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HomeMy WebLinkAbout2007-04-25 ORANGE COUNTY SANITATION DISTRICT April 19, 2007 phone: 1714)962-2411 NOTICE OF MEETING fu: (714)962-0356 www.need.mm mailing addresm BOARD OF DIRECTORS Fountaaiin 8Va0a,� ORANGE COUNTY SANITATION DISTRICT 92728-8127 strait address: 10844 Ellis Avenue Fountain valley.n4 WEDNESDAY, April 25, 2007 - 6:30 P.M. 92708-7018 Member Agencies DISTRICT'S ADMINISTRATIVE OFFICES • 10844 Ellis Avenue Cities Fountain Valley, California 92708 Anaheim Brea Buena Perk G)grees Fountain valley Fullerton The Regular Meeting of the Board of Directors of the Orange County Sanitation Gorden Grove Hunungtou Beach District will be held at the above location, time and date. Irvine La Habra Le Pelme n Los Alemltos / Newport Beach Orange Reloaded Cler f the B rd Bence Are V seal Beach Btenron Mend Ville Park yorba Linda Operations Committee -Wednesday, May 2, 2007 at 5:00 p.m. county of orange Administration Committee -Wednesday, May 9, 2007 at 5:00 p.m. Sanitary Districts GWRS Steering Committee -Monday, May 14, 2007 at 5:30 p.m. @ OCWD Costa Mass Midway City Steering Committee -Wednesday, May 23, 2007 at 5:30 p.m. Water District. Irvine Ranch To maintain worldrodasa leadership in wastewater and water resource management. mp BOARD MEETING DATES May 23, 2007 June 27, 2007 'July 18, 2007 August 22, 2007 September 26, 2007 October 24, 2007 November 28, 2007 *December 19, 2007 January 23, 2008 February 27, 2008 March 26, 2008 April 23, 2008 'Meetings are being held on the third Wednesday of the month ADDENDUM NO. 2 TO THE ORANGE COUNTY SANITATION DISTRICT SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR THE SECONDARY TREATMENT AND PLANT IMPROVEMENT PROJECT STATE CLEARINGHOUSE NO.: 2004031076 LEAD AGENCY: Orange County Sanitation District PREPARED BY: Integrated Program Management Consultants DATE: March 2007 PURPOSE OF ADDENDUM: On May 25. 2005,the Orange County Sanitation District(Sanitation District)Board of Directors certified the Final Subsequent Environmental Impact Report(SEIR)for the Secondary Treatment and Plant Improvement Project(Project)(SCH No.2004031076). The SEIR analyzed the environmental impacts of numerous improvements at Reclamation Plant No. 1 (Plant No. 1)and Treatment Plant No.2 (Plant No. 2)that are required to achieve secondary treatment standards. Where appropriate,the SEIR incorporated by reference relevant environmental analysis from the Sanitation District's 1999 Strategic Plan Program Environmental Impact Report. This addendum, prepared in accordance with the California Environmental Quality Act(CEQA) (Public Resources Code Section 21000 at seq.)and its implementing Guidelines (California Code of Regulations Title 14, Chapter 3, Section 15000 at seq.), addresses an alternative to the routing of construction truck traffic described in the SEIR. The Sanitation District Board of Directors will consider this addendum in conjunction with award of the construction contract for new activated sludge facility at Plant No. 1 (Job No. P1-102). PROJECT MODIFICATION: OCSD proposes to construct a new activated sludge facility for secondary treatment of wastewater at Plant No. 1 located at 108" Ellis Avenue, Fountain Valley, California. The major elements include six aeration basins,six secondary clarifiers, a sludge pumping system, chlorination system, blower building and a power building. Construction of the new facility includes truck traffic associated with earthwork and concrete work. Construction of the new facility is expected to last approximately four and one-half years. Periods of peak construction traffic are anticipated to occur in 2008 and 2009. For the SEIR,construction traffic was assumed to enter and exit Plant No. 1 through the main entrance off Ellis Avenue. However, due to substantial congestion at the main entrance, OCSO proposes to route construction traffic associated with the new activated sludge facility through a secondary entrance to Plant No. 1 off Garfield Avenue. �T��EELLEE��LLEEgqyy(( ppEEF ORANGE COUNi`/SANIITTA I N BOARD APR 25 2007 Page 1 of 4 BY F �' ENVIRONMENTAL IMPACT ANALYSIS: This addendum describes and evaluates the environmental impacts of using an alternative construction traffic route. As noted above,the SEIR was based on the assumption that all construction traffic would enter and exit through the main entrance to Plant No. 1 off Ellis Avenue. OCSD now proposes to divert construction traffic associated with the new activated sludge project from the Ellis Avenue entrance to the Garfield Avenue entrance. (See Revised Figure 3.8-3.) The proposed construction traffic routing would relieve traffic congestion at the intersection of Ellis Avenue and the southbound 1-405 ramps. The new activated sludge facility at Plant No. 1 is described in Section 2.2.3 of the SEIR. Impacts associated with construction traffic were evaluated in Section 3.8 of the SEIR. For the SEIR,construction traffic was assumed to enter and leave Plant No. 1 through the Ellis Avenue entrance. The SEIR concluded that during periods of peak Project construction, the volume of traffic along local access streets (including freeway ramps) would increase temporarily. The SEIR also concluded that once the Project was constructed,vehicle trips on local access roads would increase slightly. As documented in the SEIR, the Project would generate 22,750 soll trucks, 9,200 concrete delivery trucks,and 128,180 worker vehicles during 2008, the peak construction year. Construction traffic associated with the new activated sludge facility represents a portion of this traffic. The Black&Veatch Traffic Analysis, dated November 15,2006 documents that the new activated sludge facility would generate 15,850 soil haul trucks,4.800 concrete delivery trucks and 42,700 worker vehicles during the peak construction year OCSD retained Parsons to analyze additional traffic impacts analysis along the alternative route for peak periods of construction. The Parsons study, "Truck Traffic Impact Analysis for Pt-102,"dated January 31, 2007, analyzed traffic at five Intersections in Fountain Valley and Huntington Beach: Ellis Avenue and southbound 1.405 ramps; Garfield Avenue and Ward Street; Brookhurst Street and Garfield Avenue; Brookhurst Street and Ellis Avenue; and Brookhurst Street and Talbert Avenue.The study concluded that the Level of Service(LOS)at Ellis Avenue and the southbound 1-405 ramps would decline one level If OCSD were to direct all construction trucks at Plant No. 1 through the main entrance on Ellis as proposed in the SEIR. The study recommended that, to maintain traffic at acceptable LOS,an alternative construction truck route be provided via the Garfield gate at Plant No. 1. During peak periods of construction, the alternative route would help maintain traffic flow on Ellis Avenue, Euclid Street, and 1-405 access ramps. The subsequent study also concluded that the proposed traffic routing along Garfield Avenue would not result in an Increase in construction or operation related transportation and traffic impacts from those described in the SEIR. The additional traffic route along Garfield Avenue would not result in new significant environmental effects or a substantial increase in the severity of significant effects related to transportation and traffic from those determined in the SEIR. Page 2 of 4 FINDINGS OF APPROVAL FOR ADDENDUM NO.2 TO THE SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR THE SECONDARY TREATMENT AND PLANT IMPROVEMENT PROJECT: 1. Environmental impacts of the Project including Impacts associated with the new activated sludge facility at Plant No. 1 were evaluated in the SEIR that the OCSD Board certified on May 25,2005.Significant unavoidable traffic Impacts associated with the construction of the proposed Project were described In the SEIR. 2. To address traffic congestion associated with construction at Plant No. 1, an alternative route for construction trucks to and from the south end of Plant No. 1 along Garfield Avenue in Huntington Beach and Fountain Valley is proposed. This alternative route will help alleviate traffic congestion along Ellis Avenue and at the 1-405 freeway access near the main entrance to Plant No. 1. This route was not Identified in the SEIR. 3. As documented in the Black&Veatch traffic analysis, construction of the new activated sludge facility at Plant No. 1 would generate a portion of the traffic trips that were evaluated in the SEIR. Traffic impact analysis performed by Parsons concluded that rerouting construction traffic associated with the new activated sludge facility at Plant No. 1 through the entrance off Garfield Avenue would have a less than significant impact on the Level of Service(LOS)at intersections along the alternative route. The cited traffic analyses are available for review at the Sanitation District Administrative Offices located at 10844 Ellis Avenue In Fountain Valley, California. 4. The project modifications would not result in new significant environmental effects or a substantial Increase in the severity of significant effects that were described and disclosed in the SEIR. In addition, no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the SEIR was certified, has surfaced that shows (1) any new or substantially more severe Impacts; (2)any mitigation measures that were considered Infeasible In the SEIR are now feasible; or(3)mitigation measures or alternatives that are considerably different from those Identified In the SEIR which would substantially reduce one or more significant effects. Page 3 of 4 FOUTN „ VAL EY �=NTA AIBER AVE "�' ANA Additional Route ELLIS AVE HUN7 INGTIIN B CH RECLAMATION Ii PLANT No. 1 AOAIAS AVE G COSJA z s Ml SA HAM ILTO 0�r e TREATMENT y• PLANT No. 2 I• T 10 _ N •1 x 11` oaarcorrav 0 \NE,W OR �sEACH ■■■A■ Rubaba Cea9tNOW,Truck Traffic Routes I ,ot xit. o.ummmw r�annm.,n.. ce'dUS.wuhy Tvanvw aJYlw✓ny.vr.xno.WJO:Is Revised Figure 3.8-; Prohablc Construction'1}uck'I'raffic Rnuiwc Pape 4 of 4 BOARD OF DIRECTORS — Meeting Date I TOBtl.df D1r. a12s/m AGENDA REPORT Item Ilan13 13 Orange County Sanitation District kSecondary Treatment FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: David MacDonald SUBJECT: SECONDARY ACTIVATED SLUDGE FACILITY 2 AT PLANT NO. 1, JOB NO. P1-102 GENERAL MANAGER'S RECOMMENDATION 1. Receive and file Addendum No. 2 to the Final Subsequent Environmental Impact Report for the Secondary Treatment and Plant Improvement Project for project modifications, prepared by IPMC/CH2M Hill. 2. Approve plans and specifications for the construction of the Secondary Activated Sludge Facility 2 at Plant No.1, on file at the office of the Clerk of the Board; 3. Approve Addendum Nos. 1 through 6 to the plans and specifications; 4. Receive and file bid tabulation and recommendation; 5. Award a construction contract to Kiewit Pacific Co. for Secondary Activated Sludge Facility 2 at Plant No. 1, Job No. P1-102, for a total amount not to exceed $202,904,000; 6. Approve a 2.75% contingency for change orders to said construction contract ($5,600,000); and SUMMARY: • The purpose of this Project is to provide 60 mgd of secondary treatment at Plant No.1. The P1-102 Project is one of six projects designated by the Capital Improvement Program (CIP) as required to meet the Orange County Sanitation District's (Sanitation District) goal of full secondary treatment by the year 2012. The project will also be a future source of secondary effluent for the Ground Water Replenishment System (GWRS). • Black&Veatch Corporation completed the preparation of plans and specifications in September 2006. Sealed bids were received on March 20, 2007. A summary of the bids for Job No.P1-102 is as follows: Fong Na.M-102 Agenda Report-Boam Revised 12/0a/0a Pagel Project BudTet: $'65,846,000 Construction Contract Budget: $231,052,000 Engineer's Estimate $209,988,000 Lowest Responsive, Responsible Bid $202,904,000 High Bid: $229,985,000 is The Director of Engineering recommends the award of the construction contract for Secondary Activated Sludge Facility 2 at Plant No. 1, Job No. P1-102, to the Kiewit Pacific Company in an amount not to exceed $202,904,000. • The Director of Engineering also recommends a 2.75% contingency be established for construction change orders per the Sanitation District's Delegation of Authority. is Addendum No. 2 to the SEIR for the Secondary Treatment and Plant Improvement Project analyzes proposed modifications to haul routes for construction traffic to include Garfield Avenue and Brookhurst Street in Huntington Beach and Fountain Valley. No new significant environmental effects from the SEIR were determined. PRIOR COMMITTEEIBOARD ACTIONS None ADDITIONAL INFORMATION The improvements to be constructed under this contract were described in the Subsequent Environmental Impact Report (SEIR)for the Secondary Treatment and Plant Improvement Project which was certified by the Board on May 25, 2005. Additional review of traffic impacts is documented in Addendum No. 2 to the SEIR. Addendum No. 2 identifies impacts associated with construction truck traffic to and from the south end of Plant No. 1 along Garfield Avenue and Brookhurst Street in Fountain Valley and Huntington Beach. The proposed construction routing would not result in new significant environmental effects or a substantial increase in the severity of significant effects from those determined by the SEIR. These recommendations comply with authority levels of the Sanitation District's Delegation of Authority. The contractor selection process was conducted in accordance with the Sanitation District's adopted policies and procedures. This item has been budgeted. (Line item: Section 8, Page 53). Award Date: 04/25/07 Contract Amount: $202,904,000 Contingency%: 2.75% JH:DM:kf:gc KInt9lobaKAgentla Draft Repons\Board of Dlrectoni Contractor 4-25-07.doc Form No.DW-102 Agenda Report-Board Revised 1210 IM Page 2 ROLL CALL BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT MEETING DATE & TIME: 04/25/07 (5), 6:30 p.m. (BEAMISH) ......................ANDERSON................... ✓ v _ �^M (SHANKS) ........................ANTOS .........................�L ✓ _ (QUIRK) ...........................BANKHEAD................... �_ ✓ (CAVECCHE)....................DUMITRU ................... (KANG) .............................CHOI.......................... ✓ �L — (AYER)..............................CRANDALL................... _ ✓ (ROSEN)...........................DALTON....................... ✓ ✓ (PALMER).........................DAVERT...................... ✓ ✓ (OOTEN)...........................FERRYMAN................... — (REESE) ...........................FRESCHI .............. ..... ✓ _ (HANSEN) ........................GREEN ...................... (NARAIN)..........................LUEBBEN..................... �� ✓ �— — (DOW)...............................MARSHALL.................. a a cam, (REINHART).....................MILLER ......................... ✓ — (GARCIA)..........................MOORE................... ..... ✓ ✓ _ (KRIPPNER).....................NEUGEBAUER.............. ✓ ✓ _� — (NGUYEN) ........................NORBY....................... ✓ # �L — (DRISCOLL)......................PARKER....................... ✓ JL — (CADENA) ........................SHAWVER.................. ✓ — (KRING)............................SIDHU.......................... a" — (BENAVIDES)...................TINAJERO.................... a, 0� — (AGUIRRE).......................UNDERHILL ................. 1� ✓ JL — (RODRIGUEZ)..................WALDMAN.................... — (DAIGLE) .........................WEB'@ ..........................�L ✓ �L — (ANDERSON)...................WINDER ...................... ✓ ✓ - -k ? STAFF: Arhontes a r OC13qn Colson ✓ Ghirelli / ty cQPOo Herber � Kovac Gi tau l Kyle Ruth Torres Tyner ,✓ OTHERS: O Ho in 03/28/07 H:\OepUdmin\BS\DIRECTOR\Directors Roll Call.doc SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT ,0 �) BOARD MEETING NAME ORGANIZATIONIFIRM leaseprint) leaseprint) C7 � 3 i d4 Iti� a H:\WP.DTA\ADMIN\BSIFORMS\SIGN-IN FORM.DOC 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 , 2007. was duly posted for public inspection in the main lobby of the Districts' offices on ��`'� 0 2007. a'f IN WITNESS WHEREOF, I have hereunto set my hand this day of ' 2007. A, ^22�yz Penny M. Kyle, Clerk of the Board Board of Directors Orange County Sanitation District H:IDEPT\GMO\160\1 61\BS\FORMS\AGENDA CERTIFICATION.DOC April 17, 2007 MEMORANDUM TO: Chair and Members of the Board of Directors Orange County Sanitation District gq FROM: JamewD. Huth General Manager, Orange County Sanitation District SUBJECT: April Status Report The following status report for the month of April is submitted for your review and consideration. 1. Design-Build Legislation SB 645 is set for hearing in the Senate on Tuesday, April 18. OCSD has received letters of support from the Building Industry Association of Southern California/Orange County, Orange County Business Council, cities of Buena Park and Tustin, as well as CASA, and the pipe fitters and electrical labor unions. 2. SARI Line Funding A meeting was held on Thursday, April 12 between the County of Orange, SAW PA, OCWD, and OCSD to review draft financial agreements between the County and SAW PA and the County and OCSD. Minor changes in the documents were reviewed and concurred on. Director Steve Anderson and staff represented OCSD. Staff is prepared to recommend to the Board this financial agreement which defines how this long-awaited project can be financed by the participating agencies. 3. All Hands Meeting OCSD will hold its All Hands meeting on Thursday, April 26. Chairman Ferryman will welcome our employees and give an overview of OCSD's progress and Board direction. 4. Information Technology Recruitment for the IT systems & Operations Manager should be completed by May 30t'. We plan to complete the interview and selection process by mid-June and make an appointment by July 1. Board of Directors Page 2 April 17, 2007 5. Professional of Management Training Program Fifteen supervisors completed the Profession of Management training program and the second class of fifteen began on April 17. The program is designed to build our bench, and develop a consistent management philosophy within our management team. 6. Labor Negotiations Counter proposals have been received from our labor negotiating teams. Staff is evaluating the proposals against Board policy direction. Progress has been slow to date. Additional meetings are scheduled for April 18 with 501; SPMT has not rescheduled at this time. 7. 1972 SARI Line Agreement Between OCSD and SAWPA OCSD has received a request from SAWPA to revisit the 1972 agreement between our respective agencies for the purpose of examining ongoing operational and capital needs. The current agreement is approximately 35 years olds and could benefit from a fresh look at technical, financial, and legal requirements contained within the current agreement. With Steering Committee concurrence, staff and I will initiate discussion with SAWPA staff and ultimately report back to the Steering Committee and Board. 8. Office and Operational Space Study The space analysis has been completed and a written report is being prepared for staff review. The study is being done by IPMC. The final plan will be used to match up current staffing needs with available space and to optimize the staffing assignments at our newly acquired North County Maintenance Yard. JDR:gg M:Md01BmAMI I oAdM.Mu MMES .Ius R.Ift I.Bm..'GM siewe,.pw 41E07 Wb01,swwz Re d. ORANGE COUNTY SANITATION DISTRICT Date: April 17, 2007 phone: To The Chair and Board of Directors n141 Bez-2411 Orange County Sanitation District fee: (7141982-0 BS From: James D. Ruth varoe•ecad.Wm General Manager malling addna.: P.O. Bot 8127 Subject: Board Letter f .nceln Valley.G4 92728-8127 stage[adds...: PBou wnllValleV ca Orange County Sanitation District Receives Award for Budget 8270e-7819 Preparation The Certificate of Achievement for Excellence in Financial Reporting has been Member awarded to OCSD by the Government Financial Officers Association of the United A...also States and Canada (GFOA)for our comprehensive annual financial report(CAFR). e The Certificate of Achievement is the highest form of recognition for governmental titles accounting and financial reporting, and represents a significant accomplishment by a A .n.lm government entity and its management (see attached). Br.. Buena Pan: Line Hsiao, our Principal Accountant, also received a personal Award of Financial Cypress Fn.nt.ln Valley Reporting Achievement for preparing our award-winning CAFR. Fullerton Garden Grove Huntogtcn B..th GFOA is a non-profit professional association serving approximately 16,000 Irvine government finance officers in North America. The group rates budget documents Le Habra Le Palm. on how well they serve as a financial plan, a policy document, an operations guide, Lea Alamlto. and a communications device. Newport Beach grange Placard. sal a Are Compost Use Program Showcased at Mission San Juan San M.oth Com Capistrano P g Starts In our ongoing effort to promote in-county biosolids recycling through the Compost Taedn Ville Perk Use Program, Synagro, OCSD and South Orange County Water Agency (SOCWA) r.roa Linda worked with the City of San Juan Capistrano and Mission San Juan Capistrano to County of orange develop a compost demonstration garden at the Mission. The Mission received a 30 cubic yard donation of biosolids compost from Synagro in aenitery District. February and in coordination with the Mission's Gardening Angels, the compost is c.sts Mo.a being used in their gardens as a soil amendment. Midway City Water District. This on-going compost donation project will assist the Mission San Juan Capistrano knl s parch In continuing to conserve crucial funding needed for preservation. The 10 acres of lush gardens at the Mission offers the Compost Use Program a wonderful showcase location to promote in-county biosolids compost use. It also highlights benefits the high-quality soil amendment provides, such as water conservation, reducing soil erosion, alleviating soil compaction, and controlling disease and pest infestation. To maintain worldtclecs leadership in wastewater and water resource management. Board of Directors Page 2 April 17, 2007 EnerTech Completes Financial Closing for its Rialto Biosolids Facility On April 2n°, EnerTech announced that the financing for its biosolids-to-energy facility in Rialto has been completed and construction will begin immediately. The transaction, valued at$150 million, was financed through equity and a combination of tax exempt and taxable bonds. Deutsche Bank has agreed to purchase 100% of the bonds. With this financing complete, EnerTech has obtained the commitments of its investors, partners, and municipal customers to make the biosolids-to-energy process in Rialto a reality. The EnerTech facility will convert 225 tons per day of OCSD's biosolids, along with 450 tons of biosolids from the Sanitation Districts of Los Angeles County and the cities of Riverside and San Bernardino, into renewable fuel. The renewable fuel will be used by a local cement kiln as an alternative to coal. This facility will provide a sustainable biosolids management option that has significant environmental benefits for all of the participating municipalities. A formal groundbreaking ceremony is planned for May 2007. Public Access to Sanitary Sewage Overflow Database Beginning May 7, 2007, the public will be able to access Sanitary Sewage Overflow report data filed by OCSD and member agencies. The following features will be available: • Agency spill performance information (e.g., number of spills, volume spilled, number of spills per 100 miles of pipe) based on user-specified search criteria (e.g., city, date, regional water quality control board) • Allow users to view a complete report for a specific spill • Only certified report data will be presented • Format similar to other California Integrated Water Quality System (CIWQS) public reports • Available to the public online at State Water Resources Control Board's web site www.waterboards.ca.gov Articles of Interest I have also included additional articles that you might find interesting. If you would like more information on any of the above items, please call me. James D. Ruth General Manager JDR:gg RIDEMGWt110,GK9 AR0 LERE WftM ,Wl 80PR0 ORDJC Attachments v National Water Research Institute April 2007 E-Newsletter Dr. James Barnard of Black & Veatch to Receive NWRI's 2007 Clark Prize NW RI is pleased to announce that environmental engineer James L. Barnard, Ph.D., P.E., of Black &Veatch Corporation in Kansas City, Missouri, will be the fourteenth recipient of the NW RI Athalie Richardson Irvine Clarke Prize for excellence in water research. For over 40 years, Barnard has researched and implemented better ways to conserve water resources and improve wastewater treatment. His groundbreaking application of bacteria to remove both nitrogen and phosphorous from water revolutionized wastewater treatment processes, allowing treatment plants to employ Barnard's biological nutrient removal (BNR) as a more economic and environmentally friendly alternative to traditional chemical treatment. Not only did Barnard create the process, but he also actively designs and supervises the construction and start-up of BNR systems in various parts of the world, constantly adapting his innovative technology to varying climates, existing infrastructure, and environmental pressures. He even created a low-cost BNR design for developing countries. It has been estimated that the hundreds of plants worldwide employing BNR rather than chemical treatment processes have saved hundreds of millions of dollars in costs. Another of Barnard's most notable achievements includes his 10-year service on the Nitrogen Technical Advisory Panel for the New York City Department of Environmental Protection, where he helped guide a $50 million BNR research and development program for the Upper East River and Jamaica Bay areas. Because of his pivotal research contributions and practical applications of biotechnology to wastewater treatment processes, Barnard was selected as the 2007 Clarke Prize recipient. The Prize will be presented to him on Thursday, July 12, 2007, at the Fourteenth Annual Clarke Prize Lecture and Award Ceremony, to be held in Huntington Beach, California. More information about the Clarke Prize may be found at www.nwri- usa.om/ClarkePdze. NWRI's Fellowship Conference to Highlight Graduate Research in Water and Wastewater NW RI will hold its First Annual Graduate Fellowship Research Conference to showcase the work of NWRI Fellows to our water and wastewater agency members, Research Advisory Board, Corporate Associates, Principal Investigators, other students, and members of the academic community. The 1-day conference will be held on April 13, 2007, at the Doubletree Hotel in Orange, California. Eleven graduatestudents from schools across the nation will speak on topics such as the rapid detection of coliphage, photochemical and biological oxidation to remove antimicrobial compounds, urban drainage network patterns, and treatment models for 1 v high ionic waste streams. Dr. George Tchobanoglous (University of California, Davis) and Dr. Perry McCarty (Stanford University)will both give keynote addresses. The Graduate Fellowship Research Conference is sponsored by NWRI's Corporate Associates, who include Boyle Engineering, Cargill, Inc., Carollo, CDM, Kennedy/Jenks Consultants, Malcolm Pimie, Inc.,and MWH. For more information about the conference, please visit www.nwri-usa.orc/aradconference. If you are interested in attending the conference, please email Tammy Russo at trussotftwri-usa.oro. Professors and students from nearby universities are especially encouraged to attend. There is no cost to attend, but registration is required. OC Water Camp for Youth Interested in Water, Environment, and Science NWRI is pleased to announce that OC Water Camp 2007, an interactive, week-long water summer education program, is open to students in Orange County, California, ages 12-15, who are interested in learning more about our water resources and careers in water-related fields. This year, Water Camp will be held from 8 a.m. to 3 p.m. on June 25-29,2007, and again on July 16-20, 2007. Students will have the opportunity to conduct real lab work, take field samples, tour state-of-the-art labs and treatment facilities, and talk one-on-one with professionals in water and wastewater-related fields. Agencies such as the University of California Cooperative Education Center, Orange County District Attorney's Office, Cities of Orange and Anaheim, CH2M Hill, Surfrider Foundation, and many others are volunteering their time to teach students about topics in water and wastewater, such as water recycling, landscape conservation,fertilizers and urban runoff,environmental crime, environmental advocacy, and various biological/chemical contaminants in our water supplies. NWRI is sponsoring Water Camp in partnership with the County of Orange, Irvine Ranch Water District, Municipal Water District of Orange County, Orange County Sanitation District, and Orange County Water District. The application deadline date for Water Camp is May 1, 2007. More information may be found at www.ocwatercamo.cm. Upcoming Events Urban Water Institute's Water Conservation Workshop A nonprofit, the Urban Water Institute will hold an Urban Water Conservation Workshop to present the latest policies, issues, and ideas for increasing water conservation and reducing water demands. The workshop will be held at the Irvine Marriott on April 23-24, 2007, in Irvine, California. Please visit www.urbanwater.com to register or for further information. 2 d Southwest Membrane Operator Association's Membrane Plant Operator Training Workshop The Southwest Membrane Operators Association (SWMOA), an affiliate of the American Membrane Technology Association, will be holding a Membrane Plant Operator Training workshop on Wednesday, May 2, 2007, from 9:00 am to 4:00 pm at the Eastern Municipal Water District in Perris, California. Representatives from Tetra Tech, CH2M Hill, Carollo Engineers, and the Eastern Municipal Water District will provide classroom instruction on MF/UF and RO/NF technologies, membrane fouling and cleaning procedures, and OF/MF system design and operation, as well as provide hands-on training at a 10-mgd microfiltration facility. For more information or to register, please visit www.swmoa.oro. World Environmental and Water Resources Congress 2007-EDC Symposium A special session devoted to endocrine disrupting compounds (EDCs)and other contaminants of concern will take place at the EWRI 2007 Congress in Tampa, Florida, on Tuesday, May 15, 2007. NWRI is a sponsor of this event. EDCs, which are chemicals that can mimic or block the action of natural hormones, can change the way an organism or its offspring reproduces, grows, or develops. Throughout the day, a number of technical presentations will be made on EDCs and related topics that focus on toxicology and detection, as well as occurrence, fate, and transport. Registration information is available at hfD:/lcontent.asce.ora/conferences/ewri2007/. For more information on the EDC Symposium, please contact Arthur Kney at knevadt lafavette.ed u. AMTA 2007 Conference and Exposition "Why Gamble with your Future? Go Membranes!" is the theme of the 2007 Conference and Exposition hosted by the American Membrane Technology Association. The conference will be held July 23-26, 2007, in Las Vegas, Nevada. Jeff Mosher of NWRI will moderate a pre-conference session on "Inland Concentrate Management,"which will be held on Monday, July 23, 2007, and is sponsored by NWRI. Other topics at the conference will include"Planning, Policy, and Regulations"; "Membrane Filtration Experiences"; "Membrane Bioreactors"; "Energy Recovery"; and more. For further information, please visit www.amtaorg.com. 3 AGENDA BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT DISTRICT'S ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CA 92708 REGULAR MEETING April 25, 2007— 6:30 P.M. 1. Invocation and Pledge of Allegiance (Garden Grove— Director Bill Dalton) 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. Ratifying payment of claims of the District, by roll call vote, as follows: ALL DISTRICTS 03/15/07 03/31/07 Totals $21,431,257.83 $11,783,500.97 DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. 04/25/07 Page 2 CONSENT CALENDAR 8. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. Order the minutes for the regular meeting held on March 28, 2007, to be filed and deemed approved, as mailed. b. Adopt Resolution No. OCSD07-06, Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD07-03, providing for the Steering Committee to start at 5:30 p.m., and the monthly Board of Directors regular meeting to start at 6:30 p.m. C. Approve a Hold Harmless Agreement with the City of Costa Mesa, in a form approved by General Counsel, to protect the City from design and construction liabilities associated with College Avenue Pump Station Rehabilitation, Project 7-47. d. (1) Receive and file Petition for Peremptory Writ of Mandate and Complaint for Declaratory Relief, County of Kem v. Orange County Sanitation District, Orange County Superior Court Case No. 07-CC0415, in connection with the Tule Ranch CEQA review; and, (2)Authorize General Counsel to appear and defend the interests of the Sanitation District. END OF CONSENT CALENDAR e. Consideration of items deleted from Consent Calendar, if any. COMMITTEE REPORTS AND RECOMMENDED ACTIONS 9. STEERING COMMITTEE Consent Calendar a. Order draft Steering Committee Minutes for the meeting held on March 28, 2007, to be filed. b. (1)Approve Santa Ana River Interceptor(SARI) Line Loan and Repayment Agreement No. D07-042 with the Orange County Flood Control District (OCFCD), providing for a no-interest loan until July 2016 of 60% of the successful bid amount for improvements to the SARI Line, for an amount not to exceed $60,000,000; and, (2)Authorize the release of$35,000,000 to OCFCD immediately after the award of the contract, and to allow the remaining balance to be released 12 months later. 04/25/07 { Page 3 Non-Consent Calendar C. Consideration of items deleted from Consent Calendar, if any. 10. OPERATIONS COMMITTEE (Engineering. Operations & Maintenance. and Technical Services) Consent Calendar a. Order draft Operations Committee Minutes for the regular meeting held on April 4, 2007, to be filed. b. (This item was approved at the 03107107 Operations Meeting but was omitted from the 03/28/07 agenda.) (1) Approve a budget increase for Rehabilitation of the 10 Street Pump Station, Contract No. 5-51, in the amount of$86,836 for a total project budget of $9,759,836; and, (2) Ratify Change Order No. 3 to Rehabilitation of 1he10 Street Pump Station, Contract No. 5-51, and Rehabilitation of the"A" Street Pump Station, Contract No. 5-52, with Kiewit Pacific Company authorizing an addition of$178,181 and 0 calendar days, increasing the total contract amount to $12,273,404. C. (1) Ratify Change Order No. 5 to Ellis and Bushard Intersection, Contract No. 1-24A, with Mike Bubalo Construction, Inc., authorizing an addition of $108,026, increasing the total contract amount to$11,231,081.70; and, (2)Approve a 1.65% contingency for change orders to said contract($184,660). d. (1) Ratify Change Order No. 1 to Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, with J F Shea, authorizing an addition of$233,803, which includes a $200,000 bonus for lowered power consumption, increasing the total contract amount to $10,121,784; and, (2)Approve an 8%contingency for change orders to said contract($791,038). e. (1) Ratify Change Order No. 3 for Activated Sludge Plant Rehabilitation at Plant No. 1, Job No. P1-82, with J.R. Filanc Construction Company Inc., authorizing an addition of$175,784, increasing the total contract amount to $32,554,405; and, (2)Approve a 7% contingency for change orders to said contract ($2,253,510). f. (1)Approve Amendment No. 1 to the Professional Services Agreement with Black &Veatch Corporation for additional engineering services for Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for an additional amount of$120,082, increasing the total contract amount not to exceed $1,138,989; (2)Approve a 4.0% contingency for amendments to said agreement($45,560); and, 04/25/07 Page 4 (3)Authorize staff to commence negotiations with Black &Veatch Corporation for support services during the construction, commissioning, and closeout phases of Contract No. 5-58. g. (1)Approve Amendment No. 2 to the Professional Services Agreement with Earth Tech, Inc. providing for additional construction management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-24, for an additional amount of $120,525, increasing the contract total amount not to exceed $2,651,811; and, (2)Approve a 12% contingency for amendments to said agreement($318,217). h. (1)Approve Plans and Specifications for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106; (2) Approve Addendum Nos. 1 and 2 to the plans and specifications; (3) Receive and file bid tabulation and recommendation; (4) Award a construction contract to Adams Mallory Construction Co., Inc. for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106, for a total amount not to exceed $1,887,721; and, (5) Approve a 5.25% contingency for change orders to said contract($99,100). i. (1)Approve Amendment No. 1 to the Professional Services Agreement with Spec Services, Inc. providing for construction support services for the Gisler- Redhill Trunk Sewer Relocation, Phase 1, Contract No. 7-32-1, for an additional amount of$44,550 increasing the total amount not to exceed $147,141. (2)Approve an 8% contingency for amendments to said agreement ($11,771). j. Approve years two and three of a three-year Memorandum of Understanding with California State University, Fullerton Auxiliary Services Corporation for Continued Operation of the Center for Demographic Research, for the period July 1, 2007 through June 30, 2009,for$118,670, for a total amount not to exceed $173,671, k. (1)Approve a 6.2% contingency for change orders ($725,262)for Rehabilitation of the 10 Street Pump Station, Contract No. 5-51, and Rehabilitation of the W Street Pump Station Contract No. 5-52; (2)Approve a 6.82%contingency for change orders($2,046,219)for Bushard Trunk Sewer Rehabilitation Contract No. 1-24; (3)Approve a 4.5% contingency for change orders ($346,490)for Bushard Trunk Sewer Pipe Procurement, Contract No. 1-2-4P; (4) Approve a 7.5% contingency for change orders ($2,342,445)for 66-Inch Ellis Avenue Trunk Sewer, Contract No. 1-10A; (5)Approve a 5%contingency for change orders ($1,385,862)for Ellis Avenue Pump Station, Contract No. 1-106; 04/25/07 Page 5 (6)Approve a 30% contingency for change orders ($1,898,700)for Standby Power and Reliability Improvements, Contract No. J-33-1 A; (7)Approve a 1.75%contingency for change orders ($782,872)for Effluent Pump Station Annex, Contract No. J-77; (8)Approve a 4% contingency for change orders ($2,814,640)for Primary Clarifier Nos. 16-31 and Related Facilities, Contract No. P1-37; (9)Approve a 2.5%contingency for change orders ($4,807,402)for Headworks Improvements at Plant No. 2, Contract No. 132-66; (10)Approve a 2.75%contingency ($4,941,117)for change orders for Trickling Filters at Plant No. 2 Contract No. P2-90; It 1)Approve an 8% contingency($198,078)for amendments to the Professional Design Service Agreement for Replacement of the Rocky Point Pump Station, Job No. 5-50; (12)Approve a 2.8%contingency($59,575)for amendments to the Professional Design Service Agreement for Rehabilitation of the 140 Street Pump Station, for Job No. 5-51, and Rehabilitation of the "A" Street Pump Station Job No. 5-52; (13)Approve a 7%contingency ($38,905)for amendments to the Professional Design Service Agreement for Gisler-Red Hill Trunk Improvements, Job No. 7-37; (14)Approve a 1.5%contingency($52,109)for amendments to the Professional Design Service Agreement (Boyle)for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4; (15)Approve a 1%contingency ($33,599)for amendments to the Professional Design Service Agreement for Standby Power and Reliability Improvements, Job No. J-33-1A; (16)Approve an 8% contingency ($25,708)for amendments to the Professional Design Service Agreement for Bushard Trunk Sewer Rehabilitation (Malcolm Pimie), Job No. 1-2-4; (17)Approve a 5%contingency ($112,577)for amendments to the Professional Design Service Agreement for Cable Tray Improvements at Plant Nos. 1 and 2, Job No. J47; (18)Approve a 2%contingency($123,285)for amendments to the Professional Design Service Agreement for Effluent Pump Station Annex, Job No. J-77; (19)Approve a 5% contingency ($159,901)for amendments to the Professional Design Service Agreement for Air Quality Improvements, Job No. J-79; (20)Approve a 10% contingency($139,786)for amendments to the Professional Design Service Agreement for Central Generation Automation, Job No. J-79-1; 04/25/07 Page 6 (21)Approve a 1% contingency ($78,017)for amendments to the Professional Design Service Agreement for Primary Clarifier Nos. 16-31 and Related Facilities, Job No. P1-37; (22)Approve a 3% contingency($26,403)for amendments to the Professional Design Service Agreement for Headworks Rehabilitation/Refurbishment at Plant No. 1, Job No. P1-71; (23)Approve a 1.2% contingency ($70,552)for amendments to the Professional Design Service Agreement for Activated Sludge Plant Rehabilitation at Plant No. 1, Job No. P1-82; (24)Approve a 5% contingency ($38,969)for amendments to the Professional Design Service Agreement for 66KV Substation at Plant No. 1, Job No. P1-97; (25)Approve a 10% contingency ($366,538)for amendments to the Professional Design Service Agreement for Sludge Digester Rehabilitation at Plant No. 1, Job No. P1-100; (26)Approve a 10% contingency ($1,112,958)for amendments to the Professional Design Service Agreement for Sludge Dewatering and Odor Control at Plant No. 1, Job No. P1-101; (27)Approve a 2% contingency ($533,802)for amendments to the Professional Design Service Agreement for Headworks Improvements at Plant No. 2, Job No. P2-66; and, (28)Approve a 4% contingency ($110,148)for amendments to the Professional Design Service Agreement for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74. Non-Consent Calendar I. Consideration of items deleted from Operations Committee Consent Calendar, if any. 11. ADMINISTRATION COMMITTEE finance Human Resources. and Information Technology) Consent Calendar a. Order draft Administration Committee Minutes for the regular meeting held on April 11, 2007, to be filed. b. (1)Adopt Resolution No. OCSD 07-07,Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2007A,Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $315,000,000,Approving a Notice of Intention to Sell,Authorizing the 04/25/07 Page 7 Distribution of an Official Notice Inviting Bids and an Official Statement in Connection with the Offering and Sale of Such Certificates and Authorizing the Execution of Necessary Documents and Certificates and Related Actions. Non-Consent Calendar C. Consideration of items deleted from Administration Committee Consent Calendar, if any. 12. GWR SYSTEM STEERING COMMITTEE(GWRSSC) GWRSSC Consent Calendar a. Verbal update re Joint Groundwater Replenishment System Steering Committee meeting held on April 9, 2007. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON-CONSENT CALENDAR 13. (1) Receive and file Addendum No. 2 to the Final Subsequent Environmental Impact Report (SEIR)for the Secondary Treatment and Plant Improvement Project for project modifications, prepared by IPMC/CH2M Hill. (2)Approve plans and specifications for Secondary Activated Sludge Facility 2 at Plant No. 1, Job No. P1-102; (3)Approve Addendum Nos. 1 through 6 to the plans and specifications; (4) Receive and file bid tabulation and recommendation; (5)Award a contract to Kiewit Pacific Co. for Secondary Activated Sludge Facility 2 at Plant No. 1, Job No. P1-102, for a total amount not to exceed $202,904,000; (6)Approve a 2.75% contingency ($5,600,000)for change orders to said contract; and, 14. (a) Ratify use of General Manager's emergency purchasing authority, Resolution No. OCSD 07-04, authorizing the General Manager to issue Purchase Order No. 60138OS to Sancon Engineering, Inc., for Clarifier F Influent Pipe Emergency Repair, Job No. FE06-15, for a total amount not to exceed $124,800; and, (b)Approve a 400/6 contingency for change orders to said contract ($50,000). 04/25/07 Page 8 15. Ordinance No. OCSD-31, An Ordinance of the Board of Directors of Orange County Sanitation District adopting Wastewater Discharge Regulations, Ordinance No. OCSD-31, and repealing Ordinance No. OCSD-01: a. Motion to read Ordinance No. OCSD-31 by title only and waive reading of said entire ordinance. b. Motion to introduce Ordinance No. OCSD-31, and pass to second reading and public hearing on May 23, 2007. 16. Ordinance No. OCSD-32, 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-30B: ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES, REVISED TABLE B RE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS, REVISED TABLE C RE CAPITAL FACILITIES CAPACITY CHARGES, NEW TABLE D RE PLAN CHECK AND INSPECTION FEES, REVISED TABLE E RE SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES (FORMERLY TABLE D). REVISED TABLE F RE ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES (FORMERLY TABLE E), REDESIGNATED TABLE G (FORMERLY TABLE F), REVISED TABLE H RE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE (FORMERLY TABLE G), REVISED TABLE I RE WASTEHAULER CHARGES FOR USE (FORMERLY TABLE H), AND REAFFIRMING ALL OTHER CHARGES a. Motion to read Ordinance No. OCSD-32 by title only and waive reading of said entire ordinance. b. Motion to introduce Ordinance No. OCSD-32, and pass to second reading and public hearing on May 23, 2007. 17. Ordinance No. OCSD-33,Adopting Fees, Revised Procedures and Policies Concerning Annexation of Properties to the District and Repealing Ordinance No. OCSD-29: a. Motion to read Ordinance No. OCSD-33 by title only and waive reading of said entire ordinance. b. Motion to introduce Ordinance No. OCSD-33, and pass to second reading and public hearing on May 23, 2007. 18. Recess by Board of Directors, Orange County Sanitation District 19. Call to Order, Board of Directors, Orange County Sanitation District Financing Corporation: a. Roll Call 04/25/07 Page 9 b. If no corrections or amendments are made, the Minutes for the meeting held on February 28, 2007, will be deemed approved and be so ordered by the Chair. C. Report of the Director of Finance d. Adopt Resolution No. FC-04,Authorizing the Execution and Delivery by the Corporation of an Installment Purchase Agreement and a Trust Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2007A; Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $315,000,000 and;Authorizing the Execution of Necessary Documents and Certificates and Related Actions(See.,Agenda Item 11(b)). 20. Adjourn, Board of Directors, Orange County Sanitation District Financing Corporation. 21. Reconvene, Board of Directors, Orange County Sanitation District 22. Closed Session CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. a. Convene in closed session, if necessary (1) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Subdivision (a) of Section 54956.9) Case: County of Kern v. OCSD, Orange County Superior Court, Case No. 070004515 b. Reconvene in regular session C. Consideration of action, If any, on matters considered in closed session 04/25/07 Page 10 23. Other business and communications or supplemental agenda items, if any 24. Matters which a Director may wish to place on a future agenda for action and staff report. 25. Future Meeting Date: The next Board of Directors regular meeting is scheduled for May 23, 2007, at 6:30 p.m. 26. Adjournment 1 04/25/07 Page 11 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All written materials relating to each agenda item are available for public inspection in the office of the Clerk of the Board. 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 Speaker's Form(located at the table outside of the Board Room)and give it to the Clerk of the Board. Consent Calendar:All matters placed on the Consent Calendar are considered as not requiring discussion or further explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director,staff member or member of the public in attendance,there will be no separate discussion of these items. All items on the Consent Calendar will be enacted by one action approving all motions,and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular order of business. Members of the public who wish to remove an item from the Consent Calendar shall,upon recognition by the Chair, state their name,address and designate by number the item to be removed from the Consent Calendar. The Chair will determine if any items are to be deleted from the Consent Calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting 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 Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. ............................................................................................................................................................................................................................................................................. ....: .NOTICE TO DIRECTORS:To place items on the agenda for the Regular Meeting of the Board of Directors, items shall be submitted to the Clerk of the Board no later than the close of business 14 days :preceding the Board meeting. The Clerk of the Board shall include on the agenda all items submitted by ':.Directors,the General Manager and General Counsel and all formal communications. 'General Manager James D. Ruth (714)593-7110 indhCa)ocsd.com ;Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli@ocsd.com :Clerk of the Board Penny Kyle (714)593-7130 pkvlecB)ccsd.cem :Director of Engineering Jim Herberg (714)593-7020 iherbergaocsd.com 'Director of Fin.&Admin Services Lorenzo Tyner (714)593-7550 Iwner0ocsd.com :Director of Operations& Nick Arhontes (714)593-7210 narhontesIftocsd.cem Maintenance .Director of Technical Services Ed Tortes (714)593-7080 etorres(o'tocsd.com Generel Counsel.................._.................. .............Hogin.............._.................__(714Z584-2808 bhoginQwsa-law.mm................... H:WepMgendakBoard Agendast2007 Board AgendW032807 agenda.doc 9 v Orange County Sanitation District MINUTES BOARD MEETING March 28, 2007 �oJN� SANITgT�Oy 9 � ea O y ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 A Minutes for Board Meeting r W 03/28/07 G Page 2 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on March 28, 2007 at 7:00 p.m., in the District's Administrative Offices. Following the Pledge of Allegiance and invocation, the roll was called and the Clerk of the Board reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X James M. Ferryman, Chair Bob Dolan X Doug Davert,Vice Chair Jim Palmer X Steve Anderson Tom Beamish X Charles Antos Gordon Shanks X Don Bankhead Sharon Quirk X Jon Dumitru Carolyn Cavecche X Steven Choi Sukhee Kong X Larry Crandall Gus Ayer X Bill Dalton Mark Rosen Richard Freschi X Brad Reese X Cathy Green Don Hansen X Phil Luebben Prakash Narain X Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore Ron Garcia X Joy Neugebauer A) Krippner X Chris Norby Janet Nguyen X Ken Parker Catherine Driscoll X David Shawver David Cadena X Harry Sidhu Lucille Kring X Sal Tinajero David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Ralph Rodriguez X Don Webb Leslie Daigle X Jim Winder John Anderson STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Penny Kyle, Clerk of the Board; Nick Arhontes; Bret Colson; Bob Ghirelli; Jim Herberg; Ed Torres; Lorenzo Tyner; Lilia Kovac; Bob Chenowith; Michael Gold; Juanita Skillman; Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel; Bob Ooten; Ron Garcia; Jackie Nutting; J. P. Goth; Eric Christen; Larry Gaertner, Deede Both; Gabrielle Greenberg; Gary Mondi a Minutes for Board Meeting `6 03/28/07 Page 3 MOVED, SECONDED AND DULY CARRIED: Receive and file minute excerpts from the following re appointment of active and alternate Directors, as follows: City/Agency Active Director Alternate Director Seal Beach Charles Antos Gordon Shanks PUBLIC COMMENTS Public comments were made by Jackie Nutting of ABC and Eric Christen of Coalition for Fair Employment in Construction with reference to Senate Bill 645. Also, Mr. J. P. Goth of Cowan Heights spoke in opposition to Item 8(b), proposed Annexation No. OCSD-61 —Cowan Heights Annexation. REPORT OF THE CHAIR Chair Ferryman reviewed the committee meeting schedule for April. He also provided a brief report on his attendance at the CASA Conference held in Washington, DC earlier that month. Mr. Ferryman also reported that former General Manager Fred Harper passed away on March 8. He noted that Mr. Harper was the General Manager from 1965 to 1984. He noted that the meeting would be adjourned in his memory. REPORT OF THE GENERAL MANAGER General Manager Jim Ruth reported on recent meetings with the County, SAWPA, and OCWD on the SARI Line, as well as brief progress reports on internal activities outlined In his monthly written report. REPORT OF THE GENERAL COUNSEL General Counsel Brad Hogin did not make a report. 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 02/15/07 02/28/07 Totals $15,411,469.04 $18,094,859.35 Director Green abstained from discussion and voting on Warrant Nos. 87998, 88007, 88011, 88012, 88477, 88657, and 88679. Director Marshall abstained from discussion and voting on Warrant No. 88679. Director Norby abstained from discussion and voting on Warrant No. 88020. Director Shawver abstained from discussion and voting on Warrant Nos. 88059, 88595, 88263, 88648, and 88655. Director Sidhu abstained from discussion and voting on Warrant Nos. 87990, 88239, 88577, 88679, 88234, and 88235. Abstentions were pursuant to California Government Code Section 84308. i' Minutes for Board Meeting ° 03/28/07 9 Page 4 CONSENT CALENDAR 8. Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Order the minutes for the regular meeting held on February 28, 2007, to be filed and deemed approved, as mailed. b. MOVED, SECONDED AND DULY CARRIED: (1)Authorize staff to annex 152.30 acres to Orange County Sanitation District(OCSD) in the vicinity of Newport Boulevard, Rangeview Drive and Cowan Heights Drive, in an unincorporated area of Orange County; (2)Adopt Resolution No. OCSD 07-05, authorizing initiation of proceedings to annex said territory to OCSD (Proposed Annexation No. OCSD-61 —Cowan Heights Annexation); and, (3) Defer collection of associated fees for proposed Annexation No. OCSD-61 — Cowan Heights Annexation until a sewer connection is permitted. C. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager to negotiate and enter into a settlement agreement with Firmenich, dba MCP Foods Inc. (MCP), which would impose a maximum of$95,000 in administrative penalties against MCP and a compliance schedule requiring MCP to make improvements and additions to the facility to ensure long-term compliance. END OF CONSENT CALENDAR COMMITTEE REPORTS AND RECOMMENDED ACTIONS 9. STEERING COMMITTEE Chair Ferryman reported that the General Manager had provided a status report to the committee; Michael Gold gave an update on legislative activities; and Nick Arhontes provided an update on the Huntington Beach Pump Station. Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Steering Committee Minutes for the meeting held on February 28, 2007, to be filed. Non-Consent Calendar No items were considered. Minutes for Board Meeting 03/28/07 Page 5 10. OPERATIONS COMMITTEE (Engineering, Operations 8 Maintenance. and Technical Services) Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Operations Committee Minutes for the regular meeting held on March 7, as corrected, to be filed. b. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 23 to Bushard Trunk Sewer Rehabilitation, Job No. 1-24, with Steve P. Rados, Inc., authorizing an addition of$48,198, increasing the total contract amount to $31,164,224. C. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 4 to Ellis and Bushard Intersection, Contract No. 1-24A, with Mike Bubalo Construction, Inc., authorizing an addition of$194,229.34, increasing the total contract amount to $11,123,055.70. d. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 8 to Trickling Filter Rehabilitation and New Clarifiers, Job No. P1-76, with J.R. Filanc Construction Company Inc., authorizing an addition of$232,036, increasing the total contract amount to$35,223,546. e. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 2 for Activated Sludge Plant Rehabilitation at Plant No. 1, Job No. P11-82, with J.R. Filanc Construction Company Inc., authorizing an addition of$36,543, increasing the total contract amount to$32,378,621. f. MOVED, SECONDED AND DULY CARRIED: Ratify Change Order No. 4 to Headworks Replacements at Plant No. 2, Job No. P2-66, with J.F. Shea Construction, Inc., authorizing an addition of$332,489, increasing the total contract amount to$193,474,189. g. MOVED, SECONDED AND DULY CARRIED: (1) Approve Amendment No. 5 to the Professional Services Agreement with RBF Consulting, Inc. providing for additional design engineering services for Carbon Canyon Sewer and Pump Station Abandonment, Contract No. 2-24-1, for an additional amount of$40,771, increasing the total amount not to exceed $622,557; (2) Approve a 4% Contingency ($25,000); and, (3) Authorize staff to commence negotiations with RBF Consulting for support services during the construction, commissioning, and close out phase of Contract No. 2-24-1. Minutes for Board Meeting 03/28/07 y Page 6 h. MOVED, SECONDED AND DULY CARRIED: (1)Approve Amendment No. 7 to Professional Services Agreement with Lee & Ro, Inc., providing for additional design engineering services for Replacement of the Bitter Point Pump Station, Contract No. 5-49; Replacement of the Rocky Point Pump Station, Contract No. 5-50; Rehabilitation of the 10 Street Pump Station, Contract No. 5-51; and Rehabilitation of the "A° Street Pump Station, Contract No. 5-52,for an additional amount of$69,000, increasing the total amount not to exceed $4,878,382; and, (2)Approve a 1%contingency ($48,784). I. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with Earth Tech for support services during the construction, commissioning, and closeout phases of Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106. j. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with Malcolm Pimie for support services during the construction, commissioning, and closeout phases of Primary Treatment Rehabilitation Refurbishment, Job No. P2-80. k. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with Brown and Caldwell for support services during the construction, commissioning, and closeout phases of Plant No. 2 Primary Sludge Feed System, Job No. P2-91. I. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with Dudek and Associates, Inc. for support services during the construction, commissioning, and closeout phases of Rehabilitation of District Siphons, Contract No. 2-68. M. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with PBS&J Inc. for support services during the construction, commissioning, and closeout phases of Rehabilitation of Westside Pump Station, Contract No. 3-52. n. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with Spec Services, Inc. for support services during the construction, commissioning, and closeout phases of Gisler-Redhill Trunk Sewer Relocation, Phase 1 Construction, Contract No. 7-32-1. 0. MOVED, SECONDED AND DULY CARRIED: Authorize staff to commence negotiations with RBF Consulting for support services during the construction, commissioning, and closeout phases of Rehabilitation of College Avenue Pump Station, Contract No. 7-47. Non-Consent Calendar P. No items were considered. Minutes for Board Meeting 03/28/07 Page 7 11. ADMINISTRATION COMMITTEE (Finance. Human Resources. and Information Technology) Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order draft Administration Committee Minutes for the regular meeting held on March 14, 2007, to be filed. b. MOVED, SECONDED AND DULY CARRIED: (1)Approve the amended Joint Powers Agreement of the CSAC (California State Association of Counties) Excess Insurance Authority which supersedes the California Public Entities Insurance Authority (CPEIA)that provides the District's excess workers' compensation insurance coverage, in a form approved by General Counsel; and, (2)Approve the CSAC Excess Insurance Authority's amended Memorandum of Understanding for the Excess Workers' Compensation Program to incorporate non-county public entity membership in the program, in a form approved by General Counsel. Non-Consent Calendar e. Consideration of items deleted from Administration Committee Consent Calendar, if any. 12. GWR SYSTEM STEERING COMMITTEE (GWRSSC) GWRSSC Consent Calendar a. MOVED, SECONDED AND DULY CARRIED: Order Joint Groundwater Replenishment System Steering Committee Minutes for the meetings held on February 26, 2007, and March 12, 2007, to be filed. GWRSSC Non-Consent Calendar b. Consideration of items deleted from GWRSSC Consent Calendar, if any. NON CONSENT CALENDAR 13. MOVED, SECONDED AND DULY CARRIED: (a)Approve Plans and Specifications for Temporary Sludge Truck and Vector Truck Dump, Job No. FE06-02, on file at the office of the Clerk of the Board; (b) Receive and file bid tabulation; Minutes for Board Meeting 03/28/07 y Page 8 (c)Award a construction contract to Den Boer Engineering & Construction, Inc.for Temporary Sludge Truck and Vector Truck Dump, Job No. FE0"2, for an amount not to exceed $249,700, contingent upon receipt of a revised AQMD permit; and, (d)Approve a 50h contingency ($12,500). 14. MOVED, SECONDED AND DULY CARRIED: (a)Approve plans and specifications for Gisler-Redhill Trunk Sewer Relocation, Phase 1, Contract No. 7-32-1, on file at the office of the Clerk of the Board; (b)Approve Addendum No. 1 to the plans and specifications; (c) Receive and file bid tabulation and recommendation; (d)Award a construction contract to Ken Thompson, Inc. for the Gisler-Redhill Trunk Sewer Relocation, Phase 1, Contract No. 7-32-1, for a total amount not to exceed $688,670; and (a)Approve a 7.75%contingency($53,372). Director Winder abstained. 15. Chair Ferryman declared a recess of the Board of Directors of the Orange County Sanitation District at 7:50 p.m. . ...... ... ........ ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION ROLL CALL A regular meeting of the board of Directors of the Orange County Sanitation District Financing Corporation (OCSDFC)was called to order on March 28, 2007 at 7:50 p.m., in the District's Administrative Offices. The roll was called, and the Clerk of the Board reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X James M. Ferryman, Chair Bob Ooten X Doug Davert, Vice Chair Jim Palmer X Steve Anderson Tom Beamish X Charles Antos Gordon Shanks X Don Bankhead Sharon Quirk X Jon Dumitru Carolyn Cavecche X Steven Choi Sukhee Kang X Larry Crandall Gus Ayer Minutes for Board Meeting 03/28/07 Page 9 ACTIVE DIRECTORS ALTERNATE DIRECTORS X Bill Dalton Mark Rosen Richard Freschi X Brad Reese X Cathy Green Don Hansen X Phil Luebben Prakash Narain X Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore Ron Garcia X Joy Neugebauer A] Krippner X Chris Norby Janet Nguyen X Ken Parker Catherine Driscoll X David Shawver David Cadena X Harry Sidhu Lucille Kring X Sal Tinajero David Benavides X Constance Underhill Joseph Aguirre X Mark Waklman Ralph Rodriguez X Don Webb Leslie Daigle X Jim Winder John Anderson STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Penny Kyle, Clerk of the Board; Nick Arhontes; Bret Colson; Bob Ghirelli; Jim Herberg; Ed Torres; Lorenzo Tyner; Ulia Kovac; Bob Chenowith; Michael Gold; Juanita Skillman; Paula Zeller OTHERS PRESENT: Bred Hogin, General Counsel; Bob Ooten; Ron Garcia b. MOVED, SECONDED AND DULY CARRIED: The Chair ordered the minutes of the regular meeting held February 22, 2006 be deemed approved as written. Directors Choi, Dumitru, Green, Marshall, and Underhill abstained. C. Lorenzo Tyner, Director of Finance, reported that the Financing Corporation Board is required to meet annually and reported that the corporation activities were similar and consistent with those of the previous year except that additional debt will not be issued until 2007108. ADJOURNMENT: The Chair declared the meeting of the Orange County Sanitation District Financing Corporation adjourned at 7:52 p.m. RECONVENE IN REGULAR SESSION: The Board of Directors of the Orange County Sanitation District reconvened in regular session at 7:52 p.m. Minutes for Board Meeting ' 03/28/07 Page 10 V 19. CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a):The Board convened in closed session at 7:52 p.m. pursuant to Government Code Section 54956.9(a). Confidential minutes of the Closed Session held by the Board of Directors have been prepared in accordance with California Government Code Section 54957.2 and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION:The Board reconvened in regular session at 7:55 p.m. 20. MOVED, SECONDED AND DULY CARRIED: (a) Ratify use of General Manager's emergency purchasing authority, Resolution No. OCSD 07-04, authorizing the General Manager to issue a purchase order for Clarifier P Sludge Collector Mechanism, Job No. FE06-14, for emergency repairs,for a total amount not to exceed $267,814; and, (b) Approve a contingency of 24.3% ($65,000). 21. Chair Ferryman requested that staff agendize revising Resolution No. 07-03 changing the Steering Committee meeting start time to 5:30 p.m., and the monthly Board of Directors meeting to start at 6:30 p.m. 22. Future Meeting Date: The next Board of Directors regular meeting is scheduled for April 25, 2007, at 6:30 p.m. ADJOURNMENT: The Chair declared the meeting adjourned at 7:59 p.m. in memory of Fred Harper,former General Manager of the Orange County Sanitation District. Penny M. 08 Clerk of the Board Orange County Sanitation District Claims Paid From 0=1107 to 0VIS107 Warrant No. Vendor Amount Description Accounts Payable-Warrants 87988 CompuCam Systems.Inc. $ 138,501.79 Microsoft Enterprise Uc rase Agreement 87989 El Du Pam De Nemoub and Company 82,449.00 Painting Malnt.Services MO 422-98 87990 Earth Tech,Inc. 201,420.15 Professional Services Pt-106,Pt-100&3.58 87991 Kemlra Water Solulions,Inc. 124.917.97 Ferric Chloride 87992 Lee&Ro,Inc. 54,806.57 Professional Services 6-49.561&5-52 87993 Lewis&Zimmerman Associates,Inc. 48,303.93 Engineering Services P2-91 87994 Malcolm Parts,Inc. 45,T34A9 Professional Services F10&11.28 87995 Meti-ife Life Insurance Company 37,144.66 Group Life,Manager Addl.Life.Short&Long-Term Disability&Optional Term Life Ins. 87996 Orange County Water District 63,874.69 GAP Water 87997 Pacific Investment Management Co. 107,052.65 Investment Management Service Res.9697 87998 Persons Water&Infrastructure,Inc. 25,295.79 Prafessianal Services J-35-1 87998 PBS&J 75.562.40 Professional Services 3-52 88000 Pioneer Americas,Inc. 242.698.32 Sodium Hypochlome 88001 Polydyne,Inc. 68,883.11 Cationic Polymer MO 3-11-92 88002 Synagro West,Inc. 444,347.60 Residuals Removal MO 3.29-95 88003 Tula Ranc111Magan Farms 230,908.10 Residuals Removal MO 3-29-05 88004 United Pumping Service 386Dg.99 Professional Services P1-37 88005 US Peroxide,L.L.C. 110:665.08 Odor&Corrosion Control Treatment for Call.Sys.;Hydrogen Pamxlde 8 Ferrous Chloride 88006 Helh Electric,Ina 34.530.39 Construclion SP-61 88067 J F Shea ConstrucHon,Inc. 6,705,318.10 Construction P266 68008 J R FIIanc Construction 1,130,475.60 Construction P762 88009 Margate Construction,Inc. 226,853.00 Construction PI-37 88010 Union Bank of Amedca Escrow, 745.035.35 Construction P2�86,Retention 88011 J F Shea Construcllon,Inc. 1T6,488.20 Construction P2-74 88012 J F Shea Construction,Inc. 367,124.65 Construction J-77 88013 Absolute Standards,Ina 186.00 Lab Parts&Supplies 88014 Accounting Options,Inc. 2,124.00 Temporary Employment Services 88015 AccuSleMerd 245.00 Lab Parts&Supplies 88016 Acoplan Technical Company 1.026.29 Electrical Parts&Supplies 88017 Adamson Industries 365.28 Lab Paris&Supplies 88018 Alrgas Safety,Inc. 867.32 SaferySupplles 88019 Airgas-Wes] 9.3D Demurrage 88020 AKM Consulting Engineers 11,250.00 Professional Services-Pad-Time Dig Alert Technician 88021 ALFA-LAVAL INC. 2,302.60 Mechanical Pads&Supplies 88022 Alhambra Foundry Co.,Ltd. 2,295.08 Manhole Frames&Covers a8023 Alen Instruments&Supplies 950.00 Software-ARCPAD 88024 Ails-Rabbi.,Inc 122.44 Instrument Supplies BM25 American Air Flller,Inc. 2,272.41 Air Filters BM26 American Airlines 6,577.64 Travel Services 88027 American Seals West 632.85 Mechanical Pads&Supplies 88028 American Society of Civil Engineers 404.00 Membership 88029 Applied Industrial Technology 80.27 Mechanical Parts&Supplies 88030 Archie Ivy,Inc. 4,245.00 Pavement Marking-Plant 1 Main Entrance&Waste Hauler Area 88031 Argent Chemical Labs,Inc. 153.28 Lab Parts&Supplies 88032 AT&T CalifomlaR&CI 22.99 Telephone Service 88033 Atkinson,Andelson,Lays,Rudd&Ruud 17.D9D.44 Legal Services 88034 Awards&Trophies Company 19.48 Awards&Plaques 88035 BALMAC,Inc. 9D7.71 Vibration Monitor&Transmitters H:WtpAs £XCELAIN22aUPSNsf E1W1me Pak1 RMoMGDMimf POMRepoa-02-15-07 EKHISITA Page ge iaf6 3114Y1007 Claim Paid From 0=1107 to 02115fW Warrant No. Vendor Amount Description 88036 Basic Chemical Solullons,L.L.C. 16.203.84 Sodium Bisulfile&Sodium Hydroxide 88037 BC Wide Rope&Rigging 478.84 Mechanical Pads&Supplies 88038 Slovene"Vdek,Inc. 594.00 Lab Pads,Supplies&Service 88039 Black&Veatch Corporation 11,565.44 Engineering Services J-77 88M Brickley Environmental 150.00 Repair&Maintenance Sew.-Control Center Roof Samples for Asbestos Testing SBU41 Brown&Caldwell 16.564.79 Professional Services PI-37 88042 Burke Engineering Co. 3.302.37 Instrument Pads&Supplies 88043 California Recreation Company 2,550.09 Boat Slip Rental Fees for Ocean Monitoring Vessel Nerissa 88044 California Relocation Services,Inc. 337.50 Office Files MovingfRelocation Services 8a045 Cameron Compression Systems 4,185.72 Mechanical Pads&Supplies 88046 Caplugs Niagara 1,416.63 Mechanical Pads&Supplies 88047 Cad Warren&Go. 300.00 Insurance Claims Administrator 88048 Cingular Wireless Aidime 290.92 Wireless Services 88049 City of Newport Beach 485.36 Water Use 88050 CMAA 85.00 Training Registration (Construction Management Association of America) BB051 Coast Rubber Stamp,Mfg. 38,79 Office Supplies 88052 Cote Parmer Instrument Co. 513.69 Lab Pads&Supplies 88053 Computer Proteclion Technology,Inc. 9,852.W Computer Batteries Maintenance Agreement 88054 Consolidated Ekddcal Distributors,Inc. 1,974.39 Electrical Pans&Supplies 88055 Consumers Pipe&Supply CO. 3.855.26 Plumbing Parts&Supplies 88056 Control Factors Seattle,Inc. 1.040.00 Filler 88057 Corpoate Express 2,050.02 Office Supplies 88058 County Wholesale Electric Co. 677.82 Electrical Pads&Supplies 88059 CR&R,Inc. 1.260.00 Container Rentals&Waste Disposal Service 88060 Crane Veyor Corp. 3.483.16 Maintenance Agreement-Obly.Inspections,Cedifcalion&Quadrennial Testing B6081 CSAC Excess Insurance ANhonty 3,182.64 Employee Assistance Program 88062 CSUF Foundation 13,750.25 Membership-Center for Demogmphlc Research 88063 Cummins Allison Corp. 428.64 Accounting Equipment Maint.Agreement 88064 CWEA Annual Conference 1,175.00 Training Registration(California Water Environment Association) BBD65 D.H.Charles Engineering,Ix. 1,500.00 Engineering Services-NDdhbound Maintenance Road 88066 David's Tree Service 6,725.00 Tree Malnt.Service 88067 Davis Inotek Instruments 195.00 Instrument Pads&Supplies 88068 DC Frosl Associates,Inc. 6.365.87 Mechanical Pans&Supplies 88069 Denting,Water Controls 558.84 Mechanical Parts&Supplies 88070 Etectro Sensors,Inc. 147.04 Electrical Pads&Supplies 88071 Employee Benefits Specialists,Inc. 639.47 Reimbursed Prepaid Employee Medical&Dependent Care 88072 Enchanter,Inc. 5.700.00 Ocean Monitoring&Ouifall Inspection&Maintenance 88073 ESRI,Inc. 1,425.00 Training Registration 88074 Evring Irrigation Industrial 2,246.59 Lar dscape Irrigation Pans&Supplies 88075 Fedex Corporation 62.30 Freight Services 88076 Fl Ow Scientific 5,496.08 Lab Pads&Supplies 80077 Fleming Environmental,Inc. 4,941.78 Annual Monitor Certification 88078 Homes Products,Inc. 788.51 Mechanical Parts&Supplies M79 Franklin Covey 31.30 Office Supplies 88080 Franklin Covey Co. 373.45 Training Registration 88081 FM Electronics 35.75 Computer Supplies 88082 Fuller Truck Accessorles 86.20 Truck Parts&Supplies 88083 City of Fullerton 42.36 Water Use 88084 Garden Grove Sanitary District 181.97 Water Use H xftm iE%CELdWea M5X Mtslmr Paid ReppmZaOTClaM1m P.M RepM-Oi-1"? EXHIBITA "IMC Page 2 of an.nos?, ,�� Clalme Paid From 02XV07 to 02111V07 Warrant No. Vendor Amount Description 88085 Garrett Callahan Company 2.256.93 Chemicals 88086 Governmental Accounting Standards Board 199.40 Publication 88087 Gates Fiberglass Installers 1.523.25 Fiberglass Repair 88088 General Binding Corporation 146.52 Lab Paris&Supplies 88089 Getinge Castle 2,198.60 Lab Pane&Supplies 88090 Global Awards,Inc. 1,739.26 Engraved Asset Tags 88091 GOTM Enlerprlses DBA property Care Services 1,320.00 Sweaping Services 88092 Grainger,Inc. 3,322.00 Mechanical&Electrical Parts,Supplies&Teals 88093 Hach clo Forlon Industries 11,133.53 Lab Parts&Supplies&Repairs 88094 Harold Primrose Ice 70.00 ice For Samples 88095 Herrington Industrial Plastics.Inc. 1,658.03 Mechanical Pads&Supplies 88095 Hello Direct,Inc. 770.00 Industrial Cordless Phones 80097 HI Standard Automotive 8.08 Automotive Pads&Supplies 88095 Hill Brothers 11,332.41 Chemicals-Odor&Corrosion Control-Newport Trunkline SM99 Hills Boat Service.Inc. 915.10 Oil&Filler Charge-Ocean Mordluring Vessel Harass 88100 Home Depot 58671 Misc.Repair&Maintenance Material 88101 Horizon Technology 292.84 Lab Parts&Supplies 88102 Hub Auto Supply 645.38 Vehicle Pads&Supplies 88103 City of Huntington Beach 38.03 Water Use 88104 IDEXX 2,700.22 Lab Parts&Supplies 88105 HIS 64.19 Publication 88108 Industrial Distribution Group 1,006.13 Mechanical Peels,Supplies,Locks&Tools 88107 Inorganic Ventures,Inc. 41.72 Lab Pads&Supplies 88108 Integrity Wireless 160.28 Cell Phone Accessories 88109 Interstate Batteries of Cal Coast 1,027.18 Batteries for Vehicles&Cads 88110 Irvine Pipe&Supply 106.74 Valves 88111 Irvine Ranch Water District 7.66 Water Use 88112 Jays Catering 501.75 Meeting Expenses 85113 Johnstone Supply 830.91 Mechanical Pads&Supplies 88114 Kforce,Inc. 1.544.40 Temporary Employment Services 88115 Kleshader,Inc. 2,859.00 Solis,Concrete&Other Materials Testing 88116 Lab Safety Supply,Inc. 82.22 Lab Pads&Supplies 88117 Lohman Educalion Services 170.00 Training Registration 88118 M.J.Solid!and Associates,Inc. 11.673.82 Temporary Employment Services 88119 Mainline Information Systems 21.349.97 Software Subscription&Support-AS/400 88120 Mandic Motors 206.00 ToWng Services 88121 Marking Services,Inc. 463.51 Traffic Signs 98122 MasslAutual Michel Financial Group 286.59 Executive Disability Plan Premium 88123 Matrix Service Corp. 23,600.00 Repair&Mass.Services-Low Pressure Gas Holder Leak&Pressure Testing 88124 MBC Applied Environmental Sciiences 2,957.21 Regional Ocean Monitoring-Aerial Survey of Kelp Beds from Nevmon Harbor to Ventura Co. 88126 McMaster Can Supply Co. 2,422.96 Mechanical Pans,Supplies&Toole 88126 Mellon Trull 20.415.11 Investment Custodian Bank 88127 Mkre Safety Appliances Company 2,141,83 Instrument Paris&Supplies 88128 Motion Industries,Inc. 591.21 Mechanical Pads&Supplies 88129 National Plant Services,Inc. 1,080.00 Repair&Malnt.Services-Unplug Overhead Line 68130 Neutron Products.Inc. 5,012.55 Anionic Polymer 88131 New Pig 162.89 Spill Absorbed Materials 88132 Navel Electronics 70.02 Instrument Supplies 86133 The Noon Companies 698.88 Mall Delivery Service H.WepakmWE%CELMN IDAPSHARMI.ITr Pak Rpmd00]1CIaFro Pak Rapid-0I.1"7 EXHIBIT A 0N2101 Page 3 of 8 3114=7 Claims Paid From 02/01/07 to 02/16107 Warned No. Vendor Amount Description 88134 OCB Reprographics 150.87 Printing Service-MO 1Q6/00 88135 Office Depot Business Services Division 364.57 Office Supplies 88136 Omega Industrial Supply.Inc. 1,131.17 Janitorial Supplies 88137 Onnource Distributors,Inc. 6.705.79 Electrical Paris&Supplies 88136 Oxygen Service Company 959.93 Specialty Gases or Lab Paris&Supplies 88139 Pacific Mechanical Supply 148.17 Plumbing Supplies 88140 Penthouse Tire,Inc. 543.35 Time 88141 Patriot Video Productions 521.13 Video Services for Diversity Training 88142 PCG Industries 350.00 Repair&Maintenance Services 88143 PL Hawn Company,Inc. 69.63 Electrical Pacts&Supplies 88144 Pre-Pakl Legal Services.Inc. 835.96 Employee Voluntary Legal Service Insurance Premium 88145 Prinleguy 1.387.74 Printer Maintenance U146 Prism Business Media 1,525.DD Training Registration 88147 Prudential Overall Supply 3.162.43 Uniforms&Related Articles 88148 Public Resources Advisory Group 2. 00.00 Financial Advisory Services 88149 0 Alr Calif.-Div.of Pump Engineering 4.841.22 Air,Oil&Separator Fillers and Oil Coolants 88150 R L Abbott&Associates 3.000.00 Kern County Bbsolids Consulting Services 88151 Reliastar 8,537.79 Employee Basic Life&Managers Insurance Premiums 88152 Reslek Corp. 521.80 Lab Parts&Supplies 88153 AM Automation do AM Controls 115.36 Instrument Supplies 88154 Rockwell Engineering&Equipment Co. 13,329.75 Pump&Pump Pads&Supplies 88155 RPM Electric Molars 2,460.00 Repair&Mainl.Services-NWL Reactor Line 88156 ATM Lighting&Electronics,Inc. 1,185.57 Electrical Pads&Supplies 88157 Safeby-Kken 426.80 Pads,Washer Lease,&Service 88158 Science Application International 21210.09 Ocean Monil&riw MO&&94 88159 Shamrock Supply Co.,Inc. 702.42 Mechanical Supplies 88160 Shunluck Sales&Engir an iig 602.43 Mechanical Pans&Supplies 88161 Sigma Aldrich,Inc. 323.06 Lab Pads&Supplies 88162 Society for Human Resource Management 1,215.00 Training Registration 88163 SoBdmice Corp. 1.453.01 So0ware 88164 South Mooring Company 799.04 Repair&Maintenance Services-Net Mooring 88165 Southern California Edison 18.555.75 Professional Services&52 86166 Southern Counties Lubricants 2.053.00 Oil 88167 Spec Services,Inc. 2,098.00 Engineering Services 7-32-1 88168 Shirley Steamer International,Inc. 750.00 Carpet Cleaning Services 86169 Summit Steel 2,627.07 Metal 88170 Sunset Ford 64.09 Vehicle Paris&Service 88171 Sunset Industrial Pan 76.93 Mechanical Pen&Supplies 88172 By Melsom Service,Inc 180.00 Lab Calibration Service 88173 Tasty Pacific Fire Protection 817.00 Repair&Mass.Services-Fire Sprinkler System Line Leak 88174 Terminix International 1.280.00 Pest Control 88175 Testy Controls,Inc. 360.00 Repair&Maintenance Services-Pump Controller 86176 Thomas Scientific 2.326.00 lab Parts&Supplies 88177 Thompson Industrial Suppy,Inc. 2.015.34 Mechanical Pan&Supplies 88178 Times Community News 75.00 Notices&Ads 88179 Titan Equipment Services,Inc. 1213.66 Repair&Maintenance Services-SMOG Tesfing Machine 88180 Traffic Control Service,Inc. 301.70 Traffic Safety Supplies 88181 Transcal 1,235.93 Instrument Supplies 88182 Tmmco Incorporated 2,555.00 Repair&Maintenance Services-Gas Compressors XWpNMEXCEL U1Nt]PAPSHME1CItlme PW RiMMMU 0TCIebm Pad ROOM-0P-15L1 EXHIBIT wxlow< Page 4 of 8 WMW1 Claims Pam From 02181I07 m 02I11007 Warrant No. Vendor Amount Description 88183 Truck&Auto Supply.Inc. 2,819.29 Automotive Pads&Supplies 88184 ULine 483.55 Truck Paris&Supplies 88185 Ultra Scientific 726.65 Lab Pads&Supplies 88186 United Slates Plastic Corp. 24.74 Lab Pads&Supplies 88187 Vapex,Inc. 1.762.50 Instrument Pads&Supplies 88188 Venzon California 83.56 Telephone Services 88189 Vemes Plumbing 4.840.00 Service Contract-Testing&Died.Backfiow Devices at Pits. 1 &2&Pump Ste. 88190 Village Nonsense 51.07 Landscaping Supplies 88491 Vortex Corp. 1.249.96 Preventative Maintenance-(52)Roll-Up Doors at Plant 2 88192 VWR Scientific Products 8.857.10 Lab Pads&Supplies 08193 Wansile Automation 181.31 Mechanical Pads&Supplies 88194 Waslawaler Technology Trainers 2.240.00 Training Registration 88195 Waters Corporation 1,287.11 Lab Pans&Supplies 88196 Waxle Sanitary Supply 65.94 Janitorial Supplies 38197 Wedeco Charade 183.87 Imlmment Pans&Supplies 88198 WEF 827.00 Membership-Water Environment Federation 88199 West Life Supply Company,Inc. 270.42 Electrical Pans&Supplies 882UO WoddalWork 226.00 Membership 88201 Xerox Corp.OMNI 528.00 Fax Machine Maintenance 88202 ValelChose Materiels Handling,Inc. 432.45 Electric Can Pads 88203 Michael J.Barnett 195.00 MCMIng/Treining Expense Reimbursement 882D4 Jude Brooks 36.00 Meeling/Tralning Expense Reimbursement 88205 Marc A.Brown 120.00 MeetingRralning Expense Reimbursement 88206 William D.Cassidy 75.15 MeetingRralning Expense Reimbursement 80207 Robert P.Ghirelll 849.32 MendrgRraming Expense Reimbursement 88208 Hamel S.Khubtall 274.65 MeetingRralning Expense Reimbursement 88209 Pamela A.Koester 192.00 MeetingRralning Expense Reimbursement 88210 Vladlmlr A.Kogan 399.66 MeetingRralning Extreme Reimbursement 88211 Deborah L.Undel 56.00 MeetingRralning Expense Reimbursement 88212 Christina M.Thomas 666.24 MeetllgfTraining Expense Reimbursement 88213 Mark A.Tomko 75.00 Meefing/Traming Expense Reimbursement 88214 Mark S.Willson 61.00 MeetingRraining Expense Reimbursement 88215 Paula A.Zeller 68925 Meethg/Training Expense Reimbursement 88216 Union Bank of California 3,836.71 Construction SP-81,Retention 85217 Entertainment Publicatlons,Inc. 56.00 Reimbursed Employee Activllles 88218 Orange County Sanitation District 5,a74.14 Worker's Comp.Reimb. 88219 BARBS 750.00 Training Registration 88220 WEF 192.00 Membeship-Water Environment Federation 88221 American Express 31,331.90 Purchasing Cam Program,Misr.Supplies&Services 88222 Carolina Fuel Systems,Inc. 31,250.91 Fuel Card Program-District Vehicles&Monitoring Vessel 88223 HDR Engineering,Inc. 75.027.55 Professional Services Pl-82 98224 Hill Brothers 29,829.65 Chemicals-Odor&Corr0sion Control-Newporl TrunMine 88225 Malcolm Finite,Inc. 175.943.11 Professional Services P2-80 88226 Southern California Edison 37231.88 Power 88227 Simon Property Group,L.L.P. 39,661.08 Reconciliation User Fee Refund Program 88228 American Amines 6,710.54 Travel Services 88229 American Society of Civil Engineers 260.00 Membership 88230 ARBIPERP-Air Resources Board 2.578.00 Permit Fee 88231 AT&T Universal Biller 2.234.42 Telephone Service H:Mrp0a XCEL.d Mm S1 ECHImc Pek RelerMamiakies Pao Rrywn-02-1547 EXHIBITA me2l0ffic Page 5 of 8 3114=07 Claims Paid From 0=107 to OW15107 warrant No. Vendor Amount Description 882M AT&T CalifomlaNCI 1,202.72 Telephone Service 88233 American Telephone&Telegraph Corp. 47.34 Telephone Service 88234 California Dept.of Child Support 1.240.12 Wage Gamiidmenl 88235 City of Wesbninster 217.38 Water Use 88236 Columbia Analytical Services,Inc. 600.00 Analysis of Wastewater.Industrial Wastevraler&Biosotids 58237 Comorale Express 281.46 Office Supplies BU38 CWEA Annual Conference 810.00 Training Registration(California Water Environment Association) 88239 CWEA Membership 220.00 Membership(Calif.Water Environment Assoc.) 88240 Dainds Tree Service 2.200.00 Tree Mainl.Service BB241 Davis lnoteb Instruments 1.106.50 Instrument Calibration Services 88242 Document Imaging Technologies 9.344.29 Scanning to Elecirortic Media Services-Time Sheets&Payroll Records 88243 Eagle Protection of California 275.00 Bldg.Security Alarm Services-No.County Yard 882" Employee Benefits Specialists.Inc. 9.460.79 Reimbursed Prepaid Employee Medical&Dependent Care 88245 Energy Environmental Solutions.Inc. 20,000.00 Engineering Services-Air Quality Monitoring 88246 Environmental Compliance Inspection Svice. 1,620.00 Professional Services-Fals.Oil Grease(FOG Program)Inspections 88247 FEDIX Corporation 1.023.15 Freight Services 88248 Franchise Tax Board 90.00 Wage Gemtshment 88249 Frani in Covey 51.13 Office Supplies 88250 Pryor Seminam/ areer Track 149.00 Training Registration 88261 Home Depot 369.95 Misc.Repair&Maintenance Material 88252 ICC International Code County 208.49 Publication 88253 Indiana Child Support Bureau 290.00 Wage Garnishment 88254 Internal Revenue Service 320.00 Wage Garnishment 88255 Intl.Union of Opef.Eng.AFL CIO Local 501 4.655.15 Dues Deduction 88256 Court Order 150.00 Wage Garnishment 88257 Lomman Education Services 349.00 Training Registration 88258 Court Order 225.00 Wage Garnishment 88259 MM Americas,Inc. 9,185.W Professional Services P2-74 88260 National Bond&Trust 2,858.67 U.S.Savings Bonds Payroll Deductions 80261 National Water Research institute 2.500.00 Sponsorship-Children's'Water Education Festival 88262 Nexlel Communication 977.66 Air lime 88263 OCEA 610.75 Dues Deduction 88266 Office Depot Business Services Division 2.146.88 Office Supplies 88265 Orange County Vector Control District 653.87 Pest Control 88266 PCS Express,Inc. 471.78 Courier Service 88267 Peace Officers Counal of CA 1.593.00 Dues Deduction,Supervisors&Professionals 88268 Port Supply 106.67 Boal Supplies-Nerssa 88269 Precomr,Inc. 67.97 Lab Paris&Supplies 88270 Reid Metal Finishing 05.00 Reconciliation User Fee Refund Program 88271 Roto Roofer N00011 650.00 Repair&Maintenance Services-Garbage Disposal at Control Center Lunch Room 88272 Royale Cleaners 6.00 Dry Cleaning Services 88273 Samon Engineering.In. 7,475.W Construction-Manhole Rehab.PmjeC&Confined Space EnirylDewater Center Influent Well 88274 SCAP 110.00 Meeting Registration-Div.610(Em.Compliance Services) 88275 Scott&Wflu ead 2.520.75 Legal Services-Labor,Employee Relations&Representation 88276 Slemen Water Technologies Corp. 606.37 Service Agreement-DI Water Systems al Plants 1&2 88277 Spec Services,Inc. 2.869.25 Engineering Services J-33-1 88278 SWRCB Aeeoun ing Office 1.185.00 NPDES Permit for DeMtnimus Discharges 88279 Temtinu International 295.00 Pest Control 88280 TeetNnerica Ontario 450.00 Analysis of Biosolids N'WppN�E%CEL.tlINZ0NP5HME\Galnu Pest RepxN00rC1rIim PM eeryrn-02-15-07 E%HIBITA rm41Mc Page 6 of 8 vM.07 e a Claims Paid From 02/01107 to 0211M07 Warrant No. Vendor Amount Description 88281 Thomas Bros Maps 104.85 Thomas Bros.Maps 86282 Times Community News 187.50 Nolices&Ads 88283 TMV Syslems Engineering,Inc. 4,855.25 SOBware Maintenance-SCADA 88284 Tony's Lock&Sale Service&Sales 5.39 Looks&Keys 88286 Traffic Control Service,Inc. 90.82 Traffic Safely Supplies 88286 United Pacific Services,Inc. 1,100.00 Tree/Stump Removal and Landscape Repairs 88287 United Way 50.00 Employee Contributions 88288 Ved2on Celitemla 89.76 Telephone Services 88289 Vemes Plumbing 4.900.00 Repair B Maintenance Services-Lab Sink Water Lines 88290 Waslewater Technology Trainers 2.735.00 Training Registration 88291 WEF 384.00 Membership-Water Environment Federation 88282 WOI(Water Quality,Inc.) 500.00 Training Registration 88293 Court Order 597.50 Wage Garnishment 88294 Zee Medical 1,106.11 First AM Supplies 88295 James E.Colston 100.76 Meeting/Training Expense Reimbursemenl B0296 James R.Davidson 58.00 MeetinglTralnirlg Expense Reimbursemenl 88297 Anne Made Feery g8.U0 MeeltnglTralning Expense Reimbursement 88298 Janine Fitter 322.02 Meeling/Tralning Expense Reimbursement 88299 Darius Great 171.00 Meeling7Tmining Expense Reimbursement 88300 Michael I.Gold 265.14 MeelinglTrelning Expense Reimbursement 88301 Jay S.Kaum 130.07 MeelinglTrelning Expense Reimbursement 88302 Vladhnir A,Kogan 458.39 MeelinglTraning Expense Reimbur eamenl 88303 James C.Munlns 2,073.10 MeelinglTrairarg Expense Reimbursement 88304 Donald W.Ragan 1,248.99 Meeting(Tralnig Expense Reimbursement 88305 Edward M.Tones 1,111.06 Meeting/Training Expense Rekobursement 88306 Marco Polo S.Velesce 1,391.53 MeelinglTrelning Expense Reimbursement 88307 Mark S.Whom 898.95 Meeling/Traning Expense Reimbursement SS308 David M.Yager 107.00 MeelingRrelMng Expense Reimbursement 88309 Arnel Commercial Properies 2.541.96 Reconciliation User Fee Refund Program 88310 Apt Electronics 554.60 Reconciliation User Fee Refund Program 68311 Bryan Industrial Propentes 997.10 Reconciliation User Fee Refund Program 68312 Robert R.Suettell 427.07 Reconciliation User Fee Refund Program 66313 Burson Family 1,080.44 Reconciliation User Fee Refund Program 88314 More J.Buffer 1.378.39 Reconciliation User Fee Refund Program 38315 County of Orange Auditor Controller 590.00 Administrative Fee-Adjustments to Property Tex Bills 88316 County Of Orange Auditor Controller 675.00 Adminlslrelive Fee-Adjustments to Property Tex Bills 88317 Reason Campos 35BA7 Reconciliation User Fee Refund Program 88318 Goodman Properties,Lie 222.17 Reconciliation User Fee Refund Program 88319 Rose Hullerde 2,746.18 Reconciliation User Fee Refund Program 88320 Hunt Survives Trust 1,037A2 Reconciliation User Fee Refund Program 88321 Koko,Fong Jul 794.82 Reconciliation User Fee Refund Program 88322 Vernon Monme 723.54 Reconciliation User Fee Refund Program 88323 Newport Federal 595.67 Reconciliation User Fee Refund Program 88324 Outran Kim Nguyen 2.257.50 Reconciliation User Fee Refund Program 88325 Nodh Orange Industrial Perk 3,02lA4 Reconciliation User Fee Rehmtl Program 80326 Richardson Separate Property Trust 816.28 Reconciliation User Fee Refund Program 88327 Phillip B.Scarborough 434.43 Reconciliation User Fee Refund Program 88328 South Coast Athletic Club,Inc. 763.97 Reconciliation User Fee Refund Program 88328 BARBS 1.126.00 Training Registration HWepMfTE%CELAW20APSfarnXitIme Paid aepmat00TCMIme Paid Ropad-DbIM7 EXHIBITA Page 0nlllNlc g 1I412007 Claims Paid From O VOt/07 to 02/16107 Warrant No. Vendor Amount Description 88330 Target Corporation 8,735.20 Recondllallon User Fee Refund Program 05331 Worland Investments Co. 4,112.25 Reconciliation User Fee Refund Program 88332 Westwood Financial Corp. 8,9D0.34 Reconciliation User Fee Refund Program Total Accounts Payable-Warrants 12. Payroll Disburaamer, 36138 - 36141 Employee Paychecks It 3,515.55 Interim Payroll-Termination&Voids 02/01/07 36142 - 36226 Employee Paychecks 120,249.74 Biweekly Psymn OW14/07 36227 - 36236 Employee Paychecks 83,618.94 Interim Payroll-Termination,Rebos,IDEA 02/13107 136823 .137390 Direct Deposit Statements 1,140,459.58 Biweekly Payr0ll 02M4107 Total Payroll Disbursements S 7,843.81 Wire Transfer Paymenra OCSD Payroll Taxes 8 Contributions $ 657.879.24 Biweekly Payroll 02/14m7 Deutsche Bank 492,441,47 Series 2006 Cerificales al Paricipalion January Interest Payment Bear Steams Co.,Inc. 25,205.48 Series 2006 Certificates of Participation Remarketing Fee(f0101106-12(31/08) Depfa Bank 50,071.90 Series 2005 Certificates of Padicipalion Commitment Fee(11101/06-01131107) Lloyds TSB Bank Plc $7.964.07 Series 2001 COPS Standby Purchase Agreement Commitment Fee(11101/08-O2(101/07) Bank of New York 29,530.94 Series 1993 Refunding Certificates of Parilcipali0n January Interest Payment Chase Manhattan Bank 68.313.73 Series 2000 Refunding COPS Standby Purchase Agreement Commitment Fiat(11/01/06-01/31AM Societe Generale.NY Branch 57 883.77 Sense 1993 Refunding COPS Standby Letter of Credit Commission(08101/OB-01/31/07) Total Wire Transfer Payments AM 61 Total Claims Paid 02/01/07-02116107 —S1S7i1 469 04 H:WePr�aPsEXCEL duQm SHAROCnirm Ps Repinadd 30M Paid Resort-of-1s01 EXHIBITA myttox Page 8 of 8 wi4 Claims Paid From OV16107 to OV28107 y Warrant No. Vendor Amount Description Accounts Payable-Warren 88333 Camp Dresser&Molise.Inc. & 261.208.66 Engineering Service Pt-97&J47 88334 Earth Tech.Inc. 193.540.33 Professional Services Pi-106&1-24 88336 IPMC do Parsons 1,086,083.00 Engineering Services-Integrated ProgramlProjecl Management,Temporary SlafBng,Mall.&Supplies 81 Kendra WOW Solutions 89,220.03 Ferric Chloride 88337 Lee&Re.Inc. 44,319.63 Professional Services 540,5.51&5-52 8833E Malcolm Fins.Inc. 96,505.34 Professional Services 5-50 88339 Orange County Water District 7,474,081.39 Joint GWRS Project J-35 88340 PBS&J 78,960.55 Proessional Services 3-52 88341 Pioneer Americas,Inc. 91,030.81 Fenic Chloride 813 42 Peydyne.Inc. 26,893.19 Cationic Polymer MO 3-11-92 88343 Southern California Edson 363.815.81 Power 88344 Tule RandnMagan Farms 220,222.28 Residuals Removal MO 3.29-95 88345 US Peroxide.L.L.C. 45.975.19 Odor&Corrosion Control Treatment for Coll.Sys.;Hydrogen Peroxide&Ferrous Chloride 88346 Amemn international 947,293.06 Constroctlen 1-24P 88347 Barnard Solebnche Joint Venture 2,045,828.70 Construction l-10A 88348 Kieml Pacific Co. 263,579.00 Construction"I&5-52 88349 Steve P.Rados,Inc. 497,729.64 Construction 1.24 88350 Union Bank of California 55,303.30 Construction 1.24,Retention 88351 A W Chesterton 5.318.08 Mechanical Pads&Supplies B8352 Abel Pumps,Inc. 1,B06A7 Mechanical Paris&Supplies 88353 Accounting Option,Inc. 3.746.50 Temporary Employment Services 88354 ACCU Sludge 728.83 Lab Pads&Supplies W355 AccuSbndad 95.87 Lab Part&Supplies 88358 ACE Ergonomics 750.00 Professional Services-Ergonomic Workstation Evaluations 88357 Advance Business Graphics 2.180.95 Printing Services-Waslehauler Forms 88358 Advanced Cooling Technologies M28 Electrical Pads&Supplies 88359 Advanced Infrastructure Technologies 474.10 Mechanical Parts&Supplies 88350 Agllent Technologies,Inc. 1,355.87 Lab Pads&Supplies 88361 Alrgas Safety,Inc 4,614.90 Safety Supplies 88362 Allied Electronics,Inc. 595.14 Electrical Pads&Supplies 88363 American Concrete Institute 208.00 Membership 88364 API Fund for Payroll Education 1,167.00 Training Registration 88365 American Seals West 479.07 Mechanical Pads&Supplies 88366 AppleOne Employment Service 9,396.44 Temporary Employment Services 88W7 Applied Industrial Technology 9,822.11 Motor and Mectur cal Paris&Supplies 88368 Aquatic Bioassay and Consulting Labs,Inc. 785.W Whole Effluent Toxicity Testing 88369 Arch Wireless Operating Company.Inc. 907.50 Wireless Services 88370 Arnold Ontes Design,Inc. 9,999.60 Professional Services-200MO Annual Report 88371 Ashbrook Corporation 4,453.49 Fiber Press Paris 68372 Ashbrook Simon Hartley Operations 20.805.08 Hydraulic Assemblies,Vertical Wedges&Other Mechanical Pads&Supplies 88373 AWSI 236.00 Department of Transportation Program Management&Testing 88374 Samslead Ttwmolyne 29.33 Miscellaneous Tools If Supplies 88375 Basic Chemical Solutions,L.L.C. 9,806.34 Sodium Bisulffe&Sodium Hydroxide 88376 Battery Specialties 241.79 Batteries 88377 Bauer Compresawe 4,898.92 Air Systems Parts&Supplies-SCBA 88378 BOMlegistix L.L.C. 5,075.00 Prof.Sam.-Preparation of Interim Arbitrage Rebale Report Re 1993 Series COPS 88378 Bush&Associates,Inc. 20,892.00 Professional Services 741&5482 88380 County of Orange 1,684.37 Melnl.Agreement-RepairAnsta8a6on of Base,Handheld&Vehicle Rados ON81 Calffomla Deb]and Investment Advisory Comm. 400.00 Training Registration H WepNeNE%CB-dW32WSHPABCWms PAJ fuilho00TClaimr PWI eage0-02.2aU1 EXHIBIT B nNll0ac Page 1 of 8 3rya2wr Claims Paid From OVI V07 to 9272a107 Warrant No. Vendor Amount Description 88382 CALPLY 1.338.51 Ceiling Panels 88383 Martin Boyer Co.,Inc.clo Cambridge Integrated 2.875.00 Professional Services-Workers'Compensation Claims 88384 Cambridge Isotope Labs 3.476.95 Lab Pads&Supplies 88385 CAPLUGS Niagara 70.39 Mechanical Pads&Supplies 88386 CAPPO,Inc. 910.00 Membership 88387 CON Isotopes 4.420.00 Lab Pads&Supplies 88388 Charles P.CrovAey Co. 3.594.85 Pump.Pump Pads&Supplies 88389 Cingular Ndreless Airtime 4,433.75 Wireless Services 88390 Cole Parmer Insimmant Ca. 241.09 Lab Pads&Supplies 88391 Condenser&Chiller Services,Inc. 988.D5 Mechanical Supplies B Tools 88392 Consolidated Electrical Distributors.Inc. 2,735.27 Electrical Pads&Supplies 88393 Consumers Pipe&Supply Co. 1.831.67 Plumbing Pads&Supplies 88394 Controlled Motion Solutions 158.40 Pump 88395 Corporate Express 10,692.19 Office Supplies 88396 Coriech Engineering 7.780.09 Pump Pads&Supplies 80397 County Wholesale Electric Co. 1.103.38 Electrical Pads&Supplies 88398 CWEA Annual Conference 360.00 Meeting Registration-Division 620(California Water Environment Association) 85399 D.R.MCNalty&Associates 1.195.00 Training Registration 58400 Davlds Tree Service 3.240.00 True Maim.Service 88401 Down Pumps&Pads,Inc. 1.655.04 Pump Pads&Supplies 88402 Detector Technology 1.551.00 Lab Pads A Supplies 88403 Doman Water Controls 652.97 Mechanical Paris&Supplies 88404 Eleolro Bond,Inc. 2.878.93 Repair&Maintenance Services-Heal Exchanger Heads&Bearing Housing Assemblies 85405 ElecNcal Reliability Services 1,730.00 Professional Services-Electrical Reliability Testing for Capital Projects BU06 Elactro Numerics.Inc. 2,717.13 Electrical Palo&Supplies 88407 Electronic Dala Solutions 83.62 Lab Pads&Supplies 85408 Enchanter,Inc. 3.900.00 Ocean Monitoring&Curtail Inspection&Maintenance 88409 Erurronmental&Occupational Risk Mgmt. 2.850.00 Professional Services-Industrial Hygiene Monitoring 88410 FEDEX Corporation 325.92 Freight Services 88411 Ferguson Enterprises,Inc. 104.64 Valves SM12 First American Real Estate Solutions 809.00 OrvUne Orange County Property Informalion 85413 Fisher SctentlAc Company,L.L.C. 3,215.41 Lab Pads&Supplies 85414 Flomax Products,Inc. 271.62 Mechanical Pads&Supplies 88415 FLW,Inc. 1.473.05 Plumbing Pads&Supplies 88416 Forked Engineering&Surveying,Inc. 18204.88 Surveying Services-Various Capital Projects 88417 Fountain Valley Paints,Inc. 432.45 Paint Supplies 88418 Franklin Covey 47.10 Office Supplies SM19 Fresco Profiles 171.50 Human Resources Background Checks 8842D Frys Electronics 124.94 Computer Supplies 88421 General Petroleum 6.12723 Lou•Ash Engine Oil M22 George T.Hall 192.33 Instrument Supplies BM23 Global Awards,Inc. 461.38 Stainless Steel&Plastic Asset Tags 88424 Goldenwesl Window Service 160.00 Groundskeeping Services 88425 Government Insatiate,Inc. 707.58 Publication SM26 Grainger,In . 416.99 Electrical Pads&Supplies 88427 Grating Pacific,Inc. 161.63 Hardware 8842E Groybar Electric Company 228.47 Electrical Repair&Maintenance Services-Modicom Pad 88429 Great Waslem Sanitary Supplies 69.39 Janitorial Supplies 88430 Greaaand Corporation 7.48 Forms BU31 Hach do Ponlon Industries 850.06 Lab Pans&Supplies H vMPNSTE%CEL.d1a12200PSHARE%C41mf Paid ReMMWT rry Paid Reryn-02-2M7 E%H IBITB M1N210nc Page 2 of 8 W 1d 007,� �, Claims Paid From 02JIGIOT to OV28107 Y y Warrant No. Vendor Amount Description 88432 Harrington Industrial Plastics,Inc. 2,777.71 Mechanleel Parts&Supplies 88433 Hill Brothers 13.194.94 Chemicals-Oder&Corrosion Control-Newport Tmnkline 80434 Home Depot 178.90 Misc.Repair&Maintenance Material 88435 ICL Calibration Laboratories,Inc. 254.96 Lab Paris&Supplies 88436 ID Enhancements,Inc. 262.00 MagleaM Ribbon for I.D.Badge Equipment 88437 IDEXX 4,848.76 Lab Pads&Supplies 88438 Industrial Distribution Group 2.265.13 Mechanical Pads,Supplies,Locks B Tools 88439 Inorganic Ventures,Inc. 160.39 Lab Paris&Supplies 88440 Invensys Systems,Inc. 2,196.09 Instrument Parts&Supplies 88441 Iron Mountain 105.00 Storage Fee-Bid Documents Pi-37 88442 bowman Pads&Services 213.03 Mechanical Pads&Supplies 88443 Jamison Engineering Contractors.Inc. 7,052.00 Installation of Communication Hardware In Purchasing Conference Room BS444 Jays Catering 1.660.24 Meeting Expenses OM45 Johnstone Supply 464.97 Motor 68446 Joshua Casey Corporate Training 1,495.00 Training Registra0on 88447 Kfmce,Inc. 2,402.40 Temporary Employment Services 88446 KL&P Marketing 2.110.50 Safety lncenave Items SM49 Lehigh Valley Safety Supply Co.,Inc. 143.84 Mobile Safety Shoe Service 88460 The Library Store.Inc. 163.41 Corrupted Magazine Files BU51 Luod's Gourmet Foods,Inc. 149.65 Meeting Expense BM52 Lyon Workspace Products 2,256.18 Mobile Work Center 88453 MasslAuhrel Mlchel Financial Group 79.04 Executive Disability Plan Premium 88454 Me Junkin Corp. 09.0 Plumbing Supplies 88455 McMaster Cart Supply Co. 5.023.91 Mechanical 8 Lab Pads,Supplies&Tools 88466 MDS Consulting 67A7 Professional Surveying Services 1-24 88457 Medlin Controls Co. 700.08 Instrument Pads&Supplies BU58 Mitlway Mfg.&Machining Co. 1.758.48 Mechanical Pads&Supplies 86459 Mission Abrasive&Janitorial Supplies 239.55 Janitorial Supplies 88460 Mcore Industries International 607.75 Eactrlwglnslrument Pads&Supplies BU61 Motion Industries.Inc.CA 55 5.425.21 Pump Parts&Safety Supplies OU62 Nallonal Seminars Group 568.00 Training Registration 88463 Neal Supply Co. 75.70 Plumbing Supplies 884M Neutron Products,Inc. 5,787.99 Anionic Polymer OM65 New Century Channel Group DBA PIGNX 1.893.25 BIN Control Services-PIGNX-Dewatering Bldg. 88466 Heaven,Electronics 327.5E Instrument Supplies SM67 Nfegh,Plumbing 100.64 Plumbing Parts&Supplies 86468 NRG Thermal Services,L.L.D. 417.33 Mechanical Pads&Supplies 88469 O C Tanner Recognition Company 1593.03 Employee Service Awards Program 88470 Office Depot Business Services Division 1,008.12 Office Supplies 88471 Channelled Distributors,Inc. 11.309.09 Eleddcel Paris&Supplies 88472 Orange County Tax Collector 7.677.79 Unsecured Property Tax-North County YeN Property 86473 Orange Fluid System Technologies,Inc. 90.24 Plumbing Pads&Supplies 66474 Oxygen Service Company 20.26 Specialty Gases 88475 Pacific Mechanical Supply 30.64 Plumbing Supplies BM76 decifm Pans 8 Controls 1,019.32 D.0 Sealer 88477 Persons Water&Infrastructure,Inc. 15.706.30 Professional Services J.3S2 88478 Pazzulla Plastics.Inc. 1,349.10 Replacement of Counter Top-Pit.1 Lab Upstairs Women's Restroom SM79 PeramElmer Les 1,439.36 Lab Instrument Maintenance-Plasma Mass Spectrometer&SaBwzre 88480 PRE International,Inc. 4.436.60 Envelope Opener-OCSD Mail Room 86461 Phenomenex 1,238.40 Lab Pads&Supplies H:WapnddKEXCEL xU2PAPSHARBCINme Paid ReportQaeTClelms Pent Repot-a]-360) EXHIBIT B %Q10ac Page 3 of 8 Halloo] Claims Pahl From OVIS107 to 02728107 Warrant No. Vendor Amount Description 88482 Pad Supply 13.88 Repair&Maintenance Materials-Nerissa Ocean Monitoring Vessel 88483 Propipe 18,646.46 Sewadine Mean Inspections or Sevrerlme Cleaning for City of Tmdn&Unincorporated County Propertl 88494 Prudential Overall Supply 1,484.35 Uniforms&Related Adidas 88485 PSI 182.86 Repair It Maintenance Servlices-Pressure Washer at Rebuild Shop 88486 O Air Calif.-Div,of Pump Engineenng 49.00 Freight Services SM87 Radius Maps 1,635.00 Radius Map&Ownership Listings 88488 Rainin Instrument,L.L.C. 625.58 Lab Pads&Supplies W89 Raven Biological Laboratories 104.95 Lab Pads&Supplies SM90 Red Wing Shoes 303.42 Safety Shoes SM91 Reskk Corporation 345.89 Lab Pans&Supplies 88492 R.F.MacDonald Cc 706.08 Instrument Pads&Supplies 88493 Rockwell Engineering&Equipment Co. 348.36 Freight Services 88494 Romac Supply Co. 4,026.41 Instrument Pads&Supplies 88495 Royale Cleaners 7.50 Dry Cleaning Services 88496 RPM Electric Motors 4,487.40 Repair&Maintenance Services-tine Reactors 88497 RTM Lighting&Electronics,Inc. 469.24 Elecldcal Pads&Supplies 88498 Sea Bird Electronics,Inc. 5,751.O0 Lab Imtlumeol Maintenance&Calibration Services 88499 SETAC 226.00 Membership&Meeting Registration-Division 631 88500 Sewer Equipment Company of America 388.76 Hose Guides 86501 SGE.Inc. 80.15 Lab Paris&Supplies 88502 Shamrock Supply Co.,Inc. 1,320.09 Mechanical Pads&Supplies 88503 Shaw Pump and Supply.Inc. 3,578.50 Pump Pads If Supplies 88504 Shu cluck Sales&Engineering 2,470.34 Mechanical Pads&Supplies 88505 Siemens do Jensen Instrument Co. 164.48 Instrument Pads&Supplies 88506 Sigma Aldrich,Inc. 1.114.84 Lab Pads&Supplies 88507 Skelan,Inc. 28.00 Lab Pans&Supplies 88508 Smardan Supply Company 5.667.51 Plumbing Pads&Supplies 88509 Smith Emery Company 590.00 Sells.Concrete&Other Materials Testing 88510 Smith Pipe&Supply.Inc. 127.72 Landscape Imitation Supplies 88511 So Cal Gas Company 331.00 fishnet Gas 85512 South.California Trans Service 4.003.88 Electrical Equipment Service Contract 88513 Southwest Solutions 6.546.00 Server SOBwere Licenses,Maintenance&Support SM14 SPEX Cemprep,Inc. 483.87 Lab Parts If Supplies 80515 Stratus Environmental,Mc. 8,590.00 ProfessionalServices-Groundwater Monitoring 88516 Summit Steel 2.059.95 Metal 88517 Burnet Induslnal Pans 345.15 Mechanical Pads&Supplies 88518 Systems Solution Company 9.776.92 Repairs&Maintenance Services-Access ConlmUCCTV Security System 88519 TekSystems 8,544.00 Temporary Employment Services 88520 Tetra Tech,Inc. 15,244.08 Professional Services 7-37 55521 The Orange County Register 1,577.60 Notices&Ads 86522 The Rochester Connotation 76.25 Freight Charges 88623 The Walking Man,Inc. 425.00 Printing and Distribution for Various Construction Projects M524 Thermo Electron Corp. 1,392.44 Lab Pads&Supplies 88525 Thomas V.Dellinger 500.00 Lab Analyses 88525 Thompson Industrial Supply,Inc. 6,004.54 Mechanical Pans&Supplies 88527 Times Community News 50.00 Notices&Ads 88528 T-Mobile 107.84 Wireless Air Time 885N Todd Painting,Inc. 747.00 Painting Services 885M TPC Training Systems 12.370.00 TPC Leading Manager Or Line System 88531 Trimble Navlgalion 21.673.92 Communications Equipment,Pads&Supplies HW,vasd,EXCEL4WWX SHARE1CbIms Pel4 RepulWaTCIeMn PtlE Repan-a2.2&07 EXHIBIT nn41Mc Page 4 of 8 W14g007 Claims Pahl From 0V16107 to OW25107 ' Warrant No. Vendor Amount Description 88632 Truck&Auto Supply,Inc. 29.12 AWomain,Pads It Supplies 88533 Ullra Scientific 3".90 Lab Pads&Supplies 88534 Underground Service Ned of So.Calif 1,59520 Undergr0und UtNly IdentificaborJDig Ale"Notification Service 88535 United Parcel Service 25.91 Parcel Services 88536 United Pumping Service 16.367.66 Pumping Service Pt-37 88537 Vernon California, 5.89 Telephone Services 88538 Vossler&Company 2.579.03 Mechanical Parts&Supplies B8539 VYVR Scientific Products 2.394.29 Lab Paris&Supplies 88540 The Wackenhut Corporation 15.859.63 Sammy Guards 88541 Waters Corporation 3.979.68 Lab Pans&Supplies 88542 Wrm Sanitary Supply 36.66 Janitorial Supplies 8B543 lNestem Slates Controls 1.220.24 Electrical Pans&Supplies 885" WSI Distributors 1,643.64 Mechanical Paris It Supplies 88545 Xyon Business Solutions,Inc. 1,500.00 Temporary Employment Services 88546 Nicholas J.AfhaMes 109.69 MeetirgRraining Expense Reimbursement 88547 Rebecca A.Brooks 150.00 MeetirgfTraming Expense Reimbursement 88548 unman S.Hawkins 37.25 MeelingRraining Expense Reimbursement 88549 Ronald J.Hinshaw 61.00 Meethgffrainhg Expense Reimbursement 88550 Subash Mysore 39.40 MeetingRrainirg Expense Reimbursement 88551 Huan Hoang Nguyen 100.00 MeetingRroiniig Expense Reimbursement 88552 William F.Plerce 70.00 MeetingFrainirg Expense Reimbursement 88553 Daniel R.Tremblay 1,306.30 Meetingffrainiig Expense Reimbursement 88554 Joanne Ward 46.14 MeetinglTraining Expense Reimbursement 88555 AA-1 Services,Inc. 49,815.00 Professional Services-Pit.2 Digesters F&G Liner Replacements 88555 Blue Crass of California 408,237.23 Medical Insurance Premium 88557 Dena Dental 57,734.49 Denial Insurance Plan 88668 Kaiser Foundation Health Plan 67,073.01 Mescal Insurance Premium 88559 MOB Consulting 20,106.52 Professional Surveying Services 1-2.4 88560 Midway Mfg.&Machining Co. W.789.57 Mechanical Parts.Supplies&Rem rrufacture(12)Flange Exhaust Manacles for LSVB Engine 88561 Occidental Energy Marketing,Inc. 61.763.16 Natural Gas for CenGen COGen 88562 ACE Ergonomics 376.00 Professional SeMces-Ergonomic Vyorkstation Evaluations 88563 ACGIH WorMvMe 255.50 Training Registration 88664 AIHI 178.00 Membership 88555 Alrges-West 9.30 DemurtagefCytirmr Rental 88566 American Airlines 3,200.60 Travel Services 88667 American Chemical Society 136.00 Membership 88568 American Fidelity Assurance Camps" 486.40 Employee Voluntary Cancer Insurance SM69 Americen Society of Civil Engineers 20.600.00 Professional Services-Peer Review Engineering Best Practices for Administration of Capital Program 88570 Amlech Elevator Services 51.72 Mentor Maintenance 88571 Aquatic Bioassay and Consulting Labs,Ire. 1.570.00 Vslrole Effluent Toxicity Testing 88572 AT&T Universal Biller 1,949A7 Telephone Service 88673 AT&TCahfemlaNCI 2,018.93 Telephone Service 88574 American Telephone&Telegraph Corp. 28.85 Telephone Service 88675 Bee Man Pest Control,Inc. 325.00 Pest Control 88576 Bianchi Group.Inc. 7,599.22 Training Registration 88577 Black&Veatch Corporation 9.000.00 Engineering Services-Confusion&General Inspection of Outten Pipe&Appurtenances 88578 Bush&Associates,Inc. 14,452.00 Professional Services 7-36 88579 California Dept,of Child Support 1.240.12 Wage Gamishment 88580 Califomia Recreation Company 2.491.80 Boat Slip Rental Fees for Ocean Monitoring Vessel Nerissa 88581 California Relocation Services.Inc. 41M.00 Office Files MovinglRelocalion Services HWexvmsEXCELftnWvW$HARMIu sPad RepmY000TChores Paid Ronan-02-]a07 EXHIBIT amolrc Page 5 of B Mourn Claims Paid From 02M6107 to 0V28107 Warrant No. Vendor Amount Description 88582 Callan Assoclates,Inc. 3,759.50 Investment Advisor 88583 Cameron Compression Systems 193.21 Mechanical Pads&Supplies 88584 Campbell Window Timing 175.00, Door Tinting 88585 CASA 1,650.00 Membership or Meeting Registration-Division 110&150 88586 CHMIA 50.00 Membership-Calif.Hazardous Materials Investigators Assoc. 68587 Cingular Wireless Arnold 4.23 Wireless Services asses CAM 7g0.60 Meeting Registration-Ondsion 760(Construction Management Assoc.of Andi 88589 Coast Fire Equipment 632.29 Annual Fire Extinguisher Inspection&Servicing at Pits.1&2 and Pump Stations&Fleet Vehicles 88590 Columbia Analytical Services,Inc. 1,1B8.00 Analysis of Wastewater,Industrial Wastewater&Blosalids 88591 Conrad&Associates.L.L.P. 4.282.00 Professional Services-Financial Auditing Services 88592 Corporate Express 1,833.39 Office Supplies 88693 County of Orange Health Care Agency 72.50 Industrial Clean Up File Review Fees 88504 County Wholesale Electric Co. 49.60 Electrical Paris&Supplies 88595 CR&R,Inc. 2.355.00 Container Rentals&Waste Disposal Service 80590 Culligan of Orange County 48.15 Maim.Agreement-Can Gen Water Softener System 88597 CWEA Membership 330.00 Membership(Calif.Water Ernlronment Assoc.) 88598 DOB Engineering,Inc. 1,040.00 Professional Services-Grant Management 88599 De GUNIe&Sons Glass Co.,Inc. 942.06 Window Glass Repainflieplacemem 88600 Desert Pumps&Paris.Inc. 380.10 Pump Paris&Supplies 88601 Dr.Harvey Goldstone 1,440.00 Safety Glasses 88602 Ecology Control Industries 12.731.68 Hazardous Waste Disposal 886D3 Employee BeneMs Specialists,Inc. 90D.79 Reimbursed Prepaid Employee Medical&Dependent Care 88604 Environmental III Ompallonal Risk Mgmt. 2.860.00 Prolesalanal Services-Industrial Hygiene Sampling 88605 Environmental Resource Associates 1291.74 Lab Paris&Supplies 88606 Evang Irrigation Industrial 73.05 Landscape Irrigation Paris&Supplies 88607 FEDEX Corporallon 664.61 Freight Services 88608 Franchise Tax Board 90.00 Wage Garnishment 88609 Franklin Covey s0." OMcia Supplies 88610 Garrett Callahan Company 4,481.27 Chemicals 88611 Gales Fiberglass Installers 3.048.50 Repair&Maintenance Services-Shalt Bushings on BackdraO Dampers 88012 Geomabbr Consultants.Inc. 12.150.00 Soils,Concrete&Other Materiels Testing 85613 Gold Coast Awards,Inc. 25.55 Name Badges 88614 Goldenwest Window Service 4,275.00 Groundskeeping Services and Window Washing Services 88615 GOTM Enterprises DBA Property Care Services 525.00 Sweeping Services 88616 Grainger.Inc. 1,172.19 Mechanical Paris&Supplies 86617 Guarantee Records Management 269.21 OfSlte R.C.Me Storage 88618 Harker Equipment Company 322.21 Misc.Vehicle,Pads,Repairs&Service 88619 Harold Primrose Ice 70.00 Ice For Samples 88620 Harvard Business Review 119.00 Training Registration 88621 Hewlett Packard Company 4,118.51 (2)HP LaserJet Prime. 88622 Home Depot 1,174.09 Mac.Repair&Maintenance Malarial 88623 Hose Express,L.L.C.ribs Pidek Santa Me 125.31 Mobile Hose Service 88624 City of Huntington Beach 12,822.84 Water Use BM25 Indiana Child Support Bureau 290.00 Wage Garnishment SW26 Innemne Engineering 13.116,93 Sewedine Video Inspections 88627 Internal Revenue Service 320.00 Wage Garnishment 88028 Interstate Batteries of Cal Coast 2.098.54 Batteries for Vehicles&Carts 88629 Intl.Union ai Oper.Eng.AFL CIO Local 501 4.655.15 Dues Deduction 88630 Irvine Ranch Water District 41.50 Water Use 88631 Jamison Engineering Contractors,Inc. 5.519.80 Construction SP-34-Purging of interplant Gas Line H ideptakINE%CELaer220l4PSMME1LINmr Paid RepoM200TCIa ms Pala Repon-024847 EXHIBIT B 6w2101C Page 6 of 8 XI4Q007 _ „ Claims Paid From 02/16107 to 02/28/07 ^ Warrant No. Vandor Amount Description 88632 Jays Ca" 698.94 Meeting Expenses 88533 Kissel Environmental Lab 480.00 Outside Laboratory Services 88634 KLEE Associates,Inc. 4.515.00 Training Registration 88636 LECO Corporation 13,365.00 Instrument Repair &Maintenance Services,-Pegasus Gas Chromatograph BMW Uabed Cassidy 745.00 Training Registration 88637 Court Order 3XLw Wage Gamishment BM38 Luochs Gourmet Foods,Inc. 40.00 Meeting Expense SM39 Madnus Scientific 79.30 Lab Paris&Supplies SM40 Mission Uniform Service 470.18 Uniform Rentals 88641 Monster,Inc. 4.666.68 Notices&Ads Bail COW Order 225.00 Wage Garnishment 88643 National Bond&Trust 2,958.12 U.S.Savings Bonds Payroll Deductions 88644 National Business Wpmens Leadershp Assoc 417.00 Training Registration 88645 hands!Sampan Group 1,59621) Training Registration 88646 City of NevRwl Beach 222.46 Water Use 88647 OCB Reprographics 23,637.26 Printing Service-MO 126I00 88648 OCEA 664.63 Dues Deduction 88649 Office Depot Business Services Division 514.45 Omce Supplies 88650 Orange County Cosslkeeper 25.00 Meeting Registration-Division 810 BM51 Orange County Forum 550.00 Meeting Registration-Division 110 BM52 Oxygen Service Company 2,119.00 Specialty Gases&Lab Pads&Supplies BM53 PCG Industries 550.00 Repair&Maintenance Services-Shaft Coating win Chrome Oxide 88654 PCS Express,Inc. 286.78 Courier Service 88655 Peace Officers Council of CA 1,593.00 Dues Deduction,Supervisors&Professionals 88656 Pre-Paid Legal Services,Inc. 835.96 Employee Voluntary Legal Service Insurance Premium 88857 Rainbow Disposal Co. 3,104.33 Trash Removal 8W58 Rockwell Engineering&Equipment Co. 131.65 Freight Charges 88659 RPM Electric Motors 5.985.67 Motor&Motor Repairs 88660 Saletycere,Inc. 646.50 Training Supplies 88651 SBC Long DlalanceSouthvrestem Bell 1,423.93 Telephone Servlces M62 SC Fuels 3,397.18 Bulk Diesel Fuel 08663 SCAP 110.00 Mining Registration-ON.810(Env.Compliance Services) 88664 Scott Specialty Gases.Inc. 80.16 Lab Pads&Supplies 88665 Siemens Water Technologies Corp. 240.50 Service Agreement-DI Water Systems at Plants l&2 88656 Society for Human Resource Management 1.660.00 Training Registration 88667 Soffchoice Corp. 10.033.60 Soffvere 88668 Southern California Edison 61.75 Porter 88669 Stanley Steamer International,Inc. 386.50 Carpet Cleaning Services 88670 State Board of Equalization 4.946.00 Hazardous Waste Fee 88671 Technical Service Group,Inc. 1,381.60 SCADA System VAX Service Agreement 88672 Systems Solution Company 1,515.48 papers&Maintenance Servlces-Access Comd:VCCTV Security System 86673 Terminix International 1,009.00 Past Control 88674 Testamer ca Ontario 5,587.50 Analysis of Biosolids 86675 The Help Center,L.L.C. 9.000.00 On-Site Training-Diversity Training BW76 Time Warner CommuNulions 51.07 Cable Services 88677 TMV Systems Engineering,Inc. 2.531.25 SulNnre Services-Changes/Additions to SCADA&Process Data Systems BM78 Tony's Lock&Safe Service&Sales 710.0 Locks&Keys BM79 Townsend Public Affairs 5,000.00 Legislative&Execulive Advocate for Grant Funding 88680 Traffic Control Service,Inc. 404.06 Traffic Safely Supplinfitentals BM81 Tremco Incorporated 1,880.00 Repairs&Maintenance Services-Roof Repairs at Digester Control Computer Room R:YMpNraE%CEL.44l2aeNP6HAaElGalma Pail Peppnl3WTGlexna Palo Reppri-a3-2 EXHIBIT B fiMlMc Page 7 of 8 31MM7 Claims Paid From 0V1W07 to OV28107 Warrant No. Vendor Amount Description 88682 Truck&Auto Supply,Inc. 1144.24 Automotive Parts Is Supplies 88683 USS Financial Services,Inc. 23,679.69 Remarketing Fee-1992 Series Advanced Refunding COPS(or 1992 Advanced Refunding) 88084 United Pacific Services,Inc. 12.761.99 Landscape Maintenance&Groundskeeping at Plants 1&2 and Pump Stations 88685 United Parcel Service 1,871.03 Parcel Services 88686 United States Postal Service 5,000.00 Postage 88687 United Way 50.00 Employee Contrbutions BMW Verizon Caifomla 81.89 Telephone Services 88689 Vortex Corp. 319.30 Door Repalm-Roll-Up Warehouse Door 88690 V VR Scientific Products 274.71 Lab Paris&Supplies 88691 The Wackenhut Corporation 8,270.24 Security Guards 88692 Walla Sanitary Supply 62.84 Janitorial Supplies 88593 VJEF 242.00 Membership-Water Environment Federation 88694 Court Order 597.50 Wage Garnishment 88695 24 Cartats 212.27 Meeting Expenses 886M Patrick S.Carnahan 180.M Meetingfrraining Expense Reimbursement SH97 Mark A.Es0uer 189.90 Meeting/heining Expense Reimbursement 88698 Victoria L.Francis 25&01 Meetln9Rraining Expense Reimbursement 88699 Ronald J.Hinshaw 110.00 MeetingRraming Expense Reimbursement 88700 Menii F.Seiler 56.00 MeetingRraming Expense Reimbursement 88701 John W.Swindler 37.60 Meelingri mining Expense Reimbursement 88702 Robert J.TMede 37.60 MeelingRraintng Expense Reimbursement 88703 County of Orange Auditor Controller 600.00 Administrative Fee-Adjustments to Property Tax Bits 88704 Five Point Properties,L.L.C. 926.97 Reconciliation User Fee Refund Program 88705 Ross Hollands 1,373.08 Reconciliation User Fee Refund Program 88706 Marvin Engineering Company,Inc. 6.536.87 Reconciliation User Fee Refund Program $8707 David Mores 1,373.08 Reconciliation User Fee Refund Program Bilma Slater Palms,L.L.C. 388.90 Reconciliation User Fee Refund Program 88709 Wal-Mart Real Estate Business 4,213AH Reconciliation User Fee Refund Program 88710 Westwre Properties.L.L.C. 882.36 Reconciliation User Fee Refund Program Total Accounts Payable-Warrants 8 15.500.232.01 Payroll Disbursements 36237 - W302 Employee Paychecks S 121,131.94 Biweekly Paying-02128/07 36303 - 36304 Employee Paychecks 433.08 Interim Payroll-Retro and OCERS Reimbursements 137391 - 137953 Direct Deposit Statements 1,226,668.01 Biweekly Payroll-02/28/07 Total Payroll Disbursements S 1.349.233.03 Wire Transfer Payments CCSD Payroll Taxes&Contributions $ 730,254.82 Biweekly Payroll 02128/07 US Bank 516,139.49 Series 200U A&B Refunding COPs February Principal and Interest Payment Total Win Transfer Payments S 1.246.394.31 Total Claims Paid OV16106-0V28106 $ 18.094.859.35 H.vep1uanE%CEL dler330APSHaQEZ1 ims Palo Rapam200TC1eims Paid Reparr-023807 EXHIBIT B 11N210na Page 8 of 8 3/144007 --. BOARD OF DIRECTORS Meeting Date To W..1 o`r. oa/z5/m AGENDA REPORT Iem Number Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services 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. PRIOR COMMITTEEIBOARD ACTIONS N/A ADDITIONAL INFORMATION See attached listing. ATTACHMENTS 1. Copies of Claims Paid reports from 03/01/07 to 03/15/07 and 03/16/07 to 03/31/07 Form No.OW4e2-d Ppmaa Reuel-FMR Dept 320 RMw 4fllr ]] Page 1 F< Claims Paid From 03101307 to 03/15/07 Warrant No. Vendor Amount Description Accidents Payable-Warren% 88711 Voided Check E - - 88712 Basic Chemical Solutions.L.L.C. 25,774.66 Sodium BisuMb&Sodium Hydroxide 88713 Black&Veatch Corporation 170.103,93 Engineering Services-P1-102&Pt-76 88714 &own&Ctldxell 144,526.06 Professional Services P147,P2-91&P2.90 88715 Camp Dreew&Models,Inc. 163,343.68 Engineering Service Pt-97&M7 88716 Clock Engineers 268.076.65 Professional Services P2-66&P1.71 88717 CCG Systems,Inc. 58.300.00 Float Maintenance Software 88718 Compressr Components of California 25,259.35 Repair&Mount Sws.-Valve&Rehab.,Clerr✓Test Gas Compressor Cylinders:Oil Cooler,LSV6 Ignitors 88719 Cemented Image Maintenance,Inc 33,750.00 Custodial Services Spec.No,9899-09 887M Hewle&Packard Company 93,654.88 (W)Personal Computers&(20)Natebook Computers 88721 Hill Brothers 28.012.07 Chemicals-Odor&Corrosion Control-Newpont Trani 88722 Kemira Water Solutions 111,015.34 Ferric Chloride 88723 Malcolm Firms,Inc. 140,298.39 Professional Services 11-26.1.10&P2-90 88724 MetLib Life Insurance Company 36,873.90 Greup Lee,Manager Asir.Lee.Short is Long-Tean Usability&Optional Term Lib Ine. 88725 Pioneer Americas,Inc. 202,761 Sodium Hypocblorde 857M PorydWre,In . 0.552.36 Cationic Polymer MO 3 1142 88727 Science Applications International 88,632.63 Ocean Monfbrbg MO 64-94 81 Southern Celifuheb Edison 78.431.24 Power 88729 Summit Conwlting International 73,512.13 Legal Services 7-38&741 U730 Tetra Tech,Inc 27,950.57 Professional Services 7.37 a8731 Tub Reach ldagan Farms 242,520.07 Saudi Remove l NO 3-29-95 88732 US Peroxide,L.L.C. 144,402.68 Odor&Corrosion Control Treatment for Coll.Sys.,Hydrogen Peroxide&Fei Chloride 88733 WcedmB Boards,&Sherd 90.933.10 Legal Services MO 7.26-95 88734 Helix Electric,Inc. 113.004.90 Consumer,SP41 U735 J F Shea Construcred,Inc. 02,897.35 Constnumon J-77 88736 J R Filanc Construction 1,104,931.66 Constmctlon P142 88737 Margins Construction,Inc. 242,784.00 Construction Pt-37 88738 Mike Bubab Construction Co.,la. 149,384.80 Construction 1-24A $6739 Union Bank of America Es sm 705,493.16 Construction P246,Relentlon 68740 J F Slaa Construction,Inc. 6,349,438.49 Constnumon P2.86 88741 J F Slsa Construction,Inc. 613,500.19 Consimctian P244 88742 ARS,Inc. 5,132,000.00 Construction 7-38&741-Settlement Agreement 88743 American Telephone&Telegraph Corp. 204.18 Long Distance Telephone Service 88744 Ararat Constructor,lac.(Ark Corsaucron) 17,020.00 Maintenance Services-CJeanitg 0f Plant 2 Tunnels 88745 ABS Automation,Inc. 081.41 Repair&Mairm nonce Service-Flow Miller 88746 Able Scale Repair 790.00 Loading Scales Oui dedy Inspection&Certification for Plts. 1&2 88747 Absolute Standards,Inc. 65.00 Lab Pads&Supplies 88748 Accounting Options,Ina 1,901.25 Temporary Employment Services 88749 ACCU Sludge 700.38 Lab Paris&Supplies 88750 AccuSMrkard 99.30 Lab Pam&Supplies 88751 Advance Business Graphics 1,623.44 Printing Services-a10 Envelopes w/Return Address&Logo 88752 Agreeya Solutions,Inc. 18,236.00 Professional Services-I.T.Operational Assessment 88753 Ali So".Inc. 3R99.41 Safety Supplies 88754 Allied Electronics,Inc. 3.315.68 Electkel Parts&Supplies 88755 Americen Mactlinery&Blade.Inc. 336.52 Punch&Die Set&Mechanical Parts 887% Andech Elevated Services 1,400.00 Monthly Elevator Maintenance at put.1& H waprawdExCELtle@2MAP6HAREOrdi Paid RrynMEOTCInIma Paid Radon-a3-1547.ae EKHIBITAanchor,anchor, Page 1 of 10 V17RCe7 Claims Paid From 03101)07 to 03115107 Warrant No. Vendor Amount Description 88767 Analysts,Inc 761.47 Oil Test Kit&Anatyaes 88758 Auak Bananas nN Simony Pecks 80759 Applied Industrial Technology 197.66 Mechanical Pads&Supplies 88760 AT&T CalifomialMC1 MAT Telephone Service 88761 Battery Specialties 410.07 Bananas 88762 Beg Pipe&Supply Co. 95.16 Mechanical Pads&Supplies 88763 Berendsen Fluid Forayer 704.65 Mechaniwl Parts&Supplies 88764 Black Boa Corporation 298 IB Communications Pads&Supplies U765 Boyle Ergmeenmg Carosron 47949 Proessional Servces 1.2.4 88766 Bu¢A Ford 20 002 71 111 Ford Fusion BE 4-Door Semen 88767 Bush 6 Aaaotes trc 4 048 00 Pmissonal Sem,ces PI.82&P246 88768 Cal Glass Inc 3t4 21 Lab Equipment Bemce 88769 California Relocati0n Services Inc 45000 Omce Felt MovmpRiefocatem Services 88770 Cambridge Isdope Labs 284331 Lap Pads&Supplies 88771 Condemn Compression Systems 7.319.17 Mechanical Pans&Supplies 80772 CCS 405.00 Training Registration 88773 CHMIA 60.00 Training Registration(Calif.Hasardous Materials Investigators Assoc.) 88774 Cirgular tuneless Airtime 3.476.OD Wreless Services 86775 City of Tustin 2.086.30 Water Use 88776 CMAA 90.OD Training Registration 88777 C51 Compularional Systems 2.650.00 Training Registration 88778 Consolidated Electrical Distribubrs,Inc 523.08 Electrical Parts&Supplies 88778 Consumers Pipe&Supply Co. 150.42 Plumbing Pens&Supplies 88780 Corporate Express 1,435.28 Officer Supplies 88781 Cortai Engineering 9,938.82 Pump&Pump Supplies 88782 County of Ventura 18.095.00 Membership-Gadder Grp.Services(2)Advisor Level&(1)Reference Level 88783 County Wholesale Elecuic Co. 366.40 Electrical Pans&Supplies 887M CVVEA Annual Conference 1,80.00 Training Registration(California Water Environment Association) 887M GAS Instruments 319.63 Electrical Pans&Supplies 88786 Dapper Tire Co. 2.718.63 Truck Time 88787 Demote Tree Service 450.00 Tree Maint.Service 88788 Ground Pumps&Pans,Inc. 338.23 Pump Pans&Supplies 88789 Devise Technical Products 20.211.25 Repair&Maintenance Somme-66"&84"Pipeline Repairs at Pit.1 88790 Dbrrex Corporation 795.71 Lab Pans&Supplies 88791 Duran EdwaNs Corporation 258.86 Paint Supplies 88792 E.Sam Jones Distributors.Inc. 754.79 Electrical Pans&Supplies 88793 Electra SON,Inc. 4,859.53 Repair&Maintenance Services-Sandblast&Coral Cooper Compressor Aeer-Comerllnler-Cocer 88794 Electrical Reliability Services 7080.00 Professional Services-Electrical Reliability Testing for Capital Projects 88795 Electronic Specialist 209.80 Electrical Parts&Supplies 88796 EMEDCO 346.91 Safety Supplies 88787 Emergency Management HeNrork,Inc. 4.950.00 Oil-Site Fire Eelinguisher Training 88798 Employers Group 1,400.00 Training Registration 88789 Enchanter,Inc. 1,925.00 Oceen Monifonng&Outlall Inspection&Maintenance 88800 ENS Resources,Inc. 10.000.00 Professional Services-Legislative Advocate 88801 Ernimnmerval Compliance Inspection Svcs. 1,580.00 Professional Services-Fall,Oil Grease(FOG Program)Inspections 88802 E1lvimnmenlal Resounds Center 1.555.76 Professional Services-Hazanfeus Materiels Assessment 88803 Equa-Chlor 2,598.74 HydrochlaN Acid H bapNMF%CELErelattlJ,P6H9RflCYlma Pam RrywnVp0ilLlaYne Paid airport-03.1507.m EXHIBIT A andleac Page 2 of 10 412R001 di �. Claims Paid From OL01m7 W ON15101 Warrant No. Vendor Amount Description 88804 Ewing Irrigation Industrial 1,650.11 Landscape Irrigation Paris&Supplies $8805 Express Lens lab 2,570.95 Sal Glasses 88806 FEDEX Corporation 141.09 Freight SeMces 88807 FIIBNet Corporation 24,951.18 Annual Maintenance-Electronic Document Management Smarm 88808 Feet Ammican Real Estate Solutions 450.00 Orl Orange County Property Information 888H Fisher Scientific Company,L.L.C. 10,364.27 Lab Paris&Supplies 88610 Forester Communications 295.OD Training Registration 88811 Forked Engineering&Surveying,Inc. 8.430.00 Surveying Services-Various Capital Projects 1-10.P162,562&1.24 88612 Fountain Valley Paints.Inc. 105.70 Point Supplies 88813 Fountain Valley Ronchm Hand Wand 1,029.00 Vehicle Washing&WaNng Services $8814 Franklin Covey 67.77 Office Supplies 88015 Frys Electronics 205.70 Computer Supplies 88816 FTL Inc. 1,194.12 Routine Fomo-Accounts Payable Check Stack 88817 Gonad Callahan Company 36.02 Lab Pens&Supplies 08818 GBC(Genmal Binding Corp.) 36.56 Office Supplies 88819 George T.Hall 682.34 Ax kado, 88820 Golden Shia Water Company 144.82 Water Use 88821 Goleenweel Window SeMce 880.00 Groundskeeping Services 88822 Grainger,Inc 469.58 Mechanical Paris&Supplies 88823 Dial Elecnc Germany 12,MS.M EkGrical Repair&Maintenance Services 88824 Great Western Senimry Supplies 158.96 Janitorial Buppkea 88825 GdmsM,Inc. 7.885.68 Instrument Palo&Supplies 88826 Hach one Ponton Industries 1,813.71 Lab Paris&Supplies 88827 Hagemeyer North America 76.23 Prescription Salary Glasses 88828 Harbour Engineering Group 16,705.53 WInMe Press and Impeller Pump Paris 88929 Herold Primrose Ice 70.00 Ice For Samples 88830 Harrington Indummil Plaslica,Inc. 189.61 Mechanical Peels&Supplies 88831 Heat Techrmtogy Products 5.815.12 Mechanical Paris&Supplies 88832 Home Depot 427.67 Mlsc.Repair&Maintenance Malarial 86833 City of Huntington Beach 32.50 Water Use 88834 IESNA Publications 170.00 Membership 88835 Indusli al Distribution Group 4,921.04 Mechanical&Paint Pad.&Supplies,Lecka 8 Small Tools 888M Industrial Threaded Products,Inc. 77.86 Inventory Fasteners 88837 Insight lnvestmenis 1,00D.00 Professional Services-SoRware Installation 88638 Insurance Services Office,Inc. 525.00 Books&Publication. 88839 Ironman Pads&Services 254.37 Mechanical Pala&Supplies 88MO J L Wrmed Cpmparty 1,939.45 Pump 88041 John Way&Sons.Inc. 471.94 Books It Publications 885,12 Johnstone Supply 242.90 Electrical Parts&Supplies 88843 Kars Advance Materials,Inc 19,592.80 Professional Services P260 08844 Kforce,Inc. 1.710.00 Temporary Employment Servicas 88845 Kleinklder,Irx. 2.625.81 Soils.C..m&Other Materials Testing 88846 Lab Safety Supply.Inc. 353.81 Lab Paris&Supplies 88847 Labware,Inc. 1,650.00 Training,Regishation 98848 Laacomm 2.992.78 Computer SoBwarelHardware 88849 Lucco's Glumness Foods.Inc. 110.68 Meeting Expense 888M Lustre-Cal 747.W OCSO Wastehauler Truck Decals X WepluWXCELOW]OMPSHAffhJoW—Pad RepoTlOOTtleImr Pon Myan-M15d7.rh EXHIBITA nrvllMc Page 3 of 10 11l22007 Claims Paid From 03101107 to 03115107 Warrant No. Vender Amount Description 88851 Lytle Season among 564.61 Printing Services-OCSD Shins(Oman Group) 88852 M.J.Schiff and Aviation a,Inc 13.423.50 Temporary Employment Sen7lces 88853 Matheson To Gas,We. 970.67 Lab Equipment Repairs&Calibration Services 88854 MCJunkin Corporation 13,555.73 Actuator 88855 McMaster Can Supply Co. 2,g42.10 Mechanical Pons&Supplies 88856 Mason Undone Service 1M.74 London Radials 88857 Moyne,Ina 9,494.0 Progressive Cavity Pump 88858 NATEC International,Inc. 395.00 Training Registration 88859 National Plant Services,Inc. 4,800.00 Cleaning&Pumping Services-(3)Polymer Tanks at Devastating Bldg, SU60 Nesl Supply Co. 145.26 Plumbing Supplies 80861 Neutron Products,Inc. 2,903.82 Anionic Polymer 88862 Now Horimns.C.L.C.of Santa Ana 160.00 Training Registration 88863 Niage Plumbing 213.86 Plumbing Parts&Supplies 88854 Mind,&Moore Corporate A d nting 9.459.00 Professional Services P2-66 88865 Demmer Sales,Inc 1.881.51 Mechanical Parts&Supplies 88866 OCS Reprographics 189.06 Printing Service-MO VN3AX) 88867 Office Depot Business Serviced,Division 1,348.25 ON.Supplies 88868 Oeemmes,Distributors,Inc. 13,631.74 Electrical Pads&Supplies 88869 Orange County Pest Commit,Ina 139.00 Pest Control 88870 Orange Fluid System Tecimak gies,Inc. 1,265.27 Plumbing Pads 8 Supplies 88871 ORCO Conslrumion Supply 171.14 Melling Pant 88872 Oxygen Seance Company 2.770.52 Specialty Gases&Lab Parts&Supplies 88873 Pacific Mechanical Supply 1.619.13 Plumbing Supplies 88874 PCG Industries 5,750.D0 Repair&Maintenance Services-Shaft 08875 Peerless MBprng Materials Co. 588.M Janitorial Supplies $8876 Platinum Advisors 5,000.M Legislative Morecery Efforts&Participation In Legislative Affairs Committee Meetings 88877 Pompaciton,Inc. 4,928.D7 Pump Oil Fillers 88878 Prexeir,Inc. 352.97 Lab Pens&Supplies 88879 PnM¢rguy 2.663.21 Printer Maintenance 888W Procere Work Injury Center 625.00 Medical Screenings 88881 Project Management Institute 154.00 Membership 88882 Prus ential Overall Supply 4,729.39 Uniforms&Related Articles 88883 Pumping Solutions,Inc. 544.28 Pumps 88884 Pyramid Fence Company,Inc 2.M6.00 Fencing Repairs-Along East Permits Road 88885 RBF Consulting 7.566.41 Engineering Services 7-37 88686 patterns 8A79.71 Emptoyae Voluntary Life,Cancer&Supplemental Shad-Tatra Disability Insurance 88867 R.F.MacDonald Cc 1,090.00 Repair&Maintenance Services-Cleaver Brooks Boiler at Plt.2 88888 RMS Engineering&Design,Inc 2,707.50 Engineering Services-Confined Space Entry Inspections 88889 RPM Decide Motors 5,113.59 Mohr Repairs 88890 RTM Lighting&Electronics,Inc, 673.75 Electrical Pans&Supplies 88891 SCAP 110.00 Meeting Registration-Div.610(Env.Compliance Sonless) 88892 Behaving Blood 102.69 Mechanical Pads&Supplies 88893 Sweet Voice&Data,Inc, ;284.79 Telephone System Maintenance 88894 Sol Insurance Plans 4,739.60 Slate Workers'Compensatlon User Funding,Fraud,Annual License Fee Assessment 88895 Same Name Plate 125.67 Lab Pads&Supplies-Toga 88896 SGS Testmm,Ina 14.51 Telephone Liras-District Vehicle SMOG SOW 88897 Shamrock Suppy,Ca,Inc. 877.56 CleaeeriDegraeser&Small Toils H WpMaftE%CELEna220J PSURIMiaimr Paid Repom]N)1CWmr Pod Rervn-034"7,49 EXHIBIT A Mgteh Page 4 of 10 eRQUm da Al n Claims Paid From OWIM to 03115MT Wenant No. Vendor Amount Description 88898 SKC West.Inc. 640.47 Lab Pent&Supplies 88M Smardan Supply Company 188.24 Mechanical Pens&Supplies 889M Smith Emery Company 791.50 So*Concrete&Omer Materials Testing 869131 Snap-On Tools,Inc 1,834.76 Tons 811902 Southern Calii0mia Trans Service 4,313.87 Electrical Paris&Supplies 88903 Somhland Emretope Compel Inc. 723.01 Payroll Envelopes 88904 Sparkleis 2,351.38 Drinking Water/Cooler Rentals 88905 Spec Senkes,Inc. 455.69 Engineering Services J-33-1 889M Spectrum Laboratory Produces.Inn. 90.63 Lab Paris&Supplies 88907 Summit Steel 1,200.34 Metal 88908 Sunset Indurated Pmts 285.28 Mechanical Paris&Supplies, 88909 SWRCS Acceunling Office 308.00 Annual Fee-Storm Water Permit 741 88910 Teledyne RO Instruments.Inc. 2.433.36 Battery Packs 88911 Terminix International 1.224.00 Pest Control 88912 Tic Doman County Register 3,152.27 Notices&Ads $8913 The Walking Man,Inc. 525.00 Printing and Distribution for Various Construction Proods 68914 Tlxanpwn lndustdal Supply.Inc. 11,903.80 Motors U915 Thompson Publishing Group 787.00 Publication 88916 Times Community News 31.25 Notices&Ads M917 Thee Wrehouse 1,939.50 Tires 88918 Todd Painting,Inc. 2,988.00 Painting Services 88919 Truck&Auto Supply.Inc. 11279 Automotive Parts&Supplies a8920 U.S.Geological Survey 66.10 Professional Services-Oeploymeni or Current Meters off Huntington Beach from 706 to 11/06 88921 Ultra ScienOfic 294.09 Lab Pads&Supplies 869U The Unisource Corporation 273.00 Office Supplies 88923 United Pacific Services,Inc. 2,850.00 Landscape Maintenance at Plan%1&2 88924 United Penal Service 17.00 Parcel Services 88925 UNIVAR USA 1,305.37 Chicane 88926 US Abwnditloning Distributors,Inc. 440.55 Motor 88927 Vapex,Inc. 5,508.00 InsWmenl Parts&Supplies 88928 Vamom California 1,489.97 Telephone Services 88929 Vernon Wreless 304.18 Wireless Telephone Servipee 88930 Vemes Plumbing 970.00 Smvlce Contract-Testing&Cad.Back0ow Devices at Pas. 1&2&Pump Ste. 88931 Visage Nurseries 9.48 Landscaping Supplies 88932 Vision Service Plan CA 9,891.24 Miami Service Premium 88933 VOpa d USA,L.L.C. 413.19 Safely DVD's Office Manual 88934 Vortex Corp. 1,736.50 D00r Repass-Various 88935 V WR Scientific Products 5.737.91 Lab Parts&Supplies 88936 Waters Corporation 218.65 Lab Paris&Supplies 88937 Waxier Sanitary Supply 642.40 Janitorial Supplies 88938 West Lite Supply Company,Inc. 675.36 Elecericel Parts&Supplies 89939 Mersin Swittica&Connote Ix 2.829.52 Electrical Parts&Supplies 88940 XEROX Corporation 705.49 Stadmcry&Office Supplies 85941 YalelChaes Maintain Handling,Ica. 1.862.20 Elsom,Cad Pans 88942 California Business Bank 16,598.32 Con maskin I-24A,Retention 88943 Matl Adams 717.41 Meefing/Trainice Expense Reimbursement 889" EmioAlston 61.00 Meeting?relning Expense Reimbursement N WapNrPE%CB-OW24NPS.ARMI.Pala RP[gN3aaTnI.—Pad napo1.pe.1.7 vR EXHIBITA aM11oh Page 5 of 10 4I1=07 Claims Paid From 03MI107 to 03115107 Warrant No. Vander Amount Descri0tl0n 88945 James E.Colston 223.80 Meeiingrreiolng Expense Reimbursement 88946 Skeen R.DeWflde 146.36 Meehngffouning Expense Reimbursement 88947 William W.Heath 409.86 Meeting/7iaining Expense Reimbursement 88948 Andrei loan 658.70 Meeting/Training Expense Reimbursement 88949 Jeffrey L.Key 51.00 Meeting/Training Expense Reimbursement 88950 lin H.Kim 502.90 Meeling(Training Expense Reimbursement 88951 Randall Kleinman 980.98 Mwlingrraining Expense Reimbursement 88952 Subash Mysore 43.57 Meeting/Training Expense Reimbursement 88953 Roy Pa mo 61.00 Meeiirgrraining Expense Reimbursement 88954 Rda Riccardo 565.74 MeetinglTmining Expense Reimbursement 88955 George Riven, 1,088.41 Meeting/Trelning Expense Reimbursement 089H James Spears,Jr. 21.40 Meeting7Training Expense Reimbursement 86957 Edwa l M.Tomes 375.00 MeetingRreining Expense Reimbursement 88958 Paula A Zeller 581.15 MeetingRreining Expense Reimbursement 88959 Union Bank d California 12.566.10 Construction SP-61,Retention 88960 Save Anderson 1,250.24 Meetingrraining Expense Reimbursement 88961 California Dept,of Health Services 452.00 Amendment Fee-Lab Accreditation Pmgn,m U962 CWEA Annual Conference 100.00 Meeting Registration-Division 820(Califomia Water Environment Association) 88963 Entertainment Publications,Inc. MIND Reimbursed Employee Activities 88964 Orange Count'Sanitation District 8,990.90 Workers Comp,Rome. 88965 Orange County Sanitation District 920.98 Pely Cash Reimb. 88966 American Express 29,704.80 Purchasirrg Card Program.Misc.Supptiea&Services 88967 Department of Transportation 31,100.0) Celwans Overlay Project-Pacific Coast Hwy. 88968 Du Pont 59,670.00 Painting Maint Services M04.22-98 88969 EMI,Inc 26.028.40 Sullivan,Meint-AmAnfo.ArcGIS.AmEdnm.ArcView,ArcSde,ArcPad AmJms 8 ENi 88970 Orange County Water District 101.067.48 GAP Water 88971 So Cal Gas Company 25,565.611 Natural Gas 88972 Synagro West,Inc 215,939.91 Residuals Removal MO 3.2945 88973 Weaken Solutions,Inc 32.300.00 Duane Laboratory Services-Core Owen Monitoring Program 88974 Accounting Options,Inc. 3,127.00 Temporary Employment Services U975 Accurate Measurement Systems 188.58 Battery Packs 88976 ACE Ergonomics 750.00 Professional Services-Ergonomic WaksbBon Evalulmone 88977 Ahgas Safety,Inc. 180.00 Safety Supplies 88978 AKM Censulfing Engineers 18,225.00 Professional Service-Part-Time Dig Ned Technician 88979 Apple0ne Employment Service 9,032.95 Temporary Employment Services 889M Agwtic Bioassay and Consulfiri9 Labe.Inc 785.00 Whole Effluent Toxicity Testing 88981 Arch Wireless Operating Company,Inc 1.050.71 Wrelee St. 88982 AT S T Universal Biller 2,4n.12 Telephone Service 88983 AT&T Cablor iMMCI 23.21 Telephone Service 88984 American Telephone&Telegraph Cap. 47.34 Telephone Service 88985 BioMerieux Yak,Inc 581.87 Lab Paris S Supplies 88986 Bush 8 Assoc ales,Inc 4,884.00 Topographical Sumayirp-Maintenance Project in City of Newport Beach 88987 Cal Glees.Inc. 216.04 Lab Equipment Service 88988 California Dept of Child Support 1,240.12 Wage Garnishment 98989 California Relocation Services,Inc. 140.00 Office Has MovinglRelowtion Services U990 CALPELRA $40.00 Membership 88991 Martin Boyer Ca.,Inc.do Cambridge Integrated 2.876.00 Professional Services-Workers'Compensation Claims NVIeINre4iE'fCEL.4We3WP61NREY:lalno Ptl00eponlWTClan Paid Rapid-01-15L)n EXHIBITA eN2101c Page 6 of 10 aiamo7 f� Clelma PaW From 03MI107 as 03115W Warrant No. Vendor Amount Description 88992 Cameron Welding Supply Bill Welding Pads&Supplies 68993 Compete Corpmaliod 3773 Electrical Supplies 88994 CAPPO,Inc. Bill Meeting Registration 68995 Con lock Fuel Systems,Inc 16.922.64 Fuel card Program-District Vehicles&Monitoring Varied 88996 CMAA 60.00 Training Registiillon(Cerebra don Management Assoc.of America) 88997 Columbia Analytical Services.Inc. 1,446.00 Analysis of Wastewater,Industrial Wastewater&Slosoliris 88998 Compressor Components of California 1.248.00 Repair to Maintenance Services-(32)Coils LSVB Ignition 80999 Consumers Price&Supply Cc 1038 17 Flemming Pads&Supplies 89WO Coromnte E•cress 91931 Office Surokes 89MI Counts pm Educal Ma^dka e^i 59FM 1•s»•+q neural 89002 County of Connote AA on,Cpm-ntM 35M En••Oxhmeml Permit 89003 County or Coal AW rod Com•Oped 21950 E—pschmem Penn-1 89004 County of Orange AW,WF Controls, 10500 E-veachmem Permit 89005 County of Orange Auditor Compeller 52 74 Communication Charges for February 2W 7 89006 CSI Services.fog. 368976 Professional Services-Corrosion Inspection 89007 CWEA Anmml Conference 2.29500 Training Registration&Meeting Registention-Division 820(Cslifal Witter Environment Aseooallpm7 89008 Deamomp Intodpm.Iw. 695.00 Mini Blinds-Repairs&Installation 89000 Dr.Harvey Goldstone &60.00 Safety GIwmm 89010 Eagle Protection of California 27500 Bldg.Security Alarm Services-No.County yard 89011 Employee Benefits Specialists,Inc, 9.460.79 Reimbursed Prepaid Employee Medial&Dependent Care 89012 Engineering News Recent Ill Books&Publications 69013 Eroimnmentsl Resource Associates 1.397.94 Lab Pans&Supplies 89014 Ewing Irrigation Industrial 285.70 Landscape Irrigated Paris&Supplies 89015 FEDEX Corporation 2VAS Freight Services 89016 Franchise Tax Boats Sol Wage Garnishment 89017 Fryc Eledronta 12.92 Computer Supplies 89018 Gaoliviy,Inc. 2,780.00 Professional Services-Flaw Monitoring At OCSO Manhole 89019 Goldenvmst Vdmppw Service 810.00 Repair&Maintenance Services-Trenching B Hauling Did and Misp.Clean-Up Services 89020 Government Finance Officers Association 480.00 Membership 89021 Hooker Equipment Company 161.85 Marc Vehicle,Pads,Repairs&Service 89022 Hamilton Packard Company 11,580.17 (1)HP Server 89023 Home Depot 1.643.68 Mix.Repair&Maintenance Material 89024 HOW Magazine 39.96 Books Is Publications 89025 Hub Auto Supply W7.08 Vehicle Parts&Supplies 89026 Indiana Child Supped Bureau 290.00 Wage Garnishment 89027 Industrial Distribution Group 139.99 Mechanical Pads&Supplies 89028 Industrial Thrombi Products,Inc 2,874.92 Inventory Fasteners 89029 Internal Revenue Service 3M.00 Wage Garnishment 89030 InO.Union of Oper.Eng.AFL CIO Local SO 4.630.90 Dues Deduction 69031 Imne Ranch Water District 6.75 Water Use 89032 Jays Catering 501.75 Meeting Expenses 89033 JV Industrial Companies.Ltd. 2,302.00 Repair&Maintenance Sevens-Gear Box Keyvrey 890M Keleher Insulation,Inc. 1,188.00 Repairs&Maintenance-Pipe lnsutalion all Kelly Paper 345.32 Paper 89M Kfarce,Inc. 686.40 Temporary Employment Services Ill Count Order 15000 Wage Garnishment 89038 Wcct's Gourmet Foods.Inc. SSW Meeting Expense X WmNWiE%CEL.EbVleNP6MLRE1Cbmc Pad ReporNeedtmm•Pat Room-03-15ALm 10 Page EXHISITA a.,. 9 I'ly T Claims Paid From 03101/07 to 03115A17 Warrant N. Vendor Amount Description 89039 Maintenance Superintendents Assoc. 200.00 Training Expense 89040 Malcolm Pimie,Inc. 15,077.68 Professional Serviess 1.2.4 89041 Mandic Motors 85.00 Towing Services 89D42 Meyer HoBmen MUCann,PC 18.285.00 Professional Semites-CIP Audit 89043 Mission Uniform Service 155.12 Uniform Rentals 89044 Court Order 225A0 Wage Garnishment 89045 National Bond&Trust 2,955.12 U.S.Savings Spends Payroll Deductions 89046 National Plant Services,Inc 460.00 Vacuum Truck Services 89047 New Century Channel Group 2.839.50 Broil Control Services-PIGNX-Dewafertu0 Bldg. 89048 New Horizons.C.L.C.a Santa Ana 16,760.00 OnSi a Technical Professional Training 89049 Nexlel Communi®bou s 943.56 Air Time 89050 NRC Environmental Services 323.52 Waste Oil Pick-Up&Disposal Serving; 89051 OCB Reprographics 17,245.66 Printing Serves-MO 112BI00 89052 OCEA 610]8 Dues Deduction 89053 Office Depot Business Services Didsion 2.411.43 Office Supplies 89054 Orange County Coasikeeper 50.00 Meaning Registration-Division 620 89055 Orange County Sheriff 538AD Wage Garishment $9056 Oxygen Service Company 1,705.99 Specialty Gases&Lab Paris&Supplies 69057 Pacific Mechanical Supply 973.59 Plumbing Supplies 89058 PCS Express.Inc. 394.93 Courier Serves 89059 Peace Criticism Council of CA 1,620.00 Dues Deduction,Supervisors&Professionals 89060 PerkinElmer Las 1,439.36 Lab Instrument Maintenance-MAS Spectrometer 89061 Platinum Advisors 5.000.00 Legislative Advocacy Efforts 89062 Pad Supply 12.80 Repair&Maintenance Materials-2irm Anades 89063 Postmaster 868.00 Post Office,Box Rental 89064 Power Design 1992.56 Electrical Paris&Supplies 89065 Pr,Inc. 74.09 Lab Paris&Supplies 89066 Protect Management Institute 154.00 Membership 89067 Propelled 9,495.00 Video Inspections-3T F Primary influent Line 89068 Rainbow Disposal Co. 3,104.33 Trash Removal 89069 RS Hughes Co.,Inc. 69.38 Paint Supplies 89070 RSA Sutler Sad Products 1715.92 Spell Malenals 89071 S&L International.Inc. 23.0WAS Speffware&Maintenance-Websince 8SD72 SCAP 440.00 Meeting Registration-Div.660 89073 Scott&Mermaid 27.50 Legal Services-Labor,Employee Relations&Representation 89074 Siemens Water Technologies Corp. W.71 Service Agreement-DI Water Systems at Plants 1&2 89D75 Sk ffinarh Seminar 1.134.D0 Training Registration 89076 Sunset Ford 224.40 Vehicle Paris&Service 8W77 Technical Service Group,Inc, 1,3111.60 SCADA System VAX Service Agreement 89078 Termini,international 330.00 Pest Control 89079 Thompson Industrial Supply.Inn 1,394.44 Mechanical Pads&Supplies 89080 Times Community News 56.25 Notices&Ads $9081 T-Mobile 107.84 VMreless Alr Time 89082 Tend Painting,Inc 944.00 Painting Services 89083 Tomes Look&Safe Service&Sales 35.56 Locks&Heys 890M Tula RanW&tagan Farms 14,355.23 Residuals Removal MO 3.29.95 89085 The Unisource Corporation 414.54 Office Supplies N WepNWE[CEL EIeV]%4PSIUREtC4erw Palo ReparNWTetyme Pel4 Rgwn-0Y150].Yr EXHIBIT A finol. Page 8 of 10 4117RD37 v Claims Paid From 03101107 to LVISIW Warrant No. Vendor Amount Description 89086 United Pacific Servicas,Inc. 1,755.00 Removal 8 Disposal of(9)Palm Trees at Pit.2 89087 United Pascal Servim 36.21 Parcel Services 89088 United Way 60.00 Employee Contributions 890a9 Vernes Plumbing 404.06 Service Contract-Testing 8 Can.BankOow Deeicaa al Pile. 1 8 2 8 Pump So, 89090 Vortex Coi 2,732.86 Door Repairs B Gale Msintenamn at Pit, 1-Vadous 89091 Wastewater Technology Trainers 425.00 Training Regisestion 89092 WEF 462.00 Membership-Water Environment Federation 89093 Xerox Corporation 18,951.97 Copier Leases 8 Managed Services 89094 Xyon Business Solutions,Inc. 2.760.DD Temporary Employment Sessions 89095 Count Order 597.60 Wage Garnishment 69096 Zee Medical 581.69 First Aid Supplies 89097 Jeffrey L.Armstrong 466.36 MeetinglTruntag Expense Reimbursement 09098 C.Eddie Baker 388.61 MeetingRrensng Expense Reimbursement 59099 Layne T.Baroldi 225.31) MeetingrTruni g Expense Reimbusement 89100 Michael J.Berrett 894.81 Meeting raining Expense Reimbursement 89101 Antonio seven. 55.00 MeetingRrairrng Expense Reimbursement 89102 Richard A.CaslUlon 658.53 Meeting/framing Expense Reimbursement 89103 Kelly J.Christensen 945.09 Mesti gRreining Expense Reimbursement 891" Mark A.Es itror 613.78 MeaergRraining Expense Reimbursement 89105 Kimberly R.Forman 572.65 MeetingrTreiMng Expense Reimbursement $9106 Robent P.Glliroili 209.81 Meeting/Traning Expense Relmbunemenl 89107 Michael I.Gold 62970 MsetieglTralning Expense Reimbursement 89108 Ruben Gomez 559.37 Mcating/Training Expense Reimbursement 89109 Dale 0.Henderson 18.00 MeelinglTraining Expense Reimbursement 89110 James D.Herberg 252.40 MeelingiTraining Expense Reimbursement 89111 Michelle R.Hetherington 799.00 MeetingRraining Expense Reimbursement 89112 Robert Holdmen 18.00 Meeting raining Expense Reimbursement 89113 Thomas A.Hunt 89.63 MesOngRraining Expense Reimbursement 89114 John Kavoklis 894.81 MesbnglTerning Expanse Reimbursement 89115 Igor Kim 576.88 MeaUng/7ratri ng Expense Reimbursement 89116 John 0.Linder 50.00 MesBngRraMMg Expense Reimbursement 89117 Theodore M.Mauter 556.14 Mse9ng/Trelning Expense Reimbursement 89118 Kathleen T.Miles 102.23 Meeang?ralning Expense Reimbursement 89119 Midland D.Moore 323.00 MsedngrTraining Expense Reimbursement $9120 Andrew H.Nau 40.00 MeeUngrTraining Expense Reimbursement 69121 James D.Niswongar 718.01 Meshng7Tralning Expense Reimbursement 89122 Vamh Phased 978.33 MmUn97Training Expense Reimbursement 89123 Anthony R.Pimental 1,084.45 MnaBngiTralning Expense Reimbursement 89124 Victor A.Salinas 23.00 Mseling7Tni Expense Reimbursement 89125 Cud V.Shelp 660.00 Meeltng/Tralnlrg Expense Reimbursement 89126 Duane T.Smith 709.83 Mesgng/Trainicg Expense Reimbursement 89127 Phillip J.Sullivan 26.00 MaeangRrelnlrg Expense Reimbursement 89128 Mahn Telebi 943.24 MeeUng7Deining Expense Reimbursement 89129 Jana H.Tram 874.45 Meeting/Treini g Expense Reimbursement 89130 Paula A.Zeller 953.07 Meadng7raining Expense Reimbursement Total Accounts Payable-Warrants 8 18,84], 4848 H WepNWENCELduMI NPSHARMIaims Paid RospnouVi CImms PaiE t epan-0Y15V x15 EXHIBIT A snnmse Page 9 of 10 411=097 Claims Palo From OY011W to OY15IW Warrant No. Vendor Amount Description Pevroll Disbursements 36305 - 36306 Employee Paychecks $ 3,656A1 Interim Payroll-Termination 0318107 36307 - 36394 Employee Payrllecks 12T,060.55 Biweekly payroll 03114W W395 - 36411 Employee Paychecks 50.150.31 Interim Payroll-Regramenis B Rates OY131074IY15N7 137954 -138523 Dlred Deposit Statements 1.152=.M Biweekly Payroll DY14W Total Payroll Disbursements $ 1 Wine Transfer Payments OCSD Payroll Taxes 8 Contributions S 662,858.69 Biweekly Payroll 03114W Deepens Bank 465,430.39 Series 200fi Certificales of Pa tiopetion February Interest Payment Bank of New York 114 202.67 Senes 1993 Refunning Certificates of Participation February Interest Payment Total Wire Transfer Payments 1,242, Total Claims Paid 03/01197-0311ti107 1,431, M Ve00.aME%CFL LIa1]]PAPSXRRE1CPimi P20 Repara3elnrlmma Pall Repan-W-15L]ffi EXIIIBITA 1r%21M Page 10 of 10 elaaam Claims Paid From 03I161W to 03131/W Warrant No. Vendor Amount Description Accounts Payable-Warrants 89131 Bar Tech Telecom,Incorporated 9 40,000.00 Telephone Maintenance Agreement 89132 Bled&Vaaloh Corporation 111,662.83 Engineering Services J-77 If Pt-102 89133 Blue Cross pl Celibmle 413714.53 Mediullnsunnce Premium 89134 Della Dental 57,09.35 Dental Insurance Plan 0135 Earth Tech,Inc. 121,410.94 Professional Services 1.24.Pi-106,Pt-100If 3.58 $9136 Ecology Control Industries 40.442.09 Gm&Screening Disposal 89137 HDR ErglneenN,Inc 79,383.96 Professional Services Pt-82&P1.101 891M Keiser Foundation Hee0h Plan 59,215.04 Medical Insurance Premium 89139 Kemira Water Solutions,Inc. 63,248.84 Ferric Chloride 891Q Malcolm Firms,Inc. 36,D1 D.59 Professional Services J-79 89141 Pioneer Inc 153,481.10 Sodium Hypochlonle 89142 Southern California Edison 308,379.01 Pourer 89143 Tule Renchieetagan Farms 258,081.07 Residuals Removal MO 3.29.95 891" U.S.Geologies Survey 25174.63 Professional Services-Deployment of Current Masts o5 Huntington Beach from 7N6 to 11N6 89145 USE Financial Services,Inc. 36,505.46 Remarketing Fee-2000A&B Sense Advanced Refunding COPS 89146 US Peroxkle,L.L.C. 196.681.80 Odor&Corrosion Control Ttyatmant for Coll.By..;Hydrogen Peroxide&Ferrous Chloride 89147 Ameron International 466,10545 Construction 1.24 69148 Barnard Soleteoche Jolts Variety 2,189,412.00 CmetmNan 140A 89149 A W Clestedon 4,609.06 Mechanical Paris&Supplies 89150 Machete Standards,Inc. 66.00 Lab Pads&Supplies 89151 AecuStardard 207,54 lab Pam&Supplies 89152 ACE Ergonomics 145.46 Repair&Maintenance Materials-Arm Kil for Office Chair 89153 AIHCE 835.00 Meaning Registration-Division 153(Amemom Industrial Hygiene Confer.) 891U Southern California Edison 23,110.23 O&M Agreement Oxy,Gen,Sys.MO 84-89 89155 Atr9as Safety,Inc. 1,41&96 Safely Supplies 89156 AKM Consulting Engineers 20.439.60 Professional Services-Part-Time Dig Alert Technician:and 7.36.7.39&741 89157 Alhambra Foundry Co..Ltd. 2.486A4 Manhole Frames&Cones 89158 Ancona Instrument 1,240.85 Instrument Retairo&Calibration Service 89159 AT&T Universal Biller 737.20 Telephone Service 89160 AT It T CalifomialhiCl OWES Telephone Service 89161 Basic Chemical Solutions.L.L.C. 22,196.79 Sodium Sleuths&Sodium Hydroxide 89162 BC Ware Rope&Rigging 1,310.3D Mechanical Parts&Supplies 89163 Bee Man Pest Contra,Inc. 175.00 Pest Central 89164 Btymar-Fiedler&Assoc..Inc. 1,207.29 Air Compressore 69165 Brown&CaloVRil 693.01 Professional Services-Business Risk Analysis 891M Cameron Compression Systems S M.93 Mechanical Parts&Supplies 89167 Camfil Fee Saes 347.08 Mechanical Parts&Supplies 89166 Camp Dr&Mckee.Inc. 1.916.02 Engineering Service J-7141 89169 Carver Track 99.00 Training Registration $9170 CASOA-California Stemavater Quality 223.78 Boas If Publications 89171 Cingurar Wireless Airtime 3,106.37 V4reless Services 89172 CMAA 540.00 Meeting Registration-Div.760(Construction Management Assoc,of America) 89173 Columbia Analytical Services,Inc 1,525.00 Analysis of Wastewaler.Industrial Wastewater&Bimiclids 09174 CSI Computational Systems 3,590.61 Someone Upgrade-AMS Machinery Manager 89175 COMUS International 116.23 Elachial Parts&Supplies SOTS Consolidated Oecinal Oisebutons,Inc 936.78 ElecUlal Parts&Supplies 89177 Construction Book Express 74.90 Publications;&Books 89178 Consumers Pipe&Supply Co. 178.55 Plumbing Pads 8 Supplies H WpNeaE%CEL4re1tM,RP61URE1GLme POW Repm]N]1Clelmr Oa`d ReMt-WJ147.gr EXHIBIT B wvz oe Page 107 411842007 Cleima Paid From 03116107 W 0W31MT Warrant No. Vander AmpuM Description 89179 Corporate Express 1,359.57 Office Supplies 89180 Conech Engineering 241.45 Pump Supplies 89181 Caunferyatl Enterprises,Inc. 1.836.57 Mecamicel Pans,Supplies&Tools 89182 County of Orange-Health Caro Agency 19.649.00 Waa1e Discharge Inspection Program Fees 89183 CSAC Excess Insurance AWgrily 3,134.58 Employee Assistance Program $91" CSI Be....Inc. 1,229.92 Professional Services-Corrosion Inspection 89185 Curley Wholesale Eleclnc.Ix. 61.96 Mectaeniwl Parts&Supplies W186 CWEA Annual Conference 325.00 Training Registration(Califomu Water Emichmenl Associated) M187 CW MemEershlp 660.00 Membership(Calif.Water Environmenl Assoc.) 891M David's Tree Send a 4,500.00 Tree hl Service 89189 DOS Engineering,Inc, 1.170.00 Professional Services-Grant Mamgement 89190 Della Foam Packaging Products,Inc. 147.58 Lab Pens&Supplies 89191 Dunn Edwards Corporation 644.09 Paint Supplies 89192 Ecology Tire,li 522.25 Waeb Management-Tires 89193 Electrical Reliability Services 2,120.00 Professional Services 1.24 691N Employee Benefits Specialkq,Inc. 2.006.00 Reimbursed Prepaid Employee Medical&Dependent Cara 89195 Enchanted,Inc. 2,500.00 Ocean Monitoring&Outlet Inspection&Maintenance 89196 EnWrostretegies,L.L.C. 1,817.42 Legal Services-Kam Count,ElRfLkigakom 89197 EquaLMor 3,182.82 HydrxMork Acid 89198 Equipment Specialties Co. 4.672.87 PiuMe Trash Pump 89199 Ewd,Ingstion Industrial 207.04 Lendscope litigation Pane&Supplies 892M FEDEX Corporation 510.10 Frelghl Service 891 Fist American Real Estate Solutions 724.60 OrnUrro Orange County Property Information 892M Fisher Scientific 3,530.48 Lab Pam&Supplies BOND Forken Engineering&Surrayirg.Inc. 3.930.21 Surveying Services-Various Capital Projects 89204 Fred C.Gilbert Co. 298.70 Oil Leval COMrelier 89205 Demand Callahan Company 2,071.38 Chemicals 891 Giedid- a hell,Inc. 276.38 Mechenicel Pans&Supplies 89207 Goademmat Window Besides 670.00 Groundskeeping Si 892M Grainger,Inc. 1,253.19 Mechanical Parts&Supplies mid Pump 892M Harbour Engineering Group 11,503.90 Mechanical Pans&Supplies M210 Hanoi Primrwas Ice 70.00 Ice For Samples 89211 Harrington Industrial Plastics.Inc 705.21 Mechanical Parts&Supplies 89212 Health Science Associates 1.271.70 Proessional Services-Asbestos Study 89213 Hevided Packard Company 6,605,49 (21))Laptop Notebook Warranty Agreements.(5)HP PC'$ 89214 Home Depot 872.40 Misc.Repair&Maintenaece Material 89215 Hub Auto Supply 1,017.92 Vehicle Parts&Supplies 89216 IM lntemadonal Cmis Council 150.00 Membership 89217 Industrial Distribution Group 695.95 Mechanical Pans,Supplies,Locks&Toots 69218 Industrial Metal Supply 159.04 Metal 89219 Indent.Engineering 12.432.33 Sewedlne Video Inspections 89220 Irvine Rance Water District 40.59 Water Use 89221 Jays Catering 732.44 Meeting Expenses 892M lohnstond Supply 103.12 Electrical Pans&Supplies 892M Joshua Caney Corporate Training 3.945.00 Training Regidundi m 89224 Kay J.Greeley 1,276.00 Tree Inspections-Eucalyptus 09225 Klelnfeder.Im. 10.228.76 Soils,Concrete&Other Melanie Testing 89226 Lab Saf iy Supply.Inc. 886.17 Lab Pens&Supplies 89227 Lee&Ro,Inc. 15 495.00 Professional Services P247-3,5.51&5.52 N NaphNM.E%CELdaVNMPSHaREYJe:mf Pard Rap iahl ndi Pad Fears.03,3W err EXHIBIT B dinalm Page 2 of 7 wh6o0p7 Claims Paid From O3/16107 M 03131/07 Warrant No. Vendor Amount Description 139228 Leeward Shelving&Filing Systems US8 Office Supplies 892N M.J.Sclu8 and Associates,Inc. 3.585.00 Professional Services-Cathndk Protection Current Testing-High Pressure Gas Lines 892M MCJunkin Corporation 190.14 Mechanical Pads&Supplies 89231 MCMasler Can Supply Co. 1,"8.16 Mechanical&Lab Pans.Supplies&Tools 89232 Medlin Controls Co. 190.65 Instrument Pans&Supplies 89233 Moodys Investors Service 5.000.0O COP Rating Maintenance Fees-Series 1992 Refunding COPS 892M Munidpal Water District of O.C. 823.53 Ma ding Registm0on-Division 110 89235 National Plant Services,Inc. 90DW Pumping Services-Plant 1 Dewesring Bldg.WM Boiler Areas&Road Dmins 892M Neutron Products.Iro. 11.560.01 Amore Polymer 89237 Newark Electronics 1.604.01 Instrument Supplies 89238 O C Tanner Rsmgnilion Company SUM Employee Service Awards Program 89239 OCB Repographics 12.693.97 Printing Service-MO 1126N0 89240 Office Depot Business Services Oivision 469.24 Office Supplies 89241 Omegs Industrial Supply.Inc. 1.134.16 Janitonal Supplies 89242 Oneswrce Distributes.Inc. 2.053.82 Electrical Pads&Supplies 89243 Orange County Hose Company 31.64 Hydraulic How Supplies&Pans 892" Orange County Pest Control,Inc. 75A0 Pest Control 89245 Orange Fluid System Technologies.Inc INN Plumbing Paris&Supplies 89245 Donlan Service Canpany 60.r Sonority Gress 89247 Pacific Mechanical Supply 90.89 Plumbing Supplies 89248 Parsons Water&Infrastructure,Inc. 21855.17 Pofessonal Services J-35-1 89249 PERNIASEAL 491.34 Lube Oil 89250 PL Hawn Company,Iro. 467.17 Electrical Paris&Supplies 89251 Poly l Inc. 17.195AM Cationic Polymer MO 3.11-92 89252 Ponton Indualkes.Ix. 210.49 FJecmcal Pads&Supplies 89253 Pon Supply 64.83 Lab Paris&Supplies 89254 Primary Source Office Furnishings.Inc. 3.866.01 Office Furniture&Miser Equipment 89255 PIncare Mok Injury Caner 295.00 Medical Screenings 892% Progressive Business Publications 2W.W Subscription 89251 Pmtlenlial Overall Supply 2.970.68 Unifams&Related Amides 892M 0 Air Car.-Div.of Pump Engineering 1.604.38 Air.at&Separator Filters and Oil Coolants 89269 R L Abbott&Associates 3.000.00 Kam County Bicsolids Consulting Services 89260 Ram for Rent 4.879.70 Pdowaional Services-Sludge Bypass System&Testing-Pt-37 89261 Rafnin Instrument LLC. 417.97 Lab Pala&Supplies 89262 RBF Consulting 5,101.02 Engineering Seduces 2.24-1 89263 Reader Corporation 39780 Lab Pala&Supplies 89264 Riordan Assocates 3.000,00 On-Site Training-Incident Command 89265 Rrokhonl College Continuing Education 799.00 Training Registration SWIMS Royale Cleaners BW Dry Cleaning Services 89267 Science Aypfirarpru Inspirational 23.052.S7 Oman Monitoin MO".94 M268 Scientific Construction taboratoies SAWN Prof.Services-Corrosion Management 89269 Scott Specaft Games,Inc 72.41 Demurrage 89270 City of Seal Beach Finance Dept. 201.85 Water Use 89271 Shureluck Sales&Engineering 2.617.26 Mechanical Parts&Supplies 89272 Sigma-Aldrich,Inc. 5,529.57 Lab Pads&Supplies 892T3 SKC Week Inc. 13 M Lab Pals&Supplies 89274 So Cal Gas Company 9121.55 Natural Gas Stirs Southern Calimria Sesc 255A0 Meeting Registration 89276 Sparklers 2,220.W Drinking WatedCooler Rentals H'Welm WEE%LEL cfl ](WnSHnREClrms Gas Repmm%TClams Pad Rood-OM147.W EXHIBITB hood. Page 3 of] y 6Q(07 Claims Paid From 00116107 to UBI31y07 Warrant No. Vendor Amount Description 89277 Square 0 Company 7.600.00 Laining Registration 89228 SlandeN and Poors Corp. 5A00.00 COP Cpnhact Service 89279 Summit Steel 1.303.01 Metal 89280 Sunset Industrial Pads 298 01 Mechanical Pella B Supplies 89281 Testameria Ontario M7,41 Analystsot Biosolida 89282 The Smndual Insumnce Company 2.615.63 Evewtive Disability Plan Premium 89283 Thermo Electron Corp. 1.803.84 Lab Pads 8 Supplies 892U Thompson lndwhial Supply.Inc. 6.950.75 Mechanical Pads B Supplies 89285 Times Community Nees 256,25 Whose&Ads 892% TAT/Systems Engineering,Inc. 937.50 Sallwere Services 89287 Toshiba InbmaBonal Corp 663.35 Instrumenl Pads 8 Supplies BUM Trade Service Corporation 93.74 Computer HardwanwSoUtireMlaintenance 89289 Truck&Auto Supply,Inc. 46.01 Automotive Pads&Supplies M290 U.S.Pirmamampeia 366.00 Lab Pads 8 Supplies 89291 UC Regeets 8.846.52 Rofesaional Servims-Stmtegk Process Study Research Prgem 89292 U8m Scientific 123.50 Lab Pads 8 Supplies B9293 United Parcel Service 1.357.33 Pascal Services 89294 US Armndilionirg Distributors,Inc. 1,090.87 Mo. BUBB Vmpsx,Inc. 2.466.50 Instrument Pads 8 Supplies BUSS Varian.Inc. 52.26 Lab Pads&Supplies 89297 Version Celolomis 132.40 Telephone Services 89298 Vision Service Plan CA 9.857.88 Main,Service Premium 89299 Vocmm USA,L.L.C. 445.51 Safety Video Program 893W VVIR Scienific Products 5Al2.84 Lab Pads It Supplies 89301 The Wackenhut CorporatOn 3.582.48 Security Guards 89302 Wadsi s Automation North America 3.481.00 LSVB Spark Plugs 89303 Waters Corporation 1,147.50 Training Registration 893M WEF 304.00 Membership-Wafer Environment Fedembon 89305 Tecemo C.Alpo 725.07 MeetingRralning Expense Reimbursemem 89306 When M.AINr 330.30 Meeting/Tmining Expense Reimbursement 89307 David Andrade 18.00 Meeting/Training Expense Reimbursement 89308 Layne T.BaroMi 400.00 Me.ing/Training Expense Reimbursement 89309 Brayan E.Stair 36.72 Memngff.n rng dupers Reimbursement 89310 James E.Contain 390.00 Meeting/Tminbg Es anus Reimbursement 89311 Gall Gene0 211.78 Meeing/Trainirg aiceme Reimbursement 89312 Roped P.Ghtu lli 1.339.15 Meeting/Training Expense Reimbursement M313 Tod E.Hayms 340.40 Mestong/Tmining Evpmse Reimbursement 59314 Ingrid G.HeRebrend 26.00 Meeting/Traoning Expense Rembusement 89315 Tom H.Hopkins 18.58 Meefingffminin9 Expense Reimbursement BUTS Lone Haso 2T0.92 MeepngnTraining Expense Reimbursement 89317 Vladimir A,Kogan 1,055.61 Meebngrtraoning Expense Reimbursement 89318 Christian. 28.44 MeetinglTnusirg F Anne Reimbursement 89319 Curios R.Mason 630.26 MeelingrTraining Expense Reimbursement 89320 Todd A.May 9".37 Meepng?raining Expanse Reimbusement 89UI Samuel L.Mpwbray 616.23 MemingRreining Expense Reimburement 89322 Philip Peterson 164.00 Meetirg?rafning Expense Rembursement $9323 Gary V.Prater 349.35 MedngrTreirdrg Expimm Reimbursement 89324 Alan D.Ralph 00.28 Meeting/Timnmg Expense Reimbursement 89325 Edith M Smith 783.35 Meeting/Traming Expense Reimbursement H Wee Wes,E%CELMsJWMPSHARMWsw Paid algpNNTGtlnI Pre awn-MIa].W EXHIBIT B slip% Page 4 of 7 w1e20. - P Clime Paid From 03/16/07 to OL31107 Warrant No. Vendor Amount Description 893N South Coast Ar Quality Management Dist, 4.022.63 Permit Fee-FE06-02 89327 City of F.nmm Valley 38.621.26 Water Use 89328 Earth Tech.Inc. 494.026.90 Professional Services 1.24 8029 Ecology Contra)Industries 55,176.59 Goo It Screening Disposal 89330 Malcolm Pmue,Inc. 152.147.90 Professional Services P2.80 89331 Occidental Energy Marketing,Im 74,577.44 Natural Gas for CmGmuCOGen 89332 Orange County Water District 1,983,134.34 Joint GWRS Project J-36 89333 Woodruff Spradhn&Smart W.682.84 Legal Services MO 7.26-95 893M Steve P.Rados,Inc 741,926.61 Construction 1.24 893M Union Bard of Caiifo rna 82,436.29 Construction 1-24,Retention 893M AIHCE American Industrial Hygiene Confer 900.00 Meeting Registration-Dv.153 89337 Air Uouide America Corp. 1.090.98 Specially Gases 89338 At,.-West 8.40 Demurrage 89339 APOS Systems.Inc. 4.200.00 Software&Maintenance Services-Bursting Manager for Crystal Enterprise 89340 Aspen Publishers.Inc. 288.18 Publication) 89341 AT It T Universal Bitter 1,122.01 Telephone Service 89342 AT&T CaliMmiati 2,579.54 Telephone Service 69343 American Telephone&Telegraph Corp. S." Telephone Service 89W Atlas Underground,Inc. 4.900.00 Exravalian&Removal of Undegound Stange Tank.Back5lling&Compaction Seraph; 89345 Awards&Trophies Company 38.96 Awards If Plaques 89346 California Dept.of Child Support 1.240A2 Wage Gamishment 89347 Calibrate Recreation Company 2,488.21 Boal Sfip Rental Fees for Ocean Monitoring Vessel Nerissa 89US Cabomla Relocumn Service.,Inc 49DW Olfics Fifes MovingRiebcown Services 89349 Compressor Components of Califorms 19.323.63 Repair&Maintenance Services-(32)Coils LSVB Instion 89350 Consolidated Electrical Distributors,Inc. 19.33 Electrical Paris&Supplies 89351 Cadre Tapia SP2.50 Reconciliation User Fee Refund Program 89352 Corperale Express 477.77 Office Supplies 89353 CR&R,Inc 1.646.96 Commit.Rentals&Waste Dispcxl Service 893U Culligan of Orange Cowy 50.65 Meint.Agreement-Can Gen Wither Softener System 89355 CWEA Annual Conference 2,110.00 Training Registration(California Water Environment Association) 893M CWEAMembership 154.00 Membership(Call.Vital.Envirommem Assoc.) 89357 DavnTa Tree Service 2,075.00 Tree Main[.Service 89MO OHL Express USA,Inca. 8285 Freight Services 89359 DommeMlmaging Techrologies 1,581.77 Scanning In Electronic Media Services-Time Sheets&Payroll Records 89MO Employee Benefits Speoalists,Inc. 9.48519 Reimbursed Prepaid Employee Medical&Dependent Care 89381 ENS Resources,Inc. 10,000.00 Professional Services-Leglslative Adimcahe 89382 Ewing Inigatlun Industrial 425.02 Landscape Irrigelion Pan&Supplies 89363 FEDa Corporation 20.40 Freighl Services 89364 Franchise Tea Board 585.17 Wage Garnishment 89365 Franklin Covey 2A3.00 Office Supplies 09366 Gilled Cones 788.50 Reconciliation User Fro Refund Program 89367 Global Awards,Inc (HU SS Stainless Steel It Plastic Asset Tags 893N Goldenwest NAndpw Sendre 160.00 Grourdakeeping Services 89389 Gyms Systems 5.671.77 Sollware Maintenance&Support-On-Site Training Wvard M370 Home Depot 1,292.39 Mix.Repair&Maintenance Material 89371 Hope H.I /lHAC 640.43 Put iulion-Walnuts Ne ntletlers 89372 Indiana Child Support Bureau 290.00 Wage Garnishment 89373 Internal Rename Service 175.00 Wage Garnishment 89374 Internet Sewriy Systems,Ino 2.219.45 Scftwere Maintenance Agreement H dePmeTE%LEL EiN21MPSXI.RErLlaime Pat Relae2WTgans Pelf Repem-0N31-07.tle allIBIT S welmc Page 5 of 7 NIM2007 Claims Paid From 031IMT to 03I31107 Warrant No. Vendor Amount Description 89375 Ind.Union of Open.Eng.AFL CIO Local 501 4,604.81 Ouse Detluction M376 Jays Calenng 1,343.65 Meeting Expenses 89377 Coud Order 150.OD Wage Garnishment 89378 Lmman Eduwtpn Services 349.00 Training Registration 093n Luri's Gourmet Fonds,Inc. 70.00 Meeting Expense 89380 Mannus5 ntific 79.30 Lab Parts&Supplies 89381 Media Resunctng Syslems,Inc. 3,200.00 Repairs&Maintenance Semces 8082 Mass COndidaletl Water Dabim 41.79 Waler Use 893M Midway Mfg.B Machount;Co. 6,141.75 Mechanical Palls&Supplies 89384 Court Order 225.00 Wage Garnishment 89385 N tries.Inc 16.500.00 SoBware-Perpetual Licenae for Oracle Data Base-Enrpnse Edition,Went &Supporl 89386 National Bond&Trust 2,958.12 U.S.Savings Bonds Payroll Deductions 89387 The Norco Companies 374.40 Mail DMivery Service 893M NRG Thermal Services.L.L.C. 9.548.99 Faster&WIN.Services-NRG Egins 641 893M OCB Reprographics 127.65 Pdrung Service-MO MAMD 893M OCEA 601.53 Dues Deducton 89391 Ofice Depot Business Services Division 1.664.05 Offine Supplies 89392 Orange County Chapto-ISCEBS 60.00 Meeting Registration-Division 240 89393 Oxygen Service Company 298.69 SpeaaM Gases&Lab Pads&Supplies 893W Peace Officers Council of CA 1520.00 Dues Deducoon,Suparvisars&Professionals N395 Resnik Corporalen 1,200.00 Training Registration 893% RMS Engineering&Design,Inc. 5,775A0 Professional Services-Stuchual Assessment Digesters F&G,Confined Spare Entry.&CAD 89397 RPM Electric Momrs 1,379.16 Motor&Mots Repairs 89398 Rulan&Tucker,L.L.P. 25.D0 Legal Services 89399 SBC Log Distance-Sou mmsslom Bell 1,12151 Telephone Services 89400 Scebel Voice&Data,Inc. 2.284.79 Telephone System Maintenance 89401 Southern Calilcmie Edison 43.32 Power SU02 Sou hem California Trade Service 11,074.60 Flat rical ERuipment Service Contract 89403 SSPC The Sopery for Preach"Cowart; 95.00 Membership 89404 Terminix lntemalenal 470.00 Past Control 89405 Testamenca Ontano 90.00 Analysis of Besdids 89406 The Orange County Register 703.80 Notices&Ads 894D7 The Walking Man.Inc. 950.00 Prins,and Distribution for Vanous ConsWdion Projects 89408 Thongs V.Getinger 500.00 Lab Analyses 69409 Thompson Industrial Supply,Inc. 122.33 Mechanics Pans&Supplies OU10 Time Warner Communicators 51.07 Cable Services 89411 Todd Painting.too 1,646.00 Painting Semces 89412 Tonys Lock&Safe Service&Sales 501.74 Locks&Keys OW13 Tortuga Pool Services 310.00 Maintenance Agreement-WeekN Clams,of Atrium Pond 89414 Tovmsend Public Aflass 5.000.00 Legislative&ExecNive Advocate for Grant Funding 89415 Tremor Incorporated 3.680.00 Repays&Maintenance Svm.-Installation Of Soft Resistant Walk Pads on Compressor Bldg.Roof 89416 Trench Plate Rental 217.75 Plate Rentals 89417 Truck&Auto Supply,Inc. 20.34 Automotive Pan&Supo n 89418 UC Regenb 125.00 UCI Earth Day Information Booth Application Fee 89419 United PaMfie Semce.,Inc. 600.00 Landscape Maintenance at Plants 1&2 and Pump Stations 89420 United Parcel Service 100.63 Parcel Services SN21 United Way 60.00 Employee Contributed. OW22 Verimn California UAD Telephone Sen4cee B9423 Van.Corp. 945.94 Door Repairs-Purchasing BMg. XWpmnAEICFI-dor?3PAP E`4 ma PWG NooWDeTGeMe PsWRegn.M1,o7.xn EXHIBITB amylaa Page 6 of 7 411M.7 Claims Paid From OLt6O7 to 0013107 Warrant No. Vander Amount Description 89424 Water 3 Engineehng,Inc. 4,125.08 Membership 89425 WEF 306.00 Membership-Water Emtironment Federation 894M WEF Registration Dept. 1,360.00 Mewing Registration-DMabn 620 09427 Wasdn Solutions,bm. 900.00 Outside Laboratory Servces-Core Ocean Monitoring Program 89428 Xerox Corporation 18,843.05 Copier Leases&Managed Services 89429 Tela Chaw Materials Handling,Inc. 148.46 Electric Cart Paris 894M Court Order 597.50 Wage Gamishment 89431 Matt Adams 365.68 Metongri-raining Expense Reimbursement 09432 Frank Chaves 587.28 MisonglTralning Expense Reimbursement 894M James E.Colston 306.52 Meefing/Taining Expense Rerranesamant 894M Molaid I.God 1,113.68 MeeBnglTraining EXpense Reimbursement 89435 Devid D.HaNereon 20.00 Meeting(Tralning Expense Reimbursement 894M Laurie J.Winger 75.88 MeetingfTraining Expense Reimbursement 89437 Dwid Manning 1,271.85 MemingrTaining Expense Reimbursement 89438 Simon L.Wab 690.50 Meetingrfraining Expense Reimbursement 89439 Robyn A.W11cox 1.180.50 Meetingrfreining Expanse Reimbursement 89440 City of Garden Orove 400.00 Permit Fee-P248 Total Accounts Payable-Warrants E 9.018.529.99 Payroll Disbursements 36412 - 36474 Employee Paychecks S 116.002.26 Biweekly Payroll-03 7 36415 - 36485 Employm Paychecks 23,854.42 Interim Payroll-Terminations,Resume,Reissue,Refirements(M30].03121O7,032907&03O0I0]I 138524 - 138076 Direct Deposit Statements 1.200.444 0] BlweeMy Payroll-031280] Total Payroll Disbursement S 1.341.100.]5 Woe Transfer Pwmenb OCSO Payroll Taxes&Contributions S 734.333.69 Bivreedy Payroll 03Q8O7 US Bank 689.536.54 Sense 2000 A&B Refunding;COPs March Principal and Interest Payment Total Wlra Transfer Payments E 10238)0.23 Total Claims Paid 03110106-0N31106 S 11]83.500.9] HbeplbsNEXCELNM22MPSHAREClalm[Pele RopodUCO lams Pale RaMm 0"147 cis EXHIBIT B 1.1r. Page]of] 4 642(01 BOARD OF DIRECTORS M ngoate To ad �/2s/07 AGENDA REPORT Iem Numbe Iem Numbs etb> Orange County Sanitation District _ FROM: James D. Ruth, General Manager SUBJECT: CHANGES TO RULES OF PROCEDURE RESOLUTION GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD07-06, Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD07-03, providing for the Steering Committee to start at 5:30 p.m., and the monthly Board of Directors regular meeting to start at 6:30 p.m. SUMMARY It has been determined that the starting times for the monthly Steering Committee meeting and the regular Board of Directors meeting to be held at 5:30 p.m., and 6:30 p.m., respectively. PRIOR COMMITTEEIBOARD ACTIONS Resolution No. OCSD 07-03, Rules of Procedure, was adopted in February 2007. ADDITIONAL INFORMATION N/A n vxquoa'e.ao.a na.,w n.pons�oov m.,e oge„e.A..msnaommm&.�Aomsa vrow�.oov Page 1 BOARD OF DIRECTORS Meeting Date To Bd.of dr. 04/25/07 AGENDA REPORT IemNumOa Itrd Nurniler ecu)r) Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg, Director of Engineering SUBJECT: COLLEGE AVENUE PUMP STATION REHABILITATION, PROJECT 747 GENERAL MANAGER'S RECOMMENDATION Approve a Hold Harmless Agreement with the City of Costa Mesa, in a form approved by General Counsel, to protect the City from design and construction liabilities associated with College Avenue Pump Station Rehabilitation, Project 747. SUMMARY e The current location of the College Avenue Pump Station Rehabilitation, Project 747 (Project) is within public right-of-way and is regulated by the City of Costa Mesa (City). As a condition of this rehabilitation project, the City is requiring that the Orange County Sanitation District obtain a new encroachment permit. e Per Health and Safety Code sections 4759.1 (b) and (c), the City has required that a hold harmless agreement be executed as a part of this Project that is within the City's right-of-way. This agreement is structured to protect the City from design and construction liabilities because the Project is not subject to design and construction approvals, per Government Code section 53091 (d). PRIOR COMMITTEEIBOARD ACTIONS N/A ADDITIONAL INFORMATION None AN:sa KWeirttagendatBoard Agenda ReWdM2007 Board Agenda ReWOMN07Vtem 8(c).Costa Mesa Project 747.doc Form No.M-102 Apoda Report-B rd Reread: 1M M Page 1 BOARD OF DIRECTORS Meeting Date I TCZ50/'Dlr. oaizso� AGENDA REPORT item Number Item Number s( Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Brad Hogin, General Counsel SUBJECT: County of Kern v. OCSD GENERAL MANAGER'S RECOMMENDATION (1) Receive and file Petition for Peremptory Writ of Mandate and Complaint for Declaratory Relief, County of Kern v. Orange County Sanitation District, Orange County Superior Court Case No. 07-CC0415, in connection with the Tule Ranch CEOA review; and, (2) Authorize General Counsel to appear and defend the interests of the Sanitation District. SUMMARY Please see attached memo dated April 11, 2007 from General Counsel. PRIOR COMMITTEE/BOARD ACTIONS ADDITIONAL INFORMATION ATTACHMENTS Memo from General Counsel Form Na.DW 102 Agenda Rep n-Mad Re Iwa 1106106 Page 1 1 MINUTES OF STEERING COMMITTEE MEETING Orange County Sanitation District Wednesday, March 28, 2007, at 5:00 p.m. A meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, March 28, 2007 at 5:00 p.m., in the District's Administrative Office. (1) The roll was called and a quorum declared present, as follows: STEERING COMMITTEE MEMBERS: DIRECTORS ABSENT Directors Present: None Jim Ferryman, Chair Doug Davert, Vice Chair STAFF PRESENT: Mark Waldman, F&A Committee Chair Jim Ruth, General Manager Larry Crandall, E&O Committee Chair Bob Ghirelli,Assistant General Manager Steve Anderson, Past Board Chair Nick Arhontes, Director of Operations and Phil Luebben, F&A Committee Vice Chair Maintenance Cathy Green, E&O Committee Vice Chair Jim Herberg, Director of Engineering Ed Torres, Director of Technical Services OTHERS PRESENT: Lorenzo Tyner, Director of Finance and Bradley R. Hogin, General Counsel Administrative Services Scott Baugh, Platinum Advisors Michael Gold, Legislative Affairs Liaison Jackie Nutting,Associated Builder's Contracts Gail Garrett, Committee Secretary (2) APPOINTMENT OF CHAIR PRO TEM No appointment was necessary. (3) PUBLIC COMMENTS There were none. (4) REPORT OF THE COMMITTEE CHAIR Chair Jim Ferryman reported that he and staff attended the 2007 CASA Washington DC Conference in March and met with Orange county delegates. A full report will be provided at the Board meeting tonight. Chair Ferryman and staff met weekly with SAWPA, OCW D and County executive staff and have agreed upon a tentative financial plan to fund the SARI line relocation. He outlined the plan and explained that OCSD would be repaid as the County receives its Subvention Funds from the State. Lorenzo Tyner, Director of Finance and Administration, answered questions regarding the financial plan's potential impact on OCSD's rates. He and General Counsel will draft an agreement between OCSD and the County for consideration by the governing boards of each agency. This will be reviewed at the next SARI Executive meeting scheduled April 12. Chair Ferryman announced the upcoming committee meetings for April. After a brief discussion, the Steering Committee concurred with Chair's recommendation to reschedule its Steering and Board meetings to begin at 5:30 p.m. and 6:30 p.m. respectively, effective next month. The decision will be ratified at the April Board meeting. Minutes of the Steering Committee _ Page 2 March 28, 2007 (5) REPORT OF GENERAL MANAGER Jim Ruth briefly reported on the month's activities and achievements: excellent progress is being made on Design-Build Legislation—the California Building Industry Association has indicated it will send a letter of support; Succession Plan has been completed; separate agreements with the County are being drafted by OCSD and SAW PA; HR is initiating an executive search for the IT Systems R Operations Manager position; labor negotiations are progressing with proposals and counter-proposals being exchanged. Mr. Ruth recognized Nick Arhontes, Director of Operations and Maintenance, who briefed the Committee on the City of Huntington Beach Pump Station construction timeline, and responded to their questions. Sanitation District staff will begin the Due Diligence process and assist General Counsel's staff in developing the Consideration of Acquisition agreement once the executed MOU is received. The new facilities will eventually be staffed by personnel from the phased out Carbon Canyon pump station,which will be replaced with a new gravity sewer. (6) REPORT OF GENERAL COUNSEL General Counsel Brad Hogin did not give a report. (7) CONSENT CALENDAR ITEMS a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the February 28, 2007 Steering Committee meeting. END OF CONSENT CALENDAR (8) ACTION ITEMS There were none. (9) INFORMATIONAL ITEMS a. Michael Gold introduced lobbyist Scott Baugh who provided an update on the District's Design-Build bill SB 645 authored by Senator Lou Correa. The first hearing on this legislation will be April 181b in the Senate Local Government Committee. He is confident the bill will pass. Mr. Gold informed that our state and federal lobbyists will be participating in future Steering committee meetings,alternating each month, either in person or by teleconference. b. The Agenda Items scheduled to be reviewed by the Board's working committees in April were reviewed. C. The agenda items scheduled to be presented to the Board at the March 28, 2007 meeting were reviewed. (10) OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS.IF ANY Jim Herberg, Director of Engineering, briefed the Committee on the emergency repairs required for the Clarifier P Sludge Collector Mechanism at Plant 2. He advised that, as a result of the Corrosion Inspection just completed, additional emergency repairs will be performed on a sewer pipe at Plant 2. He assured directors that these two emergency repairs are not a result of deferment of CIP funds. The Corrosion Inspection report will be presented to the Committees and Board in April. Minutes of the Steering Committee Page 3 March 28, 2007 (11) MATTERS WHICH A DIRECTOR WOULD LIKE STAFF TO REPORT ON AT A SUBSEQUENT MEETING There were none. (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,April 25, 2007 at 5:30 p.m. The next Board Meeting is scheduled for Wednesday, April 25, 2007 at 6:30 p.m. (14) CLOSED SESSION The Committee convened at 5:52 p.m. in Closed Session, pursuant to Sections 54956.8, 54956.9, M57,or 54957.6 to discuss two matters. Minutes of the Closed Session are on file with the Clerk of the Board. 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 Clerk of the Board 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 5:59 p.m.,the Committee reconvened in regular session. (15) ADJOURNMENT The Chair declared the meeting adjourned at 5:59 p.m. Submitted by: p G-0 Garrett Steering Committee Secretary MVep.MJmNlCwnmXlnalWeerbp CamMlwl}W3W OM12P SC MbWe STEERING COMMITTEE McebngDaW To ad.oFW oa(ze/m 04/25/07 AGENDA REPORT RMNumba 1mN1mb' 7(b) 9(bl Orange County Sanitation District FROM: James D. Ruth, General Manager Originator. Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: SANTA ANA RIVER INTERCEPTOR (SARI) LINE LOAN AND REPAYMENT AGREEMENT GENERAL MANAGER'S RECOMMENDATION Approve Santa Ana River Interceptor(SARI) Line Loan and Repayment Agreement No. D07-042 with the Orange County Flood Control District(OCFCD), providing for a no-interest loan until July 2016, of 60%of the successful bid amount for improvements to the SARI Line, for an amount not to exceed $60,000,000; and Authorize the release of$35,000,000 to OCFCD immediately after the award of the contract, and to allow the remaining balance to be released 12 months later. SUMMARY The County of Orange is in the process of constructing a significant improvement to the Prado Dam; specifically, raising the height of the dam. This improvement will result in a negative impact to the SARI Line. As the Prado Dam Improvement project sponsor, the County is responsible for mitigating any negative impacts of the project. Mitigation may cost as much as $100 million. It is anticipated that $70 million of this cost will be ultimately supported with subvention funds. However, these funds will not be available for at least five years. Although the County acknowledges its responsibility, they are not in a financial position to cash-flow the entire project. Because of the serious ramifications of this project, OCSD, SAWPA, OCWD and the County have conducted a series of meetings to address this issue. To address this problem immediately, the following was tentatively agreed upon: 1. The County would cash-flow$30 million. 2. SAWPA would advance the project$10 million over a two-year period. 3. OCSD would advance the project $60 million over a two-year period. a) OCSD would be reimbursed by the County. b) The County would be primarily relying on State Subvention Funds. c) The Subvention Fund reimbursement process has been improved. d) This loan to the County would be from our reserves and would not impact OCSD rates. PRIOR COMMITTEE/BOARD ACTIONS None Fp No.R ,.l M "tt -Sc /YwixC 01N 7 Page 1 ADDITIONAL INFORMATION The Orange County Flood Control District (OCFCD) is a department of the County of Orange("County") responsible for providing control of flood and storm waters within the boundary of the County of Orange, and of streams flowing into the County such as the Santa Ana River or San Juan Creek; to mitigate the effects of tides and waves; and to protect the harbors, waterways, public highways and property in the district from such waters. The County is a member agency of Orange County Sanitation District (OCSD). OCSD owns and operates the Santa Ana Regional Interceptor ("SARI"); a regional sewer pipeline from the Orange County line to the OCSD sewage treatment plant in Huntington Beach. The SARI was constructed as a joint project of OCSD and the Santa Ana Watershed Project Authority. OCFCD and OCSD wish to advance the protection and/or relocation of the SARI (the "SARI Project") in response to existing conditions and the raising of the Prado Dam by the U.S. Army Corps of Engineers(the Corps) and OCFCD. The SARI Project shall, to the extent required by law, be publicly bid. The total amount of construction, design, environmental and project administration costs is not currently expected to exceed one- hundred million dollars ($100,000,000). OCSD will benefit from the continued, uninterrupted use of the SARI and would, therefore, benefit from OCFCD accelerating the protection and/or relocation of the SARI Project as part of the Santa Ana River Mainstem Project. OCFCD plans to reimburse OCSD from the State Flood Control Subventions Program. OCSD would loan to the OCFCD 60% of the winning bid amount, plus design, environmental and project administration (total project costs), for purposes of SARI Project design and construction, up to the amount of sixty million dollars ($60,000,000), thirty-five million dollars ($35,000,000) after the award of the construction contract, and the remainder one year after initial deposit. If the SARI Project is publicly bid and the total project cost exceeds one-hundred million dollars ($100,000,000), OCFCD and OCSD shall meet and confer to determine if an increase in the Project loan amount is warranted and feasible prior to award of the construction contract, recognizing that, if such an increase is not warranted or feasible, the construction contract may not be awarded. The OCFCD agrees to repay OCSD all funds loaned by OCSD in three annual installments beginning on or before May 1, 2012. If OCSD has loaned sixty million dollars ($60,000,000) or more, repayment shall be in equal installments. If OCSD has loaned less than sixty million dollars ($60,000,000), repayment in the first two years shall be twenty million dollars ($20,000,000) each year with the balance repaid on or before May 1, 2014. Reimbursement may be deferred only in the event of any delay in OCFCD's receipt of State flood control subvention funds. However, the entire amount due shall be paid no later than July 1, 2018, In addition, interest shall accrue on the unpaid balance from July 2, 2016, at the interest rate of 3% (three-percent), as provided in Civil Code, Section 3289 (b), until the unpaid balance has been repaid. JDR:LT:lc Form No,owIDa-f SC fl"mYP.011O.1 Page 2 i MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District Wednesday, April 4, 2007—5:00 P.M. A meeting of the Operations Committee of the Orange County Sanitation District was held on April 4, 2007, at 5:00 p.m. in the Sanitation District's Administrative Office. (1) ROLL CALL A quorum declared present, as follows: Operations Directors Present: Staff Present: Larry Crandall, Chair Bob Ghirelli,Assistant General Manager Cathy Green, Vice Chair Nick Arhontes, Dir. of Operations &Maintenance Steve Anderson Jim Herberg, Director of Engineering Don Bankhead Ed Torres, Director of Technical Services Leslie Daigle Lorenzo Tyner, Director of Finance and Patsy Marshall Administrative Services Roy Moore Lilia Kovac, Committee Secretary David Shawver Jim Bunor, Engineering Supervisor Harry Sidhu William Cassidy, Engineering Supervisor Constance Underhill Tod Haynes, Engineering Manager James M. Ferryman, Board Chair Matt Smith, Engineering Manager John Linder, Engineering Manager Operations Directors Absent: Mahin Talebi, Source Control Manager Charles Antos Tom Gaworskl, Pr. Environmental Specialist Doug Davert, Board Vice Chair Others: Joe Forbath, General Counsel 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 Crandall noted that the July meeting will be held on Thursday, July 12". Minutes of the Operations Committee r April 4, 2007 r Page 2 r (5) REPORT OF THE GENERAL MANAGER No report was given. (6) CONSENT CALENDAR ITEMS a. MOVED, SECONDED, AND DULY CARRIED: The minutes of the March 7, 2007 Operations Committee meeting were approved. b. OP07-26 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to(1) Ratify Change Order No. 5 to Ellis and Bushard Intersection, Contract No. I-2-4A, with Mike Bubalo Construction, Inc., authorizing an addition of$108,026, increasing the total contract amount to $11,231,081.70; and (2)Approve a 1.65% construction contingency ($184,660). C. OP07-27 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: (1) Ratify Change Order No. 1 to Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. 132-74, with J F Shea, authorizing an addition of$233,803,which includes a $200,000 bonus for lowered power consumption, increasing the total contract amount to $10,121,784; and, (2)Approve an 8% construction contingency($791,038). Director Sidhu abstained. d. OP07-28 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: (1) Ratify Change Order No. 3 for Activated Sludge Plant Rehabilitation at Plant No. 1, Job No. P1-82, with J.R. Filanc Construction Company Inc., authorizing an addition of$175,784, increasing the total contract amount to $32,554,405; and, (2)Approve a 7% contingency ($2,253,510). e. OP07-29 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: (1)Approve Amendment No. 1 to the Professional Services Agreement with Black&Veatch Corporation for additional engineering services for Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for an additional amount of$120,082, increasing the total contract amount not to exceed $1,138,989; (2)Approve a 4.0% Contingency($45,560); and, Minutes of the Operations Committee April 4, 2007 Page 3 (3)Authorize staff to commence negotiations with Black &Veatch Corporation for support services during the construction, commissioning, and closeout phases of Contract No. 5-58. f. OP07-30 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to(1)Approve Amendment No. 2 to the Professional Services Agreement with Earth Tech, Inc. providing for additional construction management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4, for an additional amount of$120,525, Increasing the contract total amount not to exceed $2,651,811; and, (2)Approve a 12% contingency ($318,217). Director Sidhu abstained. g. OP07-31 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to (1)Approve Plans and Specifications for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P11-106; (2) Approve Addendum Nos. 1 and 2 to the plans and specifications; (3) Receive and file bid tabulation and recommendation; (4) Award a construction contract to Adams Mallory Construction Co., Inc. for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106, for a total amount not to exceed $1,887.721; and, (5) Approve a 5.25%contingency ($99,100). h. OP07-32 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: (1)Approve Amendment No. 1 to the Professional Services Agreement with Spec Services, Inc. providing for construction support services for the Gisler-Redhill Trunk Sewer Relocation, Phase 1, Contract No. 7-32-1, for an additional amount of$44,550 increasing the total amount not to exceed $147,141. (2) Approve an 8% contingency ($11,771). I. OP07-33 MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve years two and three of a three-year Memorandum of Understanding with California State University, Fullerton Auxiliary Services Corporation for Continued Operation of the Center for Demographic Research, for the period July 1, 2007 through June 30, 2009, for$118,670, for a total amount not to exceed $173.671. Minutes of the Operations Committee April 4, 2007 Page 4 (7) ACTION ITEMS a. OP07-34 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: 1. Approve a 6.2% construction contingency($725,262)for Contract No. 5-51, Rehabilitation of the le Street Pump Station, and Contract No. 5-52, Rehabilitation of the"A" Street Pump Station. 2. Approve a 6.82%construction contingency($2,046,219)for Contract No. 1-2-4, Bushard Trunk Sewer Rehabilitation. 3. Approve a 4.5% construction contingency($346,490)for Contract No. I-24P, Bushard Trunk Sewer Pipe Procurement. 4. Approve a 7.5%construction contingency($2,342,445)for Contract No. 1-10A, 66-Inch Ellis Avenue Trunk Sewer. 5. Approve a 5%construction contingency ($1,385,862)for Contract No. 1-10B, Ellis Avenue Pump Station. 6. Approve a 30%construction contingency ($1,898,700)for Contract No. J-33-1A, Standby Power and Reliability Improvements. 7. Approve a 1.75%construction contingency($782,872)for Contract No. J-77, Effluent Pump Station Annex. 8. Approve a 4%construction contingency ($2,814,640)for Contract No. P1-37, Primary Clarifier Nos. 16-31 and Related Facilities. 9. Approve a 2.5%construction contingency($4,807,402)for Contract No. P2-66, Headworks Improvements at Plant No. 2. 10. Approve a 2.750% construction contingency($4,941,117)for Contract No. P2-90, Trickling Fitters at Plant No. 2. 11. Approve an 8% Professional Design Service Agreement contingency ($198,078)for Job No. 5-50, Replacement of the Rocky Point Pump Station. 12. Approve a 2.8% Professional Design Service Agreement contingency ($59,575)for Job No. 5-51, Rehabilitation of the 14r^ Street Pump Station, and Job No. 5-52, Rehabilitation of the"A" Street Pump Station. 13. Approve a 7% Professional Design Service Agreement contingency ($38,905)for Job No. 7-37, Gisler-Red Hill Trunk Improvements. Minutes of the Operations Committee April 4, 2007 Page 5 14. Approve a 1.5% Professional Design Service Agreement contingency($52,109)for Job No. 1-2-4, Bushard Trunk Sewer Rehabilitation (Boyle). 15. Approve a 1% Professional Design Service Agreement contingency ($33,599)for Job No. J-33-1A, Standby Power and Reliability Improvements. 16. Approve an 8% Professional Design Service Agreement contingency ($25,708)for Job No. 1-24, Bushard Trunk Sewer Rehabilitation (Malcolm Pimie). 17. Approve a 5% Professional Design Service Agreement contingency ($112,577)for Job No. J-47, Cable Tray Improvements at Plant Nos. 1 and 2. 18. Approve a 2% Professional Design Service Agreement contingency ($123,285)for Job No. J-77, Effluent Pump Station Annex. 19. Approve a 5% Professional Design Service Agreement contingency ($159,901)for Job No. J-79,Air Quality Improvements. 20. Approve a 10% Professional Design Service Agreement contingency ($139,786)for Job No. J-79-1, Central Generation Automation. 21. Approve a 1% Professional Design Service Agreement contingency ($78,017)for Job No. P1-37, Primary Clarifier Nos. 16-31 and Related Facilities. 22. Approve a 3% Professional Design Service Agreement contingency ($26,403)for Job No. P1-71, Headworks Rehabilitation/Refurbishment at Plant No. 1, 23. Approve a 1.2% Professional Design Service Agreement contingency($70,552)for Job No. P1-82, Activated Sludge Plant Rehabilitation at Plant No. 1. 24. Approve a 5% Professional Design Service Agreement contingency ($38,969)for Job No. P1-97, 66KV Substation at Plant No. 1. 25. Approve a 10% Professional Design Service Agreement contingency ($366,538)for Job No. P1-100, Sludge Digester Rehabilitation at Plant No. 1. 26. Approve a 10% Professional Design Service Agreement contingency ($1,112,958)for Job No. P1-101, Sludge Dewatering and Odor Control at Plant No. 1. Minutes of the Operations Committee April 4, 2007 Page 6 ` 27. Approve a 2% Professional Design Service Agreement contingency ($533,802)for Job No. P2-66, Headworks Improvements at Plant No. 2. 28. Approve a 4% Professional Design Service Agreement contingency ($110,148)for Job No. P2-74, Rehabilitation of the Activated Sludge Plant at Plant No. 2. b. OP07-35 MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to consider adopting the proposed Wastewater Discharge Regulations, Ordinance No. OCSD-31, and repealing Ordinance No. OCSD-01. (8) INFORMATIONAL ITEMS a. OP07-36 Capital Improvement Program Overview Director of Engineering, Jim Herberg, briefly reviewed the Capital Improvement Program and possible modifications which affect future rate increases. (9) REPORT OF DIRECTOR OF ENGINEERING Jim Herberg updated the committee members on the Sanitation District's response to key findings by the recent peer review audit conducted by the American Society of Civil Engineers. (10) REPORT OF DIRECTOR OF OPERATIONS AND MAINTENANCE Director of Operations and Maintenance, Nick Arhontes, introduced William Cassidy, who briefly presented an overview of a new type of pump with a high level of efficiency by reducing maintenance costs and labor. Mr. Arhontes updated the committee members of the Fleet Services Division's efforts to comply with California Air Resources Board requirements for reducing diesel fuel particulate emissions; O&M and Technical Services' new study of wastewater disinfection strategies for ocean discharge; the OCSD/OCWD study of wastewater tributary to Plant 1, which will feed the Groundwater Replenishment System; and an update of architectural services just starting for the North County Yard's (7311 Doig Drive in Garden Grove) building space plan. (11) REPORT OF DIRECTOR OF TECHNICAL SERVICES Director of Operations, Ed Torres, briefly informed the Directors that the Supreme Court has determined that the Environmental Protection Agency is responsible for addressing greenhouse effects and climate changes and is being directed to develop regulations. Mr. Torres also reported that EnerTech received all financial approvals to build plant for conversion of biosolids into energy; San Juan Capistrano Mission agreement to receive Synagro compost for the property's 10 acres, making this a successful program showcasing in-county use of biosolids; Minutes of the Operations Committee April 4, 2007 Page 7 City of Los Angeles' pilot project to pump biosolids into vacant oil and gas deep wells to produce methane gas, will be closely observed for success. (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) CONVENE INCLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 b . The Committee convened in Closed Session at 6:45 p.m. pursuant to Government Code Section 54956.9(b). Confidential Minutes of the Closed Session held by the Operations Committee have been prepared in accordance with California Government Code Section 54957.2, and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session at 6:52 p.m. (15) FUTURE MEETING DATES The next Operations Committee meeting is scheduled for May 2, 2007, at 5:00 p.m. (16) ADJOURNMENT The Chair declared the meeting adjourned at 6.57 p.m. Submitted by: &4L,. 6'y� Lilia Kovac Committee Secretary H:\dept\agenda\Commitlees\Opembons CommiUmNOp mUons 2007\0507105040407 Opemflons Minutee.dw OPERATIONS COMMITTEE MeeOng Date 7o B0.or Dr. 03/07/07 09/25/07 AGENDA REPORT Item Number Item Number OP07-25 10(bl Orange County Sanitation Dlstrict Fallacies FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering SUBJECT: REHABILITATION OF THE 14" STREET PUMP STATION, CONTRACT NO. 5-51, AND REHABILITATION OF THE "A" STREET PUMP STATION, CONTRACT NO. 5-52 GENERAL MANAGER'S RECOMMENDATION 1. Approve a budget increase for Rehabilitation of the 14l" Street Pump Station, Contract No. 5-51, in the amount of$86,836 for a total project budget of$9,759,836; and, 2. Ratify Change Order No. 3 to Rehabilitation of thel4tb Street Pump Station, Contract No. 5-51, and Rehabilitation of the "A" Street Pump Station, Contract No. 5-52, with Kiewit Pacific Company authorizing an addition of$178,181 and 0 calendar days, increasing the total contract amount to $12,273,404. SUMMARY • This contract is for construction of a new 1,0b Street Pump Station at 1510 W. Balboa Boulevard and construction of a new"A" Street Pump Station at 810 W. Balboa Boulevard in the City of Newport Beach. The existing pump stations are about 50 years old and do not meet current standards of performance and safety. • Lee & Ro, Inc. prepared the plans and specifications, and the construction contract was awarded to Kiew t Pacific Company on September 22, 2004. • Change Order No. 3 includes eighteen items of added work. There are no reimbursable design errors and nine nonreimbursable design errors associated with this change order. The contract includes liquidated damages of$1000 per day and no bonus provisions. The contract is 100% complete. PRIOR COMMITTEEIBOARD ACTIONS The contract was awarded to Kiewit Pacific Company by the Board of Directors on September 22, 2004. Please refer to the attached Change Order Status Report. Page 1 ADDITIONAL INFORMATION , Contract Schedule Contract Start Date: November 10, 2004 Original Contract Completion Date: June 7, 2006 Total Number of Change Orders to Date: 3 Current Contract Completion Date: October 12, 2006 Days Subject to Liquidated Damages: N/A Liquidated Damages Assessment: 0 Calendar Days Change Order No. 3 Content Item No. Description Amount Days Type Contract No. 6-61 Slurry Blanket Under Masonry 1 Wall $3,742 0 Other Place and Remove Temporary 2 Paving $16,748 0 Other 3 Dewatering System Shutdown $7,620 0 Other 14 Street Pump Station Nonreimbursable Design 4 Force Main Modifications $1,924 0 Error Move Junction Boxes for Staff Requested Design 5 Pump Motors $2,594 0 Change Security Fence and Curb Detail at 10 Street Pump Nonreimbursable Design 6 Station $20,110 0 Error Upgrade of UPS Capacity Nonreimbursable Design 7 $8,129 0 Error Contract No. 5-52 8 Hot Tap Into City Water Main $6,283 0 Other "A" Street Alley Sewer 9 Modifications $66,639 0 Unknown Conditions Additional Site Work at"A" Nonreimbursable Design 10 Street Pump Station $7,688 0 Error Temporary Paving in "A" 11 Street Pump Station Alley $2,464 0 Other Page 2 Contract No. 5-51 and No. 5-52 Architectural Modifications at "A" Street and 10 Street 12 Pump Stations $17,267 0 Other 13 Added Dewatering Flow $3,645 0 Staff Requested Design Meters Change 14 Added UPS Power Source $4,314 0 Nonreimbursable Design Error Remove and Reinstall 15 Receptacles for Sump Pumps $2,133 0 Nonreimbursable Design Error Install Fiber Optic Media Nonreimbursable Design 16 Converters $1,633 0 Error Pump Moisture Detector Nonreimbursable Design 17 Control Circuit $1,141 0 Error Nonreimbursable Design 18 le $4,107 0 Error Total—Change Order No. 3 $178,181 0 A budget amendment of$86,836 is being requested. Additional funds are being requested to cover costs for change orders and staff labor to support added construction activities beyond the original contract completion date. The proposed source of funding is from the Orange County Sanitation District's (Sanitation District) Capital Improvements Reserves. This change order complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted, but there are insufficient funds (Line item: Section 8, Pages 27 and 28) The Project Manager on this project is Umesh Murthy. ATTACHMENTS Change Order Status Report UM:BP:bm:gc H:Wepftgenda\Commltteea\Operations Committee\Operations 20070 OM-25-5-51 552 CO 3.deo Page 3 CHANGE ORDER STATUS REPORT REHABILITATION OF THE 14TH STREET PUMP STATION REHABILITATION OF THE "A" STREET PUMP STATION CONTRACT NOS. 5-51 AND 5.52 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT 11/10/2004 $11,697,780 $11,697,780 0.00 575 575 CO NO. 1 6/28/2006 $141,364 $11,839,144 1.21% 113 688 CO NO. 2 12/202006 $256.079 $12,095,223 3,40% 14 702 CO NO.3 1 Pending $178.181 $12,273,404 4.92% 0 702 EDMS:OD3025706 OPERATIONS COMMITTEE MeeOng Date Toa1.er Dtr. 04/04/07 09/25/0] AGENDA REPORT Item Number Item Number OP07-26 10(c) Orange County Sanitation District Collections Facilities FROM: James Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: David May SUBJECT: ELLIS AND BUSHARD INTERSECTION, CONTRACT NO. 1-2-4A GENERAL MANAGER'S RECOMMENDATION 1. Ratify Change Order No. 5 to Ellis and Bushard Intersection, Contract No. 1-24A, with Mike Bubalo Construction, Inc., authorizing an addition of$108,026, increasing the total contract amount to $11,231,081.70. 2. Approve a 1.65% contingency for change orders to said construction contract ($184,660). SUMMARY • Contract No. 1-24A is related to Contract No. 1-24, Bushard Trunk Sewer Rehabilitation. Contract No. 1-24 replaces approximately five miles of existing 54-inch diameter pipe with new 108-inch diameter pipe. • The purpose of Contract No. 1-24A is to consolidate work in the Ellis Avenue Bushard Street intersection and allow work to be performed in less time and in a safer work area. Work is also performed in parallel with new piping being installed on Bushard Street south of the intersection ensuring the entire effort is completed in a shorter duration. • Malcolm Pirnie, Inc. prepared the plans and specifications and the contract was awarded to Mike Bubalo Construction Company, Inc. on February 22, 2006. • This change order includes three items of added work and one item to reduce contract retention. There are two non-reimbursable design errors and no reimbursable design errors associated with this change order. Liquidated damages on this contract are $5,400 per day. The contract is now 97% complete. PRIOR COMMITTEE/BOARD ACTIONS The contract was awarded by the Board of Directors on February 22, 2006. Please refer to the attached Change Order Status Report for information on all previous change orders. Page 1 ADDITIONAL INFORMATION Minor improvements were made to parking and street sections intermingled in the work area after discussion wRh City staff. This change order complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 48). Contract Schedule Contract Start Date May 8, 2006 Original Contract Completion Date January 2, 2007 Total Number of Change Orders to Date 4 Current Contract Completion Date July 31, 2007 Actual Completion Date TBD Days Subject to Liquidated Damages N/A Chanas Order No. 04 Content Rem Description Amount Days Type No. 1 Additional improvements—City of $47,268 0 Other Fountain Valle 2 Structural Bulkhead installation $30,000 0 Non Reimbursable Design error 3 Structural Bulkhead removal $30,758 0 Non Reimbursable sign error 4 Retention Release $0 0 Other Total Change Order No. 05 1 $108,0261 0 ATTACHMENTS Change Order Status Report Award Date: 04104107 Contract Amount: $11,231,081.70 Contingency%: 1.65 JH:DM:kf:eh:kf H:Wep1W9er a%Committees\Operations Cammillee\Operations 2007W40N17-26.1-2-4A CO 5 revise .A Page 2 CHANGE ORDER STATUS REPORT ELLIS AND BUSHARD INTERSECTION, CONTRACT NO. I-23A CO #6 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT February 22,2006 $11,191,500.00 $11.191,500.00 240 240 CO NO. 1 May 24,2006 $0 $11,191,500.00 0.00% 0 240 CO NO. 2 August 23,2006 t$815.657.641 $10,375,842.36 -7.29% 0 240 CO NO. 3 November 15,2006 $552,984 $10,928,626.36 -2.35% 20 260 CO NO.4 Apri125,2007 $194,229.34 1 $11,123,055.70 -0.61% 1 190 450 CO NO. 5 Pending $108,026.00 $11.231,081.70 0.35% 0 450 EDMS:003830223 OPERATIONS COMMITTEE MeeangDate To ad.of Da. 04/04/07 04/25/07 AGENDA REPORT Item Number tram Number Orange County Sanitation District kSeoondarY Treatment FROM: James D. Ruth, General Manager SUBJECT: REHABILITATION OF THE ACTIVATED SLUDGE PLANT AT PLANT NO. 2, JOB NO. P2-74 GENERAL MANAGER'S RECOMMENDATION 1. Ratify Change Order No. 1 to Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74, with J F Shea, authorizing an addition of$233,803, which includes a $200,000 bonus for lowered power consumption, increasing the total contract amount to $10,121,784. 2. Approve an 8% contingency for change orders to said construction contract ($791,038). SUMMARY • Job No. 132-74 provides for the rehabilitation of the aeration mixers, electrical equipment, instrumentation, and controls at the Activated Sludge Treatment Process (Secondary Treatment Plant) located at Plant No. 2. • Montgomery Watson Harza prepared the plans and specifications and the contract was awarded to J.F. Shea Construction, Inc. on March 13, 2006. • This change order includes five items of added work ($33,803) and one bonus provision ($200,000) to Job No. P2-74. There are four nonreimbursable design errors and no reimbursable design errors associated with this change order. The contract includes liquidated damages at $2,000 per day and one bonus provision. The contract is now 31% complete. PRIOR COMMITTEEIBOARD ACTIONS The contract was awarded by the Board of Directors on March 13, 2006. Please refer to the attached Change Order Status Report for information on all previous change orders. •„,.«,., o W Page 1 ADDITIONAL INFORMATION Contract Schedule Contract Start Date March 13, 2006 Original Contract Completion Date April 1, 2008 Total Number of Change Orders to Date 1 Current Contract Completion Date April 1, 2008 Actual Completion Date TBD Days Subject to Liquidated Damages N/A Change Order No. 1 Content Item Description Amount Days Type No. Staff Request 1 316 Stainless Steel Racking $3,003 0 Design Enhancement Nonreimbursable 2 Additional Control Wire $40,669 0 Design Error Deletion of East Side RAS Pump Staff Requested 3 Station Air Conditioner Unit $14,557 0 Design Chan e Nonreimbursable 4 Relocate HVAC Ductwork $1,230 0 Design Error Additional Conduits for Secondary Nonreimbursable 5 Clarifier RIO Cabinets $3,458 0 Design Error 6 Aerator Mixer Bonus Provision $200,000 0 Other Total Change Order No. 1 $233,8031 0 Item 6 provides for a $200,000 bonus as a result of a demonstrated power draw significantly less than the maximum power draw specified in the contract documents. As a result of the new efficient mixers, the Orange County Sanitation District (Sanitation District) will realize a significant savings in power costs (over $10,000,000) over the next twenty years. This change order complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 55). ATTACHMENT Change Order Status Report Award Date: 04104107 Contract Amount: $10,121,784 Contingency%: 8% JH:KM:dm:kf:eh:kf H:\dept\agendalComminees\Operations Committee\Operations 200710407\07-27.P2-74 CO 1 Reviwd.dm R....e. ..03 Page 2 CHANGE ORDER STATUS REPORT REHABILITATION OF THE ACTIVATED SLUDGE PLANT AT PLANT NO. 2 JOB NO. P2-74 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT 3/13/2006 $9,887,981 $9,887,981 0.00 750 750 GO NO. 1 - Pending $233,803 $10,121,784 " 2.36 ` 0 750 •Note-$200,000 of the total change order amount IS other(bans),as a result total project change order%is aclualy.34% EDMS 003829793 OPERATIONS COMMITTEE Mrng Date Toed.or Dlr. oa/ot/o7 oa/zs/o7 X AGENDA REPORT Item Number Item Number _ OPo7-28 10 e Orange County Sanitation District kSecondary Treatment FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Wendy Sevenandt SUBJECT: ACTIVATED SLUDGE PLANT REHABILITATION AT PLANT NO. 1, JOB NO. P1-82 GENERAL MANAGER'S RECOMMENDATION 1. Ratify Change Order No. 3 for Activated Sludge Plant Rehabilitation at Plant No. 1, Job No. P11-82, with J.R. Filanc Construction Company Inc., authorizing an addition of$175,784, increasing the total contract amount to $32,554,405. 2. Approve a 7% contingency for change orders to said construction contract ($2,253,510). SUMMARY • Job No. P1-82, Activated Sludge Plant Rehabilitation, consists of modifications and additions to the Blower Building, Aeration Basin, and Secondary Clarifier Complex. • The plans and specifications were prepared by HDR Engineering, Inc., and the contract was awarded to J.R. Filanc Construction Company, Inc. on June 22, 2005. • Change Order No. 3 includes two items of added work. There is one non- reimbursable design error associated with this change order. Liquidated damages on this project are $4,000 per day and there are no bonus provisions. The contract is now 75% complete. PRIOR COMMITTEEIBOARD ACTIONS The contract was awarded to J.R. Filanc Construction Company, Inc. by the Board of Directors on June 22, 2005. Please refer to the attached Change Order Status Report for information on previous change orders. ADDITIONAL INFORMATION Contract Schedule Contract Start Date August 25, 2005 Original Contract Completion Date June 16, 2007 Total Number of Change Orders to Date 3 Current Contract Completion Date September 25, 2007 Actual Completion Date NIA Days Subject to Liquidated Damages 0 Change Order No. 3 Content Item Description Amount Days Type No. t Secondary Clarifier Nos. 25 and 26 $tom 852 0 Non-reimbursable Pile Modifications Design Error 2 Secondary Clarifier Nos. 25 and 26 $30,932 0 Pile Uplift Test Unknown Condition Total Change Order No. 3 $175,784 0 This change order complies with authority levels of the Orange County Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 54). ATTACHMENT Change Order Status Report Award Date: 04104/07 Contract Amount: $32,554,405 Contingency%: 7% J H:WS:kf H\aepVage0a\Catnln1tteesWpetalions Commiftee%()Watiom 200710407107-28.P1-02 CO 3 Revlwd.doc C 1 CHANGE ORDER STATUS REPORT ACTIVATED SLUDGE PLANT REHABILITATION AT PLANT NO. 1 JOB NO. P1.82 APPROVAL CONTRACT CONTRACT COST PERCENTAGE AUTHORIZED AUTHORIZED TIME ITEM DATE COST TO DATE INCREASE TIME TO DATE (DAYS) (DAYS) CONTRACT 6/22/2005 $ 32,193,000 $ 32,193,000 0.00 660 660 CO NO. 1 7/19/2006 $ 149,078 $ 32,342,078 0.46 101 761 CO NO. 2 3/28/2007 $ 36,543 $ 32,378,621 0.58 0 761 CO NO.3 Pending $ ' 175,784. $ 32,554,405 1.12 0 - 761 EDMS'.003829631 OPERATIONS COMMITTEE Mee0n9 Date Tolld. Dlr. M104107 04/25(0or7 AGENDA REPORT Item Number Item Number OP07-29 10(n Orange County Sanitation District RWF•clectio FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Alberto Acevedo SUBJECT: NEWPORT TRUNK SEWER AND FORCE MAINS, BITTER POINT PUMP STATION TO COAST TRUNK SEWER, CONTRACT NO. 5-58 GENERAL MANAGER'S RECOMMENDATION 1. Approve Amendment No. 1 to the Professional Services Agreement with Black & Veatch Corporation for additional engineering services for Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for an additional amount of$120,082, increasing the total contract amount not to exceed $1,138,989. 2. Approve a 4.0% contingency for amendments to said agreement ($45,560). 3. Authorize staff to commence negotiations with Black &Veatch Corporation for support services during the construction, commissioning, and closeout phases of Contract No. 5-58. SUMMARY • This project will provide a new point of connection from the proposed new Bitter Point Pump Station to convey wastewater from the cities of Newport Beach and Costa Mesa to Plant No. 2. The existing system is not suitable for the new operating pressure and flow conditions from the proposed Bitter Point Pump Station. • The additional design services being requested are necessary to update the Bid Documents, the construction cost estimate, the construction schedule, and incorporate all the field changes that have occurred since the drawings where completed in December 2005. This project was put on hold to ensure that construction will coordinate closely with the replacement of Bitter Point Pump Station, Contract No. 5-49. Page 1 • Black & Veatch Corporation prepared the original design to the highest standards and possesses an in-depth and unique knowledge of all the intricacies of the design. Therefore, Black &Veatch Corporation is in an excellent position to provide support services during the bid process, construction, commissioning, and closeout phases of this project. Staff is requesting permission to negotiate with Black & Veatch for construction support services. PRIOR COMMITTEE/BOARD ACTIONS • Approval of Professional Service Agreement (PSA) with Black &Veatch Corporation for an amount not to exceed $1,018,907 (Board — December 2003). ADDITIONAL INFORMATION This Amendment No. 1 complies with authority levels of the Orange County Sanitation District's (Sanitation District) Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 30). An amendment for the construction support services will be presented at the time that the construction contract is presented for award. Award Date: 4/25103 Contract Amount: $1,138,989 Contingency%: 4.0% JH:AC:kf H:\dept\a9enda\Committees\Operations CommMee\0pe2tions 2007\0407\07-29.5-5e Amend#1.Reyiwd dm.dw Page 2 OPERATIONS COMMITTEE Meeang Date TUBd.af Dir. 04/04/07 m/zs/o7 AGENDA REPORT Item Number Item Number OP07-30 I 10(a) Orange County Sanitation District Collections �- Facilities FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: David May SUBJECT: BUSHARD TRUNK SEWER REHABILITATION, JOB NO. 1-2-4 GENERAL MANAGER'S RECOMMENDATION 1. Approve Amendment No. 2 to Professional Services Agreement with Earth Tech, Inc. providing for additional construction management services for Bushard Trunk Sewer Rehabilitation, Job No. 1-24, for an additional amount of$120,525, increasing the contract total amount not to exceed $2,651,811. 2. Approve a 12% contingency for amendments to said agreement ($318,217). SUMMARY • Earth Tech Inc. (ETI) was awarded a construction management services contract in November 2005. ETI provides construction management services for work on the Bushard Trunk Sewer Rehabilitation, Job No. 1-2-4. • This amendment is for additional pipe procurement inspection services at the pipe fabrication plant site and for pipe installation quality inspection services for pipe installed by the contractor, Steve P. Rados. Additional pipe procurement inspection is required because the pipe installation time has increased. • ETI is approximately 70% complete on their contracted services to date. ETI services will complete when Steve P. Rados completes construction, which is estimated to be approximately July 2007. • The contractor may start working overtime which would require more inspectors. The contingency was set based on this possibility. Per our contract with Steve P. Rados, this cost is recoverable and will be part of the overall settlement agreement. PRIOR COMMITTEE/BOARD ACTIONS • Awarded Professional Services Agreement, November 2005, for $2,052,593. • Approved Amendment No. 1 to the Professional Services Agreement, July 19, 2006, for $478,693 bringing the total contract amount to $2,531,286. Folm No.a 10?2 R 011 7 Page 1 ADDITIONAL INFORMATION This Amendment No. 2 complies with authority levels of the Orange County Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 48). Award Date: 04/04107 Contract Amount: $2,651,811 Contingency %: 12% JH:DM:kf:gc:kf H:\depNgenda\Committees\Operations Committee\Operations 2007W4071WJ0.1-2d Amend mviseda2.doc Form No.owim-2 R.i.01l 7 Page 2 OPERATIONS COMMITTEE �enng Date TOBtl.or Dir. oa104107 oa/zs/p7 AGENDA REPORT Item Number Item Number OP07-31 10 h Orange County Sanitation District &Di soon np S lia ds Handling FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Pam Koester SUBJECT: TRUCK WASH AND DEWATERING BEDS AT PLANT NO. 1, JOB NO. P1-106 GENERAL MANAGER'S RECOMMENDATION 1. Approve Plans and Specifications for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106; 2. Approve Addendum Nos. 1 and 2 to the plans and specifications; 3. Receive and file bid tabulation and recommendation; 4. Award a construction contract to Adams Mallory Construction Co., Inc. for Truck Wash and Dewatering Beds at Plant No. 1, Job No. P1-106, for a total amount not to exceed $1,887,721; and, 5. Approve a 5.25% contingency for change orders to said contract ($99,100). SUMMARY • The purpose of Job No. P1-106 is to provide truck wash and dewatering beds facilities at Plant No. 1. • Earth Tech completed the plans and specifications for Job No. P1-106 in December 2006. Four sealed bids were received on February 20, 2007. Summary information on the bid opening for Job No. P1-106 is as follows: Project Budget: $4,360,900 Construction Contract Budget: $2,779,000 Engineer's Estimate $2,350,000 Lowest Responsive, Responsible Bid: $1,887,721 High Bid: $2,928,165 Form No.M-roas aevi.ea mmao> Page 1 PRIOR COMMITTEE/BOARD ACTIONS • Approval of Professional Service Agreement (PSA) with Earth Tech for an amount not to exceed $237,676 (Board — December 2005). • Approval of Amendment No. 1 to the PSA with Earth Tech for $15,200, increasing the contract total amount not to exceed $252,876 (General Manager— November 2006). • Authorize staff to commence negotiations with Earth Tech for support services during the construction, commissioning, and closeout phases of Job No. P1-106. ADDITIONAL INFORMATION This approval complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 60). Award Date: 4/26107 Contract Amount: $1,887,721 Contingency: 5.25 JH:PK:kf:gc M:1depuagenda\Commidees\0perations Committee\Operations 2007t040710731.P1-106-Addendum#1 and#2.Revised.dm, Farm No.owim.z am..amrosot Page 2 OPERATIONS COMMITTEE MeeiingDate To ad.orar. 04/04/07 04/25/07 AGENDA REPORT Item Number Item Number OP07-32 1061 Orange County Sanitation District 4 Collections Facilities FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Hardat Khublall SUBJECT: GISLER-REDHILL TRUNK SEWER RELOCATION, PHASE 1 CONSTRUCTION, CONTRACT NO. 7-32-1 GENERAL MANAGER'S RECOMMENDATION 1. Approve Amendment No. 1 to the Professional Services Agreement with Spec Services, Inc. providing for construction support services for the Gisler-Redhill Trunk Sewer Relocation, Phase 1, Contract No. 7-32-1, for an additional amount of $44,550, increasing the total amount not to exceed $147,141. 2. Approve an 8% contingency for amendments to said agreement ($11,771). SUMMARY • The purpose of this project is to redirect flows from the 30-inch Gisler-Redhill Trunk Sewer located at the John Wayne Airport northerly Main Street parking lot into the existing 66-inch diameter Main Street Sewer to reduce flows to the College Avenue Pump Station. This project also abandons a portion of the 30-inch Gisler-Redhill Trunk Sewer which conflicts with future construction of a Caltrans transition ramp. • The implementation of this project will save the Orange County Sanitation District (Sanitation District) approximately $4,500,000 because this project will avoid the need to upgrade College Avenue Pump Station by redirecting the flows to Main Street Pump Station. • Spec Services completed the preparation of the design plans and specifications for Contract No. 7-32-1 in December 2006, and construction support services are being requested as the project moves into construction. These services will include reviewing submittals, responding to requests for information, preparing design modifications, attending construction meetings and site visits, performing specialty inspections, participating in commissioning activities, and preparing record drawings. The cost for this additional work is estimated to be $44,550. Farm No.m-max nwieaa avoe�m Page 1 • These construction support services shall be authorized only as requested, and managed by the Sanitation District's Project Manager. The proposed fee is reasonable for a project of this magnitude. Staff received permission to negotiate with Spec Services for construction support at the March Board of Directors meeting. • An 8% contingency for potential consultant PSA amendments is being requested per the Delegation of Authority. PRIOR COMMITTEE/BOARD ACTIONS Approval of a Professional Services Agreement (PSA) with Spec Services, Inc. in March, 2004, for a total amount not to exceed $102,591. ADDITIONAL INFORMATION This Amendment No. 1 complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 37). Award Date: 03124104 Contract Amount: $102,591 Contingency%: 8% JH:HK:kf H:WeptlegendakCommi t"MOperations Committee\Operations 200A0407W-32.7-32-1 Amend#iReviwd.doc Form No.m-io2.2 Rvimc 0nN 07 Page 2 OPERATIONS COMMITTEE t�0407re To Bd.oto r. o4/oa/m oa/ss/m AGENDA REPORT Iem NU073Ue OP Item WIOfnNm6Pf Orange County Sanitation District /� Misc.B Support Projects FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering SUBJECT: 2007-08 Sponsorship of the Center for Demographic Research GENERAL MANAGER'S RECOMMENDATION Approve years two and three of a three-year Memorandum of Understanding with California State University, Fullerton Auxiliary Services Corporation for Continued Operation of the Center for Demographic Research, for the period July 1, 2007 through June 30, 2009, for$118,670, for a total amount not to exceed $173,671. SUMMARY The Center for Demographic Research (CDR), located at California State University Fullerton, develops demographic and related information for Orange County. Since 1996, CDR has been supported by sponsoring agencies, including the Orange County Sanitation District (Sanitation District). The Sanitation District uses CDR information to develop flow projections, to project revenues from connection fees, and to assess capacity needs for sewer conveyance and treatment facilities. PRIOR COMMITTEE/BOARD ACTIONS None. The 2006-2007 sponsorship fee in the amount of$55,001 was within the General Manager's Delegation of Authority. ADDITIONAL INFORMATION The Center for Demographic Research produces core demographic products such as the "Orange County Progress Report," "Orange County Projections" and census, and employment data by traffic analysis zone (TAZ). Recognizing the importance of local area expertise in developing demographic projections and associated products, a number of agencies sponsor CDR: the County of Orange, the Orange County Transportation Authority, the County of Orange Clerk-Recorder Department, the Orange County Council of Governments, the Sanitation District, the Transportation Corridor Agencies, the Municipal Water District of Orange County, and the Orange County Water District. Form No.0 I W1 RaWMo11C8N1 Page 1 The 2006 Memorandum of Understanding established Sanitation District sponsorship fees at $55,001 for 2006-08, $57,198 for 2007-08, and $61,472 for 2008-09. this item complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 5, Page 6). AT:sa H:\deptagenda\Committees\Operations Committee\Operations 2007040707-33.Center for Demographic Researchdoc Form No.o1LLt023 RrvIrYmNNp1 Page 2 OPERATIONS COMMITTEE Meeting Date To ea.of Mr. 09 09 07 04 2s 07 AGENDA REPORT Item Number Item NumMr 1' Orange County Sanitation District OP07-34 1 IN k1 (� Misc.a Support Projects FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Matt Smith SUBJECT: CONSTRUCTION AND ENGINERING CONTRACT CONTINGENCIES GENERAL MANAGER'S RECOMMENDATION 1. Approve a 6.2% contingency for chant orders to said construction contract ($725,262) for Rehabilitation of the 14 Street Pump Station, and Contract No. 5-52, Rehabilitation of the "A" Street Pump Station Contract No. 5-51. 2. Approve a 6.82% contingency for change orders to said construction contract ($2,046,219) for Bushard Trunk Sewer Rehabilitation, Contract No. I-24. 3. Approve a 4.5% contingency for change orders to said construction contract ($346,490) for Bushard Trunk Sewer Pipe Procurement, Contract No. 1-24P. 4. Approve a 7.5% contingency for change orders to said construction contract ($2,342,445) for 66 Inch Ellis Avenue Trunk Sewer, Contract No. 1-10A. 5. Approve a 5% contingency for change orders to said construction contract ($1,385,862) for Ellis Avenue Pump Station, Contract No. 1-10B. 6. Approve a 30% contingency for change orders to said construction contract ($1,898,700) for Standby Power and Reliability Improvements, Contract No.J-33-1A. 7. Approve a 1.75% contingency for change orders to said construction contract ($782,872) for Effluent Pump Station Annex, Contract No. J-77. 8. Approve a 4% contingency for change orders to said construction contract ($2,814,640) for Primary Clarifier Nos. 16-31 and Related Facilities, Contract No. P1-37. 9. Approve a 2.5% contingency for change orders to said construction contract ($4,807,402)for Headworks Improvements at Plant No. 2, Contract No. P2-66. 10. Approve a 2.75% contingency for change orders to said construction contract ($4,941,117) for Trickling Filters at Plant No. 2, Contract No. P2-90. 11. Approve an 8% contingency for amendments to said agreement ($198,078) for Replacement of the Rocky Point Pump Station, Job No. 5-50. Pagel 12. Approve a 2.8% contingency for amendments to said agreement ($59,575) for Rehabilitation of the 14" Street Pump Station, Job No. 5-51, and Rehabilitation of the "A" Street Pump Station, Job No. 5-52. 13. Approve a 7% contingency for amendments to said agreement ($38,905) for Gisler-Red Hill Trunk Improvements, Job No. 7-37. 14. Approve a 1.5% contingency for amendments to said agreement ($52,109) for Bushard Trunk Sewer Rehabilitation (Boyle), Job No. 1-2-4. 15. Approve a 1% contingency for amendments to said agreement ($33,599) for Standby Power and Reliability Improvements, Job No. J-33-1A. 16. Approve an 8% contingency for amendments to said agreement ($25,708) for Bushard Trunk Sewer Rehabilitation (Malcolm Pirnie), Job No. 1-2-4. 17. Approve a 5% contingency for amendments to said agreement ($112,577) for Cable Tray Improvements at Plant Nos. 1 and 2, Job No. J47. 18. Approve a 2% contingency for amendments to said agreement ($123,285) for Effluent Pump Station Annex, Job No. J-77. 19. Approve a 5% contingency for amendments to said agreement ($159,901) for Air Quality Improvements, Job No. J-79. 20. Approve a 10% contingency for amendments to said agreement ($139,786) for Central Generation Automation, Job No. J-79-1. 21. Approve a 1% contingency for amendments to said agreement ($78,017) for Primary Clarifier Nos. 16-31 and Related Facilities, Job No. P1-37. 22. Approve a 3% contingency for amendments to said agreement ($26,403) for Headworks Rehabilitation/Refurbishment at Plant No. 1, Job No. P1-71. 23. Approve a 1.2% contingency for amendments to said agreement ($70,552) for Activated Sludge Plant Rehabilitation at Plant No. 1 Job No. P1-82. 24. Approve a 5% contingency for amendments to said agreement ($38,969) for 66KV Substation at Plant No. 1, Job No. P1-97. 25. Approve a 10% contingency for amendments to said agreement ($366,538) for Sludge Digester Rehabilitation at Plant No. 1, Job No. P1-100. 26. Approve a 10% contingency for amendments to said agreement ($1,112,958) for Sludge Dewatering and Odor Control at Plant No. 1, Job No. P1-101. 27. Approve a 2% contingency for amendments to said agreement ($533,802) for Headworks Improvements at Plant No. 2, Job No. P2-66. Page 2 4 28. Approve a 4% contingency for amendments to said agreement ($110,148) for Rehabilitation of the Activated Sludge Plant at Plant No. 2, Job No. P2-74. SUMMARY • The new Delegation of Authority requires that contract contingencies be set prior to July 1, 2007, on active projects that have already procured the services of a design consultant and/or a construction contractor. These contract contingencies will be authorized to be used by the General Manager. Projects that will be closed prior to July 1, 2007, have the option of not setting a contract contingency and following the old way of getting approvals directly through the committees or the Board of Directors. • For construction contracts, there is a program goal for change orders of no more than 5%. Individual contracts will have goals set at above or below 5% depending on the type of project. The contingency being requested includes previously authorized change orders as well as projected change orders. These goals and performance are tracked and reported to the Operations Committee every quarter. • The Capital Improvement Program includes over 150 projects. Some projects are complete, some projects are ongoing, and some have yet to begin. The total construction contingency being requested is $22,090,098, which is 3.7% of the total original contract value of$601,754,183. This total is less than the overall program change order goal of 5%. • Professional Design Services Agreements (PDSA) do not have an overall contingency goal. Each project is so unique and dynamic that the goal is set after consideration of the project specks. • Attached is a list of the contingencies being requested including the overall value of the contract. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION This request to establish contract contingencies is in compliance with the Orange County Sanitation District's Delegation of Authority. ATTACHMENT Contract Contingencies Report JH:MS:kf H:WepttagendMCommittees\ommtions CommgtwkOperations 20071040M7.8 Constn ion&Engimmnng Contlngencies RevisMAm Page 3 CONTRACT CONTINGENCIES TABLE 1 Construction Contracts Job No. Job Title Ca9inal Contingency Contingency Contract Value % Value Rehabilitation of the 14th Street Pump Station and 5-51I5-52 Rehabilitation of the A Street Pump Station $ 11.697,780 6.20% It 725.252 Kiewit Pacific Co. 1.2-4 Bushard Trunk Sewer Rehabil8adon $ 30,003.210 6,32% $ 2,045.308 Steve P. Rados, Inc Bushard Trunk Sewer Pipe Procurement F2dP Ameron International Inc.) $ 7,699,777 4.50% $ 346,490 I-10A 66 Inch Ellis Avenue Trunk Sewer $ 31,232,600 7.60% $ 2.342.445 Barnard Solefarwhs 1-108 Ellis Avenue Pump Station Construction $ 27,717,245 5.00% $ 1.385.862 J.F.Shea ConStruCf10n J33-1A Standby Power and Reliability improvements $ 6.329.000 30.00% $ 1,898,700 J-77 Effluent Pump Station Annex $ 44.735.518 1.75% It 782,872 J.F.Shea Comartmbon P137 Primary Clarifiers Nos 16-31 and Related Facilities $ 70,366.000 4.00% $ 2,814,640 (Margate Construction M-66 Headworks Improvements at Plant No.2 $192296073 2.50% $ 4.807,402 J.F. Shea Construction P2-90 Tackling Fillers at Plain No.2 $179,676,980 2.75% $ 4,941,117 J.F.Shea Construction r CONTRACT CONTINGENCIES TABLE 2 Professional Design Service Agreements Job No. Job Tile Current PSA Contingency Contingency Value % Value 5-50 Replacement of the Rocky Point Pump Station $ 2.475,973 8.00% $ 195,078 Makolm Pimie Inc. Rehabilitation of the 14th Street Pump Station and 55115-52 Rehabilitation of the A Street Pump Station $ 2.127.683 2.80% E 59,575 Lse 8 Ra Ix. 7 37 Gisler-Red Hill Trunk Improvements, Reach B $ 555,780 TOM $ 38,905 (Tape Tach.Inc. 1-24 Bushard Trunk Sewer Rehabilitation $ 3,473,935 1.50% $ 52,109 (Boyle Entimesong —Des' n 124 Bushard Trunk Sewer Rehabilitation $ 321,3M 8.00% E 25,708 Makalm Pimie Inc. r Design J 33-1A Standby Power and Reliability Improvements $ 3,359.932 1.00% $ 33.599 SPEC Services J-47 Cable Tray Improvements at Plant Nos 1 8 2 $ 2,251.548 5.00% $ 112.577 J T7 Effluent Pump Station Annex $ 6.164,240 2.00% $ 123.285 Black 8 Veakh C lion J79 Air Quardy Improvements $ 3.198.010 6.00% $ 159,901 Mekolm Pimie Inc. J-79-1 Central Generation Automation $ 1,397,862 10.00% $ 139,786 Black 8 Veatch COMMtkn P7 37 Primary Clarifiers Nos 16-31 and Related Facilities $ 7 801 658 1 00% $ 78,017 Brown 8 Caldwen P1 71 Headwarks RehabiritatioNRaNrbishmem at Plant No. t S 880,096 3.00% $ 26.000 Caru/b E rose s PI.82 waled Sludge Plant Rehabilita0on at Plant No.1 $ 5,879,342 1.20% $ 70.552 HDR E meen PI-97 66 V Substatim at Plant No.1 $ 779,381 5.00% $ 38.969 P7 100 Sludge Digester Rehabilitation at Plant No. 1 $ 3,865,3T7 10.00% $ 366,538 Earth Tech Inc. P1 101 Sludge Dewatering and Odor Control at Plant No.1 $ 11,129,576 10.00% S 1.112.958 Black 8 Veatch Corporation) P258 Headworks Improvements at Plant No.2 $ 26.690.094 2.00% $ 533,802 Cameo E insets P2-74 Rehabilitation of the Activated Sludge Plant at Plant No.2 $ 2,753,699 4.00% $ 110,148 MWH Americas Inc. H:1ntglobaMgenda Draft ReponslPDC%Con9ngency for CIP AR Tables 3(6).doc i MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday,April 11,2007,AT 5:00 P.M. A meeting of the Administration Committee of the Orange County Sanitation District was held on April 11, 2007, at 5:00 p.m., in the Sanitation Districts Administrative Office. (1) The roll was called and a quorum declared present, as follows: ADMINISTRATION COMMITTEE STAFF PRESENT: MEMBERS: Jim Ruth, General Manager DIRECTORS PRESENT: Bob Ghirelli, Assistant General Manager Mark Waldman, Chair Lorenzo Tyner, Director of Finance and Phil Luebben,Vice Chair Administrative Services Steven Choi Jim Herberg, Director of Engineering Jon Dumitru Jeff Reed, Human Resources and Employee Darryl Miller Relations Manager Joy Neugebauer Mike White, Controller Chris Norby Lilia Kovac, Committee Secretary Ken Parker Rich Spencer Sal Tinajero Angela Belt Jim Winder Jim Burror Doug Davert, Board Vice Chair Norbert Gaia Bob Geggie DIRECTORS ABSENT: Randy Kleinman Bill Dalton Rich Freschi OTHERS PRESENT: Jim Ferryman, Board Chair Brad Hogin, General Counsel Don McLean, Driver-Alliance Ed Soong, Public Resources Advisory Group Toby Weissert, Carollo Engineering Vicki West, Driver-Alliance (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 Waldman did not give a report. Minutes of the Administration Committee April 11, 2007 Page 2 (5) REPORT OF THE GENERAL MANAGER Assistant General Manager, Bob Ghirelli updated the committee on status of the North County Yard and its occupancy timeline; and Jim Herberg, Director of Engineering, briefly reviewed the Capital Improvement Projects for the 2007/08 fiscal year, as well as Engineering process improvements. (6) REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES Lorenzo Tyner, Director of Finance and Administration, reported progress made in the insurance rate quotation process for acquiring best competitive rates for Excess Workers' Compensation, Excess Liability coverage, and Property coverage. (7) REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, reported that Kern County has filed a lawsuit against OCSD's Board-approved biosolids addendum, which provides additional CEQA review of the Tule Ranch operation for land application. (8) CONSENT CALENDAR ITEMS Consideration of motion to approve all agenda items appearing on the Consent Calendar not specifically removed from same, as follows: a. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the March 14, 2007 meeting of the Administration Committee. END OF CONSENT CALENDAR (9) ACTION ITEMS a. ADM07-26 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to: (1)Adopt Resolution No.OCSD 07- ,Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2007A,Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $315,000,000, Approving a Notice of Intention to Sell, Authorizing the Distribution of an Official Notice Inviting Bids and an Official Statement in Connection with the Offering and Sale of Such Certificates and Authorizing the Execution of Necessary Documents and Certificates and Related Actions. (2)That the Orange County Sanitation District Financing Corporation adopt Resolution No. FC-04,Authorizing the Execution and Delivery by the Corporation of an Installment Purchase Agreement and a Trust Agreement in connection with the execution and delivery of Orange Minutes of the Administration Committee April 11, 2007 Page 3 County Sanitation District Refunding Certificates of Participation, Series 2007A; Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $315,000,000 and; Authorizing the Execution of Necessary Documents and Certificates and Related Actions. b. ADM07-27 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Ordinance No. OCSD-32,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-30B. Directors requested that the agenda report be modified to include the amount of the increase. C. ADM07-28 MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to adopt Ordinance No. OCSD-33,Adopting Fees, Revised Procedures and Policies Concerning Annexation of Properties to the District and Repealing Ordinance No. OCSD-29. (10) INFORMATIONAL ITEMS a. ADM07-29 2006-07 and 2007-08 District Budget Update. Lorenzo Tyner, Director of Finance and Administrative Services,briefly updated the Directors on the operating budget as expenses are assessed and forecasted for the 2007/08 budget. The revenue budget will be reviewed in May, and summary presentations will be presented to the committees in June for adoption. b. ADM07-30 2007/08 Benefits Program Renewal Costs Rich Spencer, Human Resources Supervisor, reviewed the cost of the employee benefits for the next fiscal year, and compared the costs to the current year and two years prior. C. ADM07-31 Property Tax Credit Adjustments for Class I and Class II Permits Controller, Mike White, briefly presented the adjustments to standardize the permit user fees methodology for permittees beginning 2008/09. Minutes of the Administration Committee N April 11, 2007 Page 4 (11) CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(1). The Committee convened in Closed Session at 6:45 p.m. pursuant to Govemment Code Section 54957(b)(1). Confidential Minutes of the Closed Session held by the Administration Committee have been prepared in accordance with California Government Code Section 54957(b)(1), and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session at 7:00 P.M. (12) OTHER BUSINESS,COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY Director Luebben thanked the Sanitation District for providing support to the City of Cypress Arbor Day, and Mr. Ruth for being the guest speaker at the city council meeting. (13) MATTERS WHICH A DIRECTOR MAY WISH TO PLACE ON A FUTURE AGENDA FOR ACTION AND STAFF REPORT There were none. (14) FUTURE MEETING DATES The next regular Administration Committee meeting is scheduled for May 9, 2007, at 5 p.m. (15) ADJOURNMENT The Chair declared the meeting adjourned at 7:07 P.M. Submitted by: tidt x Lifia Kovac Clerk of the Board H:bepDagendaTommitte %Adman Comae e10407%061107 Administ flon Minutes.d. ADMINISTRATION COMMITTEE Meeting Date To ad.of dr. 04/11/07 04/26r07 11 AGENDA REPORT Item Number Item Number ADM07-26 11rb1 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator. Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: CERTIFICATES OF PARTICIPATION (COPS), SERIES 2007A GENERAL MANAGER'S RECOMMENDATION (1) Adopt Resolution No. OCSD07-07, Authorizing the Execution and Delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2007A, Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $315,000,000,Approving a Notice of Intention to Sell, Authorizing the Distribution of an Official Notice Inviting Bids and an Official Statement in Connection with the Offering and Sale of Such Certificates and Authorizing the Execution of Necessary Documents and Certificates and Related Actions. (2) That the Orange County Sanitation District Financing Corporation adopt Resolution No. FC-04, Authorizing the Execution and Delivery by the Corporation of an Installment Purchase Agreement and a Trust Agreement in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2007A; Authorizing the Execution and Delivery of such Certificates Evidencing Principal in an Aggregate Amount of Not to Exceed $315,000,000 and; Authorizing the Execution of Necessary Documents and Certificates and Related Actions. SUMMARY The Board of Directors has previously authorized the issuance of new fixed rate Certificates of Participation (COP) debt sufficient to refund up to$280 million of COP Series 2003 and the hiring of a financing team. The independent financial advisor is Public Resources Advisory Group and the bond counsel and disclosure counsel is Orrick, Herrington & Sutcliffe. Woodruff, Spradlin & Smart, our General Counsel, has also been assisting staff. The purpose of the financing is to take advantage of the current low interest rate environment and to advance refund all or a portion of the COP Series 2003. Many maturities of this issue may be advance refunded for significant economic savings under current market conditions in excess of three (3) percent as the minimum present value of savings as required by the Sanitation District's policy. The draft documents for the financing will be distributed to the rating agencies following the Administration Committee meeting. These documents will be presented to the OCSD Board of Directors and Financing Corporation on April 25, 2007 for final approval. Staff and consultants will make a brief presentation and provide an overview of the draft documents and the financing schedule at the Administration Committee meeting. Form No.0B1020 a Iwa_avmmr Page 1 PRIOR COMMITTEE/BOARD ACTIONS September 26, 2001: Adoption of Debt Policy October 25, 2006: Renewed Consultant Agreement with Public Resources Advisory Group for an additional five years effective November 2006. February 28, 2007: Directed staff to initiate procedures to refund Certificates of Participation (COP) Series 2003 up to $280 million in new fixed-rate Certfficates of Participation (COP) debt. February 28, 2007: Authorized the General Manager to negotiate and enter a Consultant Services Agreement with Orrick, Herrington & Sutcliffe to provide bond counsel services. ADDITIONAL INFORMATION The most recent Strategic Plan capital improvement program requires approximately$2.2 billion over the next 10 years, of which approximately $1.2 billion is to be financed through long-term borrowings in accordance with the District's long-term debt fiscal policy and cash flow projections The next new debt issuance of$300 million of COP debt is not scheduled until fiscal year 2007-08. A total of up to $1.2 billion in COP debt issuance is being proposed over the next ten years with a new issuance scheduled approximately every year for at least the next six years. These financings are needed early in the 10-year capital improvement program because the bulk of the construction is scheduled during the next seven years. Due to the current low interest rate environment, staff is proposing to refund at least$84.0 million of COP Series 2003 maturing in years 2027 through 2030 with annual coupon rates of 5.25 percent, as shown in bold in the chart below. Additional bond maturities may be proposed to be refunded depending on the existing market rates at the time of issuance. COP Series 2003 Maturity Bond Type Principal Amount Coupon Call Date Call Price 02/0121 Serial $ 4,495,000 5.25% 08/01/13 100.0D0 0210122 Serial 15.100.000 5.00% 08/01/13 100.000 0210123 Serial 15,805,000 5.00% 08/O1/13 100.000 0210124 Serial 16,640.000 5.00% 08/01/13 100.000 O2/0125 Serial 17,425,000 5.00% 08/01/13 100.000 02/01/26 Serial 18,350,000 5.00% 08/01/13 100.000 0210127 Serial 19,265,000 5.25% 08/01/13 100.000 02/0128 Serial 20.235.000 5.25% 08/01/13 100.000 02/01/30 Term 1 44.505.000 5.25% 1 08/01/13 100.000 O2101/33 1 Term 1 108,180,000 1 5.00% 1 08/01/13 100.000 Total 1 $280,000,000 Folm No.1 W1= Page 2 The Board of Directors and the Financing Corporation are required to adopt separate Resolutions to complete this borrowing. Drafts of these two Resolutions are attached for ' review. A Financing Corporation is required by the structure of the COPS and was formed in April 2000, solely to satisfy this need. The Board of Directors of the Corporation is the same as the Board of Directors of the District and the Corporation meets after an adjournment of the OCSD Board. The OCSD Resolution authorizes the execution and delivery of certain legal documents and the execution and delivery of Certificates of Participation evidencing principal in an aggregate amount of not to exceed $315,000,000 all as spelled out in the title as follows: "A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE EXECUTION AND DELIVERY BY THE DISTRICT OF AN INSTALLMENT PURCHASE AGREEMENT, A TRUST AGREEMENT, AN ESCROW AGREEMENT AND A CONTINUING DISCLOSURE AGREEMENT IN CONNECTION WITH THE EXECUTION AND DELIVERY OF ORANGE COUNTY SANITATION DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION, SERIES 2007A, AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH CERTIFICATES EVIDENCING PRINCIPAL IN AN AGGREGATE AMOUNT OF NOT TO EXCEED $315,000,000, APPROVING A NOTICE OF INTENTION TO SELL, AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL NOTICE INVITING BIDS AND AN OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF SUCH CERTIFICATES AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS" The Resolution of the Corporation is somewhat shorter and simpler. It authorizes three actions that are similarly enumerated in the title as follows: "A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION AUTHORIZING THE EXECUTION AND DELIVERY BY THE CORPORATION OF AN INSTALLMENT PURCHASE AGREEMENT AND A TRUST AGREEMENT IN CONNECTION WITH THE EXECUTION AND DELIVERY OF ORANGE COUNTY SANITATION DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION, SERIES 2007A, AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH CERTIFICATES EVIDENCING PRINCIPAL IN AN AGGREGATE AMOUNT OF NOT TO EXCEED $315,000,000 AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS." Copies of the Resolutions are enclosed with the agenda along with the Preliminary Official Statement. To reduce reproduction and postage expenses, copies of the other documents are not included, but will be available electronically within the Director's website prior to the Board meeting. Following is a chart listing the remaining steps to be completed for the issuance of the COP Series 2007A debt issuance: D Develop rating agency presentation April ➢ Conduct rating agency presentations D Finalize debt service and cash flow modeling ➢ Board approval of legal and disclosure documents ➢ Conduct Competitive Sale of Fixed Rate COP 2007A ➢ Execute COP 2007A Refunding issue May ➢ Investment of Bond Proceeds D Debt Administration Foun No.0 IM Page 3 The Consultant Services Agreements with PRAG and Orrick total a not-to-exceed amount of F $225,000. These and other costs, such as printing the Official Statement, underwriters' discount, rating agency fees and trustee's fees will be paid from the proceeds of the borrowing. ATTACHMENTS t. Proposed Resolution of OCSD 2. Proposed Resolution of the OCSD Financing Corporation 3. Preliminary Official Statement JDR:LT:mw Foem No.owiw3 NereeRp01DM9�IM� 4 RESOLUTION NO.OCSD 07-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AUTHORIZING THE EXECUTION AND DELIVERY BY THE DISTRICT OF AN INSTALLMENT PURCHASE AGREEMENT, A TRUST AGREEMENT, AN ESCROW AGREEMENT AND A CONTINUING DISCLOSURE AGREEMENT IN CONNECTION WITH THE EXECUTION AND DELIVERY OF ORANGE COUNTY SANITATION DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION, SERIES 2007A, AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH CERTIFICATES EVIDENCING PRINCIPAL IN AN AGGREGATE AMOUNT OF NOT TO EXCEED $315,000,000, APPROVING A NOTICE OF INTENTION TO SELL, AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL NOTICE INVITING BIDS AND AN OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF SUCH CERTIFICATES AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS WHEREAS, in order to finance the acquisition, construction and installation of certain improvements to the wastewater system (the "Prior Project") of the Orange County Sanitation District (the "District"), the District purchased the Prior Project from the Orange County Sanitation District Financing Corporation(the"Corporation"), and the Corporation sold the Prior Project to the District, for the installment payments (the "Prior Installment Payments") to be made by the District pursuant to the Installment Purchase Agreement, dated as of July 1, 2003 (the"Prior Installment Purchase Agreement'),by and between the District and the Corporation; WHEREAS, in order to provide the funds necessary to finance the Prior Project, the District and the Corporation caused to be executed and delivered the Orange County Sanitation District Certificates of Participation, Series 2003 (the "Prior Certificates"), evidencing direct, undivided fractional interests in the Prior Installment Payments,and the interest thereon; WHEREAS, the District desires to refinance all or a portion of the Prior Project (to the extent so refinanced, the "Project") by prepaying all or a portion of the Prior Installment Payments,thereby causing all or a portion of the Prior Certificates to be prepaid; WHEREAS, in order to provide the funds necessary to prepay the Prior Installment Payments to be so prepaid, the District and the Corporation desire that the Corporation purchase the Project from the District, and the District sell the Project to Corporation,and that the District then purchase the Project from the Corporation, and the Corporation sell the Project to the District, for the installment payments (the `Installment Payments") to be made by the District pursuant to an Installment Purchase Agreement (such Installment Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the"Installment Purchase Agreement"); OHS Wesr:260151976.2 4175910GHINKH WHEREAS, the Corporation proposes to assign without recourse certain of its rights under and pursuant to the Installment Purchase Agreement to Union Bank of California,N.A.,as trustee (the "Trustee"), pursuant to a Trust Agreement among the Trustee, the Corporation and the District (such Trust Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Trust Agreement"); WHEREAS, in consideration of such assignment and the execution and entering into of the Trust Agreement, the Trustee will execute and deliver Orange County Sanitation District Refunding Certificates of Participation, Series 2007A (the "Certificates"), evidencing direct, undivided fractional interests in the Installment Payments,and the interest thereon; WHEREAS, the funds to pay the Prior Installment Payments to be prepaid, and the interest thereon, and the Prior Certificates evidencing interests therein, will be applied to such purpose pursuant to an Escrow Agreement by and between the District and Union Bank of California, N.A., as prior trustee and escrow bank (such Escrow Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution,being referred to herein as the "Escrow Agreement"); WHEREAS,the District desires to provide for the public sale of the Certificates; WHEREAS,a form of the Notice of Intention to Sell to be published in connection with the public offering and sale of the Certificates has been prepared (such Notice of Intention to Sell, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the"Notice of Intention to Sell"); WHEREAS, a form of the Official Notice Inviting Bids to be distributed in connection with the public offering and sale of the Certificates has been prepared (such Official Notice Inviting Bids, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the"Notice Inviting Bids"); WHEREAS,a form of the Preliminary Official Statement to be distributed in connection with the public offering of the Certificates has been prepared (such Preliminary Official Statement in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Preliminary Official Statement"); WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 ("Rule 15c2-12') requires that, in order to be able to purchase or sell the Certificates, the underwriter thereof must have reasonably determined that the District has undertaken in a written agreement or contract for the benefit of the holders of the Certificates to provide disclosure of certain financial information and certain material events on an ongoing basis; WHEREAS, in order to cause such requirement to be satisfied, the District desires to enter into a Continuing Disclosure Agreement with the Trustee (such Continuing Disclosure Agreement in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Continuing Disclosure Agreement"); OHS WM:260181976.2 41758-10GHI M 2 WHEREAS,there have been prepared and submitted to this meeting forms of: (a) the Installment Purchase Agreement; (b) the Trust Agreement; (c) the Escrow Agreement; (d) the Notice of Intention to Sell; (e) the Notice Inviting Bids; (f) the Preliminary Official Statement; and (g) the Continuing Disclosure Agreement; WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the financing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the District is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms herein provided; NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE,DETERMINE AND ORDER: Section 1. All of the recitals herein contained are true and correct and the Board of Directors of the District(the"Board") so finds. Section 2. The Installment Purchase Agreement, in substantially the forth submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. The Chair of the Board of Directors,and such other member of the Board of Directors as the Chair may designate, the General Manager of the District, the Director of Finance of the District, and such other officer of the District as the Director of Finance may designate (the "Authorized Officers") are, and each of them is, hereby authorized and directed, for and in the name of the District, to execute and deliver the Installment Purchase Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Installment Purchase Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate principal amount of Installment Payments in excess of$315,000,000, shall not result in a true interest cost for the Installment Payments in excess of 5.00% and shall not result in a final Installment Payment later than February 1, 2033. Section 3. The Trust Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. The Authorized Officers are,and each of them is, hereby authorized and directed, for and in the name OHS Wm:260181976.2 41758.100HI/haCH 3 of the District, to execute and deliver the Trust Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Trust Agreement by such Authorized Officer. Section 4. The execution and delivery of Certificates evidencing principal in an aggregate amount of not to exceed $315,000,000, payable in the years and in the amounts, and evidencing principal of and interest on the Installment Payments as specified in the Trust Agreement as finally executed,are hereby authorized and approved. Section 5. The prepayment of all or a portion of the Prior Installment Payments,and the Prior Certificates evidencing interests therein, is hereby authorized and approved and the Authorized Officers are, and each of them is, hereby authorized and directed to determine which of the Prior Installment Payments, and Prior Certificates, are to be so prepaid; provided, however,that the net present value savings from such prepayment shall not be less than 3.00%. Section 6. The Escrow Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the District, to execute and deliver the Escrow Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve. such requirement or approval to be conclusively evidenced by the execution of the Escrow Agreement by such Authorized Officer. Section 7. The forth of Notice of Intention to Sell, in substantially the form submitted to this meeting and made a part hereof as though set forth in full herein, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Notice of Intention to Sell in connection with the offering and sale of the Certificates is hereby approved. The Authorized Officers are each hereby authorized and directed,for and in the name and on behalf of the District,to cause the Notice of Intention to Sell to be published once in The Bond Buyer (or in such other financial publication generally circulated throughout the State of California or reasonably expected to be disseminated among prospective bidden for the Certificates as an Authorized Officer shall approve as being in the best interests of the District) at least five days prior to the date set for the opening of bids in the Notice Inviting Bids, with such changes, insertions and omissions therein as an Authorized Officer may require or approve, such requirement or approval to be conclusively evidenced by such publishing of the Notice of Intention to Sell. Section 8. The Notice Inviting Bids, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, be and the same is hereby approved, and the use of the Notice Inviting Bids in connection with the offering and sale of the Certificates is hereby authorized and approved. The terms and conditions of the offering and sale of the Certificates shall be as specified in the Notice Inviting Bids. Bids for the purchase of the Certificates shall be received at the time and place set forth in the Notice Inviting Bids, The Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of OHS Wasr:260181976.2 41758-100HUNIKH 4 the District, to accept the bid for the Certificates with the lowest true interest cost, or to reject all bids therefor,in accordance with the terms of the Notice Inviting Bids. Section 9. The Preliminary Official Statement, in substantially the form presented to this meeting and made a part hereof as though set forth in full herein, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Certificates is hereby authorized and approved. The Authorized Officers are each hereby authorized to certify on behalf of the District that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing,rating and related information as permitted by Rule 15c2-12). The Authorized Officers are each hereby authorized and directed to famish, or cause to be furnished, to prospective bidders for the Certificates a reasonable number of copies of the Preliminary Official Statement. Section 10. The preparation and delivery of a final Official Statement (the "Official Statement'), and its use in connection with the offering and sale of the Certificates, be and the same is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Authorized Officers are, and each of them is, hereby authorized and directed to execute the final Official Statement and any amendment or supplement thereto,for and in the name of the District. Section 11. The Continuing Disclosure Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the District, to execute and deliver the Continuing Disclosure Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Continuing Disclosure Agreement by such Authorized Officer. Section 12. The Authorized Officers are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the execution and delivery of the Certificates and the transactions contemplated by the agreements or documents referenced in this Resolution. Section 13. All actions heretofore taken by the officers and employees of the District with respect to the execution, delivery and sale of the Certificates, or in connection with or related to any of the agreements or documents referenced in this Resolution, are hereby approved,confirmed and ratified. OHS Wasr:260181976.2 41758-IOGHI/WM 5 Section 14. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED at a regular meeting held April 25,2007. Chair ATTEST: Clerk of the Board APPROVED: General Counsel, Orange County Sanitation District OHS WM:260181976.2 41738-10GHI/NIKH 6 STATE OF CALIFORNIA ) as COUNTY OF ORANGE ) 1, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 07-07, was passed and adopted at a regular meeting of said Board on the 25th day of April 2007, by the following vote,to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the official seal of Orange County Sanitation District this_day of ,2007. Clerk of the Board of Directors Orange County Sanitation District OHS WEEr:260181976.2 41758•10OHI NIKH RESOLUTION NO. FC-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION AUTHORIZING THE EXECUTION AND DELIVERY BY THE CORPORATION OF AN INSTALLMENT PURCHASE AGREEMENT AND A TRUST AGREEMENT IN CONNECTION WITH THE EXECUTION AND DELIVERY OF ORANGE COUNTY SANITATION DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION, SERIES 2007A, AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH CERTIFICATES EVIDENCING PRINCIPAL IN AN AGGREGATE AMOUNT OF NOT TO EXCEED $315,000,000 AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS. WHEREAS, in order to finance the acquisition, construction and installation of certain improvements to the wastewater system (the "Prior Project") of the Orange County Sanitation District (the "District'), the District purchased the Prior Project from the Orange County Sanitation District Financing Corporation(the "Corporation"), and the Corporation sold the Prior Project to the District, for the installment payments (the `Prior Installment Payments") to be made by the District pursuant to the Installment Purchase Agreement, dated as of July 1, 2003 (the`Prior Installment Purchase Agreement"),by and between the District and the Corporation; WHEREAS, in order to provide the funds necessary to finance the Prior Project, the District and the Corporation caused to be executed and delivered the Orange County Sanitation District Certificates of Participation, Series 2003 (the "Prior Certificates"), evidencing direct, undivided fractional interests in the Prior Installment Payments, and the interest thereon; WHEREAS, the District desires to refinance all or a portion of the Prior Project (to the extent so refinanced, the "Project") by prepaying all or a portion of the Prior Installment Payments,thereby causing all or a portion of the Prior Certificates to be prepaid; WHEREAS, in order to provide the funds necessary to prepay the Prior Installment Payments to be so prepaid,the District and the Corporation desire that the Corporation purchase the Project from the District, and the District sell the Project to Corporation, and that the District then purchase the Project from the Corporation, and the Corporation sell the Project to the District, for the installment payments (the Installment Payments") to be made by the District pursuant to an Installment Purchase Agreement (such Installment Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the"Installment Purchase Agreement"); WHEREAS, the Corporation proposes to assign without recourse certain of its rights under and pursuant to the Installment Purchase Agreement to Union Bank of California,N.A., as trustee (the "Trustee"), pursuant to a Trust Agreement among the Trustee, the Corporation and the District (such Trust Agreement, in the form presented to this meeting, with such changes, OHS Wrsr:260182132.2 41758-10GHINKH insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Trust Agreement'); WHEREAS, in consideration of such assignment and the execution and entering into of the Trust Agreement, the Trustee will execute and deliver Orange County Sanitation District Refunding Certificates of Participation, Series 2007A (the "Certificates"), evidencing direct, undivided fractional interests in the Installment Payments,and the interest thereon; WHEREAS,there have been prepared and submitted to this meeting forms of: (a) the Installment Purchase Agreement; and (b) the Trust Agreement; WHEREAS, all acts, conditions and things required by the Constitution and laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the actions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the Corporation is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such actions for the purpose, in the manner and upon the terms herein provided; NOW, THEREFORE, the Board of Directors of Orange County Sanitation District Financing Corporation DOES HEREBY RESOLVE,DETERMINE AND ORDER: Section 1. All of the recitals herein contained are true and correct and the Board of Directors of the Corporation (the"Board")so finds. Section 2. The Installment Purchase Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. The President of the Corporation,the Vice-President of the Corporation,the Treasurer of the Corporation and the Secretary of the Corporation, and such other officer of the Corporation as the President may designate (the"Authorized Officers")are, and each of them is, hereby authorized and directed, for and in the name of the Corporation, to execute and deliver the Installment Purchase Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Installment Purchase Agreement by such Authorized Officer; provided, however, that such changes, insertions and omissions shall not result in an aggregate principal amount of Installment Payments in excess of$315.000,000, shall not result in a true interest cost for the Installment Payments in excess of 5.00% and shall not result in a final Installment Payment later than February 1,2033. Section 3. The Trust Agreement, in substantially the foam submitted to this meeting and made a part hereof as though set forth in full herein, be and the same is hereby approved. The Authorized Officers are, and each of them is, hereby authorized and directed, for and in the name of the Corporation, to execute and deliver the Trust Agreement in the form presented to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the OHS We 1601831322 41758-10GHI/MKH 2 same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Trust Agreement by such Authorized Officer. Section 4. The execution and delivery of Certificates evidencing principal in an aggregate amount of not to exceed $315,000,000, payable in the years and in the amounts, and evidencing direct, undivided fractional interests in the Installment Payments, and the interest thereon, as specified in the Trust Agreement as finally executed, are hereby authorized and approved. Section 5. The officers and agents of the Corporation are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the execution and delivery of the Certificates and the transactions contemplated by the agreements or documents referenced in this Resolution. Section 6. All actions heretofore taken by the officers and agents of the Corporation with respect to the execution, delivery and sale of the Certificates, or in connection with or related to any of the agreements or documents referenced in this Resolution, are hereby approved,confirmed and ratified. Section 7. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED at a meeting held April 25,2007. President, Orange County Sanitation District Financing Corporation ATTEST: Clerk of the Board Orange County Sanitation District Financing Corporation APPROVED: General Counsel, Orange County Sanitation District Financing Corporation OHS MST 260182132.2 41758-100HVMM 3 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) 1, , Clerk of the Board of Directors of the Orange County Sanitation District Financing Corporation, do hereby certify that the foregoing Resolution No. was passed and adopted at a meeting of said Board on the 25th day of April, 2007, by the following vote,to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District Financing Corporation, California, this _ day of , 2007. Clerk of the Board Orange County Sanitation District Financing Corporation OHS Wrsr:2601821312 4I758-IOGHIIWH OH&S 4/2107 Draft This Preliminary Official Statement and the information contained herein are subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdic(ion in which such offer, solicitation or sale would be unlawful. PRELIMINARY OFFICIAL STATEMENT DATED APRIL ,2007 NEW ISSUE-BOOK-ENTRY-ONLY Ratings; Moody's: '• Standard&Poor's " Fitch (Sae"RATINGS"herein) In the opinion of Orrick, Herrington&Sntclie LIP, Las Angeles, California, Special Counsel to the District, based upon an analysis of existing Imes, regulations, nd/ngs and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, the interest an the Installment Payments paid by the District tinder the Installment Purchase Agreement and received by the owners of the Certificates is excluded from gross Income for federal income tar purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. In the jinther opinion of Special Counsel, such interest is not a specfc preference item for purposes of the federal individual or corporate alternative minimum taxes, although Special Counsel observes that such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. Special Counsel expresses no opinion regarding any other tax consequences related to the ownership ar disposition of, or the accrual or receipt of interest evidenced by, the Certificates. See "TAX MATTERS"herein. ORANGE COUNTY SANITATION DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION,SERIES 2007A Dated: Date of Delivery Due: February 1,as shown below The Orange County Sanitation District Refunding Certificates of Participation, Sties 2007A (the "Certificates") evidence direct,fractional undivided interests of the Owners thereof in the instalment payments(the"Installment Payments"),and the interest thereon,to be made by the Orange County Sanitation District(the"District")pursuant to the Installment Purchase Agreement,dated as of 1,2007(the"Installment Purchase Agreement"),by and between the District and the Orange County Sanitation District Financing Corporation (the "Corporation"). Pursuant to the Master Agreement for District Obligations, dated as of August 1, 2000 (the "Master Agreement"), by and between the District and the Corporation, the District has established conditions and terms upon which obligations such as the Installment Payments and the interest thereon, will be incurred and secured. Installment Payments under the Installment Purchase Agreement are payable solely from Net Revenues in more fully described in the Master Agreement, the"Net Revenues")as provided in the Installment Purchase Agreement, consisting primarily of all income and revenue received by the District from the operation or ownership of the District's Wastewater System(the"Wastewater System")remaining after payment of Maintenance and Operation Cost, as further described in "SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES" herein. The Installment Purchase Agreement provides that the obligation of the District to pay the Installment Payments, and payment of interest thereon, and certain other payment required to be made in accordance with the Installment Purchase Agreement,solely from Net Revenues,is absolute and unconditional. See"SECURITY AND SOURCES OF PAYMENT" herein. The proceeds of the Certificates,together with other available moneys, will be used to(i)prepay all or a portion of the prior installment payments and related certificates of participation in order to refinance certain improvements to its Wastewater System(the "Project")(if)fund a reserve fund for the Certificates,and(iii)pay the costs incurred in connection with the execution and delivery of the Certificates. See"REFUNDING PLAN"herein. Interest evidenced by the Certificates will be payable semiannually on February 1 and August I of each year,commencing on August 1,2007. See"TILE CERTIFICATES"herein. The Certificates will be initially delivered only in book-entry,form and will be registered in the name of Cede&Co.,as nominee of The Depository Trust Company,New York,New York("DTC"),which will act as securities depository for the Certificates. Individual purchases of the Certificates will be made in book-entry,form only. Purchasers of Certificates will not receive physical certificates representing their ownership interest in the Certificates purchased. The Certificates will be delivered in denominations of$5,000 and any integral multiple thereof. Payment of principal and interest • Preliminary,subject to change. OHS wesc2601WISA 41758-11 h001/b001 evidenced by the Certificates are payable directly to DTC by Union Bank of California,N.A.,as trustee(the"Trustee"). Upon receipt of payments of such principal and interest, DTC will in nun distribute such payments to the beneficial owners of the Certificates. See APPENDIX D—"BOOK-ENTRY-ONLY SYSTEM"herein. MATURITY SCHEDULE' S Serial Certificates Matsty principal Inters pd. maturity Principal Intent Price or (February 1) Anmant Rate Yield CUSP (Febuaiy 1) Amount Rat Yield CUSP $ %Term Certificates Due February 1,20_Yield—_% $ _%Term Certificates Due February 1,20_Yield—_Vo The Certiftcattes are subject to prepayment prior to maturity,as described herein.Sec"TBE CERTIFICATES"herein. THE OBLIGATION OF THE DISTRICT TO PAY THE INSTALLMENT PAYMENTS,AND THE INTEREST THEREON, AND OTHER PAYMENTS REQUIRED TO BE MADE BY IT UNDER THE INSTALLMENT PURCHASE AGREEMENT IS A SPECIAL OBLIGATION OF THE DISTRICT PAYABLE,IN THE MANNER PROVIDED IN THE INSTALLMENT PURCHASE AGREEMENT,SOLELY FROM NET REVENUES AND OTHER FUNDS PROVIDED FOR IN THE INSTALLMENT PURCHASE AGREEMENT,AND DOES NOT CONSTITUTE A DEBT OF THE DISTRICT OR OF THE STATE OF CALIFORNIA,OR OF ANY POLITICAL SUBDIVISION THEREOF, IN CONTRAVENTION OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE DISTRICT OR THE STATE OF CALIFORNIA,OR ANY POLITICAL SUBDIVISION THEREOF,IS PLEDGED TO THE PAYMENT OF THE INSTALLMENT PAYMENTS. OR THE INTEREST THEREON,OR OTHER PAYMENTS REQUIRED TO BE MADE UNDER THE INSTALLMENT PURCHASE AGREEMENT. SEE "SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES"HEREIN. This cover page contains information intended for quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Capitalized terms used in this cover page shall have the meanings given such terms herein. An investment in the Certificates involves chain risks. See"RISK FACTORS"herein for a discussion of factors that should be considered in addition to the other matters set forth herein,in evaluating the investment quality of the Certificates. (The Cerlficales will be sold by competitive sale on or about May 2007 pursuant to the Official Noll"Grvithig Bids dared April 2006. See APPENDIX G— "OFFICIAL NOTICE INVITING BIAS" attached hereto. For additional b{jormation concerning the campelitive sale of the Certfcales, contact the Districl's financial advisor, Public Resources Advisory Group, Los Angeles, California. The Cert fcittes are offered when, ar and if eseculed and delivered and received by the Initial Purchaser,subject to the approval by Orrick, Herrington & Sutcliffe LLP, Los Angeles, Calfoi da, Special Counsel to the District, and certain other conditions. Certain legal matters will be parsed upon jar the District and the Corporation by Waodmff Spradhn & Stuart, a Professional Corpo•ation, Orange, Cal fornia and for the District by Or, Herrington&Sutcliffe LLP as Disclosure Counsel to the District. It Is anticipated that the Certificates in definitive form will be available for delivery to DTC in Nov York, Nov Ywk on or about May.20071 [FOR FINAL OFFICIAL STATEMENT.' The Certificates ivere sold by competitive sale on April_ 1007 pursuant to the Official Notice Imlling Bids and Official Bid Farm dared April 2007. The Certlfncates are offered when, wand if executed and delivered and received by the Initial Purcharer, subject to the approval by Orrick, Herrington & Suldife LLP, Los Angeles, California, Special Counsel to the District, and certain other conditions. Certain legal matters will be passed upon for the District and the Corporation by Woodnlf Sprodlin di Smart, a Professional Corporation, Orange, Calijomla Public Resources Advisory Group, Las Angeles, California has served as financial advisor to the District in connection with the arecution and delivery of the Certificates. It is anticipated that the Ce Ijflcates in definitive form will be avodable jw delivery to DTC in Nov York, Nov Ywk an or about May 2007.] Dated:__,2007 OHS WM:260194418.4 41738.11 M1U-VMKH MAP OF THE DISTRICT - OHS Wa 26018441&4 4175&11 hllaiaAKH ORANGE COUNTY SANITATION DISTRICT Board of Directors James Ferryman (Chair)—Costa Mesa Sanitary District Doug Davert(Vice Chair)— Tustin Harry Sidhu-Anaheim Don Webb—Newport Beach Roy Moore—Brea Jon Dumitru—Orange Patsy Marshall—Buena Park Constance Underhill—Placentia Phil Luebben—Cypress Sal Tmajero—Santa Ana Larry Crandall—Fountain Valley Charles Antos—Seal Beach Don Bankhead—Fullerton David Shawver—Stanton Bill Dalton—Garden Grove Rich Freschi— Villa Park Cathy Green—Huntington Beach Jim Winder—Yorba Linda Steven Choi—Irvine Joy L.Neugebauer—Midway City Sanitary District Steve Anderson—La Habra Darryl Miller—Irvine Ranch Water District Mark Waldman—La Palma Ken Parker—Los Alamitos Chris Norby-Member ofthe Orange County Board of Supemison Executive Maoaeement of the District James D. Ruth,General Manager Robert P.Ghirelli,PhD.,Assistant General Manager Lorenw Tyner,Director of Finance and Administrative Services James Herberg,Director of Engineering Ed Torres,Director of Technical Services Nick Arhontes,Director of Operations&Maintenance Special Services Special Counsel and Disclosure Counsel Orrick,Herrington&Sutcliffe LLP Los Angeles,Califomia District General Counsel Bradley R. Hogin Woodruff,Spradlin& Smart,a Professional Corporation Orange,California Financial Advisor Public Resources Advisory Group Los Angeles, California Trustee Union Bank of California,N.A. Los Angeles,California OHS Wm260184418.4 41738-11 bMHMMH This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Certificates by any person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation Or sale. The information set forth herein has been provided by the District and other sources that are believed by the District to be reliable. No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations other than those contained in this Official Statement. If given or made, such other information or representations must no be relied upon as having been authorized by the District, the Corporation or the Initial Purchaser in connection with any reoffering. This Official Statement is not to be construed as a contract with the purchasers of the Certificates. Statements contained in this Official Statement which involve estimates,projections, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of facts. The information and expressions of opinion herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District or the Corporation since the date hereof This Official Statement is submitted with respect to the sale of the Certificates referred to herein and may not be reproduced or used,in whole or in part,for any other purpose,unless authorized in writing by the District. All summaries of the documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such provisions. Preparation of this Official Statement and its distribution have been duly authorized and approved by the District and the Corporation. In connection with the offering of the Certificates, the Initial Purchaser in connection with any reoffering may over-allot or effect transactions which stabilize or maintain the market price of the Certificates at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. The Initial Purchaser in connection with any reoffering may offer and sell the Certificates to certain dealers,institutional investors and others at prices lower than the public offering prices stated on the cover page hereof and such public offering prices may be changed from time to time by the Initial Purchaser. Certain statements included or incorporated by reference in this Official Statement constitute forward-looking statements. Such statements are generally identifiable by the terminology used such as "plan,""expect,""estimate,""budget"or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results,performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. CUSIP data included here is subject to Copyright 2007, American Bankers Association. CUSIP data included herein is provided by the Standard & Poo's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. and is provided for convenience of reference only. Neither the District, the Corporation or the Initial Purchaser shall be responsible for the selection or correctness of the CUSIP numbers set forth herein. OILS Wesr26a1a4418.4 4175&11 AnCHmA(H TABLE OF CONTENTS Page INTRODUCTION..................................................................................................................................... 1 General........................................................................................................................................... I TheDistrict.....................................................................................................................................2 Security and Sources of Payment for the Certificates....................................................................2 ContinuingDisclosure....................................................................................................................3 Miscellaneous.................................................................................................................................3 REFUNDINGPLAN........................................................................................................I.......................3 SOURCES AND USES OF PROCEEDS OF THE CERTIFICATES.....................................................5 THECERTIFICATES..............................................................................................................................5 General...........................................................................................................................................5 PrepaymentProvisions...................................................................................................................6 SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES..........................................8 InstallmentPayments.....................................................................................................................8 NetRevenues.................................................................................................................................9 Rate Stabilization Account........................................................................................................... 10 Allocation of Revenues................................................................................................................ 10 RateCovenant.............................................................................................................................. 11 Reserve Fund................................................................................................................................ 12 Limitations on Issuance of Additional Obligations...................................................................... 13 Insurance...................................................................................................................................... 15 Allocation of Installment Payments............................................................................................. 15 THEDISTRICT ..................................................................................................................................... 16 Background.................................................................................................................................. 16 Organization and Administration................................................................................................. 17 Services........................................................................................................................................ 18 ServiceArea................................................................................................................................. 19 Employees....................................................................................................................................20 RetirementPlan............................................................................................................................21 Post-Employment Benefits...........................................................................................................22 Risk Management.........................................................................................................................22 Existing Facilities.........................................................................................................................22 Permits, Licenses and Other Regulations.....................................................................................24 Capital Improvement Program.....................................................................................................25 Groundwater Replenishment System...........................................................................................28 Preferred Level of Treatment.......................................................................................................28 Biosolids Management.................................................................................................................29 Urban Runoff...............................................................................................................................30 Integrated Emergency Response Program...................................................................................30 DISTRICTREVENUES.........................................................................................................................31 Sewer Service Charges.................................................................................................................31 AdditionalRevenues....................................................................................................................34 Wastewater Treatment History.....................................................................................................36 Customers.....................................................................................................................................36 OHS W W 360184418.4 i 41758-11 NUCHINUCH TABLE OF CONTENTS (continued) - Par Assessed Valuation...........................„......................................_.................................................38 Tax Levies and Delinquencies...........................................„...„...................................................38 BudgetaryProcess........................._.......„............„..........................................................„..........39 Reserves.......................................................................................................................................40 Summary of Operating Data..........................................„............................................................41 ProjectedOperating Data.............................................................................................................42 Management's Discussion and Analysis of Operating Data........................................................43 Investment of District Funds........................................................................................................44 FINANCIAL OBLIGATIONS.....................„.„.....................................................„..............................45 ExistingIndebtedness............................„...............................................„....................................45 Variable Rate and Swap Obligations...........................................................................„............47 Anticipated Financings..........................................................................„............„...........„..........48 Direct and Overlapping Bonded Debt......................................................................................„..49 THECORPORATION............................................................................„..............................................51 LIMITATIONS ON TAXES AND REVENUES..................„..........................................„...................31 Article XIIIA of the California Constitution...............................................„.........„....................51 Legislation Implementing Article XIIIA.........................................................................„...........51 Article X1IIB of the California Constitution.......................................„..........................„...........52 PropositionIA.............................................................................................................................53 Proposition62...........................................................................................................„.................53 Article XIIIC and Article XIIID of the California Constitution..............................._..................54 Other lnitiati%%-Measures............................„.........................................„....................................56 LEGALMATTERS..............................................„.......................................................„...........„..........56 FINANCIAL ADVISOR.......................................................................................................„..„............56 ABSENCE OF LITIGATION...............................................................................................„...........„...56 FINANCIAL STATEMENTS.....„......................................„.................................................................57 TAXMATTERS..........................„.........................................................................................................57 VERIFICATION OF MATI IEMATICAL COMPUTATIONS.............................„..............................59 CONTINUING DISCLOSURE.............„.......„..„..................................................„..............................59 RATINGS .............................................„......................................................................................59 PURCHASE AND REOFFERING.........................................................................................................60 MISCELLANEOUS..........................................................................................„...................................60 APPENDIX A COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FOR FISCAL YEAR ENDED JUNE 30.2006......................................................................................................................... 1 APPENDIX B THE COUNTY OF ORANGE-ECONOMIC AND DEMOGRAPHIC INFORMATION...............................................................................................„.......... 1 APPENDIX C SUMMARY OF PRINCIPAL LEGAL DOCUMENTS................................................ I APPENDIX D BOOK-ENTRY ONLY SYSTEM................................................................................... 1 APPENDIX E FORM OF APPROVING OPINION OF SPECIAL COUNSEL................................... 1 APPENDIX F FORM OF CONTINUING DISCLOSURE AGREEMENT.............................„........... 1 APPENDIX G OFFICIAL NOTICE INVITING BIDS................................................................„.......... 1 OHS Wrst26111844184 ii 41758-11 MKI VMKH OFFICIAL STATEMENT ORANGE COUNTY SANITATION DISTRICT REFUNDING CERTIFICATES OF PARTICIPATION,SERIES 2007A INTRODUCTION This introduction contains only a brief summary of certain of the terms of the Certifcates being offered and a briefdescriluton of the Official Statement.All statements contained in this introduction are qualified in their entirety by reference to the entire Official Statement. References to, and summaries of, provisions of the Constitution and laws of the State of California (the "State') and any documents referred to herein do not purport to be complete and such references are qualified in their entirety by reference to the complete provisions. All capitalized terms used in this Official Statement and not otherwise defined herein have the meanings set forth in the Trust Agreement, the Installment Purchase Agreement and the Master Agreement (each, as hereinafter defined). See APPENDIX C— "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Definitions"herein. General This Official Statement, including the cover page and all appendices hereto, provides certain information concerning the sale and delivery of$ . aggregate principal amount of the Orange County Sanitation District Refimding Certificates of Participation, Series 2007A (the "Certificates") evidencing direct,fractional undivided interests in the Installment Payments(the"Installment Payments") and the interest thereon,to be made by the Orange County Sanitation District(the"District")pursuant to the Installment Purchase Agreement,dated as of_ 1,2007 (the"Installment Purchase Agreement"), to be entered into by and between the District and the Orange County Sanitation District Financing Corporation(the"Corporation"). Pursuant to the Master Agreement for District Obligations, dated as of August 1, 2000(the "Master Agreement"), by and between the District and the Corporation, the District has established and declared the conditions and terns upon which obligations such as the Installment Purchase Agreement, and the Installment Payments and the interest thereon,will be incurred and secured. Installment Payments under the Installment Purchase Agreement are payable solely from Net Revenues (as defined hereinafter) as provided in the Installment Purchase Agreement, consisting primarily of all income and revenue received by the District from the operation or ownership of the District's Wastewater System (the "Wastewater System") remaining after payment of Maintenance and Operation Costs, as further described in"SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES"herein. The Certificates are to be executed and delivered pursuant to a Trust Agreement, dated as of 1, 2007 (the "Trust Agreement"), by and among the District, the Corporation and Union Bank of California,NA.,as trustee(the"Trustee'7.Proceeds from the sale of the Certificates,together with other available moneys,will be used to(i)prepay all or a portion of the prior installment payments and related certificates of participation in order to refinance certain improvements to its Wastewater System (the "Project")(ii) fund a reserve fund for the Certificates, and(iii)pay the costs incurred in connection with the execution and delivery of the Certificates. See"REFUNDING PLAN"herein. The Certificates will be executed and delivered in the form of fully registered certificates, dated as of the date of initial delivery thereof and will mature on February 1 in each year as set forth on the cover page hereof. Interest evidenced by the Certificates will be payable semiannually on February 1 and August I of each year, commencing on August 1, 2007. See"THE CERTIFICATES" herein. The Certificates will be initially delivered only in book-entry form and will be registered in the name of Cede & Co., as nominee of The * Preliminary,subject to change. OHS Wese260184418.4 41758-11 AGMMH Depository Trust Company, New York, New York ("DTC"), which will act as securities depository for the Certificates. The Certificates will be delivered in denominations of$5,000 and any integral multiple thereof. So long as the Certificates are in the DTC book-entry system, the interest, principal, purchase price and prepayment premiums, if any, due with respect to the Certificates will be payable by the Trustee,or its agent,to DTC or its nominee. DTC,in turn,will make payments pursuant to its procedures as described under APPENDIX D—"BOOK—ENTRY SYSTEM"herein. The District The District is a public agency responsible for regional wastewater collection, treatment and disposal. The District is the sixth largest wastewater discharger in the United States. The District provides service to an area with a population of approximately 2.5 million people in the northern and central portion of the County of Orange (the "County"), in a service area of approximately 479 square miles, treating 235 million gallons per day ("mg787 of wastewater in Fiscal Year 2005.06. See "THE DISTRICT,""DISTRICT REVENUES"AND"FINANCIAL OBLIGATIONS"herein. Security and Soorces of Payment for the Certificates The Certificates evidence direct, fractional undivided interests in the Installment Payments, and the interest thereon, paid by the District pursuant to the Installment Purchase Agreement. The obligation of the District to pay the Installment Payments and the interest thereon and other payments required to be made by it under the Installment Purchase Agreement is a special obligation of the District payable,in the manner provided under the Installment Purchase Agreement, solely from Net Revenues, and other funds as provided in the Installment Purchase Agreement. Net Revenues generally consist of all income and revenue received by the District from the operation or ownership of the Wastewater System remaining after payment of Maintenance and Operation Costs,all as further provided in the Master Agreement. The Installment Purchase Agreement constitutes a Senior Obligation and, as such, is subject to the provisions of the Master Agreement and is afforded all of the advantages, benefits, interests and security afforded Senior Obligations pursuant to the Master Agreement. Currently,the District has Senior Obligations Outstanding evidenced by five series of certificates of participation and two related interest rate swap agreements, payable on a parity with the Installment Payments under the Installment Purchase Agreement. The two swap agreements were executed by the predecessor special districts in connection with the execution and delivery of certain Outstanding Senior Certificates. The payments under these swap agreements are payable on a parity with the Installment Payments under the Installment Purchase Agreement and other Senior Obligations, as provided in the Master Agreement. Sec"FINANCIAL OBLIGATIONS—Existing Indebtedness"herein and APPENDIX C—"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Master Agreement' attached hereto. The term "Existing Senior Obligations" as used in this Official Statement refers to the 1992 Agreement for Acquisition and Construction, the 1992 Swap,the 1993 Agreement for Acquisition and Construction,the 1993 Swap,the 2000 Installment Purchase Agreement,the 2003 Installment Purchase Agreement and the 2006 Installment Purchase Agreement, and the term "Senior Obligations" as used in this Official Statement refers to the Existing Senior Obligations and any additional Senior Obligations, such as the Installment Purchase Agreement which may be made payable on a parity basis to the Installment Payments as provided in the Master Agreement. Senior Obligations, together with any Subordinate Obligations payable on a subordinate basis to the Installment Payments executed and delivered as provided in the Master Agreement are referred to collectively as the"Obligations." Pursuant to the Master Agreement,the District will,to the extent permitted by law,fix,prescribe and collect fees and charges for the services and facilities of the Wastewater System which will be at least sufficient to yield during each Fiscal Year (a) Net Revenues equal to 125% of Debt Service on Senior Obligations for such Fiscal Year and (b) Net Operating Revenues equal to 100%of Debt Service on all OHS Wa1260194I18.4 41759-11 Affllft H 2 Obligations for such Fiscal Year. The District may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the fees and charges than in effect unless the Revenues and Net Revenues from such reduced fees and charges will at all times be sufficient to meet the requirements of the Master Agreement. See "SECURITY AND SOURCE OF PAYMENT FOR THE CERTIFICATES—Rate Covenant'herein. The obligation of the District to pay the Installment Payments and the interest thereon,and other payments required to be made by it under the Installment Purchase Agreement is a special obligation of the District payable, in the manner provided in the Installment Purchase Agreement, solely from Net Revenues and other funds provided for in the Installment Purchase Agreement,and does not constitute a debt of the District or of the State, or of any political subdivision thereof, in contravention of any constitutional or statutory debt limitation or restriction. Neither the faith and credit nor the taxing power of the District or the State or any political subdivision thereof, is pledged to the payment of the Installment Payments, or the interest thereon, or other payments required to be made under the Installment Purchase Agreement. The Installment Purchase Agreement constitutes a Senior Obligation and, as such, is subject to the provisions of the Master Agreement and is afforded all of the advantages, benefits, interests and security afforded Senior Obligations pursuant to the Master Agreement. See"SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES" herein. Continuing Disclosure The District has covenonted for the benefit of holders and beneficial owners of the Certificates(a) to provide certain financial information and operating data(the"Annual Report') relating to the District and the property in the District not later than eight (8) months after the end of the District's Fiscal Year (which currently would N March 1),commencing with the report for the 2006-07 Fiscal Year, and(b)to provide notices of the t><curmnce of certain enumerated events, if material. The specific nature of the information to be contained in the Annual Report or the notices of material events is set forth in the Continuing Disclosure Agreement. See "CONTINUING DISCLOSURE" and APPENDIX E— "FORM OF CONTINUING DISCLOSURE AGREEMENT." Miscellaneous The Certificates"ill he offered when,as and if executed and delivered,and received by the Initial Purchaser, subject to the approval as to their legality by Special Counsel and certain other conditions. It is anticipated that the Certificates in definitive form will be available for delivery through the facilities of DTC on or about . 2007. The descriptions herein of the Trust Agreement,the Master Agreement,the Installment Purchase Agreement and any other agreements relating to the Certificates are qualified in their entirety by reference to such documents. Copies of the documents are on file and available for inspection at the corporate trust office of the Trustee at Union Bank of California,N.A., ,Los Angeles,California 90071,Attention: Corporate Trust. REFUNDING PLAN Net proceeds from the sale of the Certificates,together with other available moneys,will be used to prepay all or a portion of the prior installment payments (the"Refunded Installment Payments")to be made by the District pursuant to the installment purchase agreement, dated as of July 1, 2003 (the"2003 Installment Purchase Agreement")which was executed in connection with the execution and delivery of the Orange County Sanitation District Certificates of Participation, Series 2003 (the"2003 Certificates") evidencing$280,000,000 original aggregate principal amount. OHS Wen76018441&4 41759-11 MKH&WH 3 Pursuant to the terns of the trust agreement, dated as of July 1, 2003 (the "Prior Trust Agreement"), by and among Union Bank of California,N.A., as trustee,the Corporation and the District pursuant to which such 2003 Certificates were executed and delivered, the refunding of the Refunded Certificates will be effected by depositing a portion of the proceeds of the Certificates,together with other available moneys,in an escrow fund(the"Escrow Fund")to be created and established under the Escrow Agreement, dated as of I, 2007, by and between the District and Union Bank of California, N.A., as escrow agent. Such proceeds and other monies deposited by the District in the Escrow Fund will be used to purchase Government Obligations,the principal of and interest on which when due,together with uninvested proceeds, will be sufficient to provide for the payment of the interest on the Refunded Installment Payments on each payment date through and including August 1, 2013 (the "Prepayment Date')and to provide for the prepayment of the Refunded Installment Payments on the Prepayment Date at a Prepayment Price(the"Prepayment Price")equal to the principal amount thereof,without premium. In accordance with the Prior Trust Agreement, the Refunded Installment Payments, and the interest thereon, will be applied to the payment of the 2003 Certificates evidencing interests therein (the "Refunded Certificates") through and including the Prepayment Date and to the prepayment of the remaining outstanding Refunded Certificates on the Prepayment Date at a redemption price equal to the Prepayment Price. See"VERIFICATION OF MATHEMATICAL COMPUTATIONS." The specific maturities of the 2003 Certificates that will be refunded and prepaid as a result of the execution and delivery of the Certificates(the"Refunded Certificates")will be determined by District on the basis of market conditions at or about the time that the District accepts bids for the Certificates by competitive sale. Such Refunded Certificates may be some or all of the maturities of the 2003 Certificates listed in the following table. Orange County Sanitation District" Certificates of Participation,Series 2003 Maturity Principal Interest (February 1) Amount Rate CUSIP No. 2021 $ 4,495,000 5.25% 68428PAA3 2022 15,100,000 5.00 69428PABI 2023 15,805,000 5.00 68428PAC9 2024 16,640,000 5.00 68428PAD7 2025 17,425,000 5.00 68428PAE5 2026 18,350,000 5.00 68428PAF2 2027 19,265,000 5.25 68428PAG0 2028 20,235,000 5.25 6842SPAHS 2030 44,505,000 5.25 68428PAJ4 2033 108,180,000 5.00 6842SPAKI The maturing principal of and the investment income to be derived from the Government Obligations in the Escrow Fund will held in trust solely for the Refunded Certificates and will not be available to pay the principal and interest evidenced by the Certificates or any obligations other than the Refunded Certificates. " Preliminary,subject to change. OHS WM:260184418.4 41758.11 NDMIAKH 4 SOURCES AND USES OF PROCEEDS OF THE CERTIFICATES The sources and uses of funds with respect to the delivery of the Certificates are shown below. Sources Certificate Proceeds Amounts released from Prior Trust Agreement $ Total Sources $ Uses Escrow Fund Reserve Fund Costs of Issuance to Total Uses $ Costs include.among other things,fees of rating agencies,initial fees of the Trustec and Special Counsel leas. THE CERTIFICATES General The Certificates will be prepared in the form of fully registered certificates in denominations of $5,000 and any integral multiple thereof The Certificates will be dated as of the date of initial delivery thereof and will mature on February I in each year as set forth on the cover page hereof. Interest evidenced by the Certificates will be payable semiannually on February I and August 1 of each year, commencing on August 1, 2007. See"THE CERTIFICATES" herein. The Certificates will be initially delivered only in book-entry form and will be registered in the name of Cede & Co„ as nominee of The Depository Trust Company, New York, New York ("DTC"), which will act as securities depository for the Certificates. Individual purchases of the Certificates will be made in book-entry form only. Purchasers of Certificates will not receive physical certificates representing their ownership interests in the Certificates purchased. The interest evidenced by the Certificates shall be payable on each Interest Payment Date to and including their respective Principal Payment Dates or prepayment prior thereto, and shall represent the sum of the interest on the Installment Payments coming due on the Interest Payment Dates in each year. The principal evidenced by the Certificates shall be payable on their respective Principal Payment Dates and Mandatory Sinking Account Payment Dates in each year and shall represent the Installment Payments coming due on the Principal Payment Dates and Mandatory Sinking Account Payment Dates in each year. Each Certificate shall evidence interest from the Interest Payment Date next preceding its date of execution to which interest has been paid in full, unless such date of execution shall be after a Record Date and on or prior to the following Interest Payment Date, in which case such Certificate shall evidence interest from such Interest Payment Date, or unless such date of execution shall be on or prior to 15, 2007, in which case such Certificate shall represent interest from its date of initial delivery. Notwithstanding, the foregoing, if, as shown by the records of the Trustee, interest evidenced by the Certificates shall be in default, each Certificate shall evidence interest from the last Interest Payment Date to which such interest has been paid in full or duly provided for. Interest evidenced by the Certificates Mall be computed on the basis of a 360-day year consisting of twelve 30-day months. See APPENDIX C —"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Trust Agreement.' OHS wes1:2601844111.4 41758-11 MKHMMH 5 Payments of principal and interest evidenced by the Certificates are payable directly to DTC by Union Bank of California,N.A., as trustee. Upon receipt of payments of such principal and interest,DTC will in rum distribute such payments to the beneficial owners of the Certificates. So long as the Certificates are in the DTC book-entry system, the interest, principal, purchase price and prepayment premiums, if any, due with respect to the Certificates will be payable by the Trustee,or its agent, to DTC or its nominee. DTC, in turn, will make payments pursuant to its procedures as described under APPENDIX D—"BOOK -ENTRY SYSTEM"herein. So long as the Certificates are in the DTC book- entry system,the interest,principal and prepayment premiums, if any,due with respect to the Certificates will be payable by the Trustee, or its agent, to DTC or its nominee. DTC, in turn, will make payments pursuant to its procedures as described under APPENDIX D—"BOOK-ENTRY SYSTEM"herein. Prepayment Provisions Optional Prepayment. The Certificates are subject to optional prepayment prior to their stated Principal Payment Dates, on any date on or after February 1, 2017, in whole or in part, in Authorized Denominations, from and to the extent of prepaid Installment Payments paid pursuant to the Installment Purchase Agreement or from any other source of available funds, any such prepayment to be at a price equal to the principal evidenced by the Certificates to be prepaid plus accrued interest evidenced thereby to the date fixed for prepayment. Mandatory Sinking Account Prepayment. The Certificates with a stated Principal Payment Date of February 1, 20_ are subject to prepayment prior to their stated Principal Payment Date, in part, from Mandatory Sinking Account Payments, on each February 1 specified below, at a prepayment price equal to the principal evidenced thereby, plus accrued interest evidenced thereby to the date fixed for prepayment, without premium. The principal evidenced by such Certificates to be so prepaid and the dates therefor will be as follows: Date (February 1) Mandatory Sinking Fund Amount f Stated Principal Payment Date. The amount of each such prepayment shall be reduced in the event and to the extent that Installment Payments payable on the corresponding Installment Payment Date are prepaid from any source of funds available to the District pursuant to the Installment Purchase Agreement, and applied to the prepayment of Certificates with a stated Principal Payment Date of February 1,20. The Certificates with a stated Principal Payment Date of February 1, 20_ are subject to prepayment prior to their stated Principal Payment Date, in part, from Mandatory Sinking Account Payments, on each February 1 specified below, at a prepayment price equal to the principal evidenced thereby,plus accrued interest evidenced thereby to the date fixed for prepayment, without premium. The principal evidenced by such Certificates to be so prepaid and the dates therefor will be as follows: OHS wra:zsotsaats.a 41758-11 MKHIMKx 6 Date (February 1) Mandatory Sinking Fund Amount t Stated Principal Payment Date. The amount of each such prepayment shall be reduced in the event and to the extent that Installment Payments payable on the corresponding Installment Payment Date are prepaid from any source of funds available to the District pursuant to the Installment Purchase Agreement, and applied to the prepayment of Certificates with a stated Principal Payment Date of February 1,20 . Selection of CerrlRcares for Prepayment Whenever less than all the Outstanding Certificates are to be prepaid on any one date pursuant to provisions of the Trust Agreement with respect to optional prepayment of Certificates,the Trustee shall select the Certificates to be prepaid among Certificates with different Principal Payment Dates as directed in a Written Request of the District. Whenever less than all the Outstanding Certificates with the same stated Principal Payment Date are to be prepaid on any one date in accordance with the Trust Agreement,the Trustee shall select the Certificates with such Principal Payment Date to be prepaid by lot in any manner that the Trustee deems fair and appropriate, which decision shall be final and binding upon the District and the Owners. The Trustee shall promptly notify the District in writing of the numbers of the Certificates so selected for prepayment on such date. For purposes of such selection,any Certificate may be prepaid in part in Authorized Denominations. Notice of Prepayment When prepayment of Certificates is authorized pursuant to the Trust Agreement, the Trustee shall give notice, at the expense of the District, of the prepayment of the Certificates. The notice of prepayment shall specify(a)the Certificates or designated portions thereof(in the case of prepayment of the Certificates in part but not in whole)which are to be prepaid,(b)the date of prepayment, (c)the place or places where the prepayment will be made, including the time and address of any paying agent, (d)the prepayment price,(e) the CUSIP numbers assigned to the Certificates to be prepaid, (f) the numbers of the Certificates to be prepaid in whole or in part and in the case of any Certificate to be prepaid in part only,the principal evidenced by such Certificate to be prepaid,and(g)the interest rate and stated Principal Payment Date of each Certificate to be prepaid in whole or in part. Such notice of prepayment shall further state that on the specified date there shall become due and payable upon each Certificate or portion thereof being prepaid the prepayment price and that from and after such date interest evidenced thereby shall cease to accrue and be payable. With respect to any notice of optional prepayment of Certificates, unless at the time such notice is given the Certificates to be prepaid shall be deemed to have been paid within the meaning of the Trust Agreement, such notice shall state that such prepayment is conditional upon receipt by the Trustee, on or prior to the date fixed for such prepayment, of moneys sufficient to pay for the prepayment price of the Certificates to be prepaid, and that if such moneys shall not have been so received said notice shall be of no force and effect and the District shall not be required to prepay such Certificates. In the event a notice of prepayment of Certificates contains such a condition and such moneys are not so received,the prepayment of Certificates as described in the conditional notice of prepayment shall not be made and the Trustee shall, within a reasonable time after the date on which such prepayment was to occur,give notice to the persons and in the manner in which the notice of prepayment was given,that such moneys were not so received and that there shall be no prepayment of Certificates pursuant to such notice of prepayment. The Trustee shall,at least 30 but not more than 60 days prior to any prepayment date,give notice of prepayment to the respective Owners of Certificates designated for prepayment by first-class mail, OHS Wea260184418.4 41758-11 M1R416dtH 7 postage prepaid, at their addresses appearing on the registration books maintained by the Trustee as of the close of business on the day before such notice of prepayment is given. The actual receipt by the Owner of any notice of such prepayment shall not be a condition precedent to prepayment, and neither failure to receive such notice nor any defect therein shall affect the validity of the proceedings for the prepayment of such Certificates or the cessation of interest evidenced thereby on the date fixed for prepayment. Effect ofPrepaymert If notice of prepayment has been duly given as aforesaid and moneys for the payment of the prepayment price of the Certificates to be prepaid are held by the Trustee,then on the prepayment date designated in such notice, the Certificates so called for prepayment shall become payable at the prepayment price specified in such notice; and from and after the date so designated, interest evidenced by the Certificates so called for prepayment shall cease to accrue, such Certificates shall cease to be entitled many benefit or security hereunder and the Owners of such Certificates shall have no rights in respect thereof except to receive payment of the prepayment price thereof. The Trustee shall, upon surrender for payment of any of the Certificates to be prepaid pay such Certificates at the prepayment price thereof,and such moneys shall be pledged to such payment. All Certificates prepaid pursuant to the provisions of the Trust Agreement shall be canceled by the Trustee and shall not be redelivered. SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES Installment Payments Pursuant to the Installment Purchase Agreement,the Project will be acquired by the District from the Corporation.The District has covenanted to,subject to any rights of prepayment under the Installment Purchase Agreement, pay to the Corporation, solely from Net Revenues and from no other sources, the Purchase Price in Installment Payments, with interest thereon, as provided in the Installment Purchase Agreement. Pursuant to the Master Agreement, the District has established and declared the conditions and terns upon which obligations such as the Installment Purchase Agreement, and the Installment Payments and the interest thereon payable under the Installment Purchase Agreement, will be incurred and secured The obligation of the District to make the Installment Payments, and payments of interest thereon, and other payments required to be made by it under the Installment Purchase Agreement, solely from Net Revenues, is absolute and unconditional, and until such time as the Installment Payments, payments of interest thereon, and such other payments shall have been paid in full (or provision for the payment thereof shall have been made pursuant to the Installment Purchase Agreement), the District has covenanted that it will not discontinue or suspend any Installment Payments when due,whether or not the Project or any par thereof is operating or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in pan, and such Installment Payments, payments of interest thereon, and other payments shall not be subject to reduction whether offset or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement or any cause whatsoever. The District's obligation to make Installment Payments from Net Revenues is on a parity with the District's obligation to make payments with respect to its Outstanding Senior Obligations. See " Net Revenues"below. Pursuant to the Trust Agreement,the Corporation has assigned to the Trustee for the benefit of the Owners of the Certificates substantially all of its rights,title and interest in the Installment Purchase Agreement, including its right to receive Installment Payments and the interest thereon. Currently,the District has Senior Obligations Outstanding evidenced by five series of certificates of participation and two related interest rate swap agreements, payable on a parity with the Installment Payments under the Installment Purchase Agreement The two swap agreements were executed by the oxswm:zeorarara.a 41758-11 rmcwmxtt 8 predecessor special districts in connection with the execution and delivery of certain Outstanding Senior Certificates. The payments under these swap agreements are payable on a parity with the Installment Payments under the Installment Purchase Agreement and other Senior Obligations, as provided in the Master Agreement. See"FINANCIAL OBLIGATIONS—Existing Indebtedness"herein and APPENDIX C—"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Master Agreement"attached hereto. The obligation of the District to pay the Installment Payments, and the interest thereon,and other payments required to be made by it under the Installment Purchase Agreement and Master Agreement, is a special obligation of the District payable, in the manner provided in the Installment Purchase Agreement, solely from Net Revenues and other funds provided for in the Installment Purchase Agreement,and does not constitute a debt of the District,the State or of any political subdivision thereof, in contravention of any constitutional or statutory debt limitation or restriction. Neither the faith and credit nor the taxing power of the District,the State or any political subdivision thereof, is pledged to the payment of the Installment Payments, or the interest thereon, or other payments required to be made under the Installment Purchase Agreement. The Installment Purchase Agreement constitutes a Senior Obligation and, as such, is subject to the provisions of the Master Agreement and is afforded all of the advantages, benefits, interests and security afforded Senior Obligations pursuant to the Master Agreement. See"SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES"herein. Net Revenues The District is obligated to make Installment Payments solely from Net Revenues as provided in the Master Agreement, which consist of Revenues remaining after payment of costs paid by the District for maintaining and operating the Wastewater System ("Maintenance and Operation Costs"). Revenues are defined in the Master Agreement to mean, for any period, all income and revenue received by the District during such period from the operation or ownership of the Wastewater System, determined in accordance with generull% accepted accounting principles, including all fees and charges received during such period for the senices of the Wastewater System, investment income received during such period (but only to the extent that such investment income is generally available to pay costs with respect to the Wastewater System. including Maintenance and Operation Costs), Net Proceeds of business interruption insurance received during such period,ad valorem taxes received during such period,payments under the Agreement Acquiring Ownership Interests, Assigning Rights and Establishing Obligations, entered into on February 13, 1986. and amendment No. I thereto dated December 10, 1986, by and between predecessor County Sanitation District No. 14 of Orange County and the Wine Ranch Water District(the "IRWD Agreement") muckmi during such period and all other money received during such period howsoever derived 61 the District from the operation or ownership of the Wastewater System or arising from the Wastewater System (including any standby or availability charges), but excluding (a) Capital Facilities Capacity Charges.(b)payments received under Financial Contracts,and(c)refundable deposits made to establish credit and advances or contributions in aid of construction (which, for purposes of the Master Agreement. shall not include payments under the IRWD Agreement);provided, however, that (i) Revenues shall be increased by the amounts, if any, transferred during such period from the Rate Stabilization Account to the Revenue Account and shall be decreased by the amounts, if any,transferred during such period from the Revenue Account to the Rate Stabilization Account,and (ii) Revenues shall include Capital Facilities Capacity Charges collected during such period to the extent that such Capital Facilities Capacity Charges could be properly expended on a Capital Facilities Capacity Charge Eligible Project for which the proceeds of Subject Obligations were used or are available to be used. See "DISTRICT REVENUES—Additional Revenues"herein. The District's obligation to make the Installment Payments from its Net Revenues is on a parity with the District's obligation to make payments with respect to its other outstanding obligations described as Senior Obligations and all Reimbursement Obligations with respect to Senior Obligations,as provided in the Master Agreement. The Installment Purchase Agreement constitutes a Senior Obligation and, as OHS WW26018/418.4 41758-1 1 A9CWMKH 9 such, is subject to the provisions of the Master Agreement and is afforded all of the advantages, benefits, interests and security afforded Senior Obligations pursuant to the Master Agreement. Pursuant to the Master Agreement, the District pledges all Net Revenues to the payment of the Senior Obligations and Reimbursement Obligations with respect to Senior Obligations,and the Net Revenues will not be used for any other purpose while any of the Senior Obligations or Reimbursement Obligations with respect to Senior Obligations remain unpaid; provided, however, that out of the Net Revenues there may be apportioned such sums for such purposes as are expressly permitted by the Master Agreement. This pledge constitutes a first lien on the Net Revenues for the payment of the Senior Obligations and Reimbursement Obligations with respect to Senior Obligations. The term Senior Obligations, generally means all revenue bonds or notes(including bond anticipation notes and commercial paper)of the District authorized,executed,issued and delivered under and pursuant to applicable law, the Installment Purchase Agreement and all other contracts(including financial contracts) or leases of the District authorized and executed by the District under and pursuant to applicable law, the installment, lease or other payments under which are,in accordance with the provisions of the Master Agreement,payable from Net Revenues on a parity with the payments under the Master Agreement. The District may at any time incur Subordinate Obligations payable on a subordinate basis to the Installment Payments executed and delivered as provided in the Master Agreement; provided however, that prior to incurring such Subordinate Obligations,the District will have determined that the incurrence thereof will not materially adversely affect the District's ability to comply with the requirements of the Master Agreement. The District may at any time incur Reimbursement Obligations with respect to Subordinate Obligations. For a description of the District's Outstanding Senior Obligations and Subordinate Obligations, see"FINANCIAL OBLIGATIONS—Existing Indebtedness"herein. There are currently no Subordinate Obligations or Reimbursement Obligations with respect to Subordinate Obligations outstanding. The District may, in connection with the incurrence of Subordinate Obligations, pledge Net Revenues to the payment of Subordinate Obligations and Reimbursement Obligations with respect to Subordinate Obligations; provided, however, that such pledge, and any lien created thereby, shall be junior and subordinate to the pledge of, and lien on,Net Revenues for the payment of Senior Obligations and Reimbursement Obligations with respect to Senior Obligations. Rate Stabilization Account In order to avoid fluctuations in its fees and charges of the Wastewater System,from time to time the District may deposit in the Rate Stabilization Account from Net Revenues such amounts as the District deems necessary or appropriate. From time to time, the District may also transfer moneys from the Rate Stabilization Account to the Revenue Account to be used by the District, first to pay all Maintenance and Operations Costs as and when the same shall be due and payable. In addition,any such amount transferred from the Rate Stabilization Account to the Revenue Account by the District is included as Revenues for any period, but such transferred amount is excluded from determining Operating Revenues for any period. Revenues will be decreased by the amounts, if any,transferred from the Revenue Account to the Rate Stabilization Account. There are presently no Ponds in the Rate Stabilization Account. Allocation of Revenues In order to carry out and effectuate the pledge of Net Revenues under the Master Agreement as described above, the District agrees and covenants that all Operating Revenues received by the District will be deposited when and as received in the Revenue Account. Additionally, amounts may, from time to time as the District deems necessary or appropriate,be transferred from the Rate Stabilization Account and deposited in the Revenue Account, as described above under "— Rate Stabilization Account." The OW WW26 01 8 4 41 8.4 4175&11 MIOVMxH 10 District will pay from the Revenue Account all Maintenance and Operations Costs (including amounts reasonably required to be set aside in contingency reserves for Maintenance and Operations Costs, the payment of which is not immediately required)as and when the same shall be due and payable. After having paid, or having made provisions for the payment of, Maintenance and Operations Costs, the District shall set aside and deposit or transfer, as the case may be, from the Revenue Account such amounts at such times as provided in the Master Agreement in the following order of priority: (1) Senior Obligation Payment Acoount; (2) Senior Obligation Reserve Funds; (3) Subordinate Obligation Payment Account; (4) Subordinate Obligation Reserve Funds;and (5) Rate Stabilization Account. Amounts required or permitted to be deposited or transferred as described in items 2, 3, 4 and 5 above, shall not be so deposited or transferred unless the District shall have determined that there will be sufficient Net Revenues available to make the required deposits or transfers on the dates on which such deposits or transfers are required to be made as described above. So long as the District has determined that Net Revenues will be sufficient to make all of the deposits or transfers required to be made pursuant to items 1, 2, 3, 4 and 5 above, on the dates on which such deposits or transfers are required to be made, Net Revenues on deposit in the Revenue Account may from time to time be used for any purpose for which the District funds may be legally applied For additional information, see APPENDIX C — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Master Agreement." Rate Covenant Pursuant to the Master Agreement,the District will,to the extent permitted by law, fix,prescribe and collect fees and charges for the services of the Wastewater System which will be at least sufficient to yield during each Fiscal Year(a)Net Revenues equal to 125%of Debt Service on Senior Obligations for such Fiscal Year and (b)Net Operating Revenues equal to 100% of Debt Service on all Obligations for such Fiscal Year.The District may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but will not reduce the fees and charges than in effect unless the Revenues and Net Revenues from such reduced fees and charges will at all times be sufficient to meet the requirements of the Master Agreement. In addition, the District has covenanted in the Master Agreement to prepare and adopt an annual budget for the Wastewater System for each Fiscal Year. Such budget will set forth in reasonable detail the Revenues anticipated to be derived in such Fiscal Year and the expenditures anticipated to be paid or provided for therefrom in such Fiscal Year, including,without limitation,the amounts required to pay or provide for the payment of the Obligations during such Fiscal Year, the amounts required to pay or provide for the payment of Maintenance and Operations Costs during such Fiscal Year and the amounts required to pay or provide for the payment of all other claims or obligations required to be paid from Revenues in such Fiscal Year,and will show that Revenues and Net Revenues will be at least sufficient to satisfy the requirements of the Master Agreement. On or before September 1 of each Fiscal Year, the District will file with the Trustee a copy of the adopted budget for such Fiscal Year. See APPENDIX C— "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Master Agreement"for additional information. OHS WW:260184418.4 41758-11 a4RH/MRH I I Reserve Fund The Trust Agreement provides for the funding of the Reserve Fund in an amount equal to the "Reserve Requirement,"which is defined as an amount,as of any date of calculation,equal to the least of (a) * (b) 10% of the original aggregate amount of principal evidenced by the Certificates, (c) the maximum amount of remaining Installment Payments,and the interest thereon,coming due in any one Certificate Year,and(d) 125%of the average amount of remaining Installment Payments,and the interest thereon,coming due in each Certificate Year. Amounts in the Reserve Fund may be used to pay principal and interest evidenced by the Certificates to the extent that amounts in the Principal Account and Interest Account are insufficient therefor. The Trustee shall establish and maintain the Reserve Fund until all required Installment Payments, and the interest thereon, are paid in full pursuant to the Installment Purchase Agreement and until the first date upon which no Certificates are Outstanding. The Reserve Fund will be funded with a portion of the net proceeds of the Certificate in the amount of$ which amount is sufficient to satisfy the Reserve Requirement. See "SOURCES AND USES OF PROCEEDS OF THE CERTIFICATES." The District may substitute a Reserve Facility for all or a part of the moneys on deposit in the Reserve Fund by depositing such Reserve Facility with the Trustee so long as, at the time of such substitution, the amount on deposit in the Reserve Fund together with the amount available under such Reserve Facility and any previously substituted Reserve Facilities, shall be at least equal to the Reserve Requirement. Moneys for which a Reserve Facility has been substituted as provided in the Trust Agreement shall be transferred, at the election of the District,to the Installment Payment Fund or upon receipt of an Opinion of Counsel to the effect that such transfer, in and of itself,will not adversely affect the exclusion of interest evidenced by the Certificates from gross income for federal income tax purposes, to a special account to be held by the Trustee and applied to the payment of capital costs of the District,as directed in a Written Request of the District. Any amounts paid pursuant to any Reserve Facility shall be deposited in the Reserve Fund. If a Reserve Facility is credited to the Reserve Fund to satisfy a portion of the Reserve Requirement,the Trustee shall make a claim for payment under such Reserve Facility, in accordance with the provisions thereof, in an amount which, together with other available moneys in the Reserve Fund will be sufficient to make said deposit in the Interest Account or Principal Account. The moneys in the Reserve Fund, and any Reserve Facility, shall be held in trust by the Trustee for the benefit of the Owners and shall be used and disbursed only for the purposes and uses authorized in the Trust Agreement. Moneys, if any, on deposit in the Reserve Fund shall be withdrawn and applied by the Trustee for the final payment of principal and interest evidenced by the Certificates. Amounts on deposit in the Reserve Fund which were not derived from payments under any Reserve Facility credited to the Reserve Fund to satisfy a portion of the Reserve Requirement shall be used and withdrawn by the Trustee prior to using and withdrawing any amounts derived from payments under any such Reserve Facility. In order to accomplish such use and withdrawal of such amounts not derived from payments under any such Reserve Facility,the Trustee shall, as and to the extent necessary, liquidate any investments purchased with such amounts. If and to the extent that more than one Reserve Facility is credited to the Reserve Fund to satisfy a portion of the Reserve Requirement, drawings thereunder,and repayment of expenses with respect thereto, shall be made on a pro-rate basis(calculated by reference to the policy limits available thereunder). The Trustee shall, from amounts received from the District pursuant to the Installment Purchase Agreement,deposit in the Reserve Fund an amount of money which,together with the amount already on • Preliminary,subject to change. OHS wm:xsotse<u.a ansa-u nacxmaOr 12 deposit therein and the amounts available under all Reserve Facilities, will be equal to the Reserve Requirement. No deposit need be made in the Reserve Fund so long as there shall be on deposit therein a sum equal to the amount which, together with the amounts available under all Reserve Facilities, is at least the Reserve Requirement. The Trustee shall promptly notify the District in writing if the amount on deposit is less than the Reserve Requirement. If, as a result of the scheduled payment of principal or interest evidenced by the Certificates, the Reserve Requirement is reduced, the Trustee shall transfer an amount equal to the amount of such reduction to the Installment Payment Fund. See APPENDIX C—"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Trust Agreement." Limitations on Issuance of Additional Obligations Senior Obligations. The District may at any time incur Senior Obligations in addition to the Existing Senior Obligations payable from Net Revenues as provided in the Master Agreement on a parity with all other Senior Obligations theretofore incurred but only subject to the following conditions under the Master Agreement: (1) Upon the incurrence of such Senior Obligations, no Event of Default will be continuing under the Master Agreement;and (2) Subject to the provisions of the Master Agreement, the District will have received either one of the following: 0) A Written Certificate of the District certifying that,for a 12 consecutive calendar month period during the 24 consecutive calendar month period ending in the calendar month prior to the incurrence of such Senior Obligations (which 12 consecutive calendar month period will be specified in such certificate or certificates): (A) Net Revenues,as shown by the books of the District,will have amounted to at least 125% of Maximum Annual Debt Service on all Senior Obligations to be outstanding immediately after the incurrence of such Senior Obligations,and (B) Net Operating Revenues,as shown by the books of the District,will have amounted to at least 100% of Maximum Annual Debt Service on all Obligations to be outstanding immediately after the incurrence of such Senior Obligations. For purposes of demonstrating compliance with the foregoing,Net Revenues and Net Operating Revenues may be adjusted for(x)any changes in fees and charges for the services of the Wastewater System which have been adopted and are in effect on the date such Senior Obligations are incurred, but which, during all or any part of such 12 consecutive calendar month period, were not in effect, (y) customers added to the Wastewater System subsequent to such 12 consecutive calendar month period but prior to the date such Senior Obligations are incurred, and (z) the estimated change in available Net Revenues and Net Operating Revenues which will result from the connection of existing residences or businesses to the Wastewater System within one year following completion of any project to be funded or any system to be acquired from the proceeds of such Senior Obligations;or OHS Wm260184418.4 4175"1 nacHrt ixH 13 (ii) A certificate or certificates from one or more Consultants which, when taken together, project that, for each of the two Fiscal Years next succeeding the incurrence of such Senior Obligations: (A) Net Revenues will amount to at least 125% of Maximum Annual Debt Service on all Senior Obligations to be outstanding immediately after the incurrence of such Senior Obligations,and (B) Net Operating Revenues will amount to at least 100% of Maximum Annual Debt Service on all Obligations to be outstanding immediately after the incurrence of such Senior Obligations. For purposes of demonstrating compliance with the foregoing,Net Revenues and Net Operating Revenues may be adjusted for(x)any changes in fees and charges for the services of the Wastewater System which have been adopted and are in effect on the date such Senior Obligations are incurred or will go into effect prior to the end of such two Fiscal Year period,(y)customers expected to be added to the Wastewater System prior to the and of such two Fiscal Year period, and (z) the estimated change in available Net Revenues and Net Operating Revenues which will result from the connection of existing residences or businesses to the Wastewater System within one year following completion of any project to be funded or any system to be acquired from the proceeds of such Senior Obligations. For purposes of preparing the certificate or certificates described above,the Consultant may rely upon financial statements prepared by the District that have not been subject to audit by an independent certified public accountant if audited financial statements for the period are not available. See, also "FINANCIAL OBLIGATIONS — Existing Indebtedness' herein. The provisions described above in paragraph(2)need not be complied with if the Senior Obligations being incurred are Short-Tenn Obligations excluded from the calculation of Assumed Debt Service pursuant to clause(H)of the definition thereof. See APPENDIX C — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS — Definitions"herein. The determination of Net Revenues for use in the calculation described above is more fully described in APPENDIX C — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS — Master Agreement—Senior Obligations"attached hereto. The provisions described in paragraph(2)above need not be complied with for such portion of such Senior Obligations incurred for the purpose of providing funds to refund or refinance such Obligations if(i)a portion(which may be all)of the Senior Obligations are incurred for the purpose of providing funds to refund or refinance any Obligations, (ii) upon such refunding or refinancing, debt service on such refunded or refinanced Obligations, or debt service on bonds, notes or other obligations of an entity other than the District,the debt service on which is payable from Obligation Payments for such Obligations(the"Related Bonds"), will no longer be included in the calculation of Assumed Debt Service either because such Obligations, or the Related Bonds of such Obligations,will have been paid in full or because such debt service is disregarded pursuant to clause(L) of the definition of Assumed Debt Service, and (iii) Assumed Debt Service in each Fiscal Year for the portion of such Senior Obligations incurred for the purpose of providing funds to refund or refinance such Obligations is less than or equal to 105% of Assumed Debt Service in such Fiscal Year for such Obligations being refunded or refinanced(assuming for such purposes that debt service on such refunded or refinanced Obligations, or debt service on the Related Bonds of such Obligations, is not disregarded pursuant to clause (L) of the definition of Assumed Debt Service). See APPENDIX C — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS — Master Agreement" attached hereto for additional information. OHS WM260164418.4 41758-I1 eacrumxH 14 The District may at any time incur Reimbursement Obligations with respect to Senior Obligations. Subordinate Obligations. The District may at any time incur Subordinate Obligations upon satisfaction of the conditions provided in the Master Agreement. See APPENDIX C—"SUMMARY OF PRINCIPAL LEGAL DOCUMENTS—Master Agreement"herein for a description of such conditions. Insurance The District will procure and maintain or cause to be procured and maintained casualty insurance on the Wastewater System with responsible insurers,or provide self insurance(which may be provided in the form of risk-sharing pools), in such amounts and against such risks (including accident to or destruction of the Wastewater System) as are usually covered in connection with facilities similar to the Wastewater System. The District will procure and maintain such other insurance which it will deem advisable or necessary to protect its interests and the interests of the Corporation. See"THE DISTRICT— Risk Management" and APPENDIX C — "SUMMARY OF PRINCIPAL LEGAL DOCUMENTS — Master Agreement"herein. Allocation of Installment Payments Table 1 below sets forth the Installment Payments, together with the estimated interest thereon, assuming the only prepayments made are the mandatory prepayments described under "TIE CERTIFICATES— Prepayment Provisions" herein. Also set forth are the payments due on Outstanding Senior Obligations. OHS WW2601 8 4 41 8.4 417384 1 MKRIMKH 15 Table 1 Estimated Installment Payments of the District Fiscal year Outstanding Senior Eudiag Installment Pavments Obligations Payments Jaae 30 Principal Interest Principal Interest(l) Total 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 (1) Assume_%for a0 un-hedged variable rue obligations and actual swap rates for swapped variable rate obligations. See 'FINANCIAL OBLIGATIONS - Existing Indebtedness' and APPENDIX A - "COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FOR FISCAL YEAR ENDED TUNE 30. 20W herein. THE DISTRICT Background The (range County, Sanitation District is a public agency responsible for regional wastewater collection, treatment and disposal. The District is the sixth largest wastewater discharger in the United States. The District provides service to an area with a population of approximately 2.5 million people in OHS West260184418.4 41758-11 Mlavnaa7 16 the northern and central portion of the County by treating 235 mg/d of wastewater in Fiscal Year 2005-06. The District serves approximately 81% of the County population in approximately 479 square miles, or 59%of the County. The service area which comprises the District was originally formed in 1954 pursuant to the County Sanitation District Act, as amended, Section 4700 at seq. of the Health and Safety Code of the State.The District's service area originally consisted of seven independent special districts in the County which were each responsible for matters relating to their individual districts. These special districts were jointly responsible for the treatment and disposal facilities which they each used. The seven independent districts were successors to the Joint Outfall Sewer Organization, which was formed in 1923 among the Cities of Anaheim, Santa Ana, Fullerton, and Orange, and the sanitary districts of Placentia, Buena Park, La Habra, and Garden Grove. The Joint Outfall Sewer Organization constructed a treatment plant and outfall in the early 1920's to serve its members. It was reorganized in 1947 and 1948 into seven county sanitation districts - Districts Nos. 1, 2, 3, 5, 6, 7 and 11. These prior districts were formed based on engineers' analyses of the gravity Bows in the service area. District No. 13 was formed in 1985 and District No. 14 was added in 1986. These districts were co-participants in a Joint Agreement which provided for the joint construction,ownership,and operation of the prior districts'joint facilities. In April 1998, at the request of the District's Board of Directors (the "Board'), the Board of Supervisors of Orange County (the "County Board") passed Resolution No. 98-140 approving the consolidation of the than existing nine special districts into a new, single sanitation district, to be known m the Orange County Sanitation District. This action was designed to simplify govemance structures, reduce the size of the Board, ease administrative processes, streamline decision-making and consolidate accounting and auditing processes.The consolidation was effective on July I, 1998. Pursuant to the Resolution and Government Code Section 57500, the prior districts transferred and assigned all of their powers, rights, duties, obligations, functions and properties to the District, and the District assumed all obligations of the prior districts which were several and not joint including, without limitation, their obligations to repay the then outstanding certificates of participation. See "FINANCIAL OBLIGATIONS—Existing Indebtedness"herein. The boundaries of the nine predecessor special districts were initially used by the District to delineate separate revenue areas (the "Revenue Areas") for budgeting and accounting purposes and in order to facilitate the imposition of fees and charges imposed by the District. See"DISTRICT REVENUES—Sewer Service Charges"herein. The District is managed by an administrative organization composed of a Board of Directors appointed by twenty-five member cities and agencies which are serviced by the District. The District is responsible for construction and maintenance of a major portion of the wastewater collection, treatment and disposal facilities within its boundaries. Revenue Area No. 7 is responsible for approximately 152 miles of local sewers in its service area, whereas local sanitary districts, water districts and cities are responsible for local sewers in the remainder of the District's service area. Organization and Administration The District is independent of and overlaps other formal political jurisdictions. There are many governmental entities, including the County,that operate within the District's jurisdiction. These entities are exclusively responsible for the administration of their own fiscal affairs,and the District is not entitled to operating surpluses of,or responsible for operating deficits of,any of the other entities. The twenty-five member Board of Directors is comprised of representatives from twenty-one cities,unincorporated areas of the County and three special districts,including mayors of cities,members of city councils, directors of independent special districts and one member from the County Board. OHS wnr:26orsaas4 41759-11 ntxt44KH 17 Several board committees, made up of members of the Board of Directors, consider topics for action by the Board and make recommendations to the Board. The Chair and the Vice Chair of the Board are elected every year by a majority of the Board,and serve at the pleasure of the majority of the Board. The District has a general manager, general counsel, administrative and operating staff, with offices located at Reclamation Plant No. 1 in Fountain Valley. The District currently employs an administrative and operating staff of over 600 under the direction of the General Manager,James D.Ruth. James D. Ruth,is the District's General Manager,and has served in that capacity since December 2005. Prior to that time, from January 2003 to October 2004, Mr. Ruth served as Chief Executive Officer for the County of Orange. Mr. Ruth had previously provided 22 years of service to the city of Anaheim as parks and recreation director,deputy city manager,assistant city manager and chief executive officer,a post he held for I 1 years. Robert P. Ghirelli, Ph.D., is the District's Assistant General Manager, and has served in that capacity since July 2006. Mr.Gbirelli previously served as Director of Technical Services for the District since his joining the District in 1998. Prior to joining the District,Mr.Ghirelli served for just over a year as managing principal of the Los Angeles office of a national environmental consulting firm, served 20 years in supervisory positions with the State and Regional Water Boards,with 13 years Executive Officer of the California Regional Water Quality Control Board Los AngelesNentum Region. Lorenzo Tyner, is the District's Director of Finance and Administrative Services. In September 2005,Mr.Tyner joined the District with nearly 15 years of public finance and budgeting experience,most recently serving as the Los Angeles Unified School District Budget Director and Deputy Chief Financial Officer. Mr. Tyner previously worked in large government organizations including the City of Los Angeles and the Los Angeles County Metropolitan Transportation Authority and private sector companies IBM Global Services and Northrop. James Herberg, P.E., is the District's Director of Engineering, and has served in that capacity since November 2006. Prior to becoming Director of Engineering, he was the District's Director of Operations and Maintenance. Mr. Herberg has over twenty years of experience in water and wastewater including project management, construction management, design, strategic planning, and operations & maintenance. Ed Torres,has served as Director of Technical Services for the District. Mr. Torres has twenty- four years of public and private sector experience in protecting public health and the environment. Prior to joining the District in 1991, Mr. Torres served in a professional capacity for the California State University System and TRW Electronics and Defense Sector. Nick Arhontes, P.E., serves as the Director of Operations and Maintenance and has served the District since 1988. Mr.Arhontes has over 30 years of experience managing various engineered systems in the private and public sectors regionally,nationally,and internationally. Services The District owns and operates regional wastewater collection, treatment, and disposal facilities for the metropolitan area in the northern and central portion of the County. The District receives wastewater from the collection systems of the cities, sanitary, districts and unincorporated areas of the County located within the District. See"THE DISTRICT—Service Arens"herein. OHS W W:260194418F 4175941 hiKHIMKH is Generally, local agency systems collect wastewater from residential and industrial customers and convey the wastewater to District trunk sewer pipelines for conveyance to the District's wastewater treatment plants. The District's staff is responsible for operating and maintaining the District's infrastructure, although some operations are provided by external contractors. Currently, the District has established supply contracts for all chemicals necessary to the operation and maintenance of the facilities of the District. The District has sufficient standby systems in the event of equipment failures or system outages. Service Area The map on the inside cover page of this Official Statement shows the District's boundaries and selected cities located within the District. District boundaries were originally established in 1947 and 1948 based on drainage basins. As the existing cities have grown and new areas have incorporated city limits have come to overlap District boundaries. The District currently serves an approximately 471 square-mile area including 23 of the County's 33 cities and unincorporated areas of the County. The District serves a population of approximately 2.5 million residents and owns sanitary sewerage facilities with a replacement value of approximately$5.56 billion. Table 2 below sets forth the estimated populations of cities and unincorporated areas served by the District as of Januan 1.2006. OHS Wae260184418.4 41758m11 nixtvnucH 19 Table 2 Estimated Populations of Cities and Unincorporated Areas Served by the Orange County Sanitation District As of January 1,2006 City Population Anaheim 342,410 Brea 39,560 Buena Park 81,350 Costa Mean 113,130 Cypress 48,850 Fountain Valley 57,410 Fullerton 136,430 Garden Grove 171,770 Huntington Beach 201,000 Irvine 193,790 La Habra 61,790 La Palma 16,080 Los Alamitos 12,000 Newport Beach 83,360 Orange 137,800 Placentia 51,240 Santa Ana 351,320 Seal Beach 25,300 Stanton 38,760 Tustin 71,770 Villa Park 6,220 Westminster 92,410 Yorba Linda 66.790 Cities Subtotal 240,540 Unincorporated Areas 81,000 Total 2,481,540 Source: Swear C:alifomia Deparhnentof Finance.Demographic Research Unit and Orange County Sanitation District. Employees As of June 30, 2006, the District had 644 full-time equivalent ("FTE") staff positions and 644 FTE's budgeted for Fiscal Year 2006-07. Certain employees in the District are represented by recognized employee organizations, which include the following: the Orange County Employee Association ("OCEA"), the International Union of Operating Engineers - Local 501 ("Local 501") and the Supervisory Professional Management Team ("SPMT'). As of March 1, 2007, the District had 603 represented and non-represented employees. Total represented employees as of Match 1, 2007 were as follows: 97 positions were represented by the OCFA, 194 were represented by Local 501 and 250 were represented by SPMT. Agreements with each of these bargaining units are effective through June 30, 2007. The District is currently in negotiations with its bargaining units for extensions of these agreements. The OCEA has represented various bargaining units since 1979. Local 501 has represented the operations and maintenance bargaining wit since October 1985. SPMT has represented the professional and supervisory bargaining wit since 1991. The District has historically enjoyed a good working relationship with its bargaining wits and has experienced no work stoppages by represented personnel in the past. OHS We 260194419./ 41758-11 NWJIIMKH 20 For a description of the Orange County Employee's Retirement System, in which the District participates, and the District's deferred compensation plan, see "Retirement Plan" below and Note 7 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended June 30, 2006, set forth in Appendix A. The District has no significant or unusual liabilities and costs associated with other employee benefits, such as vacation, sick leave and other post-employment benefit liabilities. Retirement Plan The District participates in the Orange County Employee's Retirement System(OCERS),a cost- sharing multiple-employer, defined benefit pension plan which is governed and administered by a nine member Board of Retirement OCERS was established in 1945 under the provisions of the County Employees Retirement Law of 1937, and provides members with retirement, death, disability, and cost- of-living benefits. All District full-time employees participate in OCERS. Employees who retire at or after age 50 with ten or more years of service are entitled to an annual retirement allowance. The amount of the retirement allowance is based upon the member's age at retirement, the member's"final compensation" as defined in Section 31462 of the Retirement Law of 1937,the total years of service under OCERS,and the employee's classification as a Tier I or Tier It member. As of July 1, 2006,the formula to calculate retirement benefits was enhanced to 2.5%at age 55,or employees retiring at age 55 or older receive 2.5% of their average salary for every year of service. Average salary is the highest consecutive 12 months of compensation for Tier I employees and the highest consecutive 36 months of compensation divided by three for Tier 11 employees. Benefits fully vest on reaching five years of service. OCERS also provides death and disability benefits. As a condition of participation under the provisions of the County Employees Retirement Law of 1937, members are required to contribute a percentage of their annual compensation to OCERS. The District is required to make periodic contributions to OCERS in amounts that am estimated to remain a constant percentage of covered employees' compensation such that, when combined with covered employees'contributions,will fully provide for all covered employees' benefits by the time they retire. A current comparison of OCERS costs for Fiscal Years 2001-02 through 2005-06 and projected costs through Fiscal Year 2007-08 is shown below. Table 3 Orange County Sanitation District Comparison of OCERS Costs for Fiscal Years 2001-02 through 2007-081° Fiscal Year Rate(2) Cost 2001-02 2.36a/o $ 765,459 2002-03 5-50 1,943,056 2003-04 9.15 3,668,650 2004-05 1237 5,524,673 2005-06 1521 7,416,556 2006-07 20.15 9,9039830(3) 2007-08 20.87(3) 11,724,637(3) (1) Am mu,represent euipbyer mmributions made by the District and employee mnh ibutiom. (2) Requimdmntribwimasape tofmveredpomil. IncludesamorfvatimofUnfwhdedAmrued Actuarial Liability. (3) Projected. OHS Weu260186 18.4 41758-11 MKIVMKH 21 For Fiscal Years 2001-02 through 2005.06, the required contribution equaled the contribution actually made. As noted, the required contribution set forth above includes amortisation of Unfunded Accrued Actuarial Liability ("UAAL"). For the fiscal year ended June 30, 2006, total payroll costs of employees covered by OCERS was$48,761,087. As of the December 31, 2005 valuation, OCERS has an aggregate UAAL ratio of 71.53%,for a total UAAL of$2.30 billion. For more information regarding OCERS and the District's retirement plan as of June 30, 2005, see Note 7 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended June 30,2006 set forth in Appendix A. The Comprehensive Annual Financial Reports of the Orange County Employees Retirement System are available on the OCERS website at http://www.o"m.org. The information on such website is not incorporated herein by such reference or otherwise. Post-Employment Benefits On June 21,2004.the Governmental Accounting Standards Board("GASB")approved Statement No. 45 (GASB 45). accounting standards for other(than pensions) postemployment benefits ("OPEB"). GASB 45 effective dates are phased in, similar to GASB's Statement No. 34 which was implemented in recent years. The first effective Fiscal Year for the District is Fiscal Year 2007-08. Preliminary indications are that the District's potential OPEB liability will not have a material impact on the District's operational results. Risk Management As of the date hereof. the District has in force basic all risk property and casualty insurance, including theft, fire, hoed. terrorism and boiler and machinery losses to the Wastewater System. The District is self-insured for portions of workers' compensation,property damage and general liability. The self-insurance portion of workers' compensation is $500,000 par person per occurrence with outside excess insurance coverage to$50 million. The self-insured portion for property damage covering fire and other disasters is$25.000 per occurrence with outside excess insurance coverage to $1 billion. The self. insured portion for property damage covering flood is $100,000 per occurrence with outside excess insurance coverage to S300 million. The District is self-insured for all property damage from the perils of earthquakes. See -DISTRICT REVENUES - Reserves." The District also maintains outside comprehensive boiler and machinery insurance, including business interruption insurance, with a $100 million per occurrence combined limit with deductibles ranging from $25,000 to $350,000. The District is substantially self-insured for general liability coverage with a$250,000 self-insured deductible,but has excess general liability covcmge to$25 million per occurrence. During the post three fiscal years there have been no settlements in excess of covered amounts. Claims against the District are processed by outside insurance administrators. The District believes that there are no unrecorded claims as of June 30, 2006 that would materially affect the financial position of The District. For more information regarding the District's insurance coverage as of June 30,2006, see Note 1 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended June 30,2006 set forth in Appendix A. Existing Facilities The District's Wastewater System presently consists of two wastewater treatment plants, an influent metering and diversion structure, 16 pump stations,various interplant pipelines and connections, OHS Wra2601914114 41759-11 xoatnncx 22 and the ocean outfall facilities. The District's Wastewater System includes approximately 584 miles of sewers within 12 trunk sewer systems, 152 miles of local sewers located within Revenue Area No. 7,two treatment plants, two discharge outfalls and two emergency weir outlets. The existing treatment plants have a rated primary treatment capacity of 366 million gallons per day, including standby capacity. Treatment Plant No. 1 ("Plant No. 1")is located in the City of Fountain Valley,about four miles from the coast, adjacent to the Santa Ana River. Secondary treatment capabilities are provided by a trickling filter plant and a conventional air activated sludge plant. Up to 15 million gallons per day ("mg/d") of secondary treated effluent is conveyed to an Orange County Water District (the "OCWD") plant for tertiary treatment prior to ground water recharge. Treatment Plant No. 2("Plant No. 2")is located in the City of Huntington Beach, 1,500 feet from the ocean,at the mouth of the Santa Ana River. Secondary treatment capabilities are provided by a pure oxygen activated sludge plant. The District employs several phases in the treatment of wastewater. The first phase,preliminary treatment,removes debris such as eggshells,sand and biodegradable items. See,also"Preferred Level of Treatment" and "Biosolids Management" below. In the next phase, primary treatment, wastewater is pumped to large settling basins. The liquids are separated from the remaining solids which settle or float as the wastewater passes through large settling basins called clarifiers. The settled solids are sent to solids treatment facilities. Approximately half of the primary treated wastewater flows into the ocean outfall pumping station where it is blended with secondary treated wastewater before being discharged into the ocean. The other half is sent to secondary treatment for further processing. During secondary treatment, the wastewater is placed in aeration basins to which naturally occurring bacteria are added to remove most of the remaining dissolved and suspended microscopic organic solids. The treated wastewater from both plants is mixed together at Plant No. 2, where it is then pumped through the ocean outfall pipe that extends five miles offshore. Table 4 below sets forth the treatment plants' approximate current and future treatment capacities. Table 4 Wastewater System Treatment Capacities (MG/D) 2005-06 Existing Primary Total Planned Actual Treatment Existing Secondary Secondary Flows Capacity Treatment Capacity capacity", Plant No. 1 87 198 110 170 Plant No.2 148 168 90 150 Aggregate Treatment Plant Facilities 235 366 200 320 (1) The District's "Planned Total Capacity" is based on the Strategic Plan for planned capacity by 2020, which estimated the District's requirements to meet fume expected primary and secondary capacity demands. The District has the capability to divert a portion of the influent flow from Plant No. 1 to Plant No.2 through interplant connections. A portion of the flow destined for Plant No.2 can also be diverted to Plant No. I. The treated wastewater from Plant No. 1 flows by gravity to the outfall system through interconnecting lines. The combined Plant No. I and Plant No.2 effluent is then pumped through a 120- inch diameter oceatt outfall which is approximately five miles long. The last mile of the outfall pipe is a oxs wa2601s441s4 4175e-11 MVIAM 23 diffuser that dilutes the wastewater with seawater in a ratio of 148 parts seawater to one part treated wastewater at an average depth of 185 feet. The 120-inch outfall has a capacity of 480 million gallons per day at high tide. A smaller 78-inch diameter outfall that terminates at a shallower depth is still maintained, although it is reserved for use in emergencies. This smaller outfall is estimated to have a capacity of approximately 230 million gallons a day. There is an interplant gas pipeline between Plant No. l and Plant No.2 which allows digester gas(which is used m fuel for many of the facilities' engines) from one plant to be used at the other to balance the supply and demand, which results in efficient gas utilization. Permits,Licenses and Other Regulations The Wastewater System is subject to regulations imposed by the 1972 Clean Water Act, Public Law 92-500 (the "Clean Water Act"), the California Environmental Quality Act of 1970, as amended ("CEQA") and the Federal Clean Air Act. The regulatory requirements are administered by the United States Environmental Protection Agency (the"EPA")and the California Regime] Water Quality Control Board("RWQCB"). Regulations of these agencies deal primarily with the quality of effluent which may be discharged from the treatment plants and the nature of waste material discharged into the collection system. The Clean Water Act directs the EPA to monitor and to regulate the discharge of pollution into navigable waterways and to enforce the requirements that all wastewater treatment plants in the nation provide full secondary treatment for sewage. In 1977, Congress amended the Clean Water Act to allow waivers of secondary treatment standards for certain ocean dischargers if they can demonstrate, to the satisfaction of the EPA, that significant adverse environmental impacts would not occur. The District currently has all applicable permits and licenses necessary to operate its facilities. The District has discharged treated wastewater into the Pacific Ocean under a permit issued by the EPA and the RWQCB. The discharge permit included a waiver under the 301(h) provisions of the Clean Water Act, allowing for less than full secondary treatment based on an ocean discharge of sufficient depth,distance and dilution. The permit was initially issued in 1985 and was the first modified Section 301(h) permit issued to a major wastewater treatment facility. The District's permit, which included the Section 301(h) waiver of secondary treatment requirements, was issued on May 6, 1998, expired on June 8,2003. In July 2002, the Board of Directors approved a change from the existing level of treatment, a blend of 50 percent advanced primary and 50 percent secondary treated wastewater, to full secondary treatment standards. See "Preferred Level of Treatment" and "Urban Runoff' below. As a result, the District established a policy to treat all wastewater discharges into the ocean to secondary treatment standards. See "Preferred Level of Treatment" below. To implement this policy, District staff was directed to immediately proceed with the planning,design,and implementation of treatment methods with the expressed purposes of eliminating the need for the permit wavier received under Section 301(h). Following determination by the Board of Directors in July 2002 to implement full secondary standards, staff prepared the Secondary Treatment National Pollutant Discharge Elimination System ("NPDES") Permit Application that was required to be submitted to the regional office of the EPA and the RWQCB in December 2002. The NPDES Permit is separate and apart from the permit waiver received under Section 301(h), and once awarded would negate any necessary waiver. Achieving secondary treatment standards will take approximately 6 years to complete, with completion expected in December 2012. But ocean discharge permits are issued for five(5)years, and the EPA has no authority to waive the discharge limits requirements or grant a longer permit (except per Sec. 301(h)). The alternative was to voluntarily seek a consent decree concurrently with the issuance of the new ocean discharge permit. This negotiated consent decree (the "Consent Decree") approves the schedule and decrees that no penalties will be imposed for discharges that exceed the secondary treatment limits during oxs wrse26018441s4 41759-11 M-1114 a 24 the period of construction. The Consent Decree was signed by the District, EPA, and the RWQCB and filed with the U.S.District Court en November 15,2004. The South Coast Air Quality Management District ("AQMD") is the regional governmental agency charged with implementing the Federal Clean Air Act. AQMD permits are required before a sewage treatment improvement project can be constructed Such permits are project specific and contain construction process requirements, required equipment and standards for predicted air quality. After construction is completed,the AQMD issues an operation permit. These permits are also project specific and contain air quality standards and other appropriate operational guidelines. Most of the District's facilities are enclosed in order to trap emissions,which are cleaned by air scrubbers that remove odors. In addition,the District has implemented an air quality risk reduction program which includes a twenty-year plan to improve treatment plant operations and reduce industrial toxic pollutants. The District currently has all necessary AQMD permits to operate the Wastewater System. Capital Improvement Program The Matter Plan. The District's 1989 master plan consisted of a 30-yew plan of action for managing wastewater activities to the year 2020, entitled "2020 Vision, Action Plan for Wastewater Management and Environmental Protection 1990-2020"(the"Master Plan"). The Master Plan integrated research facilities planning. environmental analysis, toxic control, water conservation and reclamation, sludge reuse, other wastewmer programs and financial planning into a single unified approach. In connection with the preparation of the Master Plan,an in-depth land use study was performed,resulting in the creation of a uniform land use classification system and a map of the District's service area. Land use designations and unit floe factors were used to project wastewater flows in the District's trunk sewers for then present conditions. through the year 2020. These flows were included in a computer model of the District's Wastewater System which identified future sewer capacity improvements.A thirty-year capital improvement program was developed to implement the required sewer capacity improvements. This land use study included the collection and compilation of the latest available land use plans,reports,maps and studies from the cities within the District and the County, and interviews with the planning directors or key staff within the District. Land use planning within the District's service area is the responsibility of the County for unincorporated areas and cities for areas within their boundaries. The California Coastal Commission has some land use authority within the District's coastal areas. The Strategic Plea In October 1999, the District updated the Master Plan with a strategic plan (the "Strategic Mae). The Strategic Plan updated the planning process set forth in the Master Plan through the year 2020 and defined the District's goals, responsibilities, and requirements over the then following twenty years. including projections through the assumed "build-out" of the District's service area to the year 2050. In addition to updating the population and flow assumptions, the Strategic Plan provided for an operations and financial plan, including a review of the collection,treatment and disposal facilities, and the District's ocean omfalls. Studies on a preferred level of wastewater treatment and in- sourcing of the ocean monitoring program were prepared and incorporated in the Strategic Plan. Water and air regulatory agencies require that all wastewater facilities be designed to meet the needs of anticipated growth and provide a reasonable reserve capacity. With the adoption of the Strategic Plan,the District's planning process met these requirements by shifting its approach for the development of master plans from a"size and build-approach to a broad-based,multi-agency cooperative evaluation process. Many of the assumptions used to develop the Strategic Plan, such as inflation, the projected service population, the level of building activity, and the volume of wastewater heated, were quite different from what was assumed ten years earlier under the Master Plan. Critical factors such as population growth, new construction, the volume of wastewater delivered to the plants and viable water conservation and reclamation programs were reevaluated. OHS Wen:2011*1ha.< 41758-11 nnavnacH 25 Interim Strategic Plan. In June 2002, a new, or Interim Strategic Plan Update (the `Interim Strategic Plan" herein) was completed to further update and revise many of the assumptions used to develop the District's previous planning documents, including population and land-use projections, the level of building activity in the District's service area and the volume of wastewater to be treated. The Interim Strategic Plan also provides for an operations and financial plan including a review of the District's collection, treatment and disposal facilities, and a study of the District's ocean omfall system. In addition, potential changes in the regulatory climate for the beneficial rouse of biosolids were also considered. 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 thereby providing for continued public safety, marine ecosystem protection, and water reclamation opportunities. To implement this policy, the District staff was directed to immediately proceed with the planning, design, and implementation of treatment methods that will allow the agency to meet Clean Water Act secondary treatment standards. The District currently estimates that it will take 6 years (through December 2012) and additional capital improvement costs of$538 million to reach secondary treatment discharge standards. In the interim,the District will operate the plants to maximize available secondary treatment and to reduce effluent biochemical oxygen demand and suspended Solid discharges below currently allowed limits. The current 50 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in Service. See "Preferred Level of Treatment"below. The District's planning process for development of the Interim Strategic Plan incorporated an analysis of population growth,dry weather and peak wet weather flows and the maximum use of existing facilities. The population of the District's Service area was projected to grow to 2.7 million by the year 2020. Average flow rates at both treatment plants were projected to increase to 278 million gallons a day by 2020(134 million gallons a day of treatment at Plant No. I and 144 million gallons a day at Plant No. 2),up 15%from the Fiscal Yew 2005-06 flow. In combination with the Interim Strategic Plan, the District developed its current Capital Improvement Program("CIP"). 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. Through 2020,the District's CIP is scheduled to accomplish: • Major rehabilitation of the existing headworks, primary treatment, secondary treatment, outfall pumping,and solids handling facilities at both treatment plants. • Replace and rehabilitate 16 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 ocesn 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). OHS Wgc2601844184 41758-11 MKH/MKH 26 • Achieve full secondary treatment standards. CIP Validation Study. 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 March 2007, a revised CIP was further developed to meet secondary treatment standards as quickly as possible while providing for increased flows and rehabilitation and refurbishment of existing facilities. As identified within the Interim Strategic Plan, and verified through the CIP Validation Study and Secondary Treatment Review, $538 million of additional capital improvements over the next 6 years (through December 2012)are needed to reach full secondary standards. The CIP Validation Study resulted in a revised CIP consisting of 107 large capital projects managed by the Engineering Department through 2020-21 at a total cost of$2.3 billion, approximately $750 million of which has been spent to date. The bulk of construction is scheduled during the next ten years, with average annual expenditures of nearly $300 million projected over the next five years. Implementation of full secondary treatment standards is Scheduled to be completed on or before December 31, 2012. A summary of total estimated capital costs for the CIP for Fiscal Years 2007-08 through 2020.21 is set forth in Table 5 below. Table 5 Estimated Capital Costs Fiscd Years 2007-08 through 2020-21 ill Project Cost Collection System Capacity $ 169,005,450 Collection System Repair,Rehabilitation,Replacement 192,087,530 Treatment Plant Capacity 18,329,380 Additional Secondary Treatment 489,817,580 Groundwater Replenishment System, Phase 1 15,793,000 Improved Treatment 110,905,800 Treatment Plant Repair, Rehabilitation, Replacement 505,453,550 Support Facilities 105,791,810 Total Validated Capital Improvement Program $1,607,184,100 (1) All costs are estimated as of March 23,2007 and are derived from the CIP Validation Study. Source:(range County Sanitation District. Of the Fiscal Year 2007-08 proposed CIP cash flow outlay of$338.8 million, the largest cash outlay within the plant facilities is$54.3 million for the new trickling filters at Treatment Plant No.2 with a total project cost of $221.2 million. The Headworks replacement at Treatment Plant No. 2 requires $53.4 million in Fiscal Year 2007-08,with a total project cost of$257.8 million. Another$36.6 million is required for the replacement of the interplant pumping station on Ellis Avenue to be located at Reclamation Plant No. 1,with a total project cost of$78.5 million. Of the Fiscal Year 2008-09 proposed CIP cash flow budget of$356.0 million, the largest budgeted expenditure within the plant facilities is $71.8 million for the new secondary treatment facility 2 at Reclamation Plant No. 1. The new trickling filters at Treatment Plant No. 2 are expected to require $54.1 million in Fiscal Year 2008-09. Another $39.3 million is being proposed for the Headworks replacement at Treatment Plant No. 2. The largest project in the collection system,proposed in the Fiscal Year 2007-08 proposed CIP,is $8.5 million for the Bushard Trunk Sewer project. For Fiscal Year 2009-09, the three largest projects OHS West:260184418.4 41758-11 NW.WMKH 27 include$10.8 million for Gisler-Redhill North Trunk Improvements, $15.2 million for replacement of the Bitter Point Pump Station,and$20.5 million for the Newport Trunk Sewer and Force Mains project. The total budgets for these three projects are$16.1 million,$34.1 million,and$24.4 million,respectively. In connection with the preparation of the update to the CIP cash flow budgets for Fiscal Years 2006-07 and 2007-08, the Board's Operations Committee is reviewing and validating staffs annual CiP review. A new Strategic Plan Update is expected in 2008-09. Groundwater Replenishment System The District has taken a multi-jurisdictional approach to planning for capital facilities because many of the methods for reducing or managing flows involve other jurisdictions. One such project is the Groundwater Replenishment System (GWRS). In March 2001, the District entered into an agreement with the OCWD to design and construct Phase 1 of the GWRS. This cost of this project is to be paid equally(50 percent shares) by each agency. The GWRS is a joint effort by the two agencies to provide reclaimed water for replenishment of the Orange County Groundwater Basin and to augment the seawater intrusion barrier. The GWRS is planned for three phases, Phase 1 will produce approximately 72,000 acre-feet per year of recycled water by June 2007,Phase 2 will increase the total capacity to 112,000 acre- feet by the year 2010,and Phase 3 will increase the total capacity to 145,600 acre-feet by the year 2020. Following the completion of Phase 1, the extent of the District's commitment to date, the GWRS will have the capacity to divert up to 100 million gallons per day of flow from the District's ocean discharge. Costs for Phases 2 and 3 have yet to be approved and programmed. As of June 30, 2006, the total estimated cost of GWRS Phase 1 was $497.10 million. Of this amount, up to$92.50 million may be reimbursed through grants from the U.S. Environmental Protection Agency, the U.S. Bureau of Reclamation, the State Water Resources Control Board, and others. The District's estimated gross and net share is $248.55 million and $202.30 million, respectively. Costs incurred by the District through June 30, 2006 total $150.89 million. As noted above, Phase 1 of the GWRS is nearing completion and the GWRS will not have any funding in the Fiscal Year 200" budget. Preferred Level of Treatment In July 2002, the Board of Directors approved a change from the existing level of treatment, a blend of 50 percent advanced primary and 50 percent secondary treated wastewater, to full secondary treatment standards. The reasoning behind the decision to move to full secondary standards included (1) the possibility (no matter how remote) that bacteria from the ocean outfall may at times reach the shoreline, (2) upgraded treatment will aid additional water reclamation with the Orange County Water District,(3)and the public clearly stated preference for upgrading wastewater treatment at the time. In an effort to eliminate most bacteria from being released from the ocean omfall, in 2002 the District began to use chlorine bleach to disinfect the effluent and then apply sodium bisulfate to remove any remaining chlorine prior to releasing the treated wastewater to the ocean. In order to protect the animal life living in the ocean, the District continues to take measures to limit the chlorine residual to a very low level-essentially non-detectable. This mode of disinfection is anticipated to occur for the short- term, possibly two or three years, while the District studies, designs and constructs permanent facilities, and considers alternate disinfection technologies. Beginning in Fiscal Year 2006-07, the addition of disinfection treatment required an annual outlay of$7 million in additional chemicals within the joint operating budget of the District. OHS WM260184018.4 417584u mixxmacH 28 Following determination by the Board of Directors in July 2002 to implement full secondary standards, staff prepared the Secondary Treatment NPDES Permit Application that was required to be submitted to the regional office of Environmental Protection Agency ("EPA") and the RWQCB in December 2002. An NPDES permit has been issued to the District and the District is currently operating under the Consent Decree. See"THE DISTRICT—Permits,Licenses and Other Regulations." The District estimates that it will take approximately 6 years and require additional capital improvement costs of approximately $538 million to add additional secondary treatment capacity to the Wastewater System,with completion expected in December 2012. In addition, based upon the District's most recent projections, upon completion of facilities necessary to meet secondary treatment standards, operating costs will increase by approximately $7.2 million annually. In the interim, the District will operate the plants to maximize available secondary treatment and to reduce effluent biochemical oxygen demand and suspend solid discharges below those currently allowed limits. Each year, the current 50 percent secondary portion will increase incrementally as operations change and new facilities are constructed and placed in service over the coming years. Biosolids Management The District produces approximately 650 tons of digested and dewatered(Class B)biosolids per day. By 20209 the District's biosolids production is projected to increase by 200/a, to 285,000 tons annually. The District relies on the following technologies and locations for the management of its biosolids: land application of Class B biosolids in Arizona, land application of chemically-stabilized Class A biosolids in Kem County, composting to Class A biosolids in Riverside County, Kern County and La Paz County,Arizona,and landfilling of Class B biosolids in Yuma County,Arizona. Counties throughout California and Arizona have developed,or are in the process of developing, ordinances that severely restrict or ban the land application of Class B biosolids. In June 2006, Kent County voters approved an anti-sludge initiative that bans the land application of both Class B and Class A biosolids. It has become clear that certain land application options currently available to the District are anticipated to be eliminated in the new future due to these developments. The District, as well as most of California's wastewater agencies, is working to develop sustainable products and management locations for its biosolids. The dynamic regulatory issues, land application ordinances and bans, and public perception challenges have prompted the District, with the help of CH2MHi11, to develop a Long-Range Biosolids Management Plan (LRBMP). This LRBMP was approved by the Board in December 2003. The goal of the LRBMP was to develop a sustainable, reliable, and economical program for long-range biosolids management providing environmentally sound practices that meet the stringent federal, state, and local regulatory requirements. The LRBMP recommendations included new in-plant technologies to reduce the volume of biosolids,explore the production of Class A biosolids products, and move into the energy and fuel production and compost markets. As a result of the LR13MP recommendations,the existing Synagro biosolids management contract was amended in April 2004 to have 250 tons per day of the District's Class B biosolids composted at Synagro's South Kern Industrial Center (SKIC) facility, which is currently scheduled to open in December 2007. In May 2006, the District entered into a contract with EnerTech Environmental, Inc.to convert 225 tons of biosolids per day to a renewable fuel at EnerTech's proposed facility in Rialto, California. The EnerTech solution is a relatively new, patented heat treatment process that increases the ability to dewater biosolids in order to maximize the efficiency of the production of fuel. By decreasing the moisture content of biosolids prior to drying, a smaller dryer is needed thus reducing capital and energy consumption. The fuel product will be recycled and reused under agreements with area cement OHS We t:26018441&4 41758-11 MKHa M 29 kilns and other fuel users. Residual ash from the fuel combustion becomes part of the cement product, resulting in no residual waste product liability. The EnerTech facility is expected to come on-line in late 2008. Also in April 2005, the Board approved the amendment of the existing memorandum of understanding ("MOU") with South Orange County Wastewater Authority ("SOCWA") for preliminary facility design, permitting, and community relations activities for the development of a composting facility at the Prima Deshecha Landfill in South Orange County. For the past two years under the previous existing MOU, SOCWA and the District have been working with the Orange County integrated Waste Management Department's Biosolids Committee to site an enclosed biosolids and green waste composting facility at the Prima Deshecha Landfill in South Orange County. The proposed "South Orange County Composting Facility"would take in approximately 100 to 110 tons of Class B biosolids daily from the District and SOCWA and,combined with like amounts of wood chips and yard trimmings, produce approximately 65 to 75 tons of compost par day. The MOU reflects a 50-50 participation commitment and ownership in the facility between SOCWA and the District, and consent to initiate and fund the tasks for the initial planning,permitting and concept design of the project. This project is still in the development process. As a result of the transition to biosolids-based compost and energy products the coat to the District for biosolids management is expected to increase by about $3 million per year starting in Fiscal Year 2006-07. The Fiscal Year 2005-06 budget for biosolids management was$9.7 million. The Fiscal Year 2006.07 budget for biosolids management is $12.8 million. The Fiscal Year 2007-08 biosolids management budget is currently estimated to be$14.3 million. Urban Runoff For a two-month period during the summer of 1999, eight miles of beaches in Huntington Beach were closed by the OCHCA due to excessive levels of bacteria in the water. A three-month interagency source investigation did not identify a definitive source of the contamination, but determined that the District was not at fault. Although the initial "signature" of the pollution strongly suggested sewage contamination, the investigation concluded that none of the District's facilities caused the excessive bacteria levels and that there was no adverse impact on the capacity of the Wastewater System. In June 2002, the District's charter was amended by an act of the State Legislature to include permissive language authorizing the diversion and management of dry weather urban runoff flows. This charter change will allow the District, in its discretion, to acquire, construct, operate, maintain, and famish facilities for the diversion of urban runoff from drainage courses within the District,the treatment of the urban runoff,the return of the water to the drainage courses,or the beneficial use of the water. As noted above, in July 2002, the Board of Directors approved the implementation of full secondary standards. The District is currently discharging treated wastewater into the Pacific Ocean under a permit issued by the EPA and the RWQCB on May 6, 1998 and currently under an administrative grant of permission until the EPA/RWQCB issue a new permit to replace it. Following determination by the Board of Directors in July 2002 to implement full secondary standards, staff prepared the Secondary Treatment NPDES Permit Application that was required to be submitted to the regional office of the EPA and the RWQCB. See"THE DISTRICT—Permits,Licenses and Other Regulations." Integrated Emergency Response Program Growing awareness of the threat to public utilities from natural disasters such as earthquakes, floods and other perils has made preparedness for these and other events a high priority for the planners, OHS West260184418.4 41758-11 AR(H/841 H 30 engineers, and managers of the District. In recognition of the potential damage which could occur in the wake of a major earthquake, flood, or other disaster, the District has implemented an Integrated Emergency Response Program (the "IERP") in 1979. The IERP is a two-volume plan which contains policies,plans and procedures preparing for, and responding to,emergencies. The District also analyzed disaster preparedness issues and policies within the Master Plan, and within a 1994 document titled Fault Rupture Hazard Investigation-Wastewater Treatment Plant No.2. According to the Master Plan, earthquakes are considered to be the most potentially devastating natural disaster events which confront the District. The disaster preparedness plan included in the Master Plan reviewed two possible major earthquake scenarios: an 8.3 Richter magnitude ("M") earthquake on the southern San Andreas fault system and an M 7.0 earthquake 7.0 Newport-Inglewood fault zone,which includes Plant No. 2. An M 8.3 earthquake on the southern San Andreas fault,while on the whole more destructive than the M 7.0 Newport-Inglewood fault even, would probably result in less damage to the District's service area due to the distance of the fault from most of the service area. However,the 1989 Master Plan stated that damage from such a major earthquake on the San Andreas fault would be extensive. Also, the Master Plan indicated that an M 7.0 earthquake on the Newport-Inglewood fault within five miles of the District's sewerage facilities could cause major destruction to those facilities. The disaster preparedness plan in the Master Plan indicated that it would not be economically feasible to upgrade all of the existing sanitary sewerage facilities to survive an earthquake of this magnitude along the Newport-Inglewood fault. The IERP outlines the policies and employee actions to be taken before, during and after an earthquake,earthquake response guidelines and damage assessment procedures. The Master Plan analyzed the vulnerability of the sanitary sewerage facilities and operations of the District and planned a risk reduction program wherein the vulnerability of many of the District's sanitary sewerage facilities to an earthquake could be reduced by recommended retrofit construction measures. The Master Plan also recommended that designs of existing major structures where were constructed prior to development of current seismic design standards be reviewed and the structures strengthened,if necessary. Since the 1989 Master Plan and the 1994 Report, the District has completed retrofitting where deemed appropriate. Pursuant to the Master Plan, all recent and future projects have been, and will be, designed to the same high earthquake code standards as set for other essential services, such as hospitals and fire stations. Many of the older buildings analyzed in the Master Plan have been replaced by structures built after 1989. The Army Corps of Engineers' "All-River Plan"has mitigated any future flooding of the Santa Ana River system and potential threats to the District's Wastewater System. Also, both Plant No. I and Plant No. 2 are surrounded by 3-foot to 6-foot high walls,built to federal standards. The disaster preparedness plan in the Strategic Plan investigates the damage potential posed by coastal flooding, tsunamis (large ocean waves generated by seismic activity) and windstorms. However, based on available information,the District does not consider any of such events to be a significant threat to the Wastewater System. The Strategic Plan also makes recommendations regarding fire protection of the Wastewater System and most of the structures at Plant No. I and Plant No.2 are constructed of fire-resistant materials. The IERP describes the procedures needed to respond to a possible disaster. For more information regarding emergency response policies, the disaster preparedness plan described in the Strategic Plan and the IERP can be reviewed at the District's office. OHS Wat:260184418.4 4175&11 MKH/MKH 31 DISTRICT REVENUES Sewer Service Charges General. The District has the power to establish fees and charges for services of the Wastewater System. Such fees and charges are established by the District's board of directors and are not subject to review or approval by any other agencies. In Fiscal Year 1997-98, a Rate Advisory Committee (the "RAC")was established comprised of representatives from industrial, commercial and residential users. The goal of the RAC was to examine the then current rate structure and, if needed, develop recommendations for change. The RAC analyzed the District's rate structure to determine whether its then current sewer service user fees (now known as "Sewer Service Charges") were equitable among residences and industry. This review resulted in a proposal to expand the number of non-residential user categories from one to twenty-three and to provide for gradual rate increases in seven of the nine Revenue Areas. The increase in the number of categories provided a more equitable fee structure and also provided for future reductions in single-family residential Sewer Service Charges. The Sewer Service Charges for those categories were based on the average flow and strength of wastewater discharged for each property type. In May 2002,the Board adopted District Ordinance No.OCSD 18 (the"2002 Ordinance")which was effective on July 1, 2002. The 2002 Ordinance included a rate increase of$7.50 per year, or 9.4%, for all ratepayers to $87.50 per year. On July 2, 2003, the Board adopted Ordinance No. OCSD-20 increasing sanitary sewer service charges for all single family and multi-family residential units as well as most commercial and industrial properties. The Ordinance was adopted by a 2/3 vote of the Board as required under law after conducting a noticed public hearing in compliance with all laws. The Ordinance increases the amount of the annual charges by approximately 15% per year for each of the following five years, commencing with Fiscal Year 2003-04, thereby raising the single family residence user rate from the then current $87.50 to $100.00,$115.00, $132.00, $152.00,and $175.00 annually. In May 2005,the Board adopted Ordinance No.OCSD-26 increasing the Fiscal Year 2005-06 single family residential rate 31%, from $115.00 to $151.00 for such year. In May 2006, the Board adopted Ordinance No. OCSD- 30B increasing the Fiscal Year 2006-07 single family residential rate 9.8%, from $151.00 to$165.80 for such year. N April 2007, the Board began its considerations towards increasing sanitary sewer service charges for all single family and multi-family residential units as well as most commercial and industrial properties. As currently contemplated,this schedule would increase the amount of the annual charges by approximately 11%per year for each of the following five years,commencing with Fiscal Year 2007-08, increasing the Fiscal Year 2007-08 single family residential rate 9.8°/a increasing the Fiscal Year 2008-09 single family residential rate 12.9%, increasing the Fiscal Year 2010-11 single family residential rate 12.9%,increasing the Fiscal Year 2011-12 single family residential rate 12.9%,increasing the Fiscal Year 2012-13 single family residential rate 12.75%, increasing the Fiscal Year 2013-14 single family residential rate 5.3%, increasing the Fiscal Year 2014-15 single family residential rate 5.3% and increasing the Fiscal Year 2015-16 single family residential rate 5.3%. Such increases are subject to approval by ordinance adopted by a 2/3 vote of the Board after conducting a noticed public hearing in compliance with all laws. The resulting increased sewer rates for each fiscal year are well below the average annual sewer rate of $337.00 per year currently being charged according to a survey of 904 agencies encompassing all 58 counties in the State conducted by the State Water Resources Control Board. 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. As discussed under the caption "THE OHS w«r2a0ts44rs.4 41758-1 1 nncxrt uM 32 DISTRICT—Capital Improvement Program,"the CIP Validation Study in the Spring of 2005 and further in March 2007 developed a capital improvement program to meet secondary treatment standards as quickly as possible while providing for increased flows and rehabilitation and refurbishment of existing facilities. As projected out to 2020, the CIP cash flow needs total approximately$2.3 billion, with the bulk of the construction scheduled during the next ten years and average annual expenditures of nearly $300 million projected over the next five years. 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 foes from customers through a monthly billing procedure in Revenue Area No. 14. The District has covenanted in the Master Agreement to fix, prescribe and collect fees and charges to satisfy certain coverage requirements as further described under "SECURITY AND SOURCES OF PAYMENT FOR THE CERTIFICATES—Rate Caveman"herein. Residential Sewer Service Charges. Pursuant to the 2002 Ordinance the District established residential Sewer Service Charges upon a rational basis between the fees charged each customer and the services and facilities provided to each customer of the District. In accordance with the 2002 Ordinance and the noticed public hearing held at that time which considered increases in the amount of the annual charges by approximately 20%per year for each of the their following five years,in May 2005,the Board adopted Ordinance No. OCSD-26 increasing the Fiscal Year 2005-06 single family residential rate 31a/6, from$115.00 to$151.00 for such year for all ratepayers,except those located in Revenue Area 14. such year. In May 2006, the Board adopted Ordinance No. OCSD-30B increasing the Fiscal Year 2006-07 single family residential rate 9.80%, from $151.00 to $165.80 for such year, except those located in Revenue Area 14. The average total of fees and charges for Revenue Area No. 14 are$70.80 per year per single-family residential unit and are levied and collected directly by the IRWD on a monthly basis. The IRWD subsequently pays fees to the District on a quarterly basis pursuant to the IRWD Agreement. This increase was necessary in order to meet the District's cash flow needs. Table 6 below sets forth a five- year comparison of the Sewer Service Charge rate for single-family residences. Table 6 Annual Sewer Service Charges Single Family Residence Rate Five Year Rate Schedule Fiscal Years 2002-03 through 2006-07 Fiscal Year Sewer Service Charge 2002-03 $ 87.50 2003-04 100.00 2004-05 115.00 2005-06 151.00 2006-07 165.80 Sou ..Orange County Sanitation District. Table 7 below sets forth Fiscal Year 2005-06 total average yearly Sewer Service Charge for single-family residences within the District,together with the tax comparable total average annual Sewer Service Charge,within the jurisdictions of certain other cities and districts within the State. OHS Wm:260184418.4 4175&11 NOMAMM 33 Table 7 Comparison of Total Sewer Service Charges For Single-Family Residences ere For The Year Ended June 30,2006 Annual Average Dry Sewer Wea/her Flow Semi" Treatment Collection Property Tax Entity (mg/d) Charge Lmel ttl Responsibility(Q Income t4t San Diego 180 S422 2 Yes No Los Angeles(City) 447 294 4 Yes No East Bay MUD 80 205 4 No Yes Sacramento 155 204 3 No Yes Orange County Sanitation Districteae 235 166 2 No Yes Los Angeles(County) 524 96 4 No Yes (1) Treatment Level Categories: "1"-Primary treatment. "2"-Advanced primary or primary with some secondary treatment. "3"-Secondary treatment. -4"-Advanced secondary or secondary with some tertiary treatment. "5"-Tediary treatment. (2) Orange Comty Sanitation District Sewar Services Charges adjusted to Fiscal Year 200"7. (3) Source: 2005.06 Wauewater User Charge Survey Report by the Celifomia Slate Water Resources Control Board. (4) Source: 2002 Survey by the Association of Metropolitan Sewage Agencies. 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 suspended solids and biochemical oxygen demand. Ptnslmnt to the 2002 Ordinance, rates for each component factor were revised for certain industrial users in order to be consistent with the rates charged to residential users. Total industrial Sewer Service Charges in Fiscal Year 2005-06 were approximately $11.0 million. Industrial Sewer Service Charges are applied to both the operating and capital funds. Additional Revenues The District has several sources of additional revenue, including property taxes,Capital Facilities Capacity Charges,capacity rights,permit and inspection fees and interest earnings. Property Taxes. The District receives approximately 2.5%of the one percent County ad valorem property tax levy, based on the allocation procedure under State law. Property tax revenues were $38.4 million in Fiscal Year 2000-01, $41.1 million in Fiscal Year 2001-02, $44.6 million in Fiscal Year 2002- 03, S46.9 million in Fiscal Year 2003-04, $35.8 million in Fiscal Year 2004-05 and $40.0 million in Fiscal Year 2005-06. The$11.2 million decrease in property tax revenues from Fiscal Year 2003-04 to Fiscal Year 2004-05 is reflective of the State of California's then current fiscal crisis and the implementation of the first year of a two-year 400% secured property tax shift away from independent special districts. During the 2004-05 State Budget process, the State Legislature and the Governor enacted Senate Bill 1096 and Assembly Bill 2115, effectively shifting an additional $1.3 billion in local property tax revenues from counties, cities, special districts and redevelopment agencies to schools and community colleges. This shift was effective for Fiscal Year 2004-05 and Fiscal Year 2005-06, resulting OHS West26018N18.4 417W 1 ha M 34 in a 40% secured property loss for the District. See"LIMITATIONS ON TAXES AND REVENUES - Proposition IA." This 40% reduction for Fiscal Year 2004-05 was somewhat offset by the continuing upturn in the real estate market. Total assessed valuations increased over the 2004-05 Fiscal Year by 10.3%, and the full value of these increases was received on all non-secured property tax distributions. The District expects property tax revenues in its full allotment (no State property tax shift) of $55.6 million in Fiscal Year 2006-07. Current projections indicate that property tax revenues received by the District are expected to increase by approximately 54% in fiscal year 2006-07 and then 5% each year thereafter. The apportionment of the ad valorem tax is pursuant to a revenue program adopted by the District in April 1979 to comply with the EPA, the RWQCB, legal and contractual requirements and Board policy. Capital Facilities Capacity Charges. Capital Facilities Capacity Charges (formerly known as connection fees) are one-time fees with two components, paid at the time properly is developed and connected to the Wastewater System. The fees are 'unposed by the District pursuant to Section 5471 of the California Health and Safety Code and 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); however, under the current industrial use ordinance, additional Capital Facilities Capacity Charges can be imposed on industrial users who place larger than average demand on the Wastewater System. Member cities and sanitary districts collect Capital Facilities Capacity Charges for the District when building permits are issued. 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. On December 15, 1999, the Board approved District Ordinance No. OCSD 99-11 (the "1999 Ordinance")which established a comprehensive Capital Facilities Capacity Charge. The 1999 Ordinance, effective as of January 1, 2000, renamed connection fees as Capital Facilities Capacity Charges and provided a more equitable schedule of fees among industrial,commercial and residential users. Pursuant to the 1999 Ordinance, Capital Facilities Capacity Charges were revised for high demand industrial users in five incremental increases from 1999 through 2001. Pursuant to an agreement with the IRWD, the IRWD is not required to pay Capital Facilities Capacity Charges and 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). Sale of Capacity. The District has entered into agreements with the Santa Ana Watershed Project Authority ("SAWPA") whereby wastewater from Upper Santa Ana River Basin dischargers can be transported through the District's Santa Ana River Interceptor to the District's wastewater treatment facilities.This program was developed in the early 1970's.The agreements establish control mechanisms regarding the quality of wastes deposited into the Wastewater System. At the present time, SAWPA has purchased and paid for 30 million gallons a day of capacity rights in the District's Santa Ana River Interceptor and 13 million gallons a day of capacity in the District's wastewater treatment plants. Additional treatment plant capacity can be purchased in increments at the District's current replacement cost. The Santa Ana River Interceptor Line ("SARI") was built in the Chino Basin Preserve Area in order to remove dairy farm wastes and accommodate future when development. Salts in the washwater generated from the cleaning of cows and milking equipment were leaching into the groundwater in the Chino Basin and the SARI was built to divert the washwater from this area. However, due to the nature of the Chino Basin Preserve, the development of any infrastructure in the area to accommodate the SARI Oxs ww:2sore44ta.4 41758-11 MKH n 35 was limited. The current SARI multi-phase project is designed to connect several dairies to the SARI. Future expansions of this project could include connecting other dairies and other waste streams with the SARI line. See"THE DISTRICT—Capital Improvement Program"herein. Wastewater Treatment History 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 mg/d,for Fiscal Year 2004-05 was 243 mg(d and for Fiscal Year 2005-06 was 235 mg/d. The highest flow rate experienced was during El Nino storm periods. Peak flows of 500 mg/d were recorded in December 1997 and February 1998. There were no sewer failures or overflows during these events. Customers The historical number of customers served by the District for the Fiscal Years 200MI through 2004-05 and the projected number of customers served by the District for the Fiscal Years 2005-06 through 2009-10, identified in Equivalent Dwelling Units("EDUs"), are set forth in Table 8 below. As discussed below, sewer service charges are based on the expected amount of wastewater flow for a single family dwelling. This base amount is considered the "equivalent dwelling unit". The EDU's set forth in Tables 8 and 9 below equate to total Sewer Service Charge levies. Table 8 Historical and Projected Equivalent Dwelling Units Fiscal Years 2001-02 through 2010-11 Historical Projected Fiscal Year EDUs Fiscal Year EDUsul 2001-02 998,031 2006-07 907,986 2002-03 897,757 2007-08 911,618 2003-04 f�1 884,169 2008-09 915,264 2004-05 893,501 2009-10 918,925 2005-06 910,469 2010-11 922,601 (1) EDU growth during the ptujeclion period is estimated a approximately 0.4%per a m=. (2) With respect to this (twat Ycar.presentation in the Statistical Section of the Comprehensive Annual Financial Report sct f mh in Appendix A indudc LIXI's which equate to total Sewer Service Charge collections. Source:(range County xmtitmitm Diaricl. Table 9 below shows the number of residential and commercial customers and industrial customers and the approximate percentages of Sewer Service Charge revenues derived from the combined residential and commercial use and industrial use for the last five fiscal years. OHS Wes:260184418.4 41758-11 hixwnacH 36 Table 9 Number of Accounts and Revenues by Customer Class for the Fiscal Years Ending June 30 (S Millions) Residential/Commercial Industrial Percent AV of Number of Sewer Equivalent Percentage of Service Single- Sewer Service Number of Charge Family Total Charge Customer Reveua Fiscal Year Dwellings Revenue Revenues Accounts Total Revane as 2001-02 898,031 $70.3 90% 573 S 7.5 10Y. 2002-03 897,757 77.0 92 603 6.3 8 2003-04ttl 860,156 96.0 92 530 7.5 8 2004-05 tt1 960,634 99.0 90 568 10.5 10 2005-06 872,859 132.0 92 557 12.2 8 (1) With respect to this Fiscal Year,Presentation in the Statistical Section of the Comprehensive Annual Financial Report set forth in Appendix A include EDU's whi h equate to total Sewer Service Charge collections rather than levies Source: Orange County Sanitation Diund. The ten largest industrial customers of the District for the Fiscal Year ended June 30, 2006 are shown in Table 10 below. These industrial customers paid a total of$6,331,911 for services of the District, or approximately 57% of the District's approximately $11 million of total revenues received from industrial customers, and approximately 4.100/ of the District's total Sewer Service Charge revenues of approximately S132 million. Table 10 Largest Customers of the District for the Fiscal Year Ended June 30,2006 Percentage of Total Sewer Service Sewer Service User Charges Charge Revenues Kimberly-Clark Worldwide, Inc. $ 948,680 0.61% MPC Foods,Inc. 875,894 0.57 Alstyle Apparel—A&G Inc. 845,474 0.55 Stremicks Heritage Foods,LLC 694,946 0.45 Disneyland Resort 676,876 0.44 Nor-Cal Beverage Co. Inc. 574,081 0.37 Disneyland Resat-DCA 534,899 0.35 House Foods America Corp. 480,413 0.31 Van Law Food Products,Inc. 374,479 024 Pepsi-Cola Bottling Group 326,180 021 TOTAL $031,911 4.10% Source: Orange County Sanitation District. OHS West 2601WIS 4 41758-11 MKH/MKH 37 Assessed Valuation The assessed valuation of property in the County is established by the County Assessor, except for public utility property which is assessed by the State Board of Equalintion. Due to changes in assessment required under State Constitution Article XIIIA, the County assessment roll no longer purports to be proportional to market value. See "LIMITATIONS ON TAXES AND REVENUES" herein. Generally, property can be reappraised to market value only upon a change in ownership or completion of new construction. The assessed value of property that has not incurred a change of ownership or new construction must be adjusted annually to reflect inflation at a rate not to exceed 2% per year based on the State consumer price index. In the event of declining property value caused by substantial damage, destruction, economic or other factors, the assessed value must be reduced temporarily to reflect market value. For the definition of full cash value and more information on property tax limitations and adjustments,see"LIMITATIONS ON TAXES AND REVENUES"herein. The County Assessor determines and enrolls a value for each parcel of taxable real property in the County every year. The value review may result in a reduction in value. Taxpayers in the County also may appeal the determination of the County Assessor with respect to the assessed value of their property. Table I 1 below shows a five-year history of assessed valuations in the District since Fiscal Year 2001-02. Over the years shown, assessed valuations in the District have increased at an average rate of approximately 8.7%per fiscal year. Table 11 Assessed Valuations of Property in the District Fiscal Years 2001-02 through 2005-06 (S Millions) Fiscal Year Value %Change 2001-02 173.4 8.85 2002-03 188.9 8.91 2003-04 201.4 6.66 2004-05 219.3 8.85 200546 241.8 10.30 Source; County ofOrauge Auditor-Controller, Since 2002, the Southern California housing market has experienced significant price appreciation with accelerating demand. One factor contributing to such demand in southern California over the past several years has been the increasing use of creative financing options for individual home buyers, including adjustable rate mortgages. Adjustable rate mortgages take various forms, but commonly have low initial interest rates, which have risen significantly in this year. As interest rates begin to rise and adjustable rates are reset and result in higher interest rates, homeowners who financed the purchase of their homes with an adjustable rate mortgage can expect their monthly mortgage payments to increase. In addition,it is possible that as interest rates rise on new loans and adjustable rates are meet on existing loans, there will be a decrease in home sale prices, resulting in recent homebuyers having loan balances in excess of the value of their homes. In the past several months,a number of public home builders with significant operations in the Southern California housing market have reported in SEC filings slowing demand, significant increases in sales cancellation rates and increasing inventory build-ups(including increasing investor/speculator resale inventory)amid rising interest rates. OHS Wae260184418.4 41758-11 ha01/MKH 38 Tax Levies and Delinquencies Property taxes are based on assessed valuation which is determined as described under "DISTRICT REVENUES—Assessed Valuation"herein. In accordance with the California Revenue and Taxation Code,the County tax collector collects secured tax levies for each Fiscal Year.Property taxes on the secured roll are due in two installments, on November I and February 1. The District currently participates in the County's Teeter Plan under which the District receives annually 1000% of the secured property tax levies and Sewer Service Charges to which it otherwise is entitled,regardless of whether the County has actually collected the levies. This alternative method provides for funding each taxing entity included in the Teeter Plan with its total Secured property taxes during the year the taxes are levied, including any amount uncollected at fiscal year end. Under this plan,the District's general fund receives the full amount of secured property taxes levied each year on its behalf and, for so long as such plan remains in effect, the participating entities, such as the District, no longer experience delinquent taxes. The County's general fund is the designated recipient of future collections of penalties and interest on all delinquent taxes collected on behalf of participants in this alternative method of apportionment. In recent years, the County has experienced delinquencies of Sewer Service Charges in the District of approximately 2°/n. Unpaid taxes become delinquent after December 10 and April 10,respectively,and a ten percent penalty attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared tax-defaulted on or about June 30. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus costs and redemption penalty of one and one-half percent per month to the time of redemption. If taxes are unpaid for a period of five years or more,the tax-defaulted property is subject to Sale by the County Treasurer-Tax Collector. Property taxes on the unsecured roll are due as of the January 1 lien date and become delinquent, if unpaid,cn August 31. A ten percent penalty attaches to delinquent taxes on property on the unsecured roll and an additional penalty of one and one-half percent per month begins to accrue on November 1. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer, (2) filing a certificate in the office of the County Clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3)filing a certificate of delinquency for recordation in the County Recorder's office in order to obtain a lien on certain property of the taxpayer; and (4) seizure and Sale of personal property, improvements or possessory interests belonging or assessed to the taxpayer. Table 12 below shows a five-year history of the District's ad valorem total property tax and Sewer Service Charge levies. Pursuant to the Teeter Plan described above, which provides for the County's financing of annual delinquencies, information with respect to outstanding delinquencies in prior years collected in current fiscal years and the percent of delinquencies to the total tax and Sewer Service Charge levies. OHS WW:260184418.4 41758-11 MKWAMH 39 Table 12 Total Property Tax and Sewer Service Charge Levies in the District for Fiscal Years 2001-02 through 2005-06 Fiscal Total Tax and Year Sewer Service Charge Levy 2001-02 $112,087,000 2002-03 122,210,000 2003-04 134,132,000 2004-05 152,745,000 2005-06 191,290,000 Source:ormse County Aw W-Coaaoner's Office. Budgetary Process The District's operating fund budget relies on revenues from property taxes and Sewer Service Charges, both of which are collected on the property tax bill. See "DISTRICT REVENUES — Sewer Service Charges" and"—Additional Revenues." The District receives tax revenues from the County in eight allocations, with the largest receipts in December and April. The District operates on a Fiscal Year beginning each July 1. The operating fund budgets include funds to cover the dry period of each tax year, i.e., the period from the beginning of the Fiscal Year until the first taxes me received. The dry-period requirement is budgeted at one-half of the annual operating fund budgeted expenditures. The District uses the accrual method of accounting in its budgets.The District has conformed to its budgets for the last five fiscal years and is conforming to its budget for the current fiscal year. The District's annual budget preparation process begins in January of each year and concludes in June upon its adoption. The General Manager reviews the final operating budgets and then distributes them to the Directors and District Committees for consideration. The Board of Directors then adopts the proposed annual budgets,with any revisions,in June of each year. Budgetary control is exercised at the individual Department level and administrative policies provide guidelines on budget transfers and the authorization necessary to implement hansfers. A budget adjustment is a transfer which does not change the total appropriated amount and does not require Board action. Approval may be granted by the General Manager or the Department Head in certain circumstances. Department Heads have the discretion to reapportion funds between certain line items within a division but may not exceed total appropriated amounts for each department. They may also transfer staff across divisional lines. The General Manager and Board of Directors must approve additional capital outlay items. A budget amendment is an adjustment to the total appropriated amount which was not included in the original budget. These supplemental appropriations require formal action by the Board of Directors. Prior year reserves or fund balances may be appropriated to fund items not previously included in the adopted budget. Reserves or fund balances exceeding minimum amounts required by fiscal policies may be appropriated if it is determined to be in the best interest of the District. Directors may also appropriate reserves in case of emergencies or unusual circumstances. OHS Wea:260184418.4 4175&11 NWJVKIxH 40 Reserves The District has an established reserve policy with eight separate categories for its reserve funds. The following table sets forth actual reserves at June 30, 2005 and 2006, and projected reserves at June 30, 2007, for each fund. 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. Reserve levels are calculated in accordance with the District's reserve policy. Table 13 Actual and Projected Reserves Fiscal Years 2004-05 through 2006-07 ($Millions) June 30,2005 June30,2006 June30,2007 Cash Flow Requirements Reserve Operating Expenses $108 $113 $65 Certificate of Participation Payments -- -- 54 Operating Contingencies Reserve — -- 13 Capital Improvement Program Reserve 191 189 43 Catastrophe and Self Insurance 57 57 57 Capital Replacement and Refurbishment 51 52 53 Debt Service Required Reserves 65 79 79 Rate Stabilization Reserve Total $472 $490 $364 " Projected. Source: Orange Counp x;mitatuni District. 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. 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 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 $5.56 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 Required Reserves(or Obligation Reserve Funds as defried in the Muster Agreement)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 which exceed the targets for all other reserves. The Rate Stabilization Reserve is a OHS%u 260194418.4 41758-11 MxH/MKH 41 separate fund from the Rate Stabilization Account established under the Trust Agreement. These funds are applied to future years' needs and must he maintained at specified levels. There is currently no established target for this reserve and,because the reserves of all other funds have not been exceeded,the reserve level for this reserve fund is zero for Fiscal Years 2005-05 through 2006-07. See APPENDIX A - "COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FOR FISCAL YEAR ENDED JUNE 30,2006"herein. Summary of Operating Data Set forth in Table 14 below is a summary of historic operating results for the District for Fiscal Years 2001-02 through 2005-06. The District's CIP cash flow budget for Fiscal Year 2005-06 is $260.8 million, an increase of$72.9 million from the prior year total, for the financing of joint works treatment and disposal system improvement projects, and collection system improvement projects. This increase is attributable to the additional infrastructure needs identified in the Interim Strategic Plan and in the CIP Validation Study. The information presented in the summary should be read in conjunction with the financial statements and notes. See APPENDIX A - "COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FOR FISCAL YEAR ENDED JUNE 30,2006"herein. Table 14 Summary of Historical District Revenues and Expenses and Other Financial Information For Fiscal Years 2001-02 Through 2005-06 ($Millions) 2001-02 2002-03 2003-04 2004-05 2005-06 Revenues: Sewer Service ChargesP1 $ 70.3 $ 77.0 $ 86.0 $ 99.0 $ 132.0 Industrial Sewer Service 7.5 6.3 7.5 10.5 12.2 Charges Revenue Area No. 14 Fees 2.2 3.2 5.8 6.9 5.3 Ad Valorem Taxes 41.1 44.6 46.9 35.8 40.0 Interest Earnings 27.8 25.9 6.8 15.1 10.4 Capital Facilities Capacity Charges 10.6 10.1 9.0 9.8 15.6 Other Revenues 2.5 3.4 4.0 6.1 9.2 Total Revenues $162.0 $170.5 $166.0 $183.2 $224.7 Operations and Maintenance Expenses $ 68.6 $ 79.7 $ 95.4 $ 101.8 $ 105.6 Net Revemes)r) S 93.4 $ 90.8 $ 70.6 S 81.4 $119.1 Debt Service $ 23.4 $ 22.4 $ 34.1 $ 37.9 $ 32.3 Coverage RatioS121 3.99x 4.05x 707. 2.15. 3.69x CIP Outlay $ 83.9 $112.9 $149.5 $187.9 $260.8 Ending Reserveslrl $429.7 $394.0 $518.0 S407.0 S411.0 (1) Netofrebates.ifmry.toconane ialusers. (2) Calculated in accordance with the Master Agreement. (3) Excludes deb service reserves in accordance with the District's reserve policy. Source: Orange Cowry Sanitation District. OHS Wea:2601M18.4 41759-11 Mxwha 42 Projected Operating Data Set forth in Table 15 below are projected operating results for the District for Fiscal Years 2006- 07 through 2010-11. These projections assume the number of projects and scheduled build out set forth in the CIP Validation Study, increased sewer service rates for Fiscal Year 2006-07 and projected increased sewer service rates for Fiscal Years 2007.08 and 2008-09 at 9.8% and thereafter at 12.9%. Principal expenditure components of these projections are the Interim Strategic Plan and CIP Validation Study,which identified 107 large capital projects managed by the Engineering Department through 2020 at a total cost of$2.3 billion,and currently projected to include nearly$1.5 billion in the next five years. The District's CIP cash Flow budget for Fiscal Year 2006-07 is$266.1 million,an increase of$5.8 million from the prior year total. This CIP budget finances joint works treatment and disposal system improvement projects, and collection system improvement projects. This increase is attributable to the additional infrastructure needs identified in the Interim Strategic Plan and in the CIP Validation Study. The preparation of such projections was based upon certain assumptions and certain forecasts with respect to conditions that may occur in the future. While the District believes that these assumptions and forecasts are reasonable for the purposes of the projected selected operating data, it makes no representations that they will in fact occur. To the extent that actual future conditions differ from those assumed herein,the data will vary. Table 15 Summary of Projected District Revenues and Expenses and Other Financial Information for Fiscal Years 2006-07 through 2010-11 ($Millions) 2006-07 2007-08 20" 2009.10 2010-11 Revenues: Sewer Service Charges $149.3 $164.6 $186.6 $211.5 $239.8 Industrial Sewer Service Charges 17.1 18.9 21.4 24.2 27.5 Revenue Area No. 14 Fees 19.8 24.0 18.5 18.2 20.4 Ad Valorem Taxes 55.6 58.3 61.2 64.3 67.5 Interest Earnings 17.3 15.5 17.4 18.9 20.5 Grants 2.4 4.0 - -- - Capital Facilities Capacity Charges 11.1 11.7 12.3 13.0 13.6 Other Revenues 28.6 10.4 7.8 8.0 8.1 Total Revenues $301.2 $307.4 $3253 S358.1 $3 17.4 Operations and Maintenance Expenses $129.1 $135.6 $147.1 $157.7 $169.8 Net Revenues01 $172.1 $171.8 $178.2 $200.4 $227.6 Debt proceeds - $300.0 $255.0 $225.0 $225.0 Debt Service"' $ 54.4 T 6 53 $ 85.4 $103.1 $119.5 Coverage RatiOS11121 3.16x 2.63x 2.09x 1.94x 1.90x CIP Outlay $266.1 $338.8 $309.4 $278.3 $293.2 Ending Reserves)') $285.3 $319.0 $331.3 $352.8 $370.7 (1) Calculated in accordance with the Master Agreement. (2) Preliminary.subject to change. Assumes the refunding of the 2027 though 2029 maturities of the 2003 Certificates,which is the minimum the Dintid expects to refund. The specific maturities and amount of the Refunded Certificates will be OHS Wea:2601WIS.4 41759-11 t vatmgtH 43 determined by District on the basis of market conditions at or about the time that the District accepts bids for the Ccmficates. (3) Excludes debt service reserves in accordance with the District's reserve policy. Source: Orange Comfy Sanitation District. Management's Discussion and Analysis of Operating Data The District's Fiscal Year 2006-07 total operating and capital improvement budget is $456.3 million,a 0.3% increase over the prior year budget of$455.1. The District's Fiscal Year 2006-07 budget includes$266.1 million in capital improvement outlays as the District moves towards reaching secondary treatment standards by the target date of December 31, 2012, as specified by the Board's July 2002 resolution and in keeping with the terms and conditions of its ocean discharge permit and related Consent Decree. The Fiscal Year 2006-07 operations budget for the collection, treatment, and disposal of wastewater is $129.1 million, an $11.3 million, or 9.6% increase from the prior year budget of$117.9 million. This increase is primarily attributable to the proposed increase in personnel costs due mostly to the current capital improvement program,totaling$1.6 billion over the next 10 years. Personnel costs are being proposed for increase at 6.9%, or$4.8 million. Contractual services budget increased $2.9 million, or 19.9a/m due primarily to the $2.7 million, or 27.20% increase in solids removal. This increase is reflective of a projected 18.Oa/a increase in hauling and land application costs compounded by a 4.0% increase in the volume of solids generated, from 250,000 tons to 261,000 tons. Repairs and maintenance budget increased $2.2 million, or 26.8% primarily due to the $1.2 million maintenance replacement of activated sludge diffusers that supply aeration to the basins. In addition, $750,000 was approved for the cleaning of three digesters and another $700,000 for the overhaul of two txxnral generation system engines used to supplement electricity from digester gas produced from the treatment plants. Another significant increase is in operating materials and supplies, up $1.4 million or 6.7%, due primarily to the combined increases in chemicals for treatment, odor control, and disinfection approximating one million dollars. These chemical increases are primarily a result of unit price increases of up to 25%. The cast per million gallons of wastewater treated,an industry-wide performance measurement,is expected to increase in Fiscal Year 2006-07 to $1,358, a $141, or 11.6a/m increase over the prior year actual of $1,217. Wastewater flow through the treatment system is expected to increase from the actual 235 million gallons per day(mgd)in Fiscal Year 2005-06 to 250 mgd in Fiscal Year 2006-07,a 6.4%increase. The Fiscal Year 2006-07 Capital Improvement Program (CIP)cash flow budget was approved at $266.1 million, a 4.00% decrease from the prior year budget of $277.1 million. These budgeted cash outlays are based on a valuation study of the CIP conducted by staff to ensure the appropriateness of all capital projects and the accuracy of the cost estimates. The Fiscal Year 2006-07 CIP identified 85 large capital projects and 23 special projects over a 15 year period at a total cost of$1.87 billion. This total represented a $435 million decrease from the Fiscal Year 2005-06 CIP. Based on this study, the Board adopted Ordinance No. OCSD-30B increasing the sanitary sewer service charges by approximately 9.8% for Fiscal Year 2006-07. This action increased the single family residence user rate, the basis for all sewer user fee rates, from $151.00 to $165.80. The completion of the CIP Validation Study for Fiscal Year 2006-07 reaffirms the need for further rate increases in future years. Annual increases are ordered to be subject to reaffirmation by the affirmative vote of 213 of the members of the Board of Directors prior to implementation of any such charge for each fiscal year. See"DISTRICT REVENUES-Sewer Service Charges." The CIP Validation Study and Secondary Treatment Review conducted in March 2007 updated the CEP with the continue goal of meeting secondary treatment standards as quickly as possible while providing for increased flows and rehabilitation and refurbishment of existing facilkies. This updated CIP Validation Study resulted in a revised CIP consisting of 107 large capital projects through 2020 at a OHSWea:26018441&4 41758-11 WditlY CH 44 total cost of$2.3 billion. The CIP cash flows over the next ten years is now projected to be$1.6 billion; average annual expenditures of nearly $300 million projected over the next five years, and the implementation of full secondary treatment standards to be completed on or before December 31,2012. Investment of District Funds State statutes authorize the District to invest in obligations of the United States Government,state and local governmental agencies, negotiable certificates of deposits, bankers acceptances, commercial paper, reverse repurchase agreements and a variety of other investment instruments which are allowable under California Government Code Section 53600 et seq. All District funds, except for Obligation Reserve Funds controlled by a bank trustee pursuant to the provisions of Existing Senior Obligations, are managed by an external money manager, Pacific Investment Management Company ("PIMCO"). Mellon Trust ("Mellon Trust") serves as the District's independent custodian bank for its investment program. Callan Associates ("Callan") serves as the District's independent advisor. At June 30, 2006, the District's externally managed fund consisted of short-term investment portfolio of$72,171,454 with an average maturities of 85 days, and a long-term investment portfolio of $295,290,776 with average maturities of 2.7 years. Investments consist of United States government securities, corporate bonds and commercial paper. The District's portfolio contains no reverse purchase agreements. [TO COME: At March 31,2007,the District's externally managed fund consisted of short- term investment portfolio of $ with an average maturities of days, and a long-teen investment portfolio of$ with average maturities of_years. Investments consist of United States government securities,corporate bonds and commercial paper. The District's portfolio contains no reverse purchase agreements] Deposits in banks are maintained in financial institutions which provide deposit protection on the bank balance from the Federal Depository Insurance corporation. The California Government Code requires State banks and savings and loans to secure local government deposits by pledging government securities equal to 110% of the deposits or by pledging first trust deed mortgage notes equal to 150% of the deposits. The District's Investment Policy requires that the District invest public funds in a manner which ensures the safety and preservation of capital while meting reasonable anticipated operating expenditure needs, achieving a reasonable rate of retum and conforming to all state and local statutes governing the investment of public funds. The primary objectives, in order, of the District's investment activities are safety,liquidity and return on investments. For more information regarding the District's investment portfolio as of June 30,2006, see Note 2 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended June 30,2006 set forth in Appendix A. FINANCIAL OBLIGATIONS Existing Indebtedness Currently the District has Senior Obligations Outstanding payable on a parity with the Installment Payments under the Installment Purchase Agreement. The table below describes the District's outstanding certificates of participation as of April 1,2007. The payment obligations in connection with each of these obligations,together with the 1992 Swap and the 1993 Swap described below, constitutes a OHS weet2601s4418.4 41758-11 MY-RRA a 45 Senior Obligation, subject to the provisions of the Master Agreement and shall he afforded all of the advantages, benefits, interests and security afforded Senior Obligations pursuant to the Master Agreement. The District has no outstanding general obligation bonds. Table 16 Outstanding Certificates of Participation Debt at April 1,2007 Principal Issue Outstanding Final Amount Date Balance Maturity 1992 Certificates $]60,600,000 12/3/92 $ 85,505,000 8/1/13 1993 Certificates 46,000,000 9/2/93 32,200,000 811/16 Series 2000 Certificates 218,600,000 g/13/00 197,400,000 8/1/30 Series 2003 Certificates* 280,000,000 826/03 280,000,000 2/1/33 Series 2006 Certificates 200,000,000 3/V06 200,000,000 211136 Total Long-Term Debt $905,200,000 $795,105,000 ' All wa portion of the Suitt 2003 Certificates are being refunded with proceeds from the sale of the Certificates. In connection with the execution and delivery of the above-referenced outstanding certificates of participation, the district entered certain installment purchase agreements, or equivalent documents providing for the payment of installment payments or similar payments. )n December 1992,the District caused the execution and delivery of certain certificates of participation which were subsequently designated as the Orange County Sanitation Refunding Certificates of Participation, 1992 Series (the "1"2 Certificates"). The District entered into an agreement for acquisition and construction (the"1992 Agreement for Acquisition and Construction"), a Standby Certificate Purchase Agreement (including as thereafter amended and substituted, the "1992 Standby Agreement") in order to provide for payment of the purchase price of tendered and um emarketed 1992 Certificates,and an Interest Rate Swap Agreement, as amended(the"1992 Swap")with AIG Financial Products Corp. In September 1993, the District caused the execution and delivery of certain certificates of participation which were subsequently designated as the Orange County Sanitation Refunding Certificates of Participation, 1993 Series (the "1993 Certificates"). The District entered into an agreement for acquisition and construction(the"1993 Agreement for Acquisition and Construction"),a Reimbursement Agreement (including as thereafter amended and substituted, the "1993 Reimbursement Agreement") in order to provide for payment of the purchase price of tendered and unremarketed 1993 Certificates, and an interest rate swap agreement, as amended (the "1993 Swap") with Societe Gentimle, New York Branch. In August 2000,the District caused the execution and delivery of the Certificates of Participation, Series 2000-A (the "2000-A Certificates") and the Orange County Sanitation District Refunding Certificates of Participation, Series 2000-B (the "2000-B Certificates" and together with the 2000-A Certificates the "2000 Certificates"). In connection with the execution and delivery of the 2000 Certificates, the District entered into an installment purchase agreement (the"2000 Installment Purchase Agreement')and a Standby Agreement,dated as of August 1,2000(the"2000 Standby Agreement"), by and among the District,the Trustee and D)exia Credit Local,acting through its New York Agency in order to provide for payment of the purchase price of tendered and unremarketed 2000 Certificates. On August 2003,the District caused the execution and delivery of the Orange County Sanitation District Certificates of Participation, Series 2003 (the "2003 Certificates") evidencing $280,000,000 original aggregate principal amount,a portion of which are being refunded with proceeds from the sale of OHS Wes1260184na.4 4175&111AOV1ACH 46 the Certificates. In connection with the execution and delivery of the 2003 Certificates,the District and the Corporation entered into an installment purchase agreement (the "2003 Installment Purchase Agreement"). In March 2006, the District caused the execution and delivery of certain certificates of participation designated as the Orange County Sanitation Refunding Certificates of Participation, 2006 Series (the "2006 Certificates") evidencing $200,000,000 original aggregate principal amount. In connection with the execution and delivery of the 2006 Certificates, the District and the Corporation entered into an installment purchase agreement (the "2006 Installment Purchase Agreement") and the District entered into a Standby Certificate Purchase Agreement, dated as of March 1, 2006 (the "2006 Standby Agreement"), with Depfa Bank plc, acting through its New York Branch in order to provide for payment of the purchase price of tendered and unremarketed 2006 Certificates. The 1992 Standby Agreement, the 1993 Reimbursement Agreement, and the 2000 Standby Agreement and the 2006 Standby Agreement each constitutes a Credit Facility Agreement and a Credit Facility.The obligation of the District to repay amounts dmwn on or paid under these agreements,to pay interest on such amounts and to pay any other amounts in connection with such draw or payment constitutes a Reimbursement Obligation,each with respect to a Senior Obligation. For more information regarding the District's outstanding indebtedness and interest rate swaps as of June 30, 2006, we "Variable Rate and Swap Obligations" and Notes 4 and 5 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended June 30, 2006 set forth in Appendix A. Variable Rate and Swap Obligations The District entered into separate interest rate swap agreements in connection with the 1992 Certificates and the 1993 Certificates. The objective of the interest rate swaps is to lower the District's borrowing costs when compared against fixed-rate bonds at the time of issuance. The swaps effectively change the District's variable interest rate to a synthetic fixed rate of 5.55%on the 1992 Certificates and to a synthetic fixed rate of 4.56%on the 1993 Certificates. By their terms,the District receives payments that are calculated by reference to a floating interest rate and makes payments that are calculated by reference to a fixed interest rate. In its annual financial report, the interest rate swap agreements are accounted for as a hedge by the District, and the associated interest rate differential to be paid or received is charged to interest expense as interest rates change. See Note 5 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended Jane 30, 2006 set forth in Appendix A. Under the 1992 Swap,the District receives a variable interest rate equal to the interest paid to the holders of the 1992 Certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of$160,600,000. The notional value of the swap declines in tandem with the principal amount evidenced by the 1992 Certificates. The 1992 Swap matures on August 1, 2013. Because interest rates have declined since execution of the 1992 Swap, the swap had an estimated negative fair value of$10.92 million as of June 30,2005. Under the 1993 Swap,the District receives a variable interest rate equal to the interest paid to the holders of the 1993 Certificates which is based on a tax exempt daily interest rate as determined by the remarketing agent on an initial notional amount of$46,000,000. The notional value of the 1993 Swap declines in tandem with the principal amount evidenced by the 1993 Certificates. The 1993 Swap matures on August 1, 2016. Because interest rates have declined since execution of the 1993 Swap,the swap had an estimated negative fair value of$3.43 million as of Jane 30,2005. OHS Wa 260184418.4 41758-I l KTJ4/MKH 47 The interest rate swap agreements entail risk to the District. The counterparty may fail or be unable to perform, interest rates may very from assumptions and the District may be required to make significant payments in the event of an early termination of an interest rate swap. The District or the counterparty may terminate a swap if the other party fails to perform under the terms of the contract. In the event of termination due to default,the defaulting party will pay to the non-defaulting party the excess (if any) of the sum of the settlement amount and the unpaid amounts owed less the unpaid amounts due from the non-defaulting party. Each swap may be terminated by the District if the counteryarty's credit quality rating falls below"AA"by Standard& Poor's or"Aa3 by Moody's Investors Service. If a swap is terminated, the related series of certificates of participation would no longer carry a synthetic interest rate. The District believes that if any such an event were to occur, it would not have a material adverse impact on its financial position. As of June 30, 2006, the District was not exposed to credit risk associated with such swaps because each swap had a negative fair value. However,should interest rates change,and the fair value of the swap become positive, the District would be exposed to credit risk in the amount of the swap's fair value. Neither swap will expose the District to basis risk because the variable-rate interest paid to the certificate holders is equal to the variable-rate interest earned on the notional amount of the swap. Net payments under the terms of the interest rate swap agreements constitute Senior Obligations under the Master Agreement and are on a parity with the District's payment obligations with respect to the Certificates. Likewise, termination payments under the interest rate swap agreements would be payable on a parity with the District's payment obligations with respect to the Certificates. For more information regarding the District's interest rate swaps as of June 30,2006,see Notes 4 and 5 to the Comprehensive Annual Financial Report of the Orange County Sanitation District for Fiscal Year Ended June 30,2006 set forth in Appendix A. Anticipated Financings As projected out to 2020, the CIP cash flow needs will be approximately $2.3 billion in future wastewater treatment improvements and in future collection system capital improvements, with average annual expenditures of nearly $300 million projected over the next five years, and with the bulk of the construction scheduled during the next ten years. Sixty percent of these improvements are expected to be funded through current revenues and the balance will be funded through the issuance of new debt. In Fiscal Year 2007-08 the District expects to incur Additional Senior Obligations evidencing principal in an aggregate amount of approximately$300 million. OHS W.t2601844184 41756-11 MKH/MKH 48 Direct and Overlapping Bonded Debt The Table 17 below presents the aggregate direct and overlapping bonded debt of the District as of June 30,2006. Table 17 Direct and Overlapping Bonded Debt of the District as of June 30,2006 ORANGE COUNTY SANITATION DISTRICT 2005-06 Assessed Valuation(Land&Improvements Only): $241,949,995.272 Redevelopment Incremental Valuation: 26,265,003,329 Adjusted Assessed Valuation: $215,584.991,943 OVERLAPPING TAX AND ASSESSMENT DEBT (Based on redevelopment adjusted all property assessed valuation of$221,268,184,347): %Amilicable Debt 6/30/06 Orange County Teeter Plan Obligations 71.832% $ 88,874,142 Metropolitan Water District of Southern California 15.119 58,898,332 Coast Community College District 99.525 102,230,952 North Orange County Joint Community College District 96.872 234,666.609 Rancho Santiago Community College District 98.200 206,906.591 Brea-Olinda and Laguna Beach Unified School Districts 97.858& 29,019,956 10.973 Newport-Mesa Unified School District 100.000 104,770,000 Placentia-Yorbe Linda Unified School District 98.689 95.793.033 Saddleback Valley Unified School District 11.256 109594.147 Santa Ana Unified School District 100.000 135,923,197 Tustin Unified School District School Facilities Improvement District No.2002-1 99.844 28,353,349 Anaheim Union High School District 100.000 128.308,955 Fullerton Joint Union High School District 90.440 57,187,844 Huntington Beach Union High School District 99.013 202,440.786 School Districts 97.608-100 200.236,997 City of Anaheim 99.100 6.114,470 Irvine Ranch Water District Improvement Districts Various 160,422,350 Rossmoor Community Services District Special Tax Obligations 100.000 715.000 Bonita Canyon Community Facilities District No.98.1 100.000 43,615.000 Irvine Unified School District Community Facilities District No.86.1 100.000 277,245,000 Tustin Unified School District Community Facilities District No.88-1 and 97-1 100.000 161,322,675 Orange County Community Facilities District No.87-4 99.974 66.537A33 Other Community Facilities Districts Various 278,029.299 Orange County Assessment Districts 100.000 115,918.296 City of Irvine 1915 Act Bonds 100.000 735,464,169 City of Tustin 1915 Act Bonds 100.000 59,039.000 Other 1915 Act Bonds 100.000 27,508,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $3,616.135,561 (continued) OHS WM26018441&4 41758-11 K4KH/MKH 49 (continued from previous page) DIRECT AND OVERLAPPING GENERAL FUND DEBT: %Aoelicable Debt 6130/06 Orange County General Fund Obligations 71.832% $ 452,557,403 Orange County Pension Obligations 71.832 71,628.211 Orange County Board of Education Certificates of Participation 71.832 14.237,102 Orange County Transit District Authority 71.832 1,774,250 Coast Community College District Certificates of Participation 99.525 6,663,199 South Orange County Community College District Certificates of Participation 34.495 13.380,611 Brea-Olinda Unified School District Certificates of Participation 97.858 30,993,985 Orange Unified School District Certificates of Participation 96.729 50,260,388 Placentia-Yorba Linda Unified School district Certificates of Participation 98.689 85,721,576 Santa Ana Unified School District Certificates of Participation 100.000 44.699,711 Other Unified School District Certificates of Participation Various 25,0669152 Union High School District Certificates of Participation Various 59,509,612 School District Certificates of Participation Various 62,899,163 City of Anaheim General Fund Obligations 99.100 650,376,520 City of Fullerton General Fund Obligations 100.000 32,330.9193 City of Huntington Beach General Fund and Judgment Obligations 99.969 85.206,488 City oflrvine General Fund Obligations 100.000 37,170,000 City of Santa Ana General Fund Obligations 100.000 128,149,066 Other City General Fund Obligations Various 180.668,998 Orange County Sanitation District Certificates of Participation 100,000 130,370,000 Irvine Ranch Water District Certificates of Participation 89,144 39,401,648 Municipal Water District of Orange County Water Facilities Corporation 66.566 18,7749940 Yorba Linda County Water District Certificates of Participation 97.697 10.038,367 Orange County Fire Authority 49.823 8,305,494 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $2,240,072,777 Less: Orange County Transit District Authority(80%self-supporting) 1,419,400 City of Anaheim self-supporting obligations 620,579,172 Other City self-supporting obligations 9,094,147 MWDOC Water Facilities Corporation(100%self-supporting) 18,774,940 TOTAL NET OVERLAPPING GENERAL FUND DEBT $19590,2059119 GROSS COMBINED TOTAL DEBT $5,856,208,338") NET COMBINED TOTAL DEBT $5,206,340,679 m Percentage of overlapping agency's redevelopment adjusted all property assessed valuation ($221,268,184.347)located within boundaries of the district. �n Excludes tax and revenue anticipation notes,ente rprise erprise revenue,mortgage revenue and tax allocation bonds,non-bonded capital lease obligations and the Certificates. Total Overlapping Tax and Gress Combined Net Combined Ratios to: Assessment Debt Total Debt Total Debt Land and Improvement Assessed Valuation 1.50% 2.72% 2.41% Land Property Assessed Valuation N/A 2.65% 2.35% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6130105:$948.026 Source: California Municipal Statistics,Inc. OHS West:260184418.4 41758-1I h4KHINIKH 50 THE CORPORATION The Corporation was organized June 19, 2000 as a nonprofit public benefit corporation pursuant to the Nonprofit Public Corporation law of the State. The Corporation's purpose is to render assistance to the District in its acquisition of equipment, real property and improvements on behalf of the District. Under its articles of incorporation,the Corporation has all powers conferred upon nonprofit public benefit corporations by the laws of the State,provided that it will not engage in any activity other than that which is necessary or convenient for,or incidental to the purposes for which it was formed. The Corporation is a separate legal entity from the District It is governed by a twenty-five member Board of Directors. The Corporation has no employees. All staff work is performed by employees of the District. The members of the Corporation's Board of Directors are the Board of Directors of the District. The District's Director of Finance and Administrative Services and other District employees are available to provide staff support to the Corporation. The Corporation has not entered into any material financing arrangements other than those referred to in this Official Statement. Further information concerning the Corporation may be obtained from the Orange County Sanitation District office at 10844 Ellis Avenue, Fountain Valley, California, 92708-7018. LIMITATIONS ON TAXES AND REVENUES Article XIIIA of the California Constitution On June 6, 1978, California voters approved Proposition 13 ("Proposition 13'), which added Article XIIIA to the State Constitution ("Article XIIIA"). Article XIIIA, as amended, limits the amount of any ad valorem tax on real property to one percent of the full cash value thereof,except that additional ad valorem taxes may be levied to pay debt service on (i)indebtedness approved by the voters prior to July 1, 1978,(ii)(as a result of an amendment to Article XIIIA approved by State voters on June 3, 1986) on bonded indebtedness for the acquisition or improvement of real property which has been approved on or after July 1, 1978 by two-third of the voters on such indebtedness, and (iii) bonded indebtedness incurred by a school district or community college district for the construction, reconstruction, rehabilitation or replacement of school facilities or the acquisition or lease of real property for school facilities, approved by 55% of the voters of the district, but only if certain accountability measures are included in the proposition. Article XIIIA defines fall cash value to mean "the county assessor's valuation of real property as shown on the 1975-76 tax bill under `full cash value," or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment" The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2%per year or to reflect a reduction in the consumer price index or comparable data for the area under the taxing jurisdiction, or reduced in the event of declining property values caused by substantial damage, destruction, or other factors. Legislation enacted by the State Legislature to implement Article XIIIA provides that notwithstanding any other law,local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above. Legislation Implementing Article XIIIA Legislation has been enacted and amended a number of times since 1979 to implement Article XIIIA. Under current law,local agencies are no longer permitted to levy directly any property tax(except OHS Wnr.26018441&4 41759-11 htx14/MKH 51 x i II levied the County to pay voter-approved indebtedness). The one percent property to s automatically by and distributed according to a formula among taxing agencies. The formula apportions the tax roughly in proportion to the relative shares of taxes levied prior to 1989. Increases of assessed valuation resulting from reappraisals of property due to new construction, change in ownership or from the two percent annual adjustment are allocated among the various jurisdictions in the"taxing area"based upon their respective"situs." Any such allocation made to a local agency continues as part of its allocation in future years. Beginning in the 1981-82 fiscal year, assessors in the State no longer record property values on tax rolls at the assessed value of 25%of market value which was expressed as$4 per$100 assessed value. All taxable property is now shown at full market value on the tax rolls. Consequently, the tax rate is expressed as$1 per$100 of taxable value. All taxable property value included in this Official Statement is shown at 100% of market value (unless noted differently) and all tax rates reflect the $1 per $100 of taxable value. Article XIIIB of the California Constitution An initiative to amend the State Constitution entitled"Limitation of Government Appropriations" was approved on September 6. 1979, thereby adding Article XIIIB to the State Constitution ("Article XIIIB"). Under Article XIIIB,the State and each local governments] entity has an annual "appropriations limit" and is not permitted to spend certain moneys that are called"appropriations subject to limitation" (consisting of tax revenues, state subventions and certain other funds) in an amount higher than the appropriations limit. Article XIIIB does not affect the appropriations of moneys that are excluded from the definition of"appropriations subject to limitation,"including debt service on indebtedness existing or authorized as of Janmry 1. 1979, or bonded indebtedness subsequently approved by the voters. In general terns, the appropriations limit is to be based on certain 1978-79 expenditures, and is to be adjusted annually to reflect changes in consumer prices, populations, and services provided by these entities. Among other provisions of Article XIIIB, if these entities' revenues in any year exceed the amounts permitted to be spent.the excess would have to be returned by revising tax rates or fee schedules over the subsequent two years. "Appropriations subject to limitation" are authorizations to spend 'proceeds of taxes," which consist of tax revenues, state subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed"the cost reasonably bome by such entity in providing the regulation, product or service,"but"proceeds of taxes"excludes tax refunds and some benefit payments such as unemployment insurance. No limit is imposed on appropriations of funds which are not -proceeds of taxes," such as reasonable user charges or fees, and certain other non- tax funds. Not included in the Article XIIIB limit are appropriations for the debt service costs of bonds existing or authorized by January 1, 1979. or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government and appropriations for qualified capital outlay projects. The appropriations limit may also be exceeded in certain cases of emergency. The appropriations limit for the District in each year is based on the District's limit for the prior year, adjusted annually for changes in the cost of living and changes in population, and adjusted, where applicable, for transfer of financial responsibility of providing services to or from another unit of government. The change in the cost of living is, at the District's option, either(1)the percentage change in State per capita personal income, or (2)the percentage change in the local assessment roll on nonresidential property. Either test is likely to be greater than the change in the cost of living index, ors wea:26a18UI&4 41758a1 MK ithaH 52 which was used prior to Proposition 111. Change in population is to be measured either within the jurisdiction of the District or the County as a whole. As amended by Proposition I11, the appropriations limit is tested over consecutive two-year periods. Any excess of the aggregate "proceeds of taxes" received by a District over such two-year period above the combined appropriations limits for those two years is to be returned to taxpayers by reductions in tax rates or fee schedules over the subsequent two years. As originally enacted in 1979,the District's appropriations limit was based on 1978-79 authorizations to expend proceeds of taxes and was adjusted annually to reflect changes in cost of living and population (using different definitions, which were modified by Proposition 111). Starting with Fiscal Year 1990-91,the District's appropriations limit was recalculated by taking the actual Fiscal Year 1986-87 limit,and applying the annual adjustments as if Proposition 111 had been in effect. The District does not anticipate that any such appropriations limitations will impair its ability to make Installment Payments as required by the Installment Purchase Agreement. Proposition 1A Proposition IA ("Proposition IA"), proposed by the Legislature in connection with the 2004-05 Budget Act and approved by the voters in November 2004, restricts State authority to reduce major local tax revenues such as the tax shifts permitted to take place in Fiscal Years 2004-05 and 2005-06. Proposition IA provides that the State may not reduce any local sales tax rate, limit existing local government authority to levy a sales tax rate or change the allocation of local sales tax revenues, subject to certain exceptions. Proposition I A generally prohibits the State from shifting to schools or community colleges any share of property tax revenues allocated to local governments for any fiscal year,as set forth under the laws in effect as of November 3, 2004. Any change in the allocation of property tax revenues among local governments within a county must be approved by two-thirds of both houses of the Legislature. Proposition I provides, however, that beginning in Fiscal Year 2008-09, the State may shift to schools and community colleges up to 8%of local government property tax revenues,which amount must be repaid, with interest, within three years, if the Governor proclaims that the shift is needed due to a severe state financial hardship, the shift is approved by two thirds of both houses and certain other conditions are met. The State may also approve voluntary exchanges of local sales tax and property tax revenues among local governments within a county. Proposition IA also provides that if the State reduces the vehicle license fee ("VLF") rate currently in effect, 0.65% of vehicle value, the State must provide local governments with equal replacement revenues. Further, Proposition 1A requires the State, beginning July 1, 2005, to suspend State mandates affecting cities, counties and special districts, excepting mandates relating to employee rights, schools or community colleges, in any year that the State does not fully reimburse local governments for their costs to comply with such mandates. Proposition 62 On November 4, 1986, California voters adopted Proposition 62, a statutory initiative which amended the California Government Code by the addition of Sections 53720-53730. Proposition 62 requires that (i)any local tax for general governmental purposes(a"general tax")must be approved by a majority vote of the electorate; (ii)any local tax for specific purposes(a"special tax") must be approved by a two-thirds vote of the electorate; (iii) any general tax must be proposed for a vote by two-thirds of the legislative body; and (iv) proceeds of any tax imposed in violation of the vote requirements must be deducted from the local agency's property tax allocation. Provisions applying Proposition 62 OHSwea:260194418.4 41759-11 MKH/IVIKH 53 retroactively from its effective date to 1985 are unlikely to be of any continuing importance;certain other restrictions were already contained in the Constitution. Most of the provisions of Proposition 62 were affirmed by the 1995 California Supreme Court decision in Santa Clara County Local Transportation Authority v. Guardino, which invalidated a special sales tax for transportation purposes because fewer than two-thirds of the voters voting on the measure had approved the tax. The District has not imposed any taxes subject to the provisions of Proposition 62 and believes that it will not impair its ability to make its Installment Payments as required by the Installment Purchase Agreement. The requirements of Proposition 62 have generally been superseded by the enactment of Article XIIIC of the Constitution(Proposition 218)in 1996. Article XIIIC and Article XIIID of the California Constitution Proposition 218, a State ballot initiative known as the "Right to Vote on Taxes Act," was approved by the voters on November 5, 1996. The initiative added Articles XIIIC and XIIID to the Califomia Constitution,creating additional requirements for the imposition by most local governments of "general taxes,""special taxes,""assessments,""fees,"and"charges." Proposition 218 became effective, pursuant to its terms, as of November 6, 1996. although compliance with some of its provisions was deferred until July 1, 1997, and certain of its provisions purport to apply to any tax imposed for general governmental purposes(i.e., "general taxes") imposed,extended or increased on or after January 1, 1995 and prior to November 6, 1996. Article XIIID imposes substantive and procedural requirements on the imposition, extension or increase of any"fee" or"charge"subject to its provisions. A "fee" or"charge" subject to Article XIIID includes any levy, other than an ad valorem tax, special tax or assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership. Article XIIID prohibits, among other things, the imposition of any proposed fee or charge, and, possibly, the increase of any existing fee or charge, in the event written protests against the proposed fee or charge are presented at a required public hearing on the fee or charge by a majority of owners of the parcels upon which the fee or charge is to be imposed. Except for fees and charges for water, sewer and refuse collection services, the approval of a majority of the property owners subject to the fee or charge,or at the option of the agency,by a two-thirds vote of the electorate residing in the affected area, is required within 45 days following the public hearing on any such proposed new or increased fee or charge. The California Supreme Court decisions in Richmond v. Shasta Community Services District, 32 Cal. 4th 409 (2004) ("Richmond'), and Bighorn- Desert View Water Agency v. Verjil (published July 24, 2006) ("Bighorn") have clarified some of the uncertainty surrounding the applicability of Section 6 of Article XIIID to service fees and charges. In Richmond, the Shasta Community Services District charged a water connection fee, which included a capacity charge for capital improvements to the water system and a fire suppression charge. The Court held that both the capacity charge and the fire suppression charge were not subject to Article XIIID because a water connection fee is not a property-related fee or charge because it results from the property owner's voluntary decision to apply for the connection. In both Richmond and Bighorn, however, the Court stated that a fee for ongoing water service through an existing connection is imposed "as an incident of property ownership" within the meaning of Article XIIID, rejecting, in Bighorn, the water agency's argument that consumption-based water charges are not imposed "as an incident of property ownership"but as a result of the voluntary decisions of customers as to how much water to use. Article XIIID also provides that"standby charges"are considered"assessments"and must follow the procedures required for "assessments" under Article XIIID and imposes several procedural requirements for the imposition of any assessment, which may include (1) various notice requirements, including the requirement to mail a ballot to owners of the affected property; (2) the substitution of a property owner ballot procedure for the traditional written protest procedure,and providing that"majority OHS wen:260184419.4 41758-11 MKH/KIKH 54 protest" exists when ballots (weighted according to proportional financial obligation) submitted in opposition exceed ballots in favor of the assessments; and (3) the requirement that the levying entity "separate the general benefits from the special benefits conferred on a parcel"of land. Article XIIID also precludes standby charges for services that are not immediately available to the parcel being charged. Article XIIID provides that all existing, new or increased assessments are to comply with its provisions beginning July 1, 1997. Existing assessments imposed on or before November 5, 1996, and "imposed exclusively to finance the capital costs or maintenance and operations expenses for [among other things] water" are exempted from some of the provisions of Article XIIID applicable to assessments. Article XIIIC extends the people's initiative power to reduce or repeal existing local taxes, assessments,fees and charges. This extension of the initiative power is not limited by the terms of Article XIIIC to fees, taxes, assessment fees and charges imposed after November 6, 1996 and absent other authority could result in retroactive reduction in any existing taxes, assessments, fees or charges. In Bighorn, the Court concluded that under Article XIIIC local voters by initiative may reduce a public agency's water rates and delivery charges. The Court noted, however, that it was not holding that the authorized initiative power is free of all limitations, stating that it was not determining whether the electorate's initiative power is subject to the public agency's statutory obligation to ad water service charges at a level that will "pay the operating expenses of the agency, ... provide for repairs and depreciation of works,provide a reasonable surplus for improvements,extensions,and enlargements,pay the interest on any bonded debt, and provide a sinking or other fund for the payment of the principal of such debt as it may become due." The District implemented a five-year plan beginning in Fiscal Year 2002-03 which included a rate increase of$7.50 per year, or 9.40/0, for all ratepayers to $87.50 per year. In May 2003, the Board approved consideration of a 15% rate increase a year, for each year, over the than following five years, upon 2/3 vote of the Board after conducting a noticed public hearing in compliance with Article XIIID. This level of increase was considered necessary to provide needed capital improvements, to cover additional treatment and disinfection costs, and to minimize rate increases over an extended period of time. On July 2, 2003, the Board adopted Ordinance No. OCSD-20 increasing sanitary sewer service charges for all single family and multi-family residential units as well as most commercial and industrial properties. The Ordinance was adopted by a 2/3 vote of the Board as required under law after conducting a noticed public hearing in compliance with all laws. The Ordinance increases the amount of the annual charges by approximately 15% per year for each of the following five years, commencing with Fiscal Year 2003-04, thereby raising the single family residence user rate from the than current $87.50 to $100.00, $115.00, $132.00, $152.00,and$175.00 annually. The Ordinance discounted by 5%the annual increases which were the subject of the required protest hearings on the fee increase as described above. After the completion of the CIP Validation Study for Fiscal Year 2005.06 that increased its ten year CIP cash flow projects to $2.2 billion, or an average of$220 million per year, the Board adopted Ordinance No. OCSD-26 increasing the Fiscal Year 2005-06 single family residential rate 31%, from $115 to $15, for such year. In May 2006, the Board adopted Ordinance No. OCSD-30B increasing the Fiscal Year 2006.07 single family residential rate 9.8%, from$151.00 to$165.80 for such year, except those located in Revenue Area 14. These increases represented the increase permitted under the protest hearings on the fee increase which was held in 2003. In April 2007, the Board began its considerations towards increasing sanitary sewer service charges for all single family and multi-family residential units as well as most commercial and industrial properties. Any such increases are subject to approval by ordinance adopted by a 2/3 vote of the Board after conducting a noticed public hearing in compliance with all laws. See"DISTRICT REVENUES— Sewer Service Charges"herein. OHS Wda260184418.4 41738-11 R4MMXH 55 Pursuant to the Master Agreement,the District will,to the extent permitted by law,fix,prescribe and collect fees and charges for the services of the Wastewater System which will be at least sufficient to yield during each Fiscal Year(a)Net Revenues equal to 125%of Debt Service on Senior Obligations for such Fiscal Year, and (b)Net Operating Revenues equal to 100% of Debt Service on all Obligations for such Fiscal Year.The District may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but will not reduce the fees and charges then in effect unless the Revenues and Net Revenues from such reduced fees and charges will at all times be sufficient to meet the requirements of the Master Agreement. In the event that service charges are determined to be subject to Article XIIID,and proposed increased service charges cannot be imposed as a result of a majority protest,such circumstances may adversely effect the ability of the District to generate revenues in the amounts required by the Master Agreement, and to make Installment Payments as provided in the Installment Purchase Agreement. No assurance may be given that Articles XIIIC and XIIID will not have a material adverse impact on Net Revenues. Other Initiative Measures Articles XIIIA, XIIIB, XIIIC and XIIID were adopted pursuant to Celifomia's constitutional initiative process. From time to time other initiative measures could be adopted by California voters, placing additional limitations on the ability of the District to increase revenues. LEGAL MATTERS The validity of the Certificates and certain other legal matters are subject to the approving opinion of Orrick, Herrington & Sutcliffe LLP, Los Angeles, California, Special Counsel to the District. A complete copy of the proposed form of Special Counsel opinion is contained in Appendix E hereto. Special Counsel, in its capacity as Special Counsel to the District, undertakes no responsibility for the accuracy, completeness or fsimess of this Official Statement. Certain legal matters will be passed upon for the District and the Corporation by Woodruff, Spradlin& Smart, a Professional Corporation,Orange, California and for the District by Orrick, Herrington & Sutcliffe LLP as Disclosure Counsel to the District. FINANCIAL ADVISOR The District has retained Public Resources Advisory Group as financial advisor(the "Financial Advisor") in connection with the execution and delivery of the Certificates. The Financial Advisor has not been engaged, nor have they undertaken,to audit authenticate or otherwise verify the information set forth in the Official Statement, or any other related information available to the District, with respect to accuracy and completeness of disclosure of such information. The Financial Advisor has reviewed the Official Statement but makes no guaranty, warranty or other representation respecting accuracy and completeness of the information contained in the Official Statement. ABSENCE OF LITIGATION There is no action, suit,proceeding, inquiry or investigation,at law or in equity,before or by any court, regulatory agency, public board or body, pending or, to the best knowledge of the District, threatened against the District affecting the existence of the District or the titles of its directors or officers to their offices or seeking to restrain or to enjoin the sale or delivery of the Certificates,the application of the proceeds thereof in accordance with the Trust Agreement, or in any way contesting or affecting the validity or enforceability of the Certificates,the Trust Agreement,the Master Agreement, the Installment Purchase Agreement or any action of the District contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement, or contesting the powers of the OHS Wat36a1W]&4 41759-11 FffiWAMH 56 District or its authority with respect to the Certificates or any action of the District contemplated by any of said documents,nor,to the knowledge of the District is there any basis therefor. There is no action, suit,proceeding, inquiry or investigation,at law or in equity,before or by any court, regulatory agency, public board or body pending or, to the best knowledge of the District, threatened against the District contesting or affecting the ability of the District to collect amounts from which Installment Payments are payable, or which would have a material adverse effect on the District's ability to make Installment Payments. FINANCIAL STATEMENTS The basic financial statements of the District included in Appendix A to this Official Statement have been audited by Mayer Hoffman McCann P.C.,independent certified public accountants. In January 2006 Mayer Hoffinan McCann P.C.merged the District's former auditors,Conrad and Associates,L.L.P., into its national practice. See APPENDIX A—"COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FOR FISCAL YEAR ENDED JUNE 30, 2006" herein. The report issued for the year ended June 30, 2006, received the Government Finance Officer's Association Certificate of Achievement for "Excellence in Financial Reporting" for the 13th consecutive year. The audited financial statements,including the footnotes thereto,should be reviewed in their entirety. Mayer Hoffman McCann P.C. has consented to the inclusion of its report as Appendix A but has not undertaken to update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by Mayer Hoffinan McCann P.C. with respect to any event subsequent to its report dated August 31,2006. TAX MATTERS In the opinion of Orrick, Herrington& Sutcliffe LLP("Special Counsel"),based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants,interest components evidenced by the Certificates is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the"Code")and is exempt from State of California personal income taxes. Special Counsel is of the fimther opinion that interest components evidenced by the Certificates are not a specific preference item for purposes of the federal individual or corporate altemative minimum taxes, although Special Counsel observes that such interest is included in adjusted current earnings when calculating corporate altemative minimum taxable income. A complete copy of the proposed form of opinion of Special Counsel is set forth in Appendix E hereto. To the extent the issue price of any maturity of the Certificates is less than the amount to be paid at maturity of such Certificates(excluding amounts stated to be interest and payable at least annually over the term of such Certificates),the difference constitutes"original issue discount,"the accrual of which,to the extent properly allocable to each Beneficial Owner thereof, is treated as interest components evidenced by the Certificates which is excluded from gross income for federal income tax purposes and State of California personal income taxes. For this purpose, the issue price of a particular maturity of the Certificates is the first price at which a substantial amount of such maturity of the Certificates is sold to the public (excluding bond houses, broken, or similar persons or organizations acting in the capacity of underwriters,placement agents or wholesalers). The original issue discount with respect to any maturity of the Certificates accrues daily over the term to maturity of such Certificates on the basis of a constant interest rate compounded semiannually (with straight-line interpolations between compounding dates). The accming original issue discount is added to the adjusted basis of such Certificates to determine taxable gain or loss upon disposition (including sale, prepayment, or payment on maturity) of such OHS WW260184418.4 41758-11 NWJ41Ir1KH 57 Certificates. Beneficial Owners of the Certificates should consult their own tax advisors with respect to the tax consequences of ownership of Certificates with original issue discowt,including the treatment of Beneficial Owners who do not purchase such Certificates in the original offering to the public at the first price at which a substantial amount of such Certificates is sold to the public. Certificates purchased,whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) ("Premium Certificates") will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Certificates, the interest components evidenced by which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received and a Beneficial Owner's basis in a Premium Certificate,will be reduced by the amount of amortizable bond premium properly allocable to such Beneficial Owner. Beneficial Owners of Premium Certificates should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances. The Code imposes various restrictions,conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest components evidenced by obligations such as the Certificates. The District has made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest components evidenced by the Certificates will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest components evidenced by the Certificates being included in gross income for federal income tax purposes, possibly from the date of original delivery of the Certificates. The opinion of Special Counsel assumes the accuracy of these representations and compliance with these covenants. Special Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Special Counsel's attention after the date of delivery of the Certificates may adversely affect the value of. or the tax status of interest components evidenced by,the Certificates. Accordingly, the opinion of Special Counsel is not intended to, and may not, be relied upon in connection with any such action,events or masers. Although Special Counsel is of the opinion that interest components evidenced by the Certificates are excluded from gross income for federal income tax purposes and are exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of interest components evidenced by, the Certificates may otherwise affect a Beneficial Owner's federal, state or local tax liability. The nature and cx1cm of these other tax consequences depends upon the particular tax status of the Beneficial Owner or the Beneficial Owner's other items of income or deduction. Special Counsel expresses no opinion regarding any such other tax consequences. Future legislation, if enacted into law, or clarification of the Code may cause interest components evidenced by the Certificates to be subject, directly or indirectly,to federal income taxation,or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such future legislation or clarification of the Code may also affect the market price for, or marketability of, the Certificates. Prospective purchasers of the Certificates should consult their own tax advisers regarding any pending or proposed federal tax legislation, as to which Special Counsel expresses no opinion. The opinion of Special Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Special Counsel's judgment as to the proper treatment of the Certificates for federal income tax purposes. It is not binding on the Internal Revenue Service ("IRS")or the courts. Furthermore, Special Counsel cannot give and has not given any opinion or assurance about the future activities of the District, or about the effect of future changes in the Code, OHS Wm:26a1MI&4 41759-I I MKH/M1MH 58 the applicable regulations,the interpretation thereof or the enforcement thereof by the IRS. The District has covenanted however,to comply with the requirements of the Code. Special Counsel's engagement with respect to the Certificates ends with the delivery of the Certificates,and, unless separately engaged, Special Counsel is not obligated to defend the District or the Beneficial Owners regarding the tax-exempt status of the Certificates in the event of an audit examination by the IRS. Under current procedures, parties other than the District and its appointed counsel, including the Beneficial Owners, would have little, if any, right to participate in the audit examination process. Moreover, because achieving judicial review in connection with an audit examination of tax-exempt bonds is difficult, obtaining an independent review of IRS positions with which the District legitimately disagrees, may not be practicable. Any action of the IRS, including but not limited to selection of the Certificates for audit, or the course or result of such audit, or an audit of bonds presenting similar tax issues may affect the market price for,or the marketability of,the Certificates, and may cause the District or the Beneficial Owners to incur significant expense. VERIFICATION OF MATHEMATICAL COMPUTATIONS Causey Demgen & Moore Inc., certified public accountants (the "Verification Agent"), will deliver a report stating that the firm has verified the accuracy of mathematical computations concerning (a)the adequacy of the maturing principal amounts of and interest earned on the Government Obligations initially deposited in the Escrow Fund to provide for the payment of the interest due on each of the Refunded Certificates to and including the Redemption Date, and to pay on the Redemption Date the principal or redemption price thereof, and (b) the computations of yield on the Certificates and of investments in the Escrow Fund. The report of the Verification Agent will include the statement that the scope of their engagement was limited to verifying the mathematical accuracy of the computations contained in such schedules provided to them and that they have no obligations to update their report because of event occurring, or data or information coming to their attention,subject to the date of their report. CONTINUING DISCLOSURE The District has covenanted for the benefit of holders and beneficial owners of the Certificates(a) to provide certain financial information and operating data(the "Annual Report")relating to the District and the property in the District not later than eight(8)months after the end of the District's Fiscal Year (which currently would be March 1), commencing with the report for the 2006.07 Fiscal Year,and(b)to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the Trustee on behalf of the District, with each Nationally Recognized Municipal Securities Information Repository and with each State Repository, if any. The notices of material events will be filed by the Trustee on behalf of the District with the Municipal Securities Rulemaking Board and with each State Repository,if any. The specific nature of the information to be contained in the Annual Report or the notices of material events is set forth in the Continuing Disclosure Agreement. See"APPENDIX E —FORM OF CONTINUING DISCLOSURE AGREEMENT." These covenants have been made in order to assist the Initial Purchaser in complying with S.E.C. Rule 15c2-12(b)(5)(the"Rule"). The District has not failed to comply in all material respects with any previous undertaking with respect to the Rule to provide annual reports or notices of material events. RATINGS The Certificates are rated" " " ," and " " by Fitch Ratings, Moody's Investors Service and Standard & Poor's Ratings Services, a Division of The McGraw Hill Companies, Inc., respectively. OHS We 260194418.4 41759-11 bWJJIM a 59 I Such ratings reflect only the views of the rating agencies, and do not constitute a recommendation to buy, sell or hold the Certificates. Explanation of the significance of such ratings may be obtained only from the respective organizations at: Fitch Ratings, One State Street Plaza, New York, New York 10004; Moody's Investors Service, 99 Church Street, New York, New York 10017; and Standard & Poor's Ratings Group, 55 Water Street, New York New York 10041. There is no assurance that any such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by the respective rating agencies, if in the judgment of any such rating agency circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Certificates. PURCHASE AND REOFFERING (the "Initial Purchaser") has purchased the Certificates from the District at a competitive sale at an aggregate purchase price of $ (representing the aggregate principal amount of the Certificates, less a net original issue discount of$ and less an Initial Purchaser's discount of$ ......). The public offering prices may be changed from time to time by the Initial Purchaser. The Initial Purchaser may offer and sell Certificates to certain dealers and others at prices lower than the offering prices shown on the cover page hereof. MISCELLANEOUS Included herein are brief summaries of certain documents and reports, which summaries do not purport to be complete or definitive, and reference is made to such documents and reports for full and complete statements of the contents thereof. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the District and the purchasers or Owners of any of the Certificates. The execution and delivery of this Official Statement has been duly authorized by the District. ORANGE COUNTY SANITATION DISTRICT By: Chair of the Board of Directors OHS ww:z6sisars.4 41758-11 t aarmacH 60 APPENDIX A COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FOR FISCAL YEAR ENDED JUNE 30,2006 OHS WW260184418.4 4175&11 bOMIKIKH A-1 APPENDIX B THE COUNTY OF ORANGE-ECONOMIC AND DEMOGRAPHIC INFORMATION The County is bordered on the north by Los Angeles County, on the east by Riverside County,on the southeast by San Diego County and on the west and southwest by the Pacific Ocean. Approximately 42 miles of ocean shoreline provide beaches.marinas and other recreational areas for use by residents and visitors. The climate in the County is mild,with an average annual rainfall of 13 inches. Population The County is the third most populous county in the State and the sixth most populous in the nation. During the period 1997 through 2006, the population of the County increased by approximately 13.3%,compared to 13.3%for the State and 10.6%for the United Slates. TABLE B-1 COUNTY OF ORANGE,STATE OF CALIFORNIA AND UNITED STATES POPULATION GROWTH United States Year Orange Countvtt/ State ofCaliforniajll of American) 1997 2,672,800 32,452,000 267,783,607 1998 2.724,500 32,862,000 270,248,003 1999 2.776,100 33,417.000 272,690,813 2000 2,863,706 34,098,740 282.216,592 2001 2.918.791 34,784,392 285.226,284 2002 2.963.394 35.392,960 288.125,973 2003 3,005.043 35.990,107 290,796,023 2004 3,037,949 36,522,026 293,638,158 2005 3,062.275 36.981.931 296.507.061 2006 3,083.894 37.444,385 299,398.484 r as of of each year. 1'r as of July 1 of each year. Source: Orange Corley and Stale of California Statistics-California Slate Department of Finance.Deniographtc Research Unit. Uniled Slates Statistics—Population Estimates Program,Population Division, U.S.Census Bureau. OHS Wea 2601W184 41758-11 MKHMMH B-1 R Public Sebools(Elementary and Secondary) Public instruction in the County is provided by twelve elementary school districts, three high school districts and twelve unified (combined elementary and high school) districts. For the 2005-06 academic year, the largest district, the Santa Ana Unified School District, had 59,310 students enrolled. Public school enrollment for the academic calendar years 2001-02 through 2005-06 is presented in Table B-2. TABLE B-2 COUNTY OF ORANGE PUBLIC SCHOOL ENROLLMENT 02 01-02 2002-03 2003.04 2004-05 20054 Grade Level K-8 358,608 361,194 360,996 354,941 350,096 9-12 144,743 150,921 154•468 158,903 160,018 Total Enrollment 50.351 s= 515m St3.7.4 051 .119 Source: Cal fornla Depanmew oJEduemian,Eduemiorwl Demographics Unit. Colleges and Universities The County has a number of top-rated, college-level educational institutions, including the University of California at Wine and California State University at Fullerton, several private colleges, universities and law schools and four community college districts. OHS W nt 260184418.4 41758-11 MKHIMKH B-2 ' Employment The following table summarizes the historical numbers of workers in the County over the period 2001 through 2005 by industry. TABLE B-3 COUNTY OF ORANGE INDUSTRY EMPLOYMENT AND LABOR FORCE—ANNUAL AVERAGE 2001 2002 2003 2004 2005 Farm 7.100 7300 7.200 6.700 5,300 Natural Resources and Mining 600 600 500 600 700 Construction 80,700 79.200 83,700 92,200 99,300 Manufacturing 208,500 190,800 193.900 183,500 182,700 Wholesale Trade 83,900 82,400 83.200 82,400 83,000 Retail Trade 150,100 151.400 152.800 153,200 157,100 Transportation.Warehousing and 30.400 28.700 29.000 29.200 28,900 Utilities Information 40.200 36.800 35.200 33,800 32,800 Financial Activities 105.900 110,200 122.200 132.300 138.200 Professional and Business Services 248,400 248,800 252.600 254,900 267,000 Educational and Health Services 114.600 118,400 126300 151,000 133,300 Leisure and Hospitality 154,300 155,400 15&600 162.900 164,400 Other Services 45.200 45,900 46.700 47,400 48,200 Government 150, 155 100100 15�_200 153AOO 155.3 00 Total All industries(" L420 W Lglj,_Q90 431. B.L03 L 512 800 I,i4l___,$� t t Da-�d doe to rounding. Source: Cali/araia Emplovatent Development D"nmem. Major Employers TABLE Bd COUNTY OF ORANGE MAJOR EMPLOYERS Employer Name Number of Emplovem Wait Disney Company 20,250 University of California.Irvine 16.374 Baring Company 11,242 St.Joseph Health System 9.482 YUMI Brands Inc. 7,000 AT&T Inc. 6,116 California State University,Fullerton 5,337 Hope Depot Inc. 5200 Memorial Health Services Inc. 4,961 Supervalu Inc. 4,819 Source: Orange Court-Business Jour ml 2007 Book oJLists. OHS WM:260194418.4 41758-11 hMWMKH B-3 Labor Force,Employment and Unemployment Table B-5 summarizes the labor force, employment and unemployment figures over the period 2001 through 2005 for the County and the State. TABLE B-5 COUNTY OF ORANGE AND STATE OF CALIFORNIA LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT YEARLY AVERAGE Unemployment Year and Area Labor Force Employment Unemployment Rate 2001 Orange County 1,513,000 1.452,800 60,200 4.0 California 17.152,100 16,220.000 932,100 5.4 2002 Orange County 1.531.300 1,454.500 76,800 5.0 California 17,330,700 16,168,200 1,162,500 6.7 2003 Orange County 1,557,400 1,482,400 75,000 4.8 California 17.403,900 16.212,200 1,191.300 6.8 2004 Orange County 1.580,800 1,512,800 68.000 4.3 California 17.499,600 16,407.900 1.091.700 6.2 2005 Orange County 1.602,200 1,541,800 60,400 3.8 California 17,695.600 16,746,900 948.700 5.4 Source: Catt(ornia Employmem Development Deparrmenr. OHS Wen:266184418.4 41758-I I MKWhMH B-4 Personal Income Table B-6 sumtnatims the total effective buying income for the County,the State and the United States for 2001 through 2005. TABLE B-6 COUNTY OF ORANGE,STATE OF CALIFORNIA AND UNITED STATES PERSONAL INCOME (In Thousands) Total Median Household Area Effective Buvine Income* Effective Buying Income* 2001 Orange County 62,568,674 53,277 California 650,521,407 43,532 United States 5.303,481,498 38,365 2002 Orange County 60,602,515 49,726 California 647,879,427 42,484 United States 5,340,682,818 38,035 2003 Orange County 63,712,940 50,755 California 674,721,020 42,924 United States 5,466,880,008 38,201 2004 Orange County 66,473,235 51,823 California 705,108,410 43,915 United States 5.692,909,567 39,324 2005 Orange County 67,941,889 53,099 California 720,798,122 44,681 United States 5,894,664,154 40,529 Source: Sales and Marketing Management Sumer of Buying Power"(2001-2004);Demographics USA(2005). "Effective Buying Income."also referred to as`disposable"or"after tat"income,consists of personal income less personal tax and certain von-tax payments. Personal income includes wages and salaies. other labor-related income (such as employer contributions to private pension funds), and certain other income (e.g. proprietor's income; rental income; dividends and interest;pensions:Social Security:unemployment compensation;and imiftte assistance).Deducted from this total are personal rates(federal. gate and local), certain non-tax payments(e.g finm fees and penalties), and personal contributions to a retirement program. OHS Wuc26018441g.4 41758-11 MICHNU(H B-5 Taxable Sales Table B-7 summarizes the annual volume of taxable transactions from 2001 to 2005. TABLE B-7 COUNTY OF ORANGE TAXABLE TRANSACTIONS (In Thousands) Type of Business 2001 2002 2003 2004 2005 Apparel stores group S 1,446572 $1.509.011 S 1,697,120 $ 1,881,882 $ 2,062,892 General merchandise group 4.437-881 4,61&932 4,855,674 5,205,075 5,467,357 Specialty stores group 4.999.099 4,837.212 5,085,612 5,700317 6,029,099 Food stores group 1534244 1551,611 1,574,529 1563.145 1.716,228 Eating and drinking groups 3-749.604 3,894399 4,149,117 4,475,791 4,799,676 Household group 1501595 1,722573 1.985255 2,135,876 2269,650 Building material group 2.157,196 2.275.964 2,480249 2.950,592 3,000,086 Automotive group 7.957,760 8.484604 9,651,049 10,595,091 11293,156 All other retail stores group 739,760 765,523 809,093 944,184 1,046.700 Retail Stores Totals 2851&701 29M6,818 32297,697 35,441,953 37,672,834 Business&Personal Senices 2.673,666 2.615,150 2,699250 2,819,934 2,938,129 All Other Outlets 13.402.947 12.607,199 12530,119 13.420.172 14,452283 TOTAL ALL OUTLETS S1J.595314 $44.969.156 $47517,066 $51,682.059 $55,063246 Son/re: Calijomia Sla/r llnln/M'fgnalr�iat Housing Characteristics The total number of housing units in the County Was estimated by the California State Department of Finance to be 1.013,942 as of January 1,2005. This compares to 1,003,904 reported by the Department of Financc in January 2004.According to California Association of Realtors,the median resale price of single-family dwelling units in Orange County was$704,150 in May 2005. OHS Wel,260184418.4 41758-11 hMWMKH B-6 Building Permits The total valuation of building permits issued in the County reached $4.7 billion in 2006, which represents about a 25% increase relative to 2002. Table B-8 provides a summary of residential building permit valuations and the number of new dwelling units authorized in the County during the period 2002 through 2006. TABLE B-8 COUNTY OF ORANGE BUILDING PERMIT ACTIVITY 2002-06 (In Thousands) 2002 2003 2004 2005 2006 Valuation: Residential $2,328,119 $2,076,977 $2,243,645 $2,100,436 $2,336,324 Non-Residential 1,208,626 L005,547 1,132,846 1,494,755 2.397,248 Total $3,536,746 $3,082,525 $3,376,491 $3,595,191 $4,733,572 New Housing Units: Single Family 6,423 5,565 4,395 4,058 3,121 Multiple Family 5 597 3 746 44.927 3 148 5,219 Total 12,020 9,311 9,322 7,206 8,340 Sources Constmction Industry Research Board. Water Supply Maintaining the County's water supply is the responsibility of the Orange County Water District ("OCWIY), manager of the County's groundwater basin, and the Municipal Water District of Orange County("MWDOC"), the County's largest manager of imported water. More than 60% of the County's water is from local groundwater sources;the rest is imported.The County's natural underground reservoir is sufficient to carry it through temporary shortfall periods, but local supplies alone cannot sustain the present population. Recreation and Tourism The County is a tourist center in Southern California because of the broad spectrum of amusement parks and leisure, recreational and entertainment activities that it offers. These tourist attractions are complimented by the year-round mild climate. Along the County's Pacific Coast shoreline are five state beaches and parks, five municipal beaches and five County beaches. There are two small-craft docking facilities in Newport Harbor, a third located at Sunset Beach and a fourth at Dena Point. Other major recreational and amusement facilities include Disneyland, Disney's California Adventure,Knott's Beny Farm and the Spanish Mission of San Juan Capistrano. Also located within the County are the Anaheim Convention Center, Edison International Field of Anaheim, Honda Center, Orange County Performing Arts Center, Verizon Wireless Amphitheater and the Art Colony at Laguna Beach with its annual art festival. The Anaheim Convention Center is located adjacent to Disneyland. It is situated on 53 acres and OHS Wat:2601VA18.4 41758-11 NOCHNUCH B-7 is one of the largest convention centers on the West Coast. Table B-9 summarizes the number of conventions held in the County,as well as attendance for the period 1997 through 2006. TABLE B-9 COUNTY OF ORANGE CONVENTION ACTIVITY Year Conventions Attendance 1997 431 979,259 1998' 450 750,698 1999' 473 767,689 2000 470 858,593 2001 489 959,000 2002 547 1,008,171 2003 590 1,093,787 2004 666 1,211,476 2005 619 1,113,224 2006 633 1,125,895 Somme:Aaaham✓Orange Count,Vuiror and Cmrvevim Bureau,2006. • A portion of the decrease in 1999 and 1999 brain attendance and expenditure levels of prim yens is attributable to the effects of the construction of Disney's California Adventure theme park and related'm6astrucmre projects. Transportation The County is situated in the most heavily populated area in California and has access to excellent roads, rail, air and sea transportation. The Santa Ana Freeway (Interstate 5) provides direct access to downtown Los Angeles and connects with the San Diego Freeway(Interstate 405) southeast of the City of Santa Ana,providing a direct link with San Diego. The Garden Grove Freeway(State 22)and the Riverside Freeway(State 91)provide east-west transportation, linking the San Diego Freeway, Santa Ana Freeway and the Newport Freeway (State 55). The Newport Freeway provides access to certain beach communities. Drivers in the County have access to two toll road systems of the Transportation Corridor Agencies. The San Joaquin Toll Road (73) runs from Costa Mesa to San Juan Capistrano connecting to the 405 and 5 interstate freeways. The Eastern and Foothill Toll Roads (241, 261 and 133) connect the County to the 91 freeway in the north and the 5 freeway,City of Irvine other South County cities,as well m Laguna Canyon Road. The Transportation Corridor Agencies are planning to extend 241 to connect to the 5 freeway near San Clemente. Rail freight service is provided by the Burlington Northern Santa Fe Railway and the Union Pacific Railroad Company. Amtrak provides passenger service to San Diego to the south, Riverside and San Bernardino Counties to the east, and Los Angeles and Santa Barbara to the north. Metro Link provides passenger service to San Bernardino and Riverside counties to the east,the City of Oceanside to the south and Los Angeles County to the north. Bus service is provided by Greyhound Bus Lines. The Orange County Transportation Authority provides btu service between most cities in the County. Most interstate common carver truck lines operating in California serve the County. The John Wayne Airport, owned and operated by the County, is the only commercial service OHS WM260]Wl8.4 41758-11 WH/MKH B-8 u airport in the County. It is approximately thirty-five miles south of Los Angeles, between the cities of Coast Mesa, Irvine, Newport Beach and Santa Ana. Major airlines, including Alaska, Aloha, America West, American, Continental, Delta, Frontier, Northwest, Southwest and United fly from the airport to major cities throughout the country. In 2004,approximately 9.2 million passengers were served. In 1993, the Defense Base Realignment and Closure Commission directed the closure of Marine Corps Air Station (MCAS) El Toro ("El Toro" or "the base") effective July 1999. The County was designated the Local Redevelopment Authority (LRA) for development of a Community Reuse Plan to guide future development of the former MCAS El Toro. In 1994, Orange County voters narrowly approved Measure A which coned the property for use as an international airport. This touched off a multi year legal and political battle that ended when 58%of Orange County voters approved Measure W, the Orange County Central Park and Nature Preserve Initiative, on March 5, 2002. Measure W repeals Measure A and amends the County General Plan to prohibit aviation uses and limit future development for the unincorporated portion of El Toro to park, open space, nature preserve and education and compatible uses. The day after Measure W was approved, the Department of the Navy issued a press release stating that disposal of the former Base would be accomplished by means of a public auction. The City of Wine responded by developing the Great Park Plan for El Toro. The City of Irvine was approved by the Local Agency formation Commission (LAFCO)to annex to the City the property that comprises the former MCAS El Toro. In light of the passage of Measure W, the County has discontinued all work related to the planning or development of a commercial airport at El Toro. Natural Disasters; Seismic Activity/Fires Natural disasters, including floods, fires and earthquakes, have been experienced in the County. Seismic records spanning the past half century and historic records dating from the 1700s through the early 1900s indicate that the County is a seismically active area.The State Office of Emergency Services indicates that significant tremors are likely to occur in several fault zones during the next 50 to 100 years, including a tremor of 7.0 on the Richter scale within the Newport-Inglewood fault system. The chance of a Richter 7.0 earthquake occurring is estimated to be 1 to 2% in any year. For this reason, local building codes require that structures be designed to withstand the expected accelerations for the area without collapsing or suffering severe structural damage. Maps published by the State Department of Conservation indicate that portions of the County may be subject to the risk of earthquake-induced landslides or liquefaction. OHS w.a:26018"t 8.4 41758-1 1 mxwmKx B-9 v APPENDIX C SUMMARY OF PRINCIPAL LEGAL DOCUMENTS OHS We 260184418.4 41758.11 NIICH/N1KH C-t V APPENDIX D BOOK-ENTRY ONLY SYSTEM The description that follows of the procedures and recordbisping with respect to beneficial ownership interests in the Certificates, payment of principal of and interest on the Cerfcates to Participants or Beinficial Owners, confirmation and transfer of beneficial ownership interests in the Certificates,and other Cert fcmes-related transactions by and between DTC Participants and Beneficial Owners, is based on information furnished by DTC which the District and the Corporation each believes to be reliable, but the District and the Corporation take no responsibility for the completeness or accuracy thereof. The Depository Trust Company—Book-Entry Only System The Depository Trust Company("DTC"),New York NY,will act as securities depository for the securities(the"Certificates").The Certificates will be issued as fully-registered securities registered in the time of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC.One fully-registered Certificate will be issued for the Certificates in the aggregate principal amount of such issue,and will be deposited with DTC. DTC,the"rid's largest depository,is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clewing corporation" within the meaning of the New York Uniform Commercial Code,and a"clewing agency"registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 21 million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market instrument from over 100 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in bum, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Fixed Income Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc,,the American Stock Exchange LLC,and the National Association of Securities Dealers, Inc.Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (''Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at wwwAtcc.com and wwwAtc.org. The information on such websites is not incorporated herein by such reference or otherwise. Purchases of Certificates under the DTC system must be made by or through Direct Participants, which will receive a credit for the Certificates on DTC's records. The ownership interest of each actual purchaser of each Certificate ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are,however,expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the oxs wm:260194419.4 4175s-11 emavamai D-1 a Certificates are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Certificates, except in the event that use of the book-entry system for the Certificates is discontinued. To facilitate subsequent transfers, all Certificates deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of Certificates with DTC and their registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Certificates; DTC's records reflect only the identity of the Direct Participants to whose accounts such Certificates are credited,which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Certificates may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Certificates, such as prepayments,tenders,defaults,and proposed amendments to the security documents. For example, Beneficial Owners of Certificates may wish to ascertain that the nominee holding the Certificates for their benefit has agreed to obtain and transmit notices to Beneficial Owners, in the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them. Prepayment notices shall be sent to DTC. If less than all of the Certificates within an issue are being prepaid, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be prepaid. Neither DTC nor Cede&Co. (nor such other DTC nominee)will consort or vote with respect to the Certificates unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Certificates are credited on the record date (identified in a listing attached to the Omnibus Proxy). Prepayment proceeds, distributions, and dividend payments on the Certificates will be made to Cede&Co.,or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the District or the Trustee on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, nor its nominee,the Trustee, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of prepayment proceeds, distributions, and dividend payments to Cede&Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. OHS We[260184418.4 4175&11 nravmxH D-2 y A Beneficial Owner shall give notice to elect to have its Certificates purchased or tendered, through its Participant,to the Tender or Remarketing Agent, and shall effect delivery of such Certificates by causing the Direct Participant to transfer the Participant's interest in the Certificates, on DTC's records, to the Tender or Remarketing Agent. The requirement for physical delivery of Certificates in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Certificates are transferred by Direct Participants on DTC's records and followed by a book- entry credit of tendered Certificates to the Tender or Remarketing Agent's DTC account. DTC may discontinue providing its services as securities depository with respect to the Certificates at any time by giving reasonable notice to the District or the Trustee. Under such circumstances,in the event that a successor securities depository is not obtained,Certificates are required to be printed and delivered. The District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Certificates will be printed and delivered to DTC. The information in this section conceming DTC and DTC's book-entry system has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the accuracy thereof. Discontinuance of DTC Services In the event(it DTC determines not to continue to act as securities depository for the Certificates, (ii) DTC shall no longer act and give notice to the Trustee of such determination or (iii) the District determines that it is in the best interest of the Beneficial Owners that they be able to obtain Certificates and delivers a written certificate to the Trustee to that effect, DTC services will be discontinued. If the District determines to replace DTC with another qualified securities depository,the District shall prepare or direct the preparation of a new single, separate,fully registered Certificate for each of the maturities of the Certificates,registered in the name of such successor or substitute qualified securities depository or its nominee. If the District fails to identify another qualified securities depository to replace DTC then the Certificates shall no longer be restricted to being registered in the certificate registration books in the time of Cede&Co., but shall be registered in such names as are requested in a certificate of the District, in accordance with the Trust Agreement. All Certificates may be presented for transfer by the Owner thereof, in person or by his attorney duly authorized in writing, at the Principal Office of the Trustee,on the books required to be kept by the Trustee pursuant to the provisions of the Trust Indenture, upon surrender of such Certifications for cancellation accompanied by delivery of a duly executed written instrument of transfer in a form acceptable to the Trustee. The Trustee may treat the Owner of any Certificate as the absolute owner of such Certificate for all purposes, whether or not such Certificate shall be overdue, and the Trustee shall not be affected by any knowledge or notice to the contrary; and payment of the interest and principal evidenced by such Cerlificate shall be made only to such Owner, which payments shall be valid and effectual to satisfy and discharge the liability evidenced by such Certificate to the extent of the sum or sums so paid. Whenever any Certificates shall be surrendered for transfer,the Trustee shall execute and deliver new Certificates representing the same principal amount in Authorized Denominations. The Trustee shall require the payment of any Owner requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer. Certificates may be presented for exchange at the Principal Office of the Trustee for a like aggregate principal amount of Certificates of other Authorized OmS Wesr260184418.4 41758-11 MKIt� D-3 9 Denominations. The Trustee shall require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. The Trustee shall not be required to transfer or exchange any Certificate during the period in which the Trustee is selecting Certificates for prepayment, nor shall the Trustee be required to transfer or exchange any Certificate or portion thereof selected for prepayment from and after the date of mailing the notice of prepayment thereof. OHS Wevr2601844184 4175&11 MKWMKH D-4 APPENDIX E FORM OF APPROVING OPINION OF SPECIAL COUNSEL Upon the execution and delivery of the Cerificates, Orrick, Herrington & Sutclf$e LLA Los Angeles, California, Special Counsel to the District, proposes to render its final approving opinion with respect to the Cerrfcates in substantially the followingform: [Date of Delivery] Orange County Sanitation District 10844 Ellis Avenue Fountain Valley,California Orange County Sanitation District Refunding,Certificates of Participation.Series 2007A (Final Opinion) Ladies and Gentlemen: We have acted as special counsel to the Orange County Sanitation District (the "District') in connection with the execution and delivery of Orange County Sanitation District Refunding Certificates of Participation, Series 2007A evidencing principal in the aggregate amount of $ (collectively, the "Certificates"). In such connection, we have reviewed the Master Agreement for District Obligations, dated as of August 1, 2000 (the "Master Agreement'), by and between the District and the Orange County Sanitation District Financing Corporation (the "Corporation"), the Installment Purchase Agreement,dated as of_ 1, 2007(the"Installment Purchase Agreement"),by and between the District and the Corporation, the Trust Agreement, dated as of 1, 2007 (the "Trust Agreement'), by and among the District,the Corporation, and Union Bank of California,N.A., as trustee (the"Trusted'),the Tax Certificate of the District, dated the date hereof(the"Tax Certificate'), opinions of counsel to the District, the Corporation, the Trustee and others, certificates of the District, the Corporation, the Trustee and others, and such other documents, opinions and matters to the extent we deemed necessary to render the opinions set forth herein. Capitaliud terms not otherwise defined herein shall have the meanings ascribed thereto in the Installment Purchase Agreement. The opinions expressed herein are based on an analysis of existing laws, regulations, rulings and court decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken or omitted or events occurring after the date hereof. We have not undertaken to determine,or to inform any person,whether any such actions are taken or omitted or events do occur or any other matters come to our attention after the date hereof. Our engagement with respect to the Certificates has concluded with their execution and delivery, and we disclaim any obligation to update this letter. We have assumed the genuineness of all documents and signatures presented to us(whether as originals or as copies)and the due and legal execution and delivery thereof by, and validity against, any parties other than the District. We have assumed, without undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents, referred to in the first paragraph hereof. Furthermore, we have assumed compliance with all covenants and agreements contained in the Master Agreement, the Installment Purchase Agreement, the Trust Agreement and the Tax Certificate, including (without limitation) covenants and agreements compliance with which is necessary to assure that future actions, omissions or events will not cause interest on the Installment Payments evidenced by the Certificates to be included in gross income for federal income tax purposes. oxswwzsots44ta.4 41758-11 naceaace E-1 0 In addition, we call attention to the face that the rights and obligations under the Certificates, the Master Agreement,the Installment Purchase Agreement,the Trust Agreement and the Tax Certificate and their enforceability are subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases, and to the limitations on legal remedies against public bodies such as the District in the State of California. We express no opinion with respect to the enforceability of any indemnification, contribution, penalty, choice of law, choice of forum,choice of venue or waiver provisions contained in the foregoing documents,nor do we express any opinion with respect to the state or quality of title to or interest in any of the real or personal property described in the Master Agreement or the Installment Purchase Agreement or the accuracy or sufficiency of the description contained therein of any such property. Finally, we express no opinion herein with respect to the accuracy, completeness or fairness of the Official Statement or other offering material relating to the Certificates. Based on and subject to the foregoing, and in reliance thereon, as of the date hereof,we are of the following opinions: I. The Master Agreement, the Installment Purchase Agreement and the Trust Agreement have been duly executed and delivered by,and constitute valid and binding obligations of,the District. 2. The obligation of the District to pay the Installment Payments, and the interest thereon, and other payments required to be made by it under the Installment Purchase Agreement is a special obligation of the District payable, in the manner provided in the Installment Purchase Agreement, solely from Net Revenues and other funds provided for in the Installment Purchase Agreement lawfully available therefor. 3. Assuming due authorization, execution and delivery of the Trust Agreement and the Certificates by the Trustee,the Certificates are entitled to the benefits of the Trust Agreement. 4. Interest on the Installment Payments paid by the District under the Installment Purchase Agreement and received by the registered owners of the Certificates is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes. Such interest is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although we observe that it is included in adjusted current earnings when calculating corporate alternative minimum taxable income. We express no opinion regarding other tax consequences related to the accrual or receipt of such interest or the ownership or disposition of the Certificates. Faithfully yours, ORRICK,FE.RRINGTON& SUTCLIFFE LLP Per OHS Wa1:26018W 18.4 41758-11 naavMKe E-2 f 4 APPENDIX F FORM OF CONTINUING DISCLOSURE AGREEMENT OHS Wa 260184418.4 41758-11 bllOU M F-I t APPENDIX G OFFICIAL NOTICE INVITING BIDS OHSWe 26019"W 417584u WMAKH G-1 BOARD OF DIRECTORS Meedng Date To Bd.of Dir. 4125/07 AGENDA REPORT Item Number Item Number Ia Orange County Sanitation District aSecondary Treatment FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: David MacDonald SUBJECT: SECONDARY ACTIVATED SLUDGE FACILITY 2 AT PLANT NO. 1, JOB NO. P1-102 GENERAL MANAGER'S RECOMMENDATION 1. Receive and file Addendum No. 2 to the Final Subsequent Environmental Impact Report for the Secondary Treatment and Plant Improvement Project for project modifications, prepared by IPMC/CH2M Hill. 2. Approve plans and specifications for the construction of the Secondary Activated Sludge Facility 2 at Plant No.1, on file at the office of the Clerk of the Board; 3. Approve Addendum Nos. 1 through 6 to the plans and specifications; 4. Receive and file bid tabulation and recommendation; 5. Award a construction contract to Kievift Pacific Co. for Secondary Activated Sludge Facility 2 at Plant No. 1, Job No. P1-102, for a total amount not to exceed $202,904,000; 6. Approve a 2.75% contingency for change orders to said construction contract ($5,600,000); and SUMMARY: • The purpose of this Project is to provide 60 mgd of secondary treatment at Plant No.1. The P1-102 Project is one of six projects designated by the Capital Improvement Program (CIP) as required to meet the Orange County Sanitation District's (Sanitation District) goal of full secondary treatment by the year 2012. The project will also be a future source of secondary effluent for the Ground Water Replenishment System (GWRS). • Black &Veatch Corporation completed the preparation of plans and specifications in September 2006. Sealed bids were received on March 20, 2007. A summary of the bids for Job No.P1-102 is as follows: Fmm No.M.IU Agenda Report-Board Revised: 12106106 Page 1 Project Budget: $265,846,000 Construction Contract Budget: $231,052,000 Engineer's Estimate $209,988,000 Lowest Responsive, Responsible Bid $202,904,000 High Bid: $229,985,000 • The Director of Engineering recommends the award of the construction contract for Secondary Activated Sludge Facility 2 at Plant No. 1, Job No. 131-102, to the Kiewit Pacific Company in an amount not to exceed $202,904,000. • The Director of Engineering also recommends a 2.75% contingency be established for construction change orders per the Sanitation District's Delegation of Authority. • Addendum No. 2 to the SEIR for the Secondary Treatment and Plant Improvement Project analyzes proposed modifications to haul routes for construction traffic to include Garfield Avenue and Brookhurst Street in Huntington Beach and Fountain Valley. No new significant environmental effects from the SEIR were determined. PRIOR COMMITTEEIBOARD ACTIONS None ADDITIONAL INFORMATION The improvements to be constructed under this contract were described in the Subsequent Environmental Impact Report (SEIR) for the Secondary Treatment and Plant Improvement Project which was certified by the Board on May 25, 2005. Additional review of traffic impacts is documented in Addendum No. 2 to the SEIR. Addendum No. 2 identifies impacts associated with construction truck traffic to and from the south end of Plant No. 1 along Garfield Avenue and Brookhurst Street in Fountain Valley and Huntington Beach. The proposed construction routing would not result in new significant environmental effects or a substantial increase in the severity of significant effects from those determined by the SEIR. These recommendations comply with authority levels of the Sanitation District's Delegation of Authority. The contractor selection process was conducted in accordance with the Sanitation District's adopted policies and procedures. This item has been budgeted. (Line item: Section 8, Page 53). Award Date: 04/25/07 Contract Amount: $202,904,000 Contingency%: 2.75% JH:DM:kf:gc Klntgfoba!Aq n Draft RepoftSooM of Dire =w 1-102 AR Contractor,1-25 7aoc Fw No,DW.102 Agp ReWft-ewr0 RenuM'. 1?/ge,9a Page 2 BOARD OF DIRECTORS Meeting Date TOBO.arcir. oa ss 7 AGENDA REPORT Rem Number Rem Number 14 Orange County Sanitation District Primary Treatment FROM: James D. Ruth, General Manager Originator: James D. Herberg, Director of Engineering SUBJECT: RATIFICATION OF CLARIFIER F INFLUENT PIPE EMERGENCY REPAIR, JOB NO. FE06-14 GENERAL MANAGER'S RECOMMENDATION 1. Ratify use of General Manager's emergency purchasing authority, Resolution No. OCSD 07-04, authorizing the General Manager to issue Purchase Order No. 60138-OS to Sancon Engineering, Inc. for Clarifier F Influent Pipe Emergency Repair, Job No. FE06-15, for a total amount not to exceed $124,800; and 2. Approve a contingency of 40% ($50,000) SUMMARY • The pipeline that brings raw sewage into Primary Clarifier F at Plant No. 2 has developed a leak and has been taken out of service. • An inspection confirmed that this unit is damaged and must be repaired. The repair consists of installing about 250 feet of plastic liner inside of the old pipe. • Operation of Primary Clarifier F is required in order to maintain water quality during several facility outages associated with major capital improvement projects at Plant No. 2, scheduled to begin in August 2007. • The District's normal procurement procedures would result in an October or November completion, threatening our ability to provide acceptable effluent quality and causing potential delays to major construction projects at Plant No. 2. • Additionally, Primary Clarifier P is undergoing emergency repairs due to corrosion, leaving Plant No. 2 with no spare primary clarifier capacity should there be an equipment problem with one of the other 12 primary clarifiers. • Based on these risks, staff recommended that emergency purchasing procedures be used to repair the leaking pipe. Fonn No.M-102 Agenda Report-Board Revised 121NIM Page 1 • Staff obtained bids from two contractors: Sancon Engineering, Inc. and Insituform, Inc. The bids were $124,800 and $164,850, respectively. • An unusually large contingency is being requested because additional repairs may be required, as there is not adequate time for a detailed investigation of the entire system. The contingency would only be used if serious problems are identified that need to be repaired immediately. PRIOR COMMITTEEIBOARD ACTIONS None ADDITIONAL INFORMATION None JDH:gc H:WglobaAgenda Dmft RepfW51BwM of Dire omT basin Repair-042507.doc Fmm No.M-10I Agenda ReptM-Board Rrme'•d: t2/W/O6 Page 2 OPERATIONS COMMITTEE M-brgDee ToBd.orob. 0 9/0 9I07 W/25/o7 AGENDA REPORT Item Number Iem Number OPOM5 15 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Technical Services SUBJECT: PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-31 GENERAL MANAGER'S RECOMMENDATION Ordinance No. OCSD-31, An Ordinance of the Board of Directors of Orange County Sanitation District adopting Wastewater Discharge Regulations, Ordinance No. OCSD-31, and repealing Ordinance No. OCSD-01: a. Motion to read Ordinance No. OCSD-31 by title only and waive reading of said entire ordinance. b. Motion to introduce Ordinance No. OCSD-31, and pass to second reading and public hearing on May 23, 2007. SUMMARY • The Source Control Division makes periodic changes in work processes and business rules which necessitate updates to the Wastewater Discharge Regulations which were last adopted effective July 1, 1998. The proposed revisions to the Wastewater Discharge Regulations are administrative in nature. The administrative updates include modification of definitions, deletion of unnecessary sections, and addition of language to clarify the intent of the Wastewater Discharge Regulations Ordinance and to include a new section on Urban Runoff. • Notices of staffs intent to adopt a new Wastewater Discharge Ordinance were mailed to all Source Control's Permittees in Pretreatment, Wastehauler, Urban Runoff, and Special Purpose Discharge Programs. The letter was issued on January 26, 2007. Written responses were requested by February 14, 2007. Only one written response was submitted to OCSD. Based on receiving one written response, it is Source Control's expectation that the planned adoption of Ordinance OCSD-31 will meet with little opposition and have very little impact. The proposed changes are primarily administrative in nature and bring the Wastewater Discharge Regulations up to date with current work practices. F0.No.O I W-2 Ru•ee01ro1N) Page 1 A markup copy of the proposed changes to the Wastewater Discharge Regulations Ordinance (Attachment A) is attached for you reference. PRIOR COMMITTEEIBOARD ACTIONS N/A ADDITIONAL INFORMATION OCSD's Source Control Division is responsible for administering and enforcing the District's Ordinance and National Pretreatment Program through an extensive permitting, monitoring and enforcement program to regulate the discharge into local sewers of pollutants from industrial facilities as well as commercial and residential communities. The National Pretreatment Program is derived from the federal Clean Water Act of 1972. The program was established to regulate the introduction of pollutants into the sewer system from industrial sources. Discharges targeted for regulation include those that will interfere with a treatment facility operation, that may pass through the treatment works and cause environmental harm, or that are otherwise incompatible with such works. The program is also intended to improve opportunities to reclaim municipal wastewater and biosolids. Recognizing the need to control the quality of wastewater discharges, the Board of Directors adopted the first Ordinance in February 1954, which was amended in February 1958, and again in April 1970. The 1970 amendments formally established the District's source control program for the purpose of issuing permits, setting discharge limits, and monitoring industrial discharges to the sewer system. In July 1976, the Ordinance was expanded to include numerical discharge limits for heavy metals. In July 1983, the Ordinance was again amended to include enforcement of EPA's newly promulgated categorical pretreatment regulations and to modify the District's local limits for cadmium, copper, and toxic organics at the levels currently enforced. In September 1989, the Ordinance was further amended to include revisions to the federal pretreatment standards and other provisions for implementation of a waste minimization program and escalated enforcement proceedings. In February 1992, the Ordinance was revised to incorporate new federal and state regulatory mandates for the administrative and civil penalties. In July 1998, the Ordinance was again amended to include the newly adopted policy pertaining to fees and charges for the use of the District's sewer system. Foam No.owim-2 Rwleetl 0]Ntro1 Page 2 PROPOSED CHANGES The proposed changes to the Wastewater Discharge Regulations are found in Attachment "A". The changes are primarily administrative and involve the clarification of language or definitions. Below is a brief summary of the major changes. • Class I Permittees—addition of language to deny a permit to an applicant based on inability to keep current with OCSD invoices • Enforcement—Addition of language for the Board to enact rules for administrative proceedings and to administer interim limits during an Enforcement Compliance Schedule Agreement • Permit Transfer—Addition of language for OCSD to transfer ownership of a permit if the owner retains an ownership greater than 50% • Pharmaceutical Disposal Guidelines —Addition of language to provide concurrence with the National Pharmaceutical Disposal Guidelines • Urban Runoff Program —Addition of a new section regarding all aspects of the current Urban Runoff policy • Waste Minimization Requirements —Addition of language to include Best Management Practices certification Porn No.ON 102.2 rtomxa oaotmi Page 3 ATTACHMENT "A" ORDINANCE NO. OCSD-0431 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING WASTEWATER DISCHARGE REGULATIONS AND REPEALING ORDINANCE OCSD NO. 01 O Q e c 9 11 13 and 14 of Orange r.. .-sty, Ga 'fam'a (the PFedeaenn. Dint:sts) � ' VMIEROea the Board of nYentrv.n of the n'nt:N hag dete.a.'aed that it'e W4FREAc the nl..f.lnf :.. .. eAtly herewith a aGt Rg OFd'naano NA QQSP n0 ...tab!.nhing n RtP FPVeRue RF99R h.. ..d . peR Rumemus faGtGF.. nit .d'no hi f ....d .....is of...... iGe w th the :. teRt:an that f...... ....rl the, Predecessor D striGt, except to the wdent of any ind d upon appFeved skid as and PepeFtsi and The Board of Directors of Orange County Sanitation District O( CSD) does hereby FIND: GelleGtiqR, T-Featme..t and 1) SP96al Fan'Ten Master Plan 1o89" heFp aaAa.the wed a .ad and adn..b.d 4. .H... C..a.dn ..f n'.eN...n .d th.. o.edenennn, Dint:nt Dwane .....,.. PFGjnnt'enn frv. n.ry .id'nry seWeF seFv a to all pFena.ties with'.. the n'nNnVn n areas-and, 2. That the PiAtFiGt is Pequired by federal and state law, RGluding the, QIPRR Watef-Aet-(33 U.S.G. 1261 et new the GeR@Fal oPe#eat 1e_"w _it...e.wt egulatiess (n�.F o \ menlc antl 5allinne\m�mlak\loe�l Scwii us\Temxnv noel F'en\OLKt]\Ottl 012008f1re E,01 Lltl^�M:Ma Qd- Page 1 of 91 C. That she Dist .Gt is '.may i...' istate and 'l law to meek ..._ed ..�by tedem "_ appli e..h a et_va...as va t.vetmeRt plant ern vet quality; and, D. C That the edeeee et th'6 n.d'nance is stet to ly exempt unde.the 4-3B A. That the former County Sanitation Districts Nos. 1 2 3 5 6 7 11 13 and 14 of Orange County. California (the 'Predecessor Districts"), were nine individual County Sanitation Districts,organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 et seg.). 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 cane on the functions of the Predecessor Districts: and. B. That a comprehensive 30-year Master Plan of Capital Facilities, entified "Collection`s eatment and Disposal Facilities Master Plan — 1989", hereinafter referred to as the Master Plan". which includes detailed financial and engineering reports, was. orecarecl. approved. and adopted by the Boards of Directors of the Predecessor Districts in 1989, setting forth and identifying the required future developm=r.; : OCSD Facilities. including the financial proiections for providing sewer ser�ic< al! properties within the individual service areas of each of the nine Predecessor Dhtrncts: and, C. Tha• 5nancial and engineering reports of the Master Plan were made available tre public, both prior to and subsequent to the adoption of the Master Plan, and mere subject to noticed public hearings all in accordance with the provisions o`cite California Constitution and Government Code Section 66016, and other provisoes of law: and. D. That the OCSD in 1997, as part of its maintenance and updating of its Master Plan undertook a comprehensive evaluation and study of its operafional 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 Gllluc eels un 'el"n rtskR it tlinua\Tern Ile Flw\ L 3@tl 0t 20050211 Rae 1 _ Page 2 of 91 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: and, E. That in June 2002 the OCSD completed the Interim Strategic Plan Update (ISPU) which further updated these critical factors and developed revised cost estimates and user fee proiections for upgrading the OCSD's level of treatment to secondary standards. On July 17, 2002, after reviewing: (1) the ISPU treatment alternatives, (2) ocean monitoring data, (3) public input. (4) regulatory issues, and (5)financial considerations.the Board of Directors made the decision to upgrade our treatment to meet secondary treatment standards: and, F. That the OCSD is required by federal and state law, including the Clean Water Act (33 U.S.C. 1251 at sea.) the General Pretreatment Regulations (40 C.F.R. 403) and the Porter-Cologne Water Quality Control Act (Water Code Sections 13000 at sea.), to implement and enforce a program for the regulation of wastewater discharges to the OCSD's sewers: and, G. That the OCSD is required by federal state and local law to meet applicable standards of treatment plant effluent quality: and, H 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) and categorically exempt pursuant to California Code of Regulations Sections 15307 and 15308. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation 9istristOCSD does hereby ORDAIN: Section I: Wastewater Discharge Regulations governing the use of 8istri OCSD sewerage facilities are hereby enacted to provide: O' Ns ml Selling..�l skkocal SWInWTemnomfl 14116(PW gles11 KI dOl D 11R 1 Page 3 of 91 ARTICLE 1 GENERAL PROVISIONS 101. PURPOSE AND POLICY A. This ordinance sets uniform requirements for Users of OCSD's facilities and enables OCSD to comply with all applicable State and Federal laws, including the Clean Water Act(33 United States Code fU.S.C.I section 1251 et seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations ICFRI Part 403). This Ordinance shall be interpreted in accordance with the definitions set forth in Section 102. The provisions of the Ordinance shall apply to the direct or indirect discharge of all liquid wastes carried to facilities of the OCSD. A_The purpose of this Ordinance is to provide for the maximum public benefit from the use of OCSD BistricX facilities. This shall be accomplished by regulating sewer use and wastewater discharges, by providing equitable distribution of costs. in compliance with applicable Federal, State and local Regulations, and by supporting the proper disposal of Prescription Drugs as noted in the guidelines published by the Office of National Drug Control Policy., . The revenues to be derived from the application of this Ordinance shall be used to defray all costs of providing sewerage service by the OCSD DistFiGE, including, but not limited to, administration, operation, monitoring, maintenance, financing, capital construction, replacement and recovery, and provisions for necessary reserves; B. This ordinance is meant to protect both OCSD personnel who may be affected by wastewater, sludge, and biosolids in the course of their employment and the general public: C. To comply with Federal, State, and local-policies and to allow the DistristOCSD to meet applicable standards of treatment plant effluent quality, biasGlidbiosolids skrdge quality, and air quality, provisions are made in this Ordinance for the regulation of wastewater discharges to the public sewer. This Ordinance establishes quantity and quality limits on all wastewater discharges which may adversely affect the BistAstOCSD's sewerage systems, processes, effluent quality, biosolids sludge quality, air emission characteristics, or inhibit the Diats OCSD's ability to beneficially +orc i..aid m Wu,cm m stem imenim rasp is d 01 M%0,fta fl Page 4 of 91 reuse or dispose of its treated wastewater. biosolids sludge or meet biosolids skidge discharge criteria. It is the intent of these limits to improve the quality of wastewater being received for treatment and to encourage water conservation and waste minimization by all users connected to a public sewer. It is the DistFi OCSD's intent to limit future increases in the quantity (mass emission) of waste constituents being discharged. This Ordinance also provides for regulation of the degree of waste pretreatment required, the issuance of permits for wastewater discharge and connections and other miscellaneous permits, and establishes penalties for violation of the Ordinance. D. Since the DistristOCSD is committed to a policy of wastewater reclamation and reuse in order to provide an alternate source of water supply, the implementation of programs for reclamation through secondary and tertiary wastewater treatment processes may necessitate more stringent quality requirements on wastewater discharges. In the event that more stringent quality requirements are necessary, the Ordinance will be amended to reflect those changes. E. Since the DistciG OCSD is committed to a policy for the beneficial use of biosolids sludge, the implementation of programs to land-apply or provide for the marketing and distribution of biosolids sludge may necessitate more stringent quality requirements on wastewater discharges. F. Since the DistrastOCSD is also committed to meet applicable air quality goals established by the South Coast Air Quality Management DistristOCSD, more stringent quality requirements on wastewater discharges may be required to meet such goals. 102. DEFINITIONS A. Unless otherwise defined herein, terms related to water quality shall be as adopted in the latest edition of Standard Methods for the Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation. The testing procedures for waste constituents and characteristics shall be as provided in 40 CFR 136 (Code of Federal Regulations; Title 40; Protection of Environment; Chapter I, Environmental Protection Agency; Part 136, Test Procedures for the Analyses of Pollutants), or as specified. Other terms not herein defined are defined as being the same as set forth in the International Conference of Building Officials Uniform Building Code. CVluc me ffi nnJ 5511ri n•W awolskiV ocl Sel In¢ulemnu tiv Ntemnl Flns\OLKIJ\LAtl 012006 D.O R-11 Page 5 of 91 Current Edition. 1. Ad Valorem Tax shall mean that portion of the basic tax allocated for the benefit of an individual Revenue Area Dist0l on the assessed value of land and improvements within its boundaries, exclusive of bonded indebtedness. 2. Assessed Value shall mean that portion of the total assessed value of the land and improvements upon which taxes are collected and allocated. 3. Best Management Practices (BMPs) shall mean schedules of activities, prohibitions of practices, maintenance procedures. operating procedures, practices to control spillage or leaks, treatment requirements, and other management practices to prevent or reduce pollution or to meet Article 2 standards. 34. Biochemical Oxygen Demand (BOD) shall mean a measurement of oxygen utilized by the decomposition of organic material, over a specified time period (usually 5 days) in a wastewater sample. It is used as a measurement of the readily decomposable organic content of wastewater. the ..t gFa l.. and as determined by the appropF ate testis 45. Board shall mean the Board of Directors of the Orange County Sanitation District. 56. BypasS shall mean the intentional diversion of wastestreams from any portion of an industrial user's treatment facility. 67. Capital Facilities Connection Charqe shall mean the one t F e payment of a fee, imposed by the governing Board of the 9istFiefOCSD, to pay for the future costs of constructing new sewerage collection, treatment, and disposal facilities; the and as a contributive share of the cost of the existing facilities. Said This charge shall be paid by all property owners at the time they develop the property and connect directly or indirectly to the 1)stFisfOCSD sewerage facilities as a new system user. This charge, whose rates areas set forth in a separate Ordinance, is expressly authorized by the provisions of California Health & Safety Code Sections 5471 and 5474. rdo a) a, knLOrnl SMIMamWemwmlv IIAGM0 FHOSIMK130d ni 20M aids _ Page 6 of 91 8. Charge For Use shall mean the DistriG OCSD's sanitary sewer service charge, a charge established and levied by the BistristOCSD upon residential, commercial and industrial users of the 13istristOCSD's system, pursuant to Sections 302.6(F)2, or 303.6(F)2 of this Ordinance, in proportion to the use of the treatment works by their respective class, that provides for the recovery of the costs of operation and maintenance expenses, capital facilities rehabilitation or replacement, and adequate reserves for the sewage treatment works. The minimum charge for use is the Annual Sewer Service Fee Residential Users or the Ad Valorem tax paid to the OCSD. whichever is greater. 9. Chemical Oxygen Demand (COD) shall mean the a measure of the oxygen required to oxidize all compounds, both organic and inorganic, in wastewater. PFGnedums and a ned {n ta•Mn Of MilligF...... .. F liteF 10. Class I User shall mean any user who discharges wastewater that; a) Is subject to Federal Categorical Pretreatment Standards; or b) averages 25,000 gallons per day or more of regulated process wastewater; or c) is determined by the " ne.al ManageF to have a reasonable potential for adversely affecting the 9istrlstOCSD's operation or for violating any pretreatment standard, local limit, or discharge requirement; or d) may cause, as detepm ned by the General Manager, pass through or interference with the 9istfistOCSD sewerage facilities 11. Class II User shall mean any industrial user whose charge for use is greater than the ad valorem tax basic levy allocated to the PistrietOCSD, and special assessment "OCSD Sewer User Fee' included on the County of Orange secured Property tax bill exclusive of debt service, that discharges wastes other than sanitary, and that is not otherwise required to obtain a Class I permit. 12. RESERVED 13. Code of Federal Regulations (CFR) shall mean the codification of CIOoa,mems n«e 5mennxuewraxiu«cfi:ie,l as:Temn„a a F'11DLKIWI.tl n'20M01a Reml �,.nnc _ nxwed« Page 7 of 91 the general and permanent regulations published in the Federal Register by the executive departments and agencies of the Federal Government. 14. Compatible Pollutant shall mean a combination of biochemical oxygen demand, suspended solids, pH, fecal coliform bacteria, plus other pollutants that the DistFin OCSD's treatment facilities are designed to accept and/or remove. Compatible pollutants are non-compatible when discharged in quantities that have an adverse effect on the 8istrisEOCSD's system or NPDES permit, or when discharged in qualities or quantities violating any Federal Categorical Pretreatment Standard, local limit, or other discharge requirement. 15. Composite Sample shall mean a collection of individual samples obtained at selected intervals based on an increment of either flow or time. The resulting mixture (composite sample) forms a representative sample of the wastestream discharged during the sample period. Samples w 11 be GQlleGted wheR manufaeturing, 16. Connection Permit shall mean a permit issued by the gevemiag 9 AtFMOCSD, upon payment of a capital facilities connection charge, authorizing the permittee to connect directly to a DistristOCSD sewerage facility or to a sewer which ultimately discharges into a 9istriellOCSD sewerage facility. 17. control Authority shall mean the Orange County Sanitation District 19. Department Head shall mean that person duly designated by the General Manager to direct the Technical Services Department, including the Source Control Division Labgratwy-and perform those delegated duties as specified in this Ordinance. 21. Discharger shall mean any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. Discharger shall mean the same as User. 22. District shall mean the Orange County Sanitation District. ':4Y n,m nls enJ 'n .,w,NH aaI N41 .\Tbm r Onbmal Files KI \ O O1 p 0,11 R-11 IJ— _ Page a of 91 23. Division Head shall mean that person duly designated by the General Manager to implement the DistF OCSD's Source Control Program and perform the duties as specified in this Ordinance. 24. Domestic Septage shall mean the liquid and solid material removed from a septic tank. cesspool, Portable toilet. Type III marine sanitation device, or similar treatment works that receives only domestic wastewater. 25. Domestic Wastewater shall mean the liquid and solid waterborne wastes derived from the ordinary living processes of humans of such character as to permit satisfactory disposal, without special treatment, into the public sewer or by means of a private disposal system. 26. Downstream Sampling or Monitoring shall mean sampling or monitoring usually conducted in a city or agency owned sewer for the purpose of determining the compliance status of an industrial or commercial discharger. ,.le tproviding r sleeping, eat mg, Gealk ng and-san tat on. 27. Dry Weather Urban Runoff shall mean surface runoff flow that is generated from any drainage area within OCSD's service area during a period that does not fall within the definition of Wet Weather. It is surface runoff that contains pollutants that interfere with or prohibit the recreational use and eniovment of oublic beaches or cause an environmental risk or health hazard. 28 ore�okrrn Enforcement Compliance Schedule Agreement E( CSA1 shall mean a mutual agreement between the BistF OCSD and permittee amend ng the P8FFFlqt t@ F89UFej22LHnnq implementation of necessary pretreatment practices and/or installation of equipment to ensure permit compliance. 29. Federal Categorical Pretreatment Standards shall mean any regulation containing pollutant discharge limits promulgated by the U.S. EPA in accordance with Sections 307(b) and (c) of the Clean m 95 n0 nllrm.l axanklllncrl 91in sgnm r Imerrw Fil s LKIY rd Ol W —r Page 9 of 91 Water Act (33 U.S.C. 1317) which apply to a specific category of industrial users and which appear in 40 CFR Chapter I, Subchapter N, Parts 405471. 30. Federal Regulations shall mean any applicable provision of the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, Title 33, United States Code, Section 1251 and following, and any regulation promulgated by the United States Environmental Protection Agency under Title 40 CFR implementing that act. 31. FIQAF ^ae.. shall ..r..AA the AFPR R61UPIPPI ...:.hiR the 91-IFFeU..A:nr above. 32. Flow Monitoring Facilities shall mean equipment and structures provided at the users expense to measure, totalize, and/or record, the incoming water to the facility or the wastewater discharged to the sewer. 33. General Manager shall mean the individual duly designated by the Board of Directors of the BistrietOCSD to administer this Ordinance (REFER TO SECTION 107). 34. Grab Sample shall mean a sample taken from a waste stream on a one-time basis without regard to the Flow in the waste stream and without consideration of time. 35. Industrial User shall mean any user that discharges industrial wastewater. 36. Industrial Wastewater shall mean all liquid-carried wastes and wastewater of the community, excluding domestic wastewater and domestic septage, and shall include all wastewater from any producing, manufacturing, processing, agricultural, or other operation. These Fmay also include waster of ti ... 37. IpfeGtini-A Waste shall mean Fnatwials wh Gh aFe likely 119 tF8ASFA t FROM spesifisally set faFth in Health and gat* Code Sentign 2511}7.Fr. Do:umenb nrul 5nln s. a,xxzkrLLoral i s\iem i Inlemel Ftl s\ lK1J.Atl nt flRwtt Page 10 of 91 38. Inspector shall mean a person authorized by the General Manager to inspect any existing or proposed wastewater generation, conveyance, processing, and disposal facilities. 39. Interference shall mean any discharge which, alone or in conjunction with a discharge or discharges from other sources, either: a) inhibits or disrupts the Bistkie CSD s its treatment processes or operations, or Its biosolids sludge processes, use, or disposal; or b) ar is a cause of a violation of any requirement of the BiskietOCSD's NPDES permit or prevents lawful biosolids or treated effluent sludge use or disposal. 40. LEL (Lower Explosive Limit) shall mean the minimum concentration of a combustible gas or vapor in air(usually expressed in percent by volume at sea level)which will ignite if an ignition source (sufficient ignition energy) is present. 41. Local Sewerina Agency shall mean any public agency or private corporation responsible for the collection and disposal of wastewater to the DistF OCSD's sewerage facilities duly authorized under the laws of the State of California to construct and/or maintain public sewers. 42. Maior Violation shall mean a discharge over the permitted discharge limit, as determined by the result of a composite sample analysis, as follows: a) a discharge exceeding a mass emission limit by 20%or more, or b) a discharge exceeding a concentration limit by 20% or more, or c) a pH discharge less than 5.0. 43, Mass Emission Rate shall mean the weight of material discharged to the sewer system during a given time interval. Unless otherwise specified, the mass emission rate shall mean pounds per day of a particular constituent or combination of constituents. 44, Maximum Allowable Discharge Limit shall mean the maximum ouantity or concentration of a pollutant allowed to be discharged at Page 11 of 91 any period of time. 44. May shall mean permissive or discretionary. 45. Medical Waste shall mean the discharge of isolation wastes, infectious agents, human blood and blood byproducts, pathological wastes, sharps, body parts, fomites, etiologic agents, contaminated bedding, surgical wastes, potentially contaminated laboratory wastes, and dialysis wastes. 46. Milligrams Per Liter(mg/L)shall mean a unit of the concentration of a constituent or compound that is found in water or wastewater . It is 1 milli ram m graafiof the constituent or compound in 1�9G4iters of water or wastewater. 4 wastewateic analysis. 47. Minor Violation shall mean a discharge over the permitted discharge limit as determined by the result of a composite sample analysis, as follows: a) a discharge exceeding a mass emission limit by less than 20%, or b) a discharge exceeding a concentration limit by less than 20%, or c) a pH discharge equal to or greater than 5.0, but less than 6.0, or d) a pH discharge greater than 12.0. 48. North American Industry Classification System (NAICS) shall mean an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. 48. National Pollutant Discharge Elimination System Permit(NRB€S) (NPDES Permit) shall mean the permit issued to control the discharge to surface waters of the United States as detailed in Public Law 92-500, Section 402. c. mem+ na szim -. a.azwaMai sem„ srmm ,a imen . . Ku1 a Qlzo .au aa.n Page 12 of 91 50. New Source shall mean those sources that are new as defined by 40 CFR 403.3(k) as revised. 51. Non-Compatible Pollutant shall mean any pollutant which is not a compatible pollutant as defined herein. 52. Normal Working Day shall mean the period of time during which production or operation is taking place or any period during which discharge to the sewer is occurring. 53. OCSD shall mean Orange County Sanitation District RESERVE 54. 9istWOCSD Sewerage Facility or System shall mean any property belonging to the DistfistOCSD used in the treatment, reclamation, reuse, transportation, or disposal of wastewater, or biosolids sludge. 54. Ordinance shall mean that document entitled 'Wastewater Discharge Regulations" containing 9is&isfOCSD requirements, conditions, and limits for connecting and discharging to the sewer system, as may be amended and modified. 55. off shall mean both acidity and alkalinity on a scale ranging from 0 to 14 where 7 represents neutrality, numbers less than 7 increasing acidity, and more than 7 increasing alkalinity, and is the logarithm of the reciprocal of the quantity of hydrogen ions in moles per liter of solution. 56. Pass Through shall mean discharge through the DistristOCSD's sewerage facilities to waters of the U.S. which, alone or in conjunction with discharges from other sources, is a cause of a violation of the DistF OCSD's NPDES permit. 57. Permittee shall mean a person who has received a permit to discharge wastewater into the DistriG OCSD's sewerage facilities subject to the requirements and conditions established by the 9istriG OCSD. 58. Person shall mean any individual, partnership, copartnership. company, f rm, association, corporation or public agency, joint stock company trust estate or any other legal entity: or their legal representatives. agents, assigns. including all Federal. State. and local governmental entities the State Af California and the WRited 59. Pesticides shall mean those compounds classified as such under VJvc vntl e1Ji 5\ n\wrsk}Lo< 0n s\l em bnernel Fles Q[KO\Q(i pl 20oDrall Revtl uum � Page 13 of 91 e Federal or State law or regulations Including, but not limited to DDT (dichlorodiohenvltrichloro-ethane. both isomers). DDE (dichlorodiphenvl-ethylene) DDD (dichlorodiphenvidichloroethane). Aldrin Benzene Hexachloride (alpha ful. beta 1`61, and gamma isomers). Chlordane. Endrin. Endrin aldehyde, 2 3 7 8-tetrachlorodibenzo-o-dioxin (TCDD) toxaphene, ,1-endosulfan It-endosulfan. Endosulfan sulfate, Heptachlor. Heptachlor epoxide, Dieldrin, Demeton, Guthion, Malathion, Methoxvchlor, Mirex. and Parathion. 60. Pollutant shall mean any constituent compound. or characteristic of wastewaters on which a discharge limit may be imposed either by the 8istrietOCSD or the regulatory bodies empowered to regulate the fdistristOCSD. 61. Polychlorinated Biphenvls (PCB) shall mean those compounds classified as such under Federal or State law including, but not limited to Aroclors 1016. 1221, 1228, 1232, 1242,1248, 1254. 1260, and 1262. 62. Pretreatment shall mean the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater to a level authorized by the 9iskistOCSD prior to, or in lieu of. discharge of the wastewater into the 9is�sEOCSD's system. The reduction or alteration can be obtained by physical, chemical or biological processes, byer process changes, or by other means. 63. Pretreatment Facility shall mean any works or devices that the General Manager determines are appropriate to treat, restrict, or prevent the flow of industrial wastewater prior to discharge into a public sewer. 64. Priority Pollutants shall mean the most recently adopted list of toxic pollutants identified and listed by EPA as having the greatest environmental impact. They are classified as non-compatible pollutants and may require pretreatment prior to discharge in order to prevent: a) interference with the 9iskistOCSD's operation; or b) biosolid slddgecontamination; or c) pass through into receiving waters or into the atmosphere. (".Ouu Anil ' ..1 vwo 'bLLrva^ 1^ atT , I, n Fl a Kt E 1 11 Page 14 of 91 65. Public Agency shall mean the State of California and any city, county, district, other local authority or public body of or within this State. 66. Public Sewer shall mean a sewer owned and operated by the 9istriG OCSD, a city or other local sewering agency which is tributary to the DiatristOCSD's sewerage facilities. 67. RCRA shall mean Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901, at seq.) and as amended. 68. Regulatory Agencies shall mean those agencies having jurisdiction over the operation of the DistristOCSD including, but not limited to, the following: a) United States Environmental Protection Agency, Region IX, San Francisco and Washington, DC (EPA). b) California State Water Resources Control Board (SWRCB). c) California Regional Water Quality Control Board, Santa Ana Region (RWQCB). d) South Coast Air Quality Management District (SCAQMD). e) California Environmental Protection Agency (Cal-EPA). 69. Regulatory Compliance Schedule Agreement (RCSA) shall mean an agreement between the DiRtF OCSD and permittee requiring the permittee to implement pretreatment practices and/or install equipment to ensure compliance with future revised categorical pretreatment standards or revised discharge limits. 70, Sample Point shall mean a location appreved accepted by the Diskig OCSD, from which wastewater can be collected that is representative in content and consistency of the entire flow of wastewater being sampled. 71. Sampling Facilities shall mean structure(s) provided at the users expense for the 9istF rtOCSD or user to measure and record wastewater constituent mass, concentrations, collect a representative sample, or provide access to plug or terminate the discharge. 72. Sanitary Waste shall mean domestic wastewater, human ("l m. I tl Ilin fl xvmlSNnl.ncA Gen... .iem o Lw-'.t—'et FdesQLK1MOPd 0L 20M fYUO Rwlt Page 15 of 91 excrement and gray water (household showers, dishwashing operations, etc). 73. Septic Waste shall mean any sewage from holding tanks such as vessels. chemical toilets, campers, trailers, and septic tanks. 74. Service Area shall mean an area for which the OCSD has agreed to either provide sewer service or wastewater treatment, or wastewater disposal 74. Sewage shall mean wastewater. 75. Sewerage Facilities or System shall mean any and all facilities used for collecting, conveying, pumping, treating, and disposing of wastewater or and-sludge or biosolids. 76. Shall means mandatory. 77. Significant Non-Compliance (SNC) shall mean the compliance status of an industrial user who is in violation of one or more of the following criteria as described in 40 CFR 403: average maximum I Fn t 9F the average lim t times the aveFage WAR fGF the same pollutant; 6) any a theF rielatien of a ffetreatmeRt efff ent limit that the t^� CNucumwtls m,J nllnwsluaµwsG\Lrcnl Sef usRnmrn•m_ylinenpl Filx•\OLN1J\Ortl Ol I005 DreM1 Revlf Page 16 of 91 staFting J final sempB2ase; . A fails.e to provide Fequi:ed-reperts-inc.odding-but Rot limited te With GGPRPliaRGe SGhedules within 30 days ef the due date; 78. Slug Load shall mean a discharge that exceeds the prohibitions stated in Section 2019 and significantly exceeds the usual user flow or pollutant loading, either mass or concentration. 79. Sludee shall mean any solid, semi-solid or liquid decant, subnate or supernate from a manufacturing process, utility service, or pretreatment facility. 80. Special Assessment Credit shall mean the portion of the secured propertytax bill that represents the special assessment sewer user fee as defined by the OCSD. 80. Special Purpose Use shall mean any discharger who is granted a Special Purpose Discharge Permit by the 9istA OCSD to discharge unpolluted water, storm runoff, or groundwater to the 1)AtrietOCSD's sewerage facilities. 81. Spent Solutions shall mean any concentrated industrial wastewater. 82. Spill Containment shall mean a protection system installed by the permittee to prohibit the discharge to the sewer of non-compatible pollutants. 83. Budget. 5 1fLmenL m 'etlln s1 a mrcknLncnl 'e , s\Tcm o r In,emn,Plles A N15V ,d 01 20W D.ft R.01 �H?6epWCWBNy9wgalBRB _ Page 17 of 91 84. Standard Methods shall mean procedures described in the current edition of Standard Methods for the Examination of Water and Wastewater, as published by the American Public Health Association, the American Water Works Association and Water Pollution Control Federation. 85. Suspended Solids shall mean any insoluble material contained as a component of wastewater and capable of separation from the liquid portion of said waste by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter. 86. Tax Credit shall mean that portion of the basic levy on the discharger's County of Orange Ad Valorem Tax Bill allocated to the 1)StrisFOCSD and/or the Annual Sewer Service Charge on the tax bill. The basic levy does not include taxes for bonded indebtedness. 87. Total Organic Carbon (TOC) shall mean the measure of total organic carbon in domesfic or other wastewater as determined by the appropriate tesfing procedure. 88. Total Toxic Organics (TTO)shall mean the summation of all ouantifiable values greater than 0.01 milligrams per liter for the oroanics regulated by the EPA or OCSD for a specific industrial category. 88. Unpolluted Water shall mean water to which no pollutant has been added either intentionally or accidentally. 89. User shall mean any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. User shall mean the same as Discharger or Industrial User. 90. Waste shall mean sewage and any and all other waste substances, liquid, solid, gaseous or radioactive, associated with human habitation or of human or animal nature, including such wastes placed within containers of whatever nature prior to and for the purpose of disposal. 91. Waste Manifest shall mean that receipt which is retained by the generator of hazardous wastes as required by the State of Califomia or the United States Government pursuant to RCRA, or the California Hazardous Materials Act, or that receipt which is retained by the generator for recyclable wastes or liquid non-hazardous wastes as required by the BistristOCSD. Yhv.umenlS a,W all„ .Wnw,uk,LL I s1T m , In enrel Fi,eslOL Kti1Qtl 120 fNaI1R 11 LTL _ Page 18 of 91 92. Wastehauler shall mean any person carrying on or engaging in vehicular transport of waste as part of, or incidental to, any business for the purpose of discharging said waste into the DistF; OCSD's system. 93. Wastewater shall mean the liquid and water-carried wastes of the community and all constituents thereof, whether treated or untreated, discharged into or permitted to enter a public sewer. 94. Wastewater Constituents and Characteristics shall mean the individual chemical, physical, bacteriological, and radiological parameters, including volume and Flow rate and such other parameters that serve to define, classify or measure the quality and quantity of wastewater. 95. Wet Weather shall mean any period of time during which measurable rainfall occurs within of OCSD's service area. This period shall include the time following the cessation of rainfall until OCSD determines that the wet weather event is no longer impacting OCSD's sewerage system. B. Words used in this Ordinance in the singular may include the plural and the plural the singular. Use of masculine shall mean feminine and use of feminine shall mean masculine. Shall is mandatory; may is permissive or discretionary. 103. CONFIDENTIAL INFORMATION All user information and data on file with the DistrietOCSD shall be available to the public and governmental agencies without restriction unless the user specifically requests and is able to demonstrate to the satisfaction of the DistfisfOCSD that the release of such information would divulge information, processes or methods which would be detrimental to the user's competitive position. The demonstration of the need for confidentiality made by the permittee must meet the burden necessary for withholding such information from the general public under applicable State and Federal Law. Any such claim must be made at the time of submittal of the information by marking the submittal "Confidential Business Information" on each page containing such information. Information which is demonstrated to be confidential shall not be transmitted to anyone other than a governmental agency without prior notification to the user. Wastewater constituents and characteristics and other effluent data, as defined in 40 CFR 2.302 shall not be recognized as confidential information and shall be available to the public. 0, ao ems n nil SMpluMq umkiLLrcl 9ellinus\Tannin ary Imemel ResI LKI Mi d 01 MV,Dmll Rev lI 91d _ Page 19 of 91 104. TRANSFER OF PERMITS A. Permits issued under this Ordinance are for a specific user, for a specific operation at a specific location or for a specific wastehauler, and create no vested rights. 1. No permit may be transferred to allow a discharge to a public sewer from a point other than the location for which the permit was originally issued. 2. Except as expressly set forth herein, no permit for an existing tagft may be transferred to a new owner and/or operator of that facility. B. At least thirty(30) days prior to the sale or transfer of ownership of any business operating under a permit issued by the DistFi OCSD, the permittee shall notify the DIRWeEOCSD in writing of the proposed sale or transfer. The successor owner shall apply to the DistnetOCSD for a new permit at least fifteen (15) days prior to the sale or transfer of ownership in accordance with the provisions of this Ordinance. A successor owner shall not discharge any wastewater for which a permit is required by this Ordinance until a permit is issued by the 8istrictOCSD to the successor owner. C. Notwithstanding the foregoing, the 8istrin OCSD may, in its discretion, allow the transfer of a permit to a new owner and/or operator, at the same location for which the permit was originally issued, if: 1. The existing permittee and the proposed new owner and/or operator provide the Dieiri9tOCSD with written notification of the intended transfer at least thirty (30) days in advance of the transfer date; and 2. The previous owner retains an ownership interest in the facility of greater than fifty percent (50%). 3.2. The Petri9tOCSD approves, in writing, the permit transfer prior to commencement of operations by the new owner and/or operator. D. The written notification of intended transfer shall be in a form approved by the D6stNstOCSD and shall include a written certification by the new owner and/or operator which: 1. States that the new owner or operator has no immediate intent to modify the facility's operations and/or processes; C Vlo Uu Im ands inns%u. mki\Lzl Sanu,m\Temm tm Fes\OLK1J\IX,t 01 ZOW Dra Fevf Page 20 of 91 2. Identifies the specific date on which the transfer is to occur; and 3. Acknowledges that the new owner or operator is fully responsible for complying with the terms and conditions of the existing permit and all provisions of this Ordinance. 105. EFFECT OF TRANSFER OF PERMITS Except as expressly set forth in Section 104.C, any permit which is transferred to a new owner and/or operator or to a new facility is void. 106. AUTHORITY The DO&WOCSD is regulated by several agencies of the United States Government and the State of California, pursuant to the provisions of Federal and State Law. Federal and State Laws grant to the DistristOCSD the authority to regulate and/or prohibit, by the adoption of ordinances or resolutions, and by issuance of discharge permits, the discharge of any waste, directly or indirectly, to the DiskiG '_SD's sewerage facilities. Said authority includes the right to establish limits, conditions, and prohibitions; to establish flow rates or prohibit flows discharged to the DistricEOCSD's sewerage facilities; to require the development of compliance schedules for the installation of equipment systems and materials by all users; and to take all actions necessary to enforce its authority, whether within or outside the DistNntOCSD's boundaries, including those users that are tributary to the DiStF OCSD or within areas for which the DiskietOC£,_ has contracted to provide sewerage services. The Distr+sC.` ':- has the authority pursuant to California Health and Safety Codes 5471 and 5474 to prescribe, revise, and collect all fees and charges for services and facilities furnished by the DiAWGIOCSD either within or without its territorial limits. 107. DELEGATION OF AUTHORITY Whenever any power is granted to or a duty is imposed upon the General Manager, the power may be exercised or the duty may be performed by any person so authorized by the General Manager. 106. SIGNATORY REQUIREMENTS Reports and permit applications required by this Ordinance shall contain the following certification statement: u,u'U iar n + u raW,vrkrnn,n m 2Mmau eemr IJ—N:beVrwl10LH0apeb _ Page 21 of 91 '9 have personally examined and am familiar with the information submitted in the attached document, and I hereby certify under penalty of perjury that this information was obtained in accordance with the Federal Pretreatment Requirements. Moreover, based upon my inquiry of those individuals immediately responsible for obtaining the information reported herein, I believe that the submitted information is true, accurate, and complete. I am aware that there are significant penalties not limited to fines and imprisonment for submitting false information._, ' The statement shall be signed by an authorized representative of the industrial user as defined in 40 CFR 40°."..,,4 4)or as defined and designated by the OCSD. "\DVct a vgrsk-L d \T Fln NI \ byry RBv11 1�J M. - _ Page 22 of 91 ARTICLE 2 GENERAL PROHIBITIONS, LIMITS AND REQUIREMENTS FOR DISCHARGE 201. PROHIBITED DISCHARGES These prohibitions apply to all users of the DistFietOCSDS facilities whether or not they are subject to Federal Categorical Pretreatment Standards or any other National, State, or local pretreatment standards or requirements. A. General Prohibitions. 1. No user shall introduce or cause to be introduced into the BistristOCSD any pollutant, wastewater, or Flow which causes pass through or interference or would cause the POOP OCSD to violate any Federal, State, or local regulatory requirement. 2. No user shall increase the contribution of flow, pollutants, or change the nature of pollutants where such contribution or change does not meet applicable standards and requirements or where such contribution would cause the BistFistOCSD to violate any Federal, State, or local regulatory permit. 3. No person shall transport waste from one location or facility to another for the purpose of treating or discharging it directly or indirectly to the DisNictOCSD's sewerage system without written permission from the 1)MFietOCSD. 4. No person shall deliver by vehicular transport, rail car, or dedicated pipeline, directly or indirectly to the DistFin OCSDIs sewerage facilities wastewater which contains any substance that is defined as a hazardous waste by the Regulatory Agencies. 6 Specific Prohibitions. No user shall introduce or cause to be introduced into the sewerage facilities, pollutants, substances, or wastewater which: 1. Create a fire or explosive hazard in the sewerage facilities including, but not limited to, wastestreams with a closed-cup flashpoint of less than 140 degrees F (60 degrees C) using the test methods specified in 40 CFR 261.21 or producing a gaseous mixture that is 10% or greater of the lower explosive limit (LEL). 2. Cause obstruction to the flow in the sewer system resulting in interference or damage to the sewerage facilities. f So A o 1S......`ixmnnm,r lnlmm.l R.,IOLKIT, d 0120MD,aXftev'1 0,Jor.Nl6epPtaWOkgbenpen Page 23 of 91 3. Produce noxious or malodorous liquids, gases, solids, or other wastewater which, either singly or by interaction with other wastes, is sufficient to create a public nuisance or a hazard to life, or to prevent entry into the sewers for maintenance or repair. 4. Result in toxic gases, vapors, or fumes within the sewerage facilities in a quantity that may cause acute worker health and safety problems. 5. Contain any radioactive wastes or isotopes except in compliance with applicable regulations from other governmental agencies empowered to regulate the use of radioactive materials. 6. Cause, alone or in conjunction with other sources, the 13istriG OCSD's treatment plant effluent to fail a toxicity test. 7. Cause the 8istrislOCSD's effluent or any other product of the treatment process, residues, biosolids, sWdges or scums, to be unsuitable for reclamation, reuse or disposal. 8. Cause discoloration or any other condition which affects the quality of the BistF OCSD's influent or effluent in such a manner that inhibits the 94t4et0CSD's ability to meet receiving water quality, t,osolids sludge quality, or air quality requirements established by Regulatory Agencies. 9. Create excessive foaming in the sewerage facilities 10. Violate any applicable Federal Categorical Pretreatment Standard, statute, regulation, or ordinance of any public agency or Regulatory Agency having jurisdiction over the operation of or discharge of wastewater through the sewerage facilities. 11. Has a temperature higher than 140 degrees Fahrenheit, (60 degrees Centigrade), or which causes the temperature at the treatment plant to exceed 104 degrees Fahrenheit(40 degrees Centigrade). 12. Has a pH less than 6.0 or greater than 12.0. 13. Has a maximum Biochemical Oxygen Demand (BOD) greater than 15,000 pounds per day_; 10,009 pGuAds per day 14. Is in excess of the permitted mass emission rates established in CiOar,mmis anJ Se,unn::u;rtwndl real SaninoetTamn et Mes:01 klSN, O,2005 DnI,Rav11 LlI Jo _ Page 24 of 91 accordance with Section 21240, or the concentration limits set forth in Table I, or the discharge permit. 14. Contains material which will readily settle or cause an obstruction to flow in the sewer resulting in interference, such as, but not limited to, sand, mud, glass, metal filings, diatomaceous earth, cat litter, asphalt, wood, bones, hair, and fleshings. 202. PROHIBITION ON DILUTION No user shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the user's permit or to establish an artificially high flow rate for permit mass emission rates. 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER A. No person shall discharge groundwater, surface runoff, or subsurface drainage directly or indirectly to the DisHistOCSD's sewerage facilities except as provided herein. Pursuant to Section 304 or 305, at seq., the Distr QCSD may approve the discharge of such water or wastewater only when no alternate method of disposal is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters or wastewater shall require a Dry Weather Urban Runoff Permit or a Special Purpose Discharge Permit from the DistFiGtOCSD. C. If a permit is granted for the discharge of such water or wastewater into a public sewer, the user shall pay the applicable charges established herein and shall meet such other conditions as required by the DisVietOCSD. 204. PROHIBITION ON UNPOLLUTED WATER A. No person shall discharge unpolluted water such as single pass cooling water directly or indirectly to the DistFistOCSD's sewerage facilities except as provided herein. Pursuant to Section 305, at seq., the Disfrti OCSD may approve the discharge of such water only when no alternate method of disposal or reuse is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters shall require a Special Purpose Discharge Permit from the DistrietOCSD. C. If a permit is granted for the discharge of such water into a public sewer, the user shall pay the applicable charges established herein and shall f.IDw me nnJ Sa -mMox kTL„Fl" ,6n .ITmI,I 9jtr.jMj Files 131 d0'I 20M D10 Rbv11 Page 25 of 91 meet such other conditions as required by the DiMR OCSD. A. The PePSOR 66 th d to Use FadeaGtVe mate matenals by the State ealth 9F other ..[n [6e use Gf rad o r1' . _ _ .'.._.._.._n n. _ _ _ Fegul B. The ..antes R ..I46nhaF9 d .n 6{nn1 n n[n....h • th n n[ Gal fo...._ fir G. The nn .n.O:: ... ... .... n '.... .. with all. ._.e.. _and Feg _1,_n_ of P11 _thp 206. PROHIBITION ON THE USE OF GRINDERS A. Waste from industrial or commercial grinders shall not be discharged into a public sewer, except wastes generated in packing or preparing food or food products. Such grinders must shred the waste to a degree that all particles will be carried freely under normal flow conditions prevailing in the public sewer. B. Waste from Food Service Establishments operating a grinder is prohibited and shall not be discharged into a public sewer unless written authorization from the OCSD General Manager or his designee is obtained. 207. PROHIBITION ON POINT OF DISCHARGE No person, except local sewering agencies involved in maintenance functions of sanitary sewer facilities, shall discharge any wastewater directly into a manhole or other opening in a sewer other than through an approved building sewer, unless approved by the Distr G OCSD upon written application by the user and payment of the applicable fees and charges established herein. 208. PROHIBITION AND REQUIREMENTS FOR WASTEHAULER DISCHARGES TO THE DIRTRICTOCSD'S SEWERAGE SYSTEM AND WASTEHAULER STATION A. No Wastehauler shall discharge to the OCSD's sewerage system. C0r ,meets aNS ,Ios�x k&LL iSe 11 .T6mamary Imsnre FRs10LKlT d01 NM ftR 1l Page 25 of 91 domestic septage or other approved waste or wastewater Sept�^..e waste wastes-fromsesspeel wastes, a vacuum pumping truck or other liquid waste transport vehicle, without first obtaining both a valid Orange County Health Care AgencyBepartgleat Permit and a OCSD Wastehauler Permit as required by Section 306. Such wastewaters shall be discharged only at a-locations designated by the 9is4"OCSD, and at such times as established spesified•by the DiSiA OCSD. The BistristOCSD may collect samples of each hauled load to ensure compliance with applicable standards. B. No Wastehauler shall dischargekW domestic septage or other approved waste or wastewater constituents dierhaFge eenstituents n excess of Limits Waste-in Table I. C. The discharge of industrial wastewater by any Wastehauler is prohibited unless written permission of the General Manager has been obtained, the proper permits have been obtained, and the waste meets Federal and State limits applicable to the user from which the waste was obtained; or Maximum Local Discharge Limits as specified in Table 1,whichever are more stringent. The discharge of hauled industrial wastewater is subject to all other requirements of this ordinance. D. No Wastehauler shall discharge wastewater to sewers that are tributary to the OCSD's sewerage facilities that are from a source that is not within the OCSD's service area unless prior authorization is granted by the General Manager or his designee. D. No Wastehauler shall discharge directly or indirectly to the sewerage facilities any material defined as hazardous waste by RCRA or 40 CFR 261. E. Upon request by the QL6tFjat' eaGh �A�stehaulep shall provide a waste the sewerage Wastehaulers shall provide a waste-tracking form for every load. This form shall include, at a minimum, the name and address of the industrial waste hauler, permit number, truck identification. names and addresses of sources of waste, and volume and characteristics of waste. F. Discharge at the OCSD disposal station shall be through an appropriate hose and connection to the discharge port. Discharging waste directly to the surface area of the disposal station is prohibited. G. Wastehauler hoses must be connected to the disposal station discharge 1Doarnie,llsaMiLLac71" - .Tem a L FYps Kt 11 Page 27 of 91 port when being cleaned. H. Transferring loads between trucks or from portable toilets to trucks on OCSD property is Prohibited unless permission from OCSD is obtained. 209. RESERVE "4R46-m— 16S aq ..W.A.Fn :n T..61e I PG Bs :....L.d.. but aFe not I:..dfed .e the f.� .. Ame.�ro 1/11C 1001 1004 4232 1042 1044 105 10C11 e..d tCO ' , ' .1'O VMev IM xl ecwSsgFnp pli s l e Ised iR is U F 2p flew LL_ _ Page 28 of 91 MR n,e.fe.en a ..:.� .� exp asdye limit i o \ OF haViRg a closed GUP f1..shpe Rt of less than earth,limited to, sand, mud, glass, Fnetal filings, d atemaGeous GalitteF, asphalt, dead animals, wood, bQR8S, haiF, and fieshiRge. wastewater disposal OF GPeFat ORS. eaGh user and made an applisable part of eaGh us&s peFFnit. These Fates ®. T9 Yerify the US@F'SOPerati„ data, the-Distcist Fnay FequirPosec-tc+ PFGdUGt GR Fates. RegulateFy AgeF;Gies- D. The n......nn -ge of . steF to establish an aFtiCeially high flew m!n feF roans 21014. PROHIBITION ON MEDICAL WASTE A. No person shall discharge solid wastes from hospitals, clinics, offices of medical doctors, convalescent homes, medical laboratories or other C1D2 , JSn nslaavmrskfJnml$eltnus\iemmm�ry lnlxmel FilesOLKI]\O,tl 012005rltall Revll 1. nr Page 29 of 91 medical facilities to the sewerage system including, but not limited to, hypodermic needles, syringes, instruments, utensils or other paper and plastic items of a disposable nature except where prior written approval for such discharges is given by the General Manager. B. The DistristOCSD shall have the authority to require that any discharge of an infectious waste to the sewer be rendered non-infectious prior to discharge if the infectious waste is deemed to pose a threat to the public health and safety, or will result in any violation of applicable waste discharge requirements. 2112. PROHIBITION ON DISPOSAL OF SPENT SOLUTIONS AND SLUDGES Spent solutions, sludges, and materials of quantity or quality in violation of, or prohibited by this Ordinance, or any permit issued under this Ordinance must be disposed of in a legal manner at a legally acceptable point of disposal as defined by the BisbistOCSD or appropriate Regulatory Agency. All waste manifests shall be retained for a minimum of three years, and made available to the DiskistOCSD upon request. 21240. MASS EMISSION RATE DETERMINATION A. Mass emission rates for non-compatible or compatible pollutants that are present or anticipated in the user's wastewater discharge may be set for each user and made an applicable part of each user's permit. These rates shall be based on Table I, Local Discharge Limits, or Federal Categorical Pretreatment Standards, and the user's average daily wastewater discharge for the past three years, the most recent representative data, or other data acceptable to the General Manager or his designee- B. To verify the user's operating data, the DistF QCSD may require a user to submit an inventory of all wastewater streams and/or records indicating production rates. C. The DisfristOCSD may revise limits or mass emission rates previously established in the discharger's permit at any time, based on: current or anticipated operating data of the discharger or the DisW;etOCSD; the DistastOCSD's ability to meet NPDES limits; or changes in the requirements of Regulatory Agencies. D. The excess use of water to establish an artificially high flow rate for mass emission rate determination is prohibited. ±1bc,mnm4 aTJ SML idIX'el :Tam r IMBn,H FI s K13 G 01200� 0n H1 11 Page 30 of 91 TABLE ORANGE COUNTY SANITATION DISTRICT MAXIMUM ALLOWABLE LOCAL DISCHARGE LIMITS(a) CONSTITUENT MILLIGRAMS/LITER Arsenic 2.0 Cadmium 1.0 Chromium(Total) 2.0 Copper 3.0 Lead 2.0 Mercury 0.03 Nickel 10.0 Silver 5.0 Zinc 10.0 Cyanide(Total) 5.0 Cyanide(Amenable) 1.0 Polychlorinated Biphenyls 0.01 Pesticides 0.01 Total Toxic Organics 0.58 Sulfide(Total) 5.0 Sulfide(Dissolved) 0.5 Oil and grease of mineral or petroleum origin 100.0 BOD 15,000 lbsldav MAXIMUM ALLOWABLE DISCHARGE LIMITS FOR WASTEHAULERS DISCHARGING DOMESTIC SEPTAGE WASTE CONSTITUENT MILLIGRAMSILITER Cadmium 1.0 Chromium 2.0 Copper 25.0 Lead 10.0 Nickel 10.0 Zinc 50.0 (a): User;subject to Federal Categorical Prebeatrrrent Standards may be required to meet more stringent limits. COmts enlsand Sonti st u mki\Incmel 1 s\Tam ar Intem Fi \ LK13 M 0120N0mflaev11 L+l ins _ Page 31 of 91 ARTICLE 3 DISCHARGE PERMITS, CHARGES, AND FEES 301. INTRODUCTION A. To provide the maximum public benefit from the use of 13is FWOCSD sewerage facilities, written authorization to use said facilities is required. This written authorization shall be in the form of a discharge permit. No vested right shall be given by issuance of permits provided for in this Ordinance. The DistfictOCSD reserves the right to establish, by Ordinance or in Wastewater Discharge Permits, more stringent standards or requirements on discharges to the DiskietOCSD's sewerage facilities if deemed by the General Manager appropriate to comply with the objectives presented in the Introduction and Summary of this Ordinance and the prohibitions and limitations in Article 2. B. The discharge permit shall be in one of five six forms and is dependent upon the type of discharger, volume, and characteristics of discharge. The six five discharge permits are: 1. Class I Wastewater Discharge Permit. 2. Class II Wastewater Discharge Permit. 3. Dry Weather Urban Runoff Discharge Permit RESW SID 4. Special Purpose Discharge Permit. 5. Wastehauler Discharge Permit. 302. CLASS I WASTEWATER DISCHARGE PERMITS A. No user requiring a Class I permit shall discharge wastewater without obtaining a Class I Wastewater Discharge Permit. B. Class I Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the DistristOCSD. The conditions of Wastewater Discharge Permits shall be enforced by the gis#WOCSD in accordance with this Ordinance and applicable State and Federal Regulations. C. All Class I users proposing to discharge directly or indirectly into the a loci , 'ol n a oun y m F, t , I 11 Ec"EIM Page 32 of 91 13istriGIOCSD's sewerage facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section 302.1 and paying the applicable fees pursuant to Section 302.3. For purposes of this Ordinance, a Class I user is any user: 1. Subject to Federal Categorical Pretreatment Standards; or 2. Discharging wastewater which averages 25,000 gallons per day or more of regulated process water; or 3. Discharging wastewater determined by the 9istOn OCSD to have a reasonable potential for adversely affecting the DistrietOCSD's operation or for violating any pretreatment standard, local limits, or discharge requirement; or 4. Discharging wastewater which may cause, as determined by the General Manager, pass through or interference with the Distk OCSD's system. 302.1 Class I Wastewater Discharge Permit Application A. Any person required to obtain a Class I Wastewater Discharge Permit shall complete and file with the 8istrlstOCSD, prior to commencing discharge, an application on the form prescribed by the 1)sNistOCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s), NAICS S.'.^. number(s), description of the manufacturing process or service activity. 2. (Whichever is applicable) name, address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of wastewater to be discharged. 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. C:1Dvc invents ant Snttinnclnamnrknl nr tlo, us�igmno ury Inlnmal FI ns\01 KI]IOitl 01200i Draft Ravl I 3,,tlnrllYle _ Page 33 of 91 7. Wastewater constituents and characteristics as required by the D 546EOCSD, including, but not limited to, those mentioned in Section 21240, Mass Emission Rate Determination, and Table I, Local Discharge Limits, of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the discharger and acceptable to the PistristOCSD. 8. Time and duration of discharge. 9. Number of employees per shift and aveFage hours of work per employee per day for each shift. 10. Waste minimization best management practices, and water conservation practices. 11. Production records, if applicable. 12. Waste manifests, if applicable. 13. Landscaped area in square feet, if applicable. 14. Tons of cooling tower capacity, if applicable. 15. EPA Hazardous Waste Generator Number, if applicable. 16. Any other information as specified. B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, pretreatment equipment, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit information related to the applicanfs business operations, processes, and potential discharge as may be requested by the 13iOF OCSD to properly evaluate the permit application. D. After evaluation of the data, the 9WAr4stOCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the Bistr'stOCSD's sewerage facilities. E. The permit application may be denied if the applicant fails to establish to the 1319tristOCSD's satisfaction that adequate pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to nls an,l allnl5 RikiaM l '] � 4\T— Irllnmul Fiv. Klt ,r101 05 rallfl II_ Page 34 of 91 Comply with applicable discharge limits. F. The permit application may be denied if the applicant has in the oast demonstrated an inability to keep current with OCSD invoices for items such as Permit Fees, Non-Compliance Fees, Civil Penalties, Administrative Civil Penalties. Charges for Use, and Supplemental Capital Facilities Capacity Charges. 302.2 Class I Permit Conditions. and Limits A. A Class I permit shall contain all of the following conditions or limits: 1. Mass emission rates and concentration limits regulating non-compatible pollutants. 2. Requirements to notify the Bietri9tOCSD in writing prior to modification to processes or operations through which industrial wastewater may be produced. 3. Location of the user's on-site sampling point. 4. Requirements for submission of self-monitoring reports, technical reports, production data, discharge reports, compliance with Pretreatment Standards, BMP-based Categorical Pretreatment Standards and/or local limits and/or waste manifests. 5. Requirements for maintaining, for a minimum of three years, plant records relating to wastewater discharge, and waste manifests as specified by 9ist4 OCSD. 6. Requirements to submit copies of tax and water bills. B. A Class I permit may contain any of the following conditions or limits: 1. Requirements for the user to construct and maintain, at his own expense, appropriate pretreatment equipment, pH control, flow monitoring facilities, and sampling facilities. 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Requirements to self-monitor. 4. Assumed values for BOD and suspended solids characteristics that typify the discharger's effluent for determination of the charge for use. N ns anti^ wr5nAl 11 astTpm I. m Fil '. 1 al Tr1 at 2 all Pu I I ,m Page 36 of 91 5. Other terms and conditions which may be appropriate to ensure compliance with this Ordinance or determined by the General Manager or his designee to be appropriate to protect the sewerage system. ti. 302.3 Class I Permit Fee A. The Class I permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of permit must be received by the BistristOCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 621.(E)of this Ordinance. 302.4 Class I Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the fife of the permit based on: 1. The discharger's current or anticipated operating data; 2. The DistastOCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the DistristOCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. New source indirect dischargers shall be required to install and start up any necessary pollution control equipment before beginning discharge, and comply with applicable Federal Categorical Pretreatment Standards not to exceed thirty(30) days after the commencement of discharge. C. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested CW m15 h"1 SNry `T F" K13N DWIRevll Page 38 of 91 change, and the reasons for the change. The BistrietOCSD shall review the request, make a determination on the request, and respond in writing. D. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 302.5 Class I Permit Duration and Renewal Class I permits shall normally be issued for a period not to exceed two (2)years. At least 45 days prior to the expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. 302.6 Class I Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from the DistristOCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of sewage in 8istrisl )CSD facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing wastewater collection, treatment, and disposal. B. A discharger who is issued a Class I Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the unit charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by the DistrisEOCSD. Annually, the DistristOCSD shall compute the charge for use based upon actual use for the preceding 12-month period on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by the PistcisF- -.SD. A credit to the permittee will be allowed against this permit charge for use, equal to the annual ad valorem tax basic levy allocated to the i3i&G 0CSD for the property for which a permit has been issued by the DistristOCSD. A credit will also be allowed for any sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. C. Current property tax bills shall be supplied by the permittee to the 9istHstOCSD by May 31 of each year for use in determining the ad valorem tax credit and/or the sanitary sewer service credit. If the tax bills 9etQnslwSr vkLLaw ai jg .Temt,ura,e,Iman,el F,1-01 K13%0,1 0120IXi0m1,R-11 I1 o�cWMCP�oMy6auga1BF6R _ Page 37 of 91 are not supplied, the 8istrint0CSD will endeavor to obtain the data. Data obtained by the DistriG OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for DistFl QCSD administrative costs when ad valorem property tax or sanitary sewer service charge data are obtained by the DistrietOCSD. The amount of the fee shall be adopted by the 1)stricEOCSD's Board of Directors. D. In order for the DistristOCSD to determine actual annual water use, the user shall provide to the PistriGEOCSD copies of its water bills. If these water bill copies are not received by July 31 of each year for the 12-month period ended closest to June 30, the BistristOCSD will endeavor to obtain the water use data. Data obtained by the Diet4vtOCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for DietdotOCSD administrative costs when the DistcietOCSD obtains water use data. The 9istrietOCSD's Board of Directors shall adopt the amount of the fee. E. The charge for use shall be computed by the following formula: Charge for Use = VaV+ BOB + SOS -Tax Credit Where V=total annual volume of flow, in millions of gallons B =total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Vo,Bo,So= Unit Charge rates established and adopted by Ordinance of the DistrigEOCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below: F. The Unit Charge rates in the charge-for-use formula shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the sewerage system shall be levied at a rate to be determined from time to time by the Board of Directors. This Charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of State and Federal Regulatory Agencies. gMD e,ns nnl Seln Hrskaneal salenur,Temnn,ary n wrr) l File9Ox mwrd nl 200e nran Revn r,m _ raew9.¢x Page 38 of 91 The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 2. A Capital Facilities Replacement Service component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among wastewater charge parameters of flow, biochemical oxygen demand, and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand, and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 3. The Unit Charge rates for each respective wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for V., and in dollars per thousand pounds for Bo and So. G. Other measurements of the organic content of the wastewater of a discharger, such as COD or TOC, may be used instead of BOD. However, the discharger must establish to the General Manager's satisfaction a relationship between the BOO of the wastewater and the parameter of measure. This relationship shall be used by the 9iskistOCSD in determining the charge for use. When wastewater from sanitary facilities is discharged separately from the other wastewater of a discharger, the charge for use for discharging the sanitary wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full-time on a daily basis. This may be determined by averaging the number of people employed at the beginning and end of each quarter, or other period that reflects normal employment fluctuations. m.Mrvunl 'gl0nrgn mcki\I na,l ' \in Fil \0 0\ 0 w11 i1 r — Page 39 of 91 303. CLASS II WASTEWATER DISCHARGE PERMITS A. No user requiring a Class II permit shall discharge wastewater without obtaining a Wastewater Discharge Permit. B. Class II Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use and fees established by the 9i6trietOCSD. The conditions of Wastewater Discharge Permits shall be enforced by the DlstOetOCSD in accordance with this Ordinance and applicable State and Federal Regulations. C. All Class II users proposing to discharge directly or indirectly into the 9ietrisEOCSD sewerage facilities shall obtain a Wastewater discharge Permit by filing an application pursuant to Section 303.1 and paying the applicable fees pursuant to Section 303.3. For purposes of this Ordinance, a Class II user is any user: 1. Whose charge for use is greater than the ad valorem tax basic levy allocated to the OCSD, and special assessment"OCSD Sewer User Fee' included on the County of Orange secured property tax bill exclusive of debt service, that discharges wastes other than sanitary. and that is not otherwise required to obtain a Class I e rniit and 2. Discharging waste other than sanitary; and 3. Not otherwise required to obtain a Class I permit. 303.1 Class II Wastewater Discharge Permit Application A. Any person required to obtain a Class II Wastewater Discharge Permit shall complete and file with the DistrisfOCSD, prior to commencing discharge, an application on the form prescribed by the 1)S4F EOCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s) and NAICS S-I C number(s); description of the manufacturing process or service activity. 2. (Whichever is applicable) Name, address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. C`�Mumenls enU Setlnlmiuxwnnkrl,ral5en os4xmm minlenM FleS`OLKI MP 012UM Oral Revt Page 40 of 91 3. Volume of wastewater to be discharged. 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by the 9is RA OCSD, including, but not limited to, those mentioned in Section 21240, Mass Emission Rate Determination, and Table I, Local Discharge Limits of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the discharger and acceptable to the 94etristOCSD. 8. Time and duration of discharge. 9. Number of employees and average hours of work per employee per day. 10. Waste minimization, best management practices, and water conservation practices. 11. Production records, if applicable. 12. Waste manifests, if applicable. 13. Landscaped area in square feet, if applicable. 14. Tons of cooling tower capacity, if applicable. 15. EPA Hazardous Waste Generator Number, if applicable. 16, Any other information as specified. B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, pretreatment systems, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit other information related to the applicant's business operations, processes, and potential discharge as may be requested to properly evaluate the permit application. CDoc en05e uslaa Rr:%ALocn sal,nu-IT>mn vinlemel Flas100.KII,2ri %Z..DWI R."I I m Page 41 of 91 D. After evaluation of the data furnished, the DistriatOCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the DistristOCSD's system. E. The permit application may be denied if the applicant fails to establish to the 136str4sEOCSD's satisfaction that adequate pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 303.2 Class II Permit Conditions. and Limits A. A Class II permit shall contain all of the following conditions or limits: 1. Applicable mass emission rates and concentration limits regulatino non-compatible pollutants. 42. Requirements to notify the DistristOCSD in writing prior to modification to processes or operations through which industrial wastewater may be produced. 23. Location of the user's on-site sample point. 34. Requirements for submission of technical reports, production data, discharge reports, and/or waste manifests. 45. Requirements to submit copies of tax and water bills. B. A Class II permit may contain any of the following conditions or limits: 1. Requirements for the user to construct and maintain, at his own expense, appropriate pretreatment equipment, pH control, flow monitoring and/or sampling facilities. 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Assumed values for BOD and suspended solids characteristics that typify the dischargers effluent for determination of the charge for use. 4. Requirements to self-monitor. 5. Requirements for maintaining, for a minimum of three years, plant records relating to wastewater discharge, and waste manifests as )Dlo meal.anJ$M1IWI s s LLMnI ue,l 4\TBT 11 IJIPniM Flles LK13\ 1101 rail R 11 Page 4Y of 91 specified by 94WW OCSD. 6. Other provisions which may be appropriate to ensure compliance with this Ordinance. 7. Other terms and conditions determined by the General Manager to be appropriate to protect the DiskietOCSD's system. 303.3 Class II Permit Fee A. The Class II permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of the permit fee must be received by the 9664i8tOCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 621.(E) of this Ordinance. 303.4 Class II Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The discharger's current or anticipated operating data; 2. The DistF G OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the DiskistOCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. The permittee inaysh" request a modification to the terms and conditions of an issued permit pF or to nGFear ng the rentri b6ltLon Of flow, 9rdinaase- The request shall be in writing stating the requested change, and the reasons for the change. The DistricfOCSD shall review the request, make a determination on the request, and respond in writing. 4arbcumnnr,ane smum�,yy �hY.« <_.;„� sue, ,.�F"101 k1a1n11i mi zoos m.0 R..I I (,�ll:We�pli6NpdBilO,dL12006BUIlAarlUEoc Page 43 of 91 C. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 303.5 Class II Permit Duration and Renewal Class II permits shall be issued for a period not to exceed three(3) years. At least 45 days prior to the expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. 303.6 Class II Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from the Distr OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of sewage in 9istrietOCSD sewerage facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing wastewater collection, treatment, and disposal. B. A discharger who is issued a Class II Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the Unit Charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by the 9is44etOCSD. Annually, the 9is 400CSD shall compute the charge for use based upon actual use for the preceding 12-month period on an annual reconciliation statement. The charge for use is payable within forty-five(45) days of invoicing by the 8istfi OCSD. A credit to the permittee will be allowed against this permit charge for use, equal to the annual ad valorem tax basic levy allocated to the 9is1*ietOCSD for the property for which a permit has been issued by the 9i9trisEOCSD. A credit will also be allowed for any sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. C. Current property tax bills shall be supplied by the permmittee to the 9istr QCSD by May 31 of each year for use in determining the ad valorem tax credit and/or the sanitary sewer service credit. If the tax bills are not supplied, the 9istrisEOCSD will endeavor to obtain the data. Data 9r ,merle nnJ 'elan s rsbLLncil Tem , re rft 11301 11 1,111w1I LL _ Page 44 of 91 obtained by the 9lstF OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for BistricEOCSD administrative costs when ad valorem property tax or sanitary sewer service charge data is obtained by the P StFietOCSD. The amount of the fee shall be adopted by the OWN OCSD's Board of Directors. D. In order for the DistrisEOCSD to determine actual annual water use, the user shall provide to the BistriefOCSD copies of its water bills. If these water bill copies are not received by July 31 of each year for the 12-month period ended closest to June 30, the 9istcieEOCSD will endeavor to obtain the water use data. Data obtained by the 9istrietOCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for 9WFiG1OCSD administrative costs when water use data is obtained by the QWFietOCSD. The amount of the fee shall be adopted by the D!sWdOCSD's Board of Directors. E. The charge for use shall be computed by the following formula: Charge for Use = VoV+ BB + S,S-Tax Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Vo,B.,So = Unit Charge rates adopted annually by Ordinance of the 9istriotOCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below. F. The unit charge rates in the charge for use formula shall be established annually and shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the sewerage system shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs C'\Dam and S% varsk LLrv'n 3at'ruarTrm u F'e,,\nLKITP.l of 2001,frrar Rnv,t Page 45 of 91 associated with each parameter and pursuant to applicable requirements of State and Federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 2. A Capital Facilities Replacement component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Managers determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 3. The unit charge rates for each respective wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for Vo, and in dollars per thousand pounds for Bo and S.. G. Other measurements of the organic content of the wastewater of a discharger, such as COD or TOC, may be used instead of BOD. However, the discharger must establish to the General Managers satisfaction a relationship between the BOD of the wastewater and the other parameter of measure. This relationship shall be used by the 9istFi OCSD in determining the charge for use. When wastewater from sanitary facilities is discharged separately from the other wastewater of a discharger, the charge for use for discharging the sanitary wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOO and suspended solids to be calculated at domestic wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full-time on a daily basis. This may be determined by averaging the number of people employed at the TVO1.ooJ 'nlln rskl nl ' .Tem bnxrnxlR s\ LH1 ,O'd a IIR II Page 46 of 91 beginning and end of each quarter, or other period that reflects normal employment fluctuations. 304. . DRY WEATHER URBAN RUNOFF DISCHARGE PERMITS A. No user shall discharge urban runoff to OCSD's sewerage system without obtaining a Dry Weather Urban Discharge Permit, B. OCSD shall determine whether the dry weather urban runoff Proposed to be discharged into OCSD's sewerage system may cause a potential environmental risk and/or health hazard that cannot be economically or Practically control by alternative disposal methods. C. Dry Weather Urban Runoff Permits shall be subiect to all Provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. D. All users required to obtain a Dry Weather Urban Runoff Permit Proposing to _discharge directly or indirectly into OCSD's sewerage facilities shall file an application pursuant to Section 304.1 and pay the applicable fees pursuant to Sections 304.3 and 304.6. 304.1. Dry Weather Urban Runoff Discharge Permit Application A. An applicant shall contact OCSD prior to any construction of facilities and discharge of dry weather urban runoff into the sewerage system to determine if the discharge of dry weather urban runoff to the OCSD sewerage facilities is feasible. B. Applicants shall complete and file with OCSD. prior to commencing discharge, an application in the form prescribed by OCSD. This application shall be accompanied by applicable fees, design plans a detailed analysis of other disposal alternatives, or other data as needed by OCSD for review. The applicant shall provide justification that disposal alternatives for the dry weather urban runoff are not economically or practically feasible in lieu of sewer discharge. C. In addition to the discharge permit, OCSD may require that the permit applicant enter into an agreement setting forth the terms under which the dry weather urban runoff discharge is authorized. D. Applicants shall provide adequate pretreatment and/or best management practices included within the applicants' plans to ensure that the applicable discharge limits shall be met. 304.2. Dry Weather Urban Runoff Discharge Permit Condition and Limits ,:� im 'nlm x1 a nkir ncrl^ellii rTem r t rlxt Fil sr 14 tl t nvn Page 47 of 91 The issuance of a Dry Weather Urban Runoff Discharge Permit may contain any the following conditions or limits: A Mass emission rates and concentration limits regulating non-compatible pollutants. B. Requirements for the user to construct and maintain, at the user's expense, appropriate pretreatment equipment flow monitoring facilities, and devices to prevent storm water discharoe into OCSD's sewerage system during a wet weather event(rain event). C. Requirements for the user to provide OCSD with its operations and maintenance plan, best management practices, and pollution prevention strategies designed to minimize or eliminate dry weather urban runoff pollutants. D. Limits on rate and time of discharge or requirements for flow regulation and equalization prior to discharge to the sewerage system. E. Requirements to self-monitor the discharge to the sewerage system. F. The General Manager. or his designees. may impose additional requirements as may be appropriate to reduce the burden on OCSD's collection, treatment, and disposal facilities. G. Prohibitions on the discharge. which may cause OCSD's effluent, biosolids. or any other product of its treatment process, to be unsuitable for reclamation, reuse, or disposal. 304.3. Dry Weather Urban Runoff Discharge Permit Fee A. The Dry Weather Urban Runoff Discharge Permit fee shall be paid by the applicant in an amount established in the applicable Ordinance or Resolution adopted by OCSD's Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Each permittee shall also pay delinquent invoices in full prior to permit renewal. 304.4. Dry Weather Urban Runoff Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the oermit based on: cOnktmallts mw S.swi s su , sr�n M i emei r or onn w.� Page 48 of 91 1. The discharoer's current or anticipated operatng data, 2. OCSD's current or anticipated operating data: 3. Changes in the requirements of Regulatory Agencies, which affect OCSD: or 4. A determination by the General Manager or his designee that such modification is appropriate to further the obiectives of this Ordinance. B. A oermittee may request a modification to the terms and conditions of an issued_permit. The request shall be in writing stating the requested changes and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond accordingly. C. A permittee shall be informed of any changes in the permit at least forty-five (45) days prior to the effective date change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 304.5. Dry Weather Urban Runoff Discharge Permit Duration and Renewal Dry Weather Urban Runoff Permit shall normally be issued for a period not to exceed two(2) years. At least 45 days prior to the expiration of the permit,the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. 304.6. Dry Weather Urban Runoff Discharge Permit Charge for Use A discharger who is issued a Dry Weather Urban Runoff Permit under the provision of this Ordinance shall pay a charge for use in accordance with rates established by Ordinance or Resolution adopted by OCSD's Board of Directors. 305. SPECIAL PURPOSE DISCHARGE PERMITS A. No user requiring a Special Purpose Discharge Permit shall discharge wastewater without obtaining a Special Purpose Discharge Permit. B. Special Purpose Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the 9ist4 OCSD. The conditions of Wastewater Discharge Permits shall be enforced by the BlstO OCSD in accordance with this Ordinance and applicable State and Federal Regulations. C. All Special Purpose Discharge Permit users proposing to discharge directly or indirectly into the 8isbiGtOCSD's sewerage facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to C ADO[ me nJ Se vxsk'.Lmu$H s wdiemrc .' me:nel F�e51pLKM1:1 9t 20M Dnh RW I — Page 49 of 91 Section 305.1 and paying the applicable fees pursuant to Sections 305.3 and 305.6. This discharge permit may be granted when no alternative method of disposal is reasonably available, or to mitigate an environmental risk or health hazard. 305.1 Special Purpose Discharge Permit Application A. Applicants seeking a special purpose wastewater permit shall complete and file with the BistristOCSD, prior to commencing discharge, an application in the form prescribed by the 8isttietOCSD. This application shall be accompanied by the applicable fees, plumbing plans, a detailed analysis of the alternatives for water disposal, or other data as needed by the BietN OCSD for review. B. The permit application may be denied when the applicant has failed to establish to the DistrisfOCSD's satisfaction that adequate pretreatment equipment is included within the applicants' plans to ensure that the discharge limits will be met or that the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 305.2 Special Purpose Discharge Permit Conditions and Limits A. Discharge conditions and limits shall be no less stringent than Section 201A, General Prohibitions: 201B. Specific Prohibitions: 205-6imits-ea 6harasteristiss Section 21240, Mass Emission Rate Determination:, and Table I, Local Discharge Limits. B. Monitoring requirements for the discharge shall be for those non-compatible pollutants known to exist in the discharge. At least one set of baseline analysis prior to or upon sewer discharge may be required shall ke-peftwAed for all constituents contained in the most current Environmental Protection Agency (EPA)"Priority Pollutant" list, excluding asbestos. C. The DWAsEOCSD may specify and make part of each Special Purpose Discharge Permit specific pretreatment requirements or other terms and conditions determined by the General Manager to be appropriate to protect the DistrisfOCSD's Sewerage Facility, the Local Sewering Agency, to comply with Regulatory Agencies' requirements, to ensure compliance with this Ordinance, and to assess des a charge for use. 306.3 Special Purpose Discharge Permit Fee The special purpose discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees Nucunwnls xnO SelLry:v- uskiLL„e,l 9Tem r Llenixl Fiiez'OIKU\O„101 flit 11 Page 50 of 91 must be received by the DistAG OCSD prior to issuance of either a new permit or a renewed permit. Each permittee shall also pay delinquent invoices in full prior to permit renewal. 305.4 Special Purpose Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the I31641etOCSD during the life of the permit based on: 1. The discharger's current or anticipated operating data; 2. The 1)stristOCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the 9ist40OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. A permittee may request a modfiea0on to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The Bistrie4OCSD shall review the request, make a determination on the request, and respond in writing. C. A permittee shall be informed of any changes in the permit at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 305.5 Special Purpose Discharge Permit Duration and Renewal Special purpose discharge permits shall be issued for a period not to exceed three one (31-) years, but may be renewed as determined by the General Manager. Users seeking permit renewal shall comply with all provisions of this Article 3. 305.6 Special Purpose Discharge Permit Charge for Use The General Manager shall establish a charge for use to cover all costs of the 9istristOCSD for providing sewerage service and monitoring. A deposit determined by the General Manager to be sufficient to pay the estimated charges for use shall accompany the Special Purpose Discharge Permit application, and said deposit shall be applied to the charges for use. '111oni�nr vnU GEI m2s1u'nwnskl I ' \ r ai FY .\f1 KL11Pu101 fall Ravll inrHHOeVI _ tPCWPCz Page 51 of 91 306. WASTEHAULER DISCHARGE PERMIT A. Wastehauler Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the MistAGtOCSD. The conditions of Wastehauler discharge permits shall be enforced by the OistrisfOCSD in accordance with this Ordinance and applicable State and Federal Regulations. B. A Wastehauler proposing to discharge waste into the 8istriG QCSD disposal station shall obtain both a valid Orange County Health Department Permit (where applicable), and a OCSD Wastehauler Permit. 306.1 Wastehauler Discharge Permit Application A. No Wastehauler shall discharge wastewater without a Wastehauler Discharge Permit. B. Any person required to obtain a Wastehauler Discharge Permit shall complete and file with the OCSD prior to commencing discharge, an application in a form prescribed by the 13iair GtOCSD. This application shall be accompanied by the applicable fees. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, telephone number, and description of the industries, or clients using the applicant's services. 2. (Whichever is applicable) Name, address of any and all principalstownerstmajor shareholders of the company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Name and address of leaseholder of the vehicle or trailer, if applicable. 4. Number of trucks and trailers and the license numbers and tank hauling capacity of each. 5. A copy of the applicant's Orange County Health Department Permit, where applicable. C. Other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, the 9istristOCSD may issue a Wastehauler discharge permit, subject to terms and conditions set forth in C 0u1—nls and S vas\II.mno ,Ifier-t FIes%OLKIM�l 01 tom DnM1 Rw, Page 52 of 91 this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the 8istcistOCSD's system. 306.2 Wastehauler Discharge Permit Conditions and Limits The issuance of a Wastehauler permit may contain any of the following conditions or limits: A. Limits on discharge of heavy metals and other priority pollutants. B. Requirements for maintaining and submitting waste hauling records and waste manifests. C. Additional requirements as otherwise determined to be appropriate by the General Manager to protect the DistrictOCSD's system or as specified by other Regulatory Agencies. D. Other terms and conditions which may be applicable to ensure compliance with this Ordinance. 306.3 Wastehauler Discharge Permit Fee The Wastehauler discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Boards of Directors. Payment of permit fees must be received by the DisNiG OCSD prior to issuance of either a new permit or a renewed permit. A permittee shall also pay any delinquent invoices in full prior to permit renewal. 306.4 Wastehauler Identification Decal and Access Card Transfer A. The identification decal is non-transferable. B. If The gate access card is issued, it shall be issued to a specific permitted vehicle and is non-transferable unless previously authorized in writing by the 13iOF G OCSD. 306.6 Wastehauler Discharae Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the Distrie OCSD during the life of the permit based on: 1. The discharger's current or anticipated operating data; 2. The 1)StFietOCSD's current or anticipated operating data; C'1Duu im mtl yrin �.ki� SyJllim tllninnin..lnlnniatFl,IQ1K1T@e10124a Dm11 R.0I 3y,oM4QRDAd0i10tl_-0NBW8w0.AaW QEoc Page 53 of 91 3. Changes in the requirements of Regulatory Agencies which affect the Dis#n OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The D StF OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limits, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 306.6 Wastehauler Discharge Permit Duration and Renewal Wastehauler discharge permits shall be issued for a period not to exceed one (1) year. Upon expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of Article 3. 306.7 Wastehauler Discharge Permit Charae for Use A charge for use to cover all costs of the OWN QCSD for providing the disposal station service and monitoring shall be established by Ordinance of the Board of Directors. fees established bythP DiStFint The smndtiens of:PTLJ discharge permits shall State and Federal Regulations. aGGOFnpan ed by the appl sable fees. The app! sant shall submit, in un ts C . 1 anJ a k mal n \ em , mel Fles KlX6d 012005 Dmlt ReV11 Page 54 of 91 1. Name, addFen.`. deesuipt .n of the s vice a.^' ty, GGPY Of the Health-SewiGes. 2. (V�Aishevw isappi able) Ra. e, addFess of any and all Business WGeAse. 3. Vnniume rvoateWate that n be p:ssessed by ._the�n'nnnAm sewed-With-aetises G. ApPliGa RtS may be requ Fed t, subrR t GtheF .RfO ......:nrnmv�vr ilntpd .n t�cm'mche t9 n eFly evaluate then Fn t annlieatinn F. The nn....lapp! Gat en may be den'n.l W the ..nnlln..nt fails to estmbligh tm thn DiRtF A ..inn.'nn that adequate pretreatment equipment a pi'Gant has, 'n the past .In.....nn..nb..l nn InnhI li" 307.2_TTU_8issha•ne oe.ma rnn.rwnnn and m .s t1i111tE e ^n..nn @FRQAi9R ..Ann .. AARGPRtFRt*GAA Feg6llat nn hen. ., metals gnrl nthn. w Page 56 of 91 and equal zat on. B. Re _ ._... ntn for the .for. nnf. of and ro_ nfdn at 6'n _._. e ^en rite haWliRggFd.. ..nd ...onto manifests F. Req n to Self MOR49F. G. onn rFLmeRtn for manta mg plant rgnnrdn relating to ymstewatef d'nn6arno ..nd ...ant^ manifests a oglFod by n:ntk Q^^.d of Il".^nto The peFFAY fee shallLn payable with R feFty gye (45) Of PeFMit fees must be FeGeiAfpcl perm rtrmvr. :. The iDiStF At'SGyr. nt or aRtIG aced operating data. C�oral Settinus\iamnorary Ir tbnun F et�OLK TD tl f 20pi�mM1 Rbvt t Page 56 of 91 the r 9 deteFFA natieR OR the request, and respond in writing. The DistF ells a, Perm dep shall be OeFFned of any Ghange iA the permit limits, Gend tiORS, ion and RePAwal Tf I r. FFA to shall be 'e earl for a per'eel net to eXGee.d e e (1) 308. RESERVED 308. RESERVED 310. OUT OF DISTRICT PERMITS/DISCHARGERS A. Industrial Wastewater Discharge Permits for dischargers located outside of the 97stirstOCSD's boundaries but within the OCSD service area and but tributary to the BishidOCSD's sewerage facilities, may be issued by a local sewering agency after approval by the Fllstfi6EOCSD. The 9iskistOCSD shall have the right of inspection and sampling of the user's discharge to determine compliance with industrial waste discharge regulations. Such inspection and sampling will be performed under a coordinated plan developed with the local agency. The more stringent of the industrial waste discharge regulations and effluent limits of the 8istristOCSD and the local agency shall apply to the discharger. B. Pursuant to Article 6 herein, the Gistriel CSD shall have the right to enforce the Federal Pretreatment Regulations, the provisions of this Ordinance, and permit conditions and limits applicable to any person located outside of the ID AtristOCSD's service area, but whose discharge is tributary to the DstrietOCSD'S sewerage facilities. !`YMcm Bntl 59H rskl a5ma;`lemM envn PAtls\OIK1]\@� Gt 20M LlnII Fev11 L Page 57 of 91 C. The fees for use shall be determined by the 8ishietOCSD and set forth in a use agreement with the local sewering agency. C'\Don men s aM SeM as\oaxarsk LLrcn SellYwa\Temnornry Nenwl F es\OLM1 d 01 M Dnfl R I I m Page 58 of 91 ARTICLE 4 FACILITIES REQUIREMENTS 401. DRAWING SUBMITTAL REQUIREMENTS Upon request by the DistrietOCSD: A. Applicants or users may be required to submit three copies of detailed facility plans. The submittal shall be in a form and content acceptable to the 13islristOCSD for review of existing or proposed pretreatment facilities, spill containment facilities, monitoring facilities, metering facilities, and operating procedures. The review of the plans and procedures shall in no way relieve the user of the responsibility of modifying the facilities or procedures in the future, as necessary to produce as discharge acceptable to OCSDdisaharge, and to meet the requirements of this Ordinance or any requirements of other Regulatory Agencies. B. The drawing shall depict as a minimum the manufacturing process (waste generating sources), spill containment, monitoring or metering facilities, and pretreatment facilities. C. The applicant or user shall submit a schematic drawing of the pretreatment facilities, piping and instrumentation diagram, and wastewater characterization report. D. Users and applicants may also be required to submit for review site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, and appurtenances by size, location, and elevation for evaluation. E. The DistNetOCSD may require the drawings be prepared by a California Registered Chemical, Mechanical, or Civil Engineer. F. Pe, . sl-)all he required to submit updated detailed facility plans. 402. PRETREATMENT FACILITIES A. All users shall provide wastewater treatment as necessary to comply with thie, or;r,nance and shall achieve compliance with all Categorical Pretreatment Standards. Table 1, Local Discharge Limits, and the prohib.tlons set out in Sections 201A & B of this ordinance within the time limitations specified by EPA, the State or OCSD whichever is more stringent. Any facilities necessary for compliance shall be provided, operated by a qualified operator, and maintained in proper operating q:,Oocumenls nnJ Se0yaAyafi sLiN 2'L�¢YtStrT61JYln,e,ne,F en:n K Al (n 2005 Ontl,Pxvt, :i�nG4'WeVI45K10MybBn9c1BFB _ Page 59 of 91 condition at the User's expense. asseptable4s414e District,undeFthe use. B. All users may also be required by the OCSD 8istrist to submit waste analysis plans, contingency plans, and meet other necessary requirements to ensure proper operation of the pretreatment facilities and compliance with permit limits and this Ordinance. C. No user shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the user's Permit. 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS A. All users shall provide spill containment for protection against discharge of prohibited materials or other wastes regulated by this Ordinance. Such protection shall be designed to secure the discharges and to prevent them from entering into the system in accordance with reasonable engineering standards. Such facilities shall be provided and maintained at the user's expense. B. The General Manager may require any industrial user to develop and implement an accidental discharge/slug control plan. At least once every two years the DistristOCSD shall evaluate whether each significant industrial user needs such a plan. Any user required to develop and implement an accidental discharge/control slug plan shall submit a plan which addresses, at a minimum, the following: 1. Description of discharge practices, including non-routine batch discharges. 2. Description of stored chemicals. 3. Procedures for immediately notifying the POTW of any accidental of slug discharge. Such notification must also be given for any discharge which would violate any of the prohibited discharges in Article 2 of this Ordinance. 4. Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site run-off, worker training, building of containment structures or G\DowmenLs antl S=Ilinm\uaegrsklLo¢, Se,' us\Temn a F'e.\OLK1SDr 0, USn Page 60 of 91 equipment, measures for containing toxic organic pollutants (including solvents), and measures and equipment for emergency response. 404. MONITORING/METERING FACILITIES A. The 9iskietOCSD may require the user to construct and maintain in proper operating condition at the user's sole expense, flow monitoring, constituent monitoring and/or sampling facilities. (B) Permittees may be required to install and maintain an appropriate effluent flow monitoring device. Calibration of such flow monitoring device shall be done annually or as specified in the wastewater discharge permit. B. The monitoring or metering facilities may be required to include a security closure that can be locked with a OWN OCSD provided hasp lock during sampling or upon termination of service. C. The location of the monitoring or metering facilities shall be subject to approval by the DiskiGEOCSD. D. The user shall provide immediate, clear, safe and uninterrupted access to the B 6tFi OCSD to the user's monitoring and metering facilities. E. For all industries permitted by the OCSD. domestic wastewaters shall be kept segregated from all industrial wastewaters until the industrial wastewaters have passed through any required pretreatment system or device and the permittee's sample point. 405. WASTE MINIMIZATION REQUIREMENTS A, The user shall provide waste minimization plans to G9RSPNA•-•A•^F•educe or eliminate pollutant discharge to the sewerage system and conserve water.; The user shall investigate product substitution, housekeeping Practices. provide inventory control, implement employee education, and other steps as necessary to minimize waste produced. B. A user may certify that their facility does not discharge any type of wastewater. containing Pollutants that may directly or indirectly discharge into the OCSD sewerage system as a form of Best Management Practice (BMPo. upon approval by the OCSD. mm,.nnJ ' ib xY sTem m L FA 1 tlOt 1 Page 61 of 91 ARTICLE 5 MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS 501. MONITORING AND REPORTING CONDITIONS A. Monitorina for Annual Charge for Use The wastewater constituents and characteristics of a discharger needed for determining the annual charge for use shall be submitted in the form of self-monitoring reports by the user to the MistrictOCSD, if requested. The frequency of analyses and reporting shall be set forth in the user's permit. The analyses of these constituents and characteristics shall be by a laboratory acceptable to the BistFin OCSD, and at the sole expense of the permittee. Analyses performed by DisiA OCSD's personnel may used in the determination of the annual charge for use. B. Monitoring for Compliance with Permit Conditions or Reporting Requirements The DiskistOCSD may require reports for self-monitoring of wastewater constituents and characteristics of the discharger needed for determining compliance with any limit or requirements as specified in the user's permit, Federal or State Regulations, or this Ordinance. These reports include: (1) Baseline Monitoring Reports. (2) Compliance Schedule Progress Reports. (3) 90-Day Compliance Reports. (4) Periodic Reports on continued compliance. (5) Notification of the Discharge of Hazardous Waste. (6) Other reports as required by the DistrietOCSD. Monitoring reports of the analyses of wastewater constituents and characteristics shall be in a manner and form approved by the DiStF OCSD and shall be submitted upon request of the DistF OCSD. When applicable, the self-monitoring requirement and frequency of reporting may be set forth in the user's permit as directed by the 1)OF GtOCSD. The analyses of wastewater constituents and e,no „mein.nnism ,.xao.,r i�n,in, rF11s101K I 110Mn Page 62 of 91 characteristics and the preparation of the monitoring report shall be done at the sole expense of the user. If samoling performed by a user indicates a violation, the user must notify the OCSD within twenty-four (24) hours of becoming aware of the violation. The user shall also repeat the sampling and analysis and submit the results of the repeat analysis to the OCSD within thirty (30) days site becoming aware of the violation. Resampling by the industrial user is not required if the OCSD performs sampling at the user between the time when the initial sampling was conducted and the time when the user or OCSD receives the results of this sampling, or if the OCSD has performed the sampling and analysis in lieu of the industrial user. If the OCSD performed the sampling and analysis in lieu of the industrial user, the OCSD will perform the repeat sampling and analysis unless it notifies the user of the violation and requires the user to perform the repeat sampling and analysis. Failure by the user to perform any required monitoring, or to submit monitoring reports required by the DistrisEOCSD constitutes a violation of this Ordinance, may result in determining whether the permittee is in significant non-compliance, and be cause for the DisiricEOCSD to initiate all necessary tasks and analyses to determine the wastewater constituents and characteristics for compliance with any limits and requirements specified in the user's permit or in this Ordinance. The user shall be responsible for any and all expenses of the Distrie CSD in undertaking such monitoring analyses and preparation of reports. 501.1 Inspection and Semolina Conditions A. The DistAstOCSD may inspect and sample the wastewater generating and disposal facilities of any user to ascertain whether the intent of this Ordinance is being met and the user is complying with all requirements. B. The DistA OCSD shall have the right to place on the user's property or other locations as determined by the DistristOCSD, such devices as are necessary to conduct sampling or metering operations. Other sampling locations may include downstream manholes usually in the sewerage system for the purpose of determining the comoliance status of an industrial or commercial discharger. `""•^�^ - ^^^• �-^ ^^-••�'•• •^^^� �^ from the DiRtF Gt Shall be PBFMi#Bd W entef without delay feF the purpos C. In order for the DisivisfOCSD to determine the wastewater characteristics of the discharger for purposes of determining the annual use charge and for compliance with permit requirements, the user shall make available C F %O KITCY�4 01 20%QuI Rev ID. Page 63 of 91 for inspection and copying by the DishistOCSD all notices, self-monitoring reports, waste manifests, and records including, but not limited to, those related to production, wastewater generation, wastewater disposal, and those required in the Federal Pretreatment Requirements without restriction but subject to the confidentiality provision set forth in Section 103 herein. All such records shall be kept by the user a minimum of three (3) years. D. If a discharoer falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method, the discharger may be subiect to imposition of penalties, permit suspension or permit revocation. 5012 Analytical Requirements All pollutant analyses, including sampling techniques, to be submitted as part of a wastewater discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, unless otherwise specified in an applicable categorical Pretreatment Standard. If 40 CFR Part 136 does not contain sampling or analytical techniques for the pollutant in question, or where the EPA determines that the Part 136 sampling and analytical techniques are inappropriate for the pollutant in question. sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures. including procedures suggested by the General Manager or other parties approved by EPA. 501.32 Right of Entry A. Persons or occupants of premises where wastewater is created or discharged shall allow the 1)st iMOCSD, or its representatives, reasonable access to all parts of the wastewater generating and disposal facilities for the purposes of inspection and sampling during all times the discharger's facility is open, operating, or any other reasonable time. No person shall interfere with, delay, resist or refuse entrance to authorized 8istr G OCSD's personnel attempting to inspect any facility involved directly or indirectly with a discharge of wastewater to the 9istristOCSD's sewerage system. B. Where a user has security measures in force, the user shall make necessary arrangements so that personnel from the OCSD shall be permitted to enter without delay for the purpose of performing their specific responsibilities. 501.43 Notification of Spill or Slug Loading A. In the event the discharger is unable to comply with any permit condition due to a breakdown of equipment, accidents, or human error, or the •a Page 64 of 91 discharger has reasonable opportunity to know that his discharge will exceed the discharge provisions of the user's permit, Sections 201 A &BQ or Table I, Local Discharge Limits, the discharger shall immediately notify the 1)shisEOCSD by telephone. If the material discharged to the sewer has the potential to cause or result in a fire or explosion hazard, the discharger shall immediately notify the local fire department and the 1)AWnEOCSD. B. Confirmation of this notification shall be made in writing no later than five (5)working days from the date of the incident. The written notification shall state the date of the incident, the reasons for the discharge or spill, what steps were taken to immediately correct the problem, and what steps are being taken to prevent the problem from recurring. C. Such notification shall not relieve the user of any expense, loss, damage or other liability which may be incurred as a result of damage or loss to the DistastOCSD or any other damage or loss to person or property; nor shall such notification relieve the user of any fees or other liability which may be imposed by this Ordinance or other applicable law. 501.54 Notification of Bypass A. Bypass of industrial wastewater to the sewerage system is prohibited. The DieKisEOCSD may take enforcement action against the user, unless: 1. Bypass was unavoidable because it was done to prevent loss of life, personal injury, or severe property damage; 2. There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes, elective slow-down or shut-down of production units or maintenance during periods of production downtime. This condition is not satisfied if adequate backup equipment could have been feasibly installed in the exercise of reasonable engineering judgment to prevent a bypass which occurred during normal periods of equipment downtime or preventative maintenance; and 3. The permittee submitted notices as required under Section Artisle 501.4(B). B. If a permittee knows in advance of the need for a bypass, it shall submit a written request to allow the bypass to the DistristOCSD, if possible, at least ten (10) days before the date of the bypass. C. The DlatrietOCSD may approve an anticipated bypass at its sole discretion after considering its adverse effects, and the DistcistOCSD f Ha< mtMs anJ Se1L n :sALLnra .ie ,oATcmitxx M Fi es\OLKt]lQrl 0120 DMII Berl t Page 65 of 91 determines that the conditions listed in Section 501_54(A)(1-3) are met. D. A permittee shall provide telephone notification to the DistFiG OCSD of an unanticipated bypass that exceeds its permitted discharge limits within four hours from the time the permittee becomes aware of the bypass. A written report shall also be provided within five (5) days of the time the permittee becomes aware or could reasonably have been aware of the bypass. The report shall contain a description of the bypass and its cause; the duration of the bypass, including exact dates and times, and, if the bypass has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, and prevent recurrence of the bypass. Failure to submit oral notice or written report may be grounds for permit revocation. 'N cPod SnN, s skl W'Qa,TSMMraiv IMenW FdesQLM d 01 RWJ 1 li,lnr _ Page 66 of 91 ARTICLE 6 ENFORCEMENT 600. PURPOSE AND SCOPE A. The Board finds that in order for the DietriGEOCSD to comply with the laws, regulations, and rules imposed upon it by Regulatory Agencies and to ensure that the 13i&GEOCSD's sewerage facilities and treatment processes are protected and are able to operate with the highest degree of efficiency, and to protect the public health and environment, specific enforcement provisions must be adopted to govern the discharges to the gist iw0CSD's system by industrial discharge permittees. B. To ensure that all interested parties are afforded due process of law and that non-compliance and violations are resolved as soon as possible, the general policy of the PistriGEOCSD is that: 1. Any determination relating to a Probation Order, Enforcement Compliance Schedule Agreement(ECSA), or Regulatory Compliance Schedule Agreement(RCSA)will be made by the Division Head of the Source Control Division, with a right of appeal by the permittee to the General Manager pursuant to the procedures set forth in Section 617. 2. A user, permittee, or applicant for a permit may request the Steering Committee to hear an appeal of the General Manager's decision pursuant to Section 618. Such request maybe granted or denied by the Steering Committee. 3. Any permit suspension or revocation recommended by the Source Control Division Head will be heard and a recommendation made to the General Manager by a i3istN 0CSD Department Head or other person designated by the General Manager with a right of appeal of the General Manager's order by the permittee to the Steering Committee pursuant to the provisions of Section 618. 4. Actions and decisions by the Division Head or Department Head are made pursuant to a delegation of authority by the General Manager as authorized by Section 107 of this Ordinance. 5. The Board of Directors may adopt rules of procedure to establish the conduct of certain administrative proceedings. C. The IgistrietOCSD, at its discretion, may utilize any one, combination, or all 1Oou,manL nnJ 5514 n..\ nvnr kl1 n. , ,\iem r Mlnn File. lK I MQ J D 1 2DM QM11 ROV1 Page 67 of 91 enforcement remedies provided in Article 6 in response to any permit or Ordinance violation. 601. DETERMINATION OF NON-COMPLIANCE WITH DISCHARGE LIMITS A. Sampling Procedures 1. Sampling of all permittees shall be conducted in the time, place, manner, and frequency determined at the sole discretion of the QWACtOCSD. 2. Noncompliance with mass emission rate limits, concentration limits, permit discharge conditions, or any discharge provision of this Ordinance may be determined by an analysis of a grab or composite sample of the effluent of a user. Non-compliance with mass emission rate limits shall be determined by an analysis of a composite sample of the user's effluent, except that a grab sample may be used to determine compliance with mass emission rate limits when the discharge is from a closed (batch) treatment system in which there is no wastewater flow into the system when the discharge is occurring, the volume of wastewater contained in the batch system is known, the time interval of discharge is known, and the grab sample is homogeneous and representative of the discharge. 3. Any sample taken from a sample point is considered to be representative of the discharge to the public sewer. 602. ENFORCEMENT PROCEDURES AND APPLICABLE FEES A. Self-Monitoring Requirements as a Result of Non-Compliance 1. If analysis of any sample obtained by the ID RtrisfOCSD or by a permittee shows non-compliance with the applicable wastewater discharge limits set forth in the Ordinance or in the permittee's discharge permit, the BistriG OCSD may impose self-monitoring requirements on the permittee. 2. A permittee shall perform required self-monitoring of constituents in a frequency, at the specific location, and in a manner directed by the DisW OCSD. 3. All analyses of self-monitoring samples shall be performed by an independent laboratory acceptable to the BiskistOCSD and submitted to the DistristOCSD in a form and frequency determined by the BiGW OCSD. e1 Is untl Sn,lin nla sb11w SMlin .I nr n , Fil 1 20 mllR II L3 po Page 68 of 91 4. All self-monitoring costs shall be borne by the permittee. 5. Nothing in this section shall be deemed to limit the authority of the 9istriG OCSD to impose self-monitoring as a permit condition. B. Purpose of Non-Compliance Sampling Fees The purpose of the non-compliance sampling fee is to compensate the DistrisfOCSD for costs of additional sampling, monitoring, laboratory analysis, treatment, disposal, and administrative processing incurred as a result of the non-compliance, and shall be in addition to and not in lieu of any penalties as may be assessed pursuant to Sections 615 and 616. C. Non-Compliance Sampling Fees for Composite Samples 1. Each violation of a permittee's permit limit or condition is a violation of this Ordinance. 2. a) If analysis of any composite sample of a permittee's discharge obtained by the 9isNistOCSD shows a major violation by the permittee of the mass emission rates or concentration limits specified in the permittee's discharge permit or in this Ordinance, then the permittee shall pay non- compliance sampling fees to the 8istristOCSD pursuant to fee schedules adopted by the DiWetOCSD's Board of Directors. b) If analysis of any composite sample of a permittee's discharge obtained by the DisNi6tOCSD shows a minor violation by the permittee of the mass emission rates or concentration limits specified in the permittee's discharge permit or in this Ordinance, then the D gtr:istOCSD may impose non-compliance sampling fees pursuant to fee schedules adopted by the Distri6tOCSD's Board of Directors. 3. The fees specified in subsection 602.C.2.(a), C.2.(b) and D herein shall be imposed for each date on which the Distr QCSD conducts sampling as a result of a violation by a permittee. D. Non Compliance Sampling Fees for Grab Samples and Self-Monitoring Results 1. If analysis of any grab sample analysis of a permittee's discharge shows non-compliance with any concentration limits as set forth in 0 o e n 'i�nr RP4B4B11&-tl_Bi-20B8-B9IHYBWB.tlW Page 69 of 91 the user's permit or in this Ordinance, the 9istri OCSD may impose non-compliance sampling fees, pursuant to fee schedules adopted by the 1)stristOCSD's Board of Directors, for sampling conducted by the DistA OCSD as a result of a violation by the permittee. 2. If any self-monitoring analysis of a permittee's discharge shows non-compliance with any concentration limits or mass emission rates as set forth in the user's permit or in this Ordinance, the D StFistOCSD may impose non-compliance sampling fees, pursuant to fee schedules adopted by the DiskictOCSD's Board of Directors, for sampling conducted by the 84iristOCSD as a result of a violation by the permittee. 602.1 Probation Order A. Grounds In the event the Division Head determines that a permittee has violated any provision of this Ordinance, or the terms, conditions and limits of its discharge permit, or has not made payment of all amounts owed to the Disti: OCSD for user charges, noncompliance fees or any other fees, the General Manager may issue a Probation Order, whereby the permittee must comply with all directives, conditions and requirements therein within the time prescribed. B. Provisions The issuance of a Probation Order may contain terns and conditions including, but not limited to, installation of pretreatment equipment and facilities, requirements for self-monitoring, submittal of drawings or technical reports, operator certification, audit of waste minimization practices, payment of fees, limits on rate and time of discharge, or other provisions to ensure compliance with this Ordinance. C. Probation Order- Expiration A Probation Order issued by the General Manager shall be in effect for a period not to exceed ninety(90) days. 602.2 Enforcement Compliance Schedule Agreement(ECSA) A. Grounds Upon determination that a permittee is in noncompliance with the terms, conditions or limits specified in its permit or any provision of this Ordinance, and needs to construct and/or acquire and install equipment related to pretreatment, 'tD nls..wSmt.n•4e.g,,li 11A Siam .. L ,NPile1 Kt1 p 120M DNXROI 3 �n _ Page 70 of 91 the General Manager may require the permittee to enter into an ECSA which will, upon the effective date of the ECSA, amend the permittee's permit. The ECSA shall contain terms and conditions by which a perrnittee must operate during its term and shall provide specific dates for achieving compliance with each term and condition for construction and/or acquisition and installation of required equipment related to pretreatment. B. Provisions The issuance of an ECSA may contain terms and conditions including but not limited to requirements for self-monitoring, installation of pretreatment equipment and facilities, submittal of drawings or reports, operator certification, audit of waste minimization practices, payment of fees, limits on rate and time of discharge, deposit of performance guarantee, interim limits. or other provisions to ensure compliance with this Ordinance. C. ECSA- Payment of Amounts Owed The DistrietOCSD shall not enter into an ECSA until such time as all amounts owed to the Bis6stOCSD, including user fees, noncompliance sampling fees, deposits, or other amounts due are paid in full, or an agreement for deferred payment secured by collateral or a third party, is approved by the General Manager. Failure to pay all amounts owed to the DistF: OCSD shall be grounds for permit suspension or permit revocation as set forth in Section 604 and 605. D. ECSA- Permit Suspension/Revocation If compliance is not achieved in accordance with the terms and conditions of an ECSA during its term, the General Manager may issue an order suspending or revoking the discharge permit pursuant to Section 604 or 605 of this Ordinance. 603. REGULATORY COMPLIANCE SCHEDULE AGREEMENT (RCSA) A. Grounds If at any time subsequent to the issuance of a Wastewater Discharge Permit to an industrial user, Federal Categorical Pretreatment Standards are adopted or revised by the United States Environmental Protection Agency, or in the event the DiRtN OCSD enacts revised discharge limits, the General Manager, upon determination that an industrial user would not be in compliance with the adopted or revised limits, may require the industrial user to enter into a RCSA with the [)StF tOCSD under terms and conditions that would provide for achieving compliance with all new standards by the industrial user on a specific date. The RCSA shall have a maximum term of two hundred-seventy (270) days. B. Provisions ..wK s. ,,,.,na•. �rA,s 1w, remomn. filemet caes'ni Kiacea m ma DrA Rwn a _ Page 71 of 91 The issuance of a RCSA may contain terms and conditions including but not limited to requirements for installation of pretreatment equipment and facilities, submittal of drawings or reports, waste minimization practices or other provisions to ensure compliance with this Ordinance. C. RCSA- Non-Compliance Sampling Fee During the period said RCSA is in effect, any discharge by permittee in violation of the RCSA will require payment of non-compliance sampling fees in accordance with Article 6. 604. PERMIT SUSPENSION A. Grounds The General Manager may suspend any permit when it is determined that a permittee: 1. Fails to comply with the terms and conditions of either an ECSA or RCSA. 2. Knowingly provides a false statement, representation, record, report, or other document to the DistriGtOCSD. 3. Refuses to provide records, reports, plans, or other documents required by the DistristOCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 4. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 5. Fails to report significant changes in operations or wastewater constituents and characteristics. 6. Violates a Probation Order. 7. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to the DiskistOCSD for user charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Violates any condition or limit of its discharge permit or any provision of the Die#istOCSD's Ordinance. Page 72 of 91 B. Notice/Hearing When the General Manager has reason to believe that grounds exist for permit suspension, he shall give written notice thereof by certified mail to the permittee setting forth a statement of the facts and grounds deemed to exist, together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the suspension hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the DistF G OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for suspension of the permit, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the permittee or its legal counsel/representative at the permittee's business address. C. Effect 1. Upon an order of suspension by the General Manager becoming final, the permittee shall immediately cease and desist its discharge and shall have no right to discharge any industrial wastewater, directly or indirectly to the DistriGEOCSD's system for the duration of the suspension. All costs for physically terminating and reinstating service shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of suspension. 3. An order of permit suspension issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Steering Committee pursuant to Section 618 no later than 5:00 p.m. C%Docprwnls and5M' MrskV ocnl sot' us\Temno}y , el esh]IKdrT `12005 nra I,R.oI La in Page 73 of 91 on the fifteenth (15th) day following such mailing. 605. PERMIT REVOCATION A. Grounds The General Manager may revoke any permit when it is determined that a permittee: 1. Knowingly provides a false statement, representation, record, report, or other document to the Disti: OCSD. 2. Refuses to provide records, reports, plans, or other documents required by the DisfriAEOCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 3. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 4. Fails to report significant changes in operations or wastewater constituents and characteristics. S. Fails to comply with the terms and conditions of an ECSA, permit suspension, or probation order. 8. Discharges effluent to the DistristOCSD's sewerage system while its permit is suspended. 7. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to the DistristOCSD for user charges, noncompliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Causes interference with the DistrisEOCSDIs collection, treatment, or disposal system. 10. Fails to submit oral notice or written report of bypass occurrence. 11. Violates any condition or limit of its discharge permit or any provision of the DistristOCSD's Ordinance. B. Notice/Hearin When the General Manager has reason to believe that grounds exist for the Page 74 of 91 revocation of a permit, he shall give written notice by certified mail thereof to the permittee setting forth a statement of the facts and grounds deemed to exist together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The revocation hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the DiAtF OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for permanent revocation of the permit, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the permittee or its legal counsel/representative at the permittee's business address. In the event the General Manager determines to not revoke the permit, he may order other enforcement actions, including, but not limited to, a temporary suspension of the permit, under terms and conditions that he deems appropriate. C. Effect 1. Upon an order of revocation by the General Manager becoming final, the permittee shall permanently lose all rights to discharge any industrial wastewater directly or indirectly to the DistFi OCSD'S system. All costs for physical termination shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of revocation. 3. Any future application for a permit at any location within the DistA OCSD by any person subject to an order of revocation will C\Dnc menP.and SbI1ny1 IN S i,g,'T mmrvo v Inl—,Fd.e Ql K13Q,. 01 20M D.11 RW I Page 75 of 91 be considered by the DistrictOCSD after fully reviewing the records of the revoked permit, which records may be the basis for denial of a new permit. 4. An order of permit revocation issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Steering Committee pursuant to Section 616 no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 606. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS A Wastehaulers noncompliance with permit requirements shall be determined by an analysis of a sample of the discharge for any constituent or conditions specified in the Wastehaulers discharge permit or this Ordinance. If the discharge of a Wastehauler is found by the analysis to be in excess of the concentration limits specified in the Wastehaulers discharge permit or in this Ordinance, the Wastehauler shall, after receiving a demand from the &isEristOCSD, identify in writing, all sources of the discharge. Even if it is established to the satisfaction of the General Manager that the origin of the discharge is domestic septaae, or septic wash, the DistrictOCSD may still elect not to accept waste from that particular source. If the discharge is industrial wastewater from an industrial source(s) and exceeds permit concentration limits or limits specified in this Ordinance, the following shall apply: A. First Violation 1. The permittee shall pay a non-compliance sampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for five (5) days. B. Second Violation 1. The permittee shall pay a non-compliance sampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for ten (10) days. 3. The Wastehauler permit may be revoked in accordance with Section 606. 607. DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS ("��OGuml1' rnKlrn' Sm lVCRemomory LnurrM F 11Q1 N13\Ptl O t 1105 Qrxl 1b0I rJ�^ -012C08&r�NReWgtloc Page 76 of 91 A. Any person who discharges any waste which causes or contributes to any obstruction, interference, damage, or any other impairment to the DistriGEOCSD's sewerage facilities or to the operation of those facilities shall be liable for all costs required to clean or repair the facilities together with expenses incurred by the DistF QCSD to resume normal operations. Such discharge shall be grounds for permit revocation. A service charge of twenty-five percent(25%) of DisNiGEOCSD costs shall be added to the costs and charges to reimburse the PAW stOCSD for miscellaneous overhead, including administrative personnel and record keeping. The total amount shall be payable within forty-five (45) days of invoicing by the Dis406EOCSD. B. Any person who discharges a waste which causes or contributes to the DistOGIOCSD violating its discharge requirements established by any Regulatory Agency incurring additional expenses or suffering losses or damage to the facilities, shall be liable for any costs or expenses incurred by the DistristOCSD, including regulatory fines, penalties, and assessments made by other agencies or a court. 608. INDUSTRIAL WASTE PASS THROUGH Any person whose discharge results in a pass through event affecting the DiskiGEOCSD or its sewerage facilities shall be liable for all costs associated with the event, including treatment costs, regulatory fines, penalties, assessments, and other indirect costs. The discharger shall submit to the DisiriGtOCSD plans to prevent future recurrences to the satisfaction of the DisfriGtOCSD. 606. PUBLICATION OF VIOLATION Upon a determination in a permit suspension, permit revocation, or civil penalty proceedings that a user has discharged in violation of its permit or any provision under this Ordinance, the DistriGEOCSD may require that the user notify the public and/or other users of the DistristOCSD's sewerage facilities of such violation, of actions taken to correct such violation, and of any administrative or judicial orders or penalties imposed as a result of such violation. 610. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE In accordance with Federal Regulations, the DiskiG OCSD shall annually cause to be published the names of all industrial users in significant non-compliance. Upon a minimum of a thirty (30)-day notification to the user, said publication shall be made in the newspaper of the largest daily circulation published in the Distr7stOCSD's service area. 611. PUBLIC NUISANCE C\Dun,mentc and mua R,,K KiTOM 01 2006 Daft RNv1 1 ?, Io IL'Wp _ B06DW4PwW.dW Page 77 of 91 Discharge of wastewater in any manner in violation of this Ordinance or of any order issued by the General Manager, as authorized by this Ordinance, is hereby declared a public nuisance and shall be corrected or abated as directed by the General Manager. Any person creating a public nuisance is guilty of a misdemeanor. 612. TERMINATION OF SERVICE A. The BistrieEOCSD, by order of the General Manager, may physically terminate sewerage service to any property as follows: 1. On a term of any order of emergency suspension or revocation of a permit; or 2. Upon the failure of a person not holding a valid discharge permit to immediately cease discharge, whether direct or indirect, to the DistristOCSD's sewerage facilities. B. All costs for physical termination shall be paid by the user as well as all costs for reinstating service. 613. EMERGENCY SUSPENSION ORDER A. The DietristOCSD may, by order of the General Manager, suspend sewerage service or Wastehauler discharge service when the General Manager determines that such suspension is necessary in order to stop an actual or impending discharge which presents or may present an imminent or substantial endangerment to the health and welfare of persons, or to the environment, or may cause interference to the DisMFictOCSD's sewerage facilities, or may cause the DistriG OCSD to violate any State or Federal Law or Regulation. Any discharger notified of and subject to an Emergency Suspension Order shall immediately cease and desist the discharge of all industrial wastewater to the sewerage system. B. As soon as reasonably practicable following the issuance of an Emergency Suspension Order, but in no event more than five (5) days following the issuance of such order, the General Manager shall hold a hearing to provide the user the opportunity to present information in opposition to the issuance of the Emergency Suspension Order. Such a hearing shall not stay the effect of the Emergency Suspension Order. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the Diq#i OCSD's General Counsel. The General Manager shall issue a written decision and order within two (2) business days following the hearing,which decision shall be 'lbenmen s nnJ 'etli,x \ allo 4nL,ral}alyll s\Tem r I,nernal File N131 J 01 D1 l R.1l Page 78 of 91 sent by certified mail to the user or its legal counsel/representative at that user's business address. The decision of the General Manager following the hearing shall be final and not appealable. 614. INJUNCTION Whenever a discharger of wastewater is in violation of or has the reasonable potential to violate any provision of this Ordinance, permit condition, or any Federal Pretreatment Standard or requirement as set forth in 40 CFR Section 403.8 at seq., fails to submit required reports, or refuses to allow the Disk QCSD entry to inspector monitor the user's discharge, the DistristOCSD may petition the Superior Court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate to restrain the continued violation or to prevent threatened violations by the discharger. 616. CIVIL PENALTIES A. Authority All users of the DistF OCSD's system and facilities are subject to enforcement actions administratively or judicially by the Di,k OCSD, U.S. EPA, State of California Regional Water Quality Control Board, or the County of Orange District Attorney. Said actions may be taken pursuant to the authority and provisions of several laws, including but not limited to: (1) Federal Water Pollution Control Act, commonly known as the Clean Water Act (33 U.S.C.A. Section 1251 et seq.); (2) California Porter-Cologne Water Quality Control Act (California Water Code Section 13000 at seq.); (3) California Hazardous Waste Control Law (California Health & Safety Code Sections 25100 to 25250); (4) Resource Conservation and Recovery Act of 1976 (42 U.S.C.A Section 6901 at seq.); and (5) California Government Code, Sections 54739-54740. B. Recovery of Fines or Penalties In the event the DiskistOCSD is subject to the payment of fines or penalties pursuant to the legal authority and actions of other regulatory or enforcement agencies based on a violation of law or regulation or its permits, and said violation can be established by DistFietOCSD, as caused by the discharge of any user of the DiskistOCSD's system which is in violation of any provision of the Distr+sfOCSD's Ordinance or the user's permit, Distrip OCSD shall be entitled to recover from the user all costs and expenses, including, but not limited to, the full amount of said fines or penalties to which it has been subjected. C. Ordinance Pursuant to the authority of California Government Code Sections 54739 - 54740, any person who violates any provision of this Ordinance; any permit c:lOocumaoL u,a mI Sehwg1 ,,Temp0,a,V In,emel FuesroLKI Mtd Ol 2006 omu Rxw t ig�es _ evw.ax Page 79 of 91 condition, prohibition or effluent limit; or any suspension or revocation order shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. Pursuant to the authority of the Clean Water Act, 33 U.S.C. Section 1251 at seq., any person who violates any provision of this Ordinance, or any permit condition, prohibition, or effluent limit shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. The General Counsel of the DistristOCSD, upon order of the General Manager, shall petition the Superior Court to impose, assess, and recover such penalties, or such other penalties as the DistF OCSD may impose, assess, and recover pursuant to Federal and/or State legislative authorization. D. Administrative Civil Penalties 1. Pursuant to the authority of California Government Code Sections 54740.5 and 54740.6, the DistristOCSD may issue an administrative complaint to any person who violates: a) any provision of this Ordinance; b) any permit condition, prohibition, or effluent limit; or c) any suspension or revocation order. 2. The administrative complaint shall be served by personal delivery or certified mail on the person and shall inform the person that a hearing will be conducted, and shall specify a hearing date within sixty (60)days following service. The administrative complaint will allege the act or failure to act that constitutes the violation of the DistriA OCSD's requirements,the provisions of law authorizing civil liability to be imposed, and the proposed civil penalty. The matter shall be heard by the General Manager or his designee. The person to whom an administrative complaint has been issued may waive the right to a hearing, in which case a hearing will not be conducted. 3. At the hearing, the person shall have an opportunity to respond to the allegations set forth in the administrative complaint by presenting written or oral evidence. The hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the DiskistOCSD's General Counsel. 4. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of the facts found to be true, a determination of the issues presented, conclusions, and a C AOocume 11,..d wI Fi I o,OLK13grJ . M Dr.fl Ravi IJ.rIorN WegWKCOM'y0e^gMBgB _ Page 80 of 91 recommendation. 5. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for assessment of a civil penalty against the person, he shall issue his decision and order in writing within thirty(30) calendar days after the conclusion of the hearing by his designee. 6. If, after the hearing or appeal, if any, it is found that the person has violated reporting or discharge requirements, the General Manager or Steering Committee may assess a civil penalty against that person. In determining the amount of the civil penalty, the General Manager or Steering Committee may take into consideration all relevant circumstances, including but not limited to the extent of harm caused by the violation, the economic benefit derived through any non-compliance, the nature and persistence of the violation, the length of time over which the violation occurs, and corrective action, if any, attempted or taken by the person involved. 7. Civil penalties may be assessed as follows: a) In an amount which shall not exceed two thousand dollars ($2,000.00) for each day for failing or refusing to furnish technical or monitoring reports; b) In an amount which shall not exceed three thousand dollars ($3,000.00) for each day for failing or refusing to timely comply with any compliance schedules established by the gis&*OCSD; c) In an amount which shall not exceed five thousand dollars ($5,000.00) per violation for each day of discharge in violation of any waste discharge limit, permit condition, or requirement issued, reissued, or adopted by the DIs#wAOCSD; d) In any amount which does not exceed ten dollars ($10.00) per gallon for discharges in violation of any suspension, revocation, cease and desist order or other orders, or prohibition issued, reissued, or adopted by the gistrietOCSD; 8. An order assessing administrative civil penalties issued by the General Manager shall be final in all respects on the thirty-first (31st) day after its is served on the person unless an appeal and request for hearing is filed with the Steering Committee pursuant to Section 618 no later than the thirtieth (30th) day following such GVLuI-EPIKv J alSa1lo4TAmnuo a F'ez104 K13Q,e10120M Dn11 R-4I Page 81 of 91 mailing. An order assessing administrative civil penalties issued by the Steering Committee shall be final upon issuance. 9. Copies of the administrative order shall be served on the party served with the administrative complaint, either by personal service or by registered mail to the person at his business or residence address, and upon other persons who appeared at the hearing and requested a copy of the order. 10. Any person aggrieved by a final order issued by the Steering Committee, after granting review of the order of the General Manager, may obtain review of the order of the Steering Committee in the superior court, pursuant to Government Code Section 54740.6, by filing in the court a petition for writ of mandate within thirty (30) days following the service of a copy of the decision or order issued by the Steering Committee. 11. Payment of any order setting administrative civil penalties shall be made within thirty (30) days of the date the order becomes final. The amount of any administrative civil penalties imposed which have remained delinquent for a period of sixty (60) days shall constitute a lien against the real property of the discharger from which the discharge resulting in the imposition of the civil penalty originated. The lien shall have no effect until recorded with the county recorder. The Distr+GEOCSD may record the lien for any unpaid administrative civil penalties on the ninety-first (91st) day following the date the order becomes final. 12. No administrative civil penalties shall be recoverable under Section 615.D for any violation for which the P stF OCSD has recovered civil penalties through a judicial proceeding filed pursuant to Government Code Section 54740. 616. CRIMINAL PENALTIES Any person who violates any provision of this Ordinance is guilty of a misdemeanor, which upon conviction is punishable by a fine not to exceed $1,000.00, or imprisonment for not more than thirty (30) days, or both. Each violation and each day in which a violation occurs may constitute a new and separate violation of this Ordinance and shall be subject to the penalties contained herein. 617. APPEALS TO GENERAL MANAGER A. General J Ylocun n,..nn,l ........S. a pnkal M.I .\Ta li Bmxl FI¢5. 1' ,E 01 DfNI v11 Pape 82 of 91 Any user, permit applicant or permittee affected by any decision, action or determination made by the Division Head may file with the General Manager a written request for an appeal hearing. The request must be received by the BistfistOCSD within fifteen (15) days of mailing of notice of the decision, action, or determination of the DEW OCSD to the appellant. The request for hearing shall set forth in detail all fads supporting the appellant's request. B. Notice The General Manager shall, within fifteen (15) days of receiving the request for appeal, and pursuant to Section 107, designate a Department Head or other person to hear the appeal and provide written notice to the appellant of the hearing date, time and place. The hearing date shall not be more than thirty (30) days from the mailing of such notice by certified mail to the appellant unless a later date is agreed to by the appellant. If the hearing is not held within said time due to actions or inactions of the appellant, then the staff decision shall be deemed final. C. Hearin At the hearing, the appellant shall have the opportunity to present information supporting its position concerning the Division Head's decision, action or determination. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the 8istristOCSD's General Counsel. D. Written Determination After the conclusion of the hearing, the Department Head (or other designee) shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation whether to uphold, modify or reverse the Division Head's original decision, action or determination. Upon receipt of the written report, the General Manager shall make his determination and shall issue his decision and order within thirty (30) calendar days of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. The order of the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the appellant unless a request for hearing is filed with the Steering Committee pursuant to Section 618, no later than 5:00 p.m. on the fifteenth day following such mailing. 618. APPEALS TO THE STEERING COMMITTEE 11+Doc ime n, ,,,a 3,111.41nu: wr;knl n 1 seJin ,y ,gi�il.JIIIC/-1 Flly1,01 K1 N1111 n,20M W,RW I :,,,InrpJtl.Ri Page 83 of 91 A. General Any user, permit applicant, or permittee adversely affected by a decision, action, or determination made by the General Manager may, prior to the date that the General Manager's order becomes final, file a written request for hearing before the Steering Committee of the Joint Boards of Directors accompanied by an appeal fee in the amount established by a 6^^-.,�.e'F sQtw# - fee ordinance of the DistrietOCSD's Board of Directors. The request for hearing shall set forth in detail all the issues in dispute for which the appellant seeks determination and all facts supporting appellant's request. No later than sixty (60) days after receipt of the request for hearing, the Steering Committee shall either set the matter for a hearing, or deny the request for a hearing. A hearing shall be held by the Steering Committee within sixty-five (65) days from the date of determination granting a hearing, unless a later date is agreed to by the appellant and the Steering Committee. If the matter is not heard within the required time, due to actions or inactions of the appellant, the General Manager's order shall be deemed final. B. Granting Request for Hearing The Steering Committee shall grant all requests for a hearing on appeals concerning permit suspension, revocation, or denial. Whether to grant or deny the request for a hearing on appeals of other decisions of the General Manager shall be within the sole discretion of the Steering Committee. C. Aooeal Fee Refund The appeal fee shall be refunded if the Steering Committee denies a hearing or reverses or modifies, in favor of the appellant, the order of the General Manager. The fee shall not be refunded if the Steering Committee denies the appeal. D. Written Determination After the hearing, the Steering Committee shall make a determination whether to uphold, modify, or reverse the decision, action, or determination made by the General Manager. The decision of the Steering Committee shall be set forth in writing within sixty- five(65) days after the close of the hearing and shall contain a finding of the facts found to be true, the determination of issues presented, and the conclusions. The written decision and order of the Steering Committee shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. s u,= :_h.+i s«m„as*.mn a F emo�Kia�ae m zoos o,� ern a � _ Page 84 of 91 The order of the Steering Committee shall be final upon its adoption. In the event the Steering Committee fails to reverse or modify the General Manager's order, it shall be deemed affirmed. 618.1 Appeal of Charges and Fees Any user, permit applicant, or permittee affected by any decision, action, or determination by the DistrisfOCSD, relating to fiscal issues of the Dis"OCSD in which the user, applicant, or permittee is located, including but not limited to the imposition and collection of fees, such as connection charges, sewer use charges, special purpose discharge use charges and Wastehauler fees, may request that the DistrietOCSD reconsider imposition of such fees or charges. Following review of such a request, the DisRistOCSD shall notify the user, permit applicant, or permittee by certified mail of the DiskiG OCSD's decision on the reconsideration request. Any user, permit applicant, or permittee adversely affected by the DistfistOCSD's decision on the reconsideration request may file an appeal which shall be heard by the Board of Directors of the District in which the appellants property is located. The notice of appeal must be received by the D6rtF OCSD within thirty (30) days of the mailing of the OCSD's District% decision on the reconsideration request. Notwithstanding the foregoing, appeals of non-compliance sampling fees shall be made pursuant to the appeal procedures set forth in Sections 617 and 618. 619. PAYMENT OF CHARGES A. Except as otherwise provided, all fees, charges and penalties established by this Ordinance are due and payable upon receipt of notice thereof. All such amounts are delinquent if unpaid forty-five (45) days after date of invoice. B. Any charge that becomes delinquent shall have added to it a penalty in accordance with the following: 1. Forty-six (46) days after date of invoice, a basic penalty of ten percent(10%) of the base invoice amount, not to exceed a maximum of$1,000.00; and 2. A penalty of one and one-half percent(1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the forty-sixth (46th) day after date of invoice. C. Any invoice outstanding and unpaid after ninety (90)days shall be cause for immediate initiation of permit revocation proceedings or immediate suspension of the permit. cu�w.,m ana ssu wsraawnki��.M.reinn ,r e, a ar as�o ei a 6120enr.msaW Page 86 of 91 D. Penalties charged under this Section shall not accrue to those invoices successfully appealed, provided the DistriAEOCSD receives written notification of said appeal prior to the payment due date. E. Payment of disputed charges is still required by the due date during DistrictOCSD review of any appeal submitted by permittees. 619.1 Collection of Delinquent Accounts Collection of delinquent accounts shall be in accordance with the DiskistOCSD's policy resolution establishing procedures for collection of delinquent obligations owed to the DistristOCSD, as amended from time to time by the Board of Directors. Any such action for collection may include an application for an injunction to prevent repeated and recurring violations of this Ordinance. 620. RECOVERY OF COSTS INCURRED BY DISTR=OCSD In the event permittee fails to comply with any of the terms and conditions of the DistrisEOCSD's Ordinance, a probationary order, a permit suspension or revocation, an ECSA, RCSA, or a permit issued hereunder, the 1)istri6EOCSD shall be entitled to reasonable attorney's fees and costs which may be incurred in order to enforce any of said terms and conditions, with or without filing proceedings in court. 621. FINANCIAL SECURITY/AMENDMENTS TO PERMIT A. Comoliance Deposit Permittees that have been subject to enforcement and/or collection proceedings may be required to deposit with the DistrisEOCSD an amount determined by the General Manager as necessary to guarantee payment to DishistOCSD of all charges, fees, penalties, costs and expenses that may be incurred in the future, before permission is granted for further discharge to the sewer. B. Delinquent Accounts The 1)OF G =SD may require an amendment to the permit of any permittee who fails to make payment in full of all fees and charges assessed by the Distr QCSD, including reconciliation amounts, delinquency penalties, and other costs or fees incurred by Permittee. C. Bankruptcy Every Permittee filing any legal action in any court of competent jurisdiction, including the United States Bankruptcy Court,for purposes of discharging its C. menls nnJ Selruxo n wskul nvA ' s\iem r Im¢nvr Fle 1. 0 01 [1MI Fw11 Page 86 of 91 financial debts or obligations or seeking court-ordered, protection from its creditors, shall, within ten (10) days of filing such action, apply for and obtain the issuance of an amendment to its permit. D. Permit Amendments The BistriotOCSD shall review and examine Permittee's account to determine whether previously incurred fees and charges have been paid in accordance with time requirements prescribed by this Ordinance. The 8istriet0CSD may thereafter issue an amendment to the User's permit in accordance with the provisions of Article 3 and Section 621(E) of this Ordinance. E. Sea 'N An amendment to a waste discharge permit issued pursuant to Sections 621(B), (C), and (D), may be conditioned upon the Permittee depositing financial security in an amount equal to the average total fees and charges for two (2) calendar quarters during the preceding year. Said deposit shall be used to guarantee payment of all fees and charges incurred for future services and facilities furnished by BistristOCSD and shall not be used by the DistristOCSD to recover outstanding fees and charges incurred prior to the Permittee filing and receiving protection from creditors in the United States Bankruptcy Court. F. Return of Security In the event the Permittee makes payment in full within the time prescribed by this Ordinance of all fees and charges incurred over a period of two (2) years following the issuance of an amendment to the permit pursuant to Sections 621(B), (C), and (D), the BisNietOCSD shall either return the security deposit posted by the Permittee or credit their account. 622. JUDICIAL REVIEW A. Purpose and Effect Pursuant to Section 1094.6 of the California Code of Civil Procedure, the DistristOCSD hereby enacts this part to limit to ninety(90) days following final decisions in adjudicatory administrative hearings the time within which an action can be brought to review such decisions by means of administrative mandamus. B. Definitions As used in this Section, the following terms and words shall have the following meanings: 1. Decision shall mean and include adjudicatory administrative C IDoc m St n wnsA'.In .1 S oiQTTemmary llterlroZF,esK KIX,rod 01 200 Draft Rerll L^e Page 87 M 91 decisions that are made after hearing, or after revoking, suspending, or denying an application for a permit or a license. 2. Complete Record shall mean and include the transcript, if any exists, of the proceedings, all pleadings, all notices and orders, any proposed decision by the General Manager, the final decision, all admitted exhibits, all rejected exhibits in the possession of the 8184i OCSD or its offices or agents, all written evidence, and any other papers in the case. 3. Party shall mean a person whose permit has been denied, suspended, or revoked. C. Time Limit for Judicial Review Judicial review of any decision of the 9isttistOCSD or its officer or agent may be made pursuant to Section 1094.5 of the Code of Civil Procedure only if the petition for writ of mandate is filed not later than the ninetieth (90th)day following the date on which the decision becomes final. If there is no provision for reconsideration in the procedures governing the proceedings or if the date is not otherwise specified, the decision is final on the date it is made. If there is provision for reconsideration, the decision is final upon the expiration of the period during which such reconsideration can be sought; provided that if reconsideration is sought pursuant to such provision the decision is final for the purposes of this Section on the date that reconsideration is rejected. D. Preparation of the Record The complete record of the proceedings shall be prepared by the DistristOCSD officer or agent who made the decision and shall be delivered to the petitioner within ninety (90) days after he has filed written request therefor. The Dist OCSD may recover from the petitioner its actual costs for transcribing or otherwise preparing the record. E. Extension If the petitioner files a request for the record within ten (10) days after the date the decision becomes final, the time within which a petition, pursuant to Section 1094.5 of the Code of Civil Procedure, may be filed shall be extended to not later than the thirtieth (301h) day following the date on which the record is either personally delivered or mailed to the petitioner or the petitioner's attorney of record, if appropriate. F. Notice In making a final decision, the 8is#WOCSD shall provide notice to the party that lOo-nm enJ 'e,ln s wvssnl realS IHIQSUSMMaPy lrvem File s KI J Ol 2OWDmft RwlI Page 88 of 91 the time within which judicial review must be sought is governed by Section 1094.6 of the Code of Civil Procedure. G. Administrative Civil Penalties Notwithstanding the foregoing in Section 622, and pursuant to Government Code Section 54740.6,judicial review of an order of the Steering Committee imposing administrative civil penalties pursuant to Section 615.D may be made only if the petition for writ of mandate is filed not later than the thirtieth (3Oth) day following the day on which the order of the Steering Committee becomes final. enl nJ ellu , kn n W SettinWTnmnoia,In,amm Files\OLKI MD" 01200,Dm11 Raves L1J�LaWM5%4G'e Yb i _ Page 89 of 91 ARTICLE 7 SEWER SERVICE CHARGES - CONNECTION CHARGES 701. SANITARY SEWER SERVICE CHARGE Every parcel of real property located within the District which is improved with structures designed for residential, commercial, or industrial use, and connected to the DistrisEOCSD system, shall pay a sanitary sewer service charge in an amount adopted by the Board of Directors by separate Ordinance. 702. CAPITAL FACILITIES CONNECTION CHARGE Every parcel of real property located within the OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD system, shall pay a capital facilities connection charge in an amount adopted by the Board of Directors by separate Ordinance. meMs onJ ' .mwsMY m' I' R m 0 nm F' KIT � Ot pMIP 11 Page 90 of 91 3' ARTICLE 8 SEVERABILITY 801. SEVERABILITY If any provision of these Regulations or the application to any or circumstances is held invalid, the remainder of the regulations or the application of such provision to other persons or other circumstances shall not be affected. 802. GENERAL APPLICATION The provisions of this Ordinance shall apply to all properties within the Distr QCSD 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. Section II: This Ordinance is enacted immediately, in order to preserve the public health and safety, and in order to continue the provision of sewer services by the newly f9FFned P StFiG OCSD. The facts requiring the public health and safety to be preserved are that the regulation of the discharge of industrial and sanitary sewage is regulated by federal and state law, and protection of individuals— health and the environment require that no discharges of untreated sewage/wastewater are allowed to occur that are not in accord with technical specifications and requirements. Section III: Effective Date. This Ordinance shall take effect July 1, 2007. This Qpdinanne shall take eff8Gt immediately upeR adeptien. Section IV. Repeal. Ordinance No. OCSD-01 is hereby repealed. Section IV: 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 greater than two-thirds of the Board of Directors of the Orange County Sanitation District at a Special Regular Meeting held May 23, 2007July- , 1998. Cr Doc m urn15x1 r•1u'ivmr•.kiLLncel'ialinp•:Rxmnc„ I,nfmn F,en _QLKIMQO tr12006 Dmlt Rev11 �3jrinrJ4+tla0��a9aEW Ad01i&E_8i2B W 9raXRerW tloc Page 91 of 91 Chair, Board of Directors Orange County Sanitation District ATTEST: Clerk of the-@eard Orange County Sanitation District Theaaas-L�radlev R. Hooin, General Counsel s nmJ wWJ n-a� srem memn r�zm Kr nod mn rsmrr Page 92 of 91 ADMINISTRATION COMMITTEE Neeen9oam Toea.anr. a/v/o7 a/ss/o7 AGENDA REPORT trem Numbe Item Number ADM07-27 16 Orange County Sanitation District FROM: James D. Ruth, General Manager Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED 2007-08 SEWER SERVICE USER FEES GENERAL MANAGER'S RECOMMENDATION Adopt Ordinance No. OCSD-32, 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-3013: ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES, REVISED TABLE B RE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS REVISED TABLE C RE CAPITAL FACILITIES CAPACITY CHARGES NEW TABLE D RE PLAN CHECK AND INSPECTION FEES. REVISED TABLE E RE SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES (FORMERLY TABLE D), REVISED TABLE F RE ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES (FORMERLY TABLE E). REDESIGNATED TABLE G (FORMERLY TABLE F), REVISED TABLE H RE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE (FORMERLY TABLE G), REVISED TABLE I RE WASTEHAULER CHARGES FOR USE (FORMERLY TABLE H), AND REAFFIRMING ALL OTHER CHARGES a. Motion to read Ordinance No. OCSD-32 by title only and waive reading of said entire ordinance. b. Motion to introduce Ordinance No. OCSD-32, and pass to second reading and public hearing on May 23, 2007. SUMMARY The net effect of adopting the attached rate ordinance will be to increase the single family residential rate, the basis for all sewer service charges, 9.8 percent, or from $165.80 to $182.00, effective July 1, 2007. 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. With 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 of additional future debt financing and interest costs. 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. 2007-08 will be the fifth year of this 5-year plan. 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 9.8%. Included in staffs recommendation on "Adopting Revised Table B re Property Use Classifications for Commercial or Industrial Users" is new proposed use codes for the U.S. Post Office and Open Air Entertainment Venues. These use codes are necessary in order for the District to accurately bill these unique property uses, as further detailed on the attached Staff Report of March 14, 2007. One other proposed change of note pertains to refunding capital facilities capacity charges. The existing ordinance does not allow any refunds of capital facilities capacity charges because of non-use or change of use, or any other reason. Staff is proposing to allow for a capital facilities capacity charge refund for those instances where a connection has not made, and the request for connection is withdrawn within 12 months of the payment date. These capital facilities capacity charges will be refunded upon establishing proof from the City or County of a canceled permit. This revised refund policy will match most public agency refund policies pertaining to building permits. Without a Board action (by 2/3 majority), the SFR rate for 2007-08 will remain at $165.80 per year. The $182 rate recommended for 2007-08 will generate approximately $183.5 million of user fees; an annual increase of$17.0 million over the prior year. There are no extraordinary costs associated with the recommendation. ADDITIONAL INFORMATION Schedule for Implementing Sewer Service Fee Increase 1" Reading of Fee Ordinance April 25, 2007 2n0 Reading, Public Hearing, &Adoption of Fee Ordinance May 23, 2007 Ordinance is Effective in 30 days, or in the New F.Y. July 1, 2007 ne.aw-e.�man ro.,e.ww".ua,eme�c.w a.w,.wa,wi„,o ue:�r.uaa "•^°°° 0b01"' Page 2 Fees per parcel due to County Auditor-Controller August 11, 2007 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%. 6) Ultimately, the Board acted to implement a 15% increase in 2003/04. 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. XWW.! Mda�dPMm RBpv1 7BSEPgantla 16 O,l I—]2dz ReAsad. osu„w Page 3 V 2. Additionally, Operations costs increased by $400M, from $1.313 to $1.713. 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. June 2006 1. The CIP decreased by $549M, from $2.38B to $1.83B as budgeted construction costs were delayed or deferred. 2. The Sanitation District contracted with Carollo Engineers to complete a Revenue Program and Rate Analysis study. The result of these efforts reduced projected 2006-07 and 2007-08 single-family residential rate (SFR) increases, the basis for all sewer service charges, from 20.0% to 9.8%. 3. 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. 4. 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 recommended that these fees be adjusted annually, based on a commonly accepted price indicator, the Engineering News Record Construction Cost Index for Los Angeles, to reflect the current value of the facilities or the current cost of capital projects. ATTACHMENTS 1. Staff Report on Proposed Non-Residential Sewer Service Fee Billing Method Adjustments dated March 14, 2007. 2. Ordinance No. OCSD-32. H'.�EelBO dA, Rep sQW7f ,d PpenEp Repwb`DCONtem 160r,ire e33.Eoc Page 4 March 14, 2007 STAFF REPORT Proposed Non-Residential Sewer Service Fee Billing Method Adjustments Annually, the District considers the need to adjust sewer service fee rates to its residential, commercial, and industrial customers to ensure that the appropriate fees are captured to cover its costs, and that the fees are set proportionate to the service received. This process is completed through the update of the District's rate ordinance that becomes effective 30 days following Board adoption. The adoption process requires a reading at two separate board meetings and a public hearing. Staff is targeting the April board meeting for the first reading of the newly proposed ordinance with a tentative 9.8 percent increase in all rates. In addition, staff will be requesting a new U. S. Post Office user fee rate and an Entertainment Venue—Open Air Facilities rate, based on attendance, to ensure that these customers are paying their fair share. Background The major revenue source of the Sanitation District is the sewer service fee that is assessed on each improved parcel within the District's service area through the property tax bill of the County of Orange (County), and then subsequently collected and remitted by the County to the District. The sewer service fee covers the District's cost of collection, treatment and disposal of all wastewater received from the individual parcels. The fees are established by ordinance of the District Board and vary according to the use of the parcel and the level of service that is required. The Sanitation District service area includes over 550,000 parcels, approximately 526,500 of which indicate improvements and are included in the District's sewer service fee program. Of these 526,500 improved parcels, approximately 477,500 parcels are single or mufti-family residential parcels. The remaining 49,000 parcels consist of commercial, industrial, and governmental classifications, and have the most potential for reclassification and additional revenue. The single-family residents (SFR) are assessed a flat rate fee, the multi-family residents are charged a flat rate fee on a per unit basis, and commercial, industrial, and governmental parcels are assessed a fee per 1,000 square foot of building improvements based on their individual property user fee code. ocSD • P.o.BOX8127 0 FmnWnVal%y.f 9272M127 • (714)%2-2411 Sewer Service Fee Billing Methods March 14, 2007 Page 2 of 3 Commercial user fees generate approximately $70 million each year. These properties are billed a rate per thousand square feet which corresponds to the specific use code of their property. The use code and square footage have been obtained through the Orange County Assessor Office Data Center, a main frame program, updated every 12 months. In October of 2003, the Revenue Division moved this database in-house and designed a program specific for our use. As a result, we have more flexibility and total control over how the database is used. For example, when construction or demolition takes place, we can ensure square footage changes are effective immediately. Our foremost concern is the accuracy of the use code and square footage information that we use to calculate the fees for our customers. During the course of the past fiscal year, staff has evaluated the use codes and billing methods that are currently in our ordinance and have established two areas for improvement or modification. This report outlines those areas and then a recommended solution for billing purposes. United States Post Offices Currently, there is no U.S. Past Office use code in the Sanitation District's sewer service fee ordinance and the District has no way of accurately billing parcels that contain only U.S. Post Offices. U.S. Post Offices are currently placed in the Governmental Use category (118) and the rate is 82 percent of the SFR rate, or$135.96 per 1,000 square feet. Based upon actual water consumption received from the U. S. Post Office on several post offices in our service area, the Governmental Use category may result in overcharges up to 300 percent. At the request of the U. S. Post Office, staff evaluated the current use code for U.S. Post Offices and determined that in order to accurately bill these parcels for their wastewater discharge, a separate use code for U.S. Post Offices should be established. Staff has obtained the flow, chemical oxygen demand (COD), and suspended solids (SS) assumptions used by the County Sanitation Districts of Los Angeles County (CSDLAC) within their sewer service fee program and converted their load measurement of COD to the District's load measurement of bio-chemical oxygen demand (BOD). Based on the proportion of flow, BOD, and SS concentrations for U.S. Post Offices used by CSDLAC to the District's flow, BOD, and SS concentrations for single-family residences (SFR), staff is recommending a new use code, U.S. Post Office (225), which will charge 35 percent of the SFR rate per 1,000 square feet. This rate would have been $58.03 per 1,000 square feet for FY 2006-07 compared to $135.96 per 1,000 square feet for the Governmental Use Code (118). Sewer Service Fee Billing Methods r March 14, 2007 Page 3 of 3 Entertainment Venues-Open Air Facilities Our current ordinance bills entertainment venues such as Knott's Berry Farm, Angel Stadium of Anaheim, Honda Center (formerly the Arrowhead Pond of Anaheim), Los Alamitos Race Course, Anaheim Convention Center and Soak City USA based upon the square footage of improvements that are currently listed by the assessor's office on their secured property tax bill. Disneyland and California Adventure are currently on Industrial Wastewater Discharge Permits that require the District to obtain flow data and perform annual reconciliations. A subset of entertainment venues are open-air facilities. Because open-air facilities such as Angel Stadium of Anaheim and the Los Alamitos Race Course have minimal square footages listed by the assessor's office, the current billing methodology does not accurately charge these venues for the wastewater that they are discharging. Based on a study performed by Carollo Engineers, a more fair and equitable billing methodology would be attendance rate based because of the large number of visitors that attend these venues throughout the year resulting in an abundance of wastewater discharged into the system. Angel Stadium of Anaheim is an excellent example. The assessor's office lists 46,575 square feet and their sewer service fee is only $11,199.87. The square footage captured on the property tax bill does not fully capture the amount of wastewater being discharged because the square footage is only for enclosed facilities. Staff has reviewed the entertainment venues and the information that we have regarding their discharge and sewer service fees. We are recommending that we charge open-air facilities based upon their attendance on an annual basis. The facilities would provide their annual attendance for the prior year and we would bill them 15gpd per attendee and place the fee on their annual secured property tax bill. This billing method provides a more accurate fee for the actual discharge into the system. The open-air facilities would pay a rate per MG based upon the related flow, bod and tss charge for single family residences. MG 2006-07 Est'd 2003 GPD Per per Rate per Attendance Actual Entertainment Center Attendance' Attendee— year MG"* Based Fee 06-07 SSF Angel Stadium of Anaheim 3,250,000 15 48.75 $1,795.43 $87,527.21 $11,119.87 Los Alamitos Race Course 900,000 15 13.6 $1,795.43 $24,238.31 $2,176.29 `Last available attendance documentation "GPD per Attendee according to Entertainment Rate Class Evaluation prepared by Carollo Engineers `•`Rate pr MG based upon SFR unit costs for flow, bod, and tss LT:mw ORDINANCE NO. OCSD-XXX32 e oe 45;FQ Tn CIF R Rr PRQPFRTY i co r1 ncc a GAT nr, S eno • (YlrJlMFRCIQ no INDUSTRIAL , SERS AND RPMSFD TAR e F OE AQMW TRATnvv CCCC nein nunor_oe oo nT 4N� AND REAFFIRMING ALL-OTHER-GHARGE-5 ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES, REVISED TABLE B RE PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS, REVISED TABLE C RE CAPITAL FACILITIES CAPACITY CHARGES, NEW TABLE D RE PLAN CHECK AND INSPECTION FEES REVISED TABLE E RE SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES (FORMERLY TABLE D), REVISED TABLE F RE ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES (FORMERLY TABLE E), REDESIGNATED TABLE G (FORMERLY TABLE F), REVISED TABLE H RE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE (FORMERLY TABLE G), REVISED TABLE I RE WASTEHAULER CHARGES FOR USE (FORMERLY TABLE H).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-301326. WHEREAS, the Board of Directors of the Orange County Sanitation District ("District") has previously adopted Ordinance No. OCSD-W30B, 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 establish 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 wSSS-BRH:p1:201660:0420105 1 OCSQ ADB 4r2 ARTICLE It: SANITARY SEWER SERVICE CHARGES Section 2.01, Purpose and Scope Section 2.02, Annual Sanitary Sewer Service Charge 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 Section 2.07, Open-Air Facilities 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 Table C Capital Facilities Capacity Charges Table D Plan Check and Inspection Fee Schedule Section 3.07, Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users —Special Purpose Dischargers — Defintions 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 CE 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: WSSS-13RH:pj201660:0420/05 2 OCSD,ADB 425/07 Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements Section 3.14, No Refund or Transfer Section 3.15, Baseline Transferability Section 3.16 Annual Updates Section 3.17 Affordable Housing Projects 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€F Administrative Fees and Charges Relating To Permittees Table 9G Industrial Discharger, Source Control and Non-Compliance Sampling Fees Table GH Class I and Class II Permittees and Special Purpose Discharge Permittees Charges For Use Table HI Wastehauler Charges for Use ARTICLE V: MISCELLANEOUS Section 5.01, Application of Ordinance Section 5.02, Exceptions Section 5.03, Severability Section 5.04, Effective Date Section 5.05, Repeal Section 5.06, Certification and Publication ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings — Declaration of Intent. The Board of Directors of District has previously adopted Master Plans, as more particularly described in Findings B, C, D, and E below, setting forth the financial and engineering needs of the District, and hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. WSBS-5RH:pi:201660:04a0105 3 OCSO-ADS4125/O] 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 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 VMS-eRH:pj:201650:04120/05 4 0CSD-ADS425M7 projected increased flows and the rehabilitation and refurbishment of existing facilities. The Board further finds that programming annual adjustments in sewer service charges over a period of years is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. The Board of Directors also finds that such Sanitary Sewer Service Charges and Capital Facilities Capacity Charges are reasonably related to, and do not exceed the cost of providing sewer services. F. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Strategic Plan and the CIP validation studies, are based on current, reliable information and data relating to population projections, wastewater flow, and capital facilities' needs, and are expected to be realized in each year as described in the reports. G. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District; to repay principal and interest on debt instruments; to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves; and to assist in the payment of costs to the District to provide all regulatory administration and laboratory services related to the industrial dischargers, source control permittees, and wastehauler users of the District's systems. H. That the owners or occupants of properties upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. I. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. J. That the Sanitary Sewer Service Charges established and levied by this Ordinance are to allow the District to recover the reasonable costs 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 w&8S-BRH:pf201660:04/20105 5 OCSD-ADB 4a5/0] 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- W30B, established Capital Facilities Capacity Charges, formerly known commonly as "connection charges" or "fees", to be paid by all persons obtaining a permit to connect to the District's system. Said Charges are required as a financial payment to have access to and use of the District's wastewater collection, treatment and disposal facilities in existence at the time of connecting to the system, and for future facilities to be constructed. O. That the Sanitary Sewer Service Charges and Capital Facilities Capacity Charges established here, are an incident but not a condition of development, payable only on request to receive service by the property owner for the benefit of those persons on the property that use the service. The charges are not an incident of property ownership, nor are they a property- related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. P. That the District's previous and present Capital Facilities Capacity Charges Ordinances, include[d] authority for the District to levy an 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 VMS-SRH:pj:201660:04/20/05 6 OCSD-ADB 4/25/0] 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 at 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 ordinance 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 ordinance establishing Wastewater Discharge Regulations provides that the Board of Directors is to establish various fees and charges to recover those costs to the District which are made necessary by industrial dischargers and wastehaulers who violate the District's Wastewater Discharge Regulations. X. That the industrial discharger, source control, and wastehauler fees and charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the District of industrial discharger, source control, or wastehauler use of the District's facilities and for the administration and implementation of permit and fee processing, non-compliance 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. OCSD-26. and OCSD 30B are reaffirmed and readopted hereat, except to the extent that they have been specifically superseded or otherwise amended by specific Findings herein. ARTICLE II SANITARY SEWER SERVICE CHARGES Section 2.01. Purpose and Scope. The purpose of this Ordinance is to establish Sanitary Sewer Service Charges required to be paid by property owners for the services and facilities furnished by the District in connection with WS&S-BRi1q:201650:0420/05 7 OCSO ADB 425/07 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 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. wSBS-8RH:p1:201660:04/20/05 8 OCSD-ADa4/25/07 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 properly is connected to the District's system, to less than the single family residential charge shown on the applicable Table attached hereto. C. Application for Refund. Any property owner may apply to the District for a refund of Sanitary Sewer Service Charges paid to the District by establishing that the amount paid was pursuant to an error in the amount billed or the amount paid. The applicant for a refund must submit proof satisfactory to the General Manager of the District, or his designee, that a billing error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: (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 property use classification code land use sategery; 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. VMS-BRH:pi2016s0:04r20/05 9 DCSD ADB 4/ZU7 A. Pursuant to the authority granted by California Health & Safety Code Section 5473, and except as otherwise provided in Subparagraph 2.05E below, all sanitary sewer service charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and the District. B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner has 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(8) of District Ordinance No. OCSD-01, as amended. Section 2.07 Open-Air Facilities. Sanitary Sewer Service Charges for open-air facilities will be based on annual attendance records. Open-Air facilities will pay a rate per million gallons based upon the related sewage flow. Biochemical Oxygen Demand ("BOD") and Suspended Solids ("SS") charge for single family residences. The usage per attendee will be 15 gallons. TABLE A ANNUAL SEWER SERVICE USER FEES RESIDENTIAL USERS FISCAL YEAR 2003-04 2004-05 2005-06 2006-07 2007-08 SFR" $100.00 $115.00 $151.00 $165.80 $182.00 MFR $ 70.00 $ 80.50 $105.70 $116.06 $127.40 SFR = SINGLE FAMILY RESIDENTIAL WS&S-BRH:pj:2016W:0420105 10 OCSDADB 4/2 MFR = MULTI FAMILY RESIDENTIAL The SFR fee is the minimum sanitary sewer service charge any user must pay. 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 District directly to the Irvine Ranch Water District, the local agency providing the local sewer service. VMS-BRH:pl:201660:04M/05 11 OCSDQA0B42W7 TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 1 Vacant Land Parcel 0% 5 Common Area Parcel 0% 6 "Hold" Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0% 124 Oil/Mineral Rights 0% 125 Mineral Rights Equipment 0% 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption Addl. 0% 666 Unassigned Vacant 0% 777 Septic Tank Property 0% 112 Steel Building 7% 113 Mini-Warehouse 7% 58 Nurseries(Plants) 10% 100 Drive-In Theater 100k 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% 225 United States Post Office 35% 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% TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES WSBS-BRH:p):201050:D4r"5 12 OCSD-AOB 4125W PROPERTY USE CLASSIFICATIONS FOR COMMERCIAL OR INDUSTRIAL USERS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 84 Marine Service Station 41% 86 Combin.-Service Station/Convenience 41% 65 Single Office Bldgs. to 3 Stories 41% 66 Small Office Center 41% 67 Office Complex 41% 69 Converted Residence to Office 41% 7 Mobile Home 50% 55 Mobile Home Park 50% 107 Light Industrial -Single Tenant 50% 108 Light Industrial-Multi Tenant 50% 109 Research and Development 50% 114 Industrial Park 50% 37 Fraternal Buildings 51% 101 Unattached Theater 51% 26 Airport and Related Buildings 53% 45 Marinas 53% 88 Low Flow Shopping Center 53% 3 Two or More Residences 70% 10 Duplex Only 70% 11 Triplex Only 70% 12 04-Units Only 70% 13 5 to 16 Units 70% 14 17 to 25 Units 70% 15 26 to 40 Units Only 70% 16 41-99 Units Only 70% 17 100 or More Units 70% 18 Developed with a Mix of Forms 70% 63 Low Rise Retirement Building 70% 64 High Rise Retirement Building 70% 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-C11, Rural PC 100% 2 One Residence 100% wsas-eRH:PizOieso:o4noros 13 ocsDADS4 M 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. Sew. Stn./Restaurant 1000/0 103 Chemical Tank and Bulk Storage 100% 104 Food Processing Plant 100% 105 Cold Storage Plant 100% 106 Factory 100% 119 Public Utility 100% 120 Water Mutual or Company 100% 888 Conversion-Composite Prop. 100% 32 Cemetery& Related Buildings 101% 38 Funeral Home 101% 60 Nursing Home 102% 61 Convalescent Hospitals 102% 62 Converted Res. Used as Nursing 102% 28 Bowling Alleys 112% 92 Skating Rinks 112% 50 Single Medical Bidgs. 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"/6 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 3000/6 77 Restaurant—Coffee Shop 600% 78 Restaurant—Dinner House 600% 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-BRH#201660:0420105 14 Ocsp-ADB4rz5m7 , I ARTICLE III CAPITAL FACILITIES CAPACITY CHARGES Section 3.01. Puroose and Scope. The purpose of this Ordinance is to impose Capital Facilities Capacity Charges when properties, either newly- connect to the District's system, or expand the use of the property previously connected to the District. Revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, and reconstruction of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal or state loans for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 3.02. Definitions. A. "Actual construction costs" include the cost of all activities necessary or incidental to the construction of a District facility, such as financing, planning, designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. "Capital Facilities Capacity Charge" means a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose Discharge Permit. C. "Connection fee" means a fee equal to the cost necessary to physically connect a property to the District's system, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection and which fee does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities. D. "Non-discriminatory" means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non- public users, and is not in excess of the proportionate share of the cost of the District's facilities of benefit to the person or property being charged, based upon the proportionate share of use of those facilities. E. "Public agency" means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of California, a county, city, district, school district, local or regional public authority, or any other political entity, subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 3.07, 3.08, 3.09, and 3.10 of this Ordinance, is an annual charge payable to the District on a quarterly or annual basis, as determined by WSBS-BRH:p6201660:04/20/05 15 OCSD.4DB4IY5/0] 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. Mu@iple 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, 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 severing 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. 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. WSBS-8RH:pj:2D16B0:M2Q05 16 OCSD4WB 4/2 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 and Plan Check and Inspection Fees: Schedule of Amounts. A. 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. B. Every person or entity connecting any new or expanded building or structure directly to the District's local or regional system facilities shall pay Plan Check and Inspection Fees in the amount set forth on Table D. below. ws&s-Brw:pg201660:042005 17 ocsanos4rzsro� TABLE C CAPITAL FACILITIES CAPACITY CHARGES (CFCC) Use Category Rate Basis Base Charge Commercial — Industrial Per 1,000 square feet' Low Demand' Per 1,000 square feet $ 2108.00' Average Demand' Per 1,000 square feet $1,34-057,001 High Demand Per 1,000 square feet $3,449222.001 Single Family Residential (SFR?- * % of Base Base Charge 5+ Bedrooms (Per Unit) 1.39 $6,069278.00 4 Bedrooms (Per Unit) 1.19 $5,490377.00 3 Bedrooms (Per Unit) 1.00 (Base) $4,369517.00 2 Bedrooms (Per Unit) 0.81 $3,539657.00 1 Bedroom (Per Unit) 0.62 $2,70097.00 Multi-Family Residential (MFRP * % of Base Base Charge 4+ Bedrooms (Per Unit) 1.08 $4,749880.00 3 Bedrooms (Per Unit) 0.89 $34,880020.00 2 Bedrooms (Per Unit) 0.70 $3,959160.00 1 Bedroom (Per Unit) 0.50 $2,489258.00 Studio (Per Unit) 0.32 $1,40050.00 Supplemental CFCC for Permit Users, includes 5% cost of funds. Flow, gallons per day $0.00139244 BOD, pounds per day $0.75473081900 SS, pounds per day $0.0947495022 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be 54,360 54 517;and all calculations shall be on a 1,000 square foot,or portion thereof,basis. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the District,and in the Building Department of each City within the District. 'Low Demand connections are the following categories of Users: Nurseries;Warehouses; Churches; Truck Terminals: RV Parks: the restroom. offices and areas related to the offices for Parking Structures., RV Storage Yards, Lumber/Construction Yards Public Storage Buildings; 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 one or more Restaurants, or Food Court; Food Processing Facilities;Tedile Manufacturers; and other dischargers whose flow is similar in volume to these listed aetegones. WSSS-BRH:pi:20158g:a20105 18 OCSD.4DB 425g7 "All other omnecdons are Avv a demand usem. °Bednooms include loft,offim bonus room or other additions.which mind potentially be used as a bedroom. Bedroom additions are considered a chanae of use and a CFCC must be paid. 6MFR units consist of multiple units that remive one secured property tax bill such as apartments 'SFR -The rates for each size of SFR and MFR are established with a 3-bedroom SFR having a base of 1.0,and all others are a relative percentage higher or lower than 1.0,depending on size of unit, as noted. WS&S-BRH:pP201860:0020M5 19 OCSD.ADB4r2 TABLE D PLAN CHECK AND INSPECTION FEE TABLE INSPECTION FEES FOR SINGLE CONNECTIONS FEE Normal lateral installation to oroperty line with dean out $500.00 Lateral Installation to existing manhole stub with clean out $500.00 Core drilling in to an existing manhole base- add $300.00 Installation of new manhole with stub over existing line $1,000.00 INSPECTION FEES FOR MULTIPLE CONNECTIONS Plan check and inspection fees of 20 percent of the sewer construction cost for new tract sewers, sewer extensions or special facilities are required when plans are submitted for plan check. If additional funds are needed, they must be deposited as soon as they are requested to complete the inspection on the proiect. If funds are required after the work is completed, they must be paid before OCSD finals the sewer project. 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 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 Regulations. 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 wsaS-BRH:gz016M:wrmro5 20 ocso-npe4MA defined in Subparagraphs 3.07A and B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU or SPD. E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table C, above, is 25,000 gallons per day ("gpd"), or 150 pounds each of BOD and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subsection 3.07E shall be subject to the provisions of Sections 3.08 and 3.09 hereof. F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the District as of January 1, 2000. The baseline shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge data which the District determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU's solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section 3.07A above, shall have a minimum baseline established as follows: Flow — 25,000 gallons per day; BOD — 150 pounds per day; and SS — 150 pounds per day. The SCIU shall be authorized to discharge flow, and BOO, 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—, 159 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 DE. Section 3.09. Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers. All New SPDs shall pay a Supplemental WS&S-8111-1:p]:201860:0420/05 21 OCSDADB 425/07 Capital Facilities Capacity Charge of $0903344.001392 per gallon per day for each gallon of flow exceeding 25,000 gallons per day. Upon issue of permission to discharge, SPD with discharges above 25,000 gpd shall pay a nonrefundable Supplemental Capital Facilities Capacity Charge, prior to discharge, for one million gallons above 25,000 gpd. The deposit will be credited by the District against future Supplemental Capital Facilities Capacity Charges. Section 3.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial - Industrial Users and Special Purpose Dischargers. A. All Existing Significant Commercial - Industrial Users connected to and discharging to the District's system shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd"), or 25% per day over its established baseline authorization, whichever is lesser; or (ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section 3.10A above. TABLE DE SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge Flow Gallons Per Day $0.00134492 BOD Pounds Per Day $0.75473081900 SS Pounds Per Day $0.094-7205022 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 $ 0.001344392 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 yaws-SRH:pg201BB0:oCRo/05 22 DCSD-ADB U25/07 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 or number of bedrooms, 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. 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 once the connection has been made. If the connection is not made and the request for connection is urithdrawn within 12 months of the payment date, the charges paid will be refunded upon establishing proof from the City or County of a canceled permit. 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. Section 3.16 Capital Facilities Capacity Charge Annual Updates. The Capital Facilities Capacity Charge is based upon the most recently completed Capital Strategic Plan Update. This charge is updated annually based upon the increase in the Engineering News-Record construction cost index for Los Angeles as of December of the prior year until the completion of the next Strategic Plan Update. WSBS-BRH:pI:2N660:0420/05 23 OCSDAD5425/0] Section 3.17 Affordable Housing Projects. Per Resolution 06-18, development oroiects that include lower income housing units shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for, unless the District makes specific written findings that the denial, condition, or reduction is necessary due to the existence of one or more of the following: (a) insufficient water supply or insufficient water treatment or distribution capacity: (b) a State Department of Health Services order prohibiting new water connections; (c) insufficient sewer treatment or collection capacity: (d) a Regional Water Quality Control Board order prohibiting new sewer connections: (a) the applicant has failed to agree to reasonable terms and conditions 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 terns 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€F, 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 noncompliance, in the sum or sums as set forth in Table€G, 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, charges for use are hereby established for Special Purpose Discharge Permittees, as set forth in Table GH, 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 wsas-BRrcgzoi66o:oarzaos 24 Ocsoaos 412SM7 Wastewater Discharge Regulations, the charges for use are hereby established for Class I and Class II Permittees as set forth in Table GH, below. Section 4.06. Wastehauler Charges for Use. As authorized by Sections 306.3 and 306.7 of the District's Wastewater Discharge Regulations , the charges for use are hereby established for wastehaulers as set forth in Table MI, below. 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. TABLE €F ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES Permit Fees Changes 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 GH 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 Char es L. District's Collection of Tax Data $100.00/permit wS&S-BRH:p1:201660:0420105 255 OCSD-AOB 425107 M. District's Collection of Water Consumption Data $100.00/permit N. Appeal Hearing Filing Fee $400/appeal WSSS-BRH:p1:201660:04/20/05 26 OCSDADB 425/07 i TABLE GF 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 WSBS—8RH:p1:201560:De/20/05 27 OCSDADB4/25107 TABLE 1=G (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 NB&S-BRH:pj201660:0420N5 28 OCSD.AD842SV7 TABLE GH CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Flow(') $316.38 $577.30 $637.55 $700.03 7$ 68.63 B.O.D. (") $216.13 $270.68 $288.50 $316.77 $347.81 S.S. ("') $207.35 $414.27 $432.14 $474.49 $520.99 Special Purpose Discharge Permit FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 Flow(') $316.38 $577.30 $637.55 $700.03 7$ 68.63 8.9.^ter $216.13 $2�n c.P.,s $2aa.sn $316.'; S.S:r'i—$2()7.35 $414.27 $43244 $47-4.49 (') Flow Per million gallons of Flow B.O.D. Per thousand pounds of Biochemical Oxygen Demand S.S. Per thousand pounds of Suspended Solids All properties located within Revenue Area No. 14 pay no annual service fees. District costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. WS&S-BRH:pj:201660:0420105 29 OCSO AD8425I07 TABLE IN WASTEHAULER CHARGES FOR USE Wastehauler Fees Charges Charge for Use —Waste originating $0.05/gallon of truck capacity -within Orange County; -within service area: and -within District Boundaries Charge for Use—Waste originating $0.12/gallon of truck capacity outs de Orange CewFity -within Orange County: -within service area; and outside District Boundaries Charge for Use— Waste originating $0.12/gallon of truck capacity -Outside Orange County; and within service area 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 any area the District has an agreement to serve. ARTICLE V MISCELLANEOUS Section 5.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the Districts Wastewater Discharge Regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto; District's ordinance 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. Section 5.03 Out of Area Sewer Service Agreements. The District is empowered to contract for the transport, treatment and disposal of wastewaters originating within areas outside of the District if it is in the best interest of the District to do so. These Out of Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement. VMS-BRH:pj201600:0420N5 80 OCSD-ADB 425I0] 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, 20067. Section IV. Repeal. Ordinance No. OCSD-2630B 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. wsss-Bnn:pi:z0iseo0armos 31 OCSDADB 42S07 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: SECRETARY, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT BRADLEY R. HOGIN, GENERAL COUNSEL WS&S-BRH:PI:201660:04/20/O5 32 ocso-AOBane/Or ADMINISTRATION COMMITTEE Meeting Dae TO Btl.of qr. oa/11/o� oa/zs/m AGENDA REPORT ern Nub Irem07-28 lumber Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services i SUBJECT: FEES FOR PROPERTIES ANNEXING TO THE DISTRICT GENERAL MANAGER'S RECOMMENDATION Ordinance No. OCSD-33, Adopting Fees, Revised Procedures and Policies Concerning Annexation of Properties to the District and Repealing Ordinance No. OCSD-29: a. Motion to read Ordinance No. OCSD-33 by title only and waive reading of said entire ordinance. b. Motion to introduce Ordinance No. OCSD-33, and pass to second reading and public hearing on May 23, 2007. SUMMARY • The current Ordinance governing annexations was adopted in 2004 and needs to be updated to include procedures for deferring annexation fees for large annexations until the time of a sewer connection to a public sewer. • A new Ordinance has been prepared that now includes a section regarding deferring payment of annexation fees. PRIOR COMMITTEE/BOARD ACTIONS The last Board action related to annexation fees was January 2004. ADDITIONAL INFORMATION The changes to the Ordinance are being requested to codify a procedure for the Orange County Sanitation District Board and staff where annexations may precede actual sewer connections. This procedure will require an action by the Board to defer annexation fee collection until a sewer connection is made for the property. There are still a few unincorporated areas within the County of Orange, also not within the Sanitation District. These areas are all on septic tanks which are subject to failures; recently leading to numerous residents requesting connections to public sewers. The annexation process can cost over $8,000 and require 6 to 18 months to complete. Staff Form No.o io2,3 aem..a.owrmi Page 1 has been working with residents in these areas to minimize their costs and time associated with the conversion to a public sewer. The ability to process larger annexations prior to septic tank failures offers two benefits. The first benefit is a distribution of fixed administrative costs over a larger number of residents. This is estimated to save each resident about $4,000. The second benefit is that pre-annexation can allow immediate connection to public sewers at any time the property owner chooses. The difficulty in proceeding with large annexations has been the immediate cost to property owners for administrative annexation fees. This is especially true for residents not planning to connect to a public sewer, or who are too far from a public sewer to feasibly conned at this time. To date, the ability to delay these costs has reduced opposition in the areas annexing. This is because it balances the needs for residents in these areas wishing to immediately conned to a public sewer and residents that do not have an immediate need to replace their septic tanks. JDR:LT:mw Form No.M-102 3 g .W,OMIM7 Page 2 M1 ORDINANCE NO. OCSD-29 XX33 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-2903 WHEREAS, the Board of Directors of the Orange County Sanitation District("District") has previously adopted Ordinance No. OCSD-2429;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 adopted by OCSD Resolution No. 99-21 of the Board of Directors on October 27, 1999; 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 specific 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 21080(b)(8), and 14 California Code of Regulations Section 15273(a). NOW, THEREFORE, the Board of Directors of Orange County Sanitation 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. 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 subject 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. If the use of any portion of territory previously exempted from payment of the fees hereunder is changed to a non-exempt use, the then-owner of that portion of the territory shall pay 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. Not withstanding the foregoing, upon application of any property owner seeking Permission to connect to the District's system, the District Board of Directors may defer payment of the applicable annexation fees until such time as the applicant actually connects to the District's system. 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 -249 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 20067. Chair, Board of Directors Orange County Sanitation District ATTEST: Sesretary,Clerk of the-Board 9 Diresters Orange County Sanitation District BRADLEY R. HOGIN GENERAL COUNSEL 9 v Orange County Sanitation District Financing Corporation MINUTES March 28, 2007 v�JNSv S AN f Tgr�oy 9 � n o � �w Fcr�N HE ADMINISTRATIVE OFFICES 10844 ELLIS AVENUE FOUNTAIN VALLEY, CALIFORNIA 92708-7018 OCSD Finance Corporation 03/28/07 ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District Financing Corporation was called to order on March 28, 2007, at 7:50 p.m., in the District's Administrative Offices. The roll was called, and the Clerk of the Board reported a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X James M. Ferryman, Chair Bob Ooten X Doug Davert, Vice Chair Jim Palmer X Steve Anderson Tom Beamish X Charles Antos Gordon Shanks X Don Bankhead Sharon Quirk X Jon Dumitru Carolyn Caveoche X Steven Choi Sukhee Kang X Larry Crandall Gus Ayer X Bill Dalton Mark Rosen Richard Freschi X Brad Reese X Cathy Green Don Hansen X Phil Luebben Prakash Narain X Patsy Marshall Jim Dow X Darryl Miller Douglas Reinhart X Roy Moore Ron Garcia X Joy Neugebauer At Krippner X Chris Norby Janet Nguyen X Ken Parker Catherine Driscoll X David Shawver David Cadena X Harry Sidhu Lucille Kring X Sal Tinajero David Benavides X Constance Underhill Joseph Aguirre X Mark Waldman Ralph Rodriguez X Don Webb Leslie Daigle X Jim Winder John Anderson STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Penny Kyle, Clerk of the Board; Nick Arhontes; Bob Ghirelli; Jim Herberg; Ed Torres; Lorenzo Tyner; Lilia Kovac; Bob Chenowith; Paula Zeller; OCSD Finance Corporation 03/28/07 OTHERS PRESENT: Brad Hogin, General Counsel; Bob Ooten; Ron Garcia b. MOVED, SECONDED AND DULY CARRIED: The Chair ordered the minutes of the regular meeting held February 22, 2006 be deemed approved as written. Directors Choi, Dumitru, Green, Marshall, and Underhill abstained. C. Lorenzo Tyner, Director of Finance, reported that the Financing Corporation Board is required to meet annually and reported that the corporation activities were similar and consistent with those of the previous year except that additional debt will not be issued until 2007/08. ADJOURNMENT: The Chair declared the meeting of the Orange County Sanitation District Financing Corporation adjourned at 7:52 p.m. Clerk of the and Orange CouYity Sanitati n District Financing Corporation