)(1), above. Page 6 of 8 ORANGE COUNTY SANITATION DISTRICT 10844 ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 9272M127 CHANGE ORDER Contractor: Mike Bubalo Construction Co. Inc. C.O. No.: One(l) Date: May 24, 2006 Job: Bushard Trunk Sewer Rehabilitation Ellis and Bushard Intersection Job No. I-24A Consultant: Malcolm Pirnie. Inc. d. No payments will be made to CONTRACTOR under this clause until the contract and all Work on the Project has been completed (e.g., Project reaches Final Completion). G. Subcontracts. In computing any adjustment in this contract's price under paragraph (F) of this clause, the CONTRACTOR's allowable development and implementation costs shall include any Subcontractor's allowable development and implementation costs clearly resulting from a VECP accepted by OCSD under this contract, but shall exclude any value engineering incentive payments to a Subcontractor. The CONTRACTOR may choose any arrangement for subcontractor value engineering incentive payments; provided, that these payments shall not reduce OCSD's share of the savings resulting from the VECP. H. Data. The Contractor may restrict OCSD's right to use any part of a VECP or the supporting data by marking the following legend on the affected parts: These data, furnished under the Value Engineering Change Proposal clause of the contract shall not be disclosed outside OCSD or duplicated, used, or disclosed, in whole or in part,for any purpose other than to evaluate a value engineering change proposal submitted under the clause. This restriction does not limit OCSD's right to use information contained in these data if it has been obtained or is otherwise available from the CONTRACTOR or from another source without limitations. If a VECP is accepted, the CONTRACTOR hereby grants OCSD unlimited rights in the VECP and supporting data, except that, with respect to data qualifying and submitted as limited rights technical data, OCSD shall have the rights specified in the contract modification implementing the VECP and shall appropriately mark the data. ADDED COST THIS CHANGE ORDER ITEM: $0.00 TIME EXTENSION THIS CHANGE ORDER ITEM: 0 Calendar Days TOTAL ADDED COST THIS CHANGE ORDER: $0.00 TOTAL TIME EXTENSION THIS CHANGE ORDER: 0 Calendar Days v Page 7 of 8 ORANGE COUNTY SANITATION DISTRICT 108"ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 9272"127 CHANGE ORDER Contractor: Mike Bubalo Construction Co.. Inc. C.O. No.: One 1 Date: May 24, 2006 Job: Bushard Trunk Sewer Rehabilitation. Ellis and Bushard Intersection Job No. I-2-4A Consultant: Malcolm Pirnie, 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 change order and all previously issued change orders. It is therefore mutually agreed that no 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 the Contractor, except as expressly granted and approved by this change order. SUMMARY OF CONTRACT TIME Original Contract Date: May 8, 2006 Original Contract Time: 240 Calendar Days Original Completion Date: January 2, 2007 Time Extension this C.O.: 0 Calendar Days Total Contract Time Extension: 0 Calendar Days Revised Contract Time: 240 Calendar Days Revised Final Completion Due Date: January 2, 2007 Time Subject to Liquidated Damages: N/A Actual Final Completion Date: N/A Original Contract Price $11,191,500.00 Prev. Authorized Changes $ 0.00 This Change(Add) (BeducE) $ 0.00 Amended Contract Price $11,191,500.00 Page 8 of 8 r ORANGE COUNTY SANITATION DISTRICT 108" ELLIS AVENUE, P.O. BOX 8127 FOUNTAIN VALLEY, CALIFORNIA 92728-8127 CHANGE ORDER Contractor: Mike Bubalo Construction Co.. Inc. C.O. No.: One 1 Date: May 24, 2006 Job: Bushard Trunk Sewer Rehabilitation. Ellis and Bushard Intersection Job No. 1-2-4A Consultant: Malcolm Pirnie, Inc. Board Authorization Date: May 24, 2006 ORANGE COUNTY SANITATION DISTRICT Recommended by: Tod E. Haynes, P.E. Date Engineering and Construction Manager Approved by: David A. Ludwin P.E. Date Director of Engineering Accepted by: Mike Bubalo Construction Co., Inc. Contractor Date EDMS 003808555 CHANGE ORDER STATUS REPORT BUSHARD TRUNK SEWER REHABILITATION - ELLIS/BUSHARD INTERSECTION JOB NO. I-2-4A CO #1 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT February 22, 2006 $11,191,500 $11,191,500 240 240 'CO NO. 1 May 242006 $0 $11,191,500 0.00% 0 240 EOMS 003808554 CHANGE ORDER PERFORMANCE REPORT BUSHARD TRUNK PIPE PROCUREMENT JOB NO.F24A,CHANGE ORDER NO.1 Contractor:MIKE BUSALO CONSTRUCTION COMPANY Project Category:COLLECTIONS Design Consultant:BOYLE ENGINEERING y MALCOLM PIRNIE INC. Contract%Complete:0% Original Contract Prim: $11,191.500 CHANGE ORDER TYPES TRACKED INFORMATION ONLY Reimbursable Design Non-Relmn buable Subtotal CO Types Unknown Condition Staff Requested Change Errors Design Errors Tneked' Other Total Change Orden $g 0.00% $0 0.00% $0 0.00% SO 0.00% VI -CODA so 0.00% $0 0.00% this Period Change Orden to $g 0.00% $0 0.00% $0 0.00% $0 0.00% SO 0.00% $0 0.00% $0 D.00% Dale Change Order Total $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0,00% $0 0.00% Program <3.00% <1.00% 0.00% <1.00% <5.00% 0,00% <5.00% Performance Goals 'The Change Order Management Plan Racks the preceding tam change ender types Version 3/1/2006 EOMS 00809862 ibe Bubelo Mffaldwinonstruction nue Inc. Par , Avenue Park, CA 91706-1814 April 17, 2006 Mr. David K. May, P.E. Project Manager Orange County Sanitation District P.O. Box 8127 Fountain Valley, CA 92728-8127 Dear Mr. May: BUSHARD TRUNK SEWER, ELLIS AND BUSHARD INTERSECTION PROIECT I-2-4A This letter summarizes previous discussions between staff from the Orange County Sanitation District (OCSD) and Mike Bubalo Construction Co., Inc. in regard to a value engineering proposal for the subject project. This value engineering proposal utilizes the capacity of the existing 78-inch Magnolla Trunk Sewer as the bypass conduit. The original design did not consider this concept. The existing Magnolia Trunk Sewer was to be removed and replaced while the sewage flows were to be pumped around the work area. This concept of using the existing sewer as the bypass can be maintained during construction of this system if changes are made to the design of the Bushard Diversion Box and the construction of another diversion box In Ellis Avenue. The alignment of the proposed 96-inch sewer would also have to be moved approximately 20 feet north to parallel the existing Magnolia Trunk Sewer. This would eliminate the need and risk of pumping up to 95 million gallons per day above ground for approximately five months. This redesign proposal has been reviewed by the relevant consultants and engineering staff of the OCSD. These consultants and staff members have determined that the redesign is adequate, practical, and constructible. Mike Bubalo Constrcution Co., Inc. has used this method of installing precast inserts in other diversion/junction structures to divert sewage flows in lieu of bypass pumping. License #771279 A into@bubalo.com w .bubalo.com Phone: (626) 960.7787 Fax: (626) 960-7897 Mr. David May, P.E. Page 2 of 2 4/17/2006 The benefits for the OCSD are twofold. The revised design provides direct and current expenditure savings on this project and greatly reduces the risk of a sewage spill. All diversions of sewage will be contained below ground Inside a diversion structure. Our estimate for the redesign and construction of the parallel sewer is considerably lower than the original design. Please see the enclosed worksheets describing the cost savings of this value engineering proposal. If you have any further questions, please contact me at(626)960-7787. Sincerely, Mike Bubalo Cons/trcution Co., Inc. DAVE SOREM General Manager "I, Dave Sonem, certify that the Request for Change is made in good faith, and that I have reviewed all supporting documentation and data, which is inducted herewith, and it is accurate and complete. I have determined from my independent review of the Request for Change that the same is meritorious, and that the amount and/or time extension requested accurately reflects the contract adjustment for which I believe CCSD is liable; and that I am duly authorized to certify the Request for Change on behalf of MikeQubalo Constructlon Co.,Inc." DAVE SCREM General Manager Enclosures: Value Engineering Proposal VALUE ENGINEERING PROPOSAL: AdddldrW Coos Unit Ou offly Coo Extended Pipe Supports(] 6 9"(P Bypass Swoon Box(SISB) LS 1 $ W.510.46 $ 58510.46 Pillmu femporery Bypass Plugs LS 1 $ 89,535.E $ 69,535.69 Modify ConWuctloo of BSB LS 1 $ 30,fMA2 $ 30,826d2 Pipe Supped for W Q Buahard Diversion Box(BDB) LS t If 35,193.60 $ 35,193.60 Precast Concrete heed and Trammon,Serraure LS 1 $ 201.403.91 $ 201,403.91 PiPe Support for 96'0 Ellis aversion Box(EDB) LS 1 $ 0255.23 $ M255.23 ConvaNclion of Ellis Diversion Box(EDB) LS 1 $ 496,143.52 $ 4W.143.52 Inetelleden of Precast Insert in EDB LS 1 $ 177,72Cn $ 1Tr,724.T Restoration of NE Comer of Susheof 8 Ellis LS 1 $ 25,000.W $ 25.000.00 AEd6onel 4U of W OCWD Walerfnle LF 40 s 5s0.W $ 23,200A0 Design Costs for Precast BIDS anti EDB LS 1 8 150=00 If 150.000A0 FbaaMe RII(M Rem a9) CY 160 s 150.00 $ 24,000.00 Additional Review Costs of OCSDIIMPC IS 1 $ 25,000.00 $ 25.M0,00 R&R Traffic Signal4P NE Comer of Bosoard 8 arm LS 1 $ W.6W.M $ 50.500.00 Additional Shoring for EDB$Realignment LS 1 If 125.000.00 $ 125.000.00 $ 1,521293M Addlaonal Swrims, Unit (:oat Extended BYPass Bid Item d5 LS 1 $ 2.7000W.00 5 2.M),M W Bypass Discharge Stamm, LS 1 $ 145,000.00 $ 145.90UA0 Remove and Dispose of 78'RCP LF 115 $ W.00 $ 10,350g0 IOMa Tmnstion Smu re Modification LS 1 $ 15,000.00 $ 15.WG.M $ 21ero.M.01, Coraratlteors Net Sevega $ 1,349,05B.40 Veen,Engineering wt $ 61`3,521120 AddWomot Savings for Nan Bid gem Coats Unit Coat Extended Eladdcal SaWngs for M Pumping MNTH 6 $ W,000.00 $ 30D,OOD.00 VaWe Engineering Split $ t50,000.08 Total Value Engirn,ednp Split If M4,52g,20 DAILY EXTRA WORK REPORT sIPURT.an.. Pipe supports OWNER/CLIENT ORANGE COUNTY SANITATION DISTRICT PROJECT TITLE Bushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO. 1-24-A PERFORMED BY MIKE BUSALO CONSTRUCTION CO.,INC. OESC'RIP77O.N OF WORK THIS RLPORT 1 $58 510.46 Detalled coat breakdown of the pipe supports @ the Bypass Suction Box. Both the existing 78"and 96"w0I have to be temporarily supported. AAWOFN 1aApr--06 cocarov Bypasr Suction Box No. Equipment Hours Hourly Extended No. LABOR Hours Hourly Extended Of Description O er Rate Amount Of Description Worked Rate Amount 1 KOMATSU P.C.650 EXCAVATOR 16 S276.60 _ $4.426.60 1 SUPERVISOR mg 32 $70.00 $2,240.00 1 CAT 235 EXCAVATOR 16 $169.80 $2,716.80 a $105.00 1 CAT 950 LOADER 18 SISISS $829.60 6 LABORER Reg. 32 1 $48.67 $8,980.64 1 CAT 966 LOADER 18 $86.70 $1,067.20 d.T $61.41 4 END DUMPS 16 71.00 1 $4,544.00 4 OPERATOR Rea 16 $62.32 $3.91 1 WATER TRUCK 16 $55.85 $893.60 or $82.68 4 3f4 TON PICKUP 24 $11.40 $1,094.40 4 TEAMSTER Reg. 18 $48.42 $3.098.08 1 CAT 446E BACKHOE 16 1 $67.651 $1082.40 Or $66.13 1 MECHANIC TRUCK .._ 32 $42.36 $1,355.52 1 OPERATOR Rag 32 $85.32 $2,090.24 FOREMAN O.T. $91.45 1 MECHANIC Rag 32 $83.32 $2,028.24 O.T. $84.11 Uri Materiel #Of Unit Extended LABOR SUB-TOTAL $22,404.46 of Deacd lionI Unite Cost Amount 20% MARKUP $4480.90 EA W 14X89 Beam 4 $996.60 $3987.20 SUBCONTRACTS: Ls Wire,Turnbuckles.Clam Lumber,Eta 1 1 $5.000 $5000.00 i <$5000.00 @ 10%MARKUP >$5000.00 5% MARKUP Equipment,Material Special Fees Subtotal $26996.32 1c 4o015%MIRK-UPS a a g4049.46 531045.77 rOrAL LAI10R co s $26.885.38 REPORT SUBTOTAL $87931.74 1%eoNakoAoeusTNENr $679.31 PAGE of ITOTAL THIS REPORT $58.510.46 DAILY EXTRA WORK REPORT RC.PORTNO Bypass Plugs OWNER I CLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Sushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO.1-2-4-A PERFORMED BY MIKE BUBALO CONSTRUCTION CO., INC. DESCRIPTION OF IPORK THIS REPORT': $69,535.69 Flow through bypass plugs will have to be installed prior to installing the second slab in the BSB w1r 14AL 10-Apr-06 LOCA-•,CN Bypass Su,ton Box No. Equipment Hours Hourly Extended No. LABOR Hours Hourly Extended Of Description O er Rate Amount Of Description Worked Rate Amount 1 SUPERVISOR Reg. 16 $70.00 $1,120.00 2 AIR COMPRESSOR 16 $14.05 1 $449.60 __ OT $105.00 1 P&H OMEGA 20-TON CRANE 16 $85.75 $1.372.00 6 LABORER Reg 16 $46.67 $4,480.32 4 314 TON PICKUP 16 $11.40 $729.60 O.T. $61.41 4 JACK HAMMERS 16 $2.40 $153.60 2 OPERATOR Rea 16 $62.32 $1,994.24 1 CAT 235 EXCAVATOR 18 $169.80 $2,716.80 o-T $82.68 1 CAT 446E BACKHOE 16 $67.65 $1,082.40 TEAMSTER Reg. S48.42 D.i. $66.13 1 OPERATOR Reg. 16 $65.321 $1.045.12 FOREMAN o.r $91.45 _ MECHANIC Rag . $63 32 or $84.11 U n' Material #Of Unit Extended LABOR SUB-TOTAL $8.639.68 VOf Description Units Cost Amount 20% MARKUP $1.727.94 SUBCONTRACTS: EA 78"Bypass Plug 20'Lo 1 $15 000 $15,000.00 Subcontractor to Sawcut Pipes @ Spdngline $10.000.00 EA 96"B ss Plug 20'Long _ .. 1 E20,000 $Z0,000.00 <$5000.00 Q 10%MARKUP $500.00 >$5000,00 0 5% MARKUP $250.00 E u merd Material, $ ecial Fees Subtotal WO 504.00 D ADD 15%MARK-UP @ a a E8225.60 E47,729.80 TOTAL tnBOR COSTS $10,367.62 REPORT SUBTOTAL $68.847.22 1%BONDING ADJUSTMENT $688.47 PAGE/of TOTAL THIS REPORT $69,535.69 DAILY EXTRA WORK REPORT Second Slab OWNER/CLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Bushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO. 1-2.4-A PERFORMED BY MIKE SUBALO CONSTRUCTION CO., INC. PF_SCRIP])0NOPI1'ORATHISREPOR7 . S30,8 66.42 A second pour will have to made in the SSS after the bypass plugs are installed in the existing 96'and 78". This will bring the concrete fill to the invert elevation. We will also fan the concrete fill into the corners and walls to enhance the flow characteristics of the structure. °'FD`"°`"` 10-Apr-06 co=�nc, dypess Suction Box No. Equipment Hours Hourly Extended No. LABOR Hours Hourly Extended Of Description OW Rate Amount Of Description Worked Rate Amount _ __ _ _ 1 SUPERVISOR Reg 24 $70.00 51,6B0.00 2 AIR COMPRESSOR 24 $14051 $674.40 O.T. $105.00 1 WATER TRUCK 24 S55451 $1.340.40 8 LABORER Rep. 24 S46.67 S6,72OA8 4 3N TON PICKUP 24 $11 AO $1.094 40 or $6141 1 4 AIR DRILLS _ 24 $6.25 S600.00 2 OPERATOR fNa 24 $62.32 $2,991.36 1 P 8 H OMEGA 20-TON CRANE 24 $85.75 $2.058.00 Or $82.68 TEAMSTER Fall. $48.42 O.T. S66.13 1 OPERATOR Reg 24 $65,32 $1.567.58 FOREMAN OT. S91.45 MECHANIC Rea $63.32 O.T. 554.11 Un Material #Of Unit Extended LABOR SUB-TOTAL $12,959.52 OI Description units Coal Amaral 20% MARKUP 52.591 90 I SUBCONTRACTS : CY 4000 psiConcrete ___ _ 25 $160.00 $3,750.00 LB Rebar _ 1 S3,000 53,000.00 5500.00 $500.00 <$5000.00 @110% MARKUP >$5000.00 a 5% MARKUP Equipment.Material. Special Fees Subtotal 1 $13 017.20 4 ADD 15%MARK"UP Q a o $1 952,58 $14969.78 TOTAL LA 60R COSTS $15.551.42 REPORT SUBTOTAL $30,521.20 Ix eoNarvO ADJUS7MEM $305.21 PAGE I of ITOTAL THIS REPORT $30,826.42 DAILY EXTRA WORK REPORT REPORT`'O Pipe support OWNER I CLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Bushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO.1-2-4-A PERFORMED BY MIKE SUBALO CONSTRUCTION CO., INC. DESl JUP170MOF WORK rRrsrtEPORT: $35,193.60 Detailed cost breakdown of the pipe support @ the Bushard Diversion Box. The existing 96"will have to be temporarily supported. This work also includes excavation for the Transition Structure. W-Apr-W LOL<1MM %shad 0mrsI0r1 e0Y No. Equipment Hours Hourly Extended No. LABOR Hours Houry Extended Of Description Opy Amount Of Descn ticn Worked Rafe Amount i KOMATN P.C.650 EXCAVATOR 12 $276.60 $3319.20 1 SUPERVISOR Reg. 16 $70.00 $1,120.00 1 CAT 235 EXCAVATOR 12 $169.80 $2 037.60 O.T. $105.00 1 'CAT 950 LOADER 12 $51.85 $62220 6 LABORER Roo. 16 $46.97 S4,480.32 1 CAT 968 LOADER 12 $86.70 $800.40 " $61AII 4 IEND DUMPS 12 $71.00 $3408.00 4 OPERATOR Rra 12 $62.32 $2.991.38 1 WATER TRUCK 12 $55.85 $670.20 OT $82.68 4 3l4 TON PICKUP 16 $11.40 5729.60 4 TEAMSTER Rea 8 $48.42 $1,549.44 1 CAT 446E BACKHOE 12 . $07.65 $871.8D : $56.13 1 MECHANIC TRUCK 16 $42.36 $677.76 1 OPERATOR Rea 16 $65.32 $1,045.12 FOREMAN o.r. $91.45 i MECHANIC Rea 1 16 $63.32 $1,013.12 0.1. . $84.11 Unih Material 8Of Unit Extended LABOR SUB-TOTAL $12,199.36 Of Description Units Cost Amount 20% MARKUP S2439.87 EA W 14X89 Beam 2 $996.80 $1,993.60 SUBCONTRACTS: LS Wire,Tumbuckles,Clamps.Lranher,Etd. 1 S2.SW $2,50000 I J $5000.00 @ 10%MARKUP $5000.00 5% MARKUP E u' L Material S 'al Fees Subtotal $17.5a ADD 15%1A4Rx-UP @ a a $2635.55 $20.205,91 TOTAL LABOR COSTS $14.639.23 REPORT SUBTOTAL $34.845.15 1%a FNGAGIUSTMENT 348.45 PAGE/oft ITOTAL THIS REPORT $35,193.60 DAILY EXTRA WORK REPORT NUPORTM): Precast Insert OWNER I CLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Bushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO. 1�2-4-A PERFORMED BY MIKE SUBALO CONSTRUCTION CO.,INC. DFSC'RIPTIO.YOF WORK THISREPORT: $201,403.91 The precast concrete insert will be installed after the existing 96'is removed. The existing 9T will be wire sawed twice inside the structure and once outside. A transition structure wdl have to be constructed °"1E°`M°'* 10-Apr--06 from the W'to the ProDosed 108" ca+r'o'r eushard Diversion box No. Equipment Hours HourlyExtended No. LABOR Hours Hourly Extended Of Description Oper Rate i Amount Of Description Worked Rate Amount I T. SUPERVISOR Rea 1 40 1 $70.00 $2,800.00 INSTALL PRECAST INSERT O.T $ 105.00 4 3/4 TON PICKUP 16 $11.40 $729.60 6 LABORER Rea 56 $46.67 $15,681.12 1 CAT ONLOADER 16 $06.70 $1067.20 O.T. $61A1 1 P 8 H 90-TON CRANE 16 $163.80 $2.620.80 2 _ OPERATOR Rea. 40 $62.32 $4,985-60 O.T. $82.68 TEAMSTER 'Reg. $48.42 O.T $66.13 1 OPERATOR Rep. 56 $65.32 $3,657.92 FOREMAN O.T $91A5 MECHANIC Rea $63.32 O.T. $84.11 Uri Material AOf Unit Extended LABOR SUB-TOTAL $27,124.64 Of Description Units Cost Amount 20% MARKUP $5.424.93 SUBCONTRACTS: EA '6'X 20'-1"SNxI Plates 4 31,300 - $5.200.00 LNA SWctures $120,000.00 LS P 1PIas8c Temp.Cover 1 $3A00 $3 000.00 Subcontractor to wire saw existing RCP $15,000.00 LS Trens.Struct.Fonns/Felsework 1 $3,000 1 $3,000.00 <$5000.00@10%MARKUP $500.00 LS Concrete/Rebar and T-Lock 1 1 $5.0w 1 $it 000.00 I>$5000.00 d 5% MARKUP $6 500.00 Equipment, Material Special Fear; Subtotal I $21,617.60 a ADO I4%M4rm-GP R o o $3,242.64 $24 860.24 TOTAL LA90R COSTS $32 549.57 REPORT SUVOTAL $199.409.81 1%BONDINGAD.NSTMFJJT 1994.10 PAGE/oft TOTAL THIS REPORT $201,403.91 DAILY EXTRA WORK REPORT icPkTd2 Pipe support OWNERICLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Bushard Trunk Sewer Rehabilltation-Ellls Avenue Work JOB NO. 1-2-4-A PERFORMED BY MIKE BUSALO CONSTRUCTION CO.,INC. DESCRIP770MOF WORK THIS REPORT: F $29,255.23 Detailed cost breakdown of the pipe support @ the Ellis Diversion Box. The existing 96"will have to be temporarily supported. °"iEOfN 10-Apr-06 wc47oK Ear Drmnson Box No. Equipment Hours Hourly Extended No. LABOR Hours Hourly Extended Of Desai tion Oper I Rate Amount Of Description Worked Rate I Amount 1 KOMATSU P.C.650 EXCAVATOR B 1 $276.60 $2212.80 1 SUPERVISOR Reg 16 $70.00 $1,120.00 1 CAT23SEXCAVATOR 8 1 $169.80 $1,358.40 O.T. $105.00 1 iCAT950LOADER 8 $51.85 $414.80 6 LABORER Rea 16 $48.87 $4,480.32 1 CAT 986 LOADER 8 $66.70 $533.80 CT. $61.41 4 END DUMPS 8 $71.00 $2 72.00 4 OPERATOR Rea- 8 $62.32 $1,994.24 1 WATER TRUCK 8 $55.85 $448.00 CT $82.68 4 314 TON PICKUP 12 $11.40 $547.20 4 TEAMSTER Rea 8 $48.42 $1,649.44 1 CAT 446E BACKHOE 8 $67.65 $541.20 ' O.T. $66.13 1 MECHANIC TRUCK 16 $42.36 $677.76 1 OPERATOR Rea 16 $65.32 $1,045.12 FOREMAN O.T. $91.45 ' 1 MECHANIC Rea 18 1 $63.32 $1.013.12 l O.T. . $84.11 Units Material #Of Unit Extended LABOR SUB-TOTAL $11=24 Of Description Units Cost Amount 20% MARKUP $2 40.45 EA IW 14X89 Beam 2 $996.80 $1993.60 SUBCONTRACTS: LS ,Wire,Turnbuckles Clamps,Lumber,Eh:. 1 $ 500 $2,500.00 <$50D0.00 @ 10%MARKUP >$5000.00 0 5% MARKUP Equipment. Material Special Fees Subtotal $13 488.16 G ADD 15%M4RK-UP® 2.024.72 $15 522.88 TOTAL LABOR COSTS $13,442.09 REPDRTWBTOTAL $28,965.57 1%90NDINGADJUST ENT 289.66 PAGE of ITOTAL THIS REPORT $29,25523 DAILY EXTRA WORK REPORT REPORT 9D Construct EDB OWNER ICLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Bushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO. 1-2-4-A PERFORMED BY MIKE BUSALO CONSTRUCTION CO.,INC. DFSCRIPTIONOF WORK THIS REPORT: $496 143.52 The precast concrete insert will be installed after the existing 96"is removed. The existing 96"will be wire sawed twice inside the structure. r"m0.`NQ°" 10-Apr06 LOCArxVr Eee Dwrkon Box No. Equipment Hours Hourly Extended No. LABOR Hours Hourly Extended Of Description O er Rate Amount Of Descd tion Worked Rate Amount ! 1 SUPERVISOR Reg 24 $70.00 $1,680.00 _ O r. $105.00 6 LABORER .Rea. 24 $46.67 $6,720.48 _ O.T. $61AI 2 OPERATOR Rea 24 $62.32 $2,991.38 o T 982.68 4 TEAMSTER Reg. 24 S4S.42 S4,648.32 EXTRA EXCAVATION O.T. 1 $68.13 1 KOMATSU P.C.650 EXCAVATOR 24 78.80 $6838.40 1 OPERATOR Ree. 24 $65.32 $1,587.58 1 CAT 235 EXCAVATOR 24 E769,80 $1,075.20 FOREMAN O.T $91.45 1 CAT 95O LOADER 24 $51.85 1 244.40 1 MECHANIC Rea 24 $63.32 $1,519.68 1 CA7966LOADER 24 $88.70 $1.600.80 O.T f84.11 4 ENO DUMPS 24 $71.00 $6,816.00 , 1 WATER TRUCK 24 $55.85 1,340.40 4 3I4 TON PICKUP i 24 $11.401 $1094.40 1 CAT 446E BACKHOE 24 $67.85 $1623.60 Uniti Materiel 001 Unit Exended LABOR SUB-TOTAL $19,127.52 Of Description Umh Cost Amaral 20% MARKUP $3825.50 _ SUBCONTRACTS : EA V X 2I7-l"Steel Plates 4 $1 300 $8 DO LNA Structures $400.000.00 LS PI oodlPlestie Temp.Cover 1 S3,000 1 $3000.00 Subcontractor to wire sew existing RCP $10,000.00 <$5000.00 Q 10%MARKUP $500.00 >S5000.00 0 5% MARKUP $20.250.00 Equipment,Material, Spedal Fear Subtotal 532,633.20 D ADD IS%MARK-UP @ o $4.894.98 $37 528.18 TOTAL LABOR COSTS g22 953.02 REPORT SUBTOTAL $491.23120 I%BONDING ADJIIaTMENT 491231 PAGE ofI TOTAL THIS REPORT $496,143% DAILY EXTRA WORK REPORT REroRrAD Precast Insert OWNER/CLIENT ORANGE COUNTY SANITATION DISTRICT PROJECTTITLE Bushard Trunk Sewer Rehabilitation-Ellis Avenue Work JOB NO. 1-2-4-A PERFORMED BY MIKE SUBALO CONSTRUCTION CO., INC. DESCRIPT/ONOF WORK THIS REPORT: $177,724.77 The precesl concrete insert will be installed after the existing 98"is removed. The existing 98"will be wire sewed twice inside the structure Extra concrete fill will have to be installed after precast insert is set. DA1F0F1 TDApr-06 Lw ]W)x Ms Diuerelon Bw No. Equipment Hours Hourly Extended No. LABOR Hours Hourly Extended Of Description O r Rate Amourd Of Des ion Worked Rate Amount 1 SUPERVISOR Rea. 24 470.00 $1,680.00 INSTALL PRECAST INSERT O.T. $105.00 4 iY4TONPICKUP 16 $11.401 $729.60 6 LABORER Rsp. 24 $46.67 S6,720.48 1 CAT 986 LOADER __ 16 $66.70 I $1,087.20 Or $61.41 1 In&H 90-TON CRANE 16 $183.80 1 S2,620.80 2 OPERATOR Rog. 18 $62.32 $1.994.24 O.T. S82.68 TEAMSTER Rsµ $48.42 O.T $86.13 1 OPERATOR Rag 24 $86.32 $1,587.88 FOREMAN G.T. $91.45 MECHANIC M* $83.32 O.T. $84.11 Lin Material NOI UM ExterKled LABOR SUB-TOTAL $11.962.40 Of M I Description Un'ta Coat Amount 20% MARKUP $2392.48 SUBCONTRACTS : EA 8'X 2B-1"Steel Plates 4 S1,300 1 $52W.00 LNA Structures $120,000.00 LA PhraniodliFlastic Temp. Cover 1 $3.0001 $3,000.00 Subcontractor to wire saw existing RCP $10,000.00 CV Concrete Fill Inside Structure 80 $150 $9,000.00 <$5000.00 0 10%MARKUP $500.00 > 5000.00 @ 5% MARKUP $8250.00 Equipment.Material Special Fees Subtotal 1 $21617.60 O ADD r5%MARK-UP @ a a $3,242.64 $24 880.24 TOTAL LABOR COSTS S14 354.88 REPORT SUBTDTAI- 1 $175.985.12 1%BONDINOADJUSTMENT 1759.65 PAGE off ITOTAL THIS REPORT $177,724.77 vroposea oy Subalo kdditional Costs Noe Supports(78"&96") @ Bypass Suction Box $ 58,510.46 'illow(remporary Plugs $ 69,535.69 Modify Construction of BSB $ 30,826.42 pipe Support for 96"@ Ellis Diversion Box $ 35,193.60 >recast Concrete Insert and Transition Structure $ 201,403.91 lips Support for 96"@ Ellis Diversion Box $ 29,255.23 :onstruction of Ellis Diversion Box $ 496,143.52 nstallation of Precast Insert in EDB $ 177,724.77 Restoration of NE Corner of Bushard& Ellis $ 25,000.00 additional 40'of 30"OCWD Waterline $ 23,200.00 )esign Costs for precast BDB and EDB moved to row 28 -towable Fill (bid Item 9) $ 24.000.00 \ddifional Review Costs of OCSD/IPMC moved to row 30 R&R Traffic Signal @ NE Corner of Bushard and Ellis $ 50,500.00 %dditional Shoring for EDB and Realignment $ 125,000.00 Subtotal of added work $ 1,346,293.60 additional Savings 3ypass Bid Item*5 $ 2,700,000.00 3ypass Discharge Structure $ 145,000.00 Remove and Dispose of M RCP $ 10,350.00 (nott Transition Structure Modification $ 15,000.00 Subtotal of deleted work $ 2,870,350.00 :stimated Cost of Reduction Cost of Performance $ 1,524,056.40 )esign Costs for precast BDB and EDB $ 150,000.00 natant Contract Savings $ 1,374,056.40 additional Review Costs of OCSD/IPMC $ 25,000.00 Jet Contract Savings $ 1,349,056.40 10% Net Contract Savings(OCSD) $ 809,433.84 10% Net Contract Savings $ 539,622.56 :ontract Adjustments :ontractAmount $ 11,191,500.00 CS $ (1,374,056.40) ldjusled Contract Amount $ 9.817.443.60 ;O for contractor share to be paid at completion $ 539,622.56 MINUTES OF THE SPECIAL JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE& STEERING COMMITTEE Orange County Sanitation District Wednesday,April 19, 2006, 5:00 p.m. A special joint meeting of the Finance, Administration and Hunan Resources Committee and the Steering Committee of the Orange County Sanitation District was held onApril 19, 2006, at 5:00 p.m., in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS STAFF PRESENT: DIRECTORS PRESENT: Jim Ruth, Interim General Manager Darryl Miller, Chair Jim Herbert, Director of Operations and Maintenance Mike Duvall, Vice Chair Lisa Tomko, Director of Human Resources Bill Dalton Lorenzo Tyner, Director of Finance Rich Freschi Mike White, Controller Phil Luebben Lilia Kovac, Committee Secretary Joy Neugebauer Mike Moore James W. Silva Ed Torres Mark Waldman Jim Ferryman, Vice Board Chair OTHERS PRESENT: Brad Hogin, General Counsel DIRECTORS ABSENT: Robert Grantham Steve Anderson, Board Chair Toby Weissert (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller had no report. (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. a. Minutes of the Special Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 19, 2006 Page 2 (6) REPORT OF DIRECTOR OF FINANCEITREASURER Director of Finance, Lorenzo Tyner,had no report (7) REPORT OF DIRECTOR OF HUMAN RESOURCESPUBLIC INFORMATION OFFICE Lisa Tomko, Director of Human Resources, had no report (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, had no report (9) CONSENT CALENDAR ITEMS No items were considered END DIE CONSENT CALENDA (10) ACTION ITEMS a. FAHR06-26 Recommend to the Board of Directors to consider Ordinance No. OCSD- 28, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Wastewater Discharge Regulations, and Repealing Ordinance No. OCSD-01: - 1). Motion to read Ordinance No.OCSD-28 by title only and waive reading of said entire ordinance. 2). Motion to introduce Ordinance No. OCSD28, and pass to second reading and public hearing on May 24, 2006. Lorenzo Tyner, Director of Finance,briefly reviewed a table of industrial users with current user rates with a comparison of proposed rates using a new rate methodology, eliminating the tax credit adjustment systemfor Class I and Class II permits Robert Grantham of Carollo Engineers presented the rate study results, and the recommendations made to standardize the net cost of service Due to the impact this new methodology would have on some businesses, this new rate calculation must be delayed this tax period and introduced to put into effect in next years' budgetprocess. b. FAHR06-28 Recommend to the Board of Directors to consider Ordinance No. OCSD- 30A, 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-26: Minutes of the Special Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 19, 2006 Page 3 1). Motion to read Ordinance No. OCS0630 by title only and waive reading of said entire ordinance. 2). Motion to introduce Ordinance No. OCSD30, and pass to second reading and public hearing on May 24, 2006. Lorenzo Tyner introduced the proposed rate changes based on the approved CIP cost reductions, with a CIP reduction study review presented to all Board members by December of 2006. After much discussion, due to the time constraints of the passingof an ordinance and the tax bill preparation requirements, a motion was made to submit two rate structures be recommended to the Board of Directors for reading by title, and to pass to second reading and public hearing on May 24, 2006. MOTION: It was moved, seconded and duly carried torecommend to the Board of Directors to: A). ConsiderOrdinance No. OCSD-30A,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-26: 1). Motion to read Ordinance No. OCSD30A by title only and waive reading of said entire ordinance. 2). Motion to introduce Ordinance No. OCSD30A, and pass to second reading and public hearing on May 24, 2006. And, B). Consider Ordinance No. OCSD-30B, 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 Pennittees and Wastehaulers, and Repealing Ordinance No. OCSD-26: 1). Motion to read Ordinance No. OCSD30B by title only and waive reading of said entire ordinance. 2). Motion to introduce Ordinance No. OCSD30B, and pass to second reading and public hearing on May 24, 2006. (11) INFORMATIONAL PRESENTATIONS a. FAHR06-29 2006/07 and 2007/08 Budget Development Minutes of the Special Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 19, 2006 Page 4 Lorenzo Tyner, Dimctor of Finance, reported the status of budget process to the committee members and answered the Directors'questions. (12) CLOSED SESSION There was no closed session. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY a. Recommend to the Board of Directors to adopt Resolution No. OCSD 0609, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 04-16. Brad Hogin, General Counsel, briefly reviewed the proposed resolution designed to incorporate new requirements based on recently�passed Assembly Bill AB1234, keeping all Orange County Sanitation District's accounting practices transparent and in compliance with reporting requirements. The resolution was revised to limit Directors' pay to one payment per day and addresses payment for Alternate Directors. MOTION: It was moved, seconded and duly carried to recommend approval to the Board of Directors. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT A poll with several possible meeting dates was requested to be sent out for consideration by the FAHR committee members to review employee benefits. (15) CONSIDERATION OF UPCOMING MEETINGS The next FAHR Committee meeting is scheduled for May 10, 2006, at 5:00 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 7:40 p.m. Submitted by: 10 Glia ovac Committee Secretary MINUTES OF THE REGULAR JOINT MEETING OF THE FINANCE, ADMINISTRATION AND HUMAN RESOURCES COMMITTEE& STEERING COMMITTEE Orange County Sanitation District Wednesday, May 10, 2006, 5:00 p.m. A joint meeting of the Finance, Administration and Human Resowces Committee and the Steering Committee of the Orange County Sanitation District was held onMay 10, 2006, at 5:00 p.m,, in the Sanitation District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: FAHR COMMITTEE MEMBERS: STAFF PRESENT: DIRECTORS PRESENT: Jim Ruth, Interim General Manager Darryl Miller, Chair Lisa Tomko, Director of Human Resources Mike Duvall, Vice Chair Lorenzo Tyner, Director of Finance Bill Dalton Marc Dubois,Contracts & Purchasing Manager Bob Fauteux Jeff Reed, Human Resources Manager Jim Ferryman, Vice Board Chair Mike White, Controller Phil Luebben Rich Spencer, Human Resources Supervisor Joy Neugebauer Life Kovac, Committee Secretary James W. Silva Mark Waldman OTHERS PRESENT: Brad Hogin, General Counsel DIRECTORS ABSENT: Bret Colson Steve Anderson, Board Chair Tom Gaffney, Bartle Wells &Assoc. Don Hughes Norbert Gala Juanita Skillman (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Miller reported that he, Lorenzo Tyner and Mike White had met with Mr.Lockhart of Revenue Enhancement Company,who had approached the last committee meeting to address various issues. Chair Miller and Director Luebben metwith Mr. Shirish Patel of Lance, Sall & Lunghard, LLP, CPAs , the internal auditors, to provide direction for their auditing efforts Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page 2 (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. (6) REPORT OF DIRECTOR OF FINANCEITREASURER Director of Finance, Lorenzo Tyner,had no report (7) REPORT OF DIRECTOR OF HUMAN RESOURCE5PUBLIC INFORMATION OFFICE Lisa Tomko, Director of Human Resources, had no report. (8) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, had no report. (9) CONSENT CALENDAR ITEMS a. Approve minutes of the April 12, and April 19, 2006, Finance, Administration and Hunan Resources Committee meetings. b. FAHRO6-33 Receive and file Employment Status Report as ofApril 20, 2006. C. FAHRO6-34 Receive and file OSHA Incidence Rates and Workers' Compensation Claims and Costs Report. d. FAHR06-35 Recommend to the Board of Directors to receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies. e. FAHRO6-36 Recommend to the Board of Directors to receive and file the FY 2005-06 Quarterly Financial Management Reportfor the period ended March 31, 2006. f. FAHR06-37 Recommend to the Board of Directors to approve extension of the commercial lease with Nautical Enterprises, Inc., dba H & S Yacht Sales from the original expiration date of May 31, 2006, to the extended expiration date of December 31, 2007. g. FAHRO6-38 Recommend to the Board of Directors to approve Adopt Resolution No. OCSD 06-_, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 0609. Motion: It was moved, seconded and duly carried to approve the recommended action for the item specified as 9(a)through 9(g)under consent calendar. END OF CONSENT CALENDAR Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page 3 (10) ACTION ITEMS a. FAHRO6-39 Recommend to the Board of Directors to approve the Second Amerded and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System. Lisa Tomko, Director of Human Resources, presented theproposed amended and restated MOU agreement reAddilional Retiree Benefit Account. After a brief discussion, General Counsel Brad Hogin, suggested that due to the direction of discussion on the subject, that this subject would best be covered in closed session. Motion: It was moved, seconded and olily carved to move this item to the closed session for a conference with the District's labor negotiators on the subject of retiree medical benefits. General Counsel, Brad Hogin, announced that the Committee would convene in closed session pursuant to Government Code Section 54957.6 to meet with its labor negotiators Lisa Tomko, Jeff Reed, and Rich Spencer regarding retiree medical benefits. Mr. Hogin further announced that the discussion would cover benefits for employees represented by the Orange Count' Employees Association, the International Union of Operating Engineers, Local 501, and the Supervisory Professional Management Team. (11) INFORMATIONAL ITEMS a. FAHRO6-40 FY 2006/07 and 2007/08 Budget Development Lorenzo Tyner briefly presented the highlights and updates to the proposed budget scheduled to be proposed to the Board of Directors for adoption at the June 28, 2006 meeting. b. FAHRO6-41 Contracts Insurance Indemnification Marc Dubois, Contracts and Purchasing Manager,briefly reviewed the current requirements for all service providers to the Sanitation District as adopted based on recommendations by the insurance broker and General Counsel,that are now outdated. Directors requested a future reporton different"what if scenarios with the Sanitation District's current insurance requirements and possible exposures to update the requirements. C. FAHRO6-42 Rate Study Validation Lorenzo Tyner, Director of Finance, introduced Mr. Tom Gaffney of Bartle Wells, who was contracted to study the rate model. While Tom Gaffney recommended that the tax credit be eliminated, as most comparable agencies do not offer this structure a committee previously directed Staff to continue with the Sanitation District's rate structure This item will be reviewed again over the course of the year. Minutes of the Regular Joint meeting of the Finance, Administration and Human Resources Committee and Steering Committee Meeting April 12, 2006 Page 4 (12) CLOSED SESSION The Committee convened in Closed Session at 6:25 p.m. pursuant to Government Code Section 54957.6 to confer with designated representatives Lisa Tomko, Director of Human Resouces; Jeff Reed, Human Resources Manager; and Rich Spencer, Human Resources Supervisor, re ARBA negotiations for employees represented by 1).Orange County Employees Association; 2). International Union of Operating Engineers, Local 501, and 3). Supervisors, Professional Management Team (part of Peace Officers Council of California), Government Code Section 54957.6. Confidential Minutes of the Closed Session held by the Finance, Administration and Human Resources Committee have been prepared in accordancewith 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 No. 12(a). RECONVENE IN REGULAR SESSION: At 7:15 p.m., the Committee reconvened in regular session. The Committee approved the staff recommendation forthe Board of Directors to approve the Second Amended and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System. (13) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (14) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (15) CONSIDERATION OF UPCOMING MEETINGS The FAHR Committee Benefits Workshop is scheduled for Thursday, May 18, 2006 at 5:00 p.m.The next regular FAHR Committee meeting is scheduled for June 14, 2006, at 5:00 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 7:20 p.m. Submitted by: Ulia Kovac Committee Secretary H9GepeagendaTAHR%FAHR200M606W5.051006 FAHR MinutesAoc FAHR COMMITTEE MeetlngDafe To ad.ofDir. OS/SO/O6 OS/24/06 AGENDA REPORT Item Number Item Number FAHRO115 15(b) Orange County Sanitation District FROM: Marc Dubois, Contracts/Purchasing Manager SUBJECT: GENERAL MANAGER APPROVED PURCHASES GENERAL MANAGER'S RECOMMENDATION Receive and file report of General Manager approved purchases in amounts exceeding $50,000 in accordance with Board purchasing policies SUMMARY In May 1998, the FAHR Committee and the Board approved changes to the staff purchasing authority. One of the changes was to increase the dollar threshold before Board authority was required for purchases of goods or services, excluding public works purchases, to $100,000. When approving this change, the Committee asked for periodic reports showing purchases approved by the General Manager for amounts between $50,000 and $100,000. Subsequent to receiving the initial report, the Committee requested that future reports be placed on the Consent Calendar. Vendor Name Amount Department Description/Discussion Pack Ford $53,600 Regional Assets and Services Ford Escape Hybrid SUV Villa Ford $97,222 Regional Assets and Services Seven(7)Taurus SE Sedans Frost Company $90,000 Engineering Emergency equipment repairs. Carollo Engineering, Inc. $98,265 Finance User Fees and Capital facilities Capacity Charge Rate Stud Sole Source contract for Malcolm Firms, Inc. $85,108 Engineering Sushard Trunk Sewer Rehabilitation Mythics, Inc. $55,200 Information Technology Oracle database perpetual license Section 4.03.B of Resolution 04-08, the District's Delegation of Authority Resolution, authorizes the Contracts / Purchasing Manager to purchase items that have been previously authorized by the Board as identified in the annual District budget. During the budget adoption process, the lists of these items were highlighted for the Directors. For these reasons, purchases that fell into these categories are not included in this report. H WW(Wgmda�rd Recta RePms� Bm,d PgenEe d ABeMa RepwlaN5r8IM I S b)G104P WPoMhaws.EOc Ravum WIWO Page 1 PRIOR COMMITTEE/BOARD ACTIONS N/A 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) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS None. MD n WWtWWe�lftm R,SQ1 8 ra MwaaahBe^d RePn1eW5C6v1em1Hn1GM 4p� PurC m Pay aswmn Page 2 FAHR COMMITTEE f4eetlngDate To Bd.ofDir. 05/10/06 05/24/06 AGENDA REPORT Item Number Item Number FAHR06-36 15(a) Orange County Sanitation District FROM: Michael D. White, Controller SUBJECT: QUARTERLY FINANCIAL MANAGEMENT REPORT FOR THE PERIOD ENDED MARCH 31, 2005 GENERAL MANAGER'S RECOMMENDATION Receive and file the FY 2005-06 Quarterly Financial Report for the period ended March 31, 2006. SUMMARY Attached in a separately bound document is the Quarterly Financial Report for the period ended March 31, 2006, for the District's financials, investments, interest rate exchange agreement (Swap), operations monitoring and Certificates of Participation. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES N/A N Yhp1\epeneaama rpwda Fepons2oo5 ea.,e rgenea arpem.Rep.l.'OS�IXem 1WPO f.ona.l aepan.eoc R.. .8 Page 1 CEQA FINDINGS N/A ATTACHMENTS Attached in a separately bound document is the Quarterly Financial Report covering the period ended March 31, 2006 for the District's financials, investments, interest rate exchange agreement (Swap), operations monitoring and Certificates of Participation. Na.Nae.^mme,a naenaz ReF�:Voos eoo,a AOenGa s u9.,m A+w�,wsam.m 1'� Wo vmrvwi Rwu Gcc a....o e¢orea Page 2 FAHR COMMITTEE M7 ngDate To ad.of Di 05/10/06 05,24,06 AGENDA REPORT Item Number 1tan Nunba FMR05-37 15(d) Orange County Sanitation District FROM: Mike White, Controller SUBJECT: EXTENSION OF COMMERCIAL LEASE ON THE FUTURE SITE OF THE ROCKY POINT PUMP STATION GENERAL MANAGER'S RECOMMENDATION Approve extension of the commercial lease with Nautical Enterprises, Inc., dba H & S Yacht Sales from the original expiration date of May 31, 2006, to the extended expiration date of December 31, 2007. SUMMARY The District purchased three (3) adjacent parcels along Coast Highway in Newport Beach from International Bay Clubs (IBC) on September 1, 2004, for the purpose of constructing the new Rocky Point Pump Station. As part of the Purchase Agreement, the District assumed the leases of two tenants currently occupying portions of the property. The southernmost parcel is occupied by Nautical Enterprises, Inc. dba H & S Yacht Sales (H & S). Since construction of the new pump station was not scheduled to begin until approximately June 2006, the District continued leasing out the premises to the existing tenants. Due to the short-term nature of these leases, the Board continued these leases with monthly payments remaining the same as was negotiated by the previous landlord. On September 1, 2004, the Sanitation District entered into a lease agreement with H &S leasing this southernmost parcel at a monthly lease amount of$5,000 through May 31, 2006. At this time, H&S has requested a least extension to December 31, 2007. The Engineering Department now estimates that construction for the new pump station is tentatively scheduled to begin in September 2008, but it is possible construction may begin earlier in the calendar year. PRIOR COMMITTEE/BOARD ACTIONS On August 25, 2004, the Board approved the purchase of this approximate one-acre parcel in the City of Newport Beach from International Bay Clubs, Inc. for Replacement of Rocky Point Pump Station. H We0V0>"W'EmGRAeMa flgMa3D'Y.,2W,0 FpsMa 8 Pgstle flpb1Y0503Nan 15it1 XeJbl EM PC3Y N IfB.trx flmxG OSd.O] Page 1 On October 27, 2004, the Board approved a lease agreement with H & S 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 Sanitation District for the new Rocky Point Pump Station. PROJECT/CONTRACT COST SUMMARY The approval of this recommendation will continue to generate $5,000 in monthly lease income for an additional 19 months at no additional out-of-pocket cost to the District. 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) ATTACHMENTS None. H WePnagand.Ocatd Agenda daga I' ..-nd Agenda&Agenda RepYleNSWWem 15(E)Naenatal Ent Ratky%Lae La He"geed . .103 Page 2 FAHR COMMITTEE " ""OBDate T0B C. 01) . OS/30/06 05/29/ 6 AGENDA REPORT 10an Number Hein Number FAHR06-38 15(el Orange County Sanitation District FROM: Bradley R. Hogin, General Counsel SUBJECT: Revisions to Directors' Expense Reimbursement Policy GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 06-11, Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation; and Repealing Resolution No. OCSD 06-09. SUMMARY In order to clarify language contained in Resolution No. OCSD 06-09 that was adopted by the Board of Directors on April 26, 2006, a new resolution will need to be adopted. This new resolution clarifies language under Sections 16 and 17, to be consistent with the current Ordinance No. OCSD-14 and Ordinance No. OCSD-23. PRIOR COMMITTEE/BOARD ACTIONS Resolution No. OCSD 06-09 adopted April 26, 2006. 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. x Not applicable (information item) ADDITIONAL INFORMATION N/A ALTERNATIVES N/A M.NMpe„y'BavE W^M^flWus10.H BmrE ApsMe 8 RW,W RgvlfLL`�Nem 13(e).Maus E¢enw.hx fl«ly,. "uame Page 1 CEQA FINDINGS N/A ATTACHMENTS 1. Proposed Resolution No. OCSD 06-10 N`bplNanla`HovCfgenYe RepvliVWG�wd rkpMe6Apny ReygIeWX6Nmm IN.)D.—E.¢ .. Ra,.,, UIN9IC6 Page 2 RESOLUTION NO. OCSD O6-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A POLICY REGARDING BOARD OF DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT,AND MEETING ATTENDANCE AND COMPENSATION,AND REPEALING RESOLUTION NO. OCSD 06-09 WHEREAS,the District, by previously adopted Ordinance Nos. OCSD-14 and OCSD-23, has established Board of Directors' compensation for meeting attendance; and, WHEREAS, the Board of Directors desires to revise the policy previously adopted pursuant to Resolution No. 06-09 to comply with all of the requirements in the above-described new statutes. NOW, THEREFORE,the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and meeting attendance and Compensation, set forth on Exhibit"A", attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 06-09 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Attachment"A" shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting held May 24, 2006. Chair ATTEST: Board Secretary 1 0 EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING DIRECTORS' BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION Article I. Business and Travel Expense Reimbursement It is the District's policy to reimburse Board Members for authorized business and travel expenses in accordance with the procedures of this Policy. This Reimbursement Plan is intended to be an "accountable plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. The District, through the Chair of the Board, will authorize attendance at conferences, seminars, meetings and travel, but such expenses related thereto will only be approved to the extent they are necessary to further the accomplishment of District goals and objectives. This Policy applies to all regular and alternate District Board Members authorized to represent the District in business or travel activities. At all times, District representatives serve the public and must do so within the ethical and business performance standards expected of a public agency. Prudent judgment and full compliance with District policies is required. Failure to use discretion in the incurring of business expenses may result in the loss of discretionary travel privileges. Sufficient funds must be included in the current Fiscal Year's operating or capital improvement budgets for all business and travel expenses to be paid or reimbursed under this Policy. Noncompliance with the Policy or falsification of reports or documentary evidence may result in corrective action, including criminal prosecution. Section 1_ Authorized Expenses. A. The following types of occurrences qualify Board Members to receive reimbursement for expenses incurred in the performance of official duties relating to travel, meals, lodging, and other actual and necessary expenses that constitute authorized expenses, provide the requirements of this policy are met: i. Communicating with representatives of regional, state and national government on issues or matters affecting the District or on District- adopted policy or political positions; 2 H. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; iii. Participating in regional, state and national organizations whose activities affect the District's interests; iv. Attending District events; V. Implementing a District-approved strategy for District- related activities/ business; and vi. Meetings such as those listed above for which compensation is expressly authorized under this policy. B. Unless otherwise specifically provided for herein, reimbursement for travel, meals, lodging, and other actual and necessary business expenses shall be at the rates presently in effect as established in Internal Revenue Service Publication 463 or any successor publication. Expenses not covered by this policy, or expenses in excess of the reimbursable rates set forth in this policy, are not reimbursable unless approved by the District Board of Directors in a public meeting before the expense is incurred. Section 2: Terms and Definitions. A. "Accountable Plan"shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. Expenses must have a business connection. Expenses must be adequately documented and include evidence such as receipts, canceled checks, invoices, or credit card statements to support the expenses, and must be submitted within sixty (60) days after they were paid or incurred. Any excess reimbursement must be returned within sixty (60) days. B. "Approval by the Board"shall mean Board of Directors approval at a regularly-scheduled Board Meeting with a quorum present and acting. C. "Alternate Board Member"shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. When the Board Member is absent, the Alternate Board Member becomes the Board Member, and everything in this Policy applies. The Alternate Board Member and the Board Member cannot both be compensated for the same event without prior approval by the Board Chair. 3 D. "Board Chair"shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. E. "Board Member"shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. F. "Committee Member"shall mean any Member of the Board of Directors, appointed to a Standing or Ad Hoc Committee, established by an action of the Board or Board Chair. G. "Days Service Rendered"shall mean attendance as described in Article ll, Section 13, below. H. "Director"shall mean a Member of the District's Board of Directors. I. 'Incidentals"shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. K. "Travel Expenses"shall mean transportation, lodging, meals, and incidentals expenses associated with attending a seminar, conference, or meeting requiring an overnight stay. L. "Travel Liaison"shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair can approve or deny requests for travel or business activities and reimbursements for Board and Committee Members, B. The General Manager shall be familiar with and comply with this Policy, ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. 4 C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all unreconciled expenses regarding travel matters. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimburseable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. Section 4: Travel Liaison. The Travel Liaison shall arrange all travel, lodging, accommodations, and seminar/conference registrations for the Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case-by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. Section 5: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 6: Seminars. Conferences. and Meetings. A. Attendance at seminars, conferences, and meetings must be approved in advance by the Board Chair, except when specifically pre-authorized by this Policy. B. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry, and may be asked to, or may desire to, give presentations or otherwise represent the District at such events. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the full Board of Directors. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to submit a request to act as District Representative to the Board, the Board Chair has the authority to approve such a request in advance; this approval would then be subsequently submitted for ratification at the next regularly scheduled Board meeting. C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an Officer of the Association. 5 D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Free, local seminars must also be authorized in advance in order to be considered for approval of Director compensation. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States will not be approved except by vote of the District's Board of Directors' Steering Committee. Section 7: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. 6 G Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffer-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally- owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section 8: Air Transportation. A. Air transportation must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air transportation should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum atemative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 9: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. No lodging within sixty (60) miles of the District's Administrative Offices or the Director's residence, whichever is less, will be reimbursed. 7 , Section 10: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. Meals for Directors' guests will be reimbursed only if they have a legitimate business relationship with the District. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts indicated below. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $15.00 Lunch $20.00 Dinner $25.00 Snacks $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $70 per travel day under the Receipt Method. Receipts must be a detailed receipt from the restaurant for actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. iii. Meals provided to a spouse or guest. iv. Alcoholic beverages consumed by a Director or others. 8 Section 11: Extended Travel and/or Travel with Family Members. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days will be considered the same as a day's service rendered; provided, approval is obtained from the Board Chair in advance. Section 12: Requests for Reimbursement. A. Requests for reimbursement shall be submitted to the District Controller not later than sixty (60) days after payment by the individual and shall be submitted on forms provided by the District. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair . All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to in-room movies, service bar, etc. will not be reimbursed. B. All expense reports shall include detailed receipts (except for meals to be paid pursuant to Section 9.6. above) and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. Section 13: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. Article ll. Meeting Attendance and Compensation Section 12: Directors shall be paid a stipend as compensation, at the rate determined by the Board of Directors, and adopted by Ordinance No. OCSD-14 as amended, for attendance at Meetings, as defined below, and for each Day's Service Rendered as a Member of the Board. "Maximum Meetings Allowed Per Month" shall mean for the Board Chair, ten (10) meetings, or ten (10) days' service rendered per month; for all other Directors, six (6) meetings or six (6) days' service rendered per month. 9 "Meetings"shall mean all regularly convened Board of Directors Meetings, Standing Committee Meetings, Ad Hoc Committee Meetings, and other Meetings called by the Board Chair. Also included are speck industry conferences and business meetings of a recurring nature, such as the California Association of Sanitation Agencies and the Association of Metropolitan Sewerage Agencies, designated by the Board Chair. Meetings not sanctioned by the Board Chair are not considered business of the District. Section 13: Directors shall receive a stipend as compensation, without further action or authorization of the Chair or the Board of Directors for attendance at the following: Board of Directors meetings; Standing Committee and Ad Hoc Committee meetings, of which the Director is a duly appointed member; meetings, conferences and committee meetings of CASA and AMSA; meetings of other governmental agencies, at which the District has an official delegate. Section 14: Each Day's Service Rendered as a Member of the District's Board of Directors, shall be deemed to include, but not be limited to: A. Attendance at any Meeting of a Committee of which the Director is not a member, when expressly invited to attend said Committee Meeting by the Chair of the Board of Directors. B. Attendance at conferences with State and/or Federal Legislators regarding District business, when approved by action of the Board of Directors. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by action of the Board of Directors, or when designated by the General Manager, with the concurrence of the Chair, in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events. iii. Meetings with other elected officials or their employees, which do not include District Staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the 10 interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. V. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or Association of Metropolitan Sewerage Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. viii. Ethics training required by Government Code sections 53234 — 53235.5. Section 15: Non Compensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. B. Nonprofit organization events. C. District-sponsored employee events, including but not limited to the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Board. E. Service club meetings other than those included in Section 14(C)(i) above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. Section 16: No Director shall receive compensation for attendance at more than one meeting on any one calendar day. Section 17, No Alternate Director shall receive compensation for attendance at any meeting unless serving in the absence of the regular, Active Director, unless the Board Chair invites the Alternate Director to attend the meeting and approves payment of compensation. 11 The Policy was duly adopted, by action of the Board of Directors, on 2006 and shall be effective upon its adoption. 12 FAHR COMMITTEE MMIng Date Toatl.of DIr. 05/10/06 D5/I4/D6 AGENDA REPORT Item Numbe Item Number FAHR06-39 15fn Orange County Sanitation District FROM: Lisa L. Tomko, Director of Human Resources Originator: Paul Loehr, Human Resources Supervisor SUBJECT: AMENDED AGREEMENT FOR THE ADDITIONAL RETIREE BENEFIT ACCOUNT (ARBA) GENERAL MANAGER'S RECOMMENDATION Approve the Second Amended and Restated Memorandum of Understanding Agreement re: Additional Retiree Benefit Account with the Orange County Employees Retirement System. SUMMARY The purpose of this report is to obtain approval to amend the ARBA agreement, which addresses depleting ARBA benefit funds, and to provide a timeline for addressing intermediate and long term issues with retiree medical benefits. Upon Board approval in 2002, OCSD implemented an amended and restated ARBA agreement with OCERS. This agreement replaced the original ARBA agreement and established a Retiree Medical Benefit Reserve (RMBR) account that would safeguard three (3) years of projected ARBA payments if the ARBA funds were exhausted, and provide a one time buffer to address future funding. Since that time, OCERS investments have no longer produced the excess funds previously used to fund the ARBA benefit, thereby requiring OCSD to self-fund the program once the existing monies are depleted in September 2006. Immediately amending the current agreement would accomplish the following: • Remove a shortfall provision that requires OCSD to pay one-half percent of payroll to fund pension statutory reserve requirements. This will allow OCSD to reallocate those funds to pay future ARBA benefits. • Amend the termination date of December 2007 to December 2006 with the option of renewal through 2007. (OCERS does not intend to continue administering the ARBA benefit beyond December 2007 unless an alternative plan solution is developed and approved by the OCERS Board. OCERS will review ideas for future administration at their Board meeting on May 15, 2006.) The modified termination date will provide OCSD with sufficient time to make a decision as to the future funding and administration of the ARBA benefit and H WeppegendalBm,E Agenda Repo,15 QM5aa,4 Agenda Agenda flep00HW5WWeT 15(1)ARBA Agneemenl am Page 1 will allow OCSD the flexibility of changing the administration of ARBA benefits in the near future. In the meantime, staff has initiated an independent actuarial study to identify future retiree medical benefit funding obligations and compliance requirements. The actuarial study will provide valuable information in developing a funding strategy to outline future retiree medical benefit costs, investment options, compliance issues, available administrative mechanisms, and foreseeable changes to retiree medical benefits. Staff will provide further updates to the FAHR Committee and will seek direction from the committee. The meeting dates and topics of discussion are anticipated to be as follows: • June 2006 FAHR Committee meeting: Update on the May OCERS Board meeting and an outline of OCSD's actuarial study results. • July 2006 FAHR Committee meeting: Detailed information on available options for intermediate and long-term issues with retiree medical benefits. • Early fall 2006 FAHR Committee meetings: Meet and Confer discussions on all benefits, including ARBA. PRIOR COMMITTEE/BOARD ACTIONS • April 2006: An informational item addressing ARBA was presented to the FAHR Committee. • December 2002: The Board of Directors approved an amended and restated ARBA agreement that established a Retiree Medical Benefit Reserve (RMBR). PROJECT/CONTRACT COST SUMMARY After the RMBR account depletes in September 2006, OCSD will self-fund ARBA benefits at an approximate cost of$17,000/month or $204,000/year. In accordance with the current agreement, OCSD is currently paying one-half percent of payroll each pay period. This amount is approximately $266,420 annually. If the ARBA agreement is amended to remove this shortfall provision, OCSD will stop paying the one-half percent of payroll requirement and instead, will directly fund the ARBA benefit costs of approximately $204,000 annually. This will result in an approximate net savings of over $50,000 per year. BUDGETIMPACT ® This item has been budgeted. (Line item: 50580) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) H-1 PngmdaB dbende Re SSOWB M AO•Ma B ft M&RepNaWS[ HSM 1H1)ARM Pgrw tticc Page e 'd ADDITIONAL INFORMATION Backaround Information OCSD provides two different retiree medical benefits: The Retiree Paid Medical Premium Plan and the Additional Retiree Benefit Account(ARBA). The Retiree Paid Medical Premium Plan provides employees hired prior to July 1, 1988 with 2.5 months of fully paid medical premiums for each year of continuous service if they retire. OCSD administers this benefit and the costs are paid directly to insurance carriers. When this benefit is exhausted, the retiree begins receiving ARBA benefits. Employees hired after July 1, 1988 are not eligible for this benefit. ARBA benefits are a retiree medical premium offset plan. Retirees who have a vested right in this benefit are provided with $10 per month for every year of service up to a maximum of 25 years or$250 per month to offset the costs associated with health insurance premiums. Unlike the retiree paid medical premium plan, ARBA benefits are sent directly to the retiree in the retirement benefits payment from OCERS. As such, ARBA benefits are taxable to the retiree. Current Issues The RMBR account that funds ARBA benefits is expected to be depleted by September 2006. The RMBR account was established in December 2002 and was funded using excess earnings from OCERS investments. Until September 2006, ARBA benefits will have been funded entirely by excess earnings from OCERS pension investments. Due to poor market conditions, there are no excess earnings to replenish depleting ARBA benefit funds. Since OCSD has a legal obligation to continue funding retiree medical benefits to those retirees and employees who have a vested right in the benefit, OCSD must begin self-funding this benefit. The existing ARBA agreement contains two provisions, sections 10 and 11, which address account shortfalls. Section 10— RMBR Account: Shortfalls in ARBA If there are monetary shortfalls to pay ARBA benefits and sufficient excess earnings exist in the Unallocated Fund Balance (UFB) to replenish the RMBR account to the designated "safety level", a transfer of funds is made from the UFB into the RMBR account. Effect: Although this provision is in place to avoid OCSD from self-funding the ARBA benefit, there has been no transfer of funds into the RMBR account since the current ARBA agreement was ratified in December 2002 because there have been insufficient excess earnings in the UFB. H:WaW.MgandaaBadd Agenda Re NST005 Bm,O AgenaS Agenda RapedsW506Warn 15(RARM Ag,ummnt da Page Section 11 —Shortfalls in Net Unallocated Fund Balance • If there are shortfalls in the UFB to pay statutory reserve requirements, OCSD is required to pay an amount necessary to restore the UFB, up to one-half percent of payroll. Effect: Due to a shortfall in the UFB account, OCSD is currently paying the one-half percent of payroll each pay period. This amount is approximately $266,420 annually or just over $10,200 per pay period. If the agreement is amended to remove this shortfall provision, OCSD will stop paying the one- half percent of payroll requirement and will reallocate those funds to offset ARBA benefit costs of approximately $204,000 annually. This will result in an approximate net savings of over$50,000 per year. Finally, the current ARBA agreement has a termination date of December 31, 2007 and an option to terminate the agreement at the end of any preceding calendar year with 60 days written notice in advance of the end of that year. In fad, other agencies' ARBA agreements with OCERS expire on December 31, 2007, as well. Although OCERS has indicated that it does not intend to continue the RMBR account past the 2007 termination date, it is reviewing ideas to continue administering ARBA benefits through employer contributions. A tentative plan, which will be discussed at the next OCERS Board meeting on May 15, 2006 is to implement a stand-alone account that would earn an investment rate of return that would not be affected by any aspect of pension fund administration. If this type of plan is implemented, OCERS has indicated that they will charge an administrative fee and will not administer any variation of the benefit if retiree medical benefits change in the future. For example, if OCSD transitions from a defined benefit plan to a defined contribution plan, such as Health Saving Accounts (HSA), OCERS would not administer that benefit. Immediate Action The immediate objective is to amend the ARBA agreement with OCERS to remove the UFB shortfall requirement, modify the termination date to December 31, 2006, with the option to renew through 2007, and provide a provision that will ensure reimbursement of any funds available at the termination date of the agreement. This action will immediately stop payments to OCERS, per the current ARBA agreement, that are not funding ARBA benefits. Moreover, the modified termination date provides OCSD with sufficient time to make a decision as to the future funding and administration of the ARBA benefit and will allow OCSD the flexibility of changing the administration of ARBA benefits in the intermediate future. In addition, OCSD will need to transfer funds into the RMBR account for the period of September to December 2006. It is recommended that OCSD initialize this process with advance reserves equal to one- month worth of ARBA payments and continue each month until the period is funded. Once a decision is made as to the future administration of the ARBA benefit and a funding strategy has been developed, appropriate funding actions would then occur. wweo`eaMmm eromm•mw•zm .� .b.w nw•,.emsnm Page 1 OCSD has initiated an independent actuarial study to determine retiree medical benefit funding obligations and compliance requirements in the future. The actuarial study will evaluate both OCSD retiree medical benefits (Retiree Paid Medical Premium Plan and ARBA) and is expected to be completed by the end of May 2006. There are currently 104 retirees receiving ARBA benefits with another 37 retirees receiving fully paid medical benefits who will eventually receive ARBA benefits. In addition, staff is estimating that another 30 employees will retire in fiscal year 2006- 2007. There are also 128 employees hired prior to July 1, 1988 who will receive Retiree Paid Medical Premium Plan benefits when they retire. The average retiree will receive retiree medical benefits for 20 years. It is important that OCSD fully understands this unfunded liability obligation in order to adequately fund these benefits and understand the resources needed to administer them. Once the amended agreement is implemented, options for intermediate and long term administration of ARBA benefits will be refined by OCSD staff and presented to the FAHR Committee for consideration and direction. Items of discussion will include future costs and investment options, compliance issues and available administrative mechanisms, and foreseeable changes to retiree medical benefits. Future Issues In considering the future funding of retiree medical benefits, OCSD will work to develop a funding strategy that will reduce costs over the long term and will help secure benefits expected by retirees and employees. In addition, the funding strategy should identify a low risk investment plan, consistent with OCSD's Board approved investment policy, to ensure a market rate of return on the funds being used for retiree medical benefits. In considering the future administration of retiree medical benefits, there are three administrative options to evaluate: OCERS, OCSD (in-house administration), or through a third party administrator. There are some key issues to consider in reviewing the future administration of the ARBA benefit, such as: • First, if OCSD is going to self-fund the ARBA benefit, it must consider an administrative option that will provide an investment rate of return on expenditures. • Second, the Governmental Accounting Standards Board (GASB) has issued statement 45 (GASB 45), requiring public agencies to report their costs and obligations pertaining to health and other benefits of current and future retired employees. This reporting requirement is similar to pension plan obligation reporting (GASB 27) and becomes effective in fiscal year 2007-2008. • Finally, the future administration of the ARBA benefit should have a level of flexibility and adaptability considering any foreseeable future changes to retiree medical benefits. w eanaw��aua�am�,uoos eoua aammaro.�.n.w.,wwem.m�annr�ennw»,,,.,nes Pages v A plan of action to address these future issues is under development and will be presented at upcoming FAHR Committee meetings. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS (1) Current ARBA Agreement (2) Proposed Amended ARBA Agreement H WagtwgaaEalBCNtl AgvMa ft�dS MB rlpanda A ftm aRogmBMMS It—15(f).AR&lpgT—M.hc Page 6 W AMENDED AND RESTATED AGREEMENT RE: ADDITIONAL RETIREE BENEFIT ACCOUNT This Amended and Restated Agreement re Additional Retiree Benefit Account ("Agreement")dated December 16,2002 is entered into as of the Effective Date,as defined herein, by and between Orange County Sanitation District,a public agency of the State of California Sanitation District, and the Orange County Employees Retirement System,a public retirement system organized and existing pursuant to the provisions of the County Employees Retirement Law of 1937, as amended("OCERS"or the"retirement system'). Sanitation District and OCERS are sometimes referred to herein individually as"Party"and collectively as"Parties." RECITALS A. OCERS provides and administers a program of retirement benefits for the employees and retirees of the County of Orange("County")and certain other public agencies located within the County that participate in OCERS,including Sanitation District,pursuant to Government Code Sections 31450, et seq.("CERL")and other applicable law. B. Sanitation District and OCERS are parties to an ARBA Agreement,dated October 5, 1995,concerning the funding of a supplemental benefit program for retired employees of the Sanitation District who are members of OCERS,and their eligible beneficiaries (the Sanitation District ARBA.4greement")and other matters. C. The County and OCERS have entered into an Amended and Restated Memorandum of Understanding Agreement re:Additional Retiree Benefit Account, dated August 27,2002("County ARBA Agreement'j, a true and correct copy of which is attached hereto as Exhibit A for reference. D. Sanitation District and OCERS wish to amend and restate the Sanitation District ARBA Agreement,to be consistent with the County ARBA Agreement,and to accomplish other objectives of the parties,as more particularly set forth herein. AGREEMENT NOW,THEREFORE, for good and valuable consideration,the existence and sufficiency of which the Parties hereby acknowledge, IT IS HEREBY AGREED AS FOLLOWS: 1. Recitals. The foregoing RECITALS are true and correct and are incorporated herein by this reference. 2. Amendment and Restatement of the ARBA Agreement. The Parties hereby agree to amend and restate the Sanitation District ARBA Agreement in this Agreement. This Agreement is intended to and shall supercede the Sanitation District ARBA Agreement in its entirety. Upon this Agreement becoming effective,the Sanitation District ARBA Agreement shall be null and void and of no further force or effect. IDM63191662. -I- W c 3. Intent of this A reg ement. The intent of this Agreement is (a)to use a portion of Sanitation District Advance Reserves (as defined herein),as authorized by Section 31592.2 of CERL,to provide a source of funding to help defray the cost to the Sanitation District of providing supplemental benefit grants to its retired employees who are members of OCERS and their eligible survivors, and for reasonable expenses of administration of the benefit program,while minimizing employer contributions to the retirement system; and(b)to make the Sanitation District ARBA Agreement consistent with the County ARBA Agreement. 4. Definitions. The following terms shall have the following definitions in this Agreement. "Additional Retiree Benefit Account" or"ARBA"is a portion of the Unallocated Fund Balance(as defined herein)originally established by the ARBA Agreement, as defined in the County ARBA Agreement,comprised of the Members' Share of Transferable Funds(as defined herein) designated to help defray the cost to the County and other.districts, including Sanitation District,of providing supplemental and other benefit grants to their retired employees who are members of OCERS and their eligible survivors, and for reasonable expenses of the employers' administration of their benefit grant program. "Employer Advance Reserves"is the reserve account in the retirement fund comprised of(a)the contributions made into the fund from time to time by the County and other employers,net of benefit payments,(b)the Employers' Share of Transferable Funds (as defined herein), (c)the County and Employer RMBR Accounts(as defined herein),and(d) accumulated investment earnings on all of the foregoing. "Employer Advance Reserves"has the same meaning as the"County Advance Reserves"as defined in the County ARBA Agreement. "Sanitation District Members' Share of ARBA"is that portion of ARBA held for the benefit of retired employees of the Sanitation District who are members of OCERS and their eligible survivors. "Effective Date" shall have the meaning set forth in Paragraph 14 of this Agreement. "Investment Account"shall have the same meaning as set forth in the County ARBA Agreement. "Net Applicable Assets"is the total book value of assets of the retirement system less the Unallocated Fund Balance(as defined herein), true payables (as determined from time to time by OCERS' actuary), the Investment Account, the AREA, and reserves established by the Board of OCERS. "Net Unallocated Fund Balance"or"Net UFB"is the Unallocated Fund Balance(as defined herein) less amounts in the ARBA and other reserves, including the UFB Reserve I,as defined herein),designated by the Board of OCERS. 10990:63181662 -2- • "County and District RMBR Accounts"are those portions of the Employer Advance Reserves maintained exclusively for the purpose of providing a source of funding to help defray the cost to the County,the Sanitation District and other employers participating in OCERS of providing health and supplemental benefit grants to their retired employees who are members of OCERS and their eligible survivors, and for reasonable expenses of the County, and other districts' administration of their benefit grant programs. The Sanitation District's portion of the County and Employer RMBR Accounts shall be referred to herein as the "Sanitation District RMBR Account." "Unallocated Fund Balance"or"UFB"is the fund created by earnings of the retirement fund during any yew in excess of(a) the total interest credited to contributions and reserves during such year,pursuant to Sections 31592 and 31592.2 of CERL, and(b)amounts determined by OCERS for deficiencies in interest earnings in other years,losses on investments and other contingencies, as provided in Sections 31592 and 31592.2. "Valuation Date"shall be the 31"day of December each year for which OCERS'actuary prepares an annual valuation for purposes of establishing employer and employee contributions into the retirement fund, for the fiscal year commencing on the next following July 1. 5. Initial RMBR Transfer.As of the Effective Date,OCERS shall establish and maintain a Sanitation District RMBR Account as a sub-account of the Employer Advance Reserves,and shall transfer on its books the sum of$593,000 from the ARBA to the Sanitation District RMBR Account. This sum is the amount determined by OCERS' actuary to represent three(3)years' projected costs of the portion of Sanitation District grants to be funded pursuant to this Agreement,under the Sanitation District's program of providing supplemental benefit grants to retired employees of the Sanitation District who are members of OCERS and their eligible survivors,plus reasonable expenses of the administration of the supplemental benefit program. The funds in the Sanitation District RMBR Account shall be used exclusively for the purposes and in the manner set forth in Paragraph 10,below. 6. UFB Reserve. OCERS has established a policy of maintaining a reserve against deficiencies in interest earnings in other years, losses on investments and other contingencies,as provided in Sections 31592 and 31592.2,of five percent(50/u)of the Net Applicable Assets(the"UFB Reserve"). The Parties acknowledge that the Board of OCERS may change the percentage level of the UFB Reserve from time to time, and that in the event the level of UFB Reserve changes,the change shall have no effect on the other provisions of this Agreement. 10990:6318165.2 -3- 7. Transfers to Employer Advance Reserves and ARBA. a. As of the Valuation Date each year,OCERS shall determine,upon the advice of its actuary; if there is available Net UFB in excess of funds to be transferred into the Sanitation District RMBR Account as required under Paragraph 10b., below. Such available funds shall be known as the"Transferable Funds." The Transferable Funds shall be divided in the manner set forth in Paragraph 7b.,below, resulting in the Sanitation District's Share of Transferable Funds and the Sanitation District Members' Share of Transferable Funds. OCERS shall transfer on its books the Sanitation District's Share of Transferable Funds to Employer Advance Reserves. OCERS shall transfer on its books the Sanitation District Members' Share of Transferable Funds to the Sanitation District Members' Share of ARBA. b. The Sanitation District's Share of Transferable Funds shall be determined in the following manner: (1) First,by multiplying the Transferable Funds by a fraction,the numerator of which is the amount of all employer contributions to OCERS during the ten (10)calendar years immediately preceding the Valuation Date, and the denominator of which is the total of all employer and employee contributions to OCERS made during the same period. The result shall be known as the"Employers' Share of Transferable Funds." The balance of Transferable Funds shall be known as the "Members' Share of Transferable Funds." (2) Second,by multiplying the Employers' Share of Transferable Funds by a fraction, the numerator of which is the amount of all employer contributions to OCERS made by the Sanitation District during the ten(10) calendar years immediately preceding the Valuation Date,and the denominator of which is the total employer contributions to OCERS made by the County,the Sanitation District and other participating districts during the same period. The result shall be the"Sanitation District's Share of Transferable Funds"and shall be distributed as set forth in Paragraph 7a,above. c. The Sanitation District Members' Share of Transferable Funds shall be determined by multiplying the Members' Share of Transferable Funds by a fraction,the numerator of which is the amount of all employee contributions to OCERS made by Sanitation District's employees during the ten (10) calendar years immediately preceding the Valuation Date, and the denominator of which is the total employee contributions to OCERS by the employees of the County,the Sanitation District and other participating districts during the same period. The result shall be the"Sanitation District Members' Share of Transferable Funds"and shall be transferred on OCERS' books as set forth in Paragraph 7a., above. d. The remaining,untransferred balances of the Employers' Share of Transferable Funds and the Members' Share of Transferable Funds shall be held in separate sub. accounts of UFB, for the purpose of funding health and supplemental benefit programs administered by other districts participating in OCERS, pursuant to separate agreements to be entered into by and between such districts and OCERS. 10990:6318165 2 -4- 8. Transfers from ARBA for Retiree Supplemental Benefits. For each fiscal year in which the Sanitation District provides a program of supplemental benefits to retired employees of the Sanitation District who are members of OCERS and their eligible survivors, OCERS shall transfer on its books from ARBA into Employer Advance Reserves an amount, subject to availability,sufficient to pay for the portion of the supplemental benefit grants to be funded pursuant to this Agreement which the Sanitation District provides to retired employees of the Sanitation District who are members of OCERS and their eligible survivors,and for reasonable expenses of the administration of the supplemental benefit program during that fiscal year. 9. Interest Crediting on Accounts. OCERS shall credit interest on ARBA at the assumed rate of interest as established by OCERS from time to time,currently eight percent (8°/o)per annum;provided, however, that such interest is available for crediting from Net UFB. OCERS shall not credit interest on the Sanitation District RMBR Account. 10. Sanitation District RMBR Account: Shortfalls in ARBA. a. The Sanitation District RMBR Account shall be used by OCERS exclusively as a reserve against a deficiency in the Sanitation District Members' Share of ARBA. To the extent that in any fiscal year, the Sanitation District Members'Share of ARBA is insufficient or unavailable to provide the full amount required to be transferred to Employer Advance Reserves pursuant to paragraph 8,above(an"ARBA Shortfall"), OCERS shall transfer on its books an amount equivalent to the ARBA Shortfall from the Sanitation District RMBR Account to Employer Advance Reserves for the exclusive purpose as set forth in paragraph 8 above. b. As of each Valuation Date,on the advice of its actuary, OCERS shall maintain a balance in the Sanitation District RMBR Account not less than an amount determined by OCERS' actuary to represent three(3)ensuing fiscal years'worth of projected costs of the portion of the supplemental benefit grants provided by the Sanitation District to be funded pursuant to this Agreement,plus reasonable expenses of administration of the supplemental benefit program during those fiscal years(the"Safety Level.") In the event that the balance of the Sanitation District RMBR Account at any time is less than the Safety Level,OCERS shall transfer out of first available Net UFB sufficient funds to return the Sanitation District RMBR Account to the Safety Level. This transfer shall occur prior to the transfers referred to in Paragraph 7, above. 11. Shortfalls in Net Unallocated Fund Balance. As of June 30 and December 31 of any fiscal year,if OCERS' eamings are insufficient to credit the assumed rate of interest to �J all statutory reserves,such deficiency shall be made up at that time by transferring funds out of the UFB. If such transfer results in a Net UFB of less than three percent(3%)of Net Applicable Assets,then all employer contributions to OCERS shall be increased during the immediately following fiscal year by an amount which is the lesser of(a)the amount necessary to restore the Net UFB to three percent(3%)of Net Applicable Assets or(b)an amount equal to one-half of one percent(1/2%)of employer payroll subject to retirement contributions. 10990:6318165.2 -5- 12, Further Actions. Each Party shall take all actions and do all things, and execute,with acknowledgment or affidavit if required,any and all documents and writings,that reasonably may be necessary or proper to achieve the purposes and objectives of this Agreement and the transactions contemplated hereby. 13. Termination Date; Renewal. a. The term of this Agreement shall be through and including December 31, 2007,the second anniversary of the tri-annual actuarial valuation of the retirement system performed by the system's actuary as of December 31,2001;provided,however,that this agreement may be terminated sooner than December 31,2007 if either the governing body of the Sanitation District or the Board of Retirement of OCERS deternnes,in the sole and exclusive exercise of its duties,that it does not wish this Agreement to remain in force beyond the end of the calendar year in which such determination is made. In the event of such determination,the determining body or Board shall give the other not less than 60 days written notice ipadvance of the end of that calendar year of its desire for earlier termination,and this Agreement shall thereafter terminate effective at midnight on December 31 of that year. b. Following the effective date of termination, (i)all funds remaining in the Sanitation District RM 3R Account shall remain in that account,without further credit for interest,and shall be used for the purposes and in the manner provided for under Paragraph 10 of this Agreement after termination of this Agreement for so long as they are available; (ii)all funds remaining in the Sanitation District Members' Share of ARBA shall be deemed to be Net UFB and there shall no longer be any funds designated as Sanitation District Members' Share of ARBA; and (iii)OCERS shall have no further obligation to transfer on its books any funds pursuant to this Agreement. c. Notwithstanding the foregoing subparagraph (a),the Parties may mutually agree to extend the term of this Agreement in such interval(s)and upon such terms as they may later agree upon in a writing executed prior to the termination of this Agreement. 14. Effective Date. This Agreement shall be effective as of the date on which all Parties have signed this Agreement. 15. Entire Agreement. This Agreement represents the Parties' entire agreement and constitutes the only existing and binding agreement between them with respect to the matters stated herein. This Agreement supersedes any and all prior agreements, representations,promises and understandings of any kind,whether oral or written,express or implied,between the Parties regarding the subject matters of this Agreement. Nothing herein is intended to nor shall affect any parry's rights and obligations under CERL. In entering into this Agreement,each Party disclaims any reliance upon any representation, fact or opinion that is not otherwise set forth in writing in this Agreement. Each Party hereby waives any rules of interpretation or construction contained in California Civil Code§ 1654. 10990'63181651 -6- 15. Entire Agreement. This Agreement represents the Parties' entire agreement and constitutes the only existing and binding agreement between them with respect to the matters stated herein. This Agreement supersedes any and all prior agreements, representations, promises and understandings of any kind, whether oral or written, express or implied, between the Parties regarding the subject matters of this Agreement. Nothing herein is intended to nor shall affect any party's rights and obligations under CERL. In entering into this Agreement, each Party disclaims any reliance upon any representation, fact or opinion that is not otherwise set forth in writing in this Agreement. Each Party hereby waives any rules of interpretation or construction contained in California Civil Code § 1654. 16. Survival. The terms and conditions of Paragraphs 6, 10.b., 11, 14, 15 and 17 of this Agreement shall survive its termination. 17. Modification. This Agreement may not be modified, altered, amended or otherwise changed in any respect except by a writing duly executed and signed by each Party. 18. Authority to Execute Agreement Each Party represents and warrants that the person executing this Agreement on its behalf as indicated below has full power and authority to do so. Dated: 411ti.ae , 2002 Dated: :i ' a 2002 ORANGE COUNTY SANITATION BOARD OF RETIREMENT OF THE DISTRICT ORANGE COUNTY EMPLOYEES RETIREMENT ISYSTE`A J By: Hi'livGesf l .i r J By: Chair, Board of Directors hair�Board ofof Retmen� B� 'AC4 n l Secretarf,Poard of� edors APPROVED AS TO FORM: APPROVED AS TO FORM: Dated: z)Lu,w L L 2002 Dated: 2003 THOMAS L. WOODRUFF ORANGE COU TY EMPLOYEES DISTRIPT COUNSEL RETIREMENT SYSTEM By; It9f/ uc' By: _ ' t Thomas L. Woodruff #Oe E. Wyne General Counsel 19eneral Counsel 7 0 SECOND AMENDED AND RESTATED MEMORANDUM OF UNDERSTANDING AGREEMENT RE: ADDITIONAL RETIREE BENEFIT ACCOUNT This Second Amended and Restated Memorandum of Understanding Agreement re Additional Retiree Benefit Account("Agreement")dated , is entered into as of the Effective Date,as defined herein,by and between the Orange County Sanitation District, a public agency of the State of California ("OCSD"),and the Orange County Employees Retirement System,a public retirement system organized and existing pursuant to the provisions of the County Employees Retirement Law of 1937,as amended ("OCERS"or the"retirement system"). OCSD and OCERS are sometimes referred to herein individually as"Party"and collectively as"Parties." RECITALS A. OCERS provides and administers a program of retirement benefits for the employees and retirees of the County of Orange("COUNTY")and certain other public agencies that participate in OCERS, including OCSD,pursuant to Government Code Sections 31450,et seq. ("CERL") and other applicable law. B. OCSD and OCERS are parties to an Amended and Restated Memorandum of Understanding Agreement re Additional Retiree Benefit Account,dated December 16,2002, concerning the funding of a supplemental benefit program for retired employees of the OCSD who are members of OCERS,and their eligible beneficiaries,and other matters(the"2002 OCSD ARBA Agreement"). C. OCSD and OCERS wish to amend and restate the 2002 OCSD ARBA Agreement as provided for in this Agreement. AGREEMENT NOW,THEREFORE,for good and valuable consideration,the existence and sufficiency of which the Parties hereby acknowledge, IT IS HEREBY AGREED AS FOLLOWS: 1. Recitals. The foregoing RECITALS are true and correct and are incorporated herein by this reference. 2. Amendment and Restatement of the ARBA Agreement. The Parties hereby agree to amend and restate the 2002 OCSD ARBA Agreement in this Agreement. This Agreement is intended to and shall supercede the 2002 OCSD ARBA Agreement in its entirety. Upon this Agreement becoming effective,the 2002 OCSD ARBA Agreement shall be null and void and of no further force or effect. -I- 0 3. Intent of this Agreement. The intent of this Agreement is to use a portion of Employer Advance Reserves(as defined herein), as authorized by Section 31592.2 of CERL, to provide a source of funding to help defray the cost to the OCSD of providing supplemental benefit grants to its retired employees who are members of OCERS and their eligible survivors, and for reasonable expenses of the OCSD's administration of the supplemental benefit program, while minimizing employer contributions to the retirement system. 4. Definitions. The following terms shall have the following definitions in this Agreement. "Additional Retiree Benefit Account"or"ARBA" is a portion of the Unallocated Fund Balance(as defined herein)originally established by the ARBA Agreement, comprised of the Members' Share of Transferable Funds(as defined herein)designated to help defray the cost to the COUNTY and other districts, including OCSD,of providing health or supplemental benefit grants to their retired employees who are members of OCERS and their eligible survivors,and for reasonable expenses of the employer's administration of its health or supplemental benefit grant program. "Employer Advance Reserves"is the reserve account in the retirement fund comprised of(a)the contributions made into the fund from time to time by the COUNTY and other districts, including OCSD, net of benefit payments,(b)the Employers' Share of Transferable Fonds (as defined herein),(c)the RMBR Account(as defined herein),and (d) accumulated investment earnings on all of the foregoing. "OCSD Members' Share of ARBA"is that portion of ARBA held for the benefit of retired employees of the OCSD who are members of OCERS and their eligible survivors. "Effective Date"shall be the latter of the dates on which the duly authorized signatories for the OCSD and OCERS have executed this Agreement. "Investment Account"shall have the meaning established by the Investment Account Agreement,as defined in the Master Settlement Agreement between the COUNTY and OCERS dated August 27, 2002. "Net Applicable Assets"is the total book value of assets of the retirement system less the Unallocated Fund Balance(as defined herein),true payables(as determined from time to time by OCERS' actuary),the Investment Account,the ARBA,and reserves established by the Board of OCERS. "Net Unallocated Fund Balance"or"Net UFB"is the Unallocated Fund Balance(as defined herein) less amounts in the ARBA and other reserves, including the UFB Reserve(as defined herein), designated by the Board of OCERS. "RMBR Account" is a portion of the Employer Advance Reserves established by this Agreement and maintained exclusively for the purpose of providing a source -2- a of funding to help defray the cost to the COUNTY and other districts, including OCSD of providing health or supplemental benefit grants to its retired employees who are members of OCERS and their eligible survivors,and for reasonable expenses of the COUNTY,and other districts' administration of their health or supplemental benefit grant program. "Unallocated Fund Balance"or"UFB"is the fund created by earnings of the retirement fund during any year in excess of(a)the total interest credited to contributions and reserves during such year,pursuant to Sections 31592 and 31592.2 of CERL, and(b)amounts determined by OCERS for deficiencies in interest earnings in other years, losses on investments and other contingencies,as provided in Sections 31592 and 31592.2. "Valuation Date"shall be the 31"day of December each year for which OCERS' actuary prepares an annual valuation for purposes of establishing employer and employee contributions into the retirement fund, for the fiscal year commencing on the next following July 1. 5. Initial RMBR Transfer. Pursuant to the 2002 OCSD ARBA Agreement, OCERS established and now maintains an RMBR Account as a sub-account of the Employer Advance Reserves. The funds in this account were originally intended to represent the amount determined by OCERS' actuary to be three(3)years' projected costs of the portion of grants to be funded pursuant to this Agreement, under the OCSD's program of providing supplemental benefit grants to retired employees of the OCSD who are members of OCERS and their eligible survivors,plus reasonable expenses of the OCSD's administration of the supplemental benefit program. The funds in the RMBR Account shall be used exclusively for the purposes and in the manner set forth in Paragraph 10, below. 6. UFB Reserve. OCERS has established a policy of maintaining a reserve against deficiencies in interest earnings in other years, losses on investments and other contingencies, as provided in Sections 31592 and 31592.2, of five percent(5%)of the Net Applicable Assets(the"UFB Reserve"). The Parties acknowledge that the Board of OCERS may change the percentage level of the UFB Reserve from time to time, and that in the event the level of UFB Reserve changes,the change shall have no effect on the other provisions of this Agreement. 7. Transfers to Emplover Advance Reserves and ARBA. a. As of the Valuation Date each year, OCERS shall determine,upon the advice of its actuary,if there is available Net UFB in excess of funds to be transferred into the OCSD RMBR Account as required under Paragraph 10b., below. Such available funds shall be known as the"Transferable Funds." The Transferable Funds shall be divided in the manner set forth in Paragraph 7b.,below,resulting in the OCSD's Share of Transferable Funds and the OCSD Members' Share of Transferable Funds. OCERS shall transfer on its books the OCSD's Share of Transferable Funds to Employer Advance Reserves. OCERS shall transfer on its books the OCSD Members' Share of Transferable Funds to the OCSD Members' Share of ARBA. -3- 0 b. The OCSD's Share of Transferable Funds shall be determined in the following manner: (1) First, by multiplying the Transferable Funds by a fraction,the numerator of which is the amount of all employer contributions to OCERS during the ten (10)calendar years immediately preceding the Valuation Date,and the denominator of which is the total of all employer and employee contributions to OCERS made during the same period. The result shall be known as the"Employers' Share of Transferable Funds." The balance of Transferable Funds shall be known as the"Members' Share of Transferable Funds." (2) Second,by multiplying the Employers' Share of Transferable Funds by a fraction,the numerator of which is the amount of all employer contributions to OCERS made by the OCSD during the ten(10)calendar years immediately preceding the Valuation Date, and the denominator of which is the total employer contributions to OCERS made by the COUNTY and other participating districts, including OCSD,during the same period. The result shall be the"OCSD's Share of Transferable Fonds"and shall be distributed as set forth in Paragraph 7a.,above. c. The OCSD Members' Share of Transferable Funds shall be determined by multiplying the Members' Share of Transferable Funds by a fraction,the numerator of which is the amount of all employee contributions to OCERS made by OCSD employees during the ten (10)calendar years immediately preceding the Valuation Date,and the denominator of which is the total employee contributions to OCERS by the employees of the COUNTY and other participating districts,including OCSD,during the same period. The result shall be the"OCSD Members' Share of Transferable Funds"and shall be transferred on OCERS' books as set forth in Paragraph 7a.,above. d. The remaining,untransferred balances of the Employers' Share of Transferable Funds and the Members' Share of Transferable Funds shall be held in separate sub- accounts of UFB, for the purpose of funding health and other benefit programs administered by other districts participating in OCERS,pursuant to separate agreements to be entered into by and between such districts and OCERS. 8. Transfers from ARBA for Retiree Supplemental Benefits. For each fiscal year in which the OCSD provides a program of supplemental benefits to retired employees of the OCSD who are members of OCERS and their eligible survivors, OCERS shall transfer on its books from ARBA into Employer Advance Reserves an amount,subject to availability, sufficient to pay for the portion of the supplemental benefit grants to be funded pursuant to this Agreement which the OCSD provides to retired employees of the OCSD who are members of OCERS and their eligible survivors,and for reasonable expenses of the OCSD's administration of the supplemental benefit program during that fiscal year. 9. Interest Crediting on Accounts. OCERS shall credit interest on ARBA at the assumed rate of interest as established by OCERS from time to time, currently seven and -4- a a three quarters percent(7.75%)per annum;provided, however,that such interest is available for crediting from Net UFB. OCERS shall not credit interest on the OCSD RMBR Account. 10. OCSD RMBR Account Shortfalls in ARBA. a. The OCSD RMBR Account shall be used by OCERS exclusively as a reserve against a deficiency in the OCSD ARBA. To the extent that in any fiscal year,the OCSD ARBA is insufficient or unavailable to provide the full amount required to be transferred to Employer Advance Reserves pursuant to paragraph 8, above (an "ARBA Shortfall"), OCERS shall transfer on its books an amount equivalent to the ARBA Shortfall from the OCSD RMBR Account to Employer Advance Reserves for the exclusive purpose as set forth in paragraph 8 above. b. As of each Valuation Date, on the advice of its actuary,OCERS shall maintain a balance in the OCSD RMBR Account not less than an amount determined by OCERS' actuary to represent funds sufficient for the portion of the supplement benefit grants provided by OCSD to be funded pursuant to this Agreement,through the termination date of this agreement, (the"Safety Level"). In the event that the balance of the OCSD RMBR Account at any Valuation Date is less than the Safety Level,then OCSD contributions to OCERS shall be increased by an amount necessary to restore the OCSD RMBR Account to the Safety Level. The increased contributions shall be credited to the OCSD RMBR Account. 11. Shortfalls in Net Unallocated Fund Balance. As of June 30 and December 31 of any fiscal year, if OCERS' earnings are insufficient to credit the assumed rate of interest to all statutory reserves, such deficiency shall be made up at that time by transferring funds out of the UFB. 12. Amortization of Liabilities. OCSD acknowledges that OCERS has the authority under law to establish amortization periods for the funding of liabilities of the retirement system,and those amortization periods may differ depending upon the types of liabilities created from time to time. 13. Further Actions. Each Party shall take all actions and do all things,and execute,with acknowledgment or affidavit if required,any and all documents and writings that reasonably may be necessary or proper to achieve the purposes and objectives of this Agreement and the transactions contemplated hereby. 14. Termination Date: Renewal. a. The term of this Agreement shall be through and including December 31, 2006, except as follows: b. OCSD shall be granted one optional extension of the termination date of this Agreement up through and including December 31, 2007,by providing written notice in advance of December 31,2006 of its desire to extend the termination date. Should this extension be exercised,this agreement may be terminated sooner than December 31, 2007 if either the -5- 0 Governing Body of the OCSD or the Board of Retirement of OCERS determines,in the sole and exclusive exercise of its duties,that it does not wish this Agreement to remain in force. In the event of such determination,the determining Board or Body shall give the other Board or Body not less than 60 days written notice in advance of the requested termination date. c. Following the effective date of termination,no further interest will be credited to the funds in the OCSD Members' Share of ARBA and all funds remaining in the OCSD RMBR Account shall be credited against future OCSD contributions toward other retirement benefits or returned to OCSD. d. Notwithstanding the foregoing subparagraph (a)and(b),the Parties may mutually agree to extend the term of this Agreement in such interval(s) and upon such terms as they may later agree upon in a writing executed prior to the termination of this Agreement. 15. Entire Agreement. This Agreement represents the Parties' entire agreement and constitutes the only existing and binding agreement between them with respect to the matters stated herein. This Agreement supersedes any and all prior agreements, representations,promises and understandings of any kind,whether oral or written, express or implied,between the Parties regarding the subject matters of this Agreement. Nothing herein is intended to nor shall affect any parry's rights and obligations under CERL. In entering into this Agreement,each Party disclaims any reliance upon any representation, fact or opinion that is not otherwise set forth in writing in this Agreement. Each Party hereby waives any rules of interpretation or construction contained in California Civil Code§ 1654. 16. Survival. The terms and conditions of Paragraphs 6, 10.b., 11, 12, 14.c., 15, 16 and 18 of this Agreement shall survive its termination. 17. Modification. This Agreement may not be modified,altered,amended or otherwise changed in any respect except by a writing duly executed and signed by each Party. 18. Authority to Execute Agreement. Each Party represents and warrants that the person executing this Agreement on its behalf as indicated below has full power and authority to do so. (GOVERNING BODY OF DISTRICT) BOARD OF RETIREMENT OF THE ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM By: By: Chair, Board of Directors Chair, Board of Retirement Dated: ,2006 Dated: , 2006 -6- APPROVED AS TO FORM: APPROVED AS TO FORM: (COUNSEL FOR DISTRICT) ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM By: By: Julie E. Wyue Attomeys for the Dated: ,2006 Dated: ,2006 -7- i FAHR COMMITTEE Meeting Date To Bd.of Dir. 05/10/06 05/24/06 ? AGENDA REPORT F�Numbb2 Item suorniter Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/treasurer Originator: Mike White, Controller SUBJECT: INDEPENDENT RATE STUDY GENERAL MANAGER'S RECOMMENDATION Receive and file Independent Rate Study dated May 2006 prepared by Bartle Wells Associates. SUMMARY At a February 2006 Finance, Administration and Human Resources (FAHR) Committee Meeting, staff presented introductory information regarding the District's Rate model in anticipation of the draft findings of independent consultant(Bartle Wells Associates) engaged by the District. Subsequently, Bartle Wells Associates provided the Board with a draft report. The highlights of that report can be found in the attached previously submitted agenda report. Staff has conducted two public meetings to provide other organizations and companies an opportunity to give input on the study. This input has been forwarded to Bartle Wells for inclusion in their final report (attached). The final report will be submitted to the full Board on May 24, 2006, for consideration. PRIOR COMMITTEEIBOARD ACTIONS None. PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This Rem has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION The significant findings of the final report include: Alternative Rate Structures Bartle Wells concluded that the District's current system of rates and charges is well within the standards of public wastewater agency practice. They do not believe that any major changes are warranted, and are not recommending any major changes to the rate structure because of the disruptions these changes could cause to various user classes. However, the District may wish to consider the following two alternatives for addressing the property tax credit issue: H.'dpysMa'aonE FBwaa PepMis]0.'6 Boca PpnNaa PpeW Rera�.NS[aNm 151a1 Pe.SwvvWamm Ooc BMetl a„w,re Page 1 I l Continue current rates:The District could continue with its current rate structure. This r includes higher Permit User unit charges combined with property tax credits. Other user classes do not receive an actual property tax credit, but pay lower unit charges. Eliminate property tax credits: The District could eliminate the current system for Permit Users and establish uniform unit charges that are net of property tax revenues. The same unit charges would then apply to all users. Permit Users would no longer receive a credit for property taxes. Other Recommendations • The District should coordinate future rate increases so that to the extent possible rate adjustments are made simultaneously to all user classes. Following is a summary of the timing of the rate adjustment to Permit and other users: June 2004 —District increased all service charge rates by 15% effective July 1, 2004. July 2004 —District identified problem with double credit for Permit User property tax. Aug. 2004 —Non-Permit user rates submitted to County Tax Collector for collection. Sept. 2004 —Proposed rate increase to Permit Users for both property tax and new CIP. Jan. 2005 —Approved rate increase to Permit Users to adjust for property tax credit and an average 9.2% increase due to validation of the new CIP. July 2005 —An average 6.6% increase to Permit Users, 31% rate increase to other users. The District's January 2005 rate adjustment to Permit Users not only included a component for the property tax correction, but also included an increase to reflect the new CIP. The District didn't adjust the rates for other user classes because these are included with the property tax bill and can't be adjusted until the following fiscal year. The result was that Permit Users faced a rate increase six months earlier than other user classes. On the one hand, the rates were justified by the increase in the CIP. But on the other hand, this one group was the only one to receive the increase for six months. However, this inequity was more than compensated for six months later when rates for other user classes were increased 31% and Permit User rates were increased an average of 6.6%. (Note: This inequity continues to grow as rates for all users is proposed to increase a flat 14.25 percent or 9.8 percent increase as of July 2006). • The District may want to re-examine the CIP allocation of full secondary treatment to see if some portion of these costs might equitably be allocated to flow. • The District needs to update its CFCC with each update in the CIP. Ideally, these would be at the same rate of change and would automatically apply. An alternative method would be to establish an annual adjustment to the CFCC that is based on the change in the ENR Construction Cost Index for Los Angeles. In addition, the projection of future growth has been lowered. The District should factor the lower growth projection into determination of the CFCC. If implemented, these recommendations would have no impact on service charge unit rates. • If the CFCC is reviewed or updated, the District should consider a supplemental 'buy-in' component of the capacity fee as at present the capacity fees only ask new customers to buy into new facilities required to serve them. They are, however, served by existing facilities for which they have not contributed. The District is not required to charge new H.Weplepmda�Bmdaosna.RepM.W[C8 Bpva A,.,.alg.I ftpp MWW_1, 1)ft.swdy V...b .E a.�,.d. o,roame Page 2 connections the maximum cost of providing capacity, but they are permitted to do so by law. If the charge is reviewed, the District may want to examine the allocation of costs between residential and commercial that derives a lower fee for commercial users. The District could derive an average cost of capacity that would be used to calculate fees for all customer classes in the same way. Non-residential customers appear to receive a break under the current methodology. • We suggest that the current SCFCC be confirmed by Carollo Engineers during the current rate and charge review. We would also recommend that industries should have the option of purchasing needed capacity in excess of the 25,000 gpd currently permitted by the Districts grandfather clause. If additional capacity is purchased, then the user would not be subject to an additional SCFCC charge. This option may be preferable for some industries wishing to fund more capacity on a one-time basis rather than pay a supplemental annual fee. • Debt service allocation is annually adjusted by the weighted average of the CIP allocation. This can cause abrupt changes in allocations for this cost category. The District could adopt a capital allocation for a five or ten-year period to eliminate abrupt shifts. More importantly, this method does not accurately reflect the proper allocation of debt actually used. ALTERNATIVES N/A CEQA FINDINGS N/A ATTACHMENTS 1. March 2006 FAHR Agenda Report 2. Orange County Sanitation District Review of Rates and Charges- Final Report from Bartle Wells Associates. M.Vec'W�a'Bosa AW'm RepW1LCG eoa:a Remm aPoeMe RewuUw ,—INR)R SlW vsaatien eoc Page 3 FAHR COMMITTEE Meeting Date To ad.ofDir. 03/01/06 AGENDA REPORT Item Number Item Number FAHR06-13 Orange County Sanitation District FROM: Lorenzo Tyner, Director of FinancefFreasurer SUBJECT: DRAFT INDEPENDENT RATE STUDY GENERAL MANAGER'S RECOMMENDATION Informational item. SUMMARY At a February 2006 Finance, Administration and Human Resources (FAHR) Committee Meeting, staff presented introductory information regarding the District's Rate model. The information was provided in anticipation of the draft findings of independent consultant Bartle Wells Associates, engaged by the District. The draft report has been distributed to all Board members and has been made available to the public for review. The major elements of the review included: 1) Review the fees and charges levied by OCSD and make recommendations regarding the fees and charges based on applicable legal and regulatory standards. 2) Review the appropriate allocation of costs for operating, maintaining refurbishing, and replacing facilities to serve existing users and the costs of expanding facilities to serve future users. 3) Review that the allocation and amount of costs of providing service is adequately based on appropriate costs of service principals and applicable legal standards. 4) Review that the allocation of costs, including non-assignable costs, between flow, bio-chemical demand (BOD), and suspended solids (SS) is appropriate. 1) Review that the costs of providing full secondary treatment and the groundwater replenishment system are appropriate and allocated equitably. The following is an excerpt of the Bartle Wells study summarizing their findings: H..,IkOcn..d F0-.Ra 1.OwuOPOenGa6FBorNn POIM aNSWU!am151011NIuS,utlYVOltlnlurMId- Ravisea. OIIMNG Page 1 "Findings and Recommendations Alternative Rate Structures As discussed previously, and based on our review, we find that the District's current system of rates and charges is well within the standards of public wastewater agency practice. We do not believe that any major changes are warranted. Therefore, we would not recommend any major changes to the rate structure because of the disruptions these changes could cause to various user classes. However, the District may wish to consider the following two a@ematives for addressing the property tax credit issue: Continue current rates: The District could continue with its current rate structure. This includes higher Permit User unit charges combined with property tax credits. Other user classes do not receive an actual property tax credit, but pay lower unit charges. Eliminate property tax credits: The District could eliminate the current system for Permit Users and establish uniform unit charges that are net of property tax revenues. The same unit charges would then apply to all users. Permit Users would no longer receive a credit for property taxes. Other Recommendations • The District may want to re-examine the CIP allocation of full secondary treatment to see if some portion of these costs might equitably be allocated to flow. • The District needs to update its CFCC with each update in the CIP. Ideally, these would be at the same rate of change and would automatically apply. An alternative method would be to establish an annual adjustment to the CFCC that is based on the change in the ENR Construction Cost Index for Los Angeles. In addition, the projection of future growth has been lowered. The District should factor the lower growth projection into determination of the CFCC. If implemented, these recommendations would have no impact on service charge unit rates. • If the CFCC is reviewed or updated, the District should consider a supplemental 'buy-in'component of the capacity fee as at present the capacity fees only ask new customers to buy into new facilities required to serve them. They are however served by existing facilities for which they not have contributed. The District is not required to charge new connections the maximum cost of providing capacity but they are permitted to do so by law. If the charge is reviewed, the District may want to examine the allocation of costs between residential and commercial that derives a lower fee for commercial users. The District could derive an average cost of capacity that would be used to calculate fees for all customer classes in the same way. Non-residential customers appear to receive a break under the current methodology. R:NgKpttMaVkpEPpm R• SIII oce MPo^A ,eo Rgwlsl2•fBVan t5�91.ANe AuOy vsmw,dniex R . °'�ft Page 2 • We suggest that the current SCFCC be confirmed by Carollo Engineers during their upcoming rate and charge review. We would also recommend that industries should have the option of purchasing needed capacity in excess of the 25,000 gpd currently permitted by the District's grandfather clause. If additional capacity is purchased, then the user would not be subject to an additional SCFCC charge. This option may be preferable for some industries wishing to fund more capacity on a one-time basis rather than pay a supplemental annual fee. • Debt service allocation is annually adjusted by the weighted average of the CIP allocation. This can cause abrupt changes in allocations for this cost category. The District could adopt a capital allocation for a five or ten-year period to eliminate abrupt shifts. More importantly, this method does not accurately reflect the proper allocation of debt actually used." Next Steps --^ -- There will be a minimum 60 day review period where public comment will be accepted. These comments, and those of staff, will be forwarded to Bartle Wells for incorporation into their final report. The final report is due to the Board May 1, 2006 and will be discussed at the May 24, 2006 Board meeting. PRIOR COMMITTEEIBOARD 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 None. ALTERNATIVES N/A N u"pWmmm.e pmb nroueVrcs Ba.a Ma.,m a Apeim awaumsosv:o,,,,sls�.nno s, e+vaario-.a„ez �, u,roms Page 3 CEQA FINDINGS N/A ATTACHMENTS 1. Orange County Sanitation District Review of Rates and Charges - Draft Report M.WaplWJeneaBarEPpvgo RepaneV0p8 Bm,N nporW a Rpmec aepo-te45muiem 1HBI +ue 9wy VYiEmbWl t ea "°"w° oimama Page 4 ORANGE COUNTY SANITATION DISTRICT REVIEW OF RATES AND CHARGES FINAL REPORT May 2006 BARTLE WELLS ASASOCIATES Independent Public Finance Advisors 1889 Alcatraz Avenue Berkeley CA 94703 Tel. 510-653-3399 TABLE OF CONTENTS Scope........................................................................................................................i Bartle Wells Associates..........................................................................................I Approach..................................................................................................................2 Current Rate and Charge System..........„...„.„_„„„. 14 General.....................................................................................................................3 ServiceCharges.......................................................................................................3 Capital Facilities Capacity Charges(CFCCs)and SCFCCs....................................4 CostAllocation........................................................................................................6 PropertyTax Revenues............................................................................................6 Findings and Recommendations.„„..„......„„„.... --_a AlternativeRate Structures......................................................................................8 Other Recommendations..............................................„.......................................... 8 Appendix A—Validated Capital improvement Program Appendix B—Permit User Rates: OCSD Staff Report Appendix C—Ordinance 01 (partial)and Ordinance 26 Appendix D—Bartle Wells Associates Scope and Resumes Appendix E— Settlement Agreement INTRODUCTION Bartle Wells Associates has been retained by Orange County Sanitation District(District or OCSD)to prepare an independent review of the District's rates and charges and to make recommendations for adjustments, if any,as appropriate. Our review is intended to satisfy the requirements of a Settlement Agreement between the District and a major wastewater user regarding changes to the method of setting and collecting revenues for users. Scope The settlement agreement outlines the scope of the review required: • Review the fees and charges levied by OCSD and make recommendations regarding the fees and charges based on applicable legal and regulatory standards. • Review the appropriate allocation of costs for operating, maintaining, refurbishing,and replacing facilities to serve existing users and the costs of expanding facilities to serve future users. • Review that the allocation and amount of costs of providing service is adequately based on appropriate cost of service principals and applicable legal standards. • Review that the allocation of costs, including non-assignable costs, between flow, biochemical demand (BOD),and suspended solids(SS)is appropriate. • Review that the costs of providing full secondary treatment and the groundwater replenishment system are appropriate and allocated equitably. This report is not intended as a rate study, but rather as a review of the appropriateness and equity of the current rate structure. We are also not reviewing the level of operating budgets or the costs of the capital improvement program. The determination of these costs is by District staff and consultants and is approved by the District's Board of Directors. Bartle Wells Associates' scope of work is included in our proposal in Appendix D. Our review is based on documents and records supplied by the District. Our review does not include any further research to determine the accuracy of the material supplied to us. For reference purposes we have included a number of documents, including sections of Ordinance 01 and all of 26,as Appendix C to this report. We prepared a Draft Report in February 2006 and attended a public meeting at the District to receive both written and oral comments. This Final Report incorporates our response to the comments received. Bartle Wells Associates Bartle Wells Associates is an independent public finance advisor formed in 1964 expressly to provide independent advice to public agencies without conflict of interest of any kind. The firm is owned and managed by its principal consultants and has advised over 450 public agency clients in the western United States and completed over 2,000 financing assignments. Bartle Wells Associates specializes in three professional services- utility rate studies, financing plans,and bond marketing. Rate studies are designed to maintain the financial health of a utility enterprise and provide equity to all customers. BWA has completed hundreds of utility rate studies. The firm is very familiar with the requirements that Proposition 218 and the State Water Resources Control Board's Revenue Program Guidelines place on service charges. The firm is also very familiar with the requirements that Government Code 66000 ff place on the determination of impact fees for new growth. Thomas Gaffney,a principal of the firm,is managing this project Tom is a registered California civil engineer and a nationally Certified Independent Public Finance Advisor. Sophia Skoda,PE,senior consultant and Bryan Antman,senior financial analyst are assisting Tom on this project. Both Sophia and Bryan are also nationally Certified Public Finance Advisors. Resumes are enclosed in Appendix D. Approach We have used the following approach to satisfy the requirements of the Settlement Agreement: • Review the allocation of capital improvement costs between current users and future users. This allocation is used to determine the revenues needed from each class to support capital projects. • Review the allocation of operation and maintenance costs among the parameters of flow,BOD,and SS. Determine the impact to service charges for high, low, and domestic strength users. • Examine property tax collections in relation to service charges. Determine if a property tax credit system is equitable and should continue for Permit Users. Relate the District's property tax credit plan to mainstream public agency practice. • Make recommendations as appropriate to establish or preserve equity and provide sufficient funding for wastewater services. 2 CURRENT RATE AND CHARGE SYSTEM General The vast majority of wastewater agencies collect revenues from several sources. A service charge proportional to flow and strength is collected from all users. Revenues from the charge are used to pay for operation and maintenance, replacements,and capital improvements to serve existing users. Capacity charges are a one-time charge levied as a new user connects to the wastewater system. These charges should represent the cost of facilities required to serve the new user,and revenues from the charge may only be used to pay such costs. Capacity charge revenues may directly fund project design and construction,may pay a share of annual debt service,and/or may reimburse a previous capital expense funded by current users. Many wastewater agencies receive a share of the one-percent property tax levied by the county. Revenues from property taxes are generally not restricted to any certain use. Most agencies use all or some of property tax revenues as a credit against expenses and then determine the level of service charge to fund the balance of expenses. Other revenues include permits and fees such as plan checking, interest comings on general reserves,and funds from rents and use of property. Usually,all such revenues are credited against operating expenses and then the net revenue requirement is used to determine the level of required service charge. Service Charges The District's service charges are fundamentally based on a determination of the revenue requirement to fund District activities on behalf of existing users. The current rate structure identifies five component costs that must be funded each year from revenues generated from existing users: • Operations and maintenance of the collection system • Operations and maintenance of the treatment plants • Capital Improvement Program(CIP)for the collection system (replacement and upgrade projects only) • CIP for the treatment plants(replacement and upgrade projects only) • Debt service on Certificates of Participation (COPS)(replacement and upgrade projects only) Adjustments are made to the collection system and treatment plant CIP line items to deduct projects allocable to new growth;these costs are recovered through the District's Capital Facilities Capacity Charges(CFCC)charged to new connections. The CtP line 3 items are also adjusted downward to exclude debt-financed projects,which are accounted for separately under the debt service expense,to avoid double counting. Gross costs of the District's activities are offset by non-service charge related revenues. These revenues include interest income($21 million in FY 2004/05)and other revenues. Most notably, revenues used to offset cost of service include contributions from reserves ($185 million)and property taxes collected from customers($28 million; fiscal year 2004/05's property tax revenues were adversely affected by temporary state-mandated ERAF transfers). Each of the five component costs of wastewater service is allocated among the three components of wastewater: flow,biological oxygen demand(BOD),and suspended solids(SS). This allocation is made based on a detailed review of how each wastewater component contributes to the O&M or capital cost of District activities. Consistent with standard industry practice,non-assignable costs that cannot be directly assigned to flow, BOD,or SS(such as administrative costs)are allocated on a weighted average basis among the three cost centers. The resultant allocations generate unit rates per unit of flow, BOD,and SS, which can then be used to calculate user rates. Table 1 below shows total system loadings used in unit cost derivations for fiscal year 2004/05. Single family dwelling system loadings are also shown. Table 1 ■ OCSD 2004106 System Loadings Total System Average Residence Flow 91,250 MG 253 gpd BOD 173,514 Ibs 206 mgn SS 177,014 Ilia 219 mg/1 Unit rates per unit of flow, BOD,and SS are applied to standard flow and loading factors developed for most customers. The District maintains a listing of standard flow and loading factors for various categories of customer, including single-and multi-family residences and commercial customers, creating a wastewater service rate for each customer category. For users with unusually high flows and/or strength of wastewater, known as"Permit Users",service charges are calculated individually based on measured wastewater flows and strengths. There are approximately 425 Permit Users but only about 335 receive the property tax credit. Impact of Pretreatment: To the extent possible,the District requires certain users to provide pretreatment at the users' expense to reduce the level of pollutants reaching 4 District facilities. Pretreatment offers several major advantages including: reducing the treatment requirements at the plant,reducing the level of oil and grease in the collection system,and reducing the District's costs. Pretreatment also reduces the user's bill from the District. To the extent that a users' pretreatment program can eliminate the most easily removable impurities,the program may more than pay for itself. If pretreatment is expensive for the level of pollutant reduction, then this program may be more costly for the users. Pretreatment also reduces the peaks in flow and especially loadings to the plant. Domestic users discharge relatively predictable flows and loadings, while industrial and other major users without a pretreatment program may discharge high peak loadings. There is still considerable swings in plant flows and loadings. BWA reviewed 2004/05 permit user flow data. We found a great variation in flow from month to month for many large users. Variability of 40% in flow volumes was common. This variation is greater than or about the same as that for residential and small commercial users. Cost of Service: The State of California Water Resources Control Board's (SWRCB) Revenue Program Guidelines for wastewater agencies develops a system of charges that allocate costs among user classes on the basis of wastewater flow and strength. Basically,service charges must be relatively proportional to wastewater flow and strength. Wastewater agencies have considerable leeway in determining the details that form the basis of the charges including assumptions allocating costs,developing cost estimates, assigning costs to user classes, and methods of collecting charges. The general governing factor regarding developing equitable rates and charges is that such charges and the underlying assumptions must be reasonable and generally applied. Table 2 shows total system costs, loadings, and subsequent unit cost derivations for fiscal year 2004/05. The table summarizes how costs are categorized and how they are allocated among the parameters of flow, BOD, and SS. The cost allocation percentages are based on District staff and consulting engineers' judgment. All of these allocations are within industry standards and are reasonable. Other estimated allocations could be made,but would not necessarily be more accurate or more appropriate. Of importance to the permit user group is Column C - Joint(treatment plant)Operation and Maintenance. This cost category covers about 50%of total District costs. Most of the costs in this category (combined 88%)are allocated between the strength factors of BOD and SS. This results in an important benefit to users that implement pretreatment programs removing these pollutants. 5 Table 2 ■ OCSD Calculation of FY 2004-06 Charges A a L C E E S tl Rat O pllon colow CMCIP Jo1M OBM Jolm CIP COPS ECVMA51 SFI Tool 1 BudgM R".1ro.ema: E22.6W.190 E82,068,000 SB0,014,140 E109,105,000 E41,917,000 E2,538,000 E1,879,000 E385,874,530 2 Remove MterNM budgets (2,83B.00D1 (1.8]8,000) (4,614.000) 3 Remove Fluc .UMCIPW CspcCly (W.M.000) 1169.165W0) 1231,223,$W) 4 Add An T.M.Mnded'CIP WIO Capably _ 98A.0B1 32.650M 42,427,904 S RaquiremenlSler ReleSMbp 22.6 s.m 9,8".051 MA14,140 W.M.843 11.91)= 0 0 183.684,834 8 RMuca for lMnM Income 14.611.6281 (12.M.874) (3.158.498) 120.388.0001 T Nol Re2uirem0msfor Smooth RMo SsWN 22,005,T90 5.199.433 Wa14,I4D 19.y99A80 W.)5].302 0 0 1T2,916.834 No CepacXy No Capealy No Capably B AboaBon Parameter: N45 Buden Valle CIP OMM Adusl VeIIeMM CIP C.W VCIP 9 pbw 50% 90% 12% 35% 60% 10 BOD 10% M% 33% 2M 11 SS 60% 54% W% 23% Ra M MIBMW 12 AW.U.n to ParmeMrs: Coll O&M CM CIP JOIM 08M Jolm CIP COP. Total Awrege% 13 Flow 11,286,561 4.6n.490 10,393,697 O.M.W9 19,3TS,y81 52,676ABB 30% 14 BOD D 519.843 29,448.808 5.533.980 10.454.526 45967,266 m 16 s5 11,309.229 0 45771AW S.M.990 8,914,MS ",331.OB0 42% 15 22,605]90 5.199.4M ft 614.140 18]99.BB9 36767.SW 1M.976AU I" Madrid LOaMgv Flow,rr%I11 n galMna 91,250 91,250 91.250 81,250 91,250 BOD.f0001be 103,614 1",514 1T3.514 173,514 173.514 as.1000Ibe 171.014 172,014 tA,014 177,014 127.014 Proposed 17 Parameter Reba: Coll OBM Coll CIP Jolm OSM J.1m CIP COP. Rhea WwM Ralsa 18 Rex$per MO $123.80 $5128 $113so $75.95 8212.37 0.000002 0.15 ESAW E9 66y8.4M 19 BOO E per 10001b $0.00 $3.00 $169.72 07.65 E80.31 0.000ODt E210.8S W.W7.M 20 SSEper10001b E63.89 $0.00 SMr,23 E35.79 550.36 0.000Og1 E414.27 E13,331.080 21 S1)2.9]6,M 6 Adopted permit user charges for 2003/04 through 2007/08 are shown in Table 3 below. The District is considering revisions to these charges based on new information currently being developed. Table 3 ■ OCSD Adopted Charges for Permit Users 2003/04 20D4/05 2005106 2006/07 2007/08 Flow $316.38 $577.30 $637.55 $711.27 $773.32 BOD 216.13 270.68 288.50 311.21 330.53 SS 207.35 414.27 432.14 454.19 473.50 Capital Facilities Capacity Charges (CFCCs) The District imposes a Capital Facilities Capacity Charge(CFCC)on new development (including expanded use of existing users) connecting to the wastewater system in order to recover capital costs associated with providing capacity for new users. The CFCC is a one-time charge imposed on new development or expansion of existing users that places an additional demand for capacity on the District's wastewater system. The CFCC is calculated similarly to the service charge described above, with capital costs of capacity allocated among flow,BOD, and SS cost components in order to develop unit rates. The base CFCC is set to equal the capital costs required to support the flows and loadings typical of an average 3-bedroom single-family residence. Other residential CFCCs are based on a multiple of this base charge,by number of bedrooms. Commercial and industrial development CFCCs are developed in units of CFCC per 1,000 square feet, with three categories representing low, average, and high demand wastewater users. Table 4 shows the derivation of the current CFCC charges. 7 Table 4 ■ OCSD Calculation of CFCC Commercial Residential /Industrial Additional Capacity Projects $548,416,000 $287,584,000 Adjust Wet Weather Flow Facilities 35,184,000 (35,184,0001 Additional Capacity Adjusted for W W 583,600,000 252,400,000 New EDUs in 2020 202,000 106,000 CFCC per EDU 2,890 2,380 New Non-Res 1000 sq It in OCSD 126,000 New Non-Res 1000 sq ft o/s OCSD 115,000 Total New Non-Res 1000 sq ft 241,000 CFCC per 1000 sq ft 1,050 Use Category SFR Factor Res Rates Non Res Rates Commercial/Industrial Low Demand $170 Average Demand 1,050 High Demand 2,490 Single Family Residential 5+ Bedrooms 1.39 $4,020 4 Bedrooms 1.19 3.440 3 Bedrooms 1,00 2,890 2 Bedrooms 0.81 2.340 1 Bedrooms 0.62 1,790 Multi-Family Residential 4+ Bedrooms 1.08 3.120 3 Bedrooms 0.89 2,570 2 Bedrooms 0.70 2,020 1 Bedrooms 0.50 1,450 Studio 0.32 920 Appendix A contains tables showing the allocation of projects between existing customers and new growth,as well as between the cost components of flow,BOD,and SS. Table A-1 allocates the total cost of projects from the District's Validated CIP between four categories: • Replacement/rehabilitation • Improvements/upgrades 8 f • Additional capacity • Support The portion of project costs allocated to additional capacity is collected through CFCCs, while the other three components are collected through service charges,as described above. Table A-2 shows the allocation of project costs between flow, BOD, and SS,as well as showing allocation between existing users and additional capacity. This allocation of costs between the three components of wastewater allows the project costs to be distributed to the respective unit costs. Bartle Wells Associates has reviewed allocation of project costs and found them to be reasonable. As an example, project 1-17 Santa Ana Trunk Sewer Rehabilitation, intended to rehabilitate the existing Santa Ana trunk sewer, is allocated 100%to existing customers,while the related project 2-51 Santa Ana River Relief Sewer,intended to expand capacity, is allocated 100%to additional capacity. Allocation of Full Secondary Cost: The CIP includes cost and allocation of full secondary treatment. As of September 2004 these project total over$480 million. Costs are allocated 40%to improved treatment and 60%to additional capacity. Allocation of any of these costs to current users has been questioned. Virtually every other wastewater agency in California has been required to upgrade treatment standards to provide full secondary treatment. Many are required to provide advanced treatment beyond secondary. To our knowledge, every agency has allocated these cost between current and future users based on some proportion of the capacity required. There is no equitable justification in this case to allocate the costs of current flow treatment upgrades to future users. Further,the cost of secondary treatment is allocated to BOD-93%and SS—7%. In the judgment of the District's consulting engineers,the basic purpose of secondary treatment is to remove BOD. At the same time an additional small percentage of SS is also removed. The consulting engineers developed this allocation based on the design parameters that will dictate the size and configuration of the projects. Perhaps other cost allocations could be used, but they would not necessarily be more equitable. Ground Water Replenishment System Costs: The ground water replenishment system is a replacement project for a second deep-water outfall system. The outfall would only add capacity to dispose of treated wastewater and would provide no benefit to current users. As of September 2004,the District's share of GWRS is estimated to cost about $236 million and is allocated 36%to existing users and 64%to future users. The project costs allocated to current users is slightly below the allocation for full secondary treatment. One half of groundwater replenishment costs are paid for by the water district. Not only does the GWRS eliminate the need for the additional outfall,the project does provide benefits to current users. The project reduces the need for imported water because GWRS water is percolated into the ground to supplement the groundwater basin. 9 This basin is the main source of local water supply in Orange County. The project also supplies injection water to provide a seawater intrusion barrier protecting existing groundwater. GRWS water is low in total dissolved solids and helps dilute the groundwater. The resulting mix is less harmful to pipelines,appliances,and machinery. If the water and wastewater districts did not build the GWRS project,the current amount of pumping would cause dissolved solids to increase to the point where the water would no longer be useable. Supplemental Facilities Capital Charges(SCFCCs) The District also imposes a Supplemental Capital Facilities Capacity Charge(SCFCC)on Permit Users based on the expected flows and loadings in excess of the base loadings allowed for commercial/industrial CFCCs(25,000 gpd). The supplemental charge is equal to the unit cost of flow, BOD,and SS capacity,plus cost of funds. The concept of a supplemental capital charge for capacity use above the base level capacity is equitable. The theory is that a customer is using capacity beyond the level funded in the amount charged as a CFCC. If not collected as an initial capacity charge, then some other users must be funding the capital costs of the facilities being used. A supplemental charge should be collected to make up the difference. An SCFCC could be determined based on a reasonable lease of the excess facilities used. To review the equity of the current SFCC we calculated the amount of the current SCFCC in comparison to the District's CFCC. For a single family dwelling the CCFC is about$2,800 and this provides an average capacity of 250 gpd, with strength of 232.6 ppm of BOD and 250 ppm of SS. Based on the current SCFCC rates,this daily capacity would be charged about $I80 per year. Another reasonable method of determining the SCFCC would be to capitalize the CFCC at some reasonable level. Often a capitalization rate of 8%to 10% is used. For a CFCC of$2,800 this would indicate an annual SCFCC in the range of$220 to$280 per year. This indicates that current level of SCFCC appears reasonable. Cost Allocation As discussed in the section on existing rates and fees,the District uses five categories in its cost allocation. Each category in turn has its costs allocated to Flow, BOD and SS. Allocations to the categories may vary year by year. O&M allocations for collection system and treatment and disposal vary based on actual expenditures in previous years while the CIF cost categories vary based on specific projects and their costs. The debt service allocation is calculated as a weighted average of the CIP allocations. The allocation for 2004/05 is shown in Table 5. Unallocated Costs: Most wastewater agencies allocate treatment O&M costs among flow, BOD,and SS by some indirect method because there is no exact science to assignment of such costs. For example,should administrative costs be assigned to flow or to wastewater strength?The Revenue Program Guidelines for wastewater agencies 10 suggests a rule of thumb treatment cost allocation of 34% flow, 33%BOD,and 33% SS or any other allocation that an agency can reasonably justify. This means that standard wastewater agency practice is to essentially estimate 100%of how these costs are assigned. The District assigns treatment and disposal O&M based on the costs that are reasonable measurable and extends that share to the remaining unassignable costs. When a person at the District works on a specific piece of equipment at the plant or collection system,their time is tracked and allocated to that piece of equipment or to the collection system.These items already have flow, BOD,and SS allocations and therefore these costs can be allocated to these categories. Up to 2/3rds of non-capital costs however, such as administrative costs,cannot be so directly allocated and are "unassignable". Unassignable costs are given the weighted average allocation of those O&M costs that are assignable. Based on our review of the District's rate model for the past several years, flow, BOD, and SS cost allocations are based on actual historical allocations. In many ways this method is preferable to an allocation by rule of thumb. The allocation is based on actual experience,and is specific for the District. The allocations may change with changing conditions and can help identify areas where saving may be possible. Table 5 ■ OCSD 2004105 Cost Allocation O&M CIP Colkntion Treatmentand Collection Treatment and System Disposal System Disposal Debt Service Flow 50% 12% 9D% 35% 50% BOD 34% 10% 33% 27% SS 50% 54% 32% 23% The District staff report of October 13,2004 and included as Appendix B details the methodology for determining the allocation of each cost category among Flow,BOD,and SS. BWA reviewed the allocations and the reasoning behind them and believe them to be within the acceptable range used in engineering practice. BWA also believes that the explanations of the allocations used are based on sound principles. Property Tax Revenues OCSD receives a portion of the County's 1 percent general property tax levy collected from properties located within the District's service area. The District's last rate study indicates that these property tax funds were subtracted from the District's total revenue requirements prior to derivation of unit costs of service. I However, beginning in 1998/99,Permit Users' property tax payments were also deducted from their calculated service charge,even though total property tax revenues had already been deducted when determining unit rates used to calculate service charges, resulting in a double-counting of the Permit Users' property tax payment. Impact of Property Taxes: Table 6 shows the impact on rates of using property taxes to reduce the net revenue requirement for FY 2004-05. This table is identical to Table 2 except that an estimated $28 million of property taxes are used to reduce the amount required to fund debt service(COPs). The table below compares user charges both including and not including property tax revenues. Flow BOD SS $per MG $per 1,000 lbs $ per 1,000 Ibs Prior to Property Taxes $577.30 $270.68 1 $414.27 After Property Taxes $423.87 $227.11 1 $377.89 The change in rates is dramatic and does not impact each parameter the same. Flow unit costs are 36%higher when taxes aren't included,BOD costs are 19% higher,and SS costs are 10%higher. This would impact most users with high flow and lower strength wastewater. Revised Rates The District revised rates and eliminated the property tax adjustment to unit costs so that Permit Users would no longer receive excess credit for property tax payments. OCSD derived 2004/05 unit rates of$577.30/MG,$270.68/1,000 Ibs BOD,and$414.27/1,000 Ibs of SS based on the cost of service,net of contributions from reserves, interest income, and other non-property tax revenues. The calculations assumed no off-setting contribution from property tax. Therefore,these unit rates reflect the cost of service to all District customers as reflected in calculated charges for Permit Users. Consistent with District Ordinance 01,the District credits Permit Users for tax payments reducing the net amount due on a given invoice. The invoice amount due, plus the tax payments made, equal the full cost of service. Residential and commercial customers would continue to pay lower unit charges in lieu of individual property tax credits. These lower unit charges are determined by deducting property taxes from gross revenue requirements. The effect of the District's new approach in using net cost of service unit rates is that Permit Users receive credit for only what they themselves have paid in taxes. However,this approach to property tax credits is not consistent across the District's user base. Because of the impact of Proposition 13 on assessed values,there is wide variation in individual tax levies. At present,the District credits only Permit Users with their 12 Table 6 ■ OCSD FY 2004/05 Rate Calculation -With Property Taxes A a G 4 € E 9 H Red Oeactlotivn Cod OSM Cal CIP Jam mM JMM CIP COP. Evuily AM SFI TMM 1 SuLgM RegMmmeM.: E22.606.71M E82AS8000 E00,614,140 E1M.1M.800 E41,917,000 32.=,= E1,108.000 IMS0,874,BM 2 Raoox.In rdl MIegM. (2.M.0M) JIAM.OM) (4.S14,M0) 3 Ramwe FluduMOq CIP WM C.Pactly (w.0w.OM1 (169.165.800) (291,M600) 4 Add Avg-C&Wmde CIP WIo Capacity 9.Bn.001 J2.SM.B43 42A9.904 5 Reaulramoda for RMe Selling 22.800.79) 9.Bn.p01 B9.914.140 32.5M043 41.917,000 0 0 193,884,834 e Ra4uo.lm lMmOM lnwma P.877.wa) (12]80.8]4) (3.159,19B) (M.NB. M) ea Rxxd cm for Properly Tex (28.MD.=) ] NM Rwulm.w0.Im SmwOI RMe Se11M9 22,605.]90 5.1g9,433 88.614,140 19.199,969 10,]5],502 0 0 1T2,618,834 No Capacity NOCapacBy No Cap" 6 A110.1 on Peramodox: 0405 award V.I18Ma8 CIP 03 04 Actual VoHdaleB CIP Cone,Mix 9 Flow 50% 9M I M% SO% 10 501) 10% 34% 33% 2]% 11 SS 50% 54% 32% 23% Rodom weIghlaa 13 Albullon to PnemMen: Call C6M Call CIP JNm Cam Joint GIP COP. Too Axor oe% 13 P. 11,29B,M1 4.6"A0 10,n3.897 6.929.989 5,3M.751 M.878,4138 2M 14 BOD 0 519.943 n.44B.MB 8.533.98o 2,904,S28 39.407,206 2M 15 SS II,M,2n 0 M.]]1.6W 6.335.980 2,474.MS 66.11911OM 'Im 16 22.B05.790 5.199,4M 88,814,140 191M.908 10,751,502 144,076,834 100% Dodd I xftrx9s Flux.Mahon 9Mlom 91.2M 91.2154) 91,2M 91.2M 91,2M BOD,10001ax 173.514 1",514 173.514 IM.514 M514 SS,1000 I0e 1".014 1n,014 177,014 1n,014 1n.014 17 Panned.ROM. Cdl CSh1 Coos CIP JaWICBM JOIMCIP COP. pN t� WwM Rel.e III F S MMG SIMON) 01.20 $113.B0 "M MOOS 0.00W01 0.11 3423.8T V)I)6G BAM 19 8OD8pr100010 MAO NOW E180.72 E37.88 $1874 0.000001 u27.11 3M,407,2M 20 SS E pM 100010 OadO 110.0 E281M =79 313.98 D.000001 Al]],89 30 OMI.OM 21 E144.976.6b 13 actual property tax paid while other District users receive an average property tax credit based on total tax revenues. An alternative approach would be to subtract all property tax revenues from total cost of service revenue requirements, before calculating unit costs of service. This would treat property tax revenues in the same way as interest and other income is treated at present, and would apply to all classes of users. This approach has the benefit of treating all customers uniformly by spreading the benefit of property taxes equally. it would also simplify Permit User billing practices by eliminating the property tax credit system. Perhaps most importantly, it would allow the District to easily demonstrate that the same unit costs apply to all classes of customers. However, based on our analysis, most of the large Permit Users would benefit from this approach. At present, large Permit User property tax credit per unit of wastewater flow is less than the average residential property tax per unit of flow,as shown in Table 7. On average,the 334 Permit Users receiving the property tax credit,pay$0.009 in property taxes per 100 gallons of wastewater flow. An average single family residence pays $0.065 per 100 gallons of wastewater flow. Table 7 ■ OCSD 2003104 Property Tax Contributions per Unit of Wastewater Flow OCSD Annual Wastewater Property Tax Property Tax Flow, gallons per 100 gallons Average Single Family Residence $60 92,345 $0.085 IndustryA 36,000 459,000,000 0.008 Industry B 6,600 390.000,000 0.002 Industry C 3,400 84,000,000 0.004 334 Tax Credited Permit Users $495,502 5,528,849,900 $0.009 This is the reason for the major impact of the rate revision on Permit Users. As a group they pay less property tax per unit of wastewater discharge than other users. So using property taxes to reduce unit costs is a distinct benefit to the Permit User class. Timing of Permit User Rate Adjustment Below is a summary of the timing of the rate adjustment to Permit and other users. June 2004—District increased all service charge rates by 15%effective July 1,2004 July 2004— District identified problem with double credit for Permit User property tax August 2004—Nonpermit user rates submitted to County Tax Collector for collection September 2004— Proposed rate increase to Permit Users for both property tax and new C1P. 14 1 January 2005—New rates effective for Permit User class, including the adjustment for property taxes and an average 9.2% increase due to validation of the new CIP. July 2005—Average 6.6% increase to Permit Users, 31%rate increase to other user classes The District's January 2005 rate adjustment to Permit Users not only included a component for the property tax correction, but also included an increase to reflect the new CIP. The District didn't adjust the rates for other user classes because these are included with the property tax bill and can't be adjusted until the following fiscal year. The result was that Permit Users faced a rate increase six months earlier than other user classes. On the one hand the rates werejustified by the increase in the CIP. But on the other hand this one group was the only one to receive the increase for six months. However,this inequity was more than compensated for six months later when rates for other user classes were increased 31%and Permit User rates were increased an average of 6.6% There is no hard and fast rule that all user classes must be adjusted at the same time,but in retrospect the District would be well advised to adjust all rates at the same time. The problem was acerbated by the unexpected impact of the property tax adjustment. In the future to avoid confusion, adjustments to user charges should apply simultaneously to all user classes. This situation occurs with water districts every time they adjust rates because water meters are generally read bimonthly. So,about half of water customers pay the higher rate one month earlier than the other half. Rate Comparison with Other Agencies The Permit Users requested an industrial rate comparison with other large wastewater agencies. Table 8 shows several rate comparisons. 15 Tablell ■ OCSD Industrial Rate Comparison 2004/05 2005/06 Orange County Sanitation District Flow-$/1,0D0 gal $577.30 $637.55 BOD-$/1,000 Ibs 270.68 288.50 SS-$/1,000lbs 414.27 432.14 City of Los Angeles Flow-$/1,000 gal ind ind BOO-$/1,D00Ibs 266.00 285.00 SS-$11,000 Ibs 268.00 287.DO City of San Diego Flow-$/1,D00 gal $3,424.00 $3,681.00 COD'-$/1,000 Ibs 143.60 143.60 SS-$11,000 Ibs 399.40 429.40 County Sanitation District of Los Angeles Flow-$11,000 gal $478.00 $509.00 COD*-$11,000 Ibs 84.50 90.00 SS-$11,000 Ibs 238.96 254.40 FINDINGS AND RECOMMENDATIONS Alternative Rate Structures As discussed previously, and based on our review,we find that the District's current system of rates and charges is well within the standards of public wastewater agency practice. We do not believe that any major changes are warranted. Therefore,we would not recommend any major changes to the rate structure because of the disruptions these changes could cause to various user classes. However,the District may wish to consider the following two alternatives for addressing the property tax credit issue: Continue current rates-.The District could continue with its current rate structure. This includes higher Permit User unit charges combined with property tax credits. Other user classes do not receive an actual property tax credit,but pay lower unit charges. 16 Eliminate property tax credits: The District could eliminate the current system for Permit Users and establish uniform unit charges that are net of property tax revenues. The same unit charges would then apply to all users. Permit Users would no longer receive a credit for property taxes. Other Recommendations • The District should co-ordinate future rate increases so that to the extent possible rate adjustments are made simultaneously to all user classes. • The District may want to re-examine the CIP allocation of full secondary treatment to see if some portion of these costs might equitably be allocated to flow. • The District needs to update its CFCC with each update in the CIP. Ideally,these would be at the same rate of change and would automatically apply. An alternative method would be to establish an annual adjustment to the CFCC that is based on the change in the ENR Construction Cost Index for Los Angeles. In addition,the projection of future growth has been lowered. The District should factor the lower growth projection into determination of the CFCC. If implemented,these recommendations would have no impact on service charge unit rates. • If the CFCC is reviewed or updated,the District should consider a supplemental 'buy-in' component of the capacity fee as at present the capacity fees only ask new customers to buy into new facilities required to serve them. They are however served by existing facilities for which they not have contributed. The District is not required to charge new connections the maximum cost of providing capacity but they are permitted to do so by law. If the charge is reviewed,the District may want to examine the allocation of costs between residential and commercial that derives a lower fee for commercial users. The District could derive an average cost of capacity that would be used to calculate fees for all customer classes in the same way. Non-residential customers appear to receive a break under the current methodology. • We suggest that the current SCFCC be confirmed by Carollo Engineers during the current rate and charge review. We would also recommend that industries should have the option of purchasing needed capacity in excess of the 25,000 gpd currently permitted by the District's grandfather clause. If additional capacity is purchased,then the user would not be subject to an additional SCFCC charge. This option may be preferable for some industries wishing to fund more capacity on a one-time basis rather than pay a supplemental annual fee. • Debt service allocation is annually adjusted by the weighted average of the CIP allocation. This can cause abrupt changes in allocations for this cost category. The District could adopt a capital allocation for a five or ten-year period to 17 eliminate abrupt shifts. More importantly,this method does not accurately reflect the proper allocation of debt actually used. H:Wept4gm&WAHRkFAHR200610506�06.0642.Rve StWy Validation-Au 2.dw 18 MINUTES OF LEGISLATIVE AFFAIRS COMMITTEE MEETING Orange County Sanitation District Tuesday, May 9,2006, 8:00 a.m. A meeting of the Legislative Affairs Committee of the Orange County Sanitation District was held on April 11, 2006, at 8:00 a.m., in the Sanitation Districts Administrative Office. (1) The roll was called and a quorum declared present, as follows: LEGISLATIVE AFFAIRS STAFF PRESENT: COMMITTEE MEMBERS: Jim Ruth, Interim General Manager Bob Ghirelli, Director of Technical Services Directors Present via Penny Kyle, Committee Secretary Teleconference: Karen Baroldi, Senior Environmental Specialist Layne Baroldi, Legal & Regulatory Affairs Liaison Steve Anderson, Board Chair Sarah Redinger, Jim Ferryman,Vice Board Chair Dean Fisher DIRECTORS ABSENT: OTHERS PRESENT via Teleconference: James W. Silva Eric Saperstein John Freshman Sean Fitzgerald Scott Baugh Christopher Townsend (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were no public comments. (4) REPORT OF THE COMMITTEE CHAIR Chair Anderson had no report. (5) REPORT OF THE GENERAL MANAGER Jim Ruth, Interim General Manager, had no report. (6) REPORT OF DIRECTOR OF TECHNICAL SERVICES Bob Ghirelli, Director of Technical Services, had no report. Minutes of the Legislative Affairs Committee Meeting Page 2 May 9, 2006 (7) REPORT OF GENERAL COUNSEL General Counsel was not present. (8) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same,as follow: a. Approve minutes of the April 11, 2006 Legislative Affairs Committee meeting. MOTION: It was moved, seconded and duly carried to approve Item 8(a)under Consent Calendar. FND OF CONSENT CALENDAR (9) ACTION ITEMS a. No items were considered. (10) INFORMATIONAL PRESENTATIONS a. LEGO6-04 Legislative Affairs Update Eric Saperstein, John Freshman, Sean Fitzgerald and Scott Baugh provided updates on current legislative issues, including the District's pursuit of federal money for secondary treatment upgrades and the SARI Realignment and Protection Project as well as OCSD's proposed design-build legislation and the Govemor's infrastructure bond. (11) CLOSED SESSION There was no closed session. (12) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) CONSIDERATION OF UPCOMING MEETINGS The next Legislative Affairs Committee meeting is scheduled for June 13, 2006, at 8:00 a.m. Minutes of the Legislative Affairs Committee Meeting Page 3 May 9, 2006 (15) ADJOURNMENT The Chair declared the meeting adjoumed at 8:46 a.m. Submitted by: AIt4 Penny M. KVe Committee Secretary H:Wep0a09nda\LEGISLATNE AFFAIRSMOM02081021406 Minube.dm GWR System Steering Committee April 10, 2006 MINUTES GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE STEERING COMMITTEE (A Committee of Orange County Water District and Orange County Sanitation District Directors) OCWD Boardroom, 10500 Ellis Avenue, Fountain Valley Monday, April 10, 2006, 5:30 p.m. Committee Members Philip L.Anthony OCWD Director, Chairman .............Present Kathryn Barr OCWD Director ..............................Present Roger Yoh OCWD Director...............................Present Steve Anderson OCSD Director ...............................Present Mike Duvall OCSD Director, Vice Chairman.......Present Carolyn Cavecche OCSD Director ...............................Present Alternates Jan Debay OCWD Director(No. 1)....................Present Denis Bilodeau OCWD Director(No.2)...._........Not Present Steve Sheldon OCWD Director(No. 3)..............Not Present Jim Ferryman OCSD Director(No. 1)........._.........Present Don Bankhead OCSD Director(No. 2) ....................Present Larry Crandall OCSD Director(No. 3) ...................Present Other Directors Present None CONSENT CALENDAR(ITEM NO.1) MOnONIVOTE ACnON TAKEN 1. MINUTES OF PREVIOUS MEETING ANTHONY-AYE RECOMMENDATION:Approve Minutes of the March 13,2006 BARR-ABSTAIN APPROVED Groundwater Replenishment System YOH- SECOND,AYE Steering Committee Meeting as mailed ANDERSON- AYE DUVALL-MOTION,AYE CAVECCHE- SECOND,AYE END OF CONSENT MATTERS FOR CONSIDERATION 2. CONTRACT NO.GWRS-2004-1-GROUNDWATER ANTHONY-AYE REPLENISHMENT SYSTEM ADVANCED WATER BARR-AYE APPRovED PURIFICATION FACILITY(J.F.SHEA CONSTRUCTION, YOH- AYE INC.): REDUCTION IN RETENTION ANDERSON-SECOND RECOMMENDATION:Authorize a reduction in the amount of DUVALL- MomON,AYE retention for Contract No. GWRS-20D4-1, CAVECCHE-AYE Groundwater Replenishment System Advanced Water Purification Facility,from 10%to 5%in accordance with the provisions contained within the project Contract documents _ 1 _ GWR System Steering Committee April 10, 2006 3. CONTRACT NO.GWRS-2003-5-GROUNDWATER ANTHONY—AYE REPLENISHMENT SYSTEM UNIT I PIPELINE PROJECT BARR-AYE APPROVED (KEN THOMPSON.INC.): CHANGE ORDER NO.11 YOH— AYE RECOMMENDAIPON:Agendlze for April 19 OCWD Board ANDERSON— SECOND,AYE meeting: Aumodze Issuance of Change DWALL— MOTION,AYE Order No. 11 for an Increase in contract CAVECCHE— AYE price totaling$174,997 and no Increase in contract time 4. CONTRACT NO.GWRS-2003-4-GROUNDWATER ANTHONY—AYE REPLENISHMENT SYSTEM UNIT II PIPELINE PROJECT BARR—SEOOND,AYE APPRovED (COUCH CONSTRUCTION,L.P.): CHANGE ORDER NO.8 YOH— AYE RECOMMENDATION:Agendize for April 19 OCWD Board ANDERSON— AYE meeting: Authorize issuance of Change DWALL— MOTION,AYE Order No.8 for an increase in contract primCAVECCHE—AYE totaling$558.999 and no increase in contract time INFORMATIONAL ITEMS 5. STEEL PRICING UPDATE INFORMATIONAL 6. ADVANCED WATER PURIFICAITON FACILITY COST INFORMATIONAL SAVINGS UPDATE 7. PROJECT SCHEDULE AND BUDGET UPDATE INFORMATIONAL 8. CONSTRUCTION PROJECTS PROGRESS INFORMATIONAL 9. MONTHLY CHANGE ORDER UPDATE INFORMATIONAL 10. STATUS REPORT INFORMATIONAL • Grants and Loans Update • Public Information and Education Update DIRECTORS'ANNOUNCEMENTSIREPORTS GENERAL MANAGERS'ANNOUNCEMENTSI REPORTS ADJOURNMENT _2_ BOARD OF DIRECTORS Meet gDabe roOS/2ed.9/0or6ar. j AGENDA REPORT IhanNumEe �iiti Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Wendy Sevenandt, CIP Project Manager SUBJECT: GROUNDWATER REPLENISHMENT SYSTEM, JOB NO. J-36 GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 13 to the Professional Services Agreement with Camp Dresser& McKee, Inc., providing for the annual cost-of-living adjustment for 2006 and additional out of scope work items for the Groundwater Replenishment System, Job No. J-36, for an additional amount of$219,970, increasing the total amount not to exceed $34,335,753 to be equally shared with the Orange County Water District. SUMMARY • The Professional Services Agreement with Camp Dresser & McKee, Inc. (CDM) requires a cost-of-living adjustment to the remaining balance of authorized funding each April, based on the January-to-January adjustment of the Consumer Price Index. This year's annual adjustment is $97,251. • The Orange County Water District proposes additional scope for CDM to provide additional design review for drilled piles, convert a small space designated for a lab into office space, provide a design for the layout of process control system equipment in the Control Room, and provide redesign for the Unit 1 and Unit 2 Pipelines due to obstructions. The additional cost for this work is $122,719. • Two items in the proposed amendment were deferred by the GWR System Steering Committee at their May 8, 2006 meeting. These items were for the third shop drawing review and additional control panel and software review. PRIOR COMMITTEEIBOARD ACTIONS See the Professional Services Agreement Status Report, Attachment No. 2, for all previous actions and dates regarding the Camp Dresser& McKee, Inc. agreement. PROJECT/CONTRACT COST SUMMARY Authorization of$109,985 from the Construction Phase budget is being requested as shown in the attached Budget Information Table. RwW 01ro M Page 1 r BUDGETIMPACT ® This item has been budgeted. (Line item: Section 8-Page 121) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION See attached GWR System Steering Committee Agenda Item Submittal. This agenda item submittal was presented to the GWR System Steering Committee at the May 8 meeting. Item 3 for the third shop drawing review was deferred and the Committee requested staff to bring the deductive change order for the contractor at the same time for simultaneous approval of the increase to CDM and decrease to the contractor. Item 7 was deferred for more information on the hours and costs. ALTERNATIVES There are no alternatives. CEQA FINDINGS The Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the GWR System was certified by the Orange County Sanitation District (Sanitation District) and the OCWD Board of Directors on March 24, 1999. Addendum No. 1 was approved on March 28, 2001. Addendum No. 2 was approved by the Sanitation District on January 23, 2002, and by OCWD on January 16, 2002. Amendment No. 3 was approved by the Sanitation District on March 24, 2004 and by the GWR System Steering Committee on December 1, 2003. ATTACHMENTS 1. Budget Information Table 2. PSA Status Report 3. Agenda Item Submittal to the GWR System Steering Committee Re: Amendment No. 13 to Professional Services Agreement with Camp Dresser& McKee, Inc. WS:eh HMtglobalWgenda Dreg ReportsUoint BoardsU-36 CDM amend 13.doc R-. o,A.m Page 2 BUDGET INFORMATION TABLE GROUNDWATER REPLENISHMENT (GWR) SYSTEM JOB NO. J-36 PROPOSED ORIGINAL CURRENT BUDGET PROPOSED = FUNDS THIS PROPOSED ESTIMATE' ESTUAATED PROJECTIPNdSE AUTXOg12;ED , PROJECT - INCREASE REVISED` AUTHORIZED TO AUTHORIZATION TOTAL IXPENOITURE E%PENDEb TO BUM$ET BUDGET BUDGET DATE " REQUEST AUTHORIZATION TODATE (DECREASE _ ,. Phase1-P 'act Development $ 70Q000 $ 11,000 $ 11,0 -„ $ 11,000 $ 11,000 $ 10,22] 93% Phase 2-Prelimin Design $ 3,321.000 $ 3,321.0W $ 3,321.000 $ 3,321,000 $ 3.320.336 100% Phase 3-Desi n $ 9.849,000 $ 17,246,640 $ 17.246.540 $ 17,246,540 $ 17,246,540 $ 15.615,861 91% Phase 4-Construction $ 98.481.000 $ 217,933.460 S 217,933.460 $ 215.956,207 $ 109,985.00 $ 216.056,192 $ 141,330,498 65% Phase5-Commissioning $ 977,000 $ 977.000 I $ 977,000 $ 9 000 $ 451,841 46% Phase6-Clws W $ 171,000 $ 171.000 $ 171,000 $ 171.000 $ 81,761 48% Phase 7-Conlln enc $ 12.895.000 $ 12,000,000 $ 12.000,000 $ 0% P�l' PROJECTTOTAL $ 121,925,000 $ 251.660,000 $ - $ 251.660,000 $ 237,662,747 $ 109,985.00 $ 237,792,732 $ 160.810,524 68% Reimbursable Costs $ 45,000,OOD $ 45,00,C00 $ 45,000,000 1 $ 45,000,000 36,920,089 82% PROJECT NET $ 121,925,000 1$ 206660,000 $ .. - $ 2CQ660,C00 le $ 192,6a2,747 $ 109,985.00 $ 192,792,TJ2 $ 123,890,435 64% PSAIContract Desi nPSA $ 19,281,163 $ 19,281,163 - $ 18,979,757 $ 109,985.00 $ 19,089,742 $ 16,226,359 85% Constmctlon Manangement $ervices P6A $ 8,994,542 S 6,994,542 $ 6786.623 $ 8,788,823 $ 2,209,630 33% Construction Contact $ 203,294,901 $ - $ 203,294.901 ' $ 193.697,953 $ 193,897.953 $ 34.500A00 18% R:Weplb4en4�4Rpen4a R,... 009B ld Aa.d.8Al.d.R¢PVIsb5 W.17}XCDM .1 Professional Services Agreement Status Report Groundwater Replenishment System Job No. J-36 Total Project Budget = $251,660,000 Consultant Camp Dresser& McKee, Inc. Start Date of Project May 1994 Date Amendment Description Coat Accumulated Costs Original Preliminary Design $ 4,810,300.00 6/23/1999 1 Engineering services for design changes to containment costs $ 172,649.00 $ 4,982,950.00 3/2212000 2 Prepare a documents for early construction of pipeline to support Sherrif Department work at Theo Lacy Jail $ 56,970.00 $ 5,039,920.00 3/28/2001 3 Final Design and Construction Support Services $29.924,187.00 $ 34,964 107.00 Incorporate the temporary microfiltration system into the permanent facilities; administrative changes including the subconsultant selection process, the 12119/2001 4 Groundwater Producers Advisory Committee, project schedule extension, and a reduction in effort for the study for 66 kV power services to OCSD; and design changes. $ 369,000.00 $ 35,333,107.00 6/26/2002 5 January 2001 to January 2002 Cost of Living Adjustment $ 557,697.00 $ 36,890,804.00 Studies related to pipeline alignments,wells, building siding, and lime silo 9/25/2002 6 height, additional pile design,and additions and deletions for the Process Control System and Integrated Information System $ 2,945,100.00 $ 32,945,704.00 1/152003 7 Additions and deletions of work for sixteen areas of the project $ 25,062.00 $ 32 920,642.00 5/122003 8 Additions and deletions in engineering services for 41 Items of work for the project, and a time extension is needed for a revised schedule $ 22,397.00 $ 32 898 245.00 6/122003 9 January 2002 to January 2003 Cost of Living Adjustment $ 383,291.00 $ 33,281,536.00 Relocation of Screening Facility and pipelines, connection to ouffall for 10222003 10 discharge of test water, air gap for fire protection water, traffic study for relocated entrance, and landscaping at administration building $ 305,550.00 $ 33,587,086.00 PCS change control program, permitting assistance, relocation of Ward Street 6/23/2004 11 entrance, landscape renderings on Ward Street, on-site traffic study, move Barrier controls to AWTF, conformed drawings cost reduction and cost of living adjustment. $ 342,833.00 $ 33,929,919.00 6122/2005 12 Cost of living adjustment, redesign of pipelines, and process control system management support I $ 185,864.00 1 $ 34,115,783.00 Pending 13 Cost of living adjustment, design of water well, and other change order/construction management support 1 $ 219,970.00 $ 34,335,753.00 'The full amount of the PSA Is reported. The total amount is cost shared 50%between OCSD and OCWD. H1deptlagendalBoard Agenda Reponat (XC Board Agenda&Agenda Reporisl)505\Item 17.J-36 COM-Aft 2 AGENDA ITEM SUBMITTAL Meeting Date: May 8, 2005 Budgeted: Yes Funding Source: OCWD/OCSD/Grants To: Groundwater Replenishment Program/Line Item No.: GWRSAT 17200.40015 System Steering Committee Cost Estimate: $374,773 increase to PSA From: Virginia Grebbien General Counsel Approval: N/A James Ruth Project Report Approved: Yes CEQA Compliance: Yes Staff Contact: Mike Markus Subject: ADDENDUM NO. 13 TO PROFESSIONAL SERVICES AGREEMENT WITH CAMP DRESSER & MCKEE, INC. SUMMARY The Camp Dresser& McKee, Inc. professional services agreement has a provision for an annual cost-of-living adjustment for any fees remaining in the agreement. This addendum addresses the cost-of-living adjustment for 2006 and five additional out of scope work items. RECOMMENDATION Agendize for the May 17 OCWD and May 24 OCSD Board meetings: Approve and authorize issuance of Addendum No. 13 to the Professional Services Agreement with Camp Dresser & McKee, Inc., increasing the authorized amount by $374,773 from $34,115,783 to an amount not to exceed $34,490,556, for the annual cost-of-living adjustment and changes in the Scope of Work. DISCUSSION/ANALYSIS Additions to the Camp Dresser& McKee, Inc. (the design engineer) professional services agreement are needed in order to comply with the cost-of-living adjustment contained within the agreement and to address six additional out of scope work items. Each item is described in greater detail bellow: 1. Cost-of-Living adjustment The Professional Services Agreement (agreement) with the design engineer includes a cost-of-living adjustment to any remaining balance of authorized funding each April 1s, based on the January-to-January adjustment of the consumer price index for the Los Angeles-Riverside-Orange County area. The January —to-January consumer price index increase for 2005-2006 was 5.42%, but the agreement caps the cost-of-living adjustment to 5.00%. This 5.00% increase when applied to a remaining agreement balance of$1,945,028 amounts to an addition of$97,251. - 1 - 2. Additional review for drilled piles The original foundation design throughout the Advanced Water Purification Facility had each structure supported on standard designed pre-cast concrete piling, which would normally require one submittal for review by the design engineer. A proposal was made by the general contractor early in the project to substitute the precast concrete piling with cast-in-place drilled piling. The proposal was accepted by the District and the change amounted to significant savings to the project. With the new piling system, each structure needed to be analyzed individually to assure that the correct amount of reinforcing steel was provided for the piles at each location. This resulted in the evaluation of the piling in seventeen different locations and significant additional review and meeting time for the design engineer. The level of effort required to perform the design review for the new piles amounted to a total of 385 additional hours. 3. Third shop drawing reviews The scope of work in the design engineer's agreement includes the review of any first and second shop drawings. If more than two shop drawing reviews are required, the Advanced Water Purification Facility contract states that the general contractor shall pay for the cost of those reviews. Since the design engineer's agreement is between it and the District, the District is obligated to pay the design engineer for this out of scope work, but the District will pursue these additional costs with the general contractor. The level of effort required to perform these reviews through March 2006 has been 480 additional hours. 4. Control room design The original design for the Advanced Water Purification Facility did not provide for any features inside of the control room space. This work would have the design engineer provide the design of the control room including any control console and monitoring screens that would be required to make the space a functional control room. The level of effort required to perform this task would be an additional 155 hours. 5 Redesign of wet lab in RO Electric Building to office space The original design for the Advanced Water Purification Facility provided for a small wet lab to be located on the second floor of the RO Electric Building. After looking into the space planning further, the District feels it would be better served to change this space from a wet lab to two offices. These offices would be for the Barrier Supervisor and the Plant Process Engineer. These changes can still be made without impact to any of the construction at the RO Electric Building and should result in an overall savings in cost because of the elimination of casework and other features in the wet lab space and the more simple features of the office space. The level of effort required to perform this task would be an additional 74 hours. - 2 - 6. GWR Pipeline redesign at street and freeway crossings Because of unforeseen obstructions at a number of tunnels on the Unit I and Unit II Pipeline Projects, the pipeline alignment had to be drastically changed. Major redesigns occurred at Harbor Boulevard, Fairway Ave., 17" Street and SR-57. Not only did the alignment need to be changed, but numerous meetings with the affected cities and agencies were required. The level of effort required to perform the redesign for the new realignments amounted to a total of 250 additional hours. 7. Additional control panel and software review The original requirement in the specifications was to have all the control panels on the project submitted in one package along with the software programming to control the entire plant. After this package was approved, the entire system was to be factory witness tested at the Process Control System Integrator's (PCSI) facility before being shipped to the project. This requirement was deemed to be unworkable and unpractical for all parties. It was further agreed that the PCSI could test various systems independently and still have the ability to tie all systems together once installed. This, however, would necessitate additional submittals by the PCSI. The estimated level of effort required for submittal review and coordination of this work is 600 additional hours. The following table summarizes the changes: Changesin Owner Item Camp Dresser Initiated & McKee Scope Changes Budget Design Changes 1. Cost-of-Living adjustment $97,251 Yes 2. Additional review for drilled pile $57,811 Yes 3. Third shop drawing reviews $58,053 Yes 4. Control room design $17,350 Yes 5. Redesign of wet lab in RO Electric Building to office space $10,320 Yes 6. GWR Pipeline redesign at street and freeway crossings $37,238 Yes 7. Additional control panel and software review $96,750 Total-Addendum No. 13 $374,773 - 3 - PRIOR COMMITTEE ACTIONS May 9, 2005 Approval by the GWR System Steering Committee for Addendum No. 12 to CDM for Professional Services Agreement for changes in the Scope of Work. May 10, 2004 Approval by the GWR System Steering Committee for Addendum No. 11 to CDM for Professional Services Agreement for changes in the Scope of Work. October 13, 2003 Approval by JCC for Addendum No. 10 to CDM for Professional Services Agreement for changes in the Scope of Work. May 12, 2003 Approval by JCC for Addenda Nos. 8 and 9 to CDM for Professional Services Agreement for changes in the Scope of Work. January 13, 2003 Approval by JCC for Addendum No. 7 to CDM for Professional Services Agreement for changes in the Scope of Work. May 13, 2002 Approval by JCC for Addendum No. 6 to CDM for Professional Services Agreement for changes in the Scope of Work. January 28, 2002 Approval by JCC for Addendum No. 5 to CDM for Professional Services Agreement for changes in the Scope of Work. November 14, 2001 Approval by JCC for Addendum No. 4 to CDM for Professional Services Agreement for changes in the Scope of Work. March 19, 2001 Approval by JCC for Addendum No. 3 to CDM Professional Services Agreement for final design and construction phase services. -4 - ti BOARD OF DIRECTORS Meeting Dare To Bd.o Dir. 05/24/06 AGENDA REPORT tom^"umbe 1�^"•mom IB Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Umesh Murthy, CIP Project Manager SUBJECT: Carbon Canyon Sewer and Pump Station Abandonment, Contract No. 2-24-1 GENERAL MANAGER'S RECOMMENDATION Approve License for Access Purposes Agreement with SWEPT LP for gathering geotechnical data for the Carbon Canyon Sewer and Pump Station Abandonment, Contract No. 2-24-1, in a form approved by General Counsel, at no cost to the Sanitation District. SUMMARY • Contract No. 2-24-1 is for the abandonment of the existing pump station and the force mains, and for the construction of a new gravity feed line across the Carbon Canyon Dam. • The gravity sewer is proposed to be constructed in the property that SWEPT LP owns and operates through its operating agent, Aare Energy LLC. • The Sanitation District's geotechnical consultant needs to enter SWEPI LP property for design purposes. Geotechnical borings and trench excavations will be done to determine the extent of unconsolidated soil materials. PROJECT/CONTRACT COST SUMMARY The agreement will not have any effect on the project cost. SWEPI LP is proposing a no cost license. The costs of the geotechnical work are included in the budget line item for design. No additional funds are necessary. See attached budget information table. BUDGETIMPACT ® This item has been budgeted. (Line item: FY 2005-06, Section 8, Page 13: ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION During the design process, the Sanitation District and the Sanitation District's Design Consultant, RBF Consulting, discovered that there are probable unconsolidated soils in some of the areas where the Carbon Canyon Dam Sewer is proposed to be constructed. The integrity of the sewer requires that the soils be removed and re- graded; therefore it is necessary to determine the limits of the unconsolidated soils. The geotechnical work necessary to determine these limits will be performed by Kleinfelder Consultants, under their service contract with the Sanitation District. A portion of the proposed construction area is owned by SWEPI LP. SWEPI LP is willing to allow the Sanitation District's geotechnical consultant to enter the property, provided the Sanitation District enters into an access agreement with SWEPI LP. The access agreement will require the Sanitation District's geotechnical consultant to furnish proof of insurance to SWEPI LP, indemnity SWEPI LP for the Sanitation District and consultant actions, and allow SWEPI LP to participate in the preparation of and obtain copies of all reports generated by the geotechnical exploration. The Sanitation District staff and legal counsel have worked with SWEPI LP to achieve an acceptable access license. The Sanitation District previously entered into a similar agreement with SWEPI LP in April of 2003. However that agreement has expired and was for different consultants. ALTERNATIVES N/A CEQA FINDINGS The project environmental impact report was certified by the Sanitation District Board of Directors on May 25, 2005. ATTACHMENTS 1. Budget Information Table 2. License for Access Purposes Agreement with SWEPI LP UM:LR:dm:eh H:WglobapAgenda Draft Report Uoint Boards2-24-1 AR SWEPT LP Access Agreement 052406AW anon,. anoa, Page 2 BUDGET INFORMATION TABLE CARBON CANYON DAM SEWER AND PUMP STATION ABANDONMENT, CONTRACT NO. 2-24-1 it PROPOSED — CURRENT ,BUDGET PREWSED FUNDS' THIS PROPOSED EPENOI UR � ES'Nb ffDPROJECTIPHABE ' PROJECT ..INCREASE ,REVISED -. AUTNDATE TO AUTHORIZATION TOTAL EXPEN6MIRE EXP"NHDHO TU' BDDOET BUDGET DATE : REQUEST' AUTXORI7AAONTO DATE' DECREABEPhase l-Project Develo me $ 12,768 $ - $ 12.768 $ 12,768 $ 12,768 $ 12,768 100% Phase 2-Prellmina Desi n $ 224.955 $ - $ 224,955 $ 224.955 $ - $ 224,955 $ 358,740 159% Phase 3-Desi n $ 280.300 1 $ 770,468 $ - $ 770.468 $ 731.786 $ - $ 731.788 1 $ 707,224 97% Phase 4-Construction $ 1.849.500 $ 5.600.203 $ - $ 5,600.203 $ - $ - $ - $ 208 Phase 5-Commissioning $ - $ 56,346 $ - $ 56,346 $ - $ - $ - $ 11,791 Phase 6-Close-Out $ - $ 29.280 $ - $ 29.260 $ $ - $ Phase 7-Contingency $ 436.600 $ 1,000,000 $ - $ 1.000.000 ', $ $ - $ PROJECT TOTAL $ 2,619.800 $ 7,694,000 $ - $ 7,694,000 -`d $ 989,509 $ - $ 969.509 $ 1.090.731 1 113% Reimbursable Costs PROJECTNET 1 $ 2.619.800 $ 7,694,000 1 $ - $ 7.694.000 ',; $ 969,509 1 $ - $ 969,509 1 $ 1,090,731 113% PSAIContracl Desi nPSA $ 231,000 1 $ 586.000 1 $ - $ 586.000 T $ 581,786 $ - $ 581786 1 $ 530.000 91% Construction Contract $ 1,554.000 1 $ 1J22,476 It - $ 1.722.476 $ - $ - $ - $ EDMS MMM24 BUDGET INFORMATION TABLE CONTRACT/JOB NO. BUDGET FUNDS FUNDS AUTH'D THIS PROPOSED ESTIMATED ESTIMATED PROJECTITASK IN DISTRICT TOTAL (ADOPTED BY AUTHORIZED TO AUTHORIZED EXPENDITURE TO COMPLETE TO CORF) DATE NO.7 CIP REQUEST AUTHORIZED DATE DATE(%) BUDGET FUNDS CONSULTANT #DIVIO! STAFF #DIV101 CONTRACTOR #DIV/01 #DIV/01 #DIV/0! #DIV/O! #DIV/O! #DIV/O! #DIV/01 TOTAL $ $ $ $ $ - $ #DIV/O! H1wp.dWWnglengVlem 18.SWEPI LP-AH 1 LICENSE FOR ACCESS PURPOSES FOR VALUABLE CONSIDERATION,the receipt and sufficiency of which is hereby acknowledged,SWEPT LP,a Delaware Limited Partnership("Owner").does hereby grant and convey onto Orange County Sanitation District,(the"Licensee")the following temporary licenses to that certain real property,("Property")owned by Owner and depicted on Exhibil"A"attached hereto and made a part hereof,and located in the City of Brea and the County of Orange,State of California: 1. A non-exclusive temporary license for the purposes of it boring,trenching,and otherwise gathering gcotechnical data ii)conducting lard surveys and iii)performing biological surveys pertaining to the Property and to Licensee's adjacent land(collectively the"Project"). All operations under this License shall be conducted in accordance with plans and specifications approved in advance by Owner's Representative and in compliance with all regulations, ordinances and specifications applicable thereto at Licensee's sole cost. This license shall continue in effect until such time as Licensee has completed the Project or for a period of 90 days from the date hereof,whichever occurs first, at which time it shall immediately and automatically terminate. 2.The rights of ingress,egress,and access in,over,across and through such portions of Owner's adjacent property as may be designated by Owner's Representative and which are reasonably necessary to the exercise by the Licensee of the rights and easements herein granted.At least 48 hours prim to entering the Property,Licensee shall notify Jeff Maisch("Owner's Representative'),by phone at(714)577-8258 and by fax at(714)577-9149. Licensee shall use best efforts to ensure that the access gate remains locked shut at all times after Licensee's vehicles have entered or exited the Owner's property. 3. Licensee shall require any subcontractor performing operations onsite to obtain and maintain comprehensive public liability and property damage insurance covering such operations with the following minimum limits: Employer's Liability $1.000.000 for each occurrence Business Automobile Liability: $1,000,000 for each occurrence Commercial General Liability: $2.000.000 for each occurrence Licensee shall furnish evidence of the above insurances to Owner prior to occupancy,however the extent of Licensee's liability is not limited to thou minimum limits herein above specified. All policies of insurance shall be written with companies satisfactory to S WEPI LP;shall name S WEPI LP and Am Energy LLC as additional insureds and provide that the insurance therein is primary and not in excess of or contributory with any other insurance;shall be issued by a company authorized to do business in the State of California;shall cover all claims that Licensee may have against Owner,its parent companies and affiliates;and shall contain a provision providing that such insurance shall nor be canceled without thirty(30)days prior written notice to Owner. Licensee shall furnish Owner,upon request at any time,certificates by its insurers that insurance complying with this section is in effect Additionally.Licensee shall at all times maintain workers compensation insurance complying with the laws of California and providing for a waiver of subrogation in favor of SWEPI LP and Am Energy LLC. 4. Licensee shall at all times indemnify,defend and hold harmless Owner,its affiliates,joint venture partners and proved and subsidiary companies.and their respective employees,agents,directors and officers,from and against any and all claims,alleged claims,demands,damage to property,injury and death to persons,causes of action, liabilities,cost and expense of every nature,including reasonable attorneys'fees.which Owner may sustain or incur arising out of or in my way connected with the presence of Licensee,its employees,agents and contractors upon Owner's properly or any portion thereof,or any of their respective acts,operations or omissions thereon for the project. 5.Licensee shall,at its sole cost and expense,timely secure all permits,licenses and variances required by public authorities in connection with the exercise of its rights and the performance of its obligations hereunder. Licensee and Licensee's subcontractors shall freely consult with Owner at all times during collection,evaluation and dissemination of data such that Owner's Representative is kept apprised on a current and ongoing basis of the activities, results and reports pertaining to the Project. Except as otherwise required by law and geotechnicallenvironmenml information provided to prospective contractors,Licensee shall not release such reports to outside agencies without first obtaining the Owner's written approval. Additionally,Licensee shall provide Owner with a copy of all final reports pertaining to the Project free of charge within 10 days of receipt by Licensee. The obligations of this paragraph 5 shall survive the termination of this License. 6. Licensee shall exercise commercially reasonable efforts to minimize interference with Owner's use and enjoyment of the Property and to promptly repair,at its sole cost,risk and expense,any damage arising from the exercise of the rights herein granted. Licensee shall not conduct any clearing or landscaping operations on the Owner's property without first obtaining the Owma s written approval. 7.Owner reserves the right at any time and from time to time to observe Licensee's operations on the Property and to make such additional requirements as Owner deems necessary to protect Owner's property. Licensee agrees to comply with any such request and to ensure the observance of such requirements by all of Licensee's employees,agents, and other persons permitted by Licensee to be on the Property. In the event that Licensee fails to comply with any request of Owner.Owner may immediately halt Licensee's operation,prohibit Licensee from entering the Property and, at its sole option,may immediately terminate this License. 8. The benefits and burdens of the rights and covenants set forth herein shall be binding upon the successors and assigns of the parties hereto,provided that the rights herein granted shall be not be assigned by Licensee without the prior written consent of the Owner. The execution of this license shall not be construed to create an obligation by either Owner or Licensee to enter into additional agreements or to proceed with the insmllation of any permanent facilities. 9. The rights granted herein are subject to all easements,rights and encumbrances of record prior to or concurrent with the dam hereof. IN WITNESS WHEREOF,this instrument is duly executed this_day of May,2006. OWNER: LICENSEE: SWEPT LP ORANGE COUNTY SANITATION DISTRICT By: By Chair,Board of Directors Its: Attorney-fin Fact By Penny Kyle,Board Secretary APPROVED AS TO FORM: BRADLEY R. HOGIN, GENERAL COUNSEL By - 2 - David Kendig .,. -3- EXHIBIT "A" Property Description The"Property"is defined as all real property owned or controlled by SWEPI LP lying within one hundred 150 feet of the line identified as the"Proposed Alignment'on that certain drawing of the Carbon Canyon Sewer Pipeline dated November 4,2002 prepared by RBF Consulting. -4 - BOARD OF DIRECTORS Mee gDate T9Bd. Dir. OS/29/Oof6 i AGENDA REPORT Rem Number Rem Number 19 Orange County Sanitation District FROM: David Ludwin, Director of Engineering Originator: Adam Nazaroff, Associate Engineer III SUBJECT: OUT OF SERVICE AREA SEWER SERVICE AGREEMENT FOR THE AERA MASTER PLANNED COMMUNITY GENERAL MANAGER'S RECOMMENDATION Approve a Three Party Out-of-Service Area Sewer Service Agreement for the Aera Master Planned Community with Aera Energy and Rowland Water District in a form approved by General Counsel. SUMMARY • The proposed 3,000 acre AERA Master Planned Community (AMPC) project site lies within unincorporated Los Angeles and Orange Counties. Approximately 90 percent of the AMPC is located within Los Angeles County. The AMPC will create 3,600 residential units, public parks, a golf course, and open space preserve within their site. The AMPC is adjacent to the communities of Rowland Heights, La Habra Heights, Diamond Bar, La Habra, and Brea. • The Orange County Sanitation District (Sanitation District) staff must prepare an Out of Service Area Sewer Service Agreement (Agreement)for the Los Angeles County portion of the AMPC, per OCSD Resolution No. 99-05. • The Sanitation District staff has determined that sewer capacity exists to serve the AMPC. The developer will need to construct facilities to connect the AMPC to either the City of Brea or La Habra's systems, or to the Sanitation District's Carbon Canyon Dam Trunk or Imperial Highway Trunks. • Rowland Water District will provide local sewer and water service to the AMPC. The Rowland Water District's Board of Directors has approved the form of this Agreement in April 2006. PRIOR COMMITTEE/BOARD ACTIONS May 2005 — Certification of the Final Environmental Impact Report for Implementation of the Carbon Canyon Dam Sewer Pipeline Project, Contract No. 2-24-1. November 2005—Steering Committee provided direction on agreement preparation. The direction specifically directed staff to amend OCSD Ordinance 21 regarding certain exclusions that AERA is requesting for annexation fees. R`CegNa da• Agmda Rea $a Bm, MR at Fp flepw1aW506Wem 19,Wtl 4e Sw.e,PBmlEx Rcvi. W111 b Page 1 April 2006— FAHR Committee and OCSD Board of Directors approved the first reading of the Ordinance 21 Amendment. PROJECT/CONTRACT COST SUMMARY None BUDGETIMPACT ❑ This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ® Not applicable (information item) ADDITIONAL INFORMATION The proposed AMPC is in both unincorporated Orange County and Los Angeles County. The Orange County portion of this project is within the Sanitation District Service Area Boundaries and does not require any Board of Directors (Board) action for service. The Los Angeles County portion of the AMPC is not currently part of any sewering agency that can provide regional sewage collection and treatment. However, this area is included within an area eligible for the Sanitation District regional sewer service via OCSD Resolution 99-05. OCSD Resolution 99-05 identifies four conditions that the AMPC meets including: • Surface water from the territory would naturally drain into Orange County. • The Sanitation District member agency affected by a proposed service agreement, or the development related thereto, must be consulted, and its input considered, prior to the proposed Agreement being finalized and presented to the Board. A draft of the Agreement along with a copy of Resolution 99-05 has been sent to Tony Olmos, Director of Engineering at the City of Brea, and Pat McCarron, the Director of Public Works at the City of La Habra. • A local government agency executes the Agreement providing for sewerage services and for payment of one-time fees equivalent to annexation fees, connection fees, and an administrative charge, and annual fees equivalent to sewer serviced fees, property taxes, and an administrative charge, and any other terms and conditions, all as established by the Board at the time of approval, or as amended from time-to-time, for said service. At this time, Roland Water District is to be designated as the local sewering agency. • The local land use, sewer, or water authority agrees to require connections to the Sanitation District or other sewage treatment systems, and discourage on-site disposal systems. •Wemr9�' d A .nde Rev'I..B.vN P9anJa d Ppe,W Relv,e'OSMlllem 19.0.c S .Sever'g Orc R«9„ 9V1 Page Also, the goal of OCSD Resolution 99-05 is to avoid septic tanks in developments that may have water quality impacts to Orange County. This Agreement as proposed would protect Orange County from the installation of septic tanks now and in the future, for both the developed and open space areas. The Agreement designates when and how fees will be paid to the Sanitation District. These fees include Equivalent Annexation Fees, Capital Facilities Capacity Charges, and Annual Sewer Service Charges. Rowland Water District will collect these fees on the Sanitation District's behalf. The Equivalent Annexation fees are based on Ordinance No. OCSD-21. The AMPC is somewhat unique in that it is comprised of a significant amount of land that will be dedicated to a golf course and open spaces (approximately 1,600 acres). The Agreement allows areas dedicated to open space preserves, water quality reservoirs, and playable areas of golf courses to be exempt from the annexation fee. These exemptions were considered by the Sanitation District's Steering Committee in November 2005. Direction was given to staff to amend Ordinance 21 in order to allow these exclusions. This ordinance amendment is on the agenda for the same meeting as this item and approval of this Agreement is contingent upon the ordinance amendment. The Agreement will be contingent upon all approvals by Los Angeles and Orange County Local Agency Forming Commissions. ALTERNATIVES None CEQA FINDINGS AERA Energy will be responsible for all other CEQA related work for the Project. The Board previously reviewed the potential for service within the Abandonment of the Carbon Canyon Pumping Station Project, Contract No. 2-24-1, Mitigated Negative Declaration, certified by the Board in accordance to the California Environmental Quality Act (CEQA). ATTACHMENTS 1. Service Area and Project Site Map 2. Specific Map of Project Site AN:sa:gc H'.1tgloim!Agenda Draft ReportsVcinl 6oerdsWR for AERA A PC Oe of Service Area Seger Service Agreement_05240G.dm H:Wep,�Pp-I R¢y 92D]6 qua P9e'NeblybMa RerybWA6NBm 1961.QSanre 5tvv PPK_bc Rev- N117M Page 3 oanry c0 �^♦r sgro a La Habra Be' ------- i P�j'Y rJ.j OCOG oJ2,� f•� ulle etc .Yorba Linda `♦.� ` Placentia '\ Bu'ena—�k� ,y!'e A 'P't e' L a' Palma ph i C �••, �../• kf v it �a %% � mow•%• Op •., OF'G A\na\ aim •D. • '�• r lCypress Villa Park`•, cF' f l� ♦. BOG LT Orange (L'oa A am l,tos,n •� •2 t Garden 6 ova r! ! ,,.Seal Beach i,� Santa Ana Wss71;ln ter Tustin unt)'ngton Beac Fountain Valley 0 !'ocijic ` f" °fium'I° v4 Ocertn costa Mesa % �.,♦••� / Irvine a� Plant3 a I ' f, 'New port Beath 1 Project Area ,f' N WE S AERA Master Planed Community Proposed Project Site Legend ORANGE COUNTY SANITATION DISTRICT — Dsma saunas y Service Area and Project Site Freewera Geographic Information Systems, Engineering sowce. m 0 6 10 OCSD GIS Data.Thomas BrethM 2002, Miles created:04/2006 p ,. 'fir " 6 r a Y n �,, '� ` �i I _ M� �� h� t�•��� °^� P y �'�' 6c. "+ � � n . 3�, Sfi. _. i "�I if 'T a �} � :: MZ� f` �'x .Y � gill U 1 �'.�j i!�r..4 .'�1 r l �F,. +��"`., � � y' '1 3 i Rx �J per: 1 ! .,. `I � 'rY " �yC \ , �� ✓�� �I i �" ,. s SY b "'YZ !w t1� ,�N h � e :y �r `�a1y �m,.kir�.. W ``�y a �1i�� MN '�' �' � ,r � � ��� �� n � ! � 1 �. 1. ' ,... �"d§, .. iA � 4 �,, c �: . , < �r ti t, .. . �y` �� � �� � .!� o r ♦ A �� 'A n { � o � 1 . {.,. �� ` � 1 i �� ,` -.,. i A.(>a� A� .L'+� �� i ..i X.�. `�� � A S:. BOARD OF DIRECTORS Meeting Dare To ad.of Dlr. 05/24/06 AGENDA REPORT Item Number IOEn 2NUMber 0 zo Orange County Sanitation District ®Collect one Fac FROM: David Ludwin, Director of Engineering Originator: Ann Tobin, Engineer SUBJECT: MACARTHUR PUMP STATION REHABILITATION PROJECT, CONTRACT NO. 7-49 GENERAL MANAGER'S RECOMMENDATION (1) Adopt Resolution No. OCSD06-12, Certifying the Initial Study/Negative Declaration for the MacArthur Pump Station Rehabilitation Project, Contract No. 7-49, prepared by CH2M Hill; and (2) Approve the MacArthur Pump Station Rehabilitation Project, Contract No. 7-49. SUMMARY • Pursuant to the provisions of the California Environmental Quality Act (CEQA), this proposed project requires passage of a Resolution by the Orange County Sanitation District's (Sanitation District) Board certifying compliance with the provisions of CEQA for the project, and indicating the Board's approval to proceed with the project. • The MacArthur Pump Station Rehabilitation Project (Project), Contract No. 7-49, provides for improvements to the existing facility to provide reliable sewer service. The proposed Project would retrofit the existing structure, replace existing pumps, and provide new electrical equipment at the end of its useful life. • The pump station is adjacent to 4141 MacArthur Boulevard in a commercial area in the City of Newport Beach. • The Initial Study/Negative Declaration (IS/ND) was circulated for a 30-day public review in March 2006. The review period closed on April 12, 2006. Written comments were received from the Department of Toxic Substances Control (DTSC) about potential contamination and release of hazardous wastes/substances at the project site. The Sanitation District staff responded to DTSC comments in April 2006. PRIOR COMMITTEE/BOARD ACTIONS The IS/ND for the Project was presented to the Planning, Design, and Construction (PDC) Committee on May 4, 2006 as an informational item. Page 1 PROJECT/CONTRACT COST SUMMARY N/A BUDGETIMPACT ® This Rem has been budgeted. (Line item: FY 05-06 Section 8 - Page 40) ❑ This item has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION The proposed Project is located in a commercial area adjacent to 4141 MacArthur Boulevard in Newport Beach (Attachment 1). The MacArthur Pump Station receives flow from the local tributary sewer system and discharges to the Von Kansan Trunk. The proposed Project would retrofit the existing structure, replace existing pumps, and provide new electrical equipment and a new vault. The operating capacity of the new facility would accommodate existing and projected future flows and add emergency standby capacity. The proposed architectural, structural, mechanical, electrical and instrumentation, and control improvements would bring the facility into compliance with Sanitation District standards, and local, state, and national codes. Attachment 2 shows the existing pump station. Pursuant to the provisions of the CEQA, the Sanitation District staff prepared an Initial Study and assessment of passible adverse impacts of the proposed Project, and determined that the proposed Project would not have a significant impact on the environment. Consequently, a Negative Declaration was prepared in accordance with the provisions of CEQA. The IS/ND was circulated for public review in March 2006. The review period closed April 12, 2006. Written comments received were from the DTSC about potential contamination and release of hazardous wastes/substances at the project site. Sanitation District staff responded to DTSC comments in April 2006 (Attachment 3). As prescribed in the Sanitation District's construction specifications and the Sanitation District's health and safety policies, the Sanitation District and its contractors will comply with all applicable regulatory requirements for the assessment, testing, remediation, removal, and disposal of hazardous wastes/materials. The Sanitation District staff has met with the City of Newport Beach staff to present the project, as well as with Darryl Withrow, Vice President of Operations, Glidewell Laboratories located in the adjacent property at 4141 MacArthur Boulevard. Page 2 ALTERNATIVES Without rehabilitation, the MacArthur Pump Station will not provide reliable service. No alternatives to the proposed rehabilitation have been considered by the Sanitation District staff. CEQA FINDINGS The Sanitation District staff has determined that the proposed Project will not have a significant impact on the environment. In accordance with CEQA, the Board is required to certify the IS/ND, if the Board decides to approve the MacArthur Pump Station Rehabilitation Project. A resolution certifying the IS/ND and approving the project is attached as Attachment 4. ATTACHMENTS 1. Figure 1-Service Area and Project Site 2. Figure 2-Existing Conditions 3. Response to DTSC Comments 4. Resolution No. OCSD 06-12 AT:sa H.WglobaMgenda Draft RepcftUoinl BoardsW 48 Revised MacArthur Board AR-M406.doc Page 3 ] La MabrP ae Br - - -- i r Full vn I -- rsS'< lsrf ,. rorba Linda °\ �\ iiPlocenNo \\ �` N �•v Lorr Patine `•"; 'v< may_ �ti r••i , 4'a •f { CYPraaahslm W v. p✓ {� VIIIetPork �. •• f� \•• 6f anion Orange % yyy,i"4p�• r esfminsf a: l _ nna i J �PafiP � •••t Faunrain rPlisr � \..•••�..� Nrrin9f on Beam \, .Costa M v"\ <I • J•1`Ni e�.Perr Beach p \ P ¢ 1 Project Site j B N pa W*E S Legend ��DrslriU 9ouMary P'a® a s FIGURE 1 irojec1511e Service Area and Project Site 0 5 tp MacArthur Pump Station Rehabilitation Project Miles Orange County Sanitation District SC01]5E6).PS.WII Fbumisaskn2W 10 f fin^ b Existing Conditions at the Proposed Project Site Looking southwest at the existing location of the proposed Project site—MacArthur Pump Station Newport Beach,California FIGURE 2 Existing Conditions MacAdhur Pump Station Rehabilitation Project Orange County Sanitation District J Responses to California Department of Toxic Substances Letter dated April 7,2006 Comment 1 The comment stares that the Negative Declaration should identify the current or historic uses at the project site that may have resulted in a release of hazardous wastes/substances. As stated on page 9 in the Environmental Checklist Form section of the document,the proposed Project site is designated as Administrative,Professional,Financial,Commercial under the City of Newport Beach General Plan. The area was built in the 1960's. Prior to commercial development the area consisted of undeveloped vacant land. Under the Sanitation District's standard construction specifications, the Sanitation District and its contractors will comply with all applicable regulatory requirements for the assessment,testing, remediation,removal and disposal of hazardous wastes/materials. As stated on page 4 of the Project Description,excavation spoils and all solid waste produced during construction activities would be disposed of at a properly pemtitted facility in accordance with federal and state laws. A federal and state certified/licensed hazardous waste hauler would ensure proper testing of solid waste and disposal in accordance with federal and state laws. Comment 2 The comment states that the Negative Declaration should identify known or potentially contaminated sites within the proposed Project area and,for all identified sites,evaluate whether conditions at the site would pose a threat to human health or the environment. A Geotechnical Evaluation was prepared for the Project site by Diaz-Yourman&Associates in December 2005.Soil samples from the Project site were bested for the presence of total recoverable petroleum hydrocarbons(TRPH),volatile organics,and metals.The results of the sample besting were as follows:TRPH results were inconclusive due to sample matrix interference;all volatile organics were at levels of non detect;and total metal results were well below the total threshold limit concentration(TTLC). The DTSC Hazardous Waste and Substances List(Cortese List) was evaluated and confirmed there are no known significant hazardous materials sites or mitigation sites within the proposed Project site. Comment 3 The comment states that an investigation should be conducted for the presence of lead- based paints or products,mercury and asbestos containing materials(ACW s)and that any contaminants should be remediated in compliance with California environmental regulations and policies. Under the Sanitation District's standard construction specifications, the Sanitation District and its contractors will comply with all applicable regulatory requirements for the assessment, testing,remediation,removal and disposal of hazardous washes/materials. As stated on page 4 of the Project Description,excavation spoils and all solid waste produced during construction activities would be disposed of at a properly permitted facility in accordance with federal and state laws. A federal and state certified/licensed hazardous t rA1BILC COA0.ff Nf5 N0 aESPoNSE 5 a waste hauler would ensure proper testing of solid waste and disposal in accordance with federal and state laws. Comment 4 The comment states that if during construction/demolition of the project soil and/or groundwater contamination is suspected,construction/demolition in the area should cease and appropriate health and safety procedures should be implemented. The comment also states that if it is determined that contaminated soil and/or groundwater exists, the Negative Declaration should identify how any required investigation and/or remediation would be conducted,and the appropriate government agency to provide regulatory oversight. Comment noted. If during construction/demolition of the project soil and/or groundwater contamination is suspected,construction/demolition in the area would cease and appropriate health and safety procedures would be implemented. Additionally, appropriate government agencies would be contacted for guidance and regulatory oversight and,at a minimum,would include California Department of Toxic Substances Control, Santa Ana Regional Water Quality Control Board,and the United States Environmenbal protection Agency. Comment 5 The comment states that if weed abatement occurred,onsite soils may contain pesticide and agricultural chemical residue. The comment also states that proper remedial actions,if necessary,should be conducted at the site prior to construction of the project Comment noted. The facility is covered by concrete and asphalt with no landscaping and does not require weed abatement. Landscaping does exist outside of the facility footprint However, the site was tested for volatile organics and the results demonstrated that all volatile organics were at levels of non detect. eonas:care 10 2 1 RESOLUTION NO. OCSD 06-12 ADOPTING THE INITIAL STUDY/NEGATIVE DECLARATION FOR THE MACARTHUR PUMP STATION REHABILITATION PROJECT, CONTRACT NO.7-49; AND APPROVING THE MACARTHUR PUMP STATION REHABILITATION PROJECT,CONTRACT NO.7-49. WHEREAS,the Board of Directors of the Orange County Sanitation District(Sanitation District),("Board"),is considering the approval of the MacArthur Pump Station Rehabilitation Project("Project"),Contract No. 7-49 to design,rehabilitate and operate the MacArthur Pump Station;and WHEREAS,the existing MacArthur Pump Station located in Newport Beach requires rehabilitation and upgrades to provide reliable service;and, WHEREAS,because the Sanitation District will be undertaking the Project,the Sanitation District is the lead agency for the Project pursuant to the California Environmental Quality Act of 1970("CEQA")(Public Resources Code§21000 et.seq.),as amended,and the CEQA Guidelines("CEQA Guidelines")(14 Cal.Code Regs. § 15000 et.seq.);and, WHEREAS,pursuant to the CEQA and the CEQA Guidelines,the Sanitation District staff prepared an Initial Study,which concluded that the proposed Project would not have any potentially significant impacts on the environment; and, WHEREAS,pursuant to CEQA and the CEQA Guidelines,the Sanitation District staff prepared a Negative Declaration;and, WHEREAS,the Sanitation District received comments from the Department of Toxic Substances Control on the Initial Study/Negative Declaration during the public review period and has responded to concerns about potential contamination and release of hazardous wastes/substances, NOW,THEREFORE,the Board hereby resolves,determines and finds that: 1. The Initial Study/Negative Declaration has been completed in compliance with CEQA and the CEQA Guidelines;and, 2. Based on the whole record before it(including the Initial Study/Negative Declaration and any oral and written comments received),there is no substantial evidence that the project will have a significant effect on the environment;and, 3. The Board determines that the Initial Study/Negative Declaration reflects the Sanitation District's independent judgment and analysis: and, 4. The Board approves the MacArthur Pump Station Rehabilitation Project,Contract No. 7-49; and RFSOLIRION tl, 5. The Board specifies that the record of proceedings on which the Board's decision is based is located at Sanitation District administrative offices at 10844 Ellis Avenue, Fountain Valley,Califomia,92708. The custodian of the record of proceedings is the the Sanitation District Board Secretary. Project files are located in the Sanitation District Engineering Planning and Design Division. PASSED AND ADOPTED at a regular meeting held May 24,2006. Chair ATTEST: Board Secretary EDMS No.003807949 BOARD OF DIRECTORS Meeting Date To ad.of Din s/zaro6 AGENDA REPORT IemNumbe IemNomber n Orange County Sanitation District Collections Facilities FROM: David A. Ludwin, Director of Engineering Originator: David May, CIP Project Manager SUBJECT: BUSHARD TRUNK SEWER REHABILITATION, JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION (1) Approve a progress payment to Ameron International, Inc. for$75,169 in accordance with the contract terms for Bushard Trunk Sewer Rehabilitation Pipe Procurement, Job No. 1-2-4P; and (2)Authorize the General Manager or his designee to approve all subsequent invoices submitted by Ameron International, Inc. for payment under Job No. I-2-4P. SUMMARY • The Orange County Sanitation District (Sanitation District) is directly procuring the remaining pipe needed for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4. Pipe is being purchased from Ameron International, Inc. (Ameron) via Job No. I-2-4P, Bushard Trunk Sewer Pipe Procurement. The contract requires that the Board of Directors approve all progress payments made under this contract. The contract also requires that payments be made up to 30 days after an invoice is submitted. • Staff is requesting approval for the first progress payment to Ameron for $75,169. Staff is also requesting that the Board of Directors delegate approval and payment of all subsequent progress payments to the General Manager or his designee. This approach will allow for more time to review the progress payments and to process payments. PRIOR COMMITTEE/BOARD ACTIONS The Board of Directors awarded a material procurement contract to Ameron on September 28, 2005 for an amount not to exceed 7,699,777. There have been no change orders to the contract to date. PROJECT/CONTRACT COST SUMMARY There have been no authorized changes to the original contract amount of$7,699,777. The funds for this procurement have been budgeted and authorized for use. See attached Budget Information Table. aa..-. 01 o M Page 1 BUDGETIMPACT •• ® This item has been budgeted. (Line item: 2005-06 Budget Book, Page 8-47) , ❑ This item has been budgeted, but there are insufficient funds. ❑ This Rem has not been budgeted. ❑ Not applicable (information Rem) Funds for this contract have been budgeted under the Collections Facilities category. Approval to make payment requested is the first expenditure of funds the Board of Directors has budgeted and authorized. See attached Budget Information Table. ADDITIONAL INFORMATION As part of the Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, project, a settlement agreement was created. The settlement agreement resulted in the Sanitation District procuring and delivering remaining pipe needed for the project. A pipe procurement contract was bid and awarded to Ameron to fabricate and deliver pipe to the job site. The contract is titled Bushard Trunk Sewer Pipe Procurement, Contract No. 1-2-4P. Staff is bringing the first invoice from Ameron to the Board for approval as required in the contract. Pipe fabrication is proceeding at a rapid pace and staff expects monthly invoices through the May 2007. Staff is requesting that the General Manager or his designee be authorized to approve all subsequent invoices for payment submitted by Ameron. Monthly invoices will require quick action by staff to process and place on Board agendas. The contract requires the Sanitation District to make payment to Ameron within 30 days of a submitted invoice. After approval, time is required to process payment and send payment to Ameron. Staff will continue to evaluate the invoices and basis for payment as the contract requires. If this request is approved, the General Manager or his designee will approve all subsequent invoices. This approach will allow more time for invoice review and approval. ALTERNATIVES The Board of Directors approves the first Ameron progress payment, and delegates authority for all subsequent progress payment approvals to staff. This allows more time to review and process the payment. Continue processing each progress payment each month for approval by the Board of Directors. This alternative allows less time to review and process the payments. n«o.a 01�me Page 2 CEQA FINDINGS , The Program Environmental Impact Report (EIR) was certified in 1999 by the Board of Directors. Addendum No. 8 to the program EIR was certified at the February 2006 Board meeting. ATTACHMENTS 1. Budget Information Table 2. Copy of Contract General Requirements Section 22 3. Ameron Invoice DM:eh:kf HAdept agendaSoard Agenda Repurts,2oo8 Board Agenda&Agenda Reportsl05WMtem 21.1-24P.dm r.:rw:o,mws Page 3 BUDGET INFORMATION TABLE Bushard Trunk Sewer Rehabilitation JOB NO.1-2-4 PROPOSED ORIGINAL RG2 'CURRENT PROPOSED FUNDS TNIS E9TIMATEO ESTIMATED 'BUDGET PROPOSED TOTAL PROJECT/PHASE AUTUDGair PROJECT BUDGET AUTNDAM TO AUTNORRSTION E%TO DATE UPENDED TO . INCREASE AUTHORIZATION .I N O DATE DATEI%).'.,:.'. BUDGET BUDGET BUDGET DATE REQUEST T i )DECREASE Pnaeai-Proecl Develoment $ 71000 S 7/000 $ 74,000 $ 74.000 $ 74,000 $ 74,649 101-A Ptuee 2-P,0mine D.aI n 3 WOOD $ 10000 f 10000 $ 10000 S 10000 $ 9149 91% I Phase 3-Design 8 2.IN.000 3 2168000 $ 3185000 $ 2,169000 S 2108000 $ 2175812 loft PMae4-Coomeflon $ 45142000 S 89142000 S 58142000 3 53934ON 11 5304064 S 2009140E 1 49% PMN 5-Comnd9 Dfng S 41SOOD $ 415000 3 110000 $ 326.000 $ 325000 $ 251509 ii% PMw6-Cloae-Out S 72.000 $ nWO S ]2000 $ 40000 S 40 DOG $ 1957 4% Phase T-Condo an S 2068000 $ 2698.000 E 2,998000 $ 2,090000 $ 2088000 0% PROJECTTOTAL 3 53,58OODO $ 63,580,000 $ - E 03,580,000 $ 0,250.054 $ - S 69,250.054 S 28,5N.160 48% RelmWrmEle Coela I I I I I I I S 00795 PROJECT NET 1 $ 53.580,000 1 $ 53,580,000 $ - $ 0 .580.000 S E9.250,054 $ - 3 59,250.051 1 $ 28,051,975 48% PSNConNed Deel nPEA-B e S 845300 $ 2407025 3 240i110 $ 248782E 3 2407825 $ 2329125 N% Oea19n PSA 1-24A-Mal.. Pima S - $ 223045 f 223045 $ 223045 S 22301E $ )92B) SB% Gael nPEA-A MD Grover $ 15300D E 153000 $ 163000 $ BILOW 59% CM PSA-Eerlll Teoh $ 2052593 $ 2.052.593 $ 2062593 $ 20525% S 0% PI sPumhose-$2JP-ADmimn S S 7999 T)) S 7099))7 $ 7909111 i$f$Ai 70110 1% Conatruadon Contract-Rados S 30,NO 934 S 32284130 S 32264,139 $ 3220/139 $ 32284139 $ 1824)]98 609E c0nsUud0n Centred-SuWlo S 1119100p S 11191 s00 b 111915L. s 11191600 s 0% SouN.CaRomia Edleon S - S ]50000 $ 950000 $ 390000 f ]00000 f 0% EDMS:cO5MIB2]O L. BUDGET INFORMATION TABLE Bushard Trunk Sewer Rehabilitation JOB NO. 1-2-4 PROPOSED ORIGINAL CURRENT PROPOSED FUNDS TNIS ESTIMATED ESTIMATED 6UDGET PROPOSED TOTAL iNtwEGTmxASE AUTNORi2ED -P-RWEC14 RIC REVISED gUTNOROEDTO AUTHOROATION AUTHORIZATION EllPENORIIRE EXPENDED To REASE : BUDGET BUDGET BUDGET ' DATE REQUEST TO DATE' DATE(.6).:. y IDE'DREA9E Phase i-P ect Devel mem S 74.000 $ 74.000 S 74000 $ 74,000 $ 74poo $ 74,649 101% Phase 2-Prefinsireq Design E 10,000 $ 10.000 S 10,000 $ 10.000 $ 10,000 $ 9.10 91% Phase 3-Deal n $ 2 OB= $ 2158.000 $ 2100.000 $ 2155.000 $ 2,185,000 $ 2.175.6E 100% Mass 4-Consiruction E 48,142,000 $ 58.142,000 S 51 8 53,984,054 $ 59934054 $ 28081405 48% Phase 5-Commissioning $ 418000 $ 416000 E 118,000 E 328000 Is 328.000 $ 251 9 Tr% Phesee-Clo w $ 72.000 E 72,000 E T2.000 S 40,000 $ 40.000 S IA57 4% Phase l-Con ens S 2690.000 $ 2690000 E 2.890000 $ 2.860,000 $ 2.898,000 0% PROJECT TOTAL E 53,580.000 $ 53,550,000 E - $ 63.580.000 $ 591250.054 E - S SB,350.054 S 28,594.180 43% Relmbanuble CPsb is (80.795) PROJECTNET 8 59,560,000 $ 63.560.000 $ - E 63,590,000 S W.M.054 $ - $ 99,250,054 1 $ 28.654.975 48% PSAICOn4aet Design PEA-Se $ 845.300 IS 2.467,825 E 2,467,825 $ 2.467A25 $ 2487825 E 2.325.125 94% Design PSA I-24A-Mattem Pime $ - $ 229,045 9 223A45 $ 223,045 $ 223,045 $ T9 T EB% Design PEA-AiWd G. $ 153000 E 153.000 $ 153000 $ $5000 55% CM PSA-EaM Tech $ 2.052593 $ 2.052.599 $ 2052993 $ 2052593 E 0% PI ePurchw-LE P-Amenn S $ 1611977r $ 7,699771 :.' $ 7,09,M E ) $Bill E 7E170 1% Conshuctsm Centracl-Ra6es S 30260,934 $ 32204.139 S n2 .1311 $ 32.204.139 $ 32284,139 $ 16,247,998 50% ConaWc$on Contratt-Eubala is 11.191.500 S 11.181,500 E 11101900 E 0% 80ulhem Cellkmla Edi. $ - $ 35000e i 9W 000 fl. E 350000 $ 350000 E 0% EMS:00380940 thereof from any monies due or to become due the SUPPLIER, or to bring suit again! the SUPPLIER and SUPPLIER'S sureties for money damages sustained by the DISTRICT or for specific performance of the contractual obligations of the SUPPLIER. PAYMENT WORK 22. GENERAL Based on written estimates by the ENGINEER or on other evidence satisfactory to the General Manager, the General Manager will recommend to the Board of Directors, monthly progress payments for the actual pipe delivered and accepted will be made. Said progress payments will be based on an approved detailed breakdown of the Contract price, which shall be furnished by the SUPPLIER showing unit prices and quantities. The DISTRICT, or an acceptable dual escrow account agent, will retain ten percent (10%) of the amount of each such estimate and material cost until the final payment. The SUPPLIER will be responsible for the cost of pipe stored at facilities controlled by the SUPPLIER until delivery is made. The Contract requires pipe to be fabricated at a greater rate than required for delivery. Payment will not be made unN pipe is delivered. All costs for storage and advanced fabrication shall be in the bid prices. Payment will be made for delivered pipe upon receipt of an undisputed invoice. Payment will not be made for stored materials. The cost of storage and costs of pipe production prior to delivery shall be factored into the delivered pipe costs and reflected in the bid price. Storage requirements shall extend to 450 days after the notice to proceed. SUPPLIER shall not be required to store in excess of 3,000 feet of pipe. Payments are typically made within 60 days of receipt of a proper invoice. 23. EXTRA WORK(MODIFICATIONS TO CONTRACT, CHANGE ORDERS) A. General The DISTRICT reserves and shall have the right, when confronted with unpredicted conditions, emergencies, or unforeseen events, to revise the details of the contemplated Contract and have the SUPPLIER fabricate the pipe with such revisions as"Extra Work", when such Extra Work is considered by the DISTRICT to be vital. "Extra Work"is defined as additional pipe, or added fabrication requirements for which no basis for payment is prescribed; or that involving revisions of the details of the work in such manner as to render inequitable payment under items upon which the SUPPLIER bid The signing of the Contract by the SUPPLIER will be deemed to be an agreement on his part to perform Extra Work,as and when ordered by the ENGINEER. If required Extra Work results in delay to the time of completion, the SUPPLIER will be given an equivalent extension of time. The delay must be documented by the SUPPLIER B. Payment Extra work will be paid for at an amount agreed to by DISTRICT and SUPPLIER. No extra work shall be performed with out a written CHANGE ORDER. 24. INCREASE OR DECREASE IN WORK If any change causes an increase or decrease in the SUPPLIER'S cost or the time required to perform any part of the CONTRACT, whether or not changed by any order, the DISTRICT shall make an equitable adjustment and modify the CONTRACT in writing. In the case of defective Specifications for which the DISTRICT Is responsible, the equitable adjustment shall include any increase in costs the SUPPLIER reasonably incurred in attempting to comply with those defective Specifications. BUSHARD TRUNK SEWER PIPE PROCUREMENT DIVISION 01 1.2.4 P GENERAL REQUIREMENTS PAGE 10 JOb a7�c-,r r AtWATER TRANSMISSION GROUP rxVdlt ` AMENON INVOICE 1 log., e"ej REMIT-10: INVOICEk. ..... Tw •�V`,`� AMERON WATER TRANSMISSION GROUP "_ '- INVOICE DATE7E.....04-1404-14-06 •L V 10681 FOOTHILL BLVD. - SUITE 450 SALES ORDER 0....A22204 RANCHO CUCAMONGA, CA 91730 CUSTOMER RD#.....1.2-4-P I O]3s *06 909-944-4100 PAGE.............1 BILL TO: TERMS: NET 30 DAYS 10129 COUNTY SANITATION DISTRICTS OF GRAND PROJECT TITLE: 10944 ELLIS AVENUE BUSHARO TRUNK SEWER P. 0. BOX 8127 FOUNTAIN VLY, CA 92728-8127 SO BID PRODUCT DESCRIPTION VOW BILLING UNIT PRICE AWCUNT LI ITEM OUANTITY ___________________ _.____==__�a_._____________.______�__� SHIPPERS: 202262 202263 202281 202282 202283 202284 202285 1 1.OA 108" RCP 03501) N/300 DEGREE T-LOCK) FT 137.6 507.00DO 69,763.20 TAXABLE Received APR 18 2006 ACCounts Payable SALES AMOUNT........ 69.763.20 TAX AMOUNT AT 7.75D% 5,406.65 INVOICE AMOUNT...... 75,169.85 AMOUNT DUE.......... 75,169.85 'We hereby certify that these goods were Produced in compliance ui th all spiel¢able requirements of Sections 6, 7 and 12 of the Fair Labor Standards Act as ainentled and of regutaticns and orders of the United States Department of Laboi issued under Section 14 thereof." - � FAHR COMMITTEE MeeungDate To Bd.ofDir. 04/12/06 05/24/06 1 AGENDA REPORT Hem Nurnrt Item Number FAHR05-25 22 Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Mike White, Controller SUBJECT: ESTABLISHING SPECIFIED REVENUE AREAS GENERAL MANAGER'S RECOMMENDATION Adoption of Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02: a. Motion to read Ordinance No. OCSD-27 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) b. Motion to adopt Ordinance No. OCSD-27, An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Specified Revenue Areas within the District, and Repealing Ordinance No. OCSD-02. SUMMARY Ordinance No. OCSD-02 established specified Revenue Areas, Nos. 1, 2, 3, 5, 6, 7, 11, 13, and 14, within the District. Since the adoption of this ordinance, the Board has approved the consolidation of Revenue Areas No. 1, 2, 3, 5, 6, 7, 11, and 13 into on consolidated revenue area. Revenue Area 14 continues to be fully funded through existing contracts with the Irvine Ranch Water District and it is necessary to maintain separate accounting records in order to accurately charge them for operations, maintenance and capital improvements. Staff is now recommending that Ordinance No. OCSD-02 be repealed and replaced with Ordinance No. OCSD-27, establishing specified Revenue Areas to consist of the Consolidated Revenue Area and Revenue Area 14. PRIOR COMMITTEEIBOARD ACTIONS On April 26, 2000, the Board of Directors approved consolidation of Revenue Areas 1, 2, 3, 5, 6, 11 and 13 beginning with fiscal year 2000-01 into one Financially Consolidated Revenue Area because of the variance in rates and abilities to pay among the Revenue Areas, the previous consolidation of the individual Districts into one District, and a shift in our service paradigm to a regional focus and mission. The X'V ep,nOmEa EaaE RgmEa Remtl s2005 Bevtl Agentla 8 TgeMa RepmsNM9V,am f3.0.V. RenxO. OSIOGI03 Page 1 r consolidation of Revenue Areas simplified the bookkeeping and rate-setting practices for the District. Basically, this change combined the assets and liabilities for these ' seven Revenue Areas into one Revenue Area and allowed for the adoption of one financial plan, including one user fee rate. On November 20, 2002, the Board approved consolidation of Revenue Area 7 into the one Financially Consolidated District. The consolidation of Revenue Area 7 was delayed until this time because the Sanitation District and the Irvine Ranch Water District (IRWD) were in the process of transferring the former Sewer Maintenance District service area from RA7 to RA14 in order to establish a single agency as the provider of water and local sewer service, to simplify the public's contact with utility providers and to remove local sewer service from the OCSD responsibilities. This pending transfer of facilities, assets, liabilities and property taxes was the major reason that RA7 was not included in the financial plan and program consolidation of 2000. PROJECTICONTRACT COST SUMMARY Not applicable. 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) ATTACHMENTS Ordinance No. OCSD-27 H wq W.m`�ae pwa npmlam era p.a.a w.d A+e oansaewen uae n ax - oau.w Page 2 r ORDINANCE NO. OCSD-0 OCSD- AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING SPECIFIED REVENUE AREAS WITHIN THE DISTRICT . AND REPEALING_ ORDINANCE NO OCSD-02 WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-02. establishing nine (9) separate geographical revenue areas based on former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the Predecessor Districts), PUFSUaRt to the County SaRitation Distdi;t AGt (GalifgMia Health & Safety Code Sest ens 4700 at aw)w gy anYo of the ooarda of 9iFAntnrn of the Predecease. h*ntFi , n. In fin legislation eted by the Qal'fnFAa V State Leg slature n 1996, an applioation was submitted to the Orange County Lase! Districts iRte n l dit; t f Th single sanitation n nor all n mnnnn e application weswiwtaton diStFiet, known as the Orange County Sanitation Dist6st (the GaFFy an n the 4.n.aiens .,and b o ration of law, n ends to all of the Fights, title and ablioatians of the oredenaaan I);6tr:ntn. and, This Ordinance is presently in full force and effect: and WHEREAS, each of the nine individual Predecessor Districts, pursuant to applicable provisions of state law, previously established various fees and charges applicable to the users of the Districts wastewater collection, treatment, and disposal facilities system, and to certain properties within its respective jurisdictional boundaries. Said fees iasledeincluded sewer service user fees, connection charges, annexation fees, industrial source control permit fees and use charges, source control fees, administrative fees, non-compliance sampling fees, and miscellaneous charges. The various fees and charges within the respective jurisdictional boundaries of the nine individual Predecessor Districts, were established pursuant to the respective Ordinances of the individual Predecessor Districts, with the exception that certain of the fees and charges applicable to the properties within the jurisdictional boundaries of Predecessor District No. 14 were established by agreement between Predecessor District 14 and the Irvine Ranch Water District; and; Wn IEREAS in order to cootie a ton .:don n'tan. .. seFviGes within v 1 WHEREAS. Revenue Area No. 14 continues to be fully funded through existing contracts with the Irvine Ranch Water District and 4 is necessary to continue to maintain a separate accounting record to ensure proper charges and fees and WHEREAS, that the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21080(b)(8), and 14 California Code of Regulations Section 15273(a). NOW, THEREFORE, the Board of Directors of Orange County Sanitation Bist4etsDis r' does hereby ORDAIN: Section 1: That ninety separate geegraphisal-revenue areas are hereby established within the District, ^^d that the ^aa^.a^h'^ h^ ^dares of n ah cn^.:.. .^..^., a aFean shallbe Gee)deF;siye with the Farm^.tiye '...isdisti..na the 'sdiGtie al ha .ndanes of then ndi,:d al p.adaaassa. Dist:ats ..the legal deSGFiPtiGR6 of the jurisdictional boundaries Of the RiRe speGial Fevenue AFPaS e.stah"sh^d hp.eunde, e. n Ale with the. Bawd Sea.etaay of the ninbiGt RttA .he.d hPFPt. ^n Fxh'hits n Q !` _n C_ C (_ 4 and 1 and 'n _ _Fated_ hn.e n by refereace to be known as "RevenueVArea No. 14" and "Consolidated Revenue Area" Consolidated Revenue Area is a consolidation of former Revenue Area Nos. 1. 2. 3. 5. 6, 7. 11. and 13. RpGfinn :2: re- establish, by QFd'n n fees and nha.n^a of the type a sly 1pyiead .. thin the nine P.edenessar Districts, to apply within the nine speGial . SeGWR & Thatthe f h ne shalt he. "oa ya a n.aa r, n 1" "oa ya a n.ae n a 2" "Rpvgnue-A Fen N 2- "R "Revenue-.Aren NOR" No- 7" "Rp ypn a A.ea 41a 11" "R.AyAn a Brea No 12" "Revenue .A.FPs No. 14" Section 2, Revenue Area No 14 shall continue to be fully funded through contracts with Irvine Ranch Water District. II i Section 3 Effective Date That the provisions of this Ordinance shall become effective thirty (30) days after adopligoa. 2en1'nn A. T61n Ord nanngRGtPA AS on urgeRGY FneaBLIFe to take effeGtiVe im ediatel., 'n n..l f ton n the publa health and safety by fulfilling the OR going eb"gatieRs of the RFPiJenPRRgr UstFiGlis, whiGh, by epeiatieR of law, Rrp nniy thmgp. of the DiStFirt, With all legal Fights and obligations b" Section 4. Repeal. Ordinance No. OCSD-02 is hereby repealed. Section . Sestien-6: 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. PASSED AND ADOPTED by the affirmative vote of not less than two- thirds of the Board of Directors of the Orange County Sanitation District at a Special-Maeting eie ting held duly egg@, Chair, Board of Directors Orange County Sanitation District ATTEST: Secretary of the Board of Directors Orange County Sanitation District ThnnnT„o.,,�`^'^naraffBradley R. Hagin, General Counsel FAHRCOMMITTEE Ma ngDate TOBd.ofDir. 04/12/06 0S/24/O6 AGENDA REPORT I Nuumbber Item Number Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance/Treasurer Originator: Mike White, Controller SUBJECT: ANNEXATION OF AREAS OUTSIDE OF ORANGE COUNTY GENERAL MANAGER'S RECOMMENDATION Adoption of Ordinance No. OCSD-29 , An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21: a. Motion to read Ordinance No. OCSD-29 by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) b. Motion to adopt Ordinance No. OCSD-29, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Fees, Procedures, and Policies Concerning Annexations of Territory to the District, and Repealing Ordinance No. OCSD-21. SUMMARY The current Sanitation District Ordinance No. OCSD-21 does not specifically allow certain areas to be excluded from annexation fees. In the past, the Sanitation District has made decisions to which open space areas outside of Orange County were excluded from the initial equivalent annexation fee payment. The proposed revision to the ordinance would clarify the ordinance to exclude certain specified areas, which would not be subject to equivalent annexation fees, which are outside of Orange County. Specifically, Orange County Equivalent Annexations that are permitted via District Resolution 99-05 would no longer be subject to annexation fees: • Land that is subject to an easement for open space preserve or dedication for open space preserve. This shall not apply to areas that are internal to developments and shall not be confused with public parks. • Land that is designated for use as a golf course, except that all portions of golf course land which are utilized for access road, parking, and clubhouse shall be included. • Land designated for use as a flood control or water quality basin. M wepdagenda�Agenda RaecnslYCW BoaN Agenda A Agena Repxlsn)0%dem Y Cad M, z Re". g .'. Page 1 This additional language will bring consistency to making decisions regarding the annexation and annexation fees for those areas outside of Orange County. PRIOR COMMITTEE/BOARD ACTIONS On January 28, 2004, the Board adopted Ordinance No. OCSD-21, An Ordinance of the Board of Directors of Orange County Sanitation District, Adopting Fees, Procedures and Policies Concerning Annexations of Territory to the District; and Repealing Ordinance No. OCSD-03. PROJECT/CONTRACT COST SUMMARY Not applicable. 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) ATTACHMENTS Ordinance OCSD-29 H\deplagmda\Board Agenda ReWdsgdC6 Beard Agenda 3 AgaMa RepMnW505Wem 23 Ord]9 doe Revised .,.,a, Page 2 v ORDINANCE NO. OCSD-29 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING FEES, PROCEDURES, AND POLICIES CONCERNING ANNEXATIONS OF TERRITORY TO THE DISTRICT,AND REPEALING ORDINANCE NO. OCSD-03 WHEREAS, the Board of Directors of the Orange County Sanitation District ("Districr) has previously adopted Ordinance No. OCSD-21, adopting fees, procedures, and policies concerning annexations of territory to the District, which Ordinance is presently in full force and effect; and WHEREAS, for purposes of continued efficiency and effectiveness of the District's operations, preservation of the public health and safety, and in order to continue the provision of wastewater collection, treatment and disposal services, it is the intent, by adoption of this Ordinance, to continue said procedures and policies in effect, without interruption; and WHEREAS, the Board of Directors of the District has received a management report, including financial needs of the District, and wishes to reaffirm the policy of imposing annexation fees when new territory is annexed to the District, and to adopt findings supporting the amount of the fees adopted pursuant to this Ordinance. The Board of Directors of the Orange County Sanitation District does hereby FIND: A. 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; and B. 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; and C. 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 D. That the properties upon which the fees established by this Ordinance are levied,will, subsequent to payment of an additional Capital Facilities Capacity Charge, be allowed to discharge wastewater to the District's collection, treatment and disposal facilities; that the costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process; and that said costs will exceed the amounts of any ad valorem tax revenues derived from said property; and E. That the District will not receive any tax exchange from said annexed properties because of an agreement with the County of Orange under which there is no tax exchange for newly-annexed property; and F. That the annexation fees 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 fees 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 MID are not applicable. G. That the annexation fees imposed by authority of this Ordinance do not exceed the estimated amount required to provide access to the sewer service for which the fee is levied, as provided in California Government Code Section 66013; and H. That the fees established by this Ordinance will not necessarily result in an expansion of facilities to provide for growth outside the existing service area. The collection of these annexation fees will not result in any speck project, and will not result in a direct physical change in the environment; and I.That the fees adopted by this Ordinance are established upon a rational basis between the fees charged each property that is annexing, and the service and facilities provided to each annexed property by the District, a portion of which is 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; and J. 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; and K. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act from further environmental assessment pursuant to the provisions of California Public Resources Code Section 21060(b)(6), and 14 California Code of Regulations Section 15273(a). NOW,THEREFORE,the Board of Directors of Orange County Sanitabon District, does hereby ORDAIN: Section 1:That the purpose of this Ordinance is to establish fees required to be paid by property owners for the annexation of property to the District. Said fees are in lieu of property taxes not allocated to the District while the property was outside of the District, and in lieu of future property tax allocations through a Tax Exchange Agreement. Revenues derived under the provisions of this Ordinance may 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 issued for the construction and reconstruction for said sewerage facilities, together with costs of administration and provisions for necessary reserves. l ,y Section 2: That the proponents of any application for annexation of any territory to the District are requesting that the annexed property become a part of the District's jurisdiction, and that by doing so, they become entitled to receive the benefits of having access to the use of the extensive capital facilities system and to receive the District's service, and shall, as a condition to securing approval of the Board of Directors of the District to such annexation, agree to and comply with the following requirements: A. Payment of all administrative costs incurred by the District in processing the annexation. B. Payment of annexation acreage fees, as follows: Beginning January 1, 2004, the sum to be paid for annexation of territory to the District for which no tax exchange is negotiated between all affected agencies is hereby fixed: Consolidated Revenue Area Nos. 1-13: $4,235/acre Revenue Area No. 14: N/A C. The annexed territory shall be subject to the terms and conditions of all Ordinances and Resolutions pertaining to fees for connection to the District's facilities and use of said facilities, including but not limited to, industrial discharge permit fees, capital facilities capacity charges, and sewer service user fees. D. The annexed territory shall be annexed into an appropriate local sewering agency, or obtain the written approval of the designated local sewering agency, such as a city, for the purpose of obtaining access to and use of the local sewer system, including pumping stations and force mains, which connects to the District's facilities and system. E. The territory, upon annexation, shall be subject to all ad valorem taxes required for the retirement of the existing and future bonds of the District, and all other applicable ad valorem taxes of the District. F. In the case of territory outside of the District's adopted sphere of influence that is provided service pursuant to District Resolution 99-05, Section 2 (as the same may be amended from time to time) the following areas shall not be subject to fees equivalent to annexation fees: • That portion of land that is subject to a Permanent easement for open space preserve or dedication for open space preserve. This exception shall not apply to areas that are internal to developments. Portions of property to be used for public and private parks intended for recreation Purposes shall be subject to the fees. Individual open space areas that are surrounded or substantially surrounded by development shall be subiect to the fees • Land that is designated for use as a golf course, except that all portions of golf course land which are utilized for access road, parking, and clubhouse shall be included. • Land designated for use as a flood control or water quality basin. i If the use of any portion of territory previously exempted from payment of the fees hereunder is chanced to a non-exempt use, the then-owner of that portion of the territory shall Day the fees equivalent to annexation fees at the amount then in effect for that portion of the territory that is no longer exempt. Section 3:The General Manager is hereby authorized and directed to establish procedures and fees for processing annexation of territory to the District. Said procedures may include provisions for collection by the District of fees charged by other local and state agencies involved in the annexation process for submittal to said agencies by the District on behalf of the annexation proponent. The District's Staff is hereby directed to provide the proponents of any proposed annexation a copy of procedures and fee schedules established pursuant to the authority of this Section. Section 4: That the Staff be directed to transmit to the Orange County Local Agency Formation Commission a certified copy of this Ordinance. Section 5: If any of the provisions of this Ordinance, or the application to any persons or circumstance are held invalid by order of Court, the remainder of this Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section 6: That the provisions of this Ordinance shall become effective thirty(30)days after adoption and shall apply to all annexations to the District on or after said date. Section 7: That Ordinance No. OCSD-21 is repealed effective upon the effective date of this Ordinance. Section 8: That 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. PASSED AND ADOPTED by the affirmative vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a regular meeting held , 2006. Chair, Board of Directors Orange County Sanitation District ATTEST: Secretary, Board of Directors Orange County Sanitation District BRADLEY R. HOGIN GENERAL COUNSEL FAHR COMMITTEE Meetlng Dare Tn Bd.uf Dlr. 04/t2/06 0s/za/o6 AGENDA REPORT trem Number Item Number FAHR06-28 24 Orange County Sanitation District FROM: James D. Ruth, General Manager Lorenzo Tyner, Director of FinancefFreasurer SUBJECT: 2006-07 SEWER SERVICE USER FEE ESTIMATES GENERAL MANAGER'S RECOMMENDATION (A) Ordinance No. OCSD-30A, 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-26: Adopting Revised Table A re Annual Sewer Service Fees Residential Users, Revised Table C re Capital Facilities Capacity Charges, Revised Table D re Supplemental Capital Facilities Capacity Charges, Revised Table E re Administrative Fees and Charges Relating to Permit tees. Revised Table G re Class I and Class II Permittees and Special Purpose Discharge Permittees. and Revised Table H Wastehauler Charges for Use, and Reaffirming All Other Charges 1. Motion to read Ordinance No. OCSD-30A by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) 2. Motion to adopt Ordinance No. OCSD-30A, 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-26. (Must be approved by a 213 vote of the entire Board of Directors.) « « « « « OR : « + . « (B) Ordinance No. OCSD-30B, 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-26: Adopting Revised Table A re Annual Sewer Service Fees Residential Users, i Revised Table C re Capital Facilities Capacity Charges, Revised Table D re Supplemental Capital Facilities Capacity Charges, Revised Table E re Administrative Fees and Charges Relating to Permit tees. Revised Table G re Class I and Class 11 Permittees and Special Purpose Discharge Permittees, and Revised Table H Wastehauler Charqes for Use. and Reaffirming All Other Charges 1. Motion to read Ordinance No. OCSD-30B by title only and waive reading of said entire ordinance. (The waiver of the reading of the entire ordinance must be adopted by a majority vote of Directors present.) 2. Motion to adopt Ordinance No. OCSD-30B, 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-26 (Must be approved by a 2/3 vote of the entire Board of Directors.) SUMMARY Staff has re-evaluated every project in the Validated Capital Improvement Program and many newly proposed projects as a part of the 2006-07 and 2007-08 budget preparation process. Approximately $474 million of budgeted construction costs will be delayed or deferred. In addition, the Sanitation District contracted with Carollo Engineers to complete a Revenue Program and Rate Analysis study. The result of these efforts was to reduce projected 2006-07 and 2007-08 single family residential rate (SFR) increases, the basis for all sewer service charges, from 20.0%to 14.25%. The proposed attached Ordinance No. OCSD-30A reflects this proposed increase. As an alternative, the Board of Directors could approve a lower rate increase, an increase in the SFR rate of 9.8 percent over the prior year, as opposed to the staff recommended 14.25 percent increase. The effect of a lower rate reduction would require staff to focus on secondary treatment and the Groundwater Replenishment System capital improvement projects and to reduce the capital outlay of other capital improvement projects, made up of most rehabilitation and replacement projects, to coincide with the amount of revenue that will be generated by a reduced rate increase of 9.8 percent. The attached Ordinance No. OCSD-30B reflects this atemative increase. Historically, the District has increased our overall sewer user fees in fairly small annual increments, using some debt financing to smooth the impact of the capital improvement program. Wdh the public interest in improved effluent quality and the Board's decision to meet secondary treatment discharge standards rapidly, it is appropriate to evaluate larger rate increases on the front-end of the capital improvement program in order to match the requirements of the program itself and to reduce the long-term rate impacts X�ft N Aga R u`OS[6�24 W XW R. . Page 2 h of additional future debt financing and interest costs. The capital program is summarized in an attached graphic. The Directors adopted a plan in 2003 that included debt financing for $1.4 billion of the $2.8 billion capital improvement and rehabilitation, refurbishment and replacement program. By authorizing this amount of borrowing, the Directors were able to limit projected annual sewer user fee increases to approximately 15% (approximately $18 per year) each year through 2007-08. The Board agreed with this plan and asked that the proposed fee increases be considered annually by the Board for implementation. 2006-07 will be the fourth year of this 5-year plan. PROJECT/CONTRACT COST SUMMARY Without a Board action (by 2/3 majority), the SFR rate for 2006-07 will remain at $151.00 per year. The $172.50 rate recommended for 2006-07 will generate approximately $167.6 million of user fees; an annual increase of$21.0 million over the prior year. There are no extraordinary costs associated with the recommendation. 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). Applies to future budget periods ADDITIONAL INFORMATION Rate Increase Chronology June 2003 1) 1n June 2003, the Board approved a revised Capital Improvement Plan (CIP). 2) To support this CIP, staff recommended a five-year plan which included rate increases averaging 20%. 3) The Board directed staff to issue a Proposition 218 public notice stating the rates would increase by an amount not to exceed a total of 20% annually increase over the next five year period. 4) While the increases were tentatively approved and noticed, the Board chose not to implement the full 20% increase for 2003/04. 5) The Board did discussed alternatives between 10-20%. X 1de,ddlg elBcad Ahando Ropdfit W6d add ABondn A POondd RopddLd5WVbm]n.Old bdM Roll.. o MO Page 3 P. 6) Ultimately, the Board acted to implement a 15% increase in 2003104. 7) Staff reset the budget and long-term cash flow model to reflect the annual increases of 15% for the subsequent five-year period. 8) Board policy stated that 50% of all future capital improvements (approximate percentage of non-capacity related projects), would be funded from current revenues and the remaining 50% through debt financing. However, reducing the projected annual rate increases to 15% required as deviation from that policy in order to support the capital program. As of July 2003, the ratio of CIP funded debt increased to 62 percent. By July 2005, this ratio decreased to 58 percent. The debt fiscal policy has subsequently been changed to provide additional flexibility when addressing this District's capital program and debt issuances. 9) While the five-year plan was still in place, the Board directed staff that to bring back the rate schedule for annual adoption. June 2004 1. Through the adoption of the 2004/05 Budget, the Board acted to implement a portion of the 20% rate increase included in the five-year plan. 2. The Board acted to implement a 15% rate increase for 2004/05. June 2005 1. The CIP increased by $400M, from $1.94B to 2.38B. 2. Additionally, Operations costs increased by $400M, from $1.3B to $1.7B. 3. To support these increased costs, rates needed to be increased above 15%. 4. The Board approved a 31% rate increase for 2005-06, instead of 15%. 5. The additional increase was based on only 15% increases in each of the previous two years. 6. Both the 2005-06 Adopted Budget and the existing ordinance include 20% rate increases for 06-07 and 07-08. 7. Proposition 218 notices were issued based on the 20% figure. 8. As the Board must act to implement any rate increase, it reserves the option to approve any rate increase, under the existing Proposition 218 notice, that does not exceed 20% in fiscal year 2006-07, or 40% over the next two years. H..oM'e0e^daBde.Agana R.Ift3IX Boa.ft.n .fl Ape R.p .05WVI1 N0.30 drc Raw.ae. o.1.10a Page 4 Results of Rate Review Using flow, growth, capital improvement program, and Operation and Maintenance assumptions provided by the Sanitation District, Carollo developed an independent rate model. The results of their study closely matched the in-house model developed by District staff, calling for SFR annual rate increases approximating 14.25-14.50 percent over the next two years. In addition, the Carollo rate model developed proposed revised capital facility capacity charges (CFCC) that increases the benchmark 3-bedroom, SFR from $2,890 to $4,360, or 50.9 percent, and the average demand for commercial industrial from $1,050 to $1,306, or 24.4 percent. These increases are reflective of the increase in the CIP program in June 2005 from $1.94 billion to 2.38 billion. The CFCC SFR increase was more substantial than the Commercial/Industrial rate due to the nature of the CIP program. The majority of the CIP program is due to the increase in treatment standards that is concentrated on improved flow treatment as opposed to increased BOD and TSS treatment, two variables that impact Commercial/Industrial customers more so than flow. The previous CFCC rates have not been increased over the last two and one-half years. It has generally been the practice of the Sanitation District not to update CFCC rates until the completion of an Interim Strategic Plan Update, which generally occurs only once in approximately five years. With the implementation of this new rate ordinance, staff is also recommending that these fees be adjusted annually to reflect the current value of the facilities or the current cost of capital projects. It is recommended that annual cost escalator be based on a commonly accepted price indicator; the Engineering News Record Construction Cost Index for Los Angeles. ALTERNATIVES Staff alternative is discussed above within the summary "Summary" section. CEQA FINDINGS N/A ATTACHMENTS 1. Revenue Program and Rate Update Report from Carollo Engineers 2. Ordinance No. OCSD-30A 3. Ordinance No. OCSD-30B LT:lc M:WeplWge'gaWmG P9 R�S20Cfi ReP WS tmm 24d ]P.E¢ ne.�sva. ceroama Page 5 Orange County Sanitation District Revenue Program and Rate Update FINAL April 2006 r Orange County Sanitation District Revenue Program and Rate Update Final Report TABLE OF CONTENTS Paaa 1.0 INTRODUCTION.........................................................................................................1 1.1 Purpose and Scope...........................................................................................1 1.1.1 Purpose..............................................................................................1 1.1.2 Scope of Work....................................................................................1 1.2 Background.......................................................................................................1 1.3 Project Findings and Recommendations...........................................................2 2.0 ASSUMPTIONS AND DATA.......................................................................................2 2.1 Flow and Growth Assumptions..........................................................................2 2.1.1 Flows..................................................................................................2 2.1.2 Equivalent Dwelling Units...................................................................3 2.2 User Rate Categories........................................................................................4 2.3 Capital Facility Capacity Charge(CFCC) Categories.......................................4 2.4 Capital Improvement Program ..........................................................................5 2.5 Functional Allocation.........................................................................................6 2.6 Operations and Maintenance Expenditures......................................................8 2.7 Existing Financial Information ...........................................................................8 3.0 REVENUE REQUIREMENT ANALYSIS.....................................................................9 3.1 Introduction........................................................................................................9 3.2 Funding Sources...............................................................................................9 3.3 Findings and Recommendations.....................................................................12 4.0 RATE STRUCTURE ANALYSIS ...............................................................................14 4.1 Introduction......................................................................................................14 4.2 Revenue Needs...............................................................................................15 4.3 Functional Allocation.......................................................................................16 4.4 Unit Costs........................................................................................................19 4.5 Customer Category Rates...............................................................................21 4.6 Findings and Recommendations.....................................................................21 5.0 CAPITAL FACILITIES CAPACITY CHARGE ANALYSIS..........................................22 5.1 Introduction......................................................................................................22 5.2 Methodology....................................................................................................23 5.2.1 Approach and Assumptions..............................................................23 5.2.2 CFCC Calculation.............................................................................24 5.3 Findings and Recommendations.....................................................................27 APPENDIX A Project Calculations APPENDIX B User Categories DRAFT-April 6, 2006 i H.)Client\0t PHXW740MN ptV..n.e Pr,..6 RO &C LIST OF TABLES Table 2.1 Summary of Total Projected Treatment Plant Flows.........................................3 Table 2.2 Historical and Projected Equivalent Dwelling Units...........................................3 Table 2.3 Operation and Maintenance Cost Allocation to Billable Constituents ...............a Table 2.4 Capital Cost Allocations to Billable Constituents...............................................7 Table 2.5 CIP Billable Constituents Cost Breakdown (Millions of Dollars)........................8 Table 3.1 Outstanding Certificates of Participation Debt at July 1, 2005........................10 Table 3.2 FY 2006/07 Reserve Requirements(Millions of Dollars) ................................11 Table 3.3 Revenue Requirements...................................................................................13 Table 4.1 Sewer Service Charges...................................................................................15 Table 4.2 Expenditures and Off-Setting Revenues.........................................................16 Table 4.3 Allocation Percentage Basis............................................................................17 Table 4.4 Functional Allocation of Costs.........................................................................18 Table 4.5 Total Flow and Load Information.....................................................................19 Table 4.6 Flow and Load per EDU..................................................................................19 Table 4.7 Total Annual Flow and Loads..........................................................................20 Table 4.8 Unit Cost Calculation.......................................................................................20 Table 4.9 Annual Charge per EDU Calculation...............................................................20 Table 4.10 Proposed Industrial User Sewer Service Charges .........................................21 Table 4.11 Projected Sewer Service Charges..................................................................22 Table 5.1 CIP Billable Constituents Cost Breakdown .....................................................24 Table 5.2 Expansion Expenditure Allocation...................................................................25 Table 5.3 Residential CFCC Calculation.........................................................................25 Table 5.4 Commercial-Industrial CFCC Calculation........................................................26 Table 5.5 Supplemental Capital Facilities Capacity Charge Calculation.........................27 Table 5.6 Recommended CFCC and SCFCC.................................................................28 DRAFT-April 6, 2006 it H-.01W10ced—PHXW740BgdpWp1lRer .PMMM B aate.dx Orange County Sanitation District DRAFT REPORT 1.0 INTRODUCTION 1.1 Purpose and Scope 1.1.1 Purpose The purpose of this report is to present the findings of a study of the District's sewer service and capital facilities capacity charges (CFCC). The study evaluated the District's wastewater utility revenue needs, and developed sewer service rates and wastewater capital facilities capacity charges to equitably distribute costs among utility customers. 1.1.2 Scope of Work The scope of work includes the following: • Perform a revenue requirement analysis; • Evaluate the District's sewer service charges; • Evaluate the District's wastewater capital facilities capacity charges. 1.2 Background The Orange County Sanitation District is a public agency responsible for regional wastewater collection, treatment, and disposal. The District provides service to an area of approximately 471 square miles with a population of approximately 2.5 million people in the northern and central portion of the County, treating approximately 243 mgd of wastewater. The District owns sanitary sewerage facilities with a replacement value of approximately $5.38 billion. On July 17, 2002, the Board of Directors approved Resolution No. OCSD-14, "Establishing the Policy for Level of Treatment of Wastewater Discharged into the Ocean." This resolution established the District's policy to treat all wastewater discharges into the ocean to secondary treatment standards. Implementation of full secondary treatment standards is scheduled to be completed on or before December 31, 2012. The wastewater system must also meet other demands, including service to a growing population, odor control improvements, and air quality protection needs. Over the next 16 years, the District's overall Capital Improvements Plan (CIP) is projected to total $1.88 billion. All capital costs presented within this report are stated in 2006 dollars, unless otherwise denoted. DRAFT-April 6, 2006 1 H:tC11•MVDcW__PHXlM7408A00VtptlRe %Pm9mma RW .A c 1.3 Project Findings and Recommendations It Is recommended that the District increase the annual sewer service charge from $151 to $172.50 per equivalent dwelling unit (EDU) in FY 2006/07. It is also recommended that the District implement annual increases between 14.25 percent and 11.75 percent in subsequent years. This projection should be revisited on a periodic basis, as the District updates its operational and capital projections. It is further recommended that the District increase the Residential Capital Facilities Capacity Charge from $2,890 to$4,363 per EDU and Commercial-Industrial Capital Facilities Capacity Charge from $1,050 to $1,307 per 1,000 square feet in FY 2006/07. In subsequent years, it is recommended that the CFCC be increased with inflation. Finally, it is recommended that the District increase the Supplemental Capital Facilities Capacity Charge to$0.001344 per gallon, $0.754730 per lbs. of B.O.D., and $0.091720 per lbs. of T.S.S. The basis for these recommendations is presented within the report herein. The project calculations are presented in Appendix A of this report. 2.0 ASSUMPTIONS AND DATA 2.1 Flow and Growth Assumptions According to the Interim Strategic Plan Update(June 2002), the population of the District's service area is projected to grow to 2.7 million by the year 2020. Average flow rates at both treatment plants are projected to increase to a total combined flow of 278 million gallons a day by 2020. The average yearly influent flow to the District has remained relatively stable for the preceding five years. The wastewater flow for Fiscal Year 2000-01 was 246 mgd (average annual basis) and for Fiscal Year 2004-05 was 243 mgd (average annual basis). The highest flows of 500 mgd (peak hour wet weather basis)were recorded during El Nino storm periods in December 1997 and February 1998. There were no sewer failures or overflows during these events. 2.1.1 Flows Projected flows treated by the District are presented within Table 2.1. DRAFT-April 6, 2006 2 H:=1.M*C0_PHxw740&AWYk.r ve ProOMm8 Rab.Eoc Table 2.1 Summary of Total Projected Treatment Plant Flows Revenue Program and Rate Update Orange County Sanitation District Flow(mgd) Flow Source 2006 2010 2016 2020 Service Area Flows 233 238 242 246 - Irvine Ranch Water District(IRWD) 13.5 14.0 15.0 15.0 - Santa Ana Watershed Protection Agency (SAWPA) 9.50 12.0 15.0 17.0 Total District Flows 256 264 272 278 Source: Orange County Sanitation District, Nov 2004 Board Agenda Report. 2.1.2 Equivalent Dwelling Units The District provided customer growth figures. Two methods were used to estimate growth. One method projects growth based on historic growth rates. The other method projects growth based on projections provided by the Center for Demographic Research at the California State University at Fullerton. The number of customers or connections to a sewer system is often expressed in Equivalent Dwelling Units.An Equivalent Dwelling Unit(EDU) is a measurement of the demand on sewer and treatment facilities in terms of Flow and strength that is equivalent to that produced by a single-family home. Biological Oxygen Demand (BOD) and Total Suspended Solids (TSS) measure influent strength. Both residential and commercial sewer service charges, as well as CFCCs, are based on EDUs. The historical number of customers served by the District for the Fiscal Years 2000-01 through 2004-05, identified in Equivalent Dwelling Units ("EDUs"), are set forth in Table 2.2 below. Table 2.2 Historical and Projected Equivalent Dwelling Units Revenue Program and Rate Update Orange County Sanitation District Fiscal Years 2000-01 through 2009-10 Fiscal Year Historical EDUs 2000-01 883,603 2001-02 898,031 2002-03 897,757 2003-04 884,169 2004-05 893,501 (1) EDU growth during the projection period is estimated at approximately 0.4% per annum. Source: Orange County Sanitation District. DRAFT-April 6, 2006 3 H 1CIieMWrstl_PHXM74MAW1HptVtev .PM..8R .d. The District calculates the number of EDUs based on the annual revenues divided by the current single-family residential (3-bedroom house) annual sewer service charge. Based on projected revenues for FY 2006/07 of$147.2 million and a current annual sewer service charge of$151 per EDU, the District is assumed to serve 975,123 EDUs. This EDU count is used as the basis for the analysis presented within this study. 2.2 User Rate Categories Users are billed a flat wastewater service charge based on the property use classification maintained by the County Assessor. The District maintains a listing of average flow and wastewater strength discharges for each property type, which is used to develop the user rates. The single family residential (SFR) sewer service charge is based on typical flow and loadings for an average 3-bedroom home and serves as the base rate to calculate rates for other users. Multi-family residential users are charged 70 percent per unit of the SFR rate. Commercial and the majority of industrial users are charged a percentage of the SFR rate as specified in Ordinance No. OCSD-26 (OCSD-26), the Fees and Charges Ordinance. These use factors are based on the average flow and strength characteristics for the type of property, charged on a per 1,000 square-foot basis. Users with unusually high flows and/or strength of wastewater, known as"Permit Users," pay individually calculated charges, based on measured wastewater flows and strengths. The District currently has 30 different residential and commercial use codes. See Appendix B for a complete listing of user rate categories, contained in OCSD-26. 2.3 Capital Facility Capacity Charge (CFCC) Categories The Capital Facility Capacity Charge is a one-time charge imposed when a building or structure is newly connected to the District's system, or when an existing structure or category of use is expanded or increased. The current base charge is $2,890, calculated based on the flow and wastewater loadings for an average 3-bedroom home. Adjustments to the base charge are delineated in OCSD-26. The rates for each size of SFR and MFR are determined as a relative percentage higher or lower than the base (3 bedroom SFR) of 1.0, depending on the unit's size. Commercial and industrial CFCCs are classified as"Low," "Average,"or"High" demand connections, based on the property type. Significant commercial-industrial users and special purpose dischargers are subject to a Supplemental Capital Facilities Capacity Charge for discharges in excess of baselines established for flow, BOD, and TSS. A full description of the baselines and supplemental CFCC rates are described in sections 3.07—3.10 of OCSD-26. A "Significant Commercial-Industrial User" (SCIU) is an entity that discharges commercial or industrial flow in an amount greater than 25,000 gpd, or BOD greater than 150 pounds DRAFT-April 6, 2006 4 H%0i 0c.,LPHM740 MV1p1M.nu.Program&RM.A. per day, or TSS greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit due to having federally or District regulated or significant discharges. A"special purpose discharger" (SPD) is an entity who discharges 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. 2.4 Capital Improvement Program The District developed the current Capital Improvement Program ("CIP") in combination with the Interim Strategic Plan. The District expects to meet future demands on the Wastewater System through the CIP. This program has been developed to satisfy anticipated regulatory requirements, increased population, additional treatment requirements, conservation, energy, and other resource-savings considerations, odor control improvements, and air quality protection needs. Over the next 16 years, the District's CIP will accomplish: • Major rehabilitation of the existing headworks, primary treatment, secondary treatment, outfall pumping, and solids handling facilities at both treatment plants. • Replace and rehabilitate 17 of the District's outlying pumping stations, and 44 trunk sewer improvement projects. • Fund cooperative projects to help cities upgrade their sewer systems. • Disinfect the District's ocean discharge to reduce bacterial levels below State bathing standards. • Reclaim 70 millions of gallons per day of the District's effluent, or nearly one-third of the total daily flow(Groundwater Replenishment System). • Achieve full secondary treatment standards. In preparation of each year's Budget, the District conducts an Annual CIP Validation Study to ensure that the scopes of the projects were necessary, and that the cost estimates were accurate. As a result of the completion of the CIP Validation Study and the Secondary Treatment Peer Review in the spring of 2003. a revised CIP was developed to meet secondary treatment standards as quickly as possible, while providing for increased flows and rehabilitation and refurbishment of existing facilities. Implementation of full secondary treatment standards is scheduled to be completed on or before December 31, 2012. The CIP, as included within this study, totals$1.71 billion in 2006 dollars($1.86 billion in nominal dollars) between FY 2006/07 and FY 2020/21. Of this total, $1.36 billion will be undertaken for replacement/rehabilitation and treatment upgrades, while$0.35 billion will be undertaken to provide rapacity for projected growth. The CIP expenditures over the next DRAFT -April 6, 2006 5 HACI�PHXM740 =RPI1Rev .Program&Ret•.U. five years are projected to total $1.40 billion in 2006 dollars; an annual average of$281 million. 2.5 Functional Allocation In addition to the breakdown between replacement and expansion projects, it is also necessary to allocate these costs to billable constituents that can be measured both at the treatment facilities and for each user to enable the capital and O&M project costs to be charged to existing and future users. To accomplish this, the costs for each project were broken into the costs associated with treatment of the billable constituents: flow and strength (Biochemical Oxygen Demand (BOD)and Total Suspended Solids (TSS)). An example of these allocations are shown later in the report in Table 4.4. The allocation of O&M expenditures by unit process are illustrated in Table 2.3. Table 2.3 Operation and Maintenance Cost Allocation to Billable Constituents Revenue Program and Rate Update Orange County Sanitation District Allocation Percentages(%) Treatment Process Flow BOD TSS Collection and Diversion 90 5 5 Interplant 90 5 5 Headworks 75 5 20 Primary Sedimentation 15 25 60 Activated Sludge Process - 100 - Oxygen Activated Sludge - 100 - Blower Equipment and Structures - 100 - Aeration Equipment and Structures - 100 - Trickling Filters - 100 - Secondary Sedimentation - 100 - Sludge Thickening - 25 75 Digestion - 25 75 Solids Handling - 20 80 Solids Disposal - 45 55 Effluent Disposal 100 - - Non-Assignable Costs(2) 32 33 34 Source: 1998 Determination of Financial Rates and Charges Report. (1)Allocation of sludge thickening was changed to reflect co-thickening process. (2) Percentage based on weighted average for all other allocated costs. DRAFT-April 6, 2006 6 H:Vo1G 1100$dPRXW74M0pYpt\Revenue Pmpmm&RM.dw For the capital related costs, the allocation basis is illustrated below in Table 2.4. Table 2.4 Capital Cost Allocations to Billable Constituents Revenue Program and Rate Update Orange County Sanitation District Allocation Percentages (%) Unit Process Flow BOD TSS Collection and Diversion 90 10 — Interplant 90 10 — Headworks 75 5 20 Primary Sedimentation — 30 70 Activated Sludge Process — 100 — Oxygen Activated Sludge — 100 — Blower Equipment and Structures — 100 — Aeration Equipment and Structures — 100 — Trickling Filters -- 100 0 Secondary Sedimentation — 70 30 Sludge Thickening i'i — 25 75 Digestion — 25 75 Solids Handling — 20 80 Solids Disposal — 45 55 Effluent Disposal 100 — — Non-Assignable Costs(3) 44 37 19 Source: 1998 Determination of Financial Rates and Charges Report. (1)Allocation of sludge thickening was changed to reflect co-thickening process. (2) Percentage based on weighted average for all other allocated costs. Table 2.5 presents the replacement and expansion CIP costs broken into the billable constituents from FY 2006/07 to FY 2020/21. These capital expenditures are stated in 2006 dollars. DRAFT-April 6, 2006 7 N:0Ien%0cICPHM740MGVJ piVkVv a PMmm&W .dw Table 2.5 CIP Billable Constituents Cost Breakdown (Millions of Dollars) , Revenue Program and Rate Update Orange County Sanitation District Flow BOD TSS Total CIP Costs Replacement $499 $528 $333 $1,360 Expansion $158 $174 $ 23 $ 354 2.6 Operations and Maintenance Expenditures The revenue requirement analysis uses the District's FY 2005/06 budgets as the basis for forecasting future revenue needs. Expenditures are assumed to increase commensurate with cost inflation and projected cost increases associated with increases in wastewater flows due to growth and higher treatment standards. Revenues and expenses are projected for future fiscal years using the following annual escalation factors, as agreed upon with the District: • General Cost Inflation: 4% • Power& Chemicals: 7% • Labor Inflation: 6% • FY 2005/06 Construction Cost Inflation: 5% • Customer Growth: 0.4% • FY 2005/06 Fund Earnings: 4% This analysis incorporates the District's proposed FY 2006/07 and FY 2007/08 operating budgets. 2.7 Existing Financial Information The background financial information supplied by the District included: existing debt service and future payments, current reserve ending fund balance, other future non-treatment alternative-related expenses, other future revenues,future property taxes, and other miscellaneous financial information. The District also provided revenues and expenses associated with providing service to Irvine Ranch Water District(IRWD), Santa Ana Watershed Project Authority (SAWPA), and other miscellaneous items. DRAFT -April 6, 2006 8 HAc10MO PHXW7408MO0%Rpr1Rewnue"mm&RM .d= 3.0 REVENUE REQUIREMENT ANALYSIS 3.1 Introduction The revenue requirement analysis determines the amount of rate revenue needed in a given year to meet a utility's expected financial obligations. At least two separate tests must be met in order for rates to be sufficient: 11 Cash Flow Test -A utility must generate annual utility revenues adequate to meet general cash needs. 2) Bond Coverage Test-Annual rate revenues must satisfy debt coverage obligations on Certificates of Participation. The cash flow test identifies projected cash requirements in each given year. Cash requirements include operations and maintenance expenses, debt service payments, policy-driven additions to working capital, miscellaneous capital outlays, replacement funding, and rate funded capital expenditures. These expenses are compared to total annual projected revenues. Shortfalls are then used to estimate needed rate increases. The bond coverage test measures the ability of a utility to meet both legal and policy-driven revenue obligations. Because the District has variable rate COPS, it is required to collect sufficient funds through rates to meet all ongoing operational and maintenance expenses, as well as 2.00 times the total debt service requirements due in a year. A certificate of participation (COP) is a debt instrument where the purchaser receives a share in an installment sale arrangement with the District. Revenues must be sufficient to satisfy both tests. If revenues are found to be deficient through one or both of the tests, then the greater deficiency(shortfall) drives the rate increase. 3.2 Funding Sources Over the next ten years, the District projects$1.69 billion in future wastewater treatment improvements and in future collection system capital improvements, as stated in 2006 dollars. The District expects to fund these improvements through a combination of revenues, reserves, and COPs. The District expects to issue approximately$1.0 billion in certificates of participation over the next ten years. Payments with respect to any such indebtedness are expected to be executed and delivered as Additional Obligations under the Master Agreement on a parity with the Installment Payments. Current Revenues Sewer Service Charges- User charges can be increased to accumulate reserves to cash fund capital projects. The District established a Capital Improvement Reserve to fund annual increments of the capital improvement program with a target level at one half of the DRAFT-April 6, 2006 9 HAVWMOczd_PMW740B WO p11Ra wPrNmm&R e. o average annual capital improvement program through the year 2020. The Capital Replacement/Renewal Reserve was established to provide thirty percent of the funding to replace or refurbish the current collection, treatment, and disposal facilities. Further, for this analysis, we have used a "rate smoothing" strategy for meeting future rate requirements. Projected rate increases in FY 2006107 are designed to both Batten annual rate increases and allow for the accumulation of reserves. This approach is designed to reduce long-term costs to the customers by reducing the District's debt requirements and helping maintain their current bond rating. Capital Facilities Capacity Charges- CFCCs are a one-time charge imposed on new development or expansion of existing users that increase demand on the system. They provide for equitable cost recovery of growth-related costs. New Debt The District can issue Certificates of Participation (COPS)to fund capital-related projects. By issuing debt, the Utility is legally required to maintain a 1.25x coverage ratio on the maximum outstanding annual debt service. This means that rates must cover annual cash operating expenses plus 125 percent of the maximum annual outstanding debt service payments. This coverage requirement is delineated within The Master Agreement for District Obligations, dated August 1, 2000. However, because some of the District's outstanding COPS are variable rate, a more stringent coverage ratio of 2.00x is imposed. Currently the District has Senior Obligations Outstanding payable on a parity with the Installment Payments under the Installment Purchase Agreement. Table 2.6 below describes the District's outstanding certificates of participation as of July 1, 2005. Table 3.1 Outstanding Certificates of Participation Debt at July 1, 2006 Revenue Program and Rate Update Orange County Sanitation District Principal Issue Outstanding Final Amount Date Balance Maturity 1992 Certificates $160,600,OD0 1213/92 $100,275,o0D 8/1/13 1993 Certificates 46,000,000 9/2/93 42,050,000 6/1/16 Series 2000 Certificates 218,600,000 8/13/00 199,000.000 8/1/30 Series 2003 Certificates 280.000,000 8/26/03 280,000,000 2/1/33 Series 2006 Certificates 200,000,000 3/1/06 200,000,000 2/1/36 Total Long-Term Debt $905,200,000 $821,325,000 DRAFT-April 6, 2006 10 H:x:IbmWcb_PH%W,laplgOpYtptVlewnue Pmgmm 6 RtlaAx Reserves The District maintains eight separate categories for its reserve funds. The following table delineates the projected reserve requirements for FY 2006/07. Increases to the Capital Improvement Program Reserve and Debt Service Required Reserves are attributable principally to the funding of projected CIP cash flow and the Reserve Fund for the Certificates. Table 3.2 FY 2006107 Reserve Requirements(Millions of Dollars) Revenue Program and Rate Update Orange County Sanitation District Cash Flow Requirements Reserve Operating Expenses $65 Certificate of Participation Payments 58 Operating Contingencies Reserve 13 Capital Improvement Program Reserve 85 Catastrophe and Self Insurance 57 Capital Replacement and Refurbishment 53 Debt Service Required Reserves 92 Less:Adjustment to Reserves (40) Total $382 FY 2006/07 Projected Reserve Requirements. • The Cash Flow Requirements Reserve was established to fund operation, 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 which are collected as a separate line item on the property tax bill. The level of this reserve is established as the sum of an amount equal to six months operations and maintenance expense and the total of certificates of participation debt service expenses due in the subsequent fiscal year. • The Operating Contingency Reserve was established to provide for non-recurring expenditures that were not anticipated when the annual budget and Sewer Service Charges were adopted. The level of this reserve is equal to ten percent of the District's annual operating budget. DRAFT-April 6, 2006 11 HXIbftaEPH 740M001RPt1Rewnue Program 9 Rale.dm • The Capital Improvement Reserve was established 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. Levels higher and lower than the target can be expected while the long-term financing and capital improvement programs are being finalized. • The Catastrophic Loss, or Self-insurance Reserve is established for property damage including fire, flood and earthquake, general liability, and workers'compensation. The level of reserve in this fund is maintained at a level to fund the District's non-reimbursed costs, which are estimated to be $57 million. • The Short-Term Capital Fund Reserve was created for specific short-term capital improvements such as the GWRS. • The Capital Replacement/Renewal Reserve was established to provide thirty percent of the funding to replace or refurbish the current collection, treatment, and disposal facilities. The current replacement value of these facilities is estimated to be approximately $5.38 billion. The initial reserve level for this fund was established at$50 million and is augmented by interest earnings and a portion of the annual Sewer Service Charges. • Debt Service Reserves are controlled by a trustee pursuant to the provisions of certificates of participation issues and is not available for the general needs of the District. • The Rate Stabilization Reserve accumulates all available funds that exceed the targets for all other reserves. The Rate Stabilization Reserve is a separate fund from the Rate Stabilization Account established under the Trust Agreement. These funds are applied to future years' needs and must be maintained at specified levels. There is currently no established target for this reserve. • Adjustments to the total reserves reflect ability of one reserve to support the requirements of other reserves. Not all reserves will be fully utilized at any given point. 3.3 Findings and Recommendations The results of the revenue requirements are summarized in Table 3. Annual rate increases are shown expressed on a percentage basis. DRAFT-April 6, 2006 12 H1CI1•m*W PHXM74 BgWWp11Hry mPrugmm S RNe.dx Table 3.3 Revenue Requirements Revenue Program and Rate Update Orange County Sanitation District FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Revenues 2007 2008 2009 2010 2011 User Charges $ 147,243,628 $168,898,748 $193,738,687 $222,231,836 $253,799,868 3g Other Operating Revenues 26,056,728 24,950,157 25,758,603 27,586,547 29,914,489 3 m Non-Operating Revenues 55,560,000 58,338,000 61,254,900 64,317,645 67,533,527 oIntra-District Revenues 8i Self-Insurance 2,599,000 2,599,000 2,599,000 2,599,000 2,599,000 Total Revenues $ 231,459,356 $254,786,905 $283,351,191 $316,735,029 $353,846,885 Expenditures Ongoing Operating Expenses 3 Operating Expenses $ 129,308,110 $138,502,130 $147,292,361 $156,650,748 $166,614,622 s Reserve Contributions Other Operating Expenses Debt Service 57,786,240 70,669,047 87,907,206 102,721,906 114,608,054 Miscellaneous Capital — -_ _ _ _ Replacement Funding _ _ 1,157,625 — -- Rate Funded Capital Improvements 9,101,807 49,328,619 49,069,438 31,608,403 52,069,197 Bond Coverage Requirements 32,392,585 — 19,246,819 52,662,367 43,169,890 Policy Driven Rate Increase 20,982,217 17,755,182 3,686,504 1.051.462 4,607,607 Total Expenditures $ 249,570,968 $276,264,977 $308,369,954 $344,692,906 $381,069,370 Revenues Surplus (Deficiency) $ (18,111,602) $ (21,469,072) $ (25,008,763) $ (27,957,877) $ (27,222,485) Projected Rate Increase 14.25% 14.25% 14.25% 13.75% 11.75% Surplus (Deficiency) before rate increase is At the direction of the District, rate increases have been levelized (smoothed), to allow for gradual increase, eliminating significant rate spikes. Rate levelization provides two significant benefits. First, increasing rates over a multi-year period can help reduce rate shock to a utility's customers and allow them to better plan for projected increases. Second, by increasing rates over time in anticipation of large capital expenditures, the District will temporarily generate excess cash reserves through FY 2011112, which can be used to cash fund a greater portion of the CIP, thus reducing the magnitude and costs of borrowing. Further, bond rating agencies (Moody's, Fitch ICBA, and Standard and Poor's) have placed increasingly greater weight on good business practices when assigning credit ratings. These business practices include, among others, balancing cash and debt financing, as well as the implementation of proactive rate increases, which demonstrate a municipality's commitment to meeting its stated and require level-of-service and environmental objectives. 4.0 RATE STRUCTURE ANALYSIS 4.1 Introduction Sewer service charges are developed to equitably allocate costs to users to operate, service debt, and perform repairs and replacements for wastewater collection and treatment systems. The overall procedure used to develop sewer service charges is as follows: • Revenue Needs. Define the annual revenue that must be recovered from sewer service charges and permit users. • Functional Allocation. Determine the percentage allocation of O&M and capital costs to the billable constituents: flow, Biochemical Oxygen Demand (BOD), and Total Suspended Solids(TSS), based upon the existing allocation methodology. • Unit Costs. Develop unit costs for each billable constituent by dividing the total cost allocated to that constituent by the total wastewater flow or loadings of that constituent. • Customer Category Rates. Develop rates for each customer category, by applying unit costs to estimated flows and related loadings for each category. The District collects Sewer Service Charges from property owners through the semi-annual property tax bill distributed by the County throughout the District, except in Revenue Area No. 14. Pursuant to the IRWD Agreement, the District receives payments from the Irvine Ranch Water District(the"IRWD"),which directly collects fees from customers through a monthly billing procedure in Revenue Area No. 14. In May 2005, the Board adopted Ordinance No. OCSD-26 increasing the FY 2005-06 single family residential rate 31 percent,from $115.00 to $151.00 per year. This increase was necessary in order to meet the District's cash flow needs due to the addition of disinfection treatment and other operating requirements. DRAFT -April 6, 2006 14 H'%CWM10c PHM7408A00RpIVtev wPr•gmm&Rtl•dW Table 4.1 shows the approved residential rate increases. Table 4.1 Sewer Service Charges Revenue Program and Rate Update Orange County Sanitation District Annual Single Family Percentage Fiscal Year Residence Rate Increase 2005-06 $151.00 31.3% 2006-07' $181.00 19.9% 2007-08' $217.00 19.9% Source: Ordinance No. OCSD-26. . Proposed. Commercial Sewer Service Charges. The sewer service charges for commercial categories are based on a multiplier of the Single Family Residential charge. Industrial Sewer Service Charges. The District charges industrial sewer service charges to customers discharging high-strength or high-volume wastes into the sewer systems. Customers subject to industrial sewer service charges are billed directly by the District. The fee charged to each customer is based on the customer's sewage volume, the concentration of Biochemical Oxygen Demand, and Total Suspended Solids. 4.2 Revenue Needs The revenue needs are defined as the amount of revenues that must be recovered through sewer service charges and permit user charges in order to cover annual expenditures less any offsetting revenues. Offsetting revenues can include interest earnings, IRWD and SAWPA payments, and other non-operating revenues. Expenditures and offsetting revenues for FY 2006/07 are as follows: DRAFT-April 6,2006 15 N:MA*WOC 0-PHJPM740M(VapYleVenuO PrOOMM 8 Rate.0a0 Table 4.2 Expenditures and Offsetting Revenues Revenue Program and Raft Update Orange County Sanitation DisWct FY 2006 Expenditures 2007 Ongoing Operating Expenses Operating Expenses $ 129,308,110 Reserve Contributions Other Operating Expenses Debt Service 57,786,240 Miscellaneous Capital _ Replacement Funding _ Rate Funded Capital Improvements 9,101,807 Bond Coverage Requirements 32,392,585 Policy Driven Rate Increases 20,982,217 Less Offsetting Revenues Other Operating Revenues (26,056,728) Non-Operating Revenues (55,560,000) Intra-District Revenues _ Self-Insurance 2 599 000 Total Revenue Needs: $ 166,355,230 In FY 2006/07, $165 million must be recovered through sewer service charges and permit user charges to cover the District's annual expenditures. 4.3 Functional Allocation The District's existing allocation methodology was used as the basis to develop sewer service charges. Bartle Wells Associates reviewed the District's allocation and concurred that the allocation was reasonable. Their findings are documented in the January 2006 draft report, "Review of Rates and Charges Report," which will be finalized in May 2006. This study does not modify the District's existing allocations. To develop sewer service charges, unit rates per unit of flow, BOD, and TSS are applied to standard flow and loading factors developed for most customer categories. Users with unusually high flows and/or strength of wastewater, known as "Permit Users,"are charged based on measured wastewater flows and strengths. DRAFT -April 6, 2006 16 H:r 11WQ0%4_PHXM740 WRpirRevenue Prpmm B Ree Table 4.3 presents a summary of the allocation percentage basis: Table 4.3 Allocation Percentage Basis Revenue Program and Rate Update Orange County Sanitation District Description Flow BOO TSS Treatment Expenditures 24% 31% 46% Plant-in-Service 55% 30% 15% CIP 44% 37% 19% Non-Assignable Costs 32% 33% 34% Table 4.4 illustrates how expenditures and offsetting revenues are allocated to flow, BOD, and TSS, based on the allocation percentage listed above. DRAFT-April 6, 2006 17 H:1C5etl'AnE_PH%VA7JOBROWRoI nue Pr mma Raxe.Ea[ Table 4.4 presents the allocation of costs to billable constituents: So Table 4.4 Functional Allocation of Costs Revenue Program and Rate Update ,y$ Orange County Sanitation District �. Functional Allocation 19, Expenditures Flow BOD TSS g o Ongoing Operating Expenses m Operating Expenses $129,308,110 24% 31% 46% As Treatment Expenditures Reserve Contributions 32% 33% 34% As All Others 9 Other Operating Expenses I New Debt Service 57,786,240 44% 37% 19% As CIP 3 Miscellaneous Capital -- 44% 37% 19% As CIP a j Rate Funded Capital Improvements -- 44% 37% 19% As CIP a Replacement Funding 9,101,807 55% 30% 15% As Plant-in-Service Bond Coverage Requirements 32,392,585 44% 37% 19% As CIP Policy Driven Rate Increases 20,982,217 32% 33% 34% As All Others Less Off-Setting Revenues 32% 33% 34% Other Operating Revenues (26,056,728) As All Others 32% 33% 34% Non-Operating Revenues (55,560,000) As All Others Intra-District Revenues — 32% 33% 34% As All Others Self-Insurance (2,599,000) 32'0 33% 34% As All Others Subtotals: $185,355,230 $ 53,521,546 $ 55,175,631 $ 56,658,053 'w 4.4 Unit Costs Residential and Commercial Sewer Service Chames Calculation Residential and commercial sewer service charges are calculated on a EDU base charge. Each residential and commercial category has a defined flow and strength (BOD and TSS) assumption. To develop sewer service charges, unit rates per unit of flow, BOD, and TSS are applied to standard flow and loading factors developed for most customer categories. a) EDU Defined Equivalents Calculation. The number of existing users was determined using a fee-based approach. The number of EDUs was determined by taking the total revenue and dividing by the Single Family Residential rate of the same year. The projected number of customers served by the District for the Fiscal Year 2006-07, identified in EDUs, is 975,123. The following table presents flow and load information from the District's plants. Table 4.5 Total Flow and Load Information Revenue Program and Rafe Update Orange County Sanitation District Description Flow(mgd) BOD Load TSS Load (ppd) (ppd) Plant 1 and 2 220 433,939 466,026 The flows and loadings per EDU treated by the District in FY 2004/05 are as follows: Table 4.6 Flow and Load per EDU Program and Rate Update Orange County Sanitation District BOD TSS Flow Concentration Concentration (flow-gpd/total (BOD-mg/L/total (TSS-mglUtotal Description EDUs) EDUs) EDUs) EDU Equivalent Calculations 226 236 253 (w/o SAWPA and IRWD) b) Total Annual Flow and Loads Calculation. Based on these flows and loadings, the totals are as follows: DRAFT-April 6, 2006 19 H:OieM10nd_PHx1M7408 Mftt1Rer wPro ..6 RM.A. Table 4.7 Total Annual Flow and Loads Revenue Program and Rate Update Orange County Sanitation District Description Flow(mgd) SOD Load (Ibs) TSS Load(Ibs) Customer Information 80,464,880 158,387,684 170,099,310 Total Annual Flow and Loads c) Unit Cost Calculation. The unit cost was calculated by taking the cost allocations for flow, BOD and TSS, and dividing it by the total annual flow and loads. Table 5 presents the unit cost per flow, BOD and TSS. Table 4.8 Unit Cost Calculation Revenue Program and Rate Update Orange County Sanitation District Flow BOD TSS Cost Allocation $53,521,529 $55,175,615 $56,658,1143 Total Flow(1,000 gal) Total B.O.D. (Ibs) Total T.S.S. (Ibs) Total Annual Flow and Loads 80,464,880 158,387,684 170,099,310 _ $ / 1,000 gals $/Ibs B.O.D $/Ibs B.O.D Unit Costs $0.67 $0.35 $0.33 d) Annual Charge per EDU Calculation. Table 4.9 Annual Charge per EDU Calculation Revenue Program and Rate Update Orange County Sanitation District Flow BOD TSS Equivalent Dwelling Unit Gal/Day B.O.D. (mg/1) T.S.S. (mg/1) Defined Flows and Loads 226 236 253 1,000 Gal/Yr. B.O.D. (Ibs)/Yr. T.S.S. (Ibs)/Yr. 83 164 176 Annual Charge per EDU $54.89 $57.19 $58.73 Total: $170.81 DRAFT-April 6, 2006 20 M IGIMnt OU -PHW740MWTw t\Rerenw PttgMM&Rab.dx 4.5 Customer Category Rates The single family residential (SFR) sewer service charge is based on typical flow and loadings for an average 3-bedroom home and serves as the base rate to calculate rates for other users. Users are charged a percentage of the SFR rate as specified in Ordinance No. OCSD-26 (OCSD-26), the Fees and Charges Ordinance. These use factors are based on the average flow and strength characteristics for the type of property, charged on a per 1,000 square-foot basis. Eg. 1: Multi-family residential with factor 0.7 Annual cost: $170.81 X 0.7=$119.57 Eg. 2: Neighborhood shopping center with factor 1.39 Annual cost: $170.81 X 1.39=$237.43 Eg. 3: Take-out restaurant with factor 3.0 Annual cost: $170.81 X 3.0=$512.43 Industrial User Sewer Service Charges The District's industrial users are charged individually based on the measured quantity of each of the billable constituents. The calculation of the charges is based on the user's flows and loads. Table 4.10 presents the unit costs that are recommended. Table 4.10 Proposed Industrial User Sewer Service Charges Revenue Program and Rate Update Orange County Sanitation District $/ 1,000 gals $1 Ibs B.O.D $/ Ibs B.O.D Unit Costs $0.67 $0.35 $0.33 4.6 Findings and Recommendations It is recommended that the District adopt a sewer service charge of$170.81 per EDU per year for FY 2006/07. In subsequent years, we recommend that the District increase sewer service charges between 11.25 percent and 14.25 percent annually, as illustrated in Table 4.11. DRAFT-April 6, 2006 21 H.UieMW -PHXWUOMMO ptUteeenm Pm mm&Ra dm Table 4.11 Projected Sewer Service Charges Revenue Program and Rate Update Orange County Sanitation District Annual Single Family Percentage Fiscal Year Residence Rate Increase 2006-07 $172.50 14.25% 2007-08 $197.00 14.25% 2008-09 $225.25 14.25% 2009-10 $256.25 13.75% 2010-11 $286.25 11.75% 5.0 CAPITAL FACILITIES CAPACITY CHARGE ANALYSIS 5.1 Introduction Capital Facilities Capacity Charges(formerly known as connection fees) are one-time fees paid at the time property is developed and connected to the Wastewater System. The fees are levied to pay a portion of the District's capital costs and for access to capacity in the Wastewater System. Currently, the District has Capital Facilities Capacity Charges of $2,890 per residential unit(three-bedroom) and $1,050 per 1,000 square feet for commercial and industrial users. Under the current industrial use ordinance, additional CFCCs, referred to as Supplemental Capital Facilities Capacity Charges, can be imposed on industrial users who place larger than average demands on the Wastewater System. Capital Facilities Capacity Charges are reviewed annually to reflect the changes in the value of the Wastewater System to which a new customer is connecting. CFCCs are designed to recover capital costs of providing capacity for new users. They may fund future capacity expansion projects. The underlying premise is to charge each new user the estimated reasonable cost of providing capital facilities necessary to provide wastewater service(i.e., require growth to pay for growth). Absent such charges, existing customers would be required to bear the burden of all capital costs, including capacity- related costs, through rates. Consequently, new customers would receive the benefit of sewer availability, without themselves paying for that capacity. Similar to the District's sewer service charges, the base CFCC is equal to the capital costs required to support the wastewater flows and loadings estimated for an average 3-bedroom single-family residence, or per Equivalent Dwelling Unit (EDU). Other residential rates are calculated relative to this base charge, based upon the assumed flows and loading. Commercial and industrial CFCCs are calculated in units of CFCC per 1,000 square feet. Permit Users are subject to a supplemental charge based on the expected flows and loadings in excess of the maximum allowed for under base commercialfindustrial CFCCs. The supplemental charge is equal to the unit cost of flow, BOD, and SS capacity. Permit DRAFT-April 6, 2006 22 H:IGleirt�_PH%W74MOD RPtVte 11 Program 6 ftWd. Users are also subject to increases in CFCCs if flows and/or loadings significantly exceed the amount of capacity previously allocated and paid for, at the same rate as the supplemental charges described above. Pursuant to an agreement with the IRWD,the IRWD is not required to pay Capital Facilities Capacity Charges. In exchange, the IRWD provides funding to the District for the construction costs of certain wastewater collection, transmission, treatment, and disposal facilities to be used by the IRWD and is obligated to make certain payments to the District for certain services arising from the Wastewater System (including any standby or availability charges). 5.2 Methodology The CFCC, as calculated for this study, evaluates future expansion related capital expenditures only. These costs will be incurred to provide available capacity for new system users.As expressed in the formula below,the CFCC is calculated by dividing the future expansion CIP costs by the total number of future connections expressed in EDUs. CFCC = Cost of Added Capacity with New Facilities Future Users(EDUs) 6.2.1 Approach and Assumptions The following assumptions were used in calculating the CFCC alternatives: • Future Facilities. The cost of future expansion facilities are projected to total $354 million through IY 2020/21, stated in 2006 dollars. The CIP used within this analysis represents the District's projected expenditures at this point in time. • Flow and Load Basis. All CFCC calculation alternatives included in this report are based upon EDU flow of 226 gallons per day(gpd). Strength characteristics are assumed to equal to 0.45lb/day BOD and 0.48 lb/day TSS, commensurate with single-family residential strength assumptions. • Available Remaining EDUs. The Center for Demographic Research projects the population with the District's service area to increase from 2.28 million in 2005 to 2.47 million by 2020. This growth rate equates to roughly 78,120 new EDUs through the planning period ending in FY 2021/22.Additionally, SAWPA is projected to purchase an additional 4 mgd of treatment capacity, beyond its current 13 mgd ownership. This additional capacity requirement equates to roughly 14,252 new EDUs. In total, 92,372 new EDU are projected to connect through the planning period. • Residential and Commercial EDUs. Based upon the District's customer billing records, approximately 58 percent of the current EDU are residential and 42 percent are commercialfindustrial. This same percentage split between residential and commercial is assumed to continue for all new EDUs connecting to the wastewater system. DRAFT-April 6, 2006 23 H1 HeMOcvE_PHM7408A Mpt1Pe U0"Mm aRefe.tlpc 5.2.2 CFCC Calculation Allocation to Billable Constituents The total expansion cost as calculated in the Capital Improvement Program was allocated to billable constituents-flow, BOD, and TSS. To accomplish this, project expenditures were assigned to treatment unit processes. Based on the capital allocation for each unit process, projected expenditures were assigned to the three billable constituent categories. For example, headwork projects are allocated 75 percent to flow, 5 percent to BOD, and 20 percent to TSS. Consequently, all headwork-related expenditures would be allocated to the flow, BOD, and TSS according to the same percentages. The allocation percentages for the headwords and all other unit processes were previously presented in Table 2.4. Table 5.1 presents the expansion CIP costs breakdown based on the allocation for all projects. Table 5.1 CIP Billable Constituents Cost Breakdown Revenue Program and Rate Update Orange County Sanitation District Total CIP Costs Flow BOD TSS Expansion Cost $364,307,038 $157,612,922 $174,074,367 $22,719,749 Percentage 100% 44% 49% 6% Allocation These capital expenditures are then allocated to residential and commercial-industrial customer categories. Residential users and commercial-industrial users are treated differently on two accounts. First, residential CFCCs are recovered on an EDU basis. Commercial-industrial CFCCs are recovered on a 1,000 square foot basis. Additionally, residential users are assumed to be responsible for a majority of the District's inflow and infiltration (I&I). During wet weather events, non-point source water enters the wastewater collection system and must be treated with all other wastewater flows at the treatment facilities. The District experiences a 2.0 peaking factor during wet weather. Much of the inflow and infiltration (I&I) enters the sewer system through the laterals connecting users to the collection systems. Based on the length of the laterals, is assumed that 99.9 percent of the length of the laterals within the Districts service area connect residential units to the sewer system. The flow cost component of the CFCC is divided by the 2.0 peaking factor. A base line factor of 1.0 is attributable to treating new wastewater flows discharged by future users. This cost is allocated between residential and commercial-industrial users based on a pro rate share of projected wastewater flows- 58 percent residential and 42 percent commercial-industrial. The flow cost component attributable to I&I, or the incremental sizing DRAFT-April 6, 2006 24 H:1Crre Wco_vHxxn740WOwpivice w Rognm&a e.dm requirements to treat for peak flows(2.0 less the base line of 1.0), is allocated wholly to residential. Consequently, half of the District's flow-related expansion costs are assumed to be attributable to providing additional capacity for future users wastewater discharges, and half of the flow-related costs are assumed to be attributable to providing additional capacity necessary to treat 181 during wet weather events as new users connect to the system. The B.O.D. and T.S.S. cost components are allocated to residential and commercial- industrial based on a pro rats share of projected loadings. The allocation of costs is presented in Table 5.2 below. This allocation methodology was adopted by the District during its last Rate Advisory Committee process. Table 5.2 Expansion Expenditure Allocation Revenue Program and Rate Update Orange Cou ty Sanitation District Total Flow B.O.D. T.S.S. Expansion Expenditures $354,307,038 $157,512,922 $174,074,367 $22,719,749 Residential Total Flow B.O.D. T.S.S. Allocated Expenditures $234,962,303 $120,234,541 $101,482,519 $13,245,243 Percentage Share of Total Expenditures 66% 76% 58% 58% Commercial-Industrial Total Flow B.O.D. T.S.S. Allocated Expenditures $119,344,735 $37,278,381 $72,591,848 $9,474,506 Percentage Share of Total Expenditures 340)6 24% 42% 42% Residential Capital Facilities Capacity Charge Calculation. Unit costs per EDU for flow, BOD, and TSS were developed by dividing the costs for each functional cost category by the number of projected EDUs. The calculation is shown below in Table 5.3: Table 6.3 Residential CFCC Calculation Revenue Program and Rate Update Orange County Sanitation District Total Flow B.O.D. T.S.S. Expansion Projects $234,962,303 $120,234,541 $101,482,519 $13,245,243 EDUs 53,851 53,851 53,851 53,851 CFCC per EDU $4,363 $2,233 $1,884 $246 Commercial-Industrial Capital Facilities Capacity Charge Calculation. DRAFT-April 6, 2006 25 H TIIeM10.O_PHxwmo8A0oNptVteven.Program d ReWd. Unit costs per 1,000 square feet for flow, BOD, and TSS were developed by dividing the costs for each functional cost category by the number of projected 1,000 square feet of future commercial-industrial users. The calculation is shown below in Table 5.4: Table 5.4 Commercial-Industrial CFCC Calculation Revenue Program and Rate Update Orange County Sanitation District Total Flow B.O.D. T.S.S. Expansion Projects $119,344,735 $37,278,381 $72,591,848 $9,474,506 1,000 sq ft 91,340 91,340 91,340 91,340 CFCC per 1,000 sq ft $1,307 $408 $795 $104 The CFCC methodology presented within this report reflects an update to the District's Capital Improvement Program and growth projections only. No change to the CFCC methodology is proposed. 6.2.3 Supplemental Capital Facilities Capacity Charge As discussed above, permit users that exceed designated flow and loading discharges are subject to a supplemental capital facilities capacity charge (SCFCC). The SCFCC is intended to recover the cost of providing capacity to these customers, not recovered through the initial CFCC that is imposed upon the industrial user at the time it is connected to the wastewater system. The initial industrial CFCC is collected at the time of building permit application, by the local cities and sanitary districts that are tributary to the OCSD system. It is based on the square footage of the new improvements on the site. Since there are 23 cities/sanitary districts spread over the 471 square mile OCSD service area, this is the most expeditious way for both the industry to pay and OCSD to collect the CFCC. However, since the costs that the CFCC is meant to pay for are incurred and accounted for based on the flow and strength of the wastewater treated, there has to be an adjustment to reconcile the difference between the levied square footage charge and the actual costs incurred that are related to the flow and strength of the treated wastewater. In addition, industrial users typically have a higher flow and strength wastewater than the initial square footage charge is meant to compensate for. The SCFCC reconciles these differences. It is commensurate with a rental rate, in which the user is required to pay an equitable rental charge for capacity used within the system beyond the initially purchased capacity. The alternative would be for each industry to apply directly to OCSD for an up-front CFCC charge based on the anticipated flow and strength of the wastewater that they will discharge into the system. For an industry that has a high flow and/or strength discharge into the system, an up front fee could be in the millions of dollars. In addition, since industrial flows and strengths can vary considerably from year to year, based on the business climate, an up-front fee would not accurately capture the actual impact on the system. Thus, most of the time the industry would be either over paying or under paying. DRAFT-April 6, 2006 26 H:�Ctiutl'UttE_PH%4N1apBr10pWp�UW¢nue Pr .B ftWdx The SCFCC allows the industry to only pay for the capacity they require and to do it on a yearly basis. This makes the charge more accurate and reduces the large up-front cash outlay that would be necessary for a one time CFCC. The SCFCC is calculated based on the same methodology as the CFCC. The District's total projected expansion related capital expenditures are divided by the total number of future EDUs served with the expansion the wastewater system. These costs are then amortized over a thirty-year period at a 5 percent interest rate. Finally, amortized costs are divided by the base flow and loadings contributed per EDU. The SCFCC calculation is shown in Table 5.5. Like the CFCC this is a significant increase over the current SCFCC. The increase reflects the update to the District's CIP,which includes shifts in costs, the flow, B.O.D., and T.S.S. Table 5.5 Supplemental Capital Facilities Capacity Charge Calculation Revenue Program and Rate Update Orange County Sanitation District Total Flow B.O.D. T.S.S. Expansion Projects $354,307,038 $157.512,922 $174,074,367 $22,719,749 EDUs(" 92,372 92,372 92.372 CFCC per EDU $1,705 $1,884 $246 Amortized CFCCoI $110.93 $122.59 $16.00 — 226 0.45 0.48 Per Gallon Per lbs. Per lbs. SCFCC $0.001344 $0.754730 $0.091720 (1)Total EDUs of future capacity (2)Amortized at 50/6 for 30 years 5.3 Findings and Recommendations It is recommended that the District adopt the residential CFCC, commercial-industrial CFCC, and SCFCC as presented above. The recommended charges are presented in Table 5.6. DRAFT-April 6, 2006 27 H:1Gim!*C$CVHXNA740MWVipt�PM..&aata.Ex Table 6.6 Recommended CFCC and SCFCC Revenue Program and Rate Update Orange County Sanitation District Total Flow B.O.D. T.S.S. Per EDU Residential CFCC $4,363 $2,233 $1,854 $246 Per 1,000 sq k Commercial- Industrial CFCC $1,307 $408 $795 $104 Per Gallon Per lbs. Per lbs. SCFCC $0.001344 $0.754730 $0.091720 This analysis assumes that the CFCC and SCFCC will be escalated each year to reflect the current value of the facilities or the current cost of capital projects. The District can apply an annual cost escalator based on such commonly accepted price indicators as the Engineering News Record Construction Cost Index for Los Angeles, or the Consumer Price Index (CPI). DRAFT-April 6, 2006 Y6 NXHC 10ad-PHx1M74OpgOplRptVi¢y¢wg Pm Mm 3Rele.d. ORDINANCE NO. OCSD-30A ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES, REVISED TABLE B RE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS, AND REVISED TABLE E RE ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMTTEES, 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-26. WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-2426XX, establishing annual Sanitary Sewer Service Charges for all uses, establishing Capital Facilities Capacity Charges to be imposed when properties either newly- conned 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 -- ego--' the existing 04REIRAP 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 WSSS-BRH:p):201660:0620M 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 wSBS-BRH:pj:20166004W105 2 Relative to Reimbursement Agreements 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 1 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 VJS&S-BRH:pl:201660:0C20105 3 engineering needs of the District, and hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. A. That the former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 at 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 VMS-BRH:pj:201660:0020/05 4 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 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. WSSS-BRH:p1:201830:04r21M 5 J. That the Sanitary Sewer Service Charges established and levied by this Ordinance are to allow the District to recover the reasonable costs 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 XIIID. 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- 264, 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 MID are not applicable. WS&S-BRH:pj201MOWO0/OS 6 P. That the District's previous and present Capital Facilities Capacity Charges Ordinances, included] authority for the District to levy an 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 permiftee, 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 sec.), 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 an oOrdinance Ne OGSD-0'f_, as - ^, Eestablishing 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 the oOrdinance --No QGSD 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, WS&S-BRH:pj201660:04R0105 7 source control, or wastehauler use of the District's facilities and for the administration and implementation of permit and fee processing, noncompliance 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, OCSD-22, and OCSD-24 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 Scone. 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 applicable single family residential rate shown in Table A is multiplied by the applicable percentage figure shown on Table B with respect to the particular use classification to arrive at the wSBS-BRH:pj201660:0420105 8 annual Sanitary Sewer Service Charge rate per 1,000 square feet for the commercial or industrial user. 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. 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 2.03B 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 wSBS-BRH:pj:201%0:G4120/05 9 error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper land use category; or (3) A clerical error has been made. D. Limitations Period. Applications for rebates and refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097, allowing for refunds for a period of four (4) years from the date of payment of the second installment of the bill claimed to be either inequitable or incorrect. E. Determination. All applications for rebates or refunds of the 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 2.0513 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. M&S-BRH:pj:201660.04/20105 10 B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner has underpaid annual Sanitary Sewer Service Charges payable to District, District, within four (4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll; (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 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 2907-08 SFR $100.00 $115.00 $151.00 $172.50 $247.90 MFR $ 70.00 $ 80.50 $105.70 $120.75 Wi.90 0 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 the DistrictOGSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. VMS-BRH:pj:201660:04rW5 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 00/0 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption Addy. 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"/6 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% VMS-BRH:pj:=660:0g20/05 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 530/6 45 Marinas 53% 88 Low Flow Shopping Center 53% 3 Two or More Residences 70°/a 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% 56 Motels 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% 116 Governmental Use Vacant/Develop. 82% 19 SFR with 1or 2 rental units 85% 34 Dormitory 97% 42 Hospital 97% 43 Hotel 97% 0 Conversion-C/1, Rural PC 100% 2 One Residence 100% VMS-8RH:nl:201 s60:oarzoro5 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 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 1000/0 106 Factory 1000/0 119 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% 224 Nightclub 200% 90 High Flow Shopping Center 226% 76 Restaurant—Take Out 300% 77 Restaurant—Coffee Shop 6000% 78 Restaurant—Dinner House 6000/0 79 Restaurant—Conversion from SF 600% 29 Conventional Car Wash 796% 223 Laundromat 1,800% 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- 3RH:pj201660:04rXW 14 i 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- conned 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. 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 wSBS-BRH:p1:201660',0420M 15 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 the District's Wastewater Discharge Regulations, eFas-araegded,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. VMS-BRH:p1:201660:042M 16 Section 3.05. Capital Facilities Capacity Charge: 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 Facilties Capacity Charge in the amount for the applicable category of use set forth on Table C, below. WS&S-SRH'p1:201660'0400/05 17 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 $ 210.00' Average Demand Per 1,000 square feet $1,310.001 High Demand' Per 1,000 square feet $3,110.001 Single Family Residential (SFR) ' % of Base Base Charge 5+ Bedrooms (Per Unit) 1.39 $6,060.00 4 Bedrooms (Per Unit) 1.19 $5,190.00 3 Bedrooms (Per Unit) 1.00 (Base) $4,360.00 2 Bedrooms (Per Unit) 0.81 $3,530.00 1 Bedroom (Per Unit) 0.62 $2,700.00 Multi-Family Residential (MFR) ' % of Base Base Charge 4+ Bedrooms (Per Unit) 1.08 $4,710.00 3 Bedrooms (Per Unit) 0.89 $3,880.00 2 Bedrooms (Per Unit) 0.70 $3,050.00 1 Bedroom (Per Unit) 0.50 $2,180.00 Studio (Per Unit) 0.32 $1,400.00 Supplemental CFCC for Permit Users, includes 5% cost of funds. Flow, gallons per day $0.001344 BOD, pounds per day $0.754730 SS, pounds per day $0.091720 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4.360.00; 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. 2Low 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. 'High 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. 'All 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. WSBS-BRH:pj201660:D420/05 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 Ordinanse IJa Article 3 of the District's Wastewater Regulations, 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 the District's Wastewater Regulationsssessev. 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 WSBS-BRH:pj:201660:04120105 19 discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. G. Each Existing SPD shall have a baseline of 25,000 gpd, 150 pounds per day of SOD 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 $0,001344 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 WS&S-BRH:pj:201660:04120105 20 over its established baseline authorization, whichever is lesser; or (ii) an increase 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 3.1 OA above: TABLE D SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge Flow Gallons Per Day $0.001344 BOD Pounds Per Day $0.754730 SS Pounds Per Day $0.091720 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 $6004004 0.001344 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 new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table C for the prior category of use. wssS-BRH:Pg2015s0:MM105 21 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. M&S-BRH:pj:201660:04120/05 22 ARTICLE IV MISCELLANEOUS CHARGES AND FEES RELATING TO 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 (1) 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 91, 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 Regulation , 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 amended, the charges for use are hereby established for wastehaulers as set forth in Table H, below. W885-BRH:pj:201660:0420/05 23 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 . wSBS-BRH:pj:2016%04/20/05 24 TABLE E ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES Permit Fees Charges A. Class I Wastewater Discharge Permit $785.00/year B. Class II Wastewater Discharge Permit $170.00/year C. Special Purpose Discharge Initial Permit Issue $1,050.00/year Nonrefundable Deposit for First 1 Million As Defined in Gallons— New Permit Only Table G Special Purpose Discharge Permit Renewal $750.00/year D. Wastehauler Discharge Permit $190.00tyear 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 $102.00/event K. After Hours Discharge — Emergency $165.00.00/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 wsaS-BRH:g2o1BB¢o4aoroe 25 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.D0/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 M&S-BRH:P7:201660:042QiO5 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 WSBS-BRH:p1:201660:04/20/05 27 i 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 F"'.-,--�.GZ N Flow(') $316.38 $577.30 $637.65 $728.40 $773.3 B.O.D. 1-) $216.13 $270.68 $288.50 $329.61 $330.63 S.S. ("') $207.35 $414.27 $432.14 $493.72 $47-3.60 Special Purpose Dischame Permit FY 2003-04 FY 2004-05 FY 2005-06 FY 200B-07 FY-2407-M Flow(`) $316.38 $577.30 $637.55 $728.40 $772.2 B.O.D. (") $216.13 $270.68 $288.50 $329.61 $330.45 S.S. ("`) $207.35 $414.27 $432.14 $493.72 $47.2.6 (') Flow Per million gallons of Flow (") B.O.D. Per thousand pounds of Biochemical Oxygen Demand (—) S.S. Per thousand pounds of Suspended Solids Al 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. VMS-8RH:pi201e60:0420N5 28 TABLE H WASTEHAULER CHARGES FOR USE Wastehauler Fees Charges Charge for Use—Waste originating $0.05/gallon of within Orange County truck capacity Charge for Use —Waste originating $0.12/gallon of outside Orange County truck capacity Waste hauled from a source that is not within the District's service area is prohibited unless authorized by the General Manager. Service area is defined as aan the area the District has an agreementaareements to serve. VMS-BRH:pf2o1B80:042o/OS 29 I ARTICLE V MISCELLANEOUS Section 5.01. Aoolication of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the District's C)rdinanse NO Wastewater Discharge Regulations for udse of District's sSewage f€acilities, including provisions for payment of charges or fees related thereto; District's oOrdinance No. ^ amended e—€stablishing 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. Severabilitv. 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 July 1, 2006. Section IV. Repeal. Ordinance No. OCSD-26 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 n newspaper of general circulation as required by law. wsaS-BRn:p1201660:0420/05 30 Lors ED AND ADOPTED by a vote of not less than two-thirds of the Board of Dithe Orange County Sanitation District at a Regular Meeting held May 23; CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: SECRETARY, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT-BRADLEY R. HOGIN. -GENERAL COUNSEL VMS-BRH:pj:201BBo:BC20N5 31 ORDINANCE NO. OCSD-30B ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES, REVISED TABLE B RE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS, AND REVISED TABLE E RE ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITEES 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-26. WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-2426XX, 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 mast the ex 6fing QFdisanGe 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 It: SANITARY SEWER SERVICE CHARGES Section 2.01, Purpose and Scope Section 2.02, Annual Sanitary Sewer Service Charge N585-BRH:p1:201650:00/20105 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 wSas-BRH,20166o.0a/20ro5 2 Relative to Reimbursement Agreements 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 WB86-BRH:pi201660:04/20/05 3 engineering needs of the District, and hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. A. That the former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 at 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 VMS—BRH:pJ:20166o:Be20M5 4 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 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. wSSS-BRH:pl'201660:04/20105 5 J. That the Sanitary Sewer Service Charges established and levied by this Ordinance are to allow the District to recover the reasonable costs 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 XIIID. 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- 264, 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. WSBS-BRH:p1:201660:04/20105 6 P. That the District's previous and present Capital Facilities Capacity Charges Ordinances, include[d] authority for the District to levy an 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, at 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 an oGrdinance Ne. 9659 0'F_, as ^��-o.,,a..�^ �a, 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 the oOrdinance_ 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, wSBS-BRH:pj:201660:04120/05 7 source control, or wastehauler use of the District's facilities and for the administration and implementation of permit and fee processing, noncompliance 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, OCSD-22, and OCSD-24 are reaffirmed and readopted hereat, except to the extent that they have been specifically superseded or otherwise amended by speck 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 applicable single family residential rate shown in Table A is multiplied by the applicable percentage figure shown on Table B with respect to the particular use classification to arrive at the W58S—BRH'.pj201660'.Oa20105 8 annual Sanitary Sewer Service Charge rate per 1,000 square feet for the commercial or industrial user. 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. 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 2.0313 and 2.03C below, provided an inequity is established or a billing error is proven, as specked 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 WS&S-SRH:p1:201660:0420105 9 error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper land use category; or (3) A clerical error has been made. D. Limitations Period. Applications for rebates and refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097, allowing for refunds for a period of four (4) years from the date of payment of the second installment of the bill claimed to be either inequitable or incorrect. E. Determination. All applications for rebates or refunds of the 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. WS&S-BRH:pj201660:04M/05 10 B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner has underpaid annual Sanitary Sewer Service Charges payable to District, District, within four (4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll; (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 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-01I, as amended. TABLE A ANNUAL SEWER SERVICE USER FEES RESIDENTIAL USERS FISCAL YEAR 2003-04 2004-05 2005-06 2006-07 249749 SFR $100.00 $115.00 $151.00 $165.80 $217.00 MFR $ 70.00 $ 80.50 $105.70 $116.06 $494.90 0 SFR = SINGLE FAMILY RESIDENTIAL MFR = MULTI FAMILY RESIDENTIAL All properties located within Revenue Area No. 14 pay no annual service fees. District costs relating to providing service to these properties are billed by the DistrictACSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. WSSS-BRH:p1:201660:0420/05 11 TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1.000 SF or Unft 1 Vacant Land Parcel 0% 5 Common Area Parcel 0% 6 "Hold" Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0% 124 Oil/Mineral Rights 0% 125 Mineral Rights Equipment 0% 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption Add'I. 0% 666 Unassigned Vacant 0% 777 Septic Tank Property 0% 112 Steel Building 7% 113 Mini-Warehouse 7% 58 Nurseries (Plants) 10% 100 Drive-In Theater 10% 44 Lumber/Constr. Material Yard 17% 71 Parking Garage 17% 72 Paved Parking Lot 17% 110 Warehouse—Single Tenant 17% 111 Warehouse—Mufti Tenant 17% 115 Recreational Vehicle Storage 17% 116 Truck Terminal 17% 33 Church Buildings 20% 94 Department Store 23% 95 Discount Store 23% 96 Unattached Single Store 23% 97 Strip Store 23% 74 Recreational Vehicle Park 27% 36 Financial Buildings 27% 40 Health Club 29% 68 High Rise Office 30% 21 Automobile Dealership 41% 22 Auto Repair Shop 41% 23 Automotive Service 41% 24 Used Car Lot 41% 39 Golf Course 41% 57 Motorcycle/Small Vehicle Building 41% 83 Automotive Service Station 41% VJ$&$-aRH:pj:201660:04/20/05 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 700% 18 Developed with a Mix of Forms 70% 63 Low Rise Retirement Building 70% 64 High Rise Retirement Building 70% 56 Motels 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 for 2 rental units 85% 34 Dormitory 97% 42 Hospital 97% 43 Hotel 97% 0 Conversion-C/1, Rural PC 100% 2 One Residence 1000/0 WS&S-BRH:pi:201660:04/20105 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 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 1000/0 888 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% 224 Nightclub 200% 90 High Flow Shopping Center 226% 76 Restaurant—Take Out 300% 77 Restaurant—Coffee Shop 600% 78 Restaurant—Dinner House 6000/6 79 Restaurant—Conversion from SF 6000A 29 Conventional Car Wash 796% 223 Laundromat 1,8000/0 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-BRH:pj201650:04120105 14 i 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- conned 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. 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 wu"8S-BRH:p1:201660D4MW 15 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 the District's Wastewater Discharge Regulations, OF 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. wssS-BRH,pj:201660:04rz0ro5 16 Section 3.05. Capital Facilities Capacity Charge: 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-BHH:pj:201660:04rzo05 17 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 $ 210.001 Average Demand' Per 1,000 square feet $1,310.00' High Demand' Per 1,000 square feet $3,110.00' Single Family Residential (SFR) ' % of Base Base Charge 5+ Bedrooms (Per Unit) 1.39 $6,060.00 4 Bedrooms (Per Unit) 1.19 $5,190.00 3 Bedrooms (Per Uri 1.00 (Base) $4,360.00 2 Bedrooms (Per Unit) 0.81 $3,530.00 1 Bedroom (Per Unit) 0.62 $2,700.00 Mufti-Family Residential (MFR) ` % of Base Base Charge 4+ Bedrooms (Per Unit) 1.08 $4,710.D0 3 Bedrooms (Per Unit) 0.89 $3,880.DO 2 Bedrooms (Per Unit) 0.70 $3,050.D0 1 Bedroom (Per Unit) 0.50 $2,180.00 Studio (Per Unit) 0.32 $1,400.00 Supplemental CFCC for Permit Users, includes 5% cost of funds. Flow, gallons per day $0.001344 BOD, pounds per day $0.754730 SS, pounds per day $0.091720 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4.360.00;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. zLow 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. 'High Demantl 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. 4A11 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. WSBS-BRH:pj201660:0420/O5 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 9rdiRRRse-NA Oren n, as ended, Article 3 of the District's Wastewater Regulations, 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 ^fa'^ the District's Wastewater Regulationsccesser. 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 wSBS-BRH:pl:201660:04120/05 19 discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. 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. 1. 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 $0.001344 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 VJ58S-BRH:py201660:04/20/05 20 over its established baseline authorization, whichever is lesser; or (ii) an increase 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 3.1 OA above: TABLE D SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge Flow Gallons Per Day $0.001344 BOD Pounds Per Day $0.754730 SS Pounds Per Day $0,091720 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 0.001344 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 new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Table C for the prior category of use. WSBS-8RH:PI2016W:0420M5 21 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. WS&S-BRH:p1:201660:0420/05 22 ARTICLE IV MISCELLANEOUS CHARGES AND FEES RELATING TO 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 01, asamended, 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 QFdinanne No QGSM 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 amended,adopted by OFdqnaAre Isle. QGSD 01, as the charges for use are hereby established for wastehaulers as set forth in Table H, below. WMS-BRH'.pi.201WO4120/05 23 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 Ord nanne Ne. QGSQ 01, as aFneRde-I WSBS-BIRKP1:201660:0420105 24 TABLE E ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES Permit Fees Charges A. Class I Wastewater Discharge Permit $785.00/year B. Class II Wastewater Discharge Permit $170.00/year C. Special Purpose Discharge Initial Permit Issue $1,050.00/year Nonrefundable Deposit for First 1 Million As Defined in Gallons— New Permit Only Table G Special Purpose Discharge Permit Renewal $750.00/year D. Wastehauler Discharge Permit $190.00/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 $102.00/event K. After Hours Discharge— Emergency $165.00.00/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 VMS-BRH:p1:201660:0420/05 25 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 M&S-BRH:pj:201660:04W05 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-BRH:pj:201650:06 0105 27 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 P"1997-^' 6 Flow(") $316.38 $577.30 $637.55 $700.03 S7-72 22 B.O.D. 1-) $216.13 $270.68 $288.50 $316.77 $330.53 S.S. (...) $207.35 $414.27 $432.14 $474.49 $47350 Soecial Purpose Discharge Permit FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY-2407.08 Flow(•) $316.38 $577.30 $637.55 $700.03 $772 22 B.O.D. (••) $216.13 $270.68 $288.50 $316.77 $230.53 S.S. (•••) $20T35 $414.27 $432,14 $474.49 $47350 (') 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. M&S-aRH:pj:201660:0420/05 28 TABLE H WASTEHAULER CHARGES FOR USE Wastehauler Fees Charges Charge for Use—Waste originating $0.05/gallon of within Orange County truck capacity Charge for Use—Waste originating $0.12/gallon of outside Orange County truck capacity Waste hauled from a source that is not within the District's service area is prohibited unless authorized by the General Manager. Service area is defined as anythe area the District has an agreementagreemeats to serve. wsaS-HRH:pi:201660:0U2oros 29 ARTICLE V MISCELLANEOUS Section 5.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the District's Qrdiaaase-No. Wastewater Discharge Regulations for uUse of District's sSewage f€acilRies, including provisions for payment of charges or fees related thereto; District's o9rdinance " ^�.o �S^ 21, as amended, e—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. Severabil tv. 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 July 1, 2006. Section IV. Repeal. Ordinance No. OCSD-26 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. W58S-BRH pj201660:0920105 30 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Dir tors of the Orange County Sanitation District at a Regular Meeting held May 26, 20 CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: SECRETARY, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRISTBRADLEY R. HOGIN. -GENERAL COUNSEL wsas-BRH:pj:zoieeo:arzoAs 31 BOARD OF DIRECTORS Meeting Date To 9d.of Dir. 05/24/06 AGENDA REPORT Item Number Them Nu zs Orange County Sanitation District FROM: Lorenzo Tyner, Director of Finance Originator: Mike White, Controller SUBJECT: INCLUDING ANNUAL SANITARY SEWER SERVICE CHARGES ON THE 2006-07 PROPERTY TAX BILL GENERAL MANAGER'S RECOMMENDATION a. Adopt Resolution No. OCSD 06-13A, directing the County Tax Collector- Treasurer to include sanitary sewer service charges on the 2006-07 property tax bill. -- - - - OR --- -- b. Adopt Resolution No. OCSD 06-13B, directing the County Tax Collector- Treasurer to include sanitary sewer service charges on the 2006-07 property tax bill. SUMMARY Section 5473 of the California Health & Safety Code provides that sanitary sewer service charges may be collected as a separate line item on the annual property tax bill. The District has utilized this method of fee collection since the inception of these fees. The two principal benefits of this collection method are that the District does not need to develop or fund a utility billing division, and that failure to pay these fees results in a lien against the property, so all fees are ultimately received. The Code requires a new Resolution from the District directing the County Tax Collector to collect these fees every time the rates change. The rates for FY 2006-07 are scheduled to be adopted at this May Board meeting by approval of either Ordinance No. OCSD-30A or Ordinance OCSD-3013. Resolution No. OCSD 06-13A matches the rates within Ordinance No. OCSD-30A and Resolution No. OCSD 06-13B matches the rates within Ordinance No. OCSD-30B. PRIOR COMMITTEE/BOARD ACTIONS Resolution No. OCSD 05-20 directing the county tax collector to include the sewer service fees for FY 2005-06 was adopted at the regular adjourned meeting held July 20, 2005. Ordinance No. OCSD-26 containing the sewer service fee rates for the FY 2005-06 fiscal year was adopted at the May 25, 2005 meeting. H WePtW�fte aReFsQO a rd M.ntle a M>^u+ReprleW5C8 zs Pm Te,911180]aoc ae, W20M Page 1 PROJECT/CONTRACT COST SUMMARY Y The County Tax Collector-Treasurer charges us for a copy of the database, updates, and for minor programming. The County Auditor charges us, via deduction from fees collected, for the actual collection expenses. Annual collections costs are 0.3 percent of the total sewer service fee, or approximately $400,000. BUDGETIMPACT ® This item has been budgeted. (Line item: ) ❑ This item has been budgeted, but there are insufficient funds. ❑ This item has not been budgeted. ❑ Not applicable (information item) ADDITIONAL INFORMATION None. ALTERNATIVES Collect these fees with OCSD staff and a direct billing program. This is a more costly alternative and one without a method to enforce payment. CEQA FINDINGS N/A ATTACHMENTS 1. Resolution No. OCSD 06-13A 2. Resolution No. OCSD 06-13B H WpnagendgnB dAgenda Readr!SVOW Based Agenda&Agenda Reeane=06%1m 25 PWTa„ ill CB 7ddE ...ad worn Page 2 RESOLUTION NO. OCSD 06-13A DIRECTING THE COUNTY TAX COLLECTOR TO COLLECT SANITARY SEWER SERVICE CHARGES ON PROPERTY TAX BILLS A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT DIRECTING THE COUNTY TAX COLLECTOR TO INCLUDE SANITARY SEWER SERVICE CHARGES ON FISCAL YEAR 2006-07 PROPERTY TAX BILLS AND REPEALING RESOLUTION NO. OCSD 05-20 The Board of Directors of the Orange County Sanitation District does hereby find: A. By adoption of Ordinance No. OCSD-30A, the Board of Directors elected to adopt, impose, and collect rates and charges for sanitary sewer services and facilities provided by the District and established procedures related thereto. The sanitary sewer service charges were set by Ordinance No OCSD-30A. B. California Health & Safety Code Section 5473 provides that such charges, as adopted by District Ordinance, may 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 separate from, its general taxes. C. As part of the budget preparation process, the District's Management has prepared financial and engineering reports, setting forth financial projections for providing the wastewater collection, treatment, and disposal services and facilities to the District's service areas for Fiscal Year 2006-07. The charges established by Ordinance No. OCSD-30A reflect an allocation of the costs of operation and maintenance, such that the charges do not exceed the estimated reasonable costs to provide the wastewater collection, treatment, and disposal services and facilities, and the revenues received are not used for any other purpose. D. Pursuant to California Constitution Article XIIID (Proposition 218), as of July 1, 1997, sanitary sewer service charges may be deemed to be charges for property- related services. The sanitary sewer service charges set by Ordinance No. OCSD-30A comply with the provisions of Article XIIID, in that they do not exceed the cost to the District to provide the service and facilities. The charges are imposed exclusively to finance the capital costs, maintenance, and operating expenses of the District's sewer facilities. NOW,THEREFORE,the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: That the rates and charges set forth in Ordinance No. OCSD-30A are affirmed herein by the Board of Directors, as consistent with the findings hereinabove stated, for Fiscal Year 2006-07, in the following amounts: 1 Annual Sanitary Sewer Service User Fees Residential Users Fiscal Year 2006-07 SFR $172.50 MFR $120.75 SFR = Single Family Residential MFR = Multi-Family Residential All properties located within Revenue Area 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. Section 2: That pursuant to California Health & Safety Code Section 5473, the County Tax Collector is hereby ordered and directed to include sanitary sewer service charges, as adopted by Ordinance No. OCSD-30A, in the same manner, by the same persons and at the same time as, together with, and not separately from, the general taxes; and that such sanitary sewer service charges be included in the annual property tax bills for Fiscal Year 2006-07. Section 3: That pursuant to California Health & Safety Code Section 5473, this Resolution shall remain in full force and effect until amended or repealed, or until such time as the rates of sanitary sewer service charges, as established by Ordinance No. OCSD-26, are changed by increasing the annual rate. Section 4: That the General Manager, or his designee, be, and is hereby authorized and directed, to execute any necessary documents or agreements to effect the order set forth in Section 2 herein. Section 6: That Resolution No. OCSD 05-20 is hereby repealed. PASSED AND ADOPTED at a regular meeting held May 24, 2006. Chair ATTEST: Board Secretary HmeptVmV2m\ fte\ordinanc *cSD 06-1 MAW 2 1 RESOLUTION NO. OCSD 06-13B DIRECTING THE COUNTY TAX COLLECTOR TO COLLECT SANITARY SEWER SERVICE CHARGES ON PROPERTY TAX BILLS A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT DIRECTING THE COUNTY TAX COLLECTOR TO INCLUDE SANITARY SEWER SERVICE CHARGES ON FISCAL YEAR 2006-07 PROPERTY TAX BILLS AND REPEALING RESOLUTION NO. OCSD 05-20 The Board of Directors of the Orange County Sanitation District does hereby find: A. By adoption of Ordinance No. OCSD-30B, the Board of Directors elected to adopt, impose, and collect rates and charges for sanitary sewer services and facilities provided by the District and established procedures related thereto. The sanitary sewer service charges were set by Ordinance No OCSD-30B. B. California Health & Safety Code Section 5473 provides that such charges, as adopted by District Ordinance, may 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 separate from, Its general taxes. C. As part of the budget preparation process, the District's Management has prepared financial and engineering reports, setting forth financial projections for providing the wastewater collection, treatment, and disposal services and facilities to the District's service areas for Fiscal Year 2006-07. The charges established by Ordinance No. OCSD-30B reflect an allocation of the costs of operation and maintenance, such that the charges do not exceed the estimated reasonable costs to provide the wastewater collection, treatment, and disposal services and facilities, and the revenues received are not used for any other purpose. D. Pursuant to California Constitution Article XIIID (Proposition 218), as of July 1, 1997, sanitary sewer service charges may be deemed to be charges for property- related services. The sanitary sewer service charges set by Ordinance No. OCSD-30B comply with the provisions of Article XIIID, in that they do not exceed the cost to the District to provide the service and facilities. The charges are imposed exclusively to finance the capital costs, maintenance, and operating expenses of the District's sewer facilities. NOW, THEREFORE,the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: That the rates and charges set forth in Ordinance No. OCSD-30B are affirmed herein by the Board of Directors, as consistent with the findings hereinabove stated, for Fiscal Year 2006-07, in the following amounts: 1 l Annual Sanitary Sewer Service User Fees Residential Users Fiscal Year 2006-07 SFR $165.80 MFR $116.06 SFR = Single Family Residential MFR = Multi-Family Residential All properties located within Revenue Area 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. Section 2: That pursuant to California Health & Safety Code Section 5473, the County Tax Collector is hereby ordered and directed to include sanitary sewer service charges, as adopted by Ordinance No. OCSD-30B, in the same manner, by the same persons and at the same time as, together with, and not separately from, the general taxes; and that such sanitary sewer service charges be included in the annual property tax bills for Fiscal Year 2006-07. Section 3: That pursuant to California Health & Safety Code Section 5473, this Resolution shall remain in full force and effect until amended or repealed, or until such time as the rates of sanitary sewer service charges, as established by Ordinance No. OCSD-26, are changed by increasing the annual rate. Section 4: That the General Manager, or his designee, be, and is hereby authorized and directed, to execute any necessary documents or agreements to effect the order set forth in Section 2 herein. Section 6: That Resolution No. OCSD 05-20 is hereby repealed. PASSED AND ADOPTED at a regular meeting held May 24, 2006. Chair ATTEST: Board Secretary H:WeptUnV20\w W0rd1nanws10CSD 06134.dw 2 A`fk r'aVe County Sanitation Distri l alifarnia r l i Table of Contents Comprehensive Financial Report Executive Summary......................................................1 Budget Review Section1 —Budget Review Summary.................................................................................1 Section 2—Operating Budget Review Chart of the Cost per Million Gallons by Department—Budget and Actual.............t Chart of the Net Expenses by Major Category—Budget and Aclual.......................1 Divisional Contributions to Gallonage Charge ........................................................2 Comparison of Expenses by Department...............................................................3 Summary of Collection, Treatment, and Disposal Expenses by Major Category.....4 .. Summary of Major Revenues.................................................................................5 Summaryof Treatment and Disposal Revenues....................................................5 ., Summary of Collection, Treatment, and Disposal Expenses by Line Rom..............6 Summary of Collection, Treatment, and Disposal Expenses by Process................8 Chartof Staffing Trends.........................................................................................9 Section 3—Capital Improvement Program Budget Review Capital Improvement Program Graphs by Type and Funding Source.....................1 Summary of Capital Improvement Construction Requirements- Current Year.......2 Summary of Capital Improvement Construction Requirements- Project Life.........6 Section 4— Capital Facilities & Debt Service Budget Review Capital Facilities Budget Review ............................................................................1 DebtService Budget Review..................................................................................1 Section 5—Self Insurance Budget Review General Liability and Property Fund Budget Review...............................................1 Workers'Compensation Fund Budget Review.......................................................2 Quarterly Treasurer's Report........................................................................................1 Quarterly SWAP Report..............................................................................................1 Quarterly COP Report.................................................................................................1 Ym FY 2005-06 Third Quarter Comprehensive Financial Report v r r r W This Page Intentionally Left Blank r r r V 4 Ir r V W Executive Summary Consolidated Financial Report for the Third Quarter Ended March 31, 2006 In prior years, staff has provided the Board with various quarterly reports. To provide a more comprehensive review, staff has consolidated four of these reports into a Consolidated Financial Report. Included in this consolidated report are the following w quarterly financial reports for the period ended March 31, 2006: • Quarterly Financial Report; Section 1 of this consolidated report provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the quarter ended March 31, 2006. Contained within this Quarterly Financial Report are budget summary reviews of the Collections, Treatment & Disposal Operations, the Capital Improvement Program, the capital facilities and debt service funds, and the self-insurance funds. Various detail information can be found in this report. In summary: a) Most major expense categories are anticipated to be at or below budget: b) Major revenues are below the 75 percent level due to the timing of property tax distributions. However, it is anticipated that total revenues will be at .. budget at year-end. c) Treatment Costs: As indicated within the Overview Section of this report, 68.1 percent, or $77.38 million of the FY 2005-06 net joint operating budget of$113.69 million, has been expended. Net operating costs have increased $2.9 million, or 3.9 percent in comparison with the same period last year primarily due to the net increase in personnel services of$4.27 million and in chemicals of$1.5 million. Salaries and benefits have increased due to the actual staff increase of 5 employees as of March 31, along with the increases due to annual range adjustments, merit increases, and the resulting impacts on the percentage increases in employee benefits. The increase in chemicals is attributed to the increase in the cost of chemicals. The total cost per gallon is approximately$1,211 on flows of 63.92 billion gallons, or 233.28 million gallons per day. This level is relatively unchanged from the prior year. A further description of these costs and benchmarking with other agencies is contained on Section 1 — Page 5 and 6. Page 1 W 2005-06 Third Quarter Review d) Overall, the capital outlay costs of the Capital Improvement Program (CIP) 'e are expected to be $239.9 million, or 86.6 percent of the budget. • Quarterly Investment Management Program Report; This section reports on financial portfolio performance with respect to the District's funds. Both Long-Term and Liquid Operating Monies are summarized. A performance summary table can be found on page 2 of this report. The report also contains information on the national economic outlook from the District's money manager(PIMCO). N In summary, there have been no significant changes to the District's financial position with respect to its investments. PIMCO notes that the Long-Term portfolio that it manages on behalf of the District returned 0.46 percent over the quarter, outperforming the Merrill Lynch 1-5 year Government Corporate Index by 28 basis points. v PIMCO also notes that fixed income gained ground despite Fed tightening. However, it is also noted that the US economy will slow next year as the housing market begins to cool. A discussion of other economic assumptions can be found in the body of the report. ba • Quarterly Interest Rate Exchange Agreement(Swap) Monitoring Report; There were no material changes from the previous quarter. V • Quarterly Certificates of Participation (COP) Report There were no material changes from the previous quarter. The report includes various comparative charts illustrating the COP rate history. w ti W Page 2 W Budget Review Summary r Third Quarter Financial Report March 31, 2006 The Finance Department is pleased to present the FY 2005-06 third quarter comprehensive financial report. This report provides the Directors, staff, and the r 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. Operating Budget Review. This section reports on collection, treatment, and disposal net operating costs. At March 31, 2006, 68.1 percent, or$77.38 million of the FY 2005- e 06 net operating budget of$113.69 million has been expended. As anticipated within the budget, net operating expenses increased from the same period last year by $2.9 million or 3.9 percent. A variety of factors which are discussed below have caused this increase in expenses. Overall, staff expects the total operating costs to remain at or below budget throughout the remainder of the year. Significant joint operating results as of March 31, 2006 include: • Salaries. Wages and Benefits— Personnel costs are on target at 73.3 percent of budget through March 31. Staffing is 47 full-time equivalents(FTE's), or 7.3 percent below the total 644 FTE's approved In the FY 2005-06 budget. As anticipated within the budget, salary and benefit costs are 9.1 percent, or$4.27 million, higher than the $46.74 million incurred by this same time last year. This increase in costs is mainly a result of the annual range adjustment of 2.6 percent and merit increases of 4.6 percent which were effective as of July 2005. Additionally, there are 5 more filled positions than at this same time last year. Net operating personnel costs are expected to approximate budget throughout the remainder of the year. • Operating Expenses— Other than personnel costs, the operating expense category (primarily chemicals) is the largest expense Item in the operating budget. As anticipated, the cost of chemicals has risen over the prior year, pushing total operating expenses $1.5 million higher than at this same time last year. r However, chemicals are slightly lower than the proportionate budget through March 31, totaling $13.4 million, or 65.4 percent of the composite $20.5 million budget. Based on current processes, chemical costs are anticipated to be at or below budget at year-end. • Contractual Services— Contractual services costs are at 73.5 percent of the $14.39 million budget through March 31 at $10.6 million. Solids removal costs, budgeted at $10.02 million, comprise the majority of this expense category. At Section 1 - Page 1 FY 2005-06 Third Quarter Report W March 31, solids removal costs totaled $7.9 million, or 78.8 percent of budget. Except for Groundskeeping Services, which are at 89.7 percent of the $220,860 _ budget, and Temporary Services, which are at 77.5 percent of the $325,300 budget, all other types of contractual services are slightly below the proportionate budget W through March 31. Total contractual services costs are anticipated to be at or below budget at year-end. Lr • Professional Services — Professional services costs totaled $1.7 million, or 39.2 percent of the $4.46 million budget through March 31. All professional service costs (such as legal casts, Enterprise Resource Planning (ERP) system costs, engineering, and environmental consulting services) are proportionately low through March 31 due to being in the planning or request for proposal stage, being started later in the fiscal year due to the timing of when services are needed, or the need for the service is being re-evaluated. It is anticipated that the costs for this category will increase in the next quarter of the fiscal year but will remain below budget. • Utilities— Utilities costs totaled $5.5 million, or 90.2 percent of the $6.07 million budget, through March 31. These costs are proportionately high due to a change in the operation of the Central Generation facilities. The new operating philosophy of the Central Generation facilities is to purchase electricity for power production W rather than purchasing natural gas to supplement the digester gas needed to run the Central Generation facilities. This operating philosophy change allows the Central Generation facilities to meet air emission requirements. This change is a expected to result in lower natural gas costs and higher electricity costs throughout the remainder of the year, resulting in utilities expenditures exceeding the budget by approximately $1.6 million. W • Other Non-Operating Expenses — Other non-operating expenses totaled $3.2 million, or 117.6 percent of the $2.75 million budget, through March 31. This is primarily the cooperative projects grant program with costs of$3.2 million, which was budgeted at $2.5 million. No new cooperative projects grants were approved in FY 2005-06, but the $10 million in authorized grants which were unpaid as of June 30, 2005, are being paid as the projects are completed over the next several years. Consequently, this expense category will be over the total budget throughout the remainder of the year. • Maior Revenues— Service Fees R Property Taxes —Through March 31, revenues from service fees and property taxes are $86.9 million and $25.2 million, or 61.3 percent and 70.1 percent of budget, respectively. These items comprise the majority of the District's revenues and are collected by the County through the property tax roll and are distributed to the District throughout the year based on a set distribution schedule. These revenues are expected to approximate budget at year-end. W Section 1 - Page 2 Budget Review Summary . Major Revenues — Capacity Rights—This revenue category has had no activity through March because there have been no capacity rights sales. There are expected to be capacity rights sales later in the fiscal year. . Major Revenues— Debt Proceeds— In accordance with the budgeted financing plan, the District issued $200 million of variable rate debt in March 2006. No additional debt financing will occur during the remainder of the fiscal year. w . Major Revenues— Permiftee User Fees— Permittee User Fees are at$11.6 million, or 90.8 percent of the $12.81 million budget. The revenues through the third quarter are proportionately higher than the budget due to the annual true-up of the prior years actual charges, which resulted in an additional $877,000 of charges to permiffees. It is estimated that the permittee user charges will exceed the budget amount by approximately $1.55 million by year-end. . Revenues—Treatment and Disposal —Through March 31, treatment and disposal revenues totaled $5.4 million, or 130.7 percent of the $4.10 million budget. The largest revenue item is the Interrlistrict Sewer Charge to the Santa Ana Watershed Protection Agency for treatment of flows. This revenue totaled $2.8 million at March 31, or 112.8 percent of the $2.5 million budgeted revenue, due to higher biochemical oxygen demand (BOD) and total suspended solids (TSS) loadings than was anticipated when the budget was prepared. Sales of compressed natural gas (CNG)are at $224,000, or 497.8 percent of the $45,000 budget. When the budget was prepared, it was unknown that upgrading the meters to accept credit cards would result in such higher revenues; it is now anticipated that the annual ., sales revenue for CNG will exceed $250,000. The Wastehauler revenue account is at $514,800, or 102.96 percent of the $500,000 budget due to the increase of wastehaluers and more sewerage sludge delivery to the plant. The General Non- Operating Revenue is at $1.04 million, or 1035.5 percent of the $100,000 budget. The revenues include a $915,000 reimbursement requested from FEMA for their promised contribution to help with the repair of the SARI line which was damaged as a result of the January 2005 storms. Treatment and disposal revenues are expected to exceed the budget by approximately $2 million by year-end. a a N Section 1 - Page 3 FY 2005-06 Third Quarter Report Comparison of Third Quarter Cost per Million Gallon Results With Year-End Actuals (Budget) Last Five Years 1250 Its 1110 iD2B -- 850 'r V5 c' Boo pwr—w M1111 _ aw 0 515 � 30D IOA M-M aim ULM Mali @B YU Ywr W YEd, 3M Y&W 3M Y&v W Am l or aM at Md at ad at eM or BtWet As demonstrated in the preceding graph for each of the last four fiscal years, the cost per million gallons at the end of the third quarter has been slightly less than the year- _ end actual cost. The 2005-06 third quarter appears to continue the trend with the actual cost per million gallons at $1,211, which is 2.81 percent lower than the budget of $1,246. Staff believes the cost per million gallons will continue to approximate the budget throughout the remainder of the year. The total cost per million gallons at March 31, 2006, is $1,211 based on flows of 63.92 billion gallons, or 233.28 million gallons per day. This is $35.34. or 2.8 percent lower than the budgeted cost per million gallons of $1,245.93. When costs are fixed, there is an inverse relationship between the amount of flows and the cost of collection, treatment, and disposal. Consequently, the lower cost per million gallons is due to flows of 233.28 million gallons per day being 6.68 percent lower than the budgeted amount of 250 million gallons per day, which is partially offset by net expenses being 9.25 percent less than the proportionate budget through March 31. More detailed information on operating revenues, costs, and related information is provided within Section 2. Section 1 - Page 4 Budget Review Summary Following are data tables showing the last five years of Single Family Residential User Fees (SFR)and the cost per MG to collect, treat, and dispose of wastewater for OCSD and for similar agencies. The agencies used in the table were determined to be those that most closely resembled OCSD in terms of services provided and treatment levels. The summaries demonstrate that OCSD's SFR and cost per million gallons are each one of the lowest in their respective group. Benchmark Study Five-Year Single Family Rate Rates as of January 1, 2002 2003 2004 2005 2006 �., Agency SFR SFR SFR SFR SFR Notes City of San Diego N/A N/A N/A N/A $ 422.04 Note 2 Vallejo Sanitation/Flood Conlrot District $ 256.68 $ 286.20 $320.04 $ 358.08 $ 357.60 San Francisco $ 299.04 $ 299.04 $ 299.04 $ 335.16 $ 357,48 Note 3 Dublin San Ramon Services District WA N/A N/A $ 327.00 $ 327.00 Note 1 City of Oxnard N/A N/A N/A N/A $ 298.20 Note 1 City of Los Angeles $ 246.12 $ 246.12 $ 256.44 $ 274.44 $ 293.64 Note 4 s Central Contra Costa Sanitary District $ 200.00 $ 224.00 $ 248.00 $ 272.00 $ 280.00 Note 1 City of Hayward N/A N/A N/A N/A $ 227.40 Note 1 Union Sanitary District $ 188.00 $ 198.00 $ 197.40 $ 205.30 $ 215.57 East Bay MUD N/A N/A N/A N/A $ 206.00 Note 1 ® Sacramento County $ 160.80 $ 160.80 $ 160.80 $ 184.80 $ 204.00 Note 1 City of Fresno $ 198.00 $ 198.00 $ 198.00 $ 198.00 $ 178.32 Oro Loma Sanitary District N/A WA $ 133.00 $ 153.00 $ 173.00 Note 1 Modesto Municipal Sewer District No. 1 N/A WA N/A N/A $ 171.12 Note 2 City of Visalia N/A WA N/A N/A $ 165.72 Note 1 Orange County Sanitation District $ 80.00 $ 87.50 It 100.00 $ 115.00 $ 151.00 City of Bakersfield N/A WA N/A N/A $ 125.00 Note 1 Irvine Ranch Water District $ 79.20 $ 83.40 $ 96.60 $ 100.20 $ 120.00 Note 5 Los Angeles County N/A N/A N/A $ 90.00 $ 96.00 Note 2 Notes: (1)-No response from the Agency-wherever possible,data was acquired from the Agency's webske. (2)-Agency declined to respond due to lack of staffing availability. (3)-The rate was frozen at the 1996 level unfit July 2004. (4)-Data is for the typical SFR customer rate and is not the average rate. (5)-Data represents the maximum SFR rate and is not the average rate. r r e+ r Section 1 - Page 5 r FY 2005-06 Third Quarter Report Benchmark Study W Five-Year Cost per MG FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 r Agency Cost/MG Cost/MG Cost/MG Cost/MG Cost/MG Notes City of Hayward N/A N/A N/A N/A $3,000.00 Note 1 _. Vallejo SanitationfFlood Control District $2,147.00 $2,535.00 $2,652.00 $2,690.00 $2.962.00 Central Contra Costa Sanitary District $2,284.66 $2,399.24 $2,412.20 $2,661.57 $2.665.24 Note r San Francisco $2.140.00 $2.347.00 $2.565.00 $2.566.00 $2,485.00 Note 6 Union Sanitary District $1,543A3 $1.793.18 $1,913.39 $1,980.05 $2.078.76 Note Dublin San Ramon Services District N/A N/A N/A N/A $1.753.00 Note 1 City of San Diego N/A WA N/A WA $1,587.77 Note 5 East Bay MUD WA $1.308.26 $1,334.02 $1.396.52 $1.348.79 Note 1 Oro Loma Sanitary District N/A WA N/A N/A $1,285.00 Note 1 City of Los Angeles $1.146.00 $1,201.00 $1,205.00 $1,284.00 $1.261.00 Note 7 Modesto Municipal Sewer District No. 1 N/A N/A N/A N/A $1.252.00 Note 5 t" Irvine Ranch Water District $ 862.44 $1.047.19 $1,104.90 $1,181.62 $1,198.18 Orange County Sanitation District $ 695.40 $ 800.86 $ 915.36 $1,094.85 $1,146.04 Sacramento County $ 806A3 $ 964.37 $ 987.53 $ 980.17 $1,074.96 City of Fresno $ 724.64 $ 929.61 $ 885.62 $ 910.11 $ 964.32 Note 3 Los Angeles County N/A N/A N/A N/A $ 767.00 Note 4 City of Oxnard N/A N/A N/A N/A N/A Note 2 City of Bakersfield N/A N/A N/A N/A N/A Note 1 r City of Visalia N/A N/A N/A N/A N/A Note 1 Notes: (1)-No response from the Agency-wherever possible,data was acquired from the Agency's website. (2)-Cost/MG is not a tracked statistic. (3)-Does not include collection costs. (4)-Does not include source control nor overhead costs. (5)-Agency declined to respond due to lack of staffing availability. (6)-Includes storm runoff,so flows vary signiflicantly from year to year. (7)-In FY 2003-04 the City applied Engineers and Architects Association(EAA)COLA,which covered multiple years. r Capital Outlay Review: $300,000,000 $250,000,000 r $200,000,000 ` $150,000.000 r $100.000.000 $50,000.000 r so 3/31/06 Actual Projected 2005-06 2005-06 Capital Outlay r Capital Outlay Capital Outlay Cashilow Budget $169,353,100 $239,881,200 $277,110,600 r Section 1 - Page 6 r Budget Review Summary As depicted by the preceding chart, Capital Outlays totaled $169,353,100 or 61.1 percent of the capital outlay cash flow budget for FY 2005-06 as of March 31, 2006. Costs are low through the third quarter as many projects are still in the design phase or have experienced various delays. For example, the North County Collection Yard is still in the process of being acquired. Through March 31, the costs total only $19,956, but the years cashflow budget was $10,500,000. Another example is the r Groundwater Replenishment System (GWRS). The GWRS is currently at $55.6 million, or 65.5 percent of the FY 2005-06 budgeted cash flows of$84.81 million, and is expected only to achieve project cash outlays of$75.6 million, or 89.1 percent at year- end. This cash outlay shortfall is attributable to the success of the Orange County Water District in obtaining $92.5 million in grant funding assistance that is applied first to the project costs before equal cash outlay contributions are required between the two agencies. Overall, the capital outlay costs of the capital improvement program are expected to be $239,881,200, or 86.6 percent of the capital outlay cash flow budget at year-end. More detailed information on the capital improvement program is provided within Section 3. Capital Facilities & Debt Service Budget Review: Section 4 is the Capital Facilities and Debt Service Section. This section shows the cost value of the District's capital facilities at March 31, 2006, as well as the debt service costs resulting from the need to ti provide funding for the construction of capital facilities. Currently, all principal payments on debt issues are due in August each year. Consequently, 100 percent of the principal payments have been made by the end of the first quarter each year. Interest costs are expensed ratably throughout the fiscal year. Due to variable interest rates, some of the interest expense amounts vary from r the budget. Additionally, the 2006 debt issue was completed in March, and interest expense has been applied since the date of issuance. Due to the timing of the 2006 debt issuance, interest expense is anticipated to be less than the budget at year- end. Self-Insurance Budget Reviews: Section 5 is the Self-Insurance Section. Through March 31, the Self-Insurance Fund revenues totaled $1,950,900, 75 percent of the budget, while expenses were $1,218,500, approximately 53 percent of the budget. Separate fund accounting is used for recording the revenue and expenses incurred in managing these liability claims. The revenues to these funds represent charges to operating divisions. Expenses to these funds include actual claims paid, claims administration, and excess loss policies. Section 1 - Page 7 FY 2005-06 Third Quarter Report _ ti W V w i� r This Page Intentionally Left Blank y W W W W Yea Section 1 - Page 8 W r Operating Budget Review r Cost per Million Gallons by Department Budget and Actual March 31,2006 r $7W E805 5550 _ Saao SW5 $2W $1W �a ■eutlget Actual r r Collection, Treatment, & Disposal Expenses by Major Category Budget and Actual (in thousands) r March 31,2006 s56.We $W. W r SC5,5a0 590,000 r f3 m S30.W0 _ i25,00a r $2O.W5 at5,55o dM r S15.aW $5,000 AM fa g 3 na F out �f 6 "a E O H w ■Butlpel■AGual Section 2-Page I 2005-06 Third Quarter Report W Divisional Contributions to Gallonage Charge I For the Nine Months Ended March 31,2006 1.v 200549 Actual Actual Annual Ached Actual Actual Budget AWtl ( ' Flow In Million Gallons 85,812.00 66,906.00 91250.00 13,920.00 �I Flow In Million Gallons Per Day 238.59 244.18 250.00 23328 _ General Mangoes Department General Management Administmtion $ 18.00 $ 16.14 $ 18.28 $ 13.67 V Firmnu Department Finance Adminlstration 13.73 4.15 6.01 4.57 Accounting 20.90 22.W 54.10 53.71 Genbecis,Purchasing,&Materials Mgml. 18.72 20.41 27.08 28.12 61 Subdued S&35 46.92 87.19 86.40 Public Alralra Department Public Album Administration - - 4.41 &32 Board Services 7.92 6.88 6.29 7.12 V Public Information Office 7.79 9.69 7.72 TM Legislative Advocacy and Grants 5,58 3.73 subtotal 15.71 16.55 24.00 21.48 Regional Arabia&Services Department Regional Assels&Services Administrative - - 12.09 12.75 Collection FacilWes Operations&Mainl. 26.61 29.67 54.47 55.93 Facilities Maintenance Services 58.65 Well 63.37 67.20 Subtotal 65.26 90.58 129.93 135.88 Human Resources Department Human Resources Administm6on 9.63 10.92 6.61 7.0 - Employee Developmentri-raining 5.47 11.80 16.94 11.79 Safety and Health 12.00 KT7 19.16 16.03 W Work Force SuppoM1Semicas 6.62 6.35 13.55 10.47 Employee and Labor Relations 2.19 2.97 Subtobl 33.50 Q." 58.65 49.09 Technical Services Department r Technical Services Administration 10.61 12.65 10,28 9.81 EnNmnmental Assessment 40.35 27.89 33.99 32.95 I nmhmnmental Sell Labmalery 60.29 57.88 59.84 61'19 Source Control 48.84 49.99 57,30 55.5,1 Environmental Complimtce Services 18.86 30.30 84.82 70.59 Subtotal 178.95 178.69 246.23 230.21 Enginaming Department i Engineming Administration 5.74 5.66 5.77 S.95 6 + Planning 16.03 18.28 4822 72.32 Project Management Office 16.74 17.02 20.85 21.04 - - EnginsemgandConsWction 64.36 67.21 81.99 82.95 Subtotal 104.87 108.17 156.0 184.16 0pme6omr&Maintenance Department Operations&Maintenance Administration 7.91 7.94 8.66 10.00 0&M Process Engineering 19.20 23.86 26.n 22.05 Plant No.1 Dilatation 146.48 156.08 188.58 166.31 {ce Plant No.2 Operations 2D9.30 206.23 226.68 267.00 Mechanical Maintenance&Paws Production 133.03 144.28 144.84 126.16 Inslmmentatlon&Electrical Maintenance 77.0 76.04 77.08 76.06 Subtotal 594.09 61&43 052.61 678.45 {r Information Technology Demeaned Information Technology Administration 3.60 4.22 4.78 4.87 Customer&Newark Support 34.07 42.42 47.74 42.01 l Pugraming&Database Systems 16.12 18.16 19.78 19.35 lxr Process Controls Integration 17.24 19.30 21.10 Mee Subtotal 71.03 84.10 M Q sees Total Operating Expenses 1,1W.06 1,1a&42 1,07.12 1,480.23 Cost Allocation (150.OD) (168.71) (176.27) (191.79) v Collection System Operating Costs 110.50 131.87 We nm NO Operating Requirements "ass 1,151.58 1,290.85 1,294.44 Collection,Treatment.&Disposed Revenues (35.25) (48.43) (44.92) (83.85) Net Operating Expmees $ 1,080.31 $ 1.113.15 $ 1,245.93 $ 1.210.59 ift, Section 2-Page 2 I V Operating Budget Review Comparison of Expenses by Department For the Nine Months Ended March 31,2006 20(1 31311" W31MS Year to Date Budget% Department and Division Actual Actual Budget 3131/06 Realized General Managers Doparlment General Management Adminis rsUon It 1,180,854 $ 1,090.165 $ 1.688.150 $ 873,576 52.37% Finance Department Finance Administration 900,959 277,362 W.540 291.967 53.22% Accounting 1.371,029 1,496,149 4,936,900 3.432.836 69.53% Cmfti Purchasing,&Materials Mgmt. 1.228,573 1,365,367 2.471,300 1.797,585 72.74% Subtotal 3,500,561 3.13%878 7,958,740 5,522,378 69.41% s Public Affairs Dopadmant Public Alfelra Administration - - 402,090 212.216 52.78% 58 459.Board Somms 519.9260 574,080 455.372 79.32% Public Information Office 610.900 648,234 704,420 465.946 66.15% .� Legislative csac,and Grants 608,BOO 238.707 46.92% Subtotal 1,030,858 1,107.494 2189,390 1.372.241 62.68% Regional Assets&3mvices Department Regional Assets&SaMces Administration - - 1.103.400 $14,699 73.84% Collection Facilities Operations&Maint. 1.7,16,150 1,984,823 4.970,760 3,574.810 71.92% Facilities Maintenance Sarvims 3.848,047 4,075,244 5,782AW 4.295.552 74.28% Subbstal 6.504,197 6,060,067 11,856,980 81685,061 73.25% Human Resources Department Human Resources Administration 632,089 730.685 621.070 500.215 60.54% Employee Developmentrraining M'Sa9 78U49 1.546.120 753,499 48.73% Safety and Health 792,522 988.017 1.748.B00 1.024.659 58.59% Work Force Support Services 434.497 424.612 1.235.410 669,034 54.11% Employee&labor Relationa 199,460 189,943 95.23% Subtotal 2,217,777 2,932,563 5,351.800 3.137,350 58.62% Technical Sondcos Department Technical Services Administration 695.873 546151 938,100 627.288 68.87% s Environmental Asseeemont 2.647.250 1,856,049 3,101.990 2,107,BD0 67.95% Environmen id Sciences Laboratory 3.955,834 3.871229 5.400.000 3.911.410 71.64% Source Control 3.204.266 3,344,419 5.228,920 3,556,265 68.01% r Environmental Compliance Services "37,122 2.027,524 7.740.D40 4,512,026 58.29% Subtotal 11.740.344 11,955,372 22.469,050 14,714,790 0.49% Engineering Department Enginmdng Administration 378,879 379795 S28.760 4N.D97 54.31% Planning 1,183, it 1,223,210 4.400.460 4,622,608 105.05% Project Management Office 1,09%107 1,138.885 1,902,610 1,402,170 73.70% Eginwing and Construction 4.222.615 4,496,940 7.461.220 5,302,337 70.88% Subtotal 6.880,712 7,237,838 14.310.940 11.771212 82.25% s Operations&Maintenance Department Committees&Maintenance Administration 518.687 531,288 789.830 639,025 80.91% O&M Process Enginpedig 1,259,700 1.598,204 2,442,360 1,409,219 57.70% Plant No.1 Operators 9,611.159 10."2.736 16,383,250 11,9m.999 77.42% Plant No.2 Operators; 13.732.443 13,731,410 20,684,210 16.427.179 79.42% Meohanlcel Maintenance&Power Production 8.768,009 91663.610 13.216.630 8.004.334 61.02% Inumumentaton&Electrical Maintenance 5.089.505 5,087.617 7A33.940 4.919,123 69.93% Subtotal 38,979,663 41,042.765 59.550.220 43,367,879 72.63% Information Technology Department Information Tectmote9y Administration 236,129 282,634 436,400 311.069 71.28% Customer&NelvmA Supped 2,236,623 2.838.143 4.356,300 2,685,116 61.64% Programing&Datetase Systems 1.057,726 1.215.242 1,806.000 1,236,979 68.63% es Process Controls Integration 1.130.828 1,291.102 1.925,830 1.320.204 68.65% subtotel 4,860,306 5,627,021 8.523.530 6.553.358 65.15% Total Operating Expenses 75,785,172 $0.1a2.163 133,876,840 94,997,845 70.96% Cost Allocation (9,841,768) (11.298.426) (16.085.900) (12.259.272) 76.21% Collection System Operating Costs 7.260.233 8.822.903 rule Na Ne Net Operating Requirements 73.193.637 77.716.700 117.790.940 92.738.673 70.24% Collectpn,Traatmant,&Disposal Revenues (2,312.909) (3,240.573) (4,100.000) (5.358.280) 130.09% Net Operating Expensec $70,8B0,728 $74.476.127 $ 113,690,940 $77,380.313 68.06% w Section 2-Page 3 2005-06 Third Quarter Report Summary of Collection,Treatment,&Disposal Expenses by Major Category For the Nine Months Ended March 31,2006 Expense Expense Increase Increase Percent Budget Through Through (Oecraess) (Decease) Budget Remaining . _ Description 2005-06 3131106 3131105 $ % Realhed Budget Salary&Wages $ 53.707.700 $ 39.328,025 $ 36.232,011 $ 3.096.014 8.54% 73.23% $ 14.379,675 Employee Benefits 15.860.100 11.684.624 10,510.968 1.173,656 11.17% 73.67% 4.175.476 ` Administrative Expenses 1,262,250 680.299 880.140 (199.841) -22.71% 53.90% 681.951 Printing B Publication 525.960 275.525 291.197 (15.672) .5.38% 62.39% 250.436 Training&Meetings 1.327.750 630.736 667.390 (38,654) -5.49% 47.50% 697.014 t^' Operating Expenses 20,502.440 13,406,557 11.877.753 1.528.804 12.87% 65.39% 7.095,803 Conbachel Services 14,391,470 10.575.864 9,546.011 1,029,853 10.79% 73.49% 3.815,606 W Professional SeMcas 4,457,540 1.745.239 2,293,335 (548.096) -23.90% 39.15% 2,712.301 Research&Monitoring 1,409.610 881.320 1.168.587 (287,247) -24.58% 62.52% 628,290 1d Repairs&Maintenance 8,300,460 4,896.930 5.872.599 (975,669) -16.61% 58.95% 3.409,530 4w utilities 6.072.100 5.477.182 4,798,651 678,531 14.14% 90.20% 594,918 OMer Materials,Ewell., and Services 6.053,460 5,415.544 4.776,380 639,164 13.381A 89.46% 637,916 r, Net Cost Allocation (16.085.900) (12,259,272) _ (11.198.302) (1,060,970) 9.47% 76.21% (3,826.628) ... Net Operating Requirements 117.790,940 82,738,573 77.716.700 5.021.873 6.46% 70.24% 35.052.367 Ir Collector,Treatment. - - &Disposal Revenues (4,100,000) (5,358,260) (3,240,573) (2.117,687) 65.35% 130.69% 1,258,260 W Not Operating Expenses $ 113.890,940 It 77,380,313 f 74,478,127 $ 2.904,186 3.90% 68.06% $ 38.310,827 Gallonage Flow(MG) 91.250.00 63.920.00 66,906.00 (2,986.00) 4.46% Gallaage Flour(MGD) 250eO 233.28 244.18 (10.90) 4.46% Gallonage Flow($'a/MG) $1,245.93 $1,210.59 $1.113.15 $97.44 8.75% Nw v lao loa led Section 2-Page 4 u Operating Budget Review r Summary of Major Revenues For the Nine Months Ended March 31,2006 Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 2005-06 3131106 3131/09 Budget W31105 $ % Service Fees S 141.652,000 $ 86.888,497 61.34% $ 54.763.503 S 66.873.654 $ 20.014.843 29.93% User Fees(Pemtits) 12,811.000 11.634.783 90.82% 1,176217 7.530.121 4.104.652 54.61% Capital Facilities Capacity Charges 8.769.000 5,56B,B50 63.51% 3200.150 5290.053 278.787 527% Capedly Rights 2,600.000 - 0.00% 2,600.000 - - WA Capital Assessmerds 21.562,000 11,390.880 52.83% 10.171.120 6.619.558 4,771.322 72.08% Debt Proceeds 200.000,000 200.000.000 100.00% - - 200,000.000 WA Property Taxes 36.019.000 25,23T894 70.07% 10.781.106 24.484.062 753.832 3.08% Interest Earnings 19.017,000 6.175,803 32.48% 12.841,197 8=053 (2,05525D) -24.98% Other Revenue 5.992.000 372.328 621% 5.619.672 767,191) (394,862) Total 5 418,422.000 S 347-10.035 W."% $ 101.152.066 S 119,796,701 S 227.472.334 189.88% ti Summary of Treatment S, Disposal Revenues r For the Nine Months Ended March 31,2006 Revenue Revenue Revenue Increase Increase Budget Through Through Remaining Through (Decrease) (Decrease) Description 200546 3131106 3131106 Budget 3131105 $ % Inter District Sewer Use 8 2,500.000 $ 2.820.449 112.82% $ (320,449) $ 1,952.736 $ 867.713 44.44% Wastehauler 500.000 514.796 102.96% (14,795) 406.373 105.423 26.6a% Sludge Disposal 725.000 671.910 92.68% 53.090 599,744 72.166 12,03% CNG Sales 45.000 224.002 497-78% (179.002) W,6a3 193.319 630.05% Other Sales - lame N/A (16228) 4,089 12.139 295.87% Rants B Leases 30.0DD 24,852 82.84% 5.148 22.132 2,720 12.29% General Non-OpereBng 100,000 1.035.481 1035.48% (935.481) 74,546 960,935 1289.051/e r Pourer Sales 200,000 50.542 2527% 149,458 150.270 (99.728) 46637% Total $ 4.100.000 S 5.368,2611 130.69% $ (1,25B,260) $ 3240,573 S 2,117.687 65.35% Section 2-Page 5 2005-06 Third Quarter Report Summary of Collection,Treatment,&Disposal Expenses by Line Item For the Nine Months Ended March 31,2006 r' Expense %Expanse Expense Increase Increase Budget Through Through Remaining Through (Decrease) (Decrees.) Deecrip6an 2005406 3131186 3131106 Budget 3I31105 $ % SoleNes.W.R.&Basa _. Searle.&was. 6 53,707.700 $ 39,M8,025 73.23% 6 14,379,076 8 36.232.011 S 3.090.014 8.54% Employe.Benefits Retirement 9,398,700 6,888,875 73.30% 2.51 5,799,675 1.089200 18.78% Group Insurances 5,782,700 4,359,255 75.38% 1,423,445 4.022.926 338=9 6.36% -- Tuition&CeN8oa6on Rdmb I50,000 69.456 46.31% 60,542 88,885 (17.427) .20.06% Unfotm Rental a5.0D0 46,762 55.01% 35.238 80.850 (14.058) -23.15% w Workers Compensdbn 425,000 318,749 75.00% 108,251 524,998 (20B,249) 419.29% Unemployment lnsumnce 16.700 1,525 8.16% 17,175 15,934 (14,109) -80.25% Total BeneBb 15,860.100 11.684,024 73.67% 4,176.476 10.510,9m 1473,858 11.17% Winds,Wages&Bena64 69,567,800 51,012,649 73.33% 18,555,151 48,742,979 4,289,070 9.13% M.U.Supply,It S.M. Administrative Expenaos Memberships 253,520 209,539 82.85% 43,981 223,553 (14,014) -elm Ilr Office Exp-Supplies 149.500 aB,230 59.09% 60,270 97,982 (8,752) -8.93% Postage 73.530 32,814 44.83% 40.710 35,489 (2,075) -7.54% Books&Publications 51,650 20.065 38.a5% 31,555 25,845 (5,780) -22.39% r-arm. 3.350 3.390 101.19% (40) 4,238 (BIB) .20.01% 4ag Small ComWer Items 592,900 288,91l0 48.41% 305,820 433.978 (140.908) -M.87% Mirror Furniture If Futures 137,900 38.281 27.76% 99.619 59.055 (20,774) -35.18% _. Sablolal 1,262250 650,299 BUD% 581.951 680.140 (199,841) -22.71% Prin9n9&Publication Rapro-In-House 388,750 232,152 58.65% 163,558 250.909 (19,747) -7.47% Pdmir,C).sida 85.350 20,685 24.24% 64.665 25,856 (5.171) -20.00% Noticos&Ads 42,800 22,165 51.79% 20.635 13,545 8,520 62.44% Photo Processing 2.000 513 24.90% 1,547 787 (274) -34.82% Irl Subtoal 525.980 275.525 52.39% 250.435 291.107 (15,672) 5.38% Training It Meetings .-- Meetings 327.250 151,638 46.34% 175,612 Vona (19.140) -11.21% Training 1.00 .5 479.098 47.89% 521,402 496,012 (17,614) -3.53% W Subtotal 1.327,750 630.735 47.50% 097.014 067,390 (36.654) 6.49% Operating Expanan s Chemical Coagulants 5,677,400 3,557,288 62.00% 2,120.114 3.345,418 211,858 6.33% Odor Control 6,059,000 3,400.329 55.12% 2.650,671 2,730,044 670,285 24.65% saa Disinfection 6,771,000 5.016,W7 74.10% 1,754,023 4,391,9941 624,983 1423% chemicals-Mis.&Cogan 41.000 25,306 61.72% 15,694 26,878 (1,572) 5.85% Gasoline,Diesel If Oil 460,330 326.915 71.02% 133,415 278,150 48,766 17.53% Taub 301,980 158.372 52.44% 143,608 204,485 (46.113) -22.55% W Safety eeulpmerstools 269.000 202.493 75.2a% egSW 183.373 19,120 10.43% Solv,Palms It Jan.Supplies 72,350 08.466 94.63% 3.884 60,785 7,661 12.54% Lab Chemicals If Supplies 651,420 501,985 77.06% 149.435 506,120 (4,135) -0.82% Other Operating Supples 166,960 119,726 70.86% 49,234 118,a98 am 0.70% va� Property Tax Fast 30.000 28,702 95.67% 1.298 31,610 (2,908) 420% Sublets] 20.502,440 13,406,557 65.39% 7,096.883 11.877,753 1,528,804 12.87% ContracWal Services Solids Removal 10,023,840 7,898,421 78.80% 2,125.419 7.010.939 867,4a2 12.66% r' Other Waste Disposal 799.950 426,651 53,33% 373.299 451,326 (24.674) -5.47% Gmundskeeptn9 220.850 198,007 59.65% 22.853 164,057 33,950 20,69% Janitorial 407,900 287261 70,42% 120.639 252.344 34,017 13.84% Outside Lab Services 228,400 144,404 63.26% 83.806 125,11n 18.822 14.98% Oxygen Plant Opsr 302,000 220,500 73.01% 81,500 239,398 (18,598) -7.89% County Service Fee 450.000 71,309 15.95% 378,691 64.878 6,431 9.91% -- Temporary,Services 325.300 252,080 77.`u% 73,220 528.330 (276.259) -52.29% Security Services 297,470 100,538 53.97% 138,932 177,784 (17,248) -9.70% W Other 1,335,750 916,603 68.62% 419,147 531.275 385.328 72.53% _ Subtotal 14,391.470 10,575,654 73.49% 3,815,606 9,546,011 1,029.853 10.79% kv (Continued) Sec0on 2-Page 6 W Operating Budget Review Summary of Expenses by Line Item r For the Nine Months Ended March 31,2006 aspema %Expanse Expense Ineema Increesa Butlgot Through Through Remaindre Through insolvent.) Ices-) Description 2005416 3131MS UPIRS Budgst Mims $ % Canueund Prolesslonal Sam= Lapel 638,000 368,738 57.80% 269.262 682,362 (313.624) 45.96% w• Audit&A un6np 183,000 35,432 19.38% 147,558 50,926 (15,494) 410.42% Engineering 4M,330 101.197 23.41% 331,133 215.238 (114,041) -52.98% Swim Scientific ComAng 621,300 13g779 21.05% 490.521 62,530 68,249 109.15% ERP Support 276.460 184,20 06.65% 92,195 157,900 26,305 16.70% Software Pmm ConsuMng 126,600 65,392 52.38% WAS 47.520 18,872 39.71% Advocacy Efforts 291,D00 194,997 67.01% 96.003 204,359 (9,382) 4.58% Industrial Hygiene Services wow - O.OD% 50.000 3,907 (3,9D7) -10D.OD% Labor Ne9oDeschi Services 10,000 - 0.00% 10,000 - - N/A Other 1.828.650 663.439 36.28% 1.165.211 868,593 (205,154) -23.62% Submlel 4,457,540 1,74.5,239 39.15% 2,712,301 2293.335 (548,096) -23.90% Research&MunN urbig ss, EnvhommeMal Monhoring 727.400 570,340 78.41% 157,080 5981515 (128,175) -18.35% Ab Quality MONtorMg 168,000 51.790 3043% 116,210 83,645 (31,a55) 68.08% Research 514,210 259,190 50.41% 255,020 350,407 (127,217) Subtow 1.409.610 SB1.320 62.52% 52a,29D 1,168,567 (287,247) -24.58% sef Ropsm&Maintenance Materials&Sarvicee 6,721.00 4,040,005 WAM 2,BB1,955 4.880,130 (840.125) -17.22% Sva No.Atim ,henb 1.584.500 &56,925 64.08% 727,576 992,469 (135,544) -13.B6X Subtotal 8,306,460 4,8%930 58.95% 3,409,530 5.872,599 (975.669) so 11"IMes Telephone 189.000 145,396 75.lM 43,604 1681108 (22,712) -13.51% Diesel For Generators 25.000 5015 23.42% 19.145 12.603 (6.748) -53.54% Natural Gas 2,447,100 8591665 35.13% 1,587,484 1,S44,692 (955,226) -53.40% r Pone, 2.132,000 3.556,010 166.79% (1,424,010) 1,618.978 1,737,OM 95.50% Weis 1,279.M 910,255 71AM 388,745 954,072 (43,817) 4.591)6 Subtptel 5.072,100 5,477,182 90.20% a94,918 4.796,951 678,531 14.14% Other Operating Supplies r Outside Eculp Rehlal 30,280 19.150 63.24% 11.130 40.078 (29,926) 60.95% Imes ePremNma 25,000 20,495 81.98% 4,SW 23,235 (2,739) -11.70% Prop&Gen Llab Ineuranca 2,160,000 1.620.000 75.00% 540,000 S25,003 794,997 9e.36% Freight 107,330 64,311 78.55% 23.019 B8,9S5 (4,644) .5.22% w Misc.Operating Expense 110,950 54.769 45.66% 65,181 130.750 (75.981) 68.11% UncolleGlNe Accounts, 5,ow - 0.00% 5.DD0 3,554 (3,554) -100.0D% Regeletory Opereene Fees 428,700 378.624 88.13% 48.070 563.509 (184.885) Subtotal 2,874.260 2,177,350 75.75% 696,910 1,654,064 493,266 29.29% General Mgr Co rningenoy &Reappropratims 424.350 0.00% 424,350 N/A OMer Non-Oper Expense 2,754,850 3,238.194 11755% (483,344) 3,092,296 145,898 4.72% r Total Materials, supplies&&e"loes B4.309,040 43,985,195 68_40% 20.323,844 42,172.023 1,813,173 4.30% es, Total Expenditures 133,576,640 94,997,845 70.96% 38,87&995 88,915,OO2 6.082,843 6.84% Cost Ancona. (16,055,900) (12,25%272) 78.21% (3.&26,628) (11.198.302) (1.080,970) 0.47% Net Opeatlng Rapulrerrmnb 117,790,940 82,738,573 70.24% 35,052,367 77,716,70D 5,021.873 6.46% Collection,Treatment, &Disposal Ravens (4,100,000) (5,358,200) 130_69% 1,258,280 (3,240,573) (2,117,687) 65.35% Net Opereting Expense S 113,690,940 S T7,380.313 68.06% S 36.310,627 S 74.476.127 $ 2,904,1B6 3.90% r✓ Section 2-Page 7 W 2005-06 Third Quarter Report Summary of Collection,Treatment,&Disposal Expenses by Process For the Nine Months Ended March 31,2006 r Increase Increase Actual Actual (Decrease) (Decrease) -. 3131106 3131105 $ % W Process: Preliminary Treatment $ 5.310,408 $ 4,525,144 $ 785.264 17.35% 6. Primary Treatment 9,068,799 7.801,295 1.267,504 1625% Secondary Treatment 4,309,189 3,841,794 467,395 12.17% 4, Cryogenic Plant(Plant 2) 604,191 489,435 114,756 23.45% -- Effluent Disposal 857,971 668,011 189.960 28.44% W Solids Handling 22,851,542 21,559,330 1,292212 5.99% Cogeneration 5.941.860 8, %,955 (2,357,095) -28.40% Utilities 10.475.256 9,324,056 1.151200 12.35% W Electrical Distribution 750,817 900.311 (149,494) -16.60% Miscellaneous Buildings 3.565,085 3,576,331 W Air Quality 6,377.813 1,975,232 4,402.581 222.89% W Laboratory 5.527,942 5,578,418 (50,476) -0.90% Collections 7,097,700 9,178,388 (2,080,688) -22.67% W Net Operating Requirements 82,738.573 77,716,700 5,021,873 6.46% - - Less: Revenues (5,358,260) (3,240,573) (2,117,687) 65.35% W Not Joint Operating Expenses $ 77,380,313 $ 74,476.127 $ 2,904,186 3.90% W W r W w Section 2-Page 8 W Operating Budget Review Staffing Trends Full Time Equivalents March 31,2006 700 — BM 650 629 — Me 600 57C 587 550 500 450 630N2 6r"3 MGM 6M/05 3/31M III Actual EVacanl At March 31, 2006, the total head count was 607 employees, or a full time equivalency of 597. Section 2-Page 9 V 2005-06 Third Quarter Report V W W W W This Page Intentionally Left Blank W W v W W r� Section 2-Page 10 W CIP Budget Review Capital Improvement Program By Type and Funding Source For the Nine Months Ended March 31, 2006 ecd-mns Facot:: 15.5% OPm Year Treatment Prtlaas t,0% ■Siaiegkfl M PWPiq: 1.0% OHeaCvgMs: 16.5 e OPomary Treatment 5.0% OOdor Coned PMWS: 1.0% OSdbs Handling fl Digeetidn: 20% ■u,.i,S,te 3.0% 00coan OWMIISydeme. 4.0% _ ■Process RNVt Sp WPmletls' 0.5% -t ■MiscclWntp,s Supp tP.*W 3.0% 0 W ate,M—gement P,geps: 32.5% OEeuipment 10% ■sa dary Treatment 14.0% ■Rmearce 5 Darebpm 0.5% ■PW ANM,aLLL[ 0.5% Total Capital Improvement Expenditure- $169,353,096 - - ■ReplaDerneM/Rehabilitation: 38.0% ■Improved Treatment-46.0% ondrntiooel capacity-L4.6% ■Support-2.0% Total Capital Improvement Expenditure - $169p353,095 Section 3- Page 1 FY 2005-06 Third Quarter Report Summary of Capital Improvement Construction Requirements-Current Year v For the Nine Months Ended March 31,2006 200546 200546 200S-06 Cash0. Actual at Projected tsu Budget 3131106 Outlay Collection System Imorovomont Prolocts Collection. W Greenville Sullivan/Rala Street Manhole Rehab $ - $ - $ - Santa Ana Trunk Server Rehab. - 31,203 67,500 Lower Maln-Broadway,MH Rehabilitation - - - Continuous Feed Chemical Treatment Facility 875.000 120,638 875,000 lad Carbon Canyon Sewer and Pump Station Abandonment 2,117.000 115.355 255.300 Santa Ana River Interceptor Relief Sewer - - - - Santa Ann River Interceptor Realignment and Prod. 648,000 1,620,728 1,962.600 V Abandonment of the Essgng SARI in SA River - - - Abandonment of YoMe Linda Pump Sullivan - - - TaN Branch Improvements 2,697 2.700 Atwood Subtrunk Improvements - - L Lower Santa Me River Intercepter Improvements _ Eudld Relief Improvements-Reach - Eudld Relief Improvements-Reach Tr _ Santa Ana River Relief Sewer,Reach B Newhope-Placentia 8 Cypress Trunk Replacements 568,000 S8.8S0 94.400 Upper 6 Lower Newhope-Pleoentia MH Rehabilitation - - - SARI and South Anaheim Interceptor MH RehabiNation _ Rehabilitate 0istrict Siphon.by Adding Air Jumper 216.000 411,367 657,600 Li Green River Meter Station - - TraskBranchoiNeHoover-Wastam Sublmnk - - - Rehabilitation of Me Weslalde Pump Staton 645,000 140,751 488.400 Wesiside Relief Inderceptor6.os Alamitos MH Rehab - - - W Rehabilitation of the Seal Beach and Edinger PS 102,000 31,170 31.200 Miller-Holder Trunk Condition Assessment 250,000 - - Rehabilitation of Magnolia Trunk Sewer 1,000,000 70,474 17D.00D Sailboat Trunk Sewer Rehabilitation - - - Replacemend of the Bitter Point Pump Mellon 265,000 344,903 481.800 Replacement of the Rocky Point Pump Station 683,000 171,008 298,600 Rehabilitation of the 14M Street Pump Station 3,411,000 3,863,205 5,445.400 W Rehabilitation of the W Street Pump Station 3,220.000 3,143.920 3,891.00D Rehabilitation of the Bay Bridge Pump Station(95%) 76,000 87,347 98,200 Crystal Cove Pump Station Interior Rehabilitation 181,000 10,879 16.900 Bitter Point Force Main Rehabilitation 3,163,000 169,772 200,900 I� Newport Farce Main Condition Assessment 650,000 - - Bayside Drive Improvement 109,000 18,162 100.800 Realign 8 Rehab of Big Canyon OBside Trunk Sewer 700,000 51.953 380.000 Sunflower Interceptor Manhole Rehab 2,093,000 573,628 1.414,600 Lemon Heights Subtrunk Street Rehabilitation 155,000 34,345 99,600 _ Gisler-Redhlll Trunk Sewer Relocation-Phase 1 787,000 116,887 205,300 Gisler-Redhlll Trunk Improvements,Reach A 3,932,000 2,867,850 4,316,300 W G1s1er-Radh111 System Improvements,Reach B 418,000 77,340 299,800 Orange Trunk Improvements 173,000 10.448 25,600 West Trunk Improvements 35,000 25.167 122,000 I Gisler-RBdhIIONOnh Trunk Improvements 9,2a7,000 5,096,000 6,600,40D W Rehabilitation of the College Ave Pump Station 052.000 001,579 614.400 Rehabilitation of the MacArthur Pump Station 543,000 314,562 314,600 - Lawer Gisler-Redhill Trunk Relocation and MH Rehab - - - Upper Gisler-Redhill MH Rehabilitation B Camps or - - - V Edinger/Soee Chica Trunk Improvements - - Coast Think Bever Rehabilitation 1,776,D00 535,347 832,500 Warner Sewer Siphon 809,000 3.683 3.700 (Continued) �aI Section 3-Page 2 CIP Budget Review r Summary of Capital Improvement Construction Requirements-Current Year For the Nine Months Ended March 31, 2006 200546 2005-e6 2006-06 CashOow Actual at Projected Budget 3131106 Outlay (Collections continued) OCTA Sewer Reloratlan Projects 106.000 (65,56a) (40.300) Permanent Odor Control Facilities - - - Hodh County Collections yard 10,500.0110 19,956 20,000 Facilities Engineering Projects-Collections 195,000 115,053 163.m0 r Replacement of the Ellis Ave.Pump Station 2,450,000 1,818.t105 3,598,30(1 Bustled Took Seaer Rehabe8etlon 7,774,000 4,374.438 5,193.5110 Pump Slabon P A Me and Equipment Tagglrg 290.UD0 - - rr Additional Charges to CIP Closed at 6130/05 162,153 162,200 Subtotal-Collections 111,457,000 25,925,1164 39,3W.200 Revenue Area 14 s Rehabilitation of fie Bay Bridge Pump Station(5%) 4,000 4.597 4,500 Additional Charges to CIP Closed at 6/30/05 Subtotal-Revenue Aree 14 4,0DO 4,597 4,600 Total Collection System Improvement Projects 61,01,000 26,630,551 39.354,800 Treatment&Disposal Protects Him dworks Headwarks Rehabilitation and Eapareion at Rant No.1 - - - Hcmdwolke Rehabilllellon/Refurbohmenl 393,000 104.369 156,000 HeaEwOMe Improvements at Rant No.2 10.360.000 26,950,430 31,009,900 si Headnarks Cas strucilon Trailers at Plant No.2 1,017,000 Subtotal-Xaedwmks 11,776,000 27,054.799 31J65.900 _ Primary Treatment Primary Clarifiers 16-31&Related Faciiilles 7,501,000 5762,799 7,827.S0o Primary Treatment RembilludioNRefurbishment 1,912.000 2.e04,434 4,950,700 Subtotal-Primary Treatment 9,413,0110 6.567,233 12.784,200 r Secondary Treatment New Secondary Treatment System at Plant No.1 71911,000 4,705,498 4,859,400 Trickling Filter Rehebllilellan and New Clarl 0.255,000 4,581,441 7,022,500 Activated Sludge Rant Rehabllilailon 14,846,000 9.270,835 18,385.100 Secondary Treatment Monitoring&Control System Unmake 2,748,000 1,540,622 3,515,000 RehablMatlan of Activated Sludge Plant at Plant 2 734,000 305,144 633,20D Trickling Fillers at Plao(No.2 6.555.000 3.950,419 5.6901600 Subtotal-Secomilary Treatment 42.052,CD0 24,353,957 40,106,100 Solids Handling&Digestion Sludge Digester Rehabilitation at Plant 1 2.879.000 878.420 1.272,600 Sludge Oewalead,and Odor cen(ml el Plant 1 5.651,000 1.371,916 1,974,500 Truck Wash and Dewaledng Beds at Plant No.1 092,000 61,900 261,90) r Solids Storage and Trull Loading Facility 668,000 243,916 322,000 Rehabilitation of Solids SamBe Sllos A 8 B at P2 - - - Plant No.2 Prudery Sludge Feed System Pmjecl 2,055,000 1 204,012 2,288,100 Diameter Rehablliation at Plant No.2 324,000 - 193,400 Sludge Dewatering and Odor Control at Plant 2 86,000 - - Tule Ranch Biosolida Management Needs 64.000 71.574 71,000 Subtotal-Solids Handling&Digestion 12402000 3,631.738 6,352300 r (Continued) Section 3-Page 3 FY 2005-06 Third Quarter Report Summary of Capital improvement Construction Requirements-Current Year W For the Nine Months Ended March 31,2006 2005-06 200508 2006A8 Caehflow Actual at Projected v Budget 3f31y06 Outlay Osman Outiall Systems Peak Row Management 267,000 2W,888 540,100 W Effluent Pumping Station Annex 21,52SON 6.493,353 9,757,200 GOBS Remi ifilatbn Assessment Study 20D,000 455 No NPDES Pama Remsel NAW 23,1W 23.200 Subtotal-Osman Outiall Syatams 22,m2,000 6,779.831 10,321. 00 Utility systems Art Flash Hall Evaluation 26,000 36,717 67.800 Interplant Gas Lim Rehabilitation 1,018,000 186,217 303,600 cola ator Bus Split Protect al Plant Not.1 and 2 274,000 10.453 10,500 Standby Poser and Reliability MaE lloationa 1,U98,000 8119,731 1,272,800 Cable Tray Imi mvements at Plants 1 8 2 655.000 136,908 423.200 Air Ossify improvements 1,924,000 1,432.730 2,035.600 Ir Central Generation Automation 1,589,000 643,249 823.200 Fire Suppression for Servmm and Equipment at P1 8 P2 587,000 Raw 178,700 Eteclrical poser Distabulbn System Improvements - - - pass 166kVSabaladon 16,000 %,695 409.600 W Ges Compressor Addition m Plant No.2 1,657.000 464,442 615.000 ElecWcal Equipment Refutshment and Prmolon 1,362,000 198,892 414.400 Plain 1 Plan Water WD Replacement g8B4O00 752,706 839.600 Subtotal-utility Synema 11.151,000 4,a89,288 7,394,000 Odor Control Related Protests Rehabilitation of Odor Contrd Facilities 1,357,000 1,690.326 2,776,50D Digitaler Gas Building Odor Control Proleot 100,000 6.785 9,300 14 Odor Control for New Solids Truck Loading Station 150.000 1.505 1.800 Subtotal-Odor Control Related Projects 1,607,000 1,698,616 2,787,400 Process Related Special Project Diesel Exbausl Emissions Commis Options Study 237,000 0 IN v Evaluating Fine Screens for Primary Effluent - Plant 0 6 M Manuel and SOP Protect-Phase 1 a0g000 23.698 23,700 Cormslen Management 1,247,000 4a,015 48,100 y Spedel Projeola: Anaerobic Sefed Reactor(AM) 265.000 48,495 12UM Specal Projects: MiooffretiONPrimary Effluent 20.000 - - Spedel Projectss: WoUlokling Filter(STF) 130A00 82,115 130,000 Subtotal-Process Related Special Prejacls 2,899,000 202,416 330,400 W Plant Automation S ComPutadradon SCADA Historian Replacemem 200.000 640 700 Time Entry System 220.000 62,681 92,900 'W Poser Monibnng and Control Systems - Tr,29S 100,7m Fine als,and Grease(FOG)Soflw4re 25.000 15,274 15.300 Enterprise contrive Management Solution 175.000 5,484 SSD0 Documem Management 158,000 Strategic information Arohaadure(SIA) 500,00 85,351 891400 Intemetilmmanet Development 100,000 44,713 44,800 CMMS System Replacement 115,000 9.009 9,100 PD.S2D Software Replacement 20,000 Environmental Compliance Awareness Program 50.000 77,907 78,000 Cil¢en Relationship Management(CRM) 10g000 - - DimaterReeovery 21.000 - - Geo9rapNc Information System 345.000 32,211 32,300 60 Rnendal Imcrmation System Upgrade 505,000 212,482 212,500 Nelaork Equipment Upgrade 520,000 19,810 19,900 Subtotal-Plant Automation a Computerization 3,052.000 54%DW 670,100 W (Confined) Section 3-Page 4 W CIP Budget Review ,r Summary of Capital Improvement Construction Requirements-Current Year For the Nine Months Ended March 31,2006 2005.08 2005-06 2005-06 Cash0ow Actual at Projectad Budget 3131/06 Ouday Miscellaneous S Suppon Projects Facilities Engineering Projects-Joint 402.000 65,120 189,500 Facilities Engineering Projects-Plant 1 482.000 1,387,459 1,588,700 Fiscal.Engineering Projects-Plant 2 4",000 411,840 524,800 Area Classification Study Implementation Plan 9D9.D00 1.708,198 3,158.900 Modifications Is Editing Mmiesn eal Systems 112,000 - - Building RohabitilatlaNRefmbhhm inl - - - Spae,Nlocauon and uncle r Renovmion 1.239,000 169.564 169.600 m Ulooretory Rehabilitation 1,350,000 825,085 1.320,100 Utstralary Refurbishment at Real No.1 670,000 80,556 181,000 Regional FOG Consul Collection at Plant No.1 - - Plant No.2 Landscaping Project 90,000 52.052 140,700 tar Small Cap.Equip,Replacement Prefect solljo0 203,569 283,600 Meet Management Program 950,000 441,267 441,300 Warehouse Rumination Project 13D,000 55,326 55.400 Pram 2 Maintenance Building Modifications 54,DD0 39,598 106.300 Subtotal-Miscellaneous B Support Prolecta 7,455,01W 5.532,215 8,119.900 Water Management Projects Gmundwaler Replenishment System Bg811p00 65,587,969 75.602.600 Long Tons Permanent Monitoring Replan 648.000 224.004 224.100 Selected•Water Management Projects 85.459.00 55 D 812.063 75,826,700 ,r Strategic B Master Planning Collection System Model and StmtWx Plan Update 558.000 478,089 734,500 Treatmene Plant Slmtegm Plan Update 815,000 084.175 787.700 Orange County Smaollds Product.Sit,Study 500,000 39.600 39,700 m Unifying Strategies Implementation 2,060.000 Subtatal-Straegic S Meatar Planning 3,833.000 1.201,954 1,581.900 Research S Dovolop re nt e BmacoW Additive to Improve Anaeobk Digestion IN,= - Microstudge Process to Improve Anaerobic Digestion 250,000 - - NiWfrcationOJentriOcation Study 150p00 - - ve USSR Brine Management Grant Project 50,000 9.562 9.Ne Subtotal-Reaoarch B Development Se0m 9,%2 9.BD0 Additional Charges to CIP completed at 6130105 1.024,436 1.118.300 r Total Tmahrmnt and Disposal Projects 213.671,O00 141,604,166 198,547.8D0 Capital Equipment Pumhases 1,978,600 1.118.379 1,978,600 Total Collections and Troa yramm S Disposal r Projects and Capital Equipment Purchases _$ 277.110,600 S 169.353.096 $ 239,881,2W Section 3 -Page 5 y FY 2005-06 Third Quarter Report Summary of Capital Improvement Construction Requirements- Project Life rr For the Nine Months Ended March 31,20D6 Current Told Approved June 30,2005 Year Projected Remaining y Project Aecurrlulatod Projected Cost at Future Budget Cost Goal June 30,2006 Budget Collection System Impravemed lemlecls Called. y Greenville SolWaNRaill Strad Manhole Relab S 5,506,000 S - $ - S - 9 5,506,000 Santa Ana Tmnk Sexy Rehab. 17.057,000 419.472 67.500 498.972 16,570.028 Lower Maih-Bmadway MH Relabilitation 2,694,000 - - - 2,894,00D Cernlmusus Feed!chemical Trev"enl Facility 1,38 875.OD 1,000 381,156 D 1,255,156 104.844 Carbon Canyon Se and Pump Stmon Abandonment 7.694.000 981,354 255,300 1,236,659 6,457,346 Santa Are River Interceptor Rebel Serer 26,052,000 277,4M - 277423 25.7840" Santa Ana River Interceptor Realignment and PmL 9.584,000 2.586.207 1,962,a00 4,54a,8D7 5.035,193 be Abandonment of flee Easting SARI in SA River 13.383.000 151 - 151 13,382.849 Abandonment of Yorba Linda Pump Station 1,323.000 - - - 1,323,000 Taft Branch Impmvements 4,786,000 9.3116 2,70D 12,066 4,M.914 AMcod Subtrunk Improvements 5,140,000 110.352 - 110,352 5.029.648 Loxer Santa Ana River lnterceplor lrh mvemens 63,372,000 - - - 63,3M.D00 Euclid RafhA lmpmvemems-Reach'A' 29p.52,ODD 13510 - 13,510 29,638.490 Euclid Relief lmpmvemems-Reach-B' 20,995,000 - - - 20,996,000 y Santa Ana River Refef Serer,Reach B 63,735,OOD - - - 63,738,000 Nexhopoplacenlie 8 Cypress Tmnk Replacements 43.034.000 - M.41W 94,400 42,939,800 Upper a Loxes NewhopeAlacentia MH Rehabileaion 6,471,000 - - - 0.471.000 SARI and Scu Anahem Interceptor MH Rehabilitation 4,5MOOD - - - 4,573,000 'y Rehab6ftale Dame Siphons by Adding Air Jumper 6,501,000 294.197 657,600 951.797 5,5491203 Green Rver Meter Station M.000 - - - 704,000 Trask Branch of Me Hcpver-Westem Sublmnk 2,384,001) - - - 2,384,000 Rehabilitation of the W esnode Pump Station 7,300,000 930.616 485,400 1.417.016 5,BB2,SS4 y Wdeddle Relief Imercomm Los A smilers MH Rehab 30.517.000 - - - 30,517,000 Rehabilrti ion of the Seal Beach and Edinger PS 10,773,000 16,528 31,200 47,728 10.725,272 Miller-Holder Trunk Condi9cm Assessment 260.000 321 - 321 249.679 Rehabiaation of Magnolia Trunk Serer 77,5B3,000 - 170.000 170,000 R.413,1100 y Balbos Trunk Sever Rehabiha6on 7,87300D - - - 7.873,DDO Replacement of lire Baler Point Pump Station 29,019.000 1,645.664 481.500 2.127.464 28,691.535 Replacement of the Reel permit Pump Station 24,610,0111) 3272,723 290,600 3.521.323 21p83677 'y Rehabiuessem erf fine 141h Street Pump Station 8,888,000 3250,460 5,445.400 8.705,860 la2,140 Rehabilitation of the'A'Street Pump Slation 9.083.000 4.01 3,891.= 7,954,489 1.128,511 Rehab64atlon of the Bay Bridge Pump Station(95%) 18,93U,e50 326,987 118200 425,187 18,505,463 Crystal Cove Pump Sudan Intense Rehabililation 3,683,000 1.409 16.90D 18,309 3.664,591 y BiOe Point Force Man Rehabilitation 19.652.000 1,610273 200.900 1,811,1m 17,840,827 Newport Force Men,Ccmli ion Assessment 650,000 586 - 506 549,414 Bayside DMe Imp orement 2.436.000 - 100,800 100,800 2,33520D Realign 6 Rehab of Big Canyon Oasfte Trunk Serer 2280.000 - 380.600 3BOADID 1,899,400 6.+ Sun9oxer Interceptor Manhole Rehab 3,4M.000 1.055,781 1.414.600 2.470.381 951.619 Lemon Heights Subtrunk Street RehabOitatiern 2.543,000 122.068 99,600 M1,668 2,321,332 Gisler-Redhill Trunk Serer Relocation-Phase 1 1.160,000 156.315 205,300 361,615 798.385 Gsler-Redhlll Tmnk Improvements,Reach A 7,067,000 2.691.513 4.316.300 6.907.813 159,187 W Gisler-Redhill System Improvements,Reach B 6,893ODO 558,104 291 855.704 6.037.296 Orange Tmnk lmpmvemenls 5288,000 5252.189 25,600 5277,789 20.211 West Tmnk Impmvements 453.000 136,200 122,000 258200 194,a00 y Gisler-RedMIVNOM TmM lmpmvemmis 17,492,000 8.311.OB6 6,690.400 15,001,486 2.490,514 RelaePilahon of Om College Ave Pump SlaBon 7,403,01DD 395,10 614,4DO 1,009,553 6,393,447 Rehdegreateon of tit MacArthur Pump Station 3.S78,000 306.475 314,600 621,075 3,05GA25 Lower Gisler-Redhill Tmnk Relocation and MH Rehab 11,183030 - - - 11.185.000 V Upper GislerRedlell MH RehabAilatiem 8 Campus Dr 2.995,000 - - - 2,985,000 Edin9e Tlolset Grua TV lmpmvemens 4.176,000 - - 4,176,000 Comel Think Sewer Rehabiltnion 20,964,000 835,548 632,5410 1,468,048 19,495,952 blame Sewer Siphon 1,179,000 15.508 3,700 19,268 1.159,732 V° (Cmr6mmd) Section 3-Page 6 y CIP Budget Review Summary of Capital Improvement Construction Requirements -Project Life For the Nine Months Ended March 31, 2006 Current Total Approved June 30,2005 Year Projected Remaining project Accumulated Projected Cost at Future Budget Cost Cost June 30,2DO6 Budget (Collestiom co sinned) CCTA Sever Reppad.Projects 309.000 124,135 (40,300) 83635 215.10 Permanent Odor Control Faslliges 3,11/11,000 - - - 3,848,000 North County Cole ns Yard 10,500.000 - 20.000 20.000 10.480.000 Facilities Engineer,,PmjecisCollectims 5,400,000 3112 153,000 163.342 5235,555 Replacement of the Ellis Ave.Pump Stallon 57.481.000 2,685.621 3.596,300 6.281,01 51.190.079 Bushord Trunk Sesser RehaNltlalbn 53.5a0,000 24,104,948 5.10.500 29.298.440 24281.552 as Pump Station P&IDs and Equipmenl Tagging 720.000 - - - 720,000 Additional Chargm to CIP Closed M 61301p5 4,075.830 34,553 162IM 196,753 3,878,877 Stdoodal-collesi ons 521.555,280 66,835.603 39.350,200 108,188,083 715,359.217 �' Noadworac RMebililatbn of the Bay Bridge Pump Station(5%) sell 17,209 4.600 21,809 974.541 Additional Charges to CIP Dosed at 61=05 SuMolal-Revenue Area 14 996,350 17.209 4.600 21,809 974.W Total Colleoeon 5ntem Improvement Projects 822,551,830 65,853,072 39,354,600 105,207,572 716,343,758 Treatmml&Disposal Prolacts Headivorls Headssprks Rehabilitation and Eaper slop at Plant No, 1 58,373,000 - - - 58,373.000 Headsserks RehabilitationdRefuNS 156,00 388,147 hment 4,920,000 210,147 0 4,553.853 Heirdssorks Improvements al Plant No.2 288,289,000 18,808,420 31,009,900 49,818.320 235,470,550 Headssorks Construction Trailers at Plant Na.2 1,085,ODO told 0p0 Soberest-Headworks 350,870,000 19.018.557 31,155,900 5g184,467 300,485,533 Primary Treatment Primary Clarifiers 16-31&Related Faciliges 69,760,0m 77,403,505 7,827.500 85,231,005 4,528,995 Primary Treatment RehabilllationRefufbishmers 104,150,000 3,503,534 4,956,700 8.460.234 05,889.765 Subtobl-Primary Treatment 183.01oODO S0,907,039 12,784.200 93,691,239 100,218,701 Secor dary Treatent r New Secondary Treatment SW.el Plain No.1 291,424,000 8.006.522 4,159,400 12,867,922 278.555,078 Triclding Filter Rehabilitation and New Clarirers 48,a50,000 38.626.040 7,022,800 45,645,540 1,201,1m AWvated Sludge Plant Rahstllhetion 50,280,000 4,433,451 18,385,100 22,514551 27,N1.449 Seoondsry Treatment Monibring&Control Sntem Upgrade 9,220,000 1,543.718 3,515.000 11,058,718 (1,838,718) ev Rehabilitation of Acllvated Sludge Plant at Plant 2 14,841,000 2.703.608 633,200 3,335.808 11,504,192 Tricking Filers at Plant No.2 253AMODO 4,106,662 51690,600 9,797,402 243,327,S38 Sumotal-SocoMary Treatment 665,720.000 65,422,201 40,106,100 105,528,301 550,191.em _ Sonde Handling&Digestion Sludge Digester Rehaolftation at Plain l 54,918.000 525,159 1,272.600 1.897.759 53.018.241 Sludge Denraterng and Odor oon rol at Plant 1 134,M.ODD W,t,41S 1,974,800 2,459.215 132223.785 r Truck Wash and Dessaterng Beds at Plant No. 1 4,805,000 24,076 251,80D 276.476 4,529.524 Solids Storage and Tmck Loading Facilily 15,822,000 14.045.047 322,0o0 14,07.647 854,353 Rehamlilauon of Solids Storage Sibs A&B at P2 10,483,000 1.719 - L7/9 10.481,281 Plant No,2 Primary Sludge Feed System Project 14,68HODO 901,865 2,266,100 3.173,965 11,510,035 Digester Rehabiliation at Rant No.2 31,10ZpDO - 10,400 103,400 30.91 SIWge Dassetemg and Odor Conlml at Plant 2 51,BB5,000 - - - 51,090,000 Tula Ranch Bird ids Management Needs 1,057.000 281,207 71,8m 352,807 704.193 SuMotal-Solids Handling&Digestion 319,249,000 le,970.088 5.=i.30D 23,322.908 295.926.012 (Continued) Section 3-Page 7 y FY 2005-06 Third Quarter Report Summary of Capital Improvement Construction Requirements -Project Life For the Nine Months Ended March 31,2006 Current Total Approved June 30,2005 Year Projected Remaining Project Accumulated Projected Cost at Future Budget coat Cost June 30,2006 Budget Ocean Ouaall Systems y Peak Flm Management 3.393,000 3.328.983 540,100 3.869,083 (476.083) Effluent Pumping Station Annex sajaii.ogif 39,348,549 917572W 49.105,749 14,530,251 DOSS Rehabiitation Assessment Study 20D.OW 1253 5W 1,763 198247 NPDES Permit Renew I 214.000 1230,2" 23.200 1.253,449 (1,039,449) y Subtotal-Ocean Ouffalf Systems 67.543,000 43,909,034 10.321.DW 54.230,034 13,312,966 edify,Systems Arc Flash Hasad Evaluation 1611,e00 4,706 67.800 72,506 87.4W V Interplant Gas 1-tee Rehebllilation 3.076,OW 73,482 3W,800 377.082 2.ne8,918 Generator Bus Split Project at Plant Nos.1 and 2 5.426.000 - 10.500 10.500 5,415,500 Standby Pave and Relisb94y Modifications 19,028,000 17,328.9m I-MAW 18.601.753 427247 Cable Tray Improvements at Plank 182 37.057.000 1,194.600 4232W 1,617.ae0 35.439.140 y Air Quality improvements 8,817,000 4,039.717 2,035.603 6.075.317 741.683 Cenbal Generation Autamation 6.794,000 355,899 623.200 1.179.099 5.614,901 Fire Suppression for Servers and Equipment at Pt 8 P2 087,0110 60.507 178.700 239.207 447,793 Electrical Poser Distribution System Improvements II.a46,000 - - - 11.046,000 y Plant 1 all Substation 5.173,000 25.077 409.800 434,877 4.738.323 Gas Compressor Addition at Plant No.2 ll W.OW 390282 815,01)(1 1.005,292 10.554,708 Electrical Equipment Refurbishment and Pmtection 3.837.000 317.088 414.40D 731,4N 2.905,512 Plant 1 Plant Water YFD Replacement 1,547.= 258,677 8a9,8g0 1,008,277 448.723 'y Subtotal-Utility Systems 112,W9,000 24,049.058 7,304,000 31.443.058 80.555.942 Odor Control Related PrejMs Rehabilitation of Odor Control Facilities 53.707.000 3.541,859 2.776.SW 6.318,35E 47,389.641 y Digester Gas Building We,Control Project 1110.0110 - 9.30D 9,300 90.700 Odor Conlml or Nan Solids Truck Loading Station 150,0W 1,600 1.800 148.440 Subused-Odor Comrd Related Projects 53,957.ODO 3,541.8% 2.767.400 6.329259 47,627,741 Process Related Special Project `- GloselExhaustEmissionsConnoteOptionsStudy 25O.ODO 3.229 10D 3,329 246.671 EvalustIng Fine Sc eens for Primary Effluent 75.0011 - - - 75.000 Plant O 8 M Manual and SOP Project-Phase 1 4,000,000 479,802 23.700 503,502 3,496,498 Corrosion Management 7,548.0100 M297 48,100 324,397 7223,6113 y Special Projects: Antembic Bawled Reactor(ABR) 455,0W 138.015 128.500 204.515 190,485 Special Projects: MicreSketloNPnmary Effluent M000 3.216.540 - 3.216,540 (3.198540) Special Projects: BiatrirAlirg Fllte,STF) 280.000 673.578 130AW BW,578 (523,578) y Subtotal-Process Related SPeclal Project 12.028,000 4.785,461 330.400 5,115,861 7.512,139 Plant Automation 8 Computedeation SCADA Histoden Replacement 456.000 - 70D 701) 455.300 Time Entry System 250,W0 22.134 02.9011 $5,034 164,906 lr Poser Monitoring and Control Systems 4,042,01101 35.482 100,700 136.182 3.905,818 Fats,Oils,and Gresse(FOG)Saitevere too.= 35.568 15.300 50.868 49,1W Entente.Contract Management Solution 1.175.000 - 5.500 5,500 1,1e9,500 Document Management 864,000 591,859 - 591,859 272,141 y Strategic Information Arcidtectum(SIA) I'M. p 520.880 88.400 618.280 1,378.720 Intemedintranet Development 650p00 278.396 44.800 323,199 326,804 CMMS System Replacement 3,789,000 32,361 9,100 41.461 3,747,539 V PDS2D Sofaem Replacement 250.000 - 250.010 Environmental Compllarce Awareness Program 330.000 60'= 78,OW 138,3W 191,70111 CObet Relationship Management(CRM) 250,= - - - 250.000 Dusastar Recovery 21.000 - - - 21.0001 Geographic Information System 4.157,0110 570.643 32.300 11M.M3 3.554.057 Lao Financial Information System Unpins, 3,BB5,000 2.879.184 212. 00 3.091,884 903.310 NeMak Equipment Upgrade 2,901,000 1222.805 1g,8W 1,242.705 1.058,295 SUMotal-Plant Automation S Computerisation 25,125.001) 6,258,812 670.100 6,028,712 18,196,285 y (Continued) Section 3-Page 8 CIP Budget Review er Summary of Capital Improvement Construction Requirements-Project Life For the Nine Months Ended March 31,2006 Current Total r Approved June 30,2005 year Projected Remaining Project Accumulated Projected Cost at Future Budget Cost Cost June 30,2006 Budget Miscellaneous S Support Projects s Fac08ies Engineering Projects-Joint 18,200.000 205.816 189,50D 395.316 17,804.684 Facilities Engineering Projects-Plant 1 18.200.000 699783 1.568.700 2259.463 15,040.537 Facilities Engineering Projects-Plant 2 18.200.000 986.480 524.800 1,511,280 16.588,720 Area Classification Study Implementation Plan 28,970,000 25.705,01 3.156,900 28.864.531 (1.994,531) Modifications to alsddi Mechanical Systems 3,507,ODD 272,215 - 272,215 3,234,785 Budding RehabNta0o fRe0lrbishment 1.056,000 169 - 169 1.455.831 Space Allocation and Interior Renova0on 18,572,000 1,500,425 169,600 1,670,025 16.901,975 Upordory Rehabllhalion 1,777,000 319,751 1.320,100 1.639,051 137.149 labord ir,Refurbishment at Plant No.1 6,912,000 - 161.000 161,000 6,751.000 Regional FOG Cpnbol Collection at Plant No.1 3,195.000 - - - 3,195.000 Plant No.2 Landscaping Pmject 90.000 - 140.700 140,700 (50,700) Small Cap.Equip,Replacement Project 3,000.000 2,495.971 283AOD 2.779,571 220.429 Asset Management Program 7,750.000 029.081 441,300 1,070,381 6,670,619 Warehouse Reinvention Project 600.000 214.806 65.400 270,208 329,794 Plant 2 Maintenance Building Modifications, 354.000 ss"I 106.300 161,371 222,528 u Subtotal-Miscellaneous 8Support ProjeW 123.813.000 93.078,178 6.119.800 41.186.079 87.618.921 Water Management Projects r Groundwater Replenishment System 251,680,OD0 67,114.411 75,802,600 142.717,011 108.942.980 Long Tenn Permanent Monitoring Program 7.074,OOD 5,098.262 224.100 6.222.352 851,648 Subtotal-Water Management Projects 258,734,0D0 73,112,653 75,826,700 148,939.383 109,794,637 Strategic B Master Planning Collection System Modei and Strategic Plan Update BELOW 308,/10 734,500 1.040.910 (3541910) Treatment Plant Strategic Plan Update 3,620,000 1.794.953 787,700 2,582,653 1,037.347 Orange County Biosolids Production Siting Study 700.000 78.083 39.700 118.633 581,317 r Unifying Strategies Implementation 2,060.0D) 2.060,000 Subtotal-Smateglc B Master Planning 7,006.000 2,180.346 1.561,900 3742246 3.323,754 Research 8 Development Bioscepe Additive to Improve Anaerobic Digestion 150.000 - - - 150,000 Mismaudge Process to Improve Anaerobic DgesOon 250,000 - - - 250,000 Nilriricalion/Dentri0weon Study 150,000 - - - 150.000 USBR Brine Management Grant Project 100.000 9,600 9.600 90,400 Subtotal-Research 8 Devalopmee, 650.000 9,600 9,600 640.400 Additional Charges to CIP Completed at&30105 7.002,ODD 5.043,495 1 118,300 6761795 240.205 r Total Treatment and Disposal Projects 2,203,076.000 378,875.202 198,547,800 577,423.002 1,625,652,998 Capital Equipment Purchases 19.978,600 2,751.449 1,978,600 4.730,049 15,246.551 Total Collections and Treatment&Oispasal Projects and Capital Equipment Purchases 3 3,045,605,230 $ 4tS.479.723 5239,881.200 $ 688,360,923 S 2,357.245,307 r Section 3 -Page 9 W FY 2005-06 Third Quarter Report W W W W W V W V This Page Intentionally Left Blank W W W r W W W W W Section 3-Page 10 W Capital Facilities & Debt Service Budget Review s Revenue Areas Capital Facilities and Debt Service Budget Review For the Nine Months Ended March 31,2006 Capital Facilities Budget Review m Balance Year-to-Date Balance 07101/05 AddNiOrre 3131106 CONSTRUCTION IN PROGRESS: m Treatment Plant $ 447.768,491 $ 142,722.545 $ 590.491,036 Collection System 40,116,086 26.630.551 66.746,637 Subtotal 487,884,577 169,353,096 657.237.673 r PROPERTY,PLANT S EQUIPMENT(at cost): Land and Property Rights 13,021,480 - 13.021.480 Collection Lines and Pump Stations 438.850.245 - 438,850,245 it Treatment Facilities 669.672.368 - 669,672.368 Effluent disposal facilities 97.014.820 - 97,014,820 Solids disposal facilities 3,074,494 - 3.074.494 General and administrative facilities 126,498,444 126,498,444 Subtotal 1,348,131,857 1,348,131,851 Total Property,Plant&Equipment&CIP $ 1,836,016,428 $ 169,353.096 $ 2,005,389,524 r rd Debt Service Budget Review 201l Year-to-Date Remaining Budget Payments %of Budget Budget Principal Payments by Debt Issue: 1992 Refunding COP $ 7,155,000 $ 7.155.000 100,00% $ 1093 Refunding COP 4.800.000 4,800.000 100.00% - r 2000 COP 800.0D0 800,000 100.00% - 2003 COP - - NIA - 2006 COP NIA .b Subtotal Principal Payments 12,755.000 12,755.ODO 100.00% Interest Expense by Debt Issue: 1992 Refunding COP 5,201,252 4.157.173 79.93% 1,044.079 1993 Refunding COP 1,716.840 1.398,056 81.43% 318.784 20DO COP 7,933,347 4,051.258 51.07% 3,882,089 2003 COP 14,221,250 10,632,530 74.77% 3,588.720 2006 COP 6,758,311 401,200 5.94% 6,357.111 Subtotal Interest Expense 35,831.000 20,640,217 57.00% 15,190.783 Total Debt Service $ 48,588,000 $ 33,395,217 68.73% $ 15,19D,783 Section 4-Page 1 v 2005-06 Third Quarter Report W This Page Intentionally Left Blank W W w Section 4-Page 2 W Self Insurance Budget Review General Liability and Property Fund Budget Review For the Nine Months Ended March 31,2006 Percent Actual of Budget Remaining Actual ++ 2005-05 Through Through 200546 Through Increase Budget 3131106 3131106 Budget 3131105 (Decrease) Revenues: In11eu Premlume $ 2.160.000 $ 1,620.000 75.0(Y% $ 540.000 $ 825,003 $ 794.997 Service Depenmerd Allocation 3,400 2,547 74.91% 853 1.566 981 Allocation loan 06ar Funds 10,000 9,366 93.66% 634 775 8.591 Total Revenues 2,173.400 1,631.913 75.09% 541,487 827.341 804.569 Expanses: Benefils/Geims 200.0%) 31,472 15.74% 168,528 12.738 18,734 Contractual Services 1,500 600 40.OD% 900 600 - Legal Services 396.D00 101,874 25.73% 294.126 262,092 (160,818) Professional Services 5.000 2,911 58.22% 2.089 965 1.046 Subtotal 602.500 136,857 22.71% 455.643 276,995 (140.138) Policy Premium E)qierae 1,10D,000 758.997 69.91% 331,OD3 869,688 (100,691) ,r Total Expenses 1.702.500 905.854 53.21% 796.646 1,146.683 (240.829) Excess Revenue(Expenses) 470,900 726,059 154.19% $ (255.759) (319,339) 1,045.398 Beginning Reserves 54.529,100 54.605.085 55,000,000 (394.915) Ending Reserves $ 55.000,000 $ 55.331.144 $ 54.680.661 $ 650.483 Section 5-Page 1 FY 2005-06 Third Quarter Report W Workers'Compensation Fund Budget Review r' For the Nine Months Ended March 31,2006 W Percent Actual of Budget Remaining Actual 2005-06 Through Through 2005-06 Through Increaee Budget 3131106 3131106 Budget 3131105 (Decrease) Revenues: In-Lieu Premiums $ 425,000 $ 318,750 75.00% $ 106,250 $ 525,000 $ (206,250) Service Department Nbcelions 300 225 75.00% 75 387 (162) Total Revenues 425.300 318.975 75.00% 106.325 525,387 (206,412) w Expenses: Benefits/Claims 300,000 100,446 33.48% 199,554 190.973 6W (90,527) Contractual Services 30.000 22,685 75.62% 7,315 33,152 (10,467) e Legal Services 25,800 28.710 111.28% (2,910) 14,317 14,393 Professional Services 25,000 - 25.000 2,710 (2,710) Subtotal 380,800 151,841 39.87% 228,959 241,152 (89,311) Policy Premium Expense 210,000 160,798 76.57% 49,202 156,288 4,510 W Total Expenses 590.800 312,639 52.92% 278,161 397,440 (84,801) Excess Revenue(Expenses) (165,500) 6,336 -3.83% $ (171,838) 127.947 (121,611) u Beginning Reserves 2.165.500 2,288.153 2,000.000 288,153 Ending Reserves $ 2,000,000 $ 2,294,489 $ 2,127,947 $ 166,542 V m W Section 5-Page 2 W a 0 P� May 10, 2006 STAFF REPORT Quarterly Treasurer's Report For the Three Months Ended March 31, 2006 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-Tenn 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. ADDITIONAL INFORMATION e 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 December 31, 2005 and March 31, 2006. The Liquid Operating Monies portfolio, with an average maturity of 73 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 January 1 through March 31, 2006. r MM • ROBo"8127 • Fo WmV8 ,GA 9272 127 • (714)M.2411 Quarterly Treasurer's Report For the Three Months Ended March 31, 2006 Page 2 of 3 ti Portfolio Performance Summary Quarter Ended March 31,2006 Liquid0peraung on ea(%) ong- enn Operating Monies I% `lyy -Tins ate a of Return Benchmark") Realm Benchmark"' Months 1. Months 2. w Months 2. 1 Months 3.7 3.47 .13 .28 since ncep on 30 Sept 05 4.1 Market value $71.9M $246. vemge Quality current Yield(%) 3.7 4.2 Estimated Yield to Maturity( ) 4.0 Quarterly Deposits(Withdmwes) 11.1M .8 s0mated Annual Income $3.3m $10.4101 (1) Benchmarks: - • Liquid Operating Portfolio: 3-Month Treasury Bill Index • Long-Tenn Operating Portfolio: Merrill Lynch Corp/Govt. 1-5 Year Bond Index W Portfolio Market Values Comparative marked-to-market quarter-end portfolio values are shown in the following table, and In the r attached bar chart. Liquid Long-Term W Quarter Operating Operating Ending Monies($M) Monies($M) 30 Jun.05 39.1 342.8 30 Sep.05 59.5 253.4 31 Dec.05 60.1 _214.9 31 Mar.09 71.9 245.5 I� District's Investment Account Balances as of March 31.2006 Book Balances Estimated lr Investment Accounts March 31,2006 Yleld(%) State of Calif.LAIF $ 29,639,946 4.14 1.l Union Bank Checking Account 958,797 4.40 Union Bank Overnight Sheep Account 425,000 3.91 PIMCO-Short-term Portfolio 71.508.460 4.53 PIMCO-Long-term Portfolio 243.298,319 5.08 W Petty Cash 4.13DO N/A TOTAL au5 Saa 522 4.87 A 84 0B'1 opt Debt Service Reserves w/Truataea 4.54 led W Quarterly Treasurer's Report For the Three Months Ended March 31, 2006 Page 3 of 3 District's Cost of Funds on Debt Issues as of March 31.2006 Annual Cost of Funds Outstanding Int Issue Description COP Balance Rate(%) 1992 Syn Fixed 5 100,275,000 5.55 1993 Syn Fixed 42,050,000 4.56 2000VRDO 199,000,000 2.96 2003 Fixed 280,000,000 5.15 2006 VRDO 200.000.000 3.06 TOTAL 5821 12SOOn Weighted Avg Cost of Funds 4.13 d ATTACHMENTS r 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) ., 12. Rating Agency Comparisons r r r J HISTORICAL YIELD CURVE I I 5.50 j 5.25 5.00 4.75 4.50 4.25 4.00 3.75 3.50 0 3.25 w 3.00 > 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 D.75 — 0.50 E E s S S T T T 5 5 rr m a n ♦ m r e $ ag t30-3ep-05 —k-31-Deo-05 f31-Mar-06 I P I M C O + April 24,2006 Mr.Mike White, CPA Controller Orange County Sanitation District 10844 Ellis Avenue Fountain Valley,CA 92708-7018 Dear Mike: e The following is a description of events in the bond markets during the 1st quarter of 2006 in addition to 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 is a section on strategies to be pursued in your portfolio during the coming months. + Bond Marker Recap., Higher Rates Crimp Fixed Income Returns in First Quarter Rising interest rates in the U.S. and around the globe weighed on bond market returns in the first quarter of 2006. In the U.S.,rates climbed across the yield curve. Shorter maturity yields rose amid + concern that the Federal Reserve would extend its current tightening cycle. Yields on longer maturities were affected by the potential for monetary contraction in Europe and especially Japan to draw capital away from U.S. bond markets. a The Fed tightened twice during the period, bringing the federal funds rate to 4.75 percent. The second increase new the end of the quarter was the Fed's 15i°consecutive rate hike, adding 3.75 percent to the federal funds rate since the start of its tightening cycle in 2004. The European Central Bank joined the Fed in raising rates during the quarter. The Bank of Japan announced the end of its "quantitative easing" policy, which has flooded Japanese markets with liquidity. Unwinding of this policy will remove a low cost source of financing for investors looking to make longer term, higher yielding investments. The Lehman Brothers Aggregate Bond Index, a widely used index of high-grade bonds, returned- 0.65 percent during the quarter. The benchmark ten-year Treasury yield ended the quarter at 4.85 + percent, 46 basis points higher than at the start of the year. The U.S. yield curve remained relatively flat and was inverted for much of the quarter. Investors looking for clues to the direction of interest rates continued to focus on the property market as the main driver of Fed policy. Evidence from the housing sector pointed to a slowdown, but the erosion was not yet substantial enough to convince investors that a halt in Fed tightening was imminent. New home sales fell overall, with a sharp drop in the frothy West region. The inventory of unsold new houses continued to climb and the median new home price actually fell late in the quarter. Slower growth in home equity loans and a decline in cash-out refinancings versus a year ago suggested that the softer housing market might soon begin to affect consumption. V Mr.Mike White, CPA April 24, 2006 Orange County Sanitation District Page 2 r, Higher Yielding Bond Sectors Outperform as Rates Rue The following summarizes sector returns for the first quarter. • Mortgage-backed securities outperformed like-duration Treasuries during the quarter, supported by unusually low levels of volatility. Financial institutions both in the U.S. and abroad continued to be major buyers of mortgages despite the apparent disincentive of the flat y yield curve. These institutional buyers were motivated by the lack of alternative sources of high quality yield. w • High-grade corporate bonds outpaced like-duration Treasuries in the first quarter. Non- investment grade bonds fared even better. Credit fundamentals remained strong as corporate earnings continued their solid momentum. Many companies' balance sheets were supported by ample cash reserves. However, increasingly rich corporate valuations presented more risk for investors going forward. • Results from real return and municipal bonds were mixed. TIPS lagged versus nominal bonds during the quarter, reacting more to expectations of Fed tightening than to the outlook for _ inflation. Maus, which usually outperform as rates rise, outpaced Treasuries due to their more stable retail investor base. • Emerging market bonds continued to post strong returns despite rising rates worldwide. Credit premiums in the sector tightened during the quarter amid strong mutual fund inflows, modest new issuance and continued improvements in economic fundamentals in many EM countries. • Government bonds of developed economies fared poorly amid concern about monetary - tightening. Intermediate maturity European bonds lagged Treasuries as investors reacted to stronger economic data and prospects for more rate increases by the ECB. Japanese issues performed more in line with the U.S.while the U.K.outperformed. Performance Attribution: Long-Term Portfolio The Long-Term portfolio that PIMCO manages on behalf of Orange County Sanitation District returned 0.46 percent over the quarter, outperforming the Merrill Lynch 1-5 year Government ,•, Corporate Index by 28 basis points. The following points summarize returns for the quarter ended March 31,2006. yr • Your portfolio outperformed its benchmark for the quarter • Interest rate strategies were neutral but sector strategies added high quality income and helped performance • The following strategies added to returns during the quarter: ➢ Enhancing yield with a mortgage emphasis; mortgages outperformed like-duration Treasuries and compensated for the negative impact of a corporate underweight • The following strategies detracted from returns: V V r Mr. Mike White, CPA April 24, 2006 '• Orange County Sanitation District Page 3 ➢ Modest TIPS holdings; real yields rose more than nominal yields amid concern about continued Fed tightening Liquid Portfolio y The Liquid portfolio that PIMCO manages on behalf of Orange County Sanitation District generated a total return of 1.04 percent during the quarter, outperforming the 3-month Treasury Bill Index by I basis point. The following points summarize returns for the period ending March r 31,2006: • Your portfolio performed near its benchmark for the quarter r • Broad diversification and sector strategies helped returns and offset the negative impact of increasing short rates from Federal Reserve tightening • Near-benchmark duration was neutral for performance �. • The following strategies added to returns during the quarter: ➢ Asset backed issues,which gained due to their incremental yield advantage _ ➢ Corporate bonds,as credit spreads continued to narrow Economic Outlook: r Transition to Self-Sustaining But Slower Economic Growth The global economy is transitioning away from policy-driven growth engineered by major central banks towards more self-sustaining, internally generated growth. The Federal Reserve and the European Central Bank have already stepped back from monetary reflation.The Bank of Japan has announced its intent to do the same. PIMCO expects that the U.S., Japan/China and the Eurozone have sufficient sources of internal demand to withstand the withdrawal of monetary stimulus. The risks to our forecast are primarily to the downside, as each of the world's biggest economies have structural weaknesses that could make the withdrawal more painful than anticipated. Key elements of the outlook are: • U.S. to Grow at Slower Pace-The corporate sector is robust and capital spending is growing, '^ but much of this investment will be directed to emerging economies. The main U.S. structural vulnerability remains the property market, which has recently been the pillar holding up consumer spending. Euphoria in the housing sector is eroding, but in this momentum driven •` market the slowdown and its follow on impact on consumption will unfold gradually. A weaker housing market will be accompanied by a decline in mortgage equity withdrawals, which have helped fuel consumer spending in an environment of stagnant real wage growth. r • Fed Tightening Nearly Finished - The Federal Reserve has tightened consistently and predictably over the last two years to bring monetary policy back to a neutral level. The U.S. ..� central bank is now data driven, looking closely at trends in housing, retail sales and unemployment. PIMCO expects the Fed's current tightening cycle will end with a federal funds rate near 5 percent as evidence of a weaker housing market builds over the course of W Mr. Mike White, CPA April 24, 2006 � Orange County Sanitation District Page 4 2006. Historically, an easing cycle quickly follows the end of Fed tightening. We expect the r' same pattern to prevail this time. • Modest Monetary Contraction in Japan — A pullback of Japanese monetary stimulus �•+ threatens to affect Japanese demand as well as global asset prices, which have been supported by investors' ability to borrow cheaply in Japan.Mitigating these risks is PIMCO's expectation that Japan's monetary contraction will be modest and gradual. Japanese corporations and r consumers may not be able to withstand a more aggressive policy. Japan's economy will be bolstered by high valued exports and investment tied to Chinese growth, which shows no signs of abating. • Balanced Growth in China - Chinese growth will come from exports as well as internal investment related to its build out of domestic infrastructure.China has a command and control w government structure that will press forward with this investment program, especially in light of the Olympics planned in 2008. Consumer demand in China is still in the development stage - and is not likely to be a major contributor to global growth in 2006. W • Corporate Sector to Support Euroland -The European corporate sector is surging thanks to strong demand for its exports and productivity gains reaped without recompense to workers. Europe's structural weakness continues to be consumer demand, which is being held back by weak income growth arising from labor market reforms at home and competition from lower wage labor to the east. W • Global Inflation Well Contained - Recently higher headline inflation will move closer to more benign core inflation. The latter excludes volatile food and energy prices. Wage/price pressures are under control worldwide amid an abundant supply of workers in the emerging r economies. Position Portfolios for More Favorable Fixed Income Markets - PIMCO underestimated the extent of Fed tightening and yield curve inversion, but we believe W bonds could fare well as markets anticipate the end of this tightening cycle. A favorable move in bonds becomes more likely the tighter the Fed goes. We have positioned portfolios for this outcome, but remain well diversified to guard against a less positive result. Key strategies will w include: • Interest Rate Strategies — We will target duration moderately above the index as we expect the economy to slow over the rest of the year. PIMCO will continue to emphasize short to intermediate maturities in the U.S. While this strategy has not fared well recently, it should pay off as the yield curve reverts to its more typical, steeper shape. Where permitted, we will focus on similar maturities in the U.K., where we also expect the yield curve to steepen. • Mortgage-Backed Bonds - PIMCO will trim its mortgage overweight, taking profits after the sector's strong performance in recent months. A lighter allocation will put PIMCO in a 4. 1r Mr. Mike White, CPA April 24, 2006 Orange County Sanitation District Page 5 better position to add mortgages later should heightened interest rate volatility create buying opportunities. • Corporates - Valuation remains a major risk in the corporate bond market. With credit premiums near historic lows and default risk expected to rise as the economy cools, PIMCO will retain its underweight to the sector. We will compensate for income lost from •. the corporate underweight by retaining an overweight to mortgages,albeit a reduced one. • TIPS and Munis - In a benign inflation environment, PIMCO will continue to de- emphasize TIPS on a tactical basis. We will hold longer dated TIPS, which should gain from demand from corporations looking to hedge pension liabilities. PIMCO will hold municipal bonds to capture their relatively attractive yields compared to taxable bonds. Munis also offer cheap insurance against higher rates, as a stable base of retail investors allows munis to hold their value better than taxable bonds when rates rise. • Developed Non-U.S. - PIMCO will continue to de-emphasize European bonds. Their yields are well below those in the U.S.and could rise if the European Central Bank tightens further. • Emerging Markets - PIMCO will retain its overweight to emerging market bonds to take advantage of continued improvements in their credit fundamentals. However, we will trim this overweight to harvest recent gains in these bonds. Credit premiums in emerging '•' markets could widen amid concern about monetary contraction in Japan, a source of low cost financing for some EM investors. w • Currency — We will take modest exposure to the yen, euro and emerging market currencies. The end of Fed tightening could result in flows of capital out of the dollar toward markets with higher or rising yields. Strateev+ The following list highlights the strategies that will be used in the Long Term portfolio in the coming months: �. • Position portfolios for a favorable bond market environment as the economy cools and Fed tightening draws to a close Target duration moderately above the index as slower growth will create downward pressure on interest rates Target broader-than-index curve exposure to exploit value along the yield curve • Retain emphasis on mortgages, which add high quality yield to the portfolio; trim holdings to harvest recent gains • Underweight the richly valued corporate sector; compensate for lost corporate income with a '. mortgage emphasis Mr Mike nue, CPA April 24, 2006 Orange County Sanitation District Page 6 The following list highlights the strategies that will be used in the Liquid portfolio in the coming months: W • Position portfolios for a favorable bond market environment as the economy cools and Fed tightening draws to a close • Target duration moderately above the index as slower growth will create downward pressure on interest rates • Continue to hold high quality,short duration asset-backed bonds as an additional source of safe yield M° • Limit corporate holdings;credit premiums remain near historic lows and defaults could rise as the economy cools yr We look forward to discussing these and other topics with you in the near future. - W Best regards, W Christine Telish, CFA John M. Miller,CFA r Vice President Executive Vice President W u w W 6v 69 I 1 1 1 1 i 1 1 1 1 1 1 1 1 1 l 1 1 1 'OCSD Investment Management Program Quarter End Portfolio Values (Ma*ed-to-Matkaq $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200.000.000 - $160,000,000 $100.000,000 $50,000,000 - $0 31 Dec 06 31 Mar 05 30 Jun 05 30 Sep 06 31 Dec 05 31 Mar O6 113 Liquid Operating Monies 0 Long-Term OPma0np Mantes Summary of Performance Data and Portfolio Statistics Orange County Sanitation District 1ar..we.nva.es.e.rlowaaew Liquid Operating Portfolio 10 is CWVGW rr. r e ML1an. ww.w.aafp Total Portfolio' A T^' q Before Fees(%) 4.19 2.46 2.16 3.70 2.96 206 1.04 3 4 1 :o0e After Fees 1%) 4.04 2.31 2.00 3.52 2.82 2.00 1.01 !` Ciligroup 3 Month Treasury Bill 2 Index(%)t 378 2.14 2.01 3.47 2.76 1.95 1.03 0 0 2 4 e e 10 9lenaaN Oevlallon 01 ReNmr(%) %of Markel Value Duration In yrs CRT. . rrImm M . . rr rrM, rrWISOM Total Market Value($MM) 60.1 71.9 Government 16 21 0.0 0.0 Quarterly Conlnbutions($MM) 0.0 11.1 Mortgages 0 a 00 0.0 Estimated Annual Income($MM) 2.4 3.3 Corporates 3 2 0.0 0.0 Estimated Yield to Maturity(%) 4.1 4.5 High Yield 0 0 0.0 0.0 Estimated Dure0on(yrs) 0.1 0.2 Non U.S.$Developed Issues 0 0 0.0 0.0 Average Maturity(yrs) 0.1 0.2 Emerging Markets Issues 0 0 0.0 0.0 Average Quality AAA AAA Other 0 0 0.0 0.0 Average Coupon(%) 34 3.7 Net Cash/Money Markets:' 81 77 0.1 0.1 Net Currency Exposure(%) 0.0 0.0 Commercial Paper/STIF 59 57 0.1 0.1 Tracking Error(3 yrs,%)'* 0.1 0.1 ST Government 0 0 0.0 0.0 Information Ratio(3 yrs)'' 2.4 2.2 Certificate of Deposit 4 0 0.0 0.0 See exampleof tracking error Information ratio on Bankers Acceptance 0 0 OD 0.0 footnote page of the Appendix. Money Mkt Futures 0 0 00 0.0 Less:Liabilities 18 20 0.0 0.0 Total 100 100 O.1 0.2 See footnotes In Appendix. 2 [ T d [ E E [ g E ! [ [ t C f [ £ E f 1 1 1 i 1 l I I 1 1 I I 1 1 i l 1 1 1 Summary of Performance Data and Portfolio Statistics Orange County Sanitation District Long Term Portfolio 10•Year 9etum vs.Standard 0evMaen a X LfiAG Total Portfolio' IMax rc Before Fees(%) 5.60 4.16 2.39 3.13 1.35 1.15 1.46 8 4 Cjm..P 3. After Fees(%) 5.44 4.00 2.23 2.95 1.21 1.06 0A2 MP 42 Merrill 1-5 Year Gov`LCorp.(%)2 5A0 4.02 1.85 2.28 0.60 0.76 DAIS 0 - 0 2 4 a a aWgaN OwIMM araatumr(%1 %of Market Value %af Ouration My.t. ar rr. Total Market Value($MM) 214.9 245.5 Government 79 73 69 71 Ouanedy Conbibutions($MM) 40.0 29.6 Mortgages 17 16 23 22 Estimated Annual Income($MM) 9a 10.4 Corporates 3 1 3 1 Estimated Yield to Maturity(%) 4.9 5.2 High Yield 0 1 0 0 Estimated Duration(yrs) 2.5 2.4 Non U.S.It Developed Issues 0 0 0 0 Benchmark Duration(yrs) 2.4 2.4 Emerging Markets Issues 0 0 0 0 Average Maturity(yrs) 3.0 2.8 Other 0 0 0 0 Average Quality AAA AAA Net Cash Equivalents:' 1 9 5 6 Average Coupon(%) 4.0 4.2 Commercial Paper I STIF 1 2 0 a Net Currency Exposure(%) 0.0 0.0 ST Mortgages 2 1 0 0 Tracking Error(3 yrs.,%)'' 0.5 0.5 ST Corporates 14 11 1 1 Information Ratio(3 yrs.)` 0.9 1.1 ST Government 13 16 4 5 •Sae example of tracking error l Information ratio an Ogler 8 1 0 0 footnote page of the Appendix. Lees:Llabililles -37 .22 0 0 Total 100 100 100 100 See footnotes In Appendix. 2 ar Orange County Sanitation District Investment Transactions and Balances in the State of California Local Agency Investment Fund March 31, 2006 w rr Par Value Book Value Market Value Rate Yield " Balance March 1,2006 $7,039,946 $7,039,946 $7,039,946 4.14 4.14 Deposits: 3/9/2006 37,000.000 37,000,000 37.000,000 4.14 4.14 ry Total Deposits 37,000,000 37,000,000 37,000,000 4.14 4.14 W Withdrawals: 3/1/2006 (4,100,000) (4,100,000) (4,100,000) 4.14 4.14 W 3/15/2006 (5,000,000) (5,000,000) (5,000,000) 4.14 4.14 3/16/2006 (5,300,000) (5,300,000) (5,300,000) 4.14 4.14 r Total Withdrawels (14,400,000) (14,400,000) (14,400,000) 4.14 4.14 Balance r March 31,2006 $29,639,946 $29,639,946 $29,639,946 4.14 4.14 W W rr Ira Asset Summary Report ID:GL8251 Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Eachan8e Rate: LIQUID OPER-PBBCO-OCSF07511102 3/31/2006 Status:FINAL Net Unrealized Coat Market Value %of Gain/Loss Description Shares Par Base Base Total Base CASH a CASH EQUIVALENTS U.S. DOLLAR INTEREST 381,371.98 381,371.98 0.53% 0.00 CERTIFICATES OF DEPOSIT.DOMESTIC S00,000.000 799.950.00 799,960.00 1.11% 0.00 COMMERCIAL PAPER-DISCOUNT 4.800.000.000 4,744,441.67 4,744,44167 6.60% 0.00 FED HM LOAN RINK-LESS THAN IYR 14,461,000.000 14,228,501.71 14,228,501.71 19.79% 0.00 FEDERAL HOME LOAN MORTGAGE-LESS THAN 13,500,000.000 13,194,103.71 13,194,103.71 18.35% 0.00 FNMA ISSUES-LESS THAN IYR 8,600,000.000 8,508,026.11 8.508.026.11 11.83% 0.00 MUTUAL FUNDS 199,299.380 199,299.38 199,299.38 0.28% 0.00 REPURCHASE AGREEMENTS 14,300,000.000 14.300.000.00 14,300,000.00 19.89% 0.00 TREASURY BILLS-LESS THAN IYR 12,100,000.000 11,936,015.39 11.936.015.39 16.60% 0.00 U.S. DOLLAR 68,760,299.380 68,291,729.95 68,291,719.95 94.99% 0.00 CASH&CASH EQUIVALENTS 68,760,299.380 68,291,719.95 68,291,719.95 94.99% 0.00 FO1t1D IRCOME SECURTTIEB U.B.DOLLAR BANKING 6 FINANCE 5G0,000.000 511,620.00 501.170.00 0.70% -10,450.00 U.S.AGENCIES 3,100,000.000 3,091,443.03 3,096,942.00 4.31% 5.498.97 U.S.DOLLAR 3,600,000.000 3,603,063.03 3,59B,112.00 5.02% -4,951.03 FIXED INCOME SECURITIES 3,600,000.000 3,603,063.03 3,598,112.00 5.01% 4,951.03 TOTAL ASSETS-BASE: 72,360,299.380 71,894,782.98 71,889,831.95 100.00% .4,951.03 I 8r9rkbendt Asset Summary Report ID:GL8251 Base Cunene,USD by Asset Type with Sectors Altemate Base Currency: Exchange Rate: LONG TERM OPER-MMICO-0CSFO75222O2 3/31/2006 States:FINAL Net Unrealized Cost Market Value % of Gain/Loss Description Shares Par Base Base Total Base CASH As CASH EQUIVALENTS U.B.DOLLAR PENDING TRADES .54,737,192.47 .54,737,192.47 -22.28% 0.00 INTEREST 2,355,12O.39 2,355,120.39 0.96% 0.00 COMMERCIAL PAPER-DISCOUNT 1,900,000.000 1,876,867.5O 1,976,867.50 0.76% 0.00 FNMA ISSUES-LESS THAN IYR 900,000.000 889,398.50 889,398.50 0.36% 0.00 MUTUAL FUNDS 1,118,159.180 1,118,159.18 1,118,159.1E 0.46% 0.00 U.B.DOLLAR 3,918,159.180 48,497,646.90 48,497,646.90 -19.74% 0.00 CASH 6,CASH EQUIVALENTS 3,918,189.18O -48,497,646.90 -48,497,646.90 -19.74% 0.00 FLIED INCOME SECURITIES U.B.DOLLAR ABE-AIRPLANE RECEIVABLES 1,6O0,GOO.O00 1.600.000.00 1,472,G00.00 0.60% -128.000.00 ABE-HOME EQUITY 81,914.54O 81,914.54 81,955.50 0.03% 40.96 BANNING a FINANCE 23,750,000.000 23,737,789.60 23,731,206.50 9.66% -6,583.10 COLLATERALIZED MORTGAGE OBLIGATION- 1,000,000.000 981,25O.0O 968,030.00 0.39% .13,220.00 COLLATERALIZED MORTGAGE OBLIGATION 815,624,200 815,624.2O 815,640.51 0.33% 16.31 FHLMC MULTICLASS 2,976,952.290 2,938,514.73 2,921,530.27 1.19% .16,984.46 FHLMC POOLS 36,066.020 35,186.91 37,229.15 0.02% 2,042.24 FNMA POOLS 34,009,504.540 34,310,196.04 33,238,437.27 MST% -1,071,758.77 FNMA REMIC 1,225,814.650 1,197,682.57 1,198,413.92 0.49% 731.35 ONMA MULTI FAMILY POOLS 2,208,727.400 2,202,332.93 2,237,637.05 0.91% 36,304.22 ONMA SINGLE FAMILY POOLS 5,693.050 5.964.54 5,896.68 0.001y. -67.86 INDUSTRIAL. 3,000,000.000 2.998.188.00 3,000,150.00 1.22% 1.962.00 INFLATION INDEXED SECURITIES 3,367,719.000 3,383,355.80 3,285,621.76 1.34% .97,734.04 PVT PLACEMENTS-MORE THN IYR 752,000.000 826,199.84 826.199.84 0.34% 0.00 U.S.AGENCIES 104,518,240.900 102,096,767.30 101,804,414.96 41.44% -292,352.34 U.S.GOVERNMENTS 118,364,262.240 116,387,735.36 116.226.588.27 47.31% -161,147.09 UTILITY-ELECTRIC 2,300,000.000 2,300,000.00 2,300,135.00 0.94% 135.00 U.S. DOLLAR 300,012,508.830 295,898,7O2.26 294,151,066.68 119.74% -1,747,616.58 FIXED INCOME SECURITIES 300,012,508.830 296,698,702.26 294,151,086.68 119.74% -1,747,615.58 1 Workbendl Asset Summary Report ID:GL8251 Base Currency:USD by Asset Type with Sectors Alternate Base Currency: Eachange Rate: LORG.TmBr OraR•rmm-OCOF07522202 3/31/2006 States:FINAL Not UereaBsed Cost Karket Value % of Clain/Loss Description Shares Par Base Base Total Base TOTAL ASSETS-BABE: 303,930,668.010 247,401,055.36 243,653,439.78 100.00% -1,747.618.5B 2 Workbench YLDAML YIELD A8ALTS13 PAGE 1 OCSM7511102 2006/03/31 ADS DATE 04/05/06 DISTRICT, LIQUID OPEMTING RUN TIM 14.45.44 PM VALUE YTN AT COMBNT ROOM HARM TOTAL COST/ 8 TYPE SECURITY ID SECURITY DESCRIPTION GODS YIHLD S-P PRICE NMMT VALUE B TOTAL CASE 6 CASE EQUIVALESTS 2,400,000.00 BROXAM RICA CORP DISC .000 4.501 98.863 2,372,706.67 3.49 0660P1DC2 04/12/2006 2,372,706.67 3.32 800,000.00 COUNTRWIDE M ALREANDRIA C/D .000 4.759 99.995 799,960.00 1.17 2223BYWO VAR RT 09/15/2006 AD 03/15/06 799,960.00 1.12 3,500,000.00 FEDERAL EONS LS M CONE DISC .000 .000 P-1 97.625 3,416,065.70 5.03 31330SY68 MT 09/13/2006 A-1+ 3,416,065.70 4.38 2,100,000.00 FEDERAL SOM LN AS CONS DISC R .000 .000 P-1 99.670 2,093,070.19 3.08 323395M NAT 04/19/2006 A-1+ 2,093,070.19 2.93 3,061,000.00 FEDERAL SOIM IS M CONE DISC N .000 .000 P-1 99.638 3,049,929.38 4.49 313395W5 NAT 04/21/2006 A-1+ 3,049,929.38 4.27 5,800,000.00 FEDERAL ROM LN BR CORE DISC S .000 .000 P-1 97.735 5,668,636.44 8.34 313385EQ2 MT 07/21/2006 A-1+ 5,668,636.64 7.93 2,500,000.00 FEDERA2. SUM: LS NTG CORD DISC .000 .000 P-1 9I.I52 2,443,793.40 3.59 313399A35 MT 08/01/2006 A-14 2,443,793.40 3.42 900,000.00 FBDSSAL BUM LN M/G COST DISC .000 .000 P-1 97.802 000,218.00 1.29 313397B91 MAT O9/15/2006 A-1+ 880,210.00 1.23 4,600,000.00 FEDERAL ROM W NTG CORD DISC .000 .000 P-1 97.624 4,490,698.89 6.61 313397C62 MT 08/22/2006 A-1+ 4,490,698.99 6.28 2,500,000.00 FEDERAL SONS W NTG CORP DIM .000 .000 P-1 97.594 2,439,855.21 3.59 313399F55 MT 09/12/2006 A-1+ 2,439,855.21 3.41 1,600,000.00 MDERM BUM LN STU CORP DISC .000 .000 F-1 99.S76 1,561,216.67 2.29 323397838 MT 09/26/2006 A-1+ 1,561,216.67 2.10 900,000.00 FEDERAL SUM W MG CORD DISC .000 .000 P-I 98.651 907,856.40 1.30 313393VC2 MT 04/04/2006 A-1+ 027,856.40 1.24 500,000.00 FEDERAL EOM LN MG CORP DISC .000 .000 P-1 98.093 490,465.14 .72 313397M7 MT 05/09/2006 A-1+ 490,465.14 .69 1,500,000.00 YHDSRAL Sam MTG ABSR DIBCOUST .000 .000 P-1 98.596 1,470,940.00 2.17 3135B9VB6 MT 04/03/2006 A-1+ 1,470,940.00 2.07 C E [ ' [ i 1 E £ [ [ C [ t I f E , t : [ C ' C YLDANAL YIELD ANALYSIS PAM 2 CC8P0]511102 2006/03/31 RUE DATE 04/06/06 DI6TRICT, LIQUID OPEMTIMO BOB TIME t 14.45.44 PAR VALUE YTM AT CURRENT MCODY MONET TOTAL COST/ 8 TYPE SECURITY ID BECNRITY DESCRIPTION B00E YIELD S-P PRICE MUST, VALUE 3 TOTAL _________________ _____________________________ _______ _______ _______ ________ ------------ __________ 3,200,000.00 FEDERAL NAIL MG ABBE DISCOMT .000 .000 P-1 99.378 3,190,004.44 4.68 313599VIA MAT 04/12/2006 A-14 3,1B0,084.44 4.45 2,100,000.00 FBDRRAL NAIL MG ABM DISCOUNT .000 .000 P-1 99.551 2,090,570.58 3.07 313589VT7 MAT 04/19/2006 A-la 2,090,570.58 2.92 1,000,000.00 FEDERAL NAIL MTG BASE DISCOUNT .000 .000 P-1 97.641 976,410.42 1.43 313589XM0 MAT 05/31/2006 A-14 976,410.42 1.37 800,000.00 FEDERAL MAIL MTG AEON DISCOUNT .000 .000 P-1 97.753 702,020.67 1.15 313509EN6 NOT 07/19/2006 A-la 782,020.67 1.09 1,000,000.00 GENERAL ELBC CAP DISC .000 .000 P-1 98.950 988,500.00 1.45 36959JE90 05/09/2006 908,500.00 2.38 1,400,000.00 WORM ELEC CAP DISC .000 .000 P-1 99.802 1,323,235.00 2.03 36959JFC2 06/12/2006 1,393,235.00 1.93 5,000,000.00 U e TO MMY BILL .000 .000 P-1 99.644 4,982,100.89 7.33 91279SMY3 0.0001 04/20/2006 DD 10/2D/05 A-la 4,962,188.B9 6.97 3,300,000.00 U S TO MMY BILL .000 .000 P-1 91.993 3,233,754.33 4.76 912795MO ONE 04/27/20U6 DO 10/27/2005 A-I+ 3,233,754.33 4.52 3,000,000.00 U S TRBASMY BILL .000 .000 P-1 97.897 3,720,072.17 5.47 912795FE6 DUE 06/01/2006 DD 12/01/05 A-If 3,720,072.17 5.20 14,300,000.00 CREDIT SUISSE FB REPO .000 4.500 100.000 14,300,000.00 21.05 994SIC992 04.5001 04/03/2006 DD 03/31/06 14,300,000.00 20.00 199,299.32 OMYMS TREASURY CAGE BUT .000 4.438 AAA 100.000 199,299.3E .29 996005247 AAA 199,299.30 .26 _____.0___ ____ _��� ______ --_---------_ ______ TOTAL CASH A CASE EQUIVALENT6 00 .624 67,910,347.97 100.00 67,910,347.97 94.98 FIXED INCOME 6ECMITIES 700,000.00 FEDERAL SOME M MTS COM STE .000 2.384 AEA 99.636 691,024.00 19.38 3129X1CU9 2.375% 05/19/2006 M 05/19/03 AM 697,452.00 .99 YLDMAL YIELD ANALYSIS PAS 3 OCSF07511102 2006/03/31 RUN DATA 04/06/06 DISTRICT, LIQUID OPERATING RON TINE 14.45.44 PAR VALUE YIN AT CURRENT MOODY NARRRT TOTAL COST/ 6 TYPE SECURITY ID EBCURITY DESCRIPTION BOON YIELD S-P PRICK NARMT VALUE 6 TOTAL _________________ _____________________________ _______ ____--- _______ ________ ------------ -________- 1,700,000.00 PSDEML NAIL N1'G ASSN HIS .000 4.667 AAA 99.970 1,699,619.03 47.23 31359NNV1 VAR HT 05/22/2006 DD 11/22/04 AAA 1,699,490.00 2.3E 700,000.00 FEDERAL RAIL KID ASSN DEW .000 4.550 AAA 100.000 700,000.00 19.45 31359MBI VAR RT 09/07/2006 DD 03/07/05 AAA 700,000.00 .98 500,000.00 NOUSEEOLD PIN CORD NT .000 7.233 AA3 300.234 511,620.00 13.92 441912FT6 7.250% 05/15/2006 DD 05/15/96 A 501,170.00 .70 ________ _______ ___------------- _______-_ TOTAL FIXED INCOME SECURITIES .000 4.131 3,603,063.03 100.00 3,598,112.00 5.04 -------- ------ ----------------- --------- TOTAL .000 .667 71,513,411.00 100.00 71,500,459.97 100.00 C C E [ E E E [ [ r [ ! E E [ [ [ E E C i t 1 t t l i i i i t t t f I t t t I YLDAXM YIELD AMLYSIe PAGE 4 OCBM 522202 2006/03/31 RON DATE 04/06/06 D18TRICTI LONG-TERN OPERATION NON TIM 14.45.44 PAR VALUE YTN AT CURRENT MOODY MAKET TOTAL C0ST/ 8 ME SECURITY ID SECURITY DESCRIPTION BOOR YIELD S-P PRICE HEARET VALUE 8 TOTAL CMH 6 CABS EDUSVAL8NT8 900,000.00 FEDERAL NAIL HIS ANNE DISCOUNT .000 .000 P-1 90.822 899,399.50 22.89 313569AU2 NAT 06/07/2006 A-1+ 089,398.50 .30 1,900,000.00 0RHMR BLEC CAP DISC .000 .000 NR 99.793 1,876,867.50 49.31 36959JMO 06/29/2006 1,076,667.50 .63 1,118,159.18 DREYFUS TP8A6URY CARD NOMT .000 4.430 AAA 100.000 1,318,359.1E 29.76 996085247 AAA 1,118,159.1E .38 ________ _______ _________________ _________ TOTM CASH 6 CASE BOOIVALENTS .000 .65E 3,884,425.18 100.00 3,884,425.18 1.32 PIRBD INCONE SECURITIES 152,000.00 AID SUMNeRICA GLOBAL US 8 .000 5.325 309.86I 926,199.04 .28 U00901M0 5.050E O6/01/2009 DD 08/09/01 826,199.84 .20 4,000,000.00 COHNIT TO PM FREE, 8P NTG .000 5.130 AAA 92.470 3,911,875.00 1.32 O1P0S0445 5.000E 04/01/2021 DO 04/01/06 AAA 3,999,800.00 1.31 2,900,000.00 CIT GROUP INC HIN 18N00092 .000 4.539 A2 100.234 2,000,000.00 .95 12560PMO VAR RT 05/23/2000 DO 05/25/05 A 2,006,552.00 .94 1,200,000.00 CITIGRDUP INC GLOBM OR HT .000 4.30E M1 100.046 1,200,000.00 .40 172967MR VAR RT 05/02/2008 DO 05/02/05 M- 1,200,552.00 .40 1,000,000.00 RAIMLBRCHRYBLER NORTH ARBR .000 5.329 A3 100.015 1,000,000.00 .34 23303SBB2 VAR RT 03/13/2009 DO 03/14/06 1,000,150.00 .34 1,900,000.00 PRDBRAL ROM IN NYA CORD RTN .000 3.825 AAA 96.922 1,837,359.38 .62 312OX0485 3.700% 10/23/2000 DO 04/23/03 AM 1,837,710.00 .62 200,000.00 PRDBRAL ROBE M RIG CORP ME .000 3.474 AM 94.714 189,236.00 .06 3129XIM9 3.290E 06/16/2009 DO 06/16/03 AM 189,428.00 .06 6,342,000.00 FEDERAL ROBE U RTG CORD IRA .000 3.195 ARE. 93.916 5,994,180.94 2.02 3120XINJ2 3.5450 00/07/2010 DO 07/07/03 AM 5,956,152.72 2.00 11066,000.00 "DEEM ROM w NTG CORP NTR .000 3.198 AM 95.682 1,015,531.56 .34 31ZMIRX7 3.060E 07/15/2006 DO 07/15/03 AM 1,019,970.12 .34 YLDANAL YIELD ANALYSIS PAGE 5 MSF07522202 2006/03/31 RON DATE t 04/06/06 DISTRICT, LONG-TERM OPERATING RON TIME 14.45.44 PAR VALOR ITS AT CORRENT MOODY MARKET TOTAL COST/ B TYPE SECURITY ID SECURITY DESCRIPTION BOOK YIELD S-P PRICE PARENT VALUE B TOTAL _________________ _____________________________ _______ _______ _______ ________ ____________ __________ 400,000.00 FEDRRAL HOME M MTG CORP MTN .000 4.098 AAA 93.600 391,680.00 .13 312BE1YE4 4.000E 06/19/2009 DO 08/19/03 AAA 390,400.00 .13 6,ODD,000.00 FEDERAL NONE LN MTG CORP MTR .000 4.543 AAA 98.624 5,920,200.00 2.01 312U4HOl 4.480E 09/19/2009 DO 09/19/05 AAA 5,917,440.00 1.99 5,300,000.00 FEDERAL EOM¢ IN M1Y2 CORD MTP .000 4.205 AAA 99.191 5,283,372.72 1.78 312OX4000 4.250% 04/05/2007 DD 10/05/OS AAA 5,257,123.00 1.76 9,B00,000.00 FEDERAL ROSE LM HTG CUP RIP .000 4.933 AAA 99.323 9,767,611.00 3.30 312BR46T9 4.900E 11/03/2000 DO 11/03/05 AAA 9,733,654.00 3.27 ],240,000.00 FEDERAL NOW LN US CONS ED .000 3.900 AM 97.223 1,204,931.25 .40 3133MV0A4 3.500% 02/21/2000 DO 02/11/03 AAA 1,205,565.20 .40 2,700,000.00 FEDERAL ROPE LN SEE CONS BD .000 9.474 AAA 80.612 2,565,920.00 .80 3133K3807 VAR RT 02/27/2012 DO 02/27/04 AAA 2,365,529.13 .79 5,00D,000.00 FEDERAL HOME LM US CONS BD .000 4.120 AAA 93.096 4,861,328.13 1.65 3133K3RK4 4.000% 02/19/2009 DO 02/18/04 AAA 4,854,000.00 1.63 2,400,000.00 FEDERAL ROM W BRS CONS BD .000 4.009 AAA 96.665 2,320,500.00 .I8 3133X4MO 3.075E 03/24/2009 DO 03/24/04 AAA 2,319,960.00 .78 300,000.DO FEDERAL NOW LN BRS COPS SD .000 3.156 AAA 96.640 290,390.63 .09 3133R5DO9 3.050% 12/28/2007 DD 03/29/04 AAA 299,920.00 .10 720,000.00 FEDERAL ROPE M US CONS BD .000 3.123 AAA 96.060 690,343.20 .23 3133XSD70 3.000E 04/07/2008 DO 04/07/04 AAA 691,632.00 .23 2,700,000.00 FEDERAL NOW LN IRS CONS ED .000 3.117 PAR 96.535 1,638,109.3E .55 3133R54R6 3.010E 12/29/2007 DO 03/29/04 AAA 1,641,775.00 .55 3,550,000.00 FEDERAL HOPS LN US CONS ND .000 3.696 AM 98.086 3,475,117.19 1.18 3133K3YG3 3.625% 08/17/2007 DO 08/17/04 AAA 3,482,053.00 1.17 250,000.00 FEDERAL BONE LN BRS CONS BD .000 4.012 AAA 97.203 242,148.44 .00 3133RBOB6 3.900E 10/21/200B DO 10/21/04 AAA 243,007.50 .08 780,000.00 FEDERAL HOPE W BRS CONS ED .000 4.304 AAA 93.525 759,281.25 .25 3133K9LP3 4.200% 03/13/2009 DO 12/15/04 AAA 761,085.00 .26 300,000.00 FBDBRAL HONE LN ME CONS BD .000 4.239 AAA 94.371 291,423.00 .09 3133I9045 STEP 12/15/2011 DO 22/15/04 AM 283,113.00 .09 C C I F C f F F F , .I E ! € _ C ! E F F F 8 F i 1 1 1 t 1 i 1 1 I l 1 I t l 1 1 1 l 1 YLDANM YIELD ANALYSIS PAGE 6 t]CBPO]522202 2006/03/]1 RON DATE 04/06/06 DISTRICT, LONO-TERN OPERATING RUN TINS t 14.45.66 PAR VALtAI YTN AT CORMIT NODDY NARKET TOTAL COST/ 1 TYPE SECURITY ID SECURITY DESCRIPTION DOOR YIELD a-P PRICE NARSEY VALVE 1 TOTAL ----------------- -------------------- ------ ------- ------ _----- ------- ----------- ---------- 1,200,000.00 YEDERAL PARN CR ME DOES SYS .000 6.667 AM 97.015 1,169,437.50 .39 31331M69 6.350% 06/15/2009 DD 06/15/05 AAA 1,173,190.00 .39 3,000,000.00 FEDERM HOW IM MS con DD .000 6.210 AAA 95.001 2,982,343.75 .96 31339=3 6.0001 03/18/2011 DD 06/19/03 AAA 2,858,030.00 .96 16,100,000.00 FEDERAL NONE W ME CORE ED .000 6.122 AAA 97.029 15,659,765.63 5.31 31339W3 STEP O1/16/2009 DD 07/16/03 AAA 15,621,669.00 5.26 380,000.00 YgWUY, EOn LN ME COSS ED .000 2.302 AAA 97.731 368,665.60 .12 31339=26 VAR RT 07/01/2009 DD 07/09/03 AAA 371,377.00 .12 245,000.00 nDRML EOM IAI ME CONE ED .000 3.680 AAA 95.925 235,550.35 .07 31339YMS 3.5306 01/20/2009 DO 07/28/03 AM 235,OI6.25 .08 150,000.00 PROERM HONE IN MB CONS ED .000 3.652 AM 95.836 166,001.00 .06 31]]9YM7 3.5001 01/30/2009 DD 07/30/03 AM 143,754.00 As 100,000.00 PEDERM ROSE m ME CONE ED .000 3.559 AM 9E.353 97,922.00 .03 31339YOP2 STEP 07/30/2008 DD 07/30/03 AAA 90,353.00 .03 11070,000.00 PIMML NONE IN ME CONS DD .000 4.696 AAA 94.312 1,007,019.00 .36 31339Y3U6 6.2601 07/02/2013 DO 07/02/03 AAA 1,009,138.40 .36 175,000.00 PEDEM3. HGNE LN MS CONE RD .800 3.366 AAA 95.130 166,745.25 .05 3133916P6 3.2001 01/24/2009 DD 07/14/03 AAA 166,177.50 .06 36,066.02 Fm.MC GREW 67E-6066 .000 5.316 AAA 103.225 35,196.91 .01 31368SM3 6.3861 01/01/2028 DD 22/02/97 AM 37,229.15 .01 2,350,000.00 YEOERM MM MYG USE DEER .000 5.269 AM 100.019 2,385,462.50 .79 31359N3E2 5.2506 06/15/2006 DD 06/22/01 AM 2,350,666.50 .79 6,800,000.00 YeSERAL HAIL NTG MSR DEER .000 3.302 AAA 96.651 6,575,736.00 2.1E 3135910006 3.125% 03/16/2009 DD 03/16/04 AM 6,436,268.00 2.16 15,000,000.00 FEDERAL MTL NYG EMS .000 3.268 AM 99.655 14,893,752.64 5.07 31359NIO1 3.2500 07/31/2006 DD O1/25/05 AM 14,919,250.00 5.01 3,100,000.00 Y6Dm I MTL NTG SE M ME .000 4.362 AM 97.633 3,014,992.19 1.02 3136F6Y26 6.2501 07/30/2009 DD O1/30/04 AM 3,020,623.00 1.01 621,000.00 YEDERRI. Mn ME SEW EYE .000 3.323 AM 97.905 599,653.13 .20 3136FSAV3 VAR RT 08/18/2011 DD 02/20/04 AAA 607,369.05 .20 nDANM YIELD ANALYSIS PAGE 7 OCBF07522202 2006/03/31 US DATE 04/06/06 DISTRICT, IONO-TERM OPERATING US TIM t 14.45.44 PAR VALVE ITS AT CURRENT MOODY MUST TOTAL COST/ \ TYPE SECURITY ID SECURITY DESCRIPTION DOOR YIELD S-P PRICE RAREST VALVE \ TOTAL ----------------- ----------------------------- ------- ------ ------- -------- ------------ ---------- 660,000.00 FEDERAL RAIL MM USX NTN .000 4.132 AAA 97.053 638,601.56 .21 3136F5U30 4.0101 03/16/2009 DD 03/16/04 MA 640,549.80 .21 250,000.00 FEDERAL NAM STG AWN HUM .000 3.708 AAA 95.729 239,167.50 .09 3136F5RR9 3.5501 04/07/2009 DD 04/07/04 MA 239,322.50 .09 107,117.38 FRM POOL /0254631 .000 5.119 MA 97.677 110,330.91 .03 31371KY47 5.000% 02/01/2010 DD O1/01/03 AAA 104,629.04 .04 96,972.30 FRM POOL #0254760 .000 5.219 AAA 97.476 99,881.48 .03 31371RSV9 5.000% 06/01/2019 DD 05/01/03 AAA 94,719.66 .03 43,963.19 PRM POOL #0254866 .000 5.119 AM 97.675 45,202.09 .01 31371LCS3 5.000% 09/01/2010 DD 00/01/03 AM 42,941.05 .01 329,169.82 PR71A POOL #0254907 .000 5.119 AM 97.675 329,160.82 .10 313711MO 5.0001 10/01/2018 DD 09/01/03 AAA 321,515.64 .11 235,097.83 FNM POOL 10254953 .000 5.119 MA 91.671 239,110.04 .07 3237IM21 5.000% 11/01/201B DD 10/01/03 AAA 229,622.40 .08 635,341.89 PRAM POOL 10254987 .000 5.117 AAA 97.721 643,492.21 .21 3137IU46 5.000% 12/01/2018 DD 11/01/03 MA 620,062.80 .22 77,904.24 FRM POOL #0357430 .000 5.119 AAA 97.676 79,780.65 .02 31376M71 5.0001 09/01/2018 DD 09/01/03 AAA 76,093.75 .03 231,200.21 PN981 POOL 00555363 .000 5.219 AM 97.676 238,033.21 .07 31385N5Y1 5.000\ 04/01/2018 DD 03/01/03 MA 225,729.44 , .09 192,910.05 PSM POOL 40555545 .000 5.119 AM 97.676 199,697.36 .06 31385YES2 5.000% 06/01/2018 DD 05/01/03 AAA 100,426.02 .06 655,232.79 MM POOL /0555621 .000 5.117 AAA 97.721 662,604.15 .21 31385E068 5.000\ 07/01/201B DO 06/01/03 AAA 640,300.46 .21 373,066.35 FNM POOL 60681309 .000 5.119 AM 97.677 364,258.34 .12 31393Y384 5.000% 02/01/2010 DD 02/01/03 AAA 364,400.02 .12 44,412.21 FRM POOL /0681334 .000 5.119 AM 97.677 45,744.59 .01 31391Y4T1 5.0001 02/01/2010 DD O1/01/03 AAA 43,380.51 .01 28,487.03 MM GTO RENIC P/T .000 4.355 AAA 97.59E 28,171.01 .00 31393EWS 4.2501 04/25/2020 DD 08/01/03 AM 27,802.77 .01 f [ f f f f F _ : f f i f f ! f f ! f f f : f f ' f i t t t ! [ 1 t 1 t t t t 1 t i t t 1 YLDAPAL YIELD ANALYSIS PAGE e MBF07522202 2006/03/31 RUN DATE , 04/06/06 DISTRICTt IORG-TERN OPERATING RON TINE 114.45.44 PER VALUE YEN AT CURRENT MOODY NARBET TOTAL COST/ \ TYPP SECURITY ID SECURITY DESCRIPTION POOR YIELD 8-P PRICE NARBET VALOR \ TOTAL _________________ _____________________________ ______ _______ __--_ __---- ___-------- ---------- 100,000.00 ISM GM BENIC P/T 2003-83 TD .000 3.558 ARE 99.375 98,203.13 .03 31393ESY6 3.500\ 04/25/2011 DO 00/01/03 AAA 98,375.00 .03 100,000.00 FREE DID RENIC P/T 03-92 SO .000 3.590 ARE, 97.698 97,433.59 .03 31392TBC9 3.5004 06/25/2023 DO 08/01/03 AAA 97,499.00 .03 997,327.62 PONA DID RENIC P/T 03-113 PN .000 3.581 ARE 97.735 973,074.94 .33 31393T2E5 3.500% 02/25/2013 DO 10/01/03 ARE 974,730.15 .33 100,000.00 FROM NOLTICLA65 NTG .000 4.095 AAA 97.649 98,000.00 .03 31394LVF6 4.000% 05/15/2016 OD 11/01/03 ARE 97,649.00 .03 500,000.00 FRLNC NOLTICLASR CTFS 2733 PA .000 4.107 ALL 97.405 489,199.22 .16 31394NUE6 4.0001 01/15/2021 DD 01/01/04 AIR 407,025.00 .16 69,027.6 PRIM NULTICLASS CI'PS 2756 RA .000 5.059 AAA 98.839 68,760.52 .02 31394PY24 5.000% 06/15/2016 DO 02/01/04 ARE 68,226.05 .02 65,143.31 FSLIC NULTICIASP CTFS 2932 PA .000 4.535 AAA 99.222 64,664.91 .02 31395C7B1 4.500% 04/IS/2019 DO 07/01/04 AAA $4,636.50 .02 943,959.29 FBLNC NULTICLRSS CTFS 2091 LR .000 4.354 AAA 97.602 927,507.49 .31 313953S90 4.250% 06/15/2024 DO 11/01/04 AAA 921,323.15 .31 91,004.62 FROM NULTIC2ASS CTFS 2903 UY .000 4.087 ARE 97.871 69,653.77 .03 31395ROT7 4.000% 10/IS/2023 DO 12/01/04 AAA 99,067.13 .03 91,778.37 FB1MC NULTICLESS MSG .000 4.602 AAA 97.784 90.628.32 .03 31395UT68 4.5004 12/15/2025 DD 05/01/05 AAA 09,744.56 .03 500,000.00 FR7MC NULTICIASS NTG 3008 .IR .000 4.571 ARE, 90.445 493,125.00 .16 31395NGA9 4.500% 21/15/2013 DO 07/01/05 AAA 492,225.00 .17 263,150.33 ISM POOL #0684199 .000 5.618 ARE 97.895 262,924.19 .09 31400DX31 5.5001 03/01/2033 DO 03/01/03 RM 257,611.02 .09 236,264.76 FNMA POOL /0684900 .000 5.119 ARE 97.676 239,312.19 .07 31400D3R1 5.0001 06/01/2010 DD 05/01/03 AIR 230,793.50 .08 130,050.05 FREA POOL 60685200 .000 5.119 AM 97.676 132,526.59 .04 31400EGP7 5.000% 03/01/2018 DD 03/01/03 ME 127,809.09 .04 198,264.36 FREE POOL /0686318 .000 5.119 AIR 97.676 204,212.29 .06 31400PPB7 5.0000 03/01/2018 DO 03/01/03 AAA 193,656.70 .06 YLDMAL YIEW MMYSI8 PAM , 9 MSP07522202 2006/03/31 ROB EATS 04/06/06 DIBTRICTt I.OI7O-TERM O MTIM ROB TIRE , 14.45.44 PAR VALUE YTR AT CMRMT IWDY RM9ET TO COST/ B TYPE MCMITY ID MCMITY MWRIPTIOR BODE YIELD B-P PRICE MRMT VALUE 8 1101'AL _________________ _____________________________ _______ _----- _______ ________ -------_--- ___------- 74,942.96 PPRA POOL #0608739 .000 5.119 AAA 97.676 77,191.25 .02 314OOnL9 5.0008 06/01/2018 DD 06/01/03 AAA 73,201.29 .02 77,402.15 mm PODL #0689859 .000 5.119 AM 97.676 70,399.93 .02 314001 9 5.000% 05/01/2018 DD 05/01/03 AM 75,609.18 .03 417,205.72 9MRA POOL 00693034 .000 5.119 AAA 97.676 429,721.98 .13 31400PY74 5.0001 03/01/2010 DD 03/01/03 AAA 407,509.86 .14 157,027.75 MM POOL #0695852 .000 5.119 AAA 97.676 161,73B.59 .05 314008BV0 5.0001 05/01/2019 DD 05/02/03 AAA 153,370.43 .05 S63,263.96 nM POOL #0695889 .000 5.119 AM 97.676 580,161.09 .18 3140OW23 5.000% 05/01/2010 DD 05/01/03 AM 550,173.71 .18 152,482.29 MM PWL 40702210 .000 5.117 AM 97.721 157,056.75 .05 31401AW9 5.000% 05/01/2018 DD 05/01/03 AM 149,007.32 .05 92,434.21 MM POOL 00702328 .000 5.119 AAA 97.676 93,618.52 .03 31401 = 5.000% 05/01/2018 DD 04/01/03 AM 90,286.04 .03 205,424.08 YMIIA POOL #0709142 .000 5.119 AM 97.676 211,586.01 .06 31401MH7 5.000% 06/01/2012 OD 06/01/03 AM 200,650.02 .07 401,423.07 MM POOL #0709360 .000 5.119 AAA 97.676 406,769.68 .13 31401JB56 5.000% 07/01/2018 DD 06/01/03 AAA 392,290.13 .13 78,629.52 FRXA POOL 60709826 .000 5.119 AAA 97.676 79,636.95 .02 31401JSP4 5.000% 06/01/2018 DD 06/01/03 AAA 76,002.17 .03 160,550.44 MM PODI, #0709917 .000 5.219 AM 97.676 162,607.51 .05 31401JVJ4 5.000% 06/01/2010 M 06/01/03 AAA 154,919.25 .05 393,561.28 MM POOL #0710235 .000 5.119 AAA 97.676 405,368.14 .13 31401MCB 5.000% 06/01/2016 W 06/01/03 AAA 384,414.92 .13 157,968.45 MM POOL #0713365 .000 5.119 AAA 97.676 159,992.41 .05 31401KOSI 5.0001 07/02/2019 DD 07/01/03 AAA 254,297.26 .05 499,966.77 PBIB1 POOL #0720319 .000 5.119 AAA 97.676 505,258.52 .16 3140IM43 5.0001 07/01/2018 DD 07/01/03 AAA 407,273.11 .16 1,682,467.46 MM POOL #0720369 .000 5.117 pM 97.721 1,732,941.49 .55 31402WMD 5.000% 06/01/2028 DD 06/02/03 AM 1,644,125.27 .55 E E f f f I E [ E r f E f f C E I E f - E YLDAIW. YIB62) AIMLYBIB PMB t 10 OCBP07522202 2004/03/31 RUR MIT t 04/06/04 DISTRICTt LOM2- OPBMTIRO RM TIRE , 14.45.44 PM VALOR ITN AT CORMW ROODY RM ET TOTAL COST/ 1 TYPE BBCMITY ID MCORITY MBCRIPTIM BOOR YIBLD B-P PRIM RARMT VALOR 1 TOTAL 214,841.02 PNRI1 POOL #0721629 .000 5.119 AM 97.676 221,286.26 .07 31401XW4 5.0000 07/01/2018 DD 06/01/03 AAA 209,848.11 .07 177,030.20 MM POOL 00723487 .000 5.119 AM 97.676 179,021.01 .OS 31402AYO4 5.0001 06/01/2018 DD 06/01/03 AM 172,919.02 .06 2,465,407.04 PNRA POOL /0725530 .000 5.120 AAA 97.650 2,519,193.05 .92 31402M75 5.000% 06/01/2019 DD 05/01/04 AM 2,427,200.41 .61 293,204.55 FRM POOL /0729601 .000 5.119 AAA 97.675 296,961.25 .09 31402MR3 5.0001 07/01/2018 DD 07/01/03 AM 236,307.54 .10 25,793.43 MM POOL #0732873 .000 5.119 AAA 97.671 26,123.90 .00 31402R1M5 5.0001 11/01/2018 DD 10/02/03 AAA 25,192.70 .01 428,379.20 98RA POOL /0737130 .000 5.119 AAA 97.675 433,067.70 .14 31402S4P9 5.000% 10/01/2019 DD 10/81/03 AM 418,419.29 .14 399,155.37 MM POOL $0730211 .000 5.121 AM 97.721 403,256.76 .13 31402UD02 5.0001 10/01/2010 M 10/01/03 AM 389,001.68 .13 133,203.94 98RA POOL #0738487 .000 5.119 AM 97.671 134,910.61 .04 31402=2 5.000% 10/01/2018 DO 10/01/03 AM 130,101.62 .04 1,603,345.95 MM POOL 10740457 .000 5.217 AAA 97.121 1,625,141.32 .53 31402MS 5.0001 10/01/2018 DD 10/01/03 AM 1,566,806.69 .53 535,550.02 MM POOL #0740471 .000 5.117 AM 97.721 542,411.74 .17 31402RT40 5.0001 20/01/2018 DD 10/01/03 AM 523,345.20 .19 532,781.49 PBRA POOL 00740742 .000 5.119 AAA 97.675 530,594.94 .17 31402R587 5.000% 10/01/2019 DD 11/01/03 AAA 519,417.57 .17 26,696.13 MM POOL #0743869 .000 5.117 AM 97.721 27,038.89 .00 31403MI 5.0001 11/01/2018 DD 10/01/03 AAA 26,090.43 .01 779,380.11 YRM POOL 00744009 .000 5.129 AM 97.676 788,353.11 .25 31403=54 5.000% 07/01/2019 DD 09/01/03 AM 760,290.56 .26 115,569.35 mM POOL 10744316 .000 5.117 AAA 97.721 117,050.09 .03 3140383S4 5.0001 09/01/201S DD 09/01/03 AAA 112,935.60 .04 229,128.45 PRIM POOL #0747914 .000 5.119 AM 97.671 232,064.10 .01 31403P3H0 5.0001 11/01/2010 DD 11/81/03 AAA 223,792.05 .09 YLDMAL YIELD AMALv6I6 PAGB 11 MBF07522202 2006/03/31 ROM ON= 04/06/06 DISTRICT, LDMG-TERM OPRMTING ROM TIME 14.45.44 PM VMUR YTN AT CURMRT MOODY MMET TOTAL COST/ 9 TYPE SECURITY ID SBCMITY DESCRIPTION BOOR YIELD S-P PRICE M T VALOR B TOTAL _________________ _____________________________ _______ _______ _______ ________ ____________ __________ 133,209.65 MM POOL f0748400 .000 5.117 AAA 97.721 134,916.41 .04 314030MR9 5.000E OB/01/2016 DO 09/01/03 AAA 130,173.89 .04 697,523.62 FNM POOL #0748099 .000 5.117 AM 97.721 706,460.64 .23 3140307LO 5.0001 12/01/2019 DO 11/01/03 AM 681,627.53 .23 1,498,090.04 MM POOL #0750377 .000 5.117 AAA 97.721 1,517,293.22 .49 31403MA2 5.000% 11/01/2019 DO 11/01/03 AAA 1,463,950.19 .49 1,268,541.1E MM POOL 00750380 .000 5.117 AM 97.721 1,284,794.37 .42 31403.ND6 S.000B 11/01/2018 DO 11/01/63 AAA 1,239,631.99 .42 115,544.98 PNMA POOL #0750445 .000 5.117 AM 97.721 117,025.40 .03 314033MM2 5.000E 11/01/2018 DO 11/01/03 AM 112,911.79 .04 570,272.11 MM POOL #0751940 .000 5.117 AM 97.721 577,576.74 .18 314031M1 5.000E 12/01/2010 DO 11/01/03 MA 557,276.00 .19 GDO,422.85 MM POOL #0753425 .000 5.119 AM 97.668 607,365.24 .19 31403M23 5.000E 11/01/2010 DO 11/01/03 AAA 586,420.99 .20 435,626.09 MM POOL 6075516S .000 5.119 AAA 97.66E 441,207.55 .14 31403D6A3 5.000E 12/01/2018 00 11/01/03 AM 425,467.29 .14 751,656.92 MM POOL /0756372 .000 3.119 AAA 97.668 760,347.96 .24 31403SM 5.000E 11/01/2018 DO 11/01/03 AAA 734,128.28 .25 751,933.32 MM POOL 00789670 .000 5.122 AM 97.624 762,154.92 .24 31405MGP4 5.000E 22/02/2019 DO 12/01/04 AM 734,067.38 .25 757,300.45 MM POOL #0792432 .000 5.121 MA 97.631 767,595.00 .25 31405I1.M9 5.0009 10/01/2019 DD 10/01/04 AAA 739,360.00 .25 762,034.19 MM POOL 60794195 .000 5.122 AM 97.627 772,393.10 .25 31405MG9 5.000E 11/01/2019 DO ll/01/04 AM 743,951.12 .25 326,152.36 MM POOL /0800370 .000 5.122 AM 57.624 325,795.64 .10 31405MB 5.000E 12/01/2019 DO 11/01/04 AM 318,402.98 .11 1,024,921.92 FMNA POOL /0003923 .000 5.122 AM 97.620 1,038,054.45 .34 314OGM41 5.000E 12/02/2019 DO 12/01/04 AM 1,000,520.78 .34 2,978,975.32 MM POOL 6002335E .000 4.363 AM 98.279 2,9S5,702.07 .99 3140E M S VM RT 02/01/2035 DD 04/01/OS AM 2,927,707.15 .98 1 ! 1 t I t I 1 I t I I t t 1 I t 1 1 Y30ANAL YIELD ANALYSIS PAGE [ 12 OCBF07522202 2006/03/31 RUN DATE [ 04/06/06 DISTRICT[ LONG-TERN OPERATING RUM TINE [ 14.45.44 PAR VALUE YTM AT CURRENT MOODY MAKES! TOTAL COST/ 1 TYPE SECURITY ID SECURITY DESCRIPTION DOOR YIELD S-P PRICK RAMAT VALUE 1 TOTAL ----------------- ----------------------------- -_--_ ------ ------- ------- ------------ ---------- 396,129.52 FRMA POOL #0079906 .000 3.976 AAA 99.430 398,160.50 .13 314091IR39 VAR RT 10/Dl/2033 DO 02/D1/06 ARA 393,971.59 .13 900*000.00 FLORIDA PER CORP SR RT SER A .000 5.140 A3 100.015 900,000.00 .30 341099CF4 VAR RT 11/14/2010 DD 12/11/15 BBB- 900,135.00 .30 5,683.05 GNMA P00L, #0421309 .000 6.265 AAA 103.759 5,964.54 .00 36206UC23 6.500% 04/IS/2026 DO 04/01/96 AAA 51896.60 .00 110,781.80 OEM II POOL /0080395 .000 4.304 AAR 101.643 109,777.85 .03 3622SCMM4 VAR RT 04/20/2030 DO 04/01/00 AAA 112,601.94 .04 940,293.64 DENA II POOL 1080408E .000 4.304 AAA 201.645 930,743.98 .32 36225CN28 VAR AT 05/20/2030 DO 05/01/00 AAA 955,761.67 .32 915,552.00 GMMA II POOL #0080115 .000 4.461 AAA 100.867 914,980.57 .31 362250CBO VAR RT 07/20/2034 DO 07/01/04 AAA 923,490.64 .31 I,30O,OOO.00 DEEmAAL ELEC CO MT .000 4.912 AAA 99.953 1,300,000.00 .44 369604MO VAR RT 22/01/2000 DO 12/09/85 AAA 1,299,389.00 .44 2,600,000.00 GENERAL ELEC CAP MTN M00716 .000 4.931 AAA 99.994 2,60U,000.00 .68 36962=53 VAR AT 12/12/2008 DO 12/12/05 AAA 2,599,584.O0 .87 2,750,000.00 DOLORAN DACES GHE .000 4.799 AM 100.421 2,750,000.00 .93 38143USD2 VAR AT 06/28/2010 DO 01/28/05 Ai 2,761,577.50 .93 1,000,000.00 OEM DID REMIC PIT 03-97 DO .000 4.132 AAA 96.803 981,250.00 .32 383748787 4.0001 09/16/2025 DO 11/01/03 AAA 969,030.00 .32 1,300,000.00 ESSC PIN COMP MT .000 4.610 AA3 100.250 1,300,000.00 .44 40429CCU4 VAR AT 01/15/2000 DO 09/15/05 A 1,303,250.00 .44 2,600,000.00 HOW FIN CORP EYE 1 TR D0007 .000 4.550 AA3 100.219 2,596,386.00 .86 40429JMZ VAR RT OS/10/2010 DO 05/10/05 A 2,605,648.00 .07 2,ODO,000.00 LEGMAN BROTHERS TR 100596 .000 4.701 Al 100.092 21000,000.00 .60 52517PC58 VAR RT 10/22/2008 DO 10124/OS At 2,001,240.00 .67 1,100,000.00 MORGAN STANLBY .000 4.259 AR3 100.093 1,101,639.00 .37 617468RR2 VAR RT 01/12/2007 DO 01/13/04 Al 1,101,023.00 .37 1,500,000.00 WADER STAELEY NT .000 4.027 AU 96.210 1,476,210.00 .49 61746BAL.0 3.075% 01/15/2009 DO 01/13/04 Aa 1,443,270.00 .40 YLDANAL YIELD AMLYSIS PAGE 13 WSF07522202 2006/03/31 RUN DATE , 04/06/06 DISTRICTt LONG-TERN OPERATING RON TINE t 14.45.44 PM VALUE YTN AT CURRENT NDODY ERNEST TOTAL COST/ E TYPE SECURITY ID SECURITY DESCRIPTION BOOR YIRLD S-P PRICE RAREST VALUE 6 TOTAL _________________ _____________________________ _______ ----__ ------- -------- ------------ __________ 1,400,000.00 PUBLIC SVC ELEC 6 GAS CO LIT .000 4.629 A3 100.000 1,400,000.00 .47 744567M3 VAR RT 06/23/2006 DD 06/25/04 A- 11400,000.00 .47 91,914.54 RRBIOBNTIAL MEET 03-RS11 AIIS .000 4.706 AM 100.050 91,914.54 .02 76099SX83 VAR RT 12/25/2033 W 12/30/03 AM 02,955.50 .03 1,000,000.00 BIx CUM NTN 4 TR 00067 .000 4.391 A2 100.296 1,805,040.00 .61 78442F000 VAR RT 07/25/2002 DD 07/26/04 A 1,805,320.00 .61 2,300,000.00 SALONON SNITB HIS 4 8R 00206 .000 4.492 EA1 100.171 2,308,514.60 .76 795482"S VAR RT 05/19/2007 DD 05/2B/02 2,303,933.00 .77 2,344,262.24 BM GTD DEV PARTS 2001-20C 1 .000 6.124 ARE 103.S20 2,344,262.24 .82 83162CWO 6.340E 03/01/2021 AAA 2,426,780.27 .81 815,624.20 BM GM PARTS OWE SBIC-PS 01 .000 6.640 ARE 100.002 815,624.20 .27 83164IDD4 6.640E 02/10/2011 DO 02/21/01 OR 815,640.51 .27 2,000,000.00 TOYOTA RM CR KIN 9TR00413 .000 4.310 AAA 100.000 1,990,188.00 .67 89233PTE6 VAR RT 09/19/2006 DO 03/16/05 AAA 2,000,000.00 .67 1,600,000.00 UNITED AIRLS PASSTRRU 01-1 C .000 7.425 NR 92.000 1,600,000.00 .50 909317UC2 6.831E 03/01/2010 DO 09/22/01 A- 1,472,000.00 .49 10,900,000.00 U 5 TREASURY NOTES .000 3.501 AAA 96.390 10,577,872.43 3.57 912028BT6 3.375E 12/15/2008 DO 12/15/03 AAA 10,506,510.00 3.53 107,294.00 US TREABURY INFLATION INDEXES .000 2.049 AAA 97.630 109,473.27 .03 912828=9 2.000E 01/15/2014 OD 01/IS/04 AAA 104,751.13 .04 3,260,425.00 US TREASURY INFLATION INDEX RE .000 2.050 AAA 97.560 3,273,982.53 1.00 912928CP3 2.000E 07/25/2014 DO 07/15/04 AAA 3,190,870.63 1.07 10,500,000.00 U B TREASURY NOTED .000 2.912 AAA 98.740 10,374,588.00 3.52 91282BOD9 2.875E 11/30/2006 DD 11/30/04 AAA 10,367,700.00 3.4E 10,620,000.00 U 5 Tm.wsmY NOTES .000 3.661 ARA 95.590 10,213,842.11 3.45 912829=7 3.SD08 12/15/2009 DD 12/1S/04 ALL 10,151,656.00 3.41 8,200,000.00 U 8 TREASURY NOTES .000 3.670 ARE 95.360 7,927,796.88 2.65 912929=1 3.500E 02/15/2010 DO 02/15/05 AM 7,019,520.00 2.52 7,500,000.00 U 8 TREASURY NOTES .000 3.790 AAA 98.940 7,431,257.33 2.52 912820DOO 3.750% 03/31/2007 DD 03/31/05 AM 7,420,500.00 2.49 1 [ l I l 1 1 1 1 i YLDMM YIELD ANALYSIS PAGE t 1/ MOP07522202 2006/03/31 RIM GATE 04/06/06 DIMICTI IANO-TERN OPERATING RUN TIM 114.45./6 PAR VALUE YIN AT CURRERT NOODY MOUNT TOTAL COOT/ 6 TYPE SECURITY ID SECURITY DESCRIPTION BOON TIM S-P PRICE MWIT VALUE 8 TOTAL ----------------- ----------------------------- ------- ------- ------- -------- ------------ ---------- 11,000,000.00 U s TAEMGRY NOTES .000 3.553 AAA 98.500 10,947,940.29 3.68 912828DN7 3.500% 05/31/2007 DO OS/31/05 AAA 10,835,000.00 3.66 161600,000.00 U S TRHA9URY NOTES .000 3.679 AM 98.520 16,377,037.34 5.55 912920DY3 3.6251 06/30/2007 DD 06/30/05 AAA 16,354,320.00 5.69 8,100,000.00 U e TMASGRY NOTES .000 6.066 AAA 98.860 9,020,004.05 2.72 9128288P3 6.000% 00/31/2007 DD 00/31/05 AAA 0,007,660.00 2.69 400,000.00 U 5 TREASURY NTB .000 /.027 AM 96.220 390,203.13 .13 P12828801 3.8751 09/15/2010 DD 00/15/05 AAA 306,880.00 .13 32,200,000.00 UNITED STATES TREASURY NOTE .000 /.609 AM 99.230 31,974,851.56 10.96 91292MR7 6.375% 12/31/2007 DD 12/31/05 AAA 31,952,060.00 10.72 500,000.00 NACEOVIA M INTL TR 1 SR 00027 .000 6.982 AM 99.968 500,000.00 .16 92976MG VAR RT 03/23/2009 DD 03/23/06 499,040.00 .17 616,039.20 PM.IM NULTICLNBS NTO IM E3 A 6.316 /.772 AAA 99.205 616,695.50 .20 3133TC895 VAR RT 09/15/2032 DD 12/01/97 AM 611,633.88 .21 346,256.70 GUM GTD RENIC TR 2000-9 TO 6.320 0.025 AAA IOO.P03 366,256.70 .11 383786NE9 VAR RT 02/16/2030 AAA 349,521.90 .12 135,054.55 GUM II POOL /080088N 6.705 /.308 AAA 101.542 138,826.36 .0/ 36225CC20 7.375% 06/20/2027 DD 06/01/97 AM 137,976.60 AS 106,266.41 GUM II POOL 60080023 6.992 5.051 AAA 101.470 100,004.07 .03 36225CM9 VM RT 12/20/2026 DD 12/01/04 AAA 107,006.20 .06 2,100,000.00 MGERAL MM NTG MSN DEW 7.113 6.322 AAA 104.799 2,030,133.00 .7/ 31359NEY5 6.6251 09/15/2009 DD 01/01/11 AAA 2,200,561.00 .7/ yLDARAt YIEI69 ANALYSIS PAGE OCSP07522202 2006/03/31 RUN mu 04/06/01: DISTRICT. LOND-TERM OPEMTIM RUN TIRE 14.45.66 PAR VALUE YTM AT CURRENT MOODY NARRET TOTAL COST/ 6 TYPE SECURITY ID SECURITY DESCRIPTION EWE YIELD 8-P PRICE MRRET VALDE 9 TOTAL _________________ ------- ------- _______ -------- ____________ __________ 922,904.20 NMP/RUNT009 PAIOE 0000-11150 7.686 7.629 AM 100.952 902,930.13 .31 3029980E3 7.500% 12/01/2030 DD 20/21/99 AAA 931,773.59 .31 ________ _______ ----------------- --------- TOTAL PIEED INMRR BECMITIER .006 6.295 295,099,702.26 100.00 296,151,086.68 98.73 TOTAL .006 6.293 299,783,127.66 100.00 290r035r511.86 100.00 Rating Agency Comparisons A summary of investment grade ratings are listed below. More complete descriptions of _ Moody's and Standard & Poor's ratings are included in the following pages. Quality/Grade Moody's Standard Fitch &Poor's ,r Best Quality Aaa AAA AAA High Quality Aal AA+ AA+ Aa2 AA AA Aaa AA- AA- r Upper Medium Grade Al A+ A+ A2 A A A3 A- A- Baal BBB+ BBB+ Medium Grade Baal BBB BBB Baa3 BBB- BBB1 Moody's— Investment Grade "Aaa" - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk. Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues. "As" - Bonds which are rated As are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities. "A" - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment sometime in the future. "Baa" - Bonds which are rated Bea are considered as medium grade obligations; i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack - outstanding investment characteristics and in fact have speculative characteristics as well. Bonds in the Aa, A, and Bee are also assigned "1", "T or"Y based on the strength of the issue within each category. Accordingly, "Al"would be the strongest group of A securities and "AY would be the weakest A securities. Ba, B, Caa, Ca, and C 6o Bonds that possess one of these ratings provide questionable protection of interest and principal ('Be" indicates some speculative elements; "B" indicates a general lack of characteristics of desirable investment; "Caa" represents a poor standing; "Ca" represents obligations which are speculative in a high degree; and "C" represents the lowest rated class of bonds). "Caa,""Ca"and "C" bonds may be in default. r Standard and Pooes—Investment Grade - AAA- Debt rated "AAA"has the highest rating assigned by S&P. Capacity to pay interest and repay principal is extremely strong. AA- Debt rated "AA" has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in small degree. A- Debt rated "A" has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and r. economic conditions than debt in higher rated categories. BBB - Debt rated "BBB" is regarded as having an adequate capacity to pay interest and a, repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened - capacity to pay interest and repay principal for debt in this category than in higher rated categories. Standard and Pores—Speculative Grade Rating Debt rated"BB", "B", "CCC", "CC"and "C" is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. V, "BB" indicates the least degree of speculation and "C"the highest. While such debt will likely have some quality and protective characteristics these are outweighed by major uncertainties or major exposures to adverse conditions. BB- Debt rated "BB" has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, v financial, or economic conditions which could lead to inadequate capacity to meet timely L it interest and principal payments. The "BB" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "BBB" rating. B - Debt rated "B"has a greater vulnerability to default but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal. The "B" rating category is also used for debt subordinated to senior debt that is assigned an actual or implied "BB" or"BB" rating. CCC - Debt rated "CCC"has a currently identifiable vulnerability to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The"CCC" rating category is also used for debt subordinated to senior �+ debt that is assigned an actual or implied "B"or"B" rating. CC-The rating "CC"typically is applied to debt subordinated to senior debt that is assigned an actual or implied "CCC"debt rating. C-The rating "C"typically is applied to debt subordinated to senior debt which is assigned an actual or implied "CCC"debt rating.The"C" rating may be used to cover a ,r situation where a bankruptcy petition has been filed, but debt service payments are continued. r Cl - The rating "Cl" is reserved for income bonds on which no Interest is being paid. D- Debt rated "D" is in payment default. The"D" rating category is used when interest r payments or principal payments are not made on the date due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace period. The"D" rating also will be used upon the filing of a bankruptcy petition if debt service payments are jeopardized. Plus (+) or Minus(-): The ratings from "AA"to"CCC' may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories. NR- Indicates no rating has been requested, that there is insufficient information on which to base a rating, or that S&P does not rate a particular type of obligation as a matter of policy. r r L L i V I L L L L L This Page Intentionally Left Blank L L L L L L L L L L L D a cam May 10, 2006 STAFF REPORT Swap Report for the Quarter Ended March 31, 2006 r 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 March 31, 2006: 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. ocso 6 P.0.eme1V . r MVv 1. 927a 1V . 011J11111 Quarterly Swap Report y For the Three Months Ended March 31, 2006 Page 2 of 4 Requirement Summarize any new hedging products entered into by the District since the last report. Results: 4r No new hedging products have been entered into by the District since the last report covering the period ended December 31, 2005. 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. W Requirement W 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. u Results: V The District currently is not planning any additional hedging product transactions at this time. V 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. v w L y Quarterly Swap Report For the Three Months Ended March 31, 2006 Page 3 of 4 1992 1993 Certificates Certificates AIG Swap Soc Gen Swap January Paid by the District to the Swap Provider _ $ 141,550.00 Paid by the Swap Provider on behalf of the District _ $ (83,052.19) February Paid by the District to the Swap Provider $ 2,782,631.25 $ 141,550.00 Paid by the Swap Provider on behalf of the District $(1,273,754.04) $ (85,205.55) March Paid by the District to the Swap Provider _ $ 141,550.00 Paid by the Swap Provider on behalf of the District _ $(100,095.34) 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 Standby Purchase Agreement Commitment fees for the quarter ended January 31, 2006: $63,115.40 Credit Enhancements, liquidity facility or reserves associated with the 1993 Certificates Soc Gen Swap: -Soc Gen Irrevocable Letter of Credit Fee for the six months ended January 31, 2006: $53,963.77 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 January 31, 2006: $66,582.48 Quarterly Swap Report W For the Three Months Ended March 31, 2006 Page 4 of 4 W Requirement W 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 W 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. W 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 and termination risk as of March 31, 2006: W 1992 1993 Certificates Certificates AIG Swap Soc Gen Swap 6. W Counterparty Risk $ 585,743 $2,138,741 Termination Risk $ 6,326,270 $1,355,382 W Requirement 6. The report shall also include a copy of this Policy in the quarter after it is adopted or subsequently modified. W Results: No modifications have been made to the Policy since its adoption. u W W C7 bpi May 10, 2006 r STAFF REPORT Certificates of Participation (COP) Quarterly Report for the Period Ended March 31, 2006 Summary The District began issuing Certificates of Participation (COPS) on a variable interest rate basis in 1990. These variable rate COPS were a part of our long-term financing plan which also included some more traditional fixed rate borrowing. In 1992 and 1993, some of the fixed rate COPS were refunded and replaced with synthetic-fixed rate COPS. These are variable interest rate COPS that are also subject to a long-term fixed-rate interest exchange agreement (SWAP). The SWAP provides the maximum interest rate to be paid by the District, and is less costly than traditional fixed rate borrowing. In August 2000, the entire financing program was restructured and modernized to incorporate and take advantage of the consolidation of District books of account and revenue structure. This process has reduced the number of COP issues from five to r three; 1992 Refunding COPs, 1993 Refunding COPs and 2000 Refunding COPS. The 2000 COPS can be divided into Series A and Series B, if additional remarketing agents are desired. In August 2003, the District issued $280 million of fixed rate COPS, Series 2003, that have varying coupon rates that are matched against the varying maturity dates. The r true interest cost for the entire issue is 5.15 percent. In March 2006, the District issued $200 million of variable rate COPS, Series 2006. Variable interest rate COPS can be put back on the market by the buyer each day. When this happens, they must be remarketed or sold to another buyer. This process, called remarketing, is generally provided by a municipal bond underwriter. The remarketing agent sets the interest rate they believe is required to sell the COPS. Some issuers believe that having more than one remarketing agent promotes competition and results in lower interest costs. OCSD ♦ PO.Box 8127 9 Fountain VaSay,CA 82]2m12] ♦ (714)982-2411 Quarterly COP Report For the Three Months Ended March 31, 2006 Page 2 of 2 W Staff has monitored variable interest rate issues of other agencies since the inception of our program. The attached charts are described in the "Additional Information" section of this agenda report. They are provided monthly to compare our actual interest rates to a composite index, and to other selected issuers of similar credit quality, and with COP r issues of similar amounts. Many variables affect interest rates, but staff expects our rates to be among the lowest. Additional Information The first graph entitled, "OCSD COP Rate History Report," shows the actual variable r and fixed interest rates paid on each of the daily, weekly, and monthly rate COPs since the last report, and the effective fixed rate for the two refunding issues which are covered by an interest rate exchange agreement commonly called "swap." v The second graph, a bar chart entitled, "Comparative Daily COP Rate History Report," shows the performance of the District's Daily Rate COPS as compared to a composite index rate, which represents the average rate of six similar variable rate daily reset borrowings. r, The third graph, a bar chart entitled, "COP Daily Rate History, Comparison of Highest & Lowest Rates," compares the performance (monthly average interest rate) of the District's Daily Rate COPS with the highest and lowest monthly average rates from among six similar variable rate daily reset COPs. The fourth attachment is a tabular table entitled, "COP Rate History, Comparison of Monthly Averages," shows the monthly variable interest rate performance of the District's Daily Rate COPS as compared to the composite index. Estimated annual interest payments calculated for a standard $100 million par amount, are also shown. Variable rates historically rise at the end of each calendar quarter, and especially at year-end, because of business taxes and liquidity requirements. The rates tend to decline to prior levels immediately in the following month. Staff maintains continuous rate monitoring and ongoing dialog with the remarketing agents to keep the Committee fully informed about developments in the program as they may occur. v Attachments W 1. Graph - OCSD COP Daily Rate History Report 2. Graph - Comparative Daily COP Rate History Report 3. Graph - COP Rate History, Comparison of Highest & Lowest Rates W 4. Tabular- COP Rate History, Comparison of Monthly Averages W Prepared by Finance.411112006,8:42 AM OCSD COP RATE HISTORY REPORT MARCH 2O06 --------------------------------------------------- a - . a — I DATE 7. 4 4 9 c c c 4 Q � n 4 4 4 4 4 4 4 c g 4 4 —+—S�rk+s?003 F1xe —�—SwGen Swap-Serles'93 Daily t Ser�es Va Vb fe Weekl --AIG Swap-Series'92 Weekly —r— er es' and Vadab Daily G.\excel,dla\fin@2201geggi\FinancelR TEHIST.97 Prepared by Finance,4!7 iM,3:47 PM COMPARATIVE DAILY COP RATE HISTORY REPORTI March 2006 400 e r 2.00 -- 1 00 0.00 *: N .. n us n w cp ro co DATE o 0 0 0 0 0 0 0 0 0 0 0 O Z a LL Q Ili BOCSD COP Series'93 and 2000 DCOMPOSITE INDEX I G:l .mi.dta\Mt22201geggitFinanmWailycopintrate.zls 1 1 1 1 1 I I 1 I 1 1 I I 1 I 1 I I f COP DAILY RATE HISTORY COMPARISON OF HIGHEST & LOWEST RATES 3 2.75 t 2.25 "'M 2 H E 1.75 Z + 1.5 1.25 + IX U. + 0.75 H HIGH pp,MN.,0 px.05 J., a,06 LOW I=S I PHighestrate 00108DCOPSeries'00-PW NOCS[ICOPSeries'93-PW E[Lowe;—tm—tel___ G\exml.dtaVinV220\geggIFinanw'RATEHIST—HILC_bargraph Prepared by Finance,4/1112005,8:51 AM Prepared by Finance, 4/1 112 0 0 6, 8:43 AM DAILY COP RATE HISTORY COMPARISON OF MONTHLY AVERAGES APR 2005 - MAR 2006 OCSD $218.6M $46M Series 2000 Series 93 Ref composite PaineWebber PaineWebber Index• Apr-05 2.42 2A2 2.40 May-05 2.88 2,88 2.87 Jun-05 2.23 2.23 2.22 Jul-05 2.11 2.11 2.08 Aug-05 2.26 2,26 2.24 Sep-05 2.38 2,38 2.37 Oct-05 2.50 2.50 2.48 Nov-05 2.83 2.83 2.81 Dec-05 2.96 2.96 2.92 Jan-06 2.86 2.86 2.83 Feb-06 2.96 2.98 2.97 Mar-06 2.96 2,96 2.91 AVERAGE 2.61% 2,61% 2.59 ESTIMATED ANNUAL INTEREST PAYMENT PAR AMOUNT $ 2,614,167 $ 2,614,167 $ 2,591,667 FOOTNOTE Composite index consists of the following COP transactions: . IRWD, Series 86-COP, 88, 95. $106.1 M, Citigroup . IRWD, Series C-Ref 93-B,85-B, $62.1 M. Lehman Brothers . IRWD, Series 91, 93,85,$93.OM, PaineWebber . IRWD, Series 89, C-Ref 93-A, C-Ref 95, $70.9M, Merrill Lynch . Western Riverside Co. Reg. Wastewater Aulh., Series 96, $25.4M, PaineWebber . Orange Co., Irvine Coast Asst. Dist. 88-1, $94.5M, J.P. Morgan G.\excel.dta\fm4220\geggi\Finance\COPdaily$rate comparison r r r r r- r- r-- r- r- r- IFr- 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 3/31/06